The Restaurant Beer & Wine License

License Overview

A restaurant beer and wine (RBW) license allows a restaurant to serve beer and wine at retail for on-premises consumption between the hours of 11 a.m. and 11 p.m., only to customers who order food. Gambling is not allowed in conjunction with an RBW license.

Catering endorsement

An RBW licensee may request a catering endorsement that allows the licensee to provide and serve beer and wine with food at catered events within 100 miles of the licensed premises. See ARM 42.12.128 for specific requirements.

How to Get a License

An RBW license may be applied for directly from the Department of Revenue (DOR) Cannabis and Alcohol Regulation Division (CARD). CARD issues a limited number of city RBW licenses (quota), determined by the population of the city or town in which the license operates (quota area). To see available RBW licenses, contact a CARD Licensing Specialist or view the quota sheet (PDF).

Licenses are available in one of three ways:

  1. First-come, first-served purchase from the Department “off the shelf.”
  2. Competitive bid.
  3. Purchase from an existing licensee.

If a new license is available on a first-come, first-served basis, you may begin the application process. You may apply electronically through the TransAction Portal (TAP).

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

  • One-time RBW license processing fee: $400.
  • Annual RBW license fee: $400.
  • Annual catering endorsement fee (if applicable): $200.
  • Fingerprint card fee for each individual with 15% or more ownership interest in the business: $30 each. Price subject to change.

One-time seating fees for newly issued licenses

Seating fees apply only to newly issued licenses. The other fees above apply when buying an existing license and are in addition to the cost of buying the license from a third party.

  • Seating for 60 people or less: $5,000.
  • Seating between 61 and 100 people: $10,000.
  • Seating for 101 people or more: $20,000.

Additional fees for this type of license may be charged by local city and county agencies. All license renewal fees are due by June 30 every year whether the license is on nonuse status or active.

Application Requirements

When applying for an RBW 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 RBW 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 RBW license, provide the following ownership information (based on 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:

Application Process

The application process takes an average of 90 days and begins when a complete combined alcohol/gambling application package with all supporting documents is received.

  1. The application is reviewed by CARD.
  2. The applicant will receive a letter requesting any additional documents, if needed.
  3. 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. Read 16-4-207, MCA.
  4. CARD notifies local agencies with jurisdiction over the premises area of the application in process.
  5. Before final approval of any new location, the applicant contacts local building, health, and fire code officials to schedule inspections.
  6. After the protest period deadline and 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.
  7. 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:

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 RBW licensee may:

  • Sell and serve beer and wine from 11 a.m. to 11 p.m. only to patrons who order food. If the establishment operates in conjunction with a hotel, 24-hour restaurant, bus depot, railway terminal, grocery store, pharmacy, or other lawful business that does not sell alcoholic beverages, the other business may remain open.
  • Possess and cook with distilled spirits in the kitchen of the licensed premises only for the preparation of food and as long as the alcohol content is cooked out of the food at the time of serving.
  • Sell alcoholic beverages through a drive-up window.
  • Sell non-alcoholic (NA) type products if they are not over .5% abv.
  • Be closed for up to 90 consecutive days without department approval. However, you must fill out a Nonuse Request 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.

An RBW licensee may sell beer and wine for off-premises consumption under the following conditions:

  • Food must also be ordered.
  • The purchase price of the beer and wine with a to-go order may not exceed the purchase price of the food ordered.
  • The beer or wine must be stated on the food bill.
  • The sales must count toward the 65% food to 35% alcohol sales ratio limit.

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 on-premises beer and wine licensee may not:

  • Lock premises doors while there are still customers inside.
  • Offer gambling under Title 23, chapter 5, part 3, 5, or 6.
  • Allow anyone (licensee, employee, customer) to consume any alcoholic beverage on the licensed premises between 11 p.m. and 11 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.
  • Be considered a fast-food restaurant.
  • Use throw-away containers for the majority of their service (excludes carry-out containers).
  • 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 page for more information. You may also purchase beer and wine in original packaging from another licensed retailer, up to 6 gallons per day.
  • Allow the license to be concessioned (that is, let someone else run your restaurant and sell alcohol).
  • 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.
  • Sell or serve alcoholic beverages through vending machines or third-party deliveries.
  • Own any interest in a manufacture license, agency liquor store, or wholesaler/distributor license.
  • Manage a wholesaler/distributor license, agency liquor store, or manufacturer license. See the Managing Other Licenses page for more information.

Competitive Bid Licenses

An RBW license issued through competitive bid may not:

  • Stop using the license within the first five years.
  • Offer gambling under Title 23, chapter 5, part 3, 5, or 6.
  • 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 RBW 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 RBW licensee must:

  • Give law enforcement access to their licensed premises at all times.
  • Serve dinner at least four days a week for at least two hours, between 5 p.m. and 11 p.m.
  • Have individually priced meals that are prepared at their premises.
  • Show sales of food to be at least 65% of the restaurant’s annual gross income and no more than 35% in alcoholic beverage sales.
  • Have a kitchen and a sufficient kind and number of employees to staff a full-service restaurant.
  • Have a dining room that contains at least half of the total available seats.
  • Include all beer and wine purchases on the food bill. Beer or wine may not be purchased separately.
  • 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 for more information.
  • 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.

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:

  1. Log into your TAP account.
  2. Select the license you want to add the delivery endorsement to. For example, choose your “on-premises license” option.
  3. Select “More” on the right.
  4. Under Account Options, select “Request Changes to Account.”
  5. Check “Add/Remove Alcohol Delivery Endorsement.”
  6. 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.