(1) All applications for licenses to sell, manufacture, or distribute alcoholic beverages shall be made to the department upon forms supplied by the department or through the department's licensing portal. An abbreviated application may be used for license modifications as specified in ARM 42.12.118. In all other cases, the application process specified below shall be followed.

(2) Applications for licenses shall be in the names of all persons who will have an ownership interest in the business to be operated under the license, as required in 16-4-401, MCA.

(3) In addition to the license application, as applicable, the applicant shall submit:

(a) any processing fees required by ARM 42.12.111 and the license fee required by 16-4-420 or 16-4-501, MCA;

(b) a copy of the proposed agreement to transfer an ownership interest;

(c) proof that the applicant has possessory interest in the premises;

(d) any source of funding documents including, but not limited to, loan documents, gifting statements, and finance institution statements;

(e) the premises floor plan;

(f) bank account authorization and signature documents;

(g) proof of assumed business name;

(h) proof that all filings and payments related to Montana income, corporation, withholding, business, and other taxes are current;

(i) two complete sets of fingerprints and a personal history statement for each person identified in 16-4-414, MCA, and ARM 42.12.212; and

(j) for any entity applicant:

(i) proof the business is registered in Montana;

(ii) stock certificates;

(iii) stock ledger or membership units register;

(iv) bylaws; and

(v) organizational meeting minutes.

(4) At any time during the application process, an applicant must notify the department of any changes in the information and documents submitted under (3) and promptly provide the department with any corrected or updated information or documents. The department will toll the processing time of the applicant's license application in accordance with 16-4-402, MCA, until the corrected or updated documents are received.

(5) An applicant who does not have a premises ready to operate may apply for an available license pursuant to 16-4-417, MCA. The applicant must electronically apply for the license through the department's licensing portal and submit any applicable information under (3) for the department to review the application. A license issued without an approved premises will be automatically placed on nonuse status by the department.

(6) Failure of a licensee to fulfill the requirements of 16-4-417, MCA, shall subject the license to revocation.

(7) The department may waive an application requirement set forth in this rule in its sole discretion.

(8) The disqualification of any applicant to hold the license disqualifies all.

(9) The department may issue a license in its sole discretion. A licensee remains bound by all requirements in statute and rule that apply at the time an application for license or an application for renewal is approved. 

This rule has been repealed.

This rule has been repealed.

(1) Upon receipt of the most recent census taken under the direction of congress, or the most recent population estimates published by the Bureau of the Census, United States Department of Commerce, the Department of Revenue will determine the availability of any alcoholic beverages licenses subject to a quota system. The department will publish notice of increases in the availability of alcoholic beverages licenses subject to a quota limitation if the quota of licenses had previously been filled within 30 days of receipt of both city and county certified census numbers.

(2) In determining the availability of such licenses, the department will utilize only those boundaries that are recognized by the Bureau of the Census.

(3) The department will determine whether a license is available for a license applicant based on the verified census data in the department's possession on the date the department received the application, except when the department has published a notice of availability of a license three months before or after receipt of the application, in which case the verified census data in the department's possession on the date the notice is published shall be used. Census data is verified when the department has confirmation the Federal Census Bureau has declared the census data to be official, the department has calculated the license quotas from the official census data, and the department has placed the revised quotas on file.

(1) The department may accept electronic submission of certain documents through the licensing portal.

(2) An electronically submitted document is only complete if:

(a) all requested information is provided; and

(b) the submitter is the applicant, licensee, or an authorized representative of the applicant or licensee.

(3) By electronically submitting a document, the submitter declares, under the penalty of false swearing, that:

(a) the information submitted is true, correct, and complete; and

(b) the submitter is the applicant, licensee, or an authorized representative of the applicant or licensee.

(4) An electronically submitted document is subject to the same deadlines as a document submitted in paper form.

The following definitions apply to this chapter:

(1) "Adjacent to," with regard to alcoholic beverage advertising limitations for premises suitability, means:

(a) the premises share a common internal or external wall with the building at issue; or

(b) there is an absence of another building between the premises and the building at issue; and

(c) the distance between the nearest exterior wall of the premises and the building at issue is equal to or less than 100 feet.

(2) "Affiliation" means relationships wherein:

(a) an entity owns or controls another entity;

(b) entities are under common ownership or control; or

(c) an individual has decision-making authority or influence over business decisions for another entity.

(3) "Alteration" means a structural change or modification to the premises other than a cosmetic change. Examples include adding a patio/deck or removing a half wall.

(4) "Associated business" means a business that is not licensed by the state to keep or sell alcoholic beverages, but has an alcoholic beverages licensed business located within or on the premises owned or controlled by the "associated business." Examples of associated businesses are:

(a) a hotel that is not licensed to keep or sell alcoholic beverages, but leases space in the hotel to a licensee to sell alcoholic beverages; or

(b) a shopping mall that is not licensed to keep or sell alcoholic beverages, but leases space in the mall to a licensee to sell alcoholic beverages.

(5) "Bona fide sale" means a transaction that completely transfers the property to a qualified purchaser for consideration.

(6) "Building" means an enclosed structure with external walls and a roof. Separate structures or structures connected by skyways are not considered one building for licensing purposes.

(7) "Business directly related to the on-premises consumption of alcoholic beverages" means a business that is readily associated with on-site alcoholic beverage consumption, such as a hotel, bowling alley, casino, or restaurant. It does not include alcoholic beverage manufacturers, grocery stores, or off-premises alcoholic beverage businesses.

(8) "Catered event" means a special event where the sale and service of alcoholic beverages is conducted by a licensee who has obtained a catering endorsement.

(9) "Catered event service area" means the area in which the licensee with a catering endorsement may sell and serve alcoholic beverages at retail.

(10) "Complete application" means all information requested on the license application forms and the necessary supporting documentation has been supplied in compliance with the law.

(11) "Concession agreements" are agreements in which an on-premises consumption beer licensee or all-alcoholic beverages licensee provides the sale and service of alcoholic beverages for a non-licensed entity.

(12) "Contiguous" means touching or sharing a common border.

(13) "Cross collateralization" means collateral for one loan also serving as collateral for another loan.

(14) "Drink preparation area" means the bar area on the premises where alcoholic beverages are stored and prepared for on-premises consumption and from which alcoholic beverages may be sold for off-premises consumption.

(15) "Event barrier" means a barrier enclosing the perimeter of a catered event service area. The construction, installation, and use criteria of an event barrier is provided in ARM 42.12.128.

(16) "Fair" means a county, state, or regional fair that occurs no more than once per year, is held on a publicly owned fairgrounds, and is officially sanctioned by a government entity.

(17) "Family relationship" means a spouse, dependent children, or dependent parents.

(18) "Floor plan" means a diagram with measurements of the premises as seen from above.

(19) "Grocery store" means a self-service retail establishment where a variety of perishable and nonperishable food items and household goods are sold for use off the premises.

(20) "Interior access" means entry that does not impede customer foot traffic from accessing any interior portion of the premises. Interior access is not found where a customer would be required to leave the interior portion of the premises.

(21) "Licensee" means a person, partnership, association, or other entity holding a Montana retail alcoholic beverage license, a retail alcoholic beverage operation located on a U.S. military installation, an alcoholic beverage manufacturer, a table wine distributor, or a beer wholesaler within Montana.

(22) "License fee" means a fee paid at the time a new license application is submitted and upon renewal of an existing license.

(23) "Loan" means a written contract by which one delivers a sum of money to another with the agreement that the money be returned with interest within a specified period of time.

(24) "Manufacturing area" means the portion of a manufacturing premises that is not designated as a sample room.

(25) "Noninstitutional lender" means 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.

(26) "Ownership interest" means the involvement in the business operated under the license by someone who owns some or all of the assets of the business, shares any portion of the profits, or any portion of the losses or liabilities of the business. Someone with an ownership interest in a liquor license shares in the financial risks of the business and is entitled to the profits or suffers the losses. Ownership interest includes the right to control the location or ownership of a license. Examples of ownership interests would include the authority to participate in such business decisions as the sale of the license, relocation of the license, or change or creation of any financial arrangements for loan repayment or funding sources. Participation in business decisions does not include providing advice. A right of first refusal is not an ownership interest.

(27) "Parties" means a:

(a) licensee;

(b) applicant;

(c) secured party;

(d) protestor; or

(e) attorney representing the licensee, applicant, secured party, protestor, or other interested party.

(28) "Patio/Deck" means an outdoor portion of the premises where the preparation, service, and consumption of alcoholic beverages is allowed.

(29) "Perimeter barrier" means a barrier enclosing the perimeter of the patio/deck. The barrier shall be constructed in a manner that impedes foot traffic and clearly defines the boundary of the exterior portion of the premises. The barrier shall be at least three feet high at all points and may have a single six-foot-wide entrance permitting public access from an unlicensed area to the patio/deck. Upon the department's determination that the barrier accomplishes its intended purpose, the barrier may:

(a) be constructed of materials such as lattice or wrought iron that do not form a solid structure;

(b) have a portion of it be water;

(c) have additional entrances permitting public access to the patio/deck; and

(d) be less than three feet in height.

