The All-Alcoholic Beverages License
License Overview
An all-alcoholic beverages license allows the licensee to sell liquor, beer, and table wine at retail for on- and off-premises consumption between 8 a.m. and 2 a.m.
A person may have an ownership interest in up to seven (non-resort) all-alcoholic beverages licenses.
Catering endorsement
An all-alcoholic beverages licensee may request a catering endorsement that allows the licensee to provide and serve liquor, beer, and wine at catered events within 100 miles of the licensed premises. See ARM 42.12.128 for specific requirements.
How to Get a License
The Department of Revenue (DOR) Cannabis and Alcohol Regulation Division (CARD) issues a limited number (quota) of all-alcoholic beverages licenses, determined by the population of the city or town where the license operates (quota area). To see available all-alcoholic beverages licenses, contact a CARD Licensing Specialist or view the quota sheet (PDF).
Licenses are available in one of three ways:
- First-come, first-served purchase from the Department “off the shelf.”
- Competitive bid.
- Purchase from an existing licensee.
All competitive bid opportunities and the ability to submit a bid are now located on the TransAction Portal (TAP). You may sign up to receive notifications of future competitive bids or keep an eye on updates on our competitive bid page.
If there are no licenses available, you may be able to purchase an existing license. Contact a local real estate agent, or view the current List of Available Licenses.
Fees
The following fees apply for a brand-new license:
- One-time all-alcoholic beverages license processing fee: $400.
- Annual catering endorsement fee (if applicable): $250.
- Fingerprint card fee for each individual with 15% or more ownership interest in the business: $30 each. Price subject to change.
| Population of incorporated city/town | Annual fee |
|---|---|
| Less than 2,000 | $400 |
| Between 2,000 and 5,000 | $500 |
| Between 5,000 and 10,000 | $650 |
| 10,000 or more | $800 |
Application Requirements
When applying for an all-alcoholic beverages license, provide the following general information:
- A completed alcoholic beverage/gambling operator combined license application. You have the option to apply with a premises (if your premises will be ready to operate within 3 months) or without a premises (if your premises will not be ready to operate within 3 months). Applications without a premises must be submitted online.
- Temporary Operating Authority - Form TOA (PDF) for alcohol, requesting to operate before approval (for a maximum of 180 days). Online applications only, and some restrictions apply.
- A completed CARD Authorization to Disclose Tax Information Form (PDF) for each individual with ownership over 15% and the applying entity for the purchaser of the license.
Provide a floor plan that includes but is not limited to the following: the business name, physical address, license number (if known), areas where alcoholic beverages are intended to be served, alcohol storage area(s), drive-through window (if applicable), kitchen area, number of seats, drink preparation area, external dimensions, entryways, and any patio or deck area(s)
Do not send in the original blueprints or architect drawings, and only submit an 8½″ x 11″ size copy of the floor plan. See the Floor Plan webpage for more details.
When applying for an all-alcoholic beverages license, provide the following financial information showing the “intent to purchase” the alcoholic beverage license (if buying an existing license), inventory, and building, if applicable.
Note: Do not exchange funds for the alcohol beverage license (if applicable) beyond earnest money of 5 percent of the license price without prior CARD TA or license approval.
- Copies of any loan agreements, contracts, notes, and all related security agreements, guarantees, and trust indentures.
- If funds come from somewhere other than a loan, the last 6 months of bank statements from the bank account you are using to pay for the alcoholic beverage license, building, and/or start-up operating funds for the business.
- Copies of lease, rent, purchase options, financing agreements, or other evidence showing possessory interest in the building.
- Financial statements, such as a balance sheet, income statement, or tax return for the business. If it is a new business, projected balance sheet and income statements are acceptable.
- Copy of business’s bank signature card.
- Purchase/transfer documents for the alcoholic beverage license, such as a buy/sell agreement, contract for deed, warranty deed, and bill of sale, if applicable.
Other sources of funding
File the Non-Institutional Loan (NIL) Form (PDF) with the application if any lenders or other sources of financing are not state or federally-regulated financial institutions, including gifting statements.
Each NIL also requires a Personal Criminal History Statement Form, plus two fingerprint cards and fees.
