(1) All licensees, their agents, and employees must conduct the licensed premises in compliance with the rules of other state and local agencies and abide by all:

(a) provisions of the laws of Montana and the United States related to alcoholic beverages;

(b) county and city or town ordinances related to alcoholic beverages;

(c) Indian liquor laws applicable within the areas of Indian country, as defined by 18 USC 1151, provided a tribe having jurisdiction over such area of Indian country adopted an ordinance, certified by the Secretary of the Interior, and published in the Federal Register; and

(d) rules of the department relating to alcoholic beverages.

(2) Proof of violation by a licensee or the licensee's agent or employee of any of the provisions of the above laws, ordinances, or rules is sufficient grounds for revocation or suspension of the license, and licensees may be reprimanded or assessed a civil penalty in accordance with 16-4-406, MCA.

(3) The department will impose progressive penalties for multiple violations of any laws, ordinances, and rules within any three-year period unless mitigating circumstances indicate the penalty should be reduced, or aggravating circumstances indicate the penalty should be increased. Violations and progressive penalties include, but are not limited to, those listed on the following chart. Any combination of four of the violations listed below occurring within a three-year period could result in a license revocation action.

 

Violation	1st Offense	2nd Offense	3rd Offense	4th Offense
Sale to an Underage Person	$250	$1000	$1500/20-day Suspension	Revocation
Sale to an Intoxicated Person	$250	$1000	$1500/20-day Suspension	Revocation
Open after Hours	$150	$600	$1000/12-day Suspension	Revocation
Sale after Hours	$150	$600	$1000/12-day Suspension	Revocation
Re-pouring	$250	$1000	$1500/20-day Suspension	Revocation
No Approval to Alter	$300	$600	$1000/12-day Suspension	Revocation
No Management Agreement	$150	$600	$1000/12-day Suspension	Revocation
Improper use of Catering Endorsement	$150	$600	$1000/12-day Suspension	Revocation
Accept more than 7 Days credit	$250	$1000	$1500/20-day Suspension	Revocation
Extend more than 7 Days Credit	$250	$1000	$1500/20-day Suspension	Revocation

 

Violation of Responsible Alcohol Sales and Service Act		Monetary penalties for these violations are stated in (7). Revocation for fourth violation.
Undisclosed Ownership Interest		Monetary Penalty, Suspension, or Revocation
Denial of Right to Inspect		Monetary Penalty, Suspension, or Revocation
Unapproved Nonuse		Lapse

 

(4) When a license has been revoked, the department will not accept an application from any of the previous licensees for one year from the date of revocation. After the one-year moratorium, an application will only be accepted if the applicant demonstrates to the department's satisfaction that sufficient steps were taken to prevent future violations.

(5) A revoked license will affect a license quota area and the following may result:

(a) if it causes the area to be under quota, a notice of availability of a license will be published in the newspaper of general circulation in the quota area and invite applications for the available license; or

(b) if the area is over quota, the revoked license will cease to be available for issuance.

(6) A revoked beer or beer and wine license issued within a city quota area before October 1997, if reinstated, will not allow any gaming or gambling activity on the licensed premises.

(7) An employee's failure to possess a valid alcohol server training certificate constitutes a violation, the penalty for which is assessed against the licensee. Multiple untrained employees on a particular date may constitute a single violation; continued noncompliance may constitute an additional violation. Regardless of other violations within the three-year period, the civil penalties assessed for a violation of the Responsible Alcohol Sales and Service Act shall be $50 for the first offense, $200 for the second offense, and $350 for the third offense. A licensee shall receive a reprimand for the licensee's violation of the Responsible Alcohol Sales and Service Act only upon demonstration that:

(a) it is the licensee's first offense of the Responsible Alcohol Sales and Service Act under that license;

(b) all immediate supervisors of employees who sell or serve alcoholic beverages are trained; and

(c) the licensee's business practices substantially comply with the server training requirements such that the violation resulted from an oversight or mistake.

(8) A licensee shall receive a reprimand for the violation of selling to an underage person only if:

(a) it is the licensee's first offense of any kind under that license in the past three years;

(b) the person who made the sale possesses a valid alcohol server training certificate; and

(c) the licensee has not previously received a reprimand for sale to an underage person under that license.

(9) In the event a reprimand is issued:

(a) the incident shall not be considered to be a first offense for purposes of the progressive penalty schedule in (3) unless the licensee commits the same offense within one year; and

(b) the department may still assess the monetary penalty associated with the offense.

(10) Aggravating circumstances may result in the imposition of maximum monetary penalties, maximum suspension time or revocation, and will not bind the department to the progressive penalty framework indicated in (3).

(11) Aggravating circumstances include, but are not limited to:

(a) no effort on the part of a licensee to prevent a violation from occurring;

(b) a licensee's failure to report a violation at the time of renewal;

(c) a licensee's ignoring warnings issued by a regulating authority about compliance problems;

(d) recurring sales to underage or intoxicated persons;

(e) a licensee's failure to timely respond to requests during the investigation of a violation; and

(f) a violation's significant negative effect on the health and welfare of the community in which the licensee operates.

(12) Nothing in this rule prevents the department from revoking, suspending, or refusing the renewal of a license if revocation, suspension, or refusing renewal is expressly allowed in law or rule with reference to a prohibited act.