(30) "Permanent floor-to-ceiling wall" means a continuous structure spanning from floor to ceiling that remains in a fixed position and serves as a solid physical barrier. The wall may be constructed of brick, glass, stone, wood, and other materials as approved by the department. The wall may not be constructed of materials such as lattice or wrought iron that do not form a solid physical barrier.

(31) "Premises" means the area identified in the floor plan approved by the department on which the activities authorized under the license may be conducted.

(32) "Prepared serving" means the same as the term provided in 16-1-106, MCA.

(33) "Registered vendor representative" means the same as provided in ARM 42.11.105.

(34) "Retail alcoholic beverages license" means a license operated by an establishment for the retail sale of alcoholic beverage for either on- or off-premises consumption but does not include brewery, winery, or distillery licenses.

(35) "Sacramental wine" means wine that is manufactured and sold exclusively for use as sacramental wine or for other religious purposes.

(36) "Sample room" means the area of a manufacturer's premises where the service, sale, and on-premises consumption of alcoholic beverages are permitted.

(37) "Self-service of alcoholic beverages" means allowing persons other than the licensee or its employees to have access to alcoholic beverages prior to the licensee or its employees providing the alcoholic beverage to the person for on-premises consumption.

(38) "Service area" means the area on the premises where the service, sale, and on-premises consumption of alcoholic beverages are permitted. The service area includes any patio/deck and drink preparation area.

(39) "Service bar" means an area on a restaurant beer and wine licensee's premises where alcoholic beverages are stored and prepared for on-premises consumption.

(40) "Special event," as it relates to special permits and catered events, means a short, infrequent, out-of-the-ordinary occurrence such as a picnic, fair, festival, reception, seasonal event, or sporting event for which there is an outcome, conclusion, or result.

(41) "Stand-alone beer and/or table wine business" means a business in which 95 percent of the business's annual gross income comes from the sale of beer, table wine, or both.

(42) "Storage area" means any portion of the premises that is accessible only by the licensee or its employees and where alcoholic beverages are stored in original packaging.

(43) "Substantially different use" means a change great enough to create a new type of business operation at a premises which is easily distinguishable from the business currently operated or previously planned to be operated at the same premises.

(44) "Temporary operating authority" means the authority granted to an applicant to operate a business pending final approval of the application.

(45) "Undisclosed ownership interest" means a person with an ownership interest in a license who is not identified as an applicant, shareholder, or member of an applicant on an application for the license, or as a licensee on the face of the license.

(2) Licensees should seek guidance from the department concerning whether actions not listed in the department materials are allowed before engaging in such transactions. Unless the department provides written guidance citing explicit authority, the licensee should treat all transactions not in the educational materials as prohibited.

(3) Failure of a licensee to follow the guidance in the educational materials will not constitute an additional violation of law or rule.

(a) Helena, if other than a public convenience and necessity hearing or a resort determination hearing;

(b) the community nearest the location of the applicant's proposed premises if it is a public convenience and necessity hearing or a resort determination hearing; or

(c) Helena for a telephonic hearing, when agreed to by all the parties to the hearing.  The hearing will be initiated from Helena by the hearing examiner through a conference call to the telephone numbers provided by the parties.

(2) Prior to a hearing date, the office of dispute resolution shall issue a written notice of the date, time, and place of the hearing.  At that time, a copy of the notice shall be provided to all interested parties.

(a) contain statement(s) of the writer's intent that the letter be considered a protest;

(b) describe the reason for protesting the granting of a license; and

(c) identify the appropriate action by:

(i) providing the license number and accurate trade name or applicant name in a case of a transfer; or

(ii) the trade name and applicant name and stating that it is for a new application for an original Montana all-alcoholic beverages license.

(2) A protest letter containing multiple signatures is considered one protest letter.

(3) If the grounds stated in the letter of protest contain public convenience and necessity issues, the prerequisite number of protest letters required to initiate a public convenience and necessity hearing, as defined in 16-4-207, MCA, must be received.

(4) Any protest letter failing to meet the criteria in (1) , (2) , and (3) by the protest deadline will not be considered.

(1) A notice of proposed adverse action issued pursuant to 16-4-107, 16-4-406, 16-4-407, or 16-4-1008, MCA, shall be served upon the licensee or registrant of record or, in the case of an application for a new license, on the applicant, by sending a copy of the notice to the licensee, registrant, or applicant by certified mail to the mailing address on file with the department.

(2) Service shall be considered complete three days after mailing the notice. Service shall not be considered incomplete because of refusal to accept delivery of the notice.

(3) The licensee, registrant, or applicant must respond to the department in writing within 20 days of service of the notice of proposed adverse action. Failure to respond will result in the enforcement of the administrative action proposed in the notice.

(1) The fees to be charged for processing applications or other requests and submissions are as follows:

(a) All-beverages license $400

(b) Beer importer's license $200

(c) Beer wholesaler and table wine distributor license $200

(d) Beer wholesaler subwarehouse license $100

(e) Beer wholesaler license $200

(f) Brewer's license $200

(g) Brewery storage depot license $100

(h) Domestic distillery license $200

(i) Domestic distillery storage warehouse license $100

(j) Resort all-beverages license $400

(k) Restaurant beer and wine license $400

(l) Retail off-premises beer and table wine license $200

(m) Retail off-premises beer license $200

(n) Retail off-premises table wine license $200

(o) Retail on-premises beer license with wine amendment $400

(p) Retail on-premises beer license $400

(q) Sacramental wine license $50

(r) Table wine distributor license $200

(s) Table wine distributor subwarehouse license $100

(t) Tour boat endorsement $100

(u) Winery license $200

(2) The fees to be charged for processing requests associated with an existing license are as follows:

(a) Adding a catering endorsement $100

(b) Adding a wine amendment $100

(c) Adding a concession agreement $100

(d) Adding an additional manufacturing location $100

(e) Adding or changing mortgages, secured interests, or liens $50

(f) Transferring ownership as a result of a foreclosure $200

(g) Transferring location $200

(h) Increasing current ownership interest from less than 10 percent to 10 percent or more $200

(i) Changing the business entity type $200

(j) Changing the alcohol beverage type $200

(k) Adding a delivery endorsement $100

(3) The processing fee for determination of resort area is $500.

(4) Processing fees are not refundable.

(5) A fingerprint processing fee, in the amount indicated on the application form, must accompany each application.

This rule has been repealed.

This rule has been repealed.

(1) The department will assess a license renewal late-payment fee in all cases where a licensee fails to pay the license renewal fee on or before the due date. The renewal application and fee are timely filed and paid if mailed in an envelope postmarked by the United States Postal Service on or before the due date. If the due date falls on a Saturday, Sunday, or state legal holiday, a postmark for the following business day or a payment received at the department on the following business day is timely.

(2) The department may waive a license renewal late-payment fee assessment upon receipt of a written request by the licensee. The request must state the reason for late payment and be supported by documentation. A waiver of the license renewal late-payment fee assessment shall be granted under the following conditions:

(a) a department error;

(b) the department mailed a license renewal notice less than two weeks prior to the due date;

(c) a delay in payment caused by the death or serious illness of the licensee;

(d) a United States Postal Service error;

(e) a renewal application and fee was erroneously mailed to the Internal Revenue Service or Alcohol and Tobacco Tax and Trade Bureau;

(f) a delay in payment due to bankruptcy or foreclosure action; or

(g) the late payment is the only late payment within the most recent five consecutive years or since the license was acquired, whichever is less, and payment was received at the department within 30 days after the due date.

(3) A licensee's neglect, lack of funds, or ignorance of the law are not sufficient reasons for waiver of a license renewal late-payment penalty fee assessment.

(1) If an applicant has been denied a license under 16-4-405 , MCA, a new application cannot be considered for five years unless the department determines there has been a change great enough to be easily recognizable. The department will consider applications where the proposed use is noticeably and substantially different from the use that was previously rejected.

(a) The following examples constitute a substantially different use but are not all inclusive of the types of changes the department would consider:

(i) a situation where the new business operation has changed significantly enough to change the primary source of revenue generated by the business or the operation previously planned to be operated on the premises. Such a change would be where a business changed from primarily a casino/bar operation to a restaurant operation with all the necessary facilities to accommodate a restaurant setting and at least 65 percent�of the gross revenue is from the sale of food; or

(ii) the zoning designation of the proposed location has changed by local government action.

(b) The following examples do not constitute substantially different use:

(i) a change in business hours;

(ii) a change in the type of alcoholic beverages offered for on-premises consumption; or

(iii) a newly constructed or remodeled building which will be used for the same primary purpose as the proposed use that was rejected.

(2) An applicant who has applied for substantially different use, and is approved under this rule, may not change the applicant's manner of operation for five years as described in 16-4-413 , MCA.

(1) An abbreviated application may be used to modify a license as set forth in (2) and (3). The application process in ARM 42.12.101 shall be followed in all other cases.