When applying for an all-alcoholic beverages license, provide the following ownership information (based on the entity type applying), including:
- Copy of partnership agreement documentation.
- Copy of articles of incorporation and amendments or addenda.
- Copy of bylaws and amendments or addenda.
- Copy of certificate of fact (for LLCs and LLPs).
- LLC organizational information.
- Copy of stock certificates, corporate minutes, and attachments.
- Stock ledger or register.
- Copy of certificate of existence (for in-state corporations).
- Copy of authority to conduct business in Montana (for out-of-state corporations).
- Copy of documentation from the Secretary of State verifying approved assumed business name (ABN).
- Copy of federal employer identification number (FEIN) verification from IRS.
- Completed Personal Criminal History Statement Form for each individual with 15% or more ownership interest in the business, plus two fingerprint cards and fees for each of those individuals.
When applying for an RBW license, provide the following management information, including:
- Location Manager Form (PDF) (if someone other than an owner over 15% is managing the business).
- Personal Criminal History Statement Forms for each location manager.
- Two fingerprint cards and fees for each location manager.
Application Process
The application process takes an average of 90 days and begins when a complete application package with all supporting documents is received.
- The application is reviewed by CARD.
- The applicant will receive a letter requesting any additional documents, if needed.
- When all required documents are received, CARD publishes a legal notice in a newspaper circulated in the city, town, or county where the license would be issued. The notice informs readers of the applicant’s intent to acquire a license and where they may send any objections to the license issuance. The filing of an objection is referred to as a protest. See 16-4-207, MCA.
- CARD notifies local agencies with jurisdiction over the premises area of the application in process.
- Before final approval of any new location, the applicant(s) contacts local building, health, and fire code officials to schedule inspections.
- After the protest period deadline, the completion of the audit and investigation, CARD conducts a final review of the application. If necessary, any additional or closing documents may be requested.
- Final approval is granted when the licensing specialist receives all finalized documents and inspections, and any outstanding issues or violations (if any) have been resolved.
If one or more public protests are received, the DOR Office of Dispute Resolution (ODR) schedules a hearing with the applicant(s) and the person(s) who filed the protest(s). The application process is paused until the hearing examiner makes a ruling on the application.
Once the ODR hearing examiner makes a ruling, either party (the applicant or protestor) may have the opportunity to appeal this ruling. For further information, contact CARD.
It is the responsibility of the applicant to contact local building, health, and fire code officials to schedule inspections. CARD may not approve an application until local officials have given notice that the licensed premises meet their requirements, and until a background check of the applicant(s) and a premises inspection have been completed for CARD to determine if the applicant(s) and location meet suitability requirements.
Compliance Rules
All licensees, their agents, and employees must conduct the licensed premises in compliance with all:
- Alcohol-related provisions of the laws of Montana (Montana Code Annotated [MCA] Title 16 and the United States Code of Federal Regulations [CFR]).
- County and city or town ordinances.
- Indian alcohol beverage laws applicable within the areas of Indian Country.
- Administrative Rules of Montana (ARM) Title 42 for the Department.
All licensees must keep up on any changes to Title 16 MCA and the ARM.
Note: These may change from time to time. Contact CARD if there are any questions.
Licensee Permissions
An all-alcoholic beverages licensee may:
- Allow customers to consume alcoholic beverages in an outdoor “smoking hut” if the area is part of the approved premises on file with the department. This may not be another building, and all businesses must comply with the Clean Indoor Air Act (PDF), any Department of Public Health requirements, and other local ordinances regarding smoking and open alcohol containers.
- Be closed for up to 90 consecutive days without department approval. However, you must fill out a Nonuse Form (PDF) and be approved by CARD to be closed longer than 90 days. See the Nonuse page for more information. Also, you may not enjoy any benefits of the license — including, but not limited to, ordering product or catering — when on nonuse status.
- Sell non-alcoholic (NA) type products if they are not over .5% abv.
- Sell prepared servings for off-premises consumption between the hours of 8 a.m. and 2 a.m. Learn more about Prepared Servings — Cocktail, Beer, and Wine To Go.
- Sell alcoholic beverages in original packaging and prepared servings for off-premises consumption at an approved curbside area or a drive-through window between the hours of 8 a.m. and 2 a.m.
-
Allowing bar tabs is the choice of the licensee.
