Given Montana’s quota system for on-premise alcohol licenses, which we’ve talked a lot about recently, there are many restaurants which do not serve alcohol. Over the years, it became relatively common for many of these places to allow patrons to bring in their own alcohol such as a six pack of beer or a bottle of wine. Some would charge a corking fee, while others were happy to provide glasses and an opener free of charge. Some still allow this practice and you might imagine it doesn’t sit well with those who have purchased a license.
A few years back, the legislature created a new category of license commonly known as a “cabaret” license to relieve some of this pressure, but not permit too much competition. These licenses allow alcohol to be served only when accompanied by a food order and only between the hours of 11 am and 11 pm. Only table service is permitted and the restaurant cannot have a bar.
Given the limited number of these licenses, you still find various restaurants allowing patrons to BYOB. One legislator is working on a bill to make it clear that’s not okay.
Currently in the drafting process, a bill identified as LC0691 would make several changes to Montana’s alcohol enforcement provisions. The most notable is an addition to the “prohibited practices” language for restaurant beer and wine licenses (“cabaret” licenses):
(2) (a) A restaurant that is not licensed for the sale of beer and wine pursuant to 16-4-420 may not allow any person to consume beer or wine or any other alcoholic beverage on the premises.
That would pretty clearly prohibit the practice of allowing patrons to bring in a bottle or two of their favorite adult beverage to a restaurant with no on-premise license.
In reality, the practice is already prohibited under Montana law as interpreted by the Department of Revenue. Montana law prohibits “bottle clubs” which it defines as:
16-6-306. Bottle clubs prohibited. The operation of alcoholic beverage bottle clubs is hereby prohibited by any person, persons, partnership, firm, corporation, or association. A bottle club is defined as any person, persons, partnership, firm, corporation, or association maintaining premises not licensed for the sale of alcoholic beverages, for a fee or other consideration, including the sale of food, mixes, ice, or any other fluids for alcoholic beverages, or otherwise furnishing premises for such purposes and from which they would derive revenue.
That’s not exactly an easy definition to read, but it’s par for the course for the legislature and has been interpreted as prohibiting restaurants from allowing BYOB.
Thus, if this bill gets introduced, look for it to be characterized as a “clarification” bill, a term legislators often use to suggest they aren’t changing the law, but are merely clearing up an ambiguity or question of interpretation.
[UPDATE: This bill was introduced on 2-7-13 and is now known as House Bill 405]
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