(2) Licensees must submit an abbreviated application within 90 days of:

(a) removing an existing, previously qualified owner, member, partner, or shareholder from the license without the exchange of funds;

(b) adding an individual or entity as a less than 15 percent owner; or

(c) changing the entity type of the licensee if the existing owners and ownership percentages do not change.

(3) Licensees must submit an abbreviated application prior to:

(a) changing the ownership interest between two or more qualified owners, members, partners, or shareholders;

(b) transferring the location of the license;

(c) increasing the current ownership interest of any owner, member, partner, or shareholder from less than 15 percent to 15 percent or more;

(d) changing the entity type of the business if the existing owners or ownership percentages also change; or

(e) changing the license type.

(4) A licensee's failure to timely submit an abbreviated application shall constitute a violation and may subject the licensee to administrative action.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) Applicants shall be notified that the issuance of a new license or transfer will not be allowed by the department when:

(a) the number of licenses of each type already issued for the quota area is equal to or exceeds the limitations specified in 16-4-105, 16-4-201, and 16-4-420, MCA; or

(b) the transfer of an on-premises consumption alcoholic beverages license under these circumstances could not be approved under the requirements of the law.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) Any licensee having obtained a catering endorsement under the provisions of 16-4-111 or 16-4-204, MCA, is authorized to sell alcoholic beverages authorized under the license to persons attending a catered event sponsored by someone other than the licensee and at a location not otherwise licensed or operating under a special permit.

(2) Prior to selling or serving alcoholic beverages at the catered event, the licensee shall:

(a) have an executed written agreement with the event's sponsor;

(b) notify the local law enforcement agency that has jurisdiction over the area where the catered event will be held using a form provided by the department;

(c) pay the local law enforcement agency a $35 fee, as provided in 16-4-111 and 16-4-204, MCA; and

(d) ensure compliance with the alcoholic beverages sales restrictions provided in 16-3-306, MCA.

(3) A catered event may have more than one licensee cater the event. Licensees shall prevent the consumption of alcoholic beverages within their catered event service area that they did not sell or provide.

(4) A catered event may last for a maximum of three days, except a licensee may have one catered event per year that lasts up to seven days for a fair, as defined in ARM 42.12.106. The storage of alcoholic beverages may occur at the catered event one day prior to the catered event until one day following the conclusion of the catered event if the alcoholic beverages are in a secured location that prevents access by anyone other than the licensee or licensee's employees.

(5) Alcoholic beverages may be sold and served at the catered event from a booth, stand, or other fixed place of business as designated and described in the notice given to the local law enforcement agency and may include grandstands or bleachers, as provided for in 16-4-111 and 16-4-204, MCA.

(6) If there is not an existing boundary defining the catered event service area, an event barrier shall be required to clearly mark where the sale and service of each licensee's alcoholic beverages is allowed. The event barrier:

(a) shall be constructed in a manner that directs or impedes ordinary foot traffic and clearly defines the boundary of the catered event service area;

(b) shall be at least three feet in height at all points;

(c) shall have a clearly defined entrance permitting access to the catered event service area;

(d) may be shared with an adjoining licensee to define their respective catered event service areas; and

(e) may have a portion consisting of an existing natural or artificial barrier.

(7) When a licensee caters an event that is within 15 feet of its licensed premises, patrons may take alcoholic beverages between the licensed premises and the area authorized for the catered event if the licensee:

(a) incorporates into the event barrier, a clearly marked path or paths from the public entry of the licensed premises to the public entry of the catered event;

(b) posts signs along the path or paths informing patrons as to where the consumption of alcoholic beverages is allowed and not allowed; and

(c) obtains approval from local government officials for the use of the path or paths, if:

(i) the licensee does not already have possessory interest for the area;

(ii) the licensee does not already have conditional use approval from local government officials for the area; or

(iii) there is an ordinance in place prohibiting open containers of alcoholic beverages.

(8) The sale and service of alcoholic beverages at the catered event may be conducted by:

(a) the licensee or licensee's employees;

(b) volunteers of the licensee; or

(c) the alcoholic beverage manufacturer or vendor, its employees, or registered vendor representatives if:

(i) the licensee gives their explicit consent;

(ii) the alcoholic beverage manufacturer or vendor holds a current alcoholic beverage license, registration, or permit from the department; and

(iii) each person listed in (c) serving alcoholic beverages is current with the Responsible Alcohol Sales and Service Act, provided in 16-4-1005, MCA, prior to the commencement of the catered event.

(9) On or before the 15th day of each month, the licensee shall electronically report, on a form provided by the department, those events the licensee catered in the previous month and shall include a copy of the notification form signed by local law enforcement.

(10) A copy of the executed written agreement between the licensee and event sponsor for each event catered shall be maintained by the licensee for a period of three years from the date of the event. The department may make an examination of any such agreement at any time.

(11) The licensee who catered the event is ultimately responsible for ensuring compliance with all alcoholic beverage laws and regulations, violations of which may subject the licensee to administrative action.

(1) In order to apply the provisions of 16-3-306, MCA, the department must find:

(a) the entrance doors of the premises proposed for licensing and the entrance doors of the place of worship or school are situated on the same street; and

(b) the physical address of the premises proposed for licensing is designated as the same street as the physical address of the place of worship or school; and

(c) the distance, measured in a straight line, from the entrance doors of the business proposed for licensing and the entrance doors of the place of worship or school is 600 feet or less.

(2) If the above three-part test is not met in its entirety, the provisions of 16-3-306, MCA, do not apply.

(3) The distance between entrance doors is measured by a geometric straight line, regardless of intervening property and buildings. An entrance is considered to be a means of ingress to the premises generally used by the public. This does not include egress-only doors, delivery, or service entrances.

(4) In the event that a county or city government should enact an ordinance or resolution supplanting the provisions of 16-3-306, MCA, the restriction shall not apply.

(5) A conformed copy of such supplanting ordinance or resolution must be submitted to the department by the applicant.

(1) Any applicant applying to the department for a new license or transfer of location of an existing license under the quota limitations provided for under 16-4-105, 16-4-201, and 16-4-420, MCA, must submit to the department the legal description or street address of the proposed premises. 

(2) If the department determines the proposed premises are in close proximity to a quota area boundary line, the department may request the applicant complete and submit a survey affidavit form, provided by the department, from the local county or city surveyor or a private licensed land surveyor attesting to the location of the proposed premises. Any cost in obtaining the completed survey affidavit shall be paid by the applicant.

(1) When the department is not required to conduct a competitive bidding process for an available license in a quota area, applications will be processed on a first-come, first-served basis.

(2) The number of restaurant beer and wine licenses with a seating capacity of 101 persons or more may not exceed 25 percent of the number of restaurant beer and wine licenses allowed in the quota area.

(3) As set forth in 16-4-420, MCA, the department must make a decision either granting or denying a completed restaurant beer and wine license application within four months of receipt of the application. However, if the investigation into the application uncovers the necessity to analyze additional information not previously provided by the applicant, the four-month time period stops until the information is provided.

(1) All on-premises retailers, off-premises retailers, manufacturers, and distributors shall designate at least one location manager. If more than one person performs location manager duties, the licensee shall seek the department's approval for each. The licensee shall initially seek the department's approval of location managers on the license application. Following initial licensure, the licensee shall seek the department's approval of location manager as follows:

(a) if the location manager is not an owner vetted pursuant to 16-4-401, MCA, within 30 days of the employee commencing location manager duties, the licensee shall submit the location manager application, the employee's personal history statement, two complete sets of the employee's fingerprint cards, and the fingerprint processing fee; or

(b) if the location manager is an owner vetted pursuant to 16-4-401, MCA, on or before the deadline to renew the license in the year the owner commences location manager duties, the licensee shall submit the location manager application but does not need to resubmit the owner's personal history statement, two complete sets of the owner's fingerprint cards, or the fingerprint processing fee.

(2) The licensee shall confirm annually, on the license renewal form, who is performing location manager duties. At this time, the licensee shall also identify any location managers who ceased performing managerial duties during the past license year.

(3) A location manager is an employee who provides general oversight of the alcoholic beverage operations and ensures compliance with alcoholic beverage laws and regulations. The location manager designation is based upon the duties performed rather than the job title assigned.

(4) A location manager's past record and present status as a purveyor of alcoholic beverages and as a business person and citizen must demonstrate that the employee is likely to operate the establishment in compliance with all applicable laws of the state and local governments.

(5) The department shall issue its determination of the location manager application within 15 days of receiving the results of the background investigation.

(6) The licensee shall:

(a) retain ultimate control over the license and premises;

(b) maintain an active participation in the alcoholic beverage operation sufficient to ensure the proper and lawful conduct of the business; and

(c) except for an owner acting as a location manager, provide the location manager compensation commensurate with the duties performed. Compensation shall not be based on a percentage of gross sales or net profits.

(7) Failure to abide by the provisions of this rule, including the failure to disclose the person performing location manager duties, may subject the licensee to administrative action, including revocation of the license.

(1) Concession agreements, authorized to the licensees specified under 16-4-213(7) and 16-4-418, MCA, are written agreements, which may be in the form of a standalone contract or a department-approved, standard agreement, that formalize how a licensee will extend its licensed premises into a concessionaire's business for the purpose of selling and serving the licensee's alcoholic beverages to the concessionaire's customers provided the suitability requirements in ARM 42.12.145 are met.

