Bars, Taverns and Restaurants
The type of license that bars, taverns and restaurants use is called an on-premises license. There are several different types of on-premises licenses. The type of business you have and the location of your business determine the type of license you need to apply for.
On-Premises Licenses - Frequently Asked Questions
County All-Beverages License is used by establishments located anywhere in a county, except within the boundaries of the incorporated cities and towns and within a five mile radius thereof. The license allows establishments to serve all alcoholic beverages including distilled spirits, wine and beer. This type of license allows businesses to apply for gambling and be open from 8 a.m. to 2 a.m. and must have a bar area in which alcoholic beverages can be sold, served and consumed. Quota limitations do apply for a county all-beverage license (one license for every 750 inhabitants), so be sure to contact the Liquor Control Division to verify there is a license available in your county prior to applying.
City All-Beverage License is a license that is used at an establishment located anywhere within the boundaries of an incorporated city or town and within a 5 mile radius thereof, and serves all alcoholic beverages including distilled spirits, wine and beer. This type of license has the ability to apply for gambling, can be open from 8am to 2am and must have a bar area to sell, serve and consume alcoholic beverages. Quota limitations* do apply when considering a city all-beverage license so be sure to contact the Liquor Control Division to verify there is a license available prior to applying.
* (Population 500 or less=2 licenses; population 501-3000=3 licenses for first 1,000 inhabitants plus 1 for each additional 1,000 inhabitants; population 3,001 or more=5 licenses for first 3,000 inhabitants plus 1 for each additional 1,500 inhabitants)
County Beer License or Beer License with a Wine Amendment is a license that is used at an establishment located anywhere in the county, except within the boundaries of the incorporated cities and towns and within a 5 mile radius thereof, and serves table wine and beer. This type of license has the ability to apply for gambling, can be open from 8am to 2am and must have a bar area to sell, serve and consume alcoholic beverages. Quota limitations do NOT apply when considering a county beer or beer license with a wine amendment. In order to be considered for a wine amendment, the establishment must have food available but the food need not be prepared on site.
City Beer License or Beer License with a Wine Amendment is a license that is used at an establishment located anywhere within the boundaries of an incorporated city or town and within a 5 mile radius thereof, and serves table wine and beer. This type of license has the ability to apply for gambling if it was issued prior to 1997, can be open from 8am to 2am and must have a bar area to sell, serve and consume alcoholic beverages. Quota limitations* do apply when considering a city beer license or beer license with a wine amendment so be sure to contact the Liquor Control Division to verify there is a license available prior to applying. In order to be considered for a wine amendment, the establishment must have food available but the food need not be prepared on site.
* (Population 500 or less=1 license; population 501-2,000=1 license for every 500 inhabitants; population 2,001 or more=4 licenses for first 2,000 inhabitants, 2 licenses for the next 2,000 inhabitants and 1 additional license for every additional 2,000 inhabitants)
Restaurant Beer and Wine License is a license that is used at an establishment located anywhere within the boundaries of an incorporated city or town and within a 5 mile radius thereof, and serves table wine and beer for on-premises consumption ONLY. This type of license must be used in conjunction with a "restaurant". "Restaurant" means a public eating place where individually priced meals are prepared and served for on-premises consumption, where at least 65% of the restaurant's annual gross income must be for the sale of food, that has a dining room, a kitchen and the number and kinds of employees necessary for the preparation, cooking and service of meals, that serves an evening dinner meal at least 4 days a week for at least 2 hours a day between the hours of 5pm and 11pm. This type of license DOES NOT have the ability to apply for gambling and can only serve table wine and beer from 11am to 11pm. Quota limitations* do apply when considering a restaurant beer and wine license so be sure to contact the Liquor Control Division to verify there is a license available prior to applying.
Restaurant Beer and Wine License - Frequently Asked Questions
* (Population 5,000 or less=80% of the beer quota; population 5,001-20,000=160% of the beer quota; population 20,001-60,000=100% of the beer quota; population 60,001 or more=80% of the beer quota)
Veterans or Fraternal License is a nontransferable and non assignable, as to ownership only, retail all-beverages issued to an enlisted personnel, noncommissioned officers', or officers' club located on a state or federal military reservation on May 13, 1985 or to any post of a nationally chartered veterans' organization or any lodge of a recognized national fraternal organization if the veterans' or fraternal organization has been in existence for a period of 5 years or more prior to January 1, 1949, that is used at an establishment that serves all alcoholic beverages including distilled spirits, wine and beer. This type of license has the ability to apply for gambling, can be open from 8am to 2am and must have a bar area to sell, serve and consume alcoholic beverages. Quota limitations do NOT apply when considering a Veterans or Fraternal license.