An RBW licensee may serve alcoholic beverages on an approved patio, deck, or lawn if:
- The outdoor area(s) are designated on the floor plan that has been approved by the department.
- It is immediately accessible from the interior of the premises.
- Building, health, and fire approval has been obtained.
- It has an approved perimeter barrier.
What counts as a perimeter barrier
A perimeter barrier is a barricade enclosing the perimeter of the patio/deck. The barrier must be constructed in a manner that impedes foot traffic and clearly defines the boundary of the exterior portion of the premises. The barrier must be a solid structure that is at least three feet high and have a single six-foot entrance permitting public access from an unlicensed area to the patio/deck. The barrier may be constructed of materials such as lattice or wrought iron that do not form a solid structure, have a portion of it be water, and/or have additional entrances permitting public access to the patio/deck. If there are questions relating to this, contact CARD.
Prohibited Activities
An all-alcoholic beverages licensee may not:
- Lock premises doors while there are still customers inside, unless the licensee has been approved for an Access Control System (ACS) using the Access Control System Form (PDF). The licensee must notify CARD and local law enforcement before implementing an ACS. Only licensees holding a gaming license are eligible to use an ACS. See 16-6-103, MCA.
- Allow anyone (including owners, employees, and customers) to consume or sell any alcoholic beverages on the licensed premises between 2 a.m. and 8 a.m.
- Allow customers to bring their own alcoholic beverages onto the licensed premises. Exception: You may allow a customer to bring their own wine onto the premises with your permission. See the Bottle Club page for more information.
- Allow customers on the licensed premises between the hours of 2 a.m. and 8 a.m. If the establishment operates in conjunction with a hotel, restaurant, bus depot, railway terminal, grocery store, pharmacy, or other lawful business that does not sell alcoholic beverages, the other business may remain open.
- Allow any alcoholic products you did not purchase from a beer wholesaler, table wine distributor, brewery, winery, or agency liquor store on the licensed premises. Exceptions: See the bottle club exception above. You may also purchase beer and wine in original packaging from another licensed retailer, up to 6 gallons per day.
- Move product between locations if you own more than one license. Exception: You may purchase beer and wine in original packaging from another licensed retailer, up to 6 gallons per day. Keep your purchase receipts on file.
- Sell or serve alcoholic beverages through vending machines or third-party deliveries.
- Own any interest in a manufacturer license, agency liquor store, or wholesaler/distributor license. Exception: Unless you have been approved to operate a co-located manufacturer license. Call CARD if you have questions.
- Manage a wholesaler/distributor license, agency liquor store, or manufacturer license. Exception: Unless you have been approved to operate a co-located manufacturer license. Call CARD for more information. See the Managing Other Licenses Guide for additional details.
Competitive Bid License Restrictions
An all-alcoholic beverages license issued through competitive bid may not:
- Offer gambling under Title 23, chapter 5, part 3, 5, or 6.
- Stop using the license within the first five years.
- Transfer the license within the first year after receiving the license unless the transfer is due to the death of an owner.
- Propose a location for the license within the first year of operation that had the same license type within the previous 12 months.
Use requirement
An all-alcoholic beverages license issued through competitive bid must be used within one year of being notified as the successful bidder, or the bid amount and license are subject to forfeiture.
Licensee Requirements
An all-alcoholic beverages licensee must:
- Give law enforcement access to their licensed premises at all times.
- Pay for liquor and table wine purchased from an agency liquor store within 7 days.
- Pay for beer purchased from a brewery and beer wholesaler within 7 days.
- Pay for table wine purchased from a winery and table wine distributor within 7 days.
- Ensure all employees serving open-container alcoholic beverages are 18 years or older.
- Notify CARD within 30 days of hire when there is a change in location manager for your alcoholic beverage business. See the Location Manager Guide.
- Notify CARD regarding most changes to the existing license BEFORE the change occurs. Contact your CARD Licensing Specialist with questions.
All employees who serve or sell alcoholic beverages, and their immediate supervisors, must have completed and passed the state-approved Responsible Alcohol Sales and Service (RASS) training within 60 days of hire, and must complete RASS renewal training every three years.