(2) All new, proposed concession agreements must be submitted to the department for review and approval prior to their execution or effective date, and must be accompanied by the following:

(a) a completed concession agreement request form provided by the department, the application fee provided in 16-4-418, MCA, and the processing fee described in ARM 42.12.111;

(b) a copy of the proposed floor plan;

(c) any additional documentation the department deems reasonably necessary to approve the concession arrangement; and

(d) a completed alteration request form if the addition of the concessionaire's area will change the licensee's current floor plan that is on file with the department.

(e) The alteration request requirement in (d) does not apply to a new, proposed concession agreement when it is included in a license application submitted by an applicant pursuant to 16-4-402, MCA, and ARM 42.12.101.

(3) The department, upon receipt of the proposed concession agreement and any supporting documentation, will advise the licensee and concessionaire of its approval or denial of the agreement unless further documentation or an audit review is necessary.

(4) Upon approval of the proposed concession agreement, the license will reflect language that the licensee is also serving alcoholic beverages in the concessionaire's establishment. The concessionaire shall display in a prominent place, a copy of the license and a placard, issued by the department, stating the consequences for violations of the alcoholic beverage code by persons under 21 years of age.

(5) Except as provided in (6), any proposed modification of an existing concession agreement must be submitted for review and approval by the department. The licensee and concessionaire may continue to operate under the approved, existing concession pending approval by the department.

(6)  A licensee and concessionaire may change the compensation arrangement under a concession agreement, without department approval, if it meets the requirements of 16-4-418(6)(a), MCA. The licensee and concessionaire must submit a copy of the new compensation terms on the concession agreement request form within 30 days of the change.

(7) All concession agreements must be renewed on or before June 30 of each year by paying the renewal fee provided in 16-4-418, MCA. Failure to pay the renewal fee may result in the denial of renewal of the concession agreement. 

(8) Failure of a licensee to submit a completed annual license renewal form to the department and pay the license's renewal fee may result in the denial of renewal of the concession agreement.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been repealed.

(1) No alcoholic beverages license shall be issued to an entity unless the entity has been authorized to do business in Montana prior to making application for an alcoholic beverages license.

(2) An entity's application must be accompanied by the following, as issued within the last six months by the Montana Secretary of State:

(a) articles of incorporation or organization, or a certificate of existence for corporations and limited liability companies; or

(b) a certificate of fact or application as filed with the Secretary of State for all other types of entities.

(3) The applicant must be current on all filings and payments related to Montana income, corporation, withholding, business, and other taxes.

This rule has been repealed.

(1) For purposes of this rule, any ownership interest in a business that operates a license issued under the Montana Alcoholic Beverage Code is considered to be an ownership interest in the license itself.

(2) A Montana all-beverages licensee may not:

(a) possess a financial or ownership interest in:

(i) a Montana agency liquor store;

(ii) more than two additional Montana all-beverages licenses, for an aggregate number of three licenses, except as provided in 16-4-205, MCA; or

(iii) more than half the total number of Montana all-beverages licenses in any quota area described in 16-4-201, MCA;

(b) through a business or family relationship, share in the profits or liabilities in more than half the total number of Montana all-beverages licenses in the specific quota area in which the licenses will be held; or

(c) individually or through the person's immediate family, receive financing from or have any affiliation to:

(i) an alcoholic beverage manufacturer or importer of alcoholic beverages, except that a licensee's spouse may possess an ownership interest in one or more manufacturer licenses; or

(ii) a distributor of alcoholic beverages, including a Montana beer wholesaler, Montana table wine distributor, and a Montana agency liquor store.

(3) All other Montana retail on-premises consumption alcoholic beverages licensees may not:

(a) possess a financial or ownership interest in a Montana agency liquor store; or

(b) individually or through the person's immediate family, receive financing from or have any affiliation to:

(i) an alcoholic beverage manufacturer or importer of alcoholic beverages, except that a licensee's spouse may possess an ownership interest in one or more manufacturer licenses; or

(ii) a distributor of alcoholic beverages, including a Montana beer wholesaler, Montana table wine distributor, and a Montana agency liquor store.

(4) A Montana retail off-premises consumption beer and table wine licensee may not:

(a) possess a financial or ownership interest in a Montana agency liquor store; or

(b) individually or through the person's immediate family, receive financing from or have any affiliation to:

(i) an alcoholic beverage manufacturer or importer of alcoholic beverages; or

(ii) a distributor of alcoholic beverages, including a Montana beer wholesaler, Montana table wine distributor, and a Montana agency liquor store.

(5) A Montana beer wholesaler may not:

(a) possess a financial or ownership interest in a Montana agency liquor store, a Montana alcoholic beverages retailer, an alcoholic beverages manufacturer, or another Montana beer wholesaler;

(b) have any affiliation with a Montana alcoholic beverages retailer, or the immediate family of a Montana alcoholic beverages retailer; or

(c) be owned or controlled by an alcoholic beverages manufacturer or an importer of alcoholic beverages.

(6) A Montana table wine distributor may not:

(a) possess a financial or ownership interest in a Montana agency liquor store, a Montana alcoholic beverages retailer, an alcoholic beverages manufacturer, or another Montana table wine distributor;

(b) have any affiliation with a Montana alcoholic beverages retailer or the immediate family member of a Montana alcoholic beverages retailer; or

(c) be owned or controlled by an alcoholic beverages manufacturer or an importer of alcoholic beverages.

(7) A Montana alcoholic beverage manufacturer may not possess a financial or ownership interest in:

(a) a distributor of alcoholic beverages, including a Montana beer wholesaler, a Montana table wine distributor, and a Montana agency liquor store; or

(b) a Montana alcoholic beverages retailer.

(1) An applicant applying to the department to transfer an all-beverages license under the provisions of 16-4-204, MCA, may negotiate a bona fide sale with the owner of a license, located in a quota area from which that license may be transferred, to purchase a license and, if no competitive bidding is required, shall submit;

(a) an application for transfer of ownership and location in compliance with ARM 42.12.209 and 42.12.210;

(b) documents required for the application pursuant to ARM 42.12.101 to be considered a complete application as defined in ARM 42.12.106;

(c) a request for termination of existing secured parties' interest, if applicable;

(d) other documents which may be needed or specified on the application form or during the license investigation process; and

(e) other documents deemed necessary by the department or hearing examiner to reach a final decision.

(2) A fully executed purchase agreement and a request for termination of secured parties' interests are not required upon initial filing of the application.

(1) The department shall determine the suitability of the premises where an on-premises consumption beer or all-beverage retailer proposes to operate a license, when a party applies to obtain a license, transfer ownership interest in an existing license requiring the vetting of a new party pursuant to 16-4-401, MCA, changes the location where a license will be operated, makes alterations to a premises with a floor plan that the department approved, or applies to operate under a concession agreement with a concessionaire, as provided in ARM 42.12.133.

(2) The premises of an on-premises consumption beer or all-beverage retailer may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) a single alcoholic beverage license of any kind will be operated at the premises;

(d) the premises are identified by a unique address;

(e) the premises are located in one building or a specific portion of one building, except that a patio/deck may extend the premises beyond the interior portion of the building. The interior portion of the premises must comply with the requirements of 16-3-311(3), MCA. Subject to the exceptions in 16-3-311(8) and (9), MCA, if the premises are located in a portion of a building, the premises must be separated by permanent floor-to-ceiling walls from any other business, including any other business operated by the licensee. Except as otherwise provided in 16-3-311(8) and (9), MCA, the only access from the premises to another business may be through a single lockable door, no more than six feet wide, in the permanent floor-to-ceiling wall. Additional lockable doors in the permanent floor-to-ceiling wall may be allowed only upon department approval;

(f) building, health, and fire code approval is obtained;

(g) the premises are located on regular police beats and can be properly policed by local authorities, which includes the premises being located on property to which law enforcement has unrestricted access, except as provided in 16-6-103, MCA;

(h) the premises are not located where a local government ordinance prohibits the sale of alcoholic beverages;

(i) the premises are either solely dedicated to the on-premises consumption of alcoholic beverages or are within a business directly related to the on-premises consumption of alcoholic beverages;

(j) the type of business is readily determinable due to indoor and outdoor signage and the premises' general layout and atmosphere;

(k) alcoholic beverages are advertised and displayed as being available for purchase;

(l) there are no signs, posters, or advertisements displayed on the exterior portion of the premises that identify any brewer, beer importer, or wholesaler in any manner. This prohibition extends to buildings adjacent to the premises only if the retailer has possessory interest in the building. This prohibition does not apply to temporary advertisements allowed under 16-3-244, MCA;

(m) the floor plan accurately states the dimensions of the premises, includes the entity name, alcoholic beverage license number, physical address, submission date, and identifies all service areas, stationary drink preparation areas, storage areas, patios/decks, perimeter barriers, drive-through windows, and permanent floor-to-ceiling walls required between the premises and another business;

(n) the interior premises include at least one stationary drink preparation area. The premises may have more than one drink preparation area, including drink preparation areas on the patio/deck and moveable drink preparation areas, subject to department approval;

(o) there is interior access to any interior portion of the premises;

(p) all storage areas are located in the interior portion of the premises, except as authorized by 16-3-311 and 16-4-213, MCA;

(q) the physical layout and equipment utilized provide sufficient physical safeguards to prevent the self-service of alcoholic beverages at any drink preparation area; and

(r) self-service devices and vending machines are not used to serve alcoholic beverages.

