BEFORE THE Department of REVENUE

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rules I and II, the amendment of ARM 42.11.301 and 42.11.305, and the repeal of ARM 42.11.306, 42.11.307, 42.11.309, and 42.11.310 pertaining to agency liquor stores

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NOTICE OF ADOPTION, AMENDMENT, AND REPEAL

 

TO: All Concerned Persons

 

1. On October 15, 2015, the Department of Revenue published MAR Notice No. 42-2-944 pertaining to the public hearing on the proposed adoption, amendment, and repeal of the above-stated rules at page 1735 of the 2015 Montana Administrative Register, Issue Number 19.

 

2. On November 9, 2015, a public hearing was held to consider the proposed adoption, amendment, and repeal. Christina Riffle, Liquor Store Owners Association of Montana, and John Iverson, Montana Tavern Association, appeared and testified at the hearing. Other members of the public attended the hearing, but did not testify. No written comments were received.

 

3. The department adopts New Rule II (42.11.311) as proposed.

 

4. The department amends ARM 42.11.305, effective December 11, 2015, except for (11), (12), (15), and (16), which will be effective February 1, 2016, when the legislative changes to 16-2-101, MCA, become effective.

 

5. The department amends ARM 42.11.301 and repeals ARM 42.11.306, 42.11.307, 42.11.309, and 42.11.310 effective February 1, 2016, when the legislative changes to 16-2-101, MCA, become effective.

 

6.  Based upon the comments received, the department adopts New Rule I (42.11.312) as proposed, but with the following changes from the original proposal, new matter underlined, deleted matter interlined.  New Rule I will be effective January 1, 2016, when the legislative changes to 16-4-311, MCA, become effective.

 

NEW RULE I (42.11.312)  DIRECT PRODUCT DELIVERIES FROM A DISTILLERY  (1) through (3) remain as proposed.

(4) Within three business days of receiving inventory that is deficient or defective, the The agency liquor store shall notify the distillery of any deficient or defective product received. If adjustment of the invoice issued by the department is necessary, the agency liquor store shall notify the department within 30 days of product receipt six months of the invoice date.

 

7. The department has thoroughly considered the comments received. A summary of the comments and the department's responses are as follows:

 

COMMENT 1: Christina Riffle, of the Liquor Store Owners Association of Montana, requested amendment of the time frames in proposed New Rule I(4). When a distillery delivers a product directly, the rule proposes a three-day deadline for an agency liquor store to notify the distillery of any deficient or defective product received. It also proposes a 30-day deadline for an agency liquor store to request an invoice adjustment from the department for distillery deliveries. Ms. Riffle requests that both time frames be set to six months, consistent with the time frame to report issues on product received from the department.

 

RESPONSE 1: Ms. Riffle is correct that there is a six-month deadline for an agency liquor store to request an invoice adjustment for product received from the department. The department has amended New Rule I to set the same six-month reporting deadline for product received from a distillery. The department has also amended the rule to remove the three-day distillery notification deadline, in favor of allowing the parties to set their own notice protocols.

 

COMMENT 2: John Iverson, of the Montana Tavern Association, expressed appreciation for being allowed to participate in the negotiated rulemaking process.

 

RESPONSE 2: The department thanks Mr. Iverson and the other committee members for their participation in the process.

 

 

 

/s/ Laurie Logan                                    /s/ Mike Kadas

Laurie Logan                                         Mike Kadas

Rule Reviewer                                       Director of Revenue

 

         

Certified to the Secretary of State November 30, 2015