Use the training verification tool to find out if someone is server-trained. You must know their name and birthdate. You may find a list of approved training providers at AlcoholServerTraining.mt.gov.
Concession Agreements
With certain license types, you may decide to let someone operate a restaurant out of a portion of your building and sell alcoholic beverages in the restaurant. This type of arrangement is called a concession agreement, which is a mutually beneficial agreement between a retail licensee and a non-licensed entity.
Submit the agreement with the Concession Agreement Form (PDF) to the department for review and approval, along with the one-time processing fee of $100, prior to operating a concession agreement.
Need help with creating an agreement? Fill out a Standard Concession Agreement document (PDF).
Only three (3) concession agreements are allowed per license.
Exceptions: Call CARD to see if you qualify for the grandfathered concession agreements exceptions.
Alterations
If you decide to remodel your establishment, you must send CARD an Alteration Request Form (PDF) along with a copy of the existing floor plan and a proposed floor plan showing the alterations before starting the alteration. Once CARD reviews and approves the request, you may begin the alteration without it affecting your license. You may request to have your license placed on a nonuse status while under construction. You may not use the new premises area(s) until the department has approved them and they have passed building, health, fire, and a premises inspection.
Exception: In certain cases, pre-approval is not required. Contact CARD if you are unsure. Not sure if your “remodel” is considered an alteration? Contact your Licensing Specialist.
Seasonal Status
If you would like to operate a license on a seasonal basis, you must send a written request to the department that includes justification for operating seasonally and the general dates of operation.
If approved, the license closure is only effective from the date of the department’s letter of authorization through the end of the specified period. Notify the department before changing general dates of operation. Your license will reflect your general dates of operation.
While on seasonal status, you may not operate during your “off season,” including catering, and you may not order and receive deliveries during your “off season.”
Exception: You may order product to restock for your season to start.
Delivery Endorsement
You must be approved before delivering beer and wine. Learn more about Alcohol Delivery.
To be approved, apply online through TAP:
- Log into your TAP account.
- Select the license you want to add the delivery endorsement to. For example, choose your “on-premises license” option.
- Select “More” on the right.
- Under Account Options, select “Request Changes to Account.”
- Check “Add/Remove Alcohol Delivery Endorsement.”
- Follow the prompts for information and payment.
Delivery rules
Beer and wine in original packaging may be delivered by certain on-premises licensed alcoholic beverage establishments with food prepared by the licensee. The purchase price of the delivered beer and wine may not exceed the purchase price of the delivered food.
Noncontiguous Storage of Alcohol
A licensed retailer may apply for one noncontiguous alcoholic beverage storage area within 10 miles of their licensed premises. Apply for approval before using the new storage area using the noncontiguous alcoholic beverage storage area request form (PDF). When approved, a new license will be issued with your non-contiguous storage information listed on the front.
Definitions
- Alcoholic beverage
- A compound produced and sold for human consumption as a drink that contains more than 0.5 percent of alcohol by volume.
- Beer
- A malt beverage containing not more than 8.75% alcohol content by volume, or an alcoholic beverage containing not more than 14% alcohol by volume, that is made by the alcoholic fermentation of an infusion or decoction, or a combination of both, in potable brewing water, of malted cereal grain, and in which the sugars used for fermentation of the alcoholic beverage are at least 75% derived from malted cereal grain measured as a percentage of the total dry weight of the fermentable ingredients. The term does not include a caffeinated or stimulant-enhanced malt beverage.
- Hard cider
- An alcoholic beverage that is made from the alcoholic fermentation of the juices of apples or pears and that contains not less than 0.5% of alcohol by volume and not more than 8.5% of alcohol by volume, including but not limited to flavored, sparkling, or carbonated cider.
- Liquor
- An alcoholic beverage except beer and table wine. If beer and table wine deviate from their specific definition, then it defaults to the liquor definition. The term includes a caffeinated or stimulant-enhanced malt beverage.
- Non-institutional lender
- A person other than a state or federally regulated banking or financial institution, a credit union, an investment company, a development company, or other regulated lender as defined in 31-1-111, MCA, who loans money to the applicant for a license or to the licensee.
- Table wine
- Wine that contains not more than 16% alcohol content by volume and includes hard ciders.
Questions?
Contact an CARD Licensing Specialist for more information.