(3) The premises may have a patio/deck. A patio/deck may be considered suitable only if:

(a) building, health, and fire code approval is obtained;

(b) subject to the exception in (c), the patio/deck is contiguous with and immediately accessible from the interior premises;

(c) any path connecting the interior premises and the patio/deck is under the possessory interest of the licensee, is clearly marked, and the department determines that sufficient physical safeguards are in place to ensure proper service and consumption of alcoholic beverages; and

(d) with the exception of a patio/deck at a golf course, a perimeter barrier clearly marks where the service and consumption of alcoholic beverages are allowed.

(4) The premises must meet and maintain compliance with all suitability standards in place at the time the premises are inspected. The department may, at any time, verify that the premises remain in compliance with all suitability standards in place at the time the suitability of the premises was last determined. Upon determining that the premises do not meet all applicable suitability standards, the department may deny an application or take administrative action against a licensee, including license revocation.

(5) The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department. The licensee shall follow the process in ARM 42.13.106 for a premises alteration.

(1) The department shall determine the suitability of the premises where a restaurant beer and wine retailer proposes to operate a license when a party applies to obtain a license, transfer ownership interest in an existing license requiring the vetting of a new party pursuant to 16-4-401, MCA, change the location where a license will be operated, or make alterations to a premises with a floor plan that the department approved.

(2) The premises of a restaurant beer and wine retailer may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) a single alcoholic beverage license of any kind will be operated at the premises;

(d) the premises are identified by a unique address;

(e) the premises are located in one building or a specific portion of one building, except that a patio/deck may extend the premises beyond the interior portion of the building. The interior portion of the premises must comply with the requirements of 16-3-311(3), MCA. Subject to the exceptions in 16-3-311(8) and (9), MCA, if the premises are located in a portion of a building, the premises must be separated by permanent floor-to-ceiling walls from any other business, including any other business operated by the licensee.  Except as provided in 16-3-311(8) and (9), MCA, the only access from the premises to another business may be through a single lockable door, no more than six feet wide, in the permanent floor-to-ceiling wall. Additional lockable doors in the permanent floor-to-ceiling wall may be allowed only upon department approval;

(f) building, health, and fire code approval is obtained;

(g) the premises are located on regular police beats and can be properly policed by local authorities, which includes the premises being located on property to which law enforcement has unrestricted access;

(h) the premises are not located where a local government ordinance prohibits the sale of alcoholic beverages;

(i) the type of business is readily determinable due to indoor and outdoor signage and the premises' general layout and atmosphere;

(j) alcoholic beverages are advertised and displayed as being available for purchase;

(k) there are no signs, posters, or advertisements displayed on the exterior portion of the premises that identify any brewer, beer importer, or wholesaler in any manner. This prohibition extends to buildings adjacent to the premises only if the retailer has possessory interest in the building. This prohibition does not apply to temporary advertisements allowed under 16-3-244, MCA;

(l) the floor plan accurately states the dimensions of the premises, includes the entity name, alcoholic beverage license number, physical address, submission date, and identifies all service areas, service bars, dining room, kitchen, storage areas, patios/decks, perimeter barriers, drive-through windows, and permanent floor-to-ceiling walls required between the premises and another business;

(m) there is seating for patrons totaling not more than the seating capacity for which the premises are licensed;

(n) there is an interior service bar. The premises may have more than one service bar, including service bars on the patio/deck, subject to department approval;

(o) there is interior access to any interior portion of the premises;

(p) all storage areas are located in the interior portion of the premises, except as authorized by 16-3-311, MCA;

(q) the physical layout and equipment utilized provide sufficient physical safeguards to prevent the self-service of alcoholic beverages at any service bar; and

(r) self-service devices and vending machines are not used to serve alcoholic beverages.

(3) The premises may have a patio/deck. A patio/deck may be considered suitable only if:

(a) building, health, and fire code approval is obtained;

(b) subject to the exception in (c), the patio/deck is contiguous with and immediately accessible from the interior premises;

(c) any path connecting the interior premises and the patio/deck is under the possessory interest of the licensee, is clearly marked, and the department determines that sufficient physical safeguards are in place to ensure proper service and consumption of alcoholic beverages; and

(d) a perimeter barrier clearly marks where the service and consumption of alcoholic beverages are allowed.

(4) The premises must meet and maintain compliance with all suitability standards in place at the time the premises are inspected. The department may, at any time, verify that the premises remain in compliance with all suitability standards in place at the time the suitability of the premises was last determined. Upon determining that the premises do not meet all applicable suitability standards, the department may deny an application or take administrative action against a licensee, including license revocation.

(5) The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department. The licensee shall follow the process in ARM 42.13.106 for a premises alteration.

(1) The department shall determine the suitability of the premises where an off-premises beer and table wine retailer proposes to operate a license when a party applies to obtain a license, transfer ownership interest in an existing license requiring the vetting of a new party pursuant to 16-4-401, MCA, change the location where a license will be operated, or make alterations to a premises with a floor plan that the department approved.

(2) The premises of an off-premises beer and table wine retailer may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) a single alcoholic beverage license of any kind will be operated at the premises;

(d) the premises are identified by a unique address;

(e) the premises are located in one building or a specific portion of one building. The interior portion of the premises must comply with the requirements of 16-3-311(3), MCA. If the premises are located in a portion of a building, the premises must be separated by permanent floor-to-ceiling walls from any other licensed alcoholic beverage business. The only access from the premises to another licensed alcoholic beverage business may be through a single lockable door, no more than six feet wide, in the permanent floor-to-ceiling wall. Additional lockable doors or a doorway larger than six feet wide in the permanent floor-to-ceiling wall may be allowed only upon department approval;

(f) building, health, and fire code approval is obtained;

(g) the premises are located on regular police beats and can be properly policed by local authorities, which includes the premises being located on property to which law enforcement has unrestricted access;

(h) the premises are not located where a local government ordinance prohibits the sale of alcoholic beverages;

(i) the premises are in a stand-alone beer and/or table wine business, a grocery store, or a drugstore licensed as a pharmacy;

(j) the type of business is readily determinable due to indoor and outdoor signage and the premises' general layout and atmosphere;

(k) alcoholic beverages are advertised and displayed as being available for purchase;

(l) there are no signs, posters, or advertisements displayed on the exterior portion of the premises that identify any brewer, beer importer, or wholesaler in any manner. This prohibition extends to buildings adjacent to the premises only if the retailer has possessory interest in the building. This prohibition does not apply to temporary advertisements allowed under 16-3-244, MCA;

(m) the floor plan accurately states the dimensions of the premises, includes the entity name, alcoholic beverage license number, physical address, submission date, identifies any storage areas, drive-through windows, and permanent floor-to-ceiling walls required between the premises and another licensed alcoholic beverage business;

(n) there is interior access to any interior portion of the premises; and

(o) all storage areas are located in the interior portion of the premises, except as authorized in 16-3-311, MCA.

(3) The premises must meet and maintain compliance with all suitability standards in place at the time the premises are inspected. The department may, at any time, verify that the premises remain in compliance with all suitability standards in place at the time the suitability of the premises was last determined. Upon determining that the premises do not meet all applicable suitability standards, the department may deny an application or take administrative action against a licensee, including license revocation.

(4) The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department. The licensee shall follow the process in ARM 42.13.106 for a premises alteration.

(1) The department shall determine the suitability of the premises of the principal place of business and any subwarehouse where a beer wholesaler and table wine distributor propose to operate a license when a party applies to obtain a license, transfer ownership interest in an existing license requiring the vetting of a new party pursuant to 16-4-401, MCA, change the location where a license will be operated, or make alterations to a premises with a floor plan that the department approved.

(2) The premises of a beer wholesaler and table wine distributor may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) a single alcoholic beverage license of any kind will be operated at the premises;

(d) the premises are identified by a unique address;

(e) building, health, and fire code approval is obtained;

(f) the premises are located in one building or a specific portion of one building. The interior portion of the premises must be a continuous area that is not broken by any area in which the applicant or licensee does not have adequate control, such as another business or a common area shared with other building tenants. If the premises are located in a portion of a building, the premises must be separated by permanent floor-to-ceiling walls from any other licensed alcoholic beverage business. The only access from the premises to another licensed alcoholic beverage business may be through a single lockable door, no more than six feet wide, in the permanent floor-to-ceiling wall. Additional lockable doors in the permanent floor-to-ceiling wall may be allowed only upon department approval;

(g) the floor plan accurately states the dimensions of the premises, includes the entity name, alcoholic beverage license number, physical address, and date and identifies any permanent floor-to-ceiling wall required between the premises and another licensed alcoholic beverage business;

(h) the premises include sufficient space for the storage and distribution of beer and/or table wine in large quantities;

(i) there is interior access to any interior portion of the premises; and

(j) all storage areas are located in the interior portion of the premises.