Golf Course Beer and Wine License is a nontransferable, gaming restricted license that is used at a golf course and application must be made by the person or entity that owns and operates the golf course. If the owner of the golf course is not the state, a unit of the university system or local government: the golf course must consist of at least 9 holes and 2, 500 lineal yards; be located within an incorporated city or town or within 5 miles of the limits of an incorporated city or town; and the applicant must pay a $20,000 initial application fee; or the golf course must consist of at least 9 holes and 2,500 lineal yards; be located within an incorporated city or town or within 5 miles of the limits of an incorporated city or town; and the governing body of the golf course must be incorporated under section 501(c)(3) of the Internal Revenue Code. The owner may only make sales of beer and wine during the time of year that the golf course is open for business, and the sales on days during that time must stop by 1 hour after sunset, and the seating capacity on the premises where beer and table wine are sold may not exceed 75 persons. If the owner of the golf course is the state, a unit of the university system or a local government, the owner may lease the beer and wine license for use at the golf course to an individual or entity approved by the department of revenue. An applicant for this type of license may not have held a beer and wine or all-beverages license within 12 months of the date of the application. (16-4-109, MCA)
Resort All-Beverage License is an all-beverage license that is used within a pre-determined resort area which does not include any land or improvements that lie wholly within the boundaries of a quota area. This type of license may apply for gambling; however, no more than 20 gambling machine permits may be issued for the resort area. This license may not be transferred or sold for operation at a location outside the boundaries of the resort area. The establishment can be open from 8 am to 2 am and must have a bar area to sell, serve and consume alcoholic beverages, including distilled spirits, wine and beer. There are limits to how many licenses may be issued within a particular resort area: 1 license for the first 100 accommodation units and an additional license for each additional 50 accommodation units in the resort area. (16-4-202, MCA) A licensee that operates a resort all-beverage license may also apply for a tour boat endorsement on their license if: the applicant has provided documentation verifying the boats are at least 40 feet in length and equipped to carry at least 50 passengers, as well as provided proof of that the health department has approved food services on the boat, inspections and approval have been issued by Fish, Wildlife and Parks of boat safety equipment requirements, current boat registration, business liability insurance coverage and the resort licensee/applicant is the owner of the tour boat. (16-4-210, MCA)
The resort area for purposes of qualification has a current actual valuation of resort or recreational facilities, including land and improvements, of not less than $500,000, at least half of which valuation must be for a structure or structures within the resort area; be under the sole ownership or control of one person or entity at the time of filing of the resort area plat, contain a minimum of 50 acres of land, contain a minimum of 100 overnight guest accommodation units, each unit capable of being separately locked by the occupants and containing sleeping, bath, and toilet facilities; and provide on the grounds of the resort the recreational facilities that warrant the resort designation being granted.
Airport All-Beverages License is a license that shall be issued for use at each publicly owned airport served by scheduled airlines and enplaning and deplaning a minimum total of 20,000 passengers annually. Application must be made by the agency owning and operating the airport. The agency owning and operating the airport may lease the license to an individual or entity approved by the department. This type of license has the ability to apply for gambling, can be open from 8am to 2am and must have a bar area to sell, serve and consume alcoholic beverages. Quota limitations do NOT apply for this type of license.
All on-premises locations must meet certain requirements to qualify for a license. These could include, but are not limited to:
* By indoor and outdoor advertising, signage, general layout and atmosphere of the premises an investigator can easily determine the type of alcoholic beverages business being conducted;
* Alcoholic beverages, that the establishment is licensed for, are advertised and displayed as being available for purchase;
* The layout of the premises allows for licensee/employee only control over the preparation, sale, service and/or distribution of alcoholic beverages;
* Adequate safeguards are in place to prevent sale, delivery or giving away of alcoholic beverages to underage and intoxicated persons;
* Sale of alcoholic beverages does not occur through the use of a drive-up window or provided to customers from self-service devices, vending machines or reach in coolers;
* The license will be operated at a premises clearly recognizable as a business established for the on-premises consumption of alcoholic beverages or other business directly related to the on-premises consumption of alcoholic beverages such as a bowling alley, hotel, gambling casino or restaurant and be physically separated from any business not directly related to (this does not include a coffee or beverage shop, bakery or kiosk);
* The license must be used at a premises that has a bar preparation area where alcohol can be purchased and consumed and sufficient seating to encourage patrons to remain on the premises and consume alcoholic beverages sold by the drink. Sufficient seating must consist of not less than 12 seats at a bar, tables, booths, gaming areas or any combination of the above. The twelve seats required are independent of any seats at gaming machines.
* The premises may include a patio if it has the required perimeter barrier, except that a license used at a golf course does not require a perimeter barrier around the patio because alcohol can be consumed at any place within the boundaries of the golf course;
For a detailed list of premises requirements, please click on the link ARM 42.12.122
Each of the above licenses may be issued a Catering Endorsement to sell and serve alcoholic beverages they are licensed for to patrons attending a special event within 100 miles of their licensed premises as long as the event is NOT on an already licensed premises and the sponsor of the event is not the licensee or another licensee. The licensee must have a written contract to provide alcoholic beverages at the event. A restaurant beer and wine licensee must serve food at the catered event. A beer licensee who applies for a catering endorsement must also provide food at their licensed premises.
Catering Special Events - Frequently Asked Questions
Catering and Tailgate Parties - Frequently Asked Questions
Licensed operations also will sometimes operate under a Franchise Agreement. A franchise agreement means a contract or agreement by which a franchisee is granted the right engage in business under a marketing plan prescribed in substantial part by the franchisor. The franchisee is required to pay, directly or indirectly, a fee for the right to operate under the agreement. For liquor licensing purposes, the franchise agreement must include an acknowledgment that the franchisor cannot receive a percentage of any sales of alcoholic beverages.
Other Types of On-Premises Licenses:
Passenger Carrier License is a license issued to common carriers serving Montana so they may serve alcoholic beverages to passengers in aircraft over or railroad cars in the state of Montana. (16-4-302, MCA)
Non Profit Arts Organization Beer and Wine License is a special beer and table wine license to sell beer and table wine to patrons of exhibitions, productions, performances or programs sponsored or presented by the organization in a specific theatre or other appropriately designated place of on-premises consumption. (16-4-303, MCA)