(3) The premises may include more than one building for storage and distribution purposes only if the property on which the buildings are located is contiguous and the licensee has possessory interest in the property on which the buildings are located. To seek approval, the licensee shall submit a form provided by the department. All buildings on the premises are subject to suitability requirements in (2).

(4) The premises must meet and maintain compliance with all suitability standards in place at the time the premises are inspected. The department may, at any time, verify that the premises remain in compliance with all suitability standards in place at the time the suitability of the premises was last determined. Upon determining that the premises do not meet all applicable suitability standards, the department may deny an application or take administrative action against a licensee, including license revocation.

(5) The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department. The licensee shall follow the process in ARM 42.13.106 for a premises alteration.

(1) The department shall determine the suitability of the premises where an alcoholic beverage manufacturer proposes to operate a license when a party applies to obtain a license, transfer ownership interest in an existing license requiring the vetting of a new party pursuant to 16-4-401, MCA, change the location where a license will be operated, or make alterations to a premises with a floor plan that the department approved.

(2) The premises of a manufacturer may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) a single alcoholic beverage license of any kind will be operated on the premises, except as authorized under an approved alternating proprietor arrangement;

(d) the premises are identified by a unique address;

(e) building, health, and fire code approval is obtained;

(f) the premises are located in one building or a specific portion of one building, except that a patio/deck may extend the premises beyond the interior portion of the building. The interior portion of the premises must comply with the requirements of 16-3-311(3), MCA. If the premises are located in a portion of a building, the premises must be separated by permanent floor-to-ceiling walls from any other licensed alcoholic beverage business, except as provided in 16-3-311(8) and (9), MCA. The only access from the premises to another licensed alcoholic beverage business may be through a single lockable door, no more than six feet wide, in the permanent floor-to-ceiling wall, except as provided in 16-3-311(8) and (9), MCA. Additional lockable doors in the permanent floor-to-ceiling wall may be allowed only upon department approval;

(g) the floor plan accurately states the dimensions of the premises, includes the entity name, alcoholic beverage license number, physical address, submission date, and identifies all manufacturing areas, storage areas, sample room, drink preparation areas, patios/decks, perimeter barriers, drive-through windows, and permanent floor-to-ceiling walls required between the premises and another licensed alcoholic beverage business, except as provided in 16-3-311(8) and (9), MCA;

(h) there is interior access to any interior portion of the premises;

(i) all storage areas are located in the interior portion of the premises;

(j) access by unauthorized persons to manufacturing areas is restricted; and

(k) it is readily determinable that a manufacturer operates at the premises due to outdoor signage and the existence of the equipment necessary to undertake the activities for which the premises are licensed.

(3) The premises may include more than one building for manufacturing purposes only if the property on which the buildings are located is contiguous and the licensee has possessory interest in the property on which the buildings are located. To seek approval, the licensee shall submit a form provided by the department and include verification that the Alcohol and Tobacco Tax and Trade Bureau approved the licensee's registration to operate any additional building under the manufacturer's existing federal permit or notice. All buildings on the premises are subject to the suitability requirements in (2).

(4) A domestic brewery may operate a warehouse on property that is not contiguous to property on which the manufacturing premises are located only if the warehouse is used exclusively for storage. To seek approval, the licensee shall submit a form provided by the department. A licensee may seek approval for more than one warehouse. Each warehouse must have a separate storage depot license. All warehouses are subject to the suitability requirements in (2) and must be equipped with refrigeration and cooling apparatus.

(5) A domestic distillery may operate a warehouse on property that is not contiguous to property on which the manufacturing premises are located only if the warehouse is used exclusively for storage. To seek approval, the licensee shall submit a form provided by the department and include verification that the Alcohol and Tobacco Tax and Trade Bureau approved the licensee's registration to operate the warehouse. A licensee may seek approval for more than one warehouse. Each warehouse must have a separate domestic distillery storage warehouse license. All warehouses are subject to the suitability requirements in (2).

(6) In addition to all other requirements, a manufacturer's premises with a sample room shall be considered suitable only if:

(a) there is a single contiguous sample room;

(b) the sample room is located in the interior portion of the premises;

(c) the sample room is not located in a storage warehouse;

(d) the sample room contains a drink preparation area. The premises may have more than one drink preparation area, including drink preparation areas on the patio/deck, subject to department approval;

(e) the physical layout and equipment utilized provide sufficient physical safeguards to prevent the self-service of alcoholic beverages at any drink preparation area; and

(f) self-service devices and vending machines are not used to serve alcoholic beverages.

(7) A manufacturing premises with a sample room may have a patio/deck. The patio/deck will be considered suitable only if:

(a) building, health, and fire code approval is obtained;

(b) the patio/deck is contiguous with and immediately accessible from the sample room, except where the department approves a path connecting the sample room and the patio/deck. The use of a path may only be approved if the licensee holds possessory interest in the path, the path is clearly marked, and the department determines that sufficient physical safeguards are in place to ensure proper service and consumption of alcoholic beverages;

(c) a perimeter barrier clearly marks where the service and consumption of alcoholic beverages is allowed; and

(d) the physical layout and equipment prevent the self-service of alcoholic beverages. This includes a prohibition against the service of alcoholic beverages through self-service devices and vending machines. Reach-in coolers and open shelving are prohibited unless they are located in a drink preparation area and the department determines that sufficient physical safeguards are in place to prevent the self-service of alcoholic beverages.

(8) The premises must meet and maintain compliance with all suitability standards in place at the time the premises are inspected. The department may, at any time, verify that the premises remain in compliance with all suitability standards in place at the time the suitability of the premises was last determined. Upon determining that the premises do not meet all applicable suitability standards, the department may deny an application or take administrative action against a licensee, including license revocation.

(9) The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department. The licensee shall follow the process in ARM 42.13.106 for a premises alteration.

(1) An all-beverage licensee or on-premises consumption beer licensee may host an industry trade show at the licensee's licensed premises or may cater an industry trade show pursuant to ARM 42.12.128. Alcoholic beverages provided at an industry trade show are limited by the hosting or catering licensee's type of license.

(2) For the purpose of this rule, an industry trade show means an event sponsored by a nonprofit association representing an alcoholic beverage industry, and where alcoholic beverages are provided to attendees for promotional purposes. An industry trade show shall not be open to the public. A nonprofit association may not sponsor more than two industry trade shows per year.

(3) All attendees of an industry trade show must be admitted by the event sponsor and must be a licensee, a person employed in the alcoholic beverage industry or a related industry, or are a family member or partner of such persons and may include public officers, candidates for public office, and public employees involved in the alcoholic beverage industry. A related industry includes but is not limited to gambling, food preparation, and other professional services provided to alcoholic beverages licensees.

(4) A vendor, as defined in ARM 42.11.105, with a current vendor permit, as provided in ARM 42.11.213, may request a trade show case from the department for use at an industry trade show. A trade show case means a case of product used by a registered vendor representative for promoting a vendor's products to attendees of an industry trade show. A product that has not been approved by the department may not be included in a trade show case. For the purposes of this rule, product means a liquor item identified by a unique identification number or stock-keeping unit.

(a) Except as provided in 16-4-311, MCA, the vendor must ship the trade show case to the state liquor warehouse at no charge to the department.

(b) In order for an industry trade show case to be removed from bailment at the state liquor warehouse, a vendor must submit a request electronically on a form provided by the department at least seven days prior to the requested ship date to the agency liquor store.

(c) A trade show case must be purchased by a registered vendor representative, as defined in ARM 42.11.211, from an agency liquor store at a cost of $12.00 per case.

(d) A vendor is limited to providing a maximum of nine thousand milliliters of each product per industry trade show.

(5) A beer manufacturer or a beer manufacturer's employees or agents who intend to provide beer at an industry trade show or a table wine manufacturer or the table wine manufacturer's employees or agents who intend to provide table wine at an industry trade show must purchase the beer or table wine from the licensee hosting the trade show for no more than the ordinary retail price.

(6) At the conclusion of an industry trade show, any remaining alcoholic beverages may be retained by the alcoholic beverage manufacturer or vendor, the alcoholic beverage manufacturer or vendor's employees, or registered vendor representatives for a future industry trade show; used for sampling purposes; or given to attendees of the industry trade show at the discretion of the alcoholic beverage manufacturer or vendor, the alcoholic beverage manufacturer or vendor's employees or registered vendor representatives.

(7) A licensee who hosts an industry trade show is ultimately responsible for ensuring compliance with all alcoholic beverage laws and regulations, violations of which may subject the licensee to administrative action.

(1) The department shall determine the suitability of the premises when a continuing care retirement community applies to obtain a limited all-beverage license provided in 16-4-315, MCA, changes the location where the license will be operated, or makes alterations to the department-approved premises. The privileges granted under a license extend only to the premises depicted in the floor plan approved by the department except on-premises consumption may extend across the continuing care retirement community's campus, as provided in 16-4-315, MCA.

(2) The continuing care retirement community premises may be considered suitable only if:

(a) the applicant or licensee has possessory interest in the premises;

(b) the applicant or licensee has adequate control over the premises;

(c) no other license authorized under Title 16, MCA, will be operated concurrently at the premises;

(d) the premises are identified by a unique address;

(e) the premises are located within one building or a specific portion of one building. The interior of the premises must be a continuous area that is not broken by any area in which the applicant or licensee does not have adequate control, such as another business or a common area shared with other building tenants;

(f) building, health, and fire code approvals are obtained;

(g) the premises are located on regular police beats and can be properly policed by local authorities, which includes the premises being located on property to which law enforcement has unrestricted access;

(h) the premises are not located where a local government ordinance prohibits the sale of alcoholic beverages;

(i) the premises complies with the licensing restrictions provided in 16-3-306, MCA;

(j) there are no signs, posters, or advertisements displayed on the exterior of the premises that identify any brewer, beer importer, or wholesaler in any manner. This prohibition extends to buildings adjacent to the premises only if the retailer has possessory interest in the adjacent building. This prohibition does not apply to temporary advertisements allowed under 16-3-244, MCA;

(k) the floor plan accurately states the dimensions of the premises, includes the applicant or licensee's name; alcoholic beverage license number, if applicable; physical address and date of application; and identifies the central dining area, any stationary drink preparation area, and any storage areas. A plat of the continuing care retirement community campus must also be provided to the department that shows the campus boundaries and any other structures located on the campus;

(l) the interior of the premises includes at least one stationary drink preparation area. The central dining area may have more than one drink preparation area, including moveable drink preparation areas, subject to department approval;

(m) all storage areas are located in the interior of the premises;

(n) alcoholic beverages will not be sold through a drive-up window;

(o) the physical layout and equipment utilized provide sufficient physical safeguards to prevent the self-service of alcoholic beverages at any drink preparation area; and

(p) self-service devices and vending machines are not used to serve alcoholic beverages.

(3) The premises must meet and maintain compliance with all suitability standards in place at the time the premises was last approved by the department. The department may, at any time, verify that the premises remain in compliance with those suitability standards. Upon determining that the premises does not meet all applicable suitability standards, the department may deny an application or take administrative action against the licensee, including license revocation.

(4) The licensee shall follow the process in ARM 42.13.106 for a premises alteration. Alterations to residential areas or other areas where alcoholic beverages are not sold or served from do not require submittal or approval from the department.

(5) In addition to all other alcoholic beverage licensing requirements, a limited all-beverages continuing care retirement community licensee shall:

(a) only purchase and possess on the premises liquor and fortified wine from an agency liquor store, beer from a beer wholesaler or brewery, and table wine from a table wine distributor or winery, except for alcoholic beverages obtained elsewhere by residents of the continuing care retirement community for consumption in residential areas;

(b) sell or serve alcoholic beverages only from an approved drink preparation area;

(c) prevent the sale or service of alcoholic beverages between 8 p.m. and 11 a.m.;

(d) prevent the consumption or possession of alcoholic beverages outside of residential areas between 2 a.m. and 11 a.m. by removing all alcoholic beverages from individuals' possession by 2 a.m.;

(e) prevent the consumption or possession of alcoholic beverages on the premises by persons who are under 21 years of age, or actually, apparently, or obviously intoxicated, in accordance with 16-3-301, MCA; and

(f) prevent the on-premises consumption of alcoholic beverages not sold or provided at the premises except for alcoholic beverages obtained elsewhere by residents of the continuing care retirement community for consumption in residential areas.

(1) The use of a noncontiguous alcoholic beverage storage area by a retail licensee is permissible, as provided in 16-3-311, MCA. 

(2) The use of a resort alternate alcoholic beverage storage facility is permissible, as provided in 16-4-213, MCA.

(3) A noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility must only be used for the storage of alcoholic beverages and must have adequate physical safeguards to prevent access by individuals other than the licensee or their employees.

(4) A licensee must submit the following to the department via its online licensing portal for approval of either a noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility:

(a) a completed noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility request form, as applicable;

(b) the application fee provided in 16-3-311 or 16-4-213, MCA;

(c) a copy of the floor plan for a noncontiguous alcoholic beverage storage area or the resort site plan and floor plan for a resort alternate alcoholic beverage storage facility;

(d) documentation of the licensee's possessory interest in the noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility;

(e) documentation demonstrating that a noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility meets the requirements of 16-3-311 and 16-4-213, MCA, as applicable, and (3);

(f) evidence of approvals from state or local officials that the premises meet building, health, and fire code requirements, as required by state or local law; and

(g) any additional documentation the department deems reasonably necessary in order to approve the licensee's request.

(5) Upon its acceptance and review of a licensee's submissions in (4), the department will arrange an inspection of a noncontiguous alcoholic beverage storage area or a resort alternate alcoholic beverage storage facility and will review the inspection findings.

(6) The department will notify the licensee, in writing, of the department's approval or denial of the noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility.

(7) Upon approval, a licensee's license will be updated to reflect the location of the noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility. The licensee must display a copy of the license in a prominent place at the noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility.

(8) No alcoholic beverages may be stored by the licensee at the noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility prior to receiving department approval.

(9) The selling, giving away, or consumption of alcoholic beverages at a noncontiguous alcoholic beverage storage area or resort alternate alcoholic beverage storage facility is prohibited.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(2) If an alcoholic beverages license is owned by joint tenants with right of survivorship, it may be reissued in the name of the surviving joint tenant or tenants, upon presentation of proof of death of the decedent joint tenant or tenants. In all other cases, upon the death of a licensee it is necessary to apply for transfer of ownership of the license as provided by 16-4-204 and 16-4-404 , MCA.

(1) All-beverages and on-premises beer licenses may be subject to a mortgage, security interest, and other valid lien. Upon written request to the department, accompanied by a copy of the note or mortgage, security agreement, or other loan document (in which the license or licenses to be affected are described with common certainty such as inclusion of license number), together with a fee as required in ARM 42.12.111, the department will add the name of the mortgagee, secured party, or other lien holder, which must be endorsed upon the license. All such requests shall be upon forms prescribed by the department and signed in each case by the licensee and the mortgagee, secured party, or other lien holder.

(2) No transfer of any license subject to any mortgage security interest, or other lien shall be approved unless the mortgagee, secured party, or lien holder shall subscribe and acknowledge the instrument of assignment. If the mortgagee, secured party, or lien holder is deceased, or otherwise unavailable, the instrument of assignment may be subscribed and acknowledged by the personal representative, heir, devisee, or other person upon providing sufficient proof that the person has authority to act on behalf of the estate or has otherwise received the right to the security interest or lien.

(3) At such time as any mortgage, security interest, or lien affecting any license has been satisfied and fulfilled, the name of the mortgagee, secured party, or lien holder shall be removed upon written request of all parties in interest. If the mortgagee, secured party, or lien holder is deceased, or otherwise unavailable, the written request may be made by the personal representative, heir, devisee, or other person upon providing sufficient proof that the person has authority to act on behalf of the estate or has otherwise received the right to the security interest or lien. Any name of a mortgagee, secured party, or lien holder may also be removed upon the written request of the licensee or applicant for the license if accompanied by a court order releasing the security interest or lien, or other sufficient proof showing that the security interest or lien has expired, been discharged, or otherwise extinguished.

(4) Alcoholic beverage licenses may be subject to security interests as defined in 30-1-201, MCA, and other valid liens. The perfection of a security interest or other lien in an alcoholic beverages license does not depend upon filing with the department, but rather by the statutory requirements, which apply to the particular security interest or lien. If a secured party or a lien creditor, as defined in 30-9A-102, MCA, desires to give additional public notice, he may do so by filing a claim of security interest or other lien with the department. The department acts only as an additional source of public notice for voluntarily filed claims of security interest and other liens. The licensee must be the debtor. A loan guarantee by a licensee does not establish a valid security interest or lien by the lender under this rule.

(5) The consent of a secured party or a lien creditor is not required by the department to transfer a license. Persons who have filed a claim of a security interest or lien will be given notice by the department of any application for transfer of the license.

(6) Upon written request to the department, together with a fee as required in ARM 42.12.111, the name of a person claiming a security interest shall be endorsed upon the license and shall be kept on file with the department. All such requests shall be upon forms prescribed by the department and signed in each case by the licensee and the person claiming the security interest.

(7) The name of a lien creditor shall not be endorsed upon the license. However, upon written request to the department, the department shall keep the name of the lien creditor on file. The request must be accompanied by sufficient proof of perfection of the lien claimed. No fee is required.

(8) Any notice of security interest or other lien may be deleted from the department's file upon written request of the secured party or lien creditor on forms prescribed by the department. If the secured party or lien creditor is deceased, or otherwise unavailable, the written request for deletion may be made by a personal representative, heir, devisee, or other person upon providing sufficient proof that the person has authority to act on behalf of the estate or has otherwise received the right to the security interest or lien. Any notice of security interest or other lien may also be deleted from the department's file upon the written request of the licensee or applicant for the license if accompanied by a court order releasing the security interest or lien, or other sufficient proof showing that the security interest or lien has expired, been discharged, or otherwise extinguished.

(9) A security interest or other lien may be foreclosed upon in any manner provided by law. In nonjudicial foreclosures, the department will require sufficient documentation that the proper foreclosure proceedings were followed, pursuant to 16-4-801, MCA. Purchasers of a license at a foreclosure sale must apply to the department for transfer of the license and are subject to all statutes and rules required of any other applicant.

(10) Sections (1) through (3) will apply to all security interests and liens filed with the department prior to September 1, 1990. Beginning September 1, 1990, (4) through (9) will apply to all new security interests and liens filed with the department.

(1) A license issued under the provisions of Title 16, chapter 4, parts 1 through 5, MCA, is a privilege personal to the licensee, and in no case shall the licensee lease the license to any other person.

(2) Golf course beer and wine licenses owned by the state, a unit of the university system, or a local government, fairground complex beer and wine licenses owned by a political subdivision of the state, and airport all-beverages licenses are exempt from this rule.

(3) The lessee of the licenses in (2) are required to qualify under 16-4-401, MCA.

This rule has been repealed.

(1) The department may grant an applicant temporary operating authority, as provided in 16-4-404, MCA, only for the transfer of ownership of a license. The applicant must submit an application meeting the requirements of ARM 42.12.101 and intend to operate the licensed business pending final approval. The department may not grant temporary operating authority on an application for an original license or when there is a proposed change of location.

(2) The granting of temporary operating authority is neither a temporary license nor a permit. It does not constitute a transfer of ownership, nor does it guarantee that the department will grant the application if it finds, subsequent to receipt of a complete investigation report, that the applicant is not qualified to hold a license or the premises are not suitable for the operation of the business.

(3) Temporary operating authority will be issued for a 45-day period. If the application is not approved within this period, the department shall extend temporary operating authority for another 45-day period only upon determining that the cause of the delay was not attributable to the applicant. The department shall notify the applicant if it requires additional information to make this determination and the applicant shall have seven days to submit written verification documenting to the department's satisfaction how the delay was beyond the applicant's control. The department shall notify applicants whether temporary operating authority is extended beyond the initial 45-day window.

(4) The recorded owner of the license must resume operation of the business conducted under the license in cases where the temporary operating authority has expired and cannot be extended.

(5) Temporary operating authority will be immediately revoked if the applicant to whom temporary operating authority was granted, or the applicant's employees, violate any provisions of Title 16, MCA, or department rules. Such violations may affect the final decision of the department.

(6) Any proposed fine, suspension, or revocation arising out of a violation will be assessed against, and is the responsibility of, the recorded owner of the license.

(1) An ownership interest may be transferred to another qualified person only pursuant to means legally authorized for the transfer of personal property in Montana, such as when the person:

(a) is a purchaser upon a bona fide sale;

(b) is the personal representative of the estate of a deceased licensee;

(c) has a security interest in a license being foreclosed;

(d) is gifted the license and the donor completely transfers ownership interest, as provided in Title 70, chapter 3, part 1, MCA; or

(e) is appointed receiver under the license receivership.

(2) Except as allowed in ARM 42.12.118, an ownership interest may not be transferred until an application reflecting the proposed transfer is submitted to the department and the department approves the application.

(3) A current ownership interest of less than 15 percent may not be increased to 15 percent or more until an application reflecting the proposed increase is submitted to the department and the department approves the application.

(4) The application process in ARM 42.12.101 shall be followed unless an abbreviated application is authorized by ARM 42.12.118.

(5) The department shall make a thorough investigation as to the qualifications of the applicant and the suitability of the premises proposed for licensing. The department must determine that the transferred ownership interest will be independently exercised by the new owner and will not remain under the control of the transferor before approving the transfer.

(6) The department shall not approve an application for a transfer of ownership interest where the current owner is not current on the filing or payment of Montana state taxes or liquor fees, fines, or penalties.

(7) Prior to the department granting written approval:

(a) a certificate, stock, or other evidence of the proposed ownership interest may not be registered in the licensee's records; and

(b) earnest money may be paid to the license seller, not to exceed five percent of the license purchase price, but any additional funds or other consideration for the license or alcoholic beverage inventory may not be exchanged unless:

(i) temporary operating authority is granted, but any consideration other than earnest money must be returned to the buyer in the event the application is not approved; or

(ii) the consideration is held in escrow.

(8) The provisions of this rule do not apply to the:

(a) transfer of a security interest in a license;

(b) addition of an individual or entity as a less than 15 percent owner;

(c) death of a licensee (ARM 42.12.204 applies); or

(d) foreclosure of an ownership interest (ARM 42.12.211 applies).

(9) Any person or entity that is not a licensee is prohibited from controlling or participating in the licensed operation in any capacity reflecting an ownership interest. A licensee's allowance of an undisclosed ownership interest shall constitute a violation and may subject the licensee to administrative action, including revocation of the license.

(10) The department, in its sole discretion, may waive an application requirement set forth in this rule.

(11) The buyer of the license can acquire the seller's alcoholic beverage inventory when either temporary operating authority has been granted to the buyer pursuant to ARM 42.12.208 or the transfer of the license to the buyer has been approved by the department.

(1) A transaction under a bona fide sale is complete only if the department receives an application for a license submitted pursuant to ARM 42.12.101, and the department approves the application pursuant to 16-4-402, MCA, and this rule.

(2) An application will not be approved if the sale transaction:

(a) provides for a person other than the applicant to have an option to purchase the license;

(b) involves an escrow agent, unless the parties are required to report to the department all changes or assignments to the original escrow agreement within 30 days of the change;

(c) involves a loan from a noninstitutional lender or a loan guarantor, unless the loan from a noninstitutional lender has been approved in writing by the department, but this does not preclude a qualified owner of a license from lending money to the business operated under the license or from individually guaranteeing a debt incurred by the business operated under the license;

(d) involves a lessor of the licensed premises who is not qualified to own the license being applied for, unless the department approves in writing;

(e) involves an applicant who is or will be the manager of an associated business if the associated business is owned or controlled by a person who is not qualified to own the license being applied for, unless the department approves in writing; or

(f) involves any business relationship, with respect to the proposed alcoholic beverages business, with a person who is not qualified to own the license being applied for, unless the department approves in writing.

(3) An option to purchase represents an impermissible interference with the licensee's ability to control and operate the license. Such an option, with or without conditions, is prohibited because it constitutes an additional ownership interest in the license.

(1) A transfer of a license resulting from a foreclosure on a security interest requires an application to transfer the license to the secured party, if the secured party intends to operate the license, pursuant to ARM 42.12.101. This transfer is subject to the department's approval of the application pursuant to 16-4-402 , MCA, and this rule.

(2) A transfer of a license resulting from a foreclosure on a security interest requires the filing of documents evidencing the foreclosure if the secured party does not intend to operate or does not meet the requirements to hold the license pursuant to 16-4-401 and 16-4-801 , MCA. The documents must include either the defaulting party's written acknowledgment of default, evidence that a nonjudicial sale by the secured party has been made pursuant to the Uniform Commercial Code, or a court order foreclosing the defaulting party's interests in the license. Based on the foreclosure documents, the transfer may be approved pursuant to ARM 42.12.205. A foreclosing secured party may retain ownership of the transferred license in nonuse status for a period of no more than 180 days, and may, upon showing of good cause, receive one extension of 180 days. If the license has not transferred to a qualified purchaser within the time allowed, the license will be revoked.

(1) The department will further evaluate a designated loan to determine if the transaction is in reality a loan or an ownership interest. A review of the transaction will be conducted by using standards found either in the Uniform Commercial Code, the Internal Revenue Code, or standards which are in accordance with generally accepted commercial lending practices.

(2) The department will decline to find a loan arrangement where the money borrowed has not been returned when due and alternate arrangements have not been memorialized in a written contract. Such an extended financial arrangement must be documented and available to the department.

(3) The department will require any noninstitutional lender to complete documents authorizing examination and release of information, a personal history statement, and fingerprint cards on forms provided by the department, as well as any contract, purchase agreement, or other documents from the lender deemed necessary to assess the suitability of an applicant's source of funding as required in 16-4-401, MCA.

(a) A loan agreement may not restrict the movement or transfer of a license.

(b) Cross collateralization language is unenforceable as it relates to loans secured by the liquor license as collateral.

(c) In the event of default, the lender's rights are protected under 16-4-801, MCA. Upon default, the license must be placed on nonuse status pending transfer to a qualified purchaser or temporary operating authority. The lender is prohibited from leasing the collateral.

(4) Institutional lenders may secure loans made to a license applicant or licensee with security interests in assets belonging to the license applicant or licensee. In securing institutional loans with security interests in the assets of a license applicant or licensee, an institutional lender may limit the movement of the assets, including a liquor license.

(5) For loans made to a license applicant or licensee, an institutional lender may require loan guarantees and may secure guarantee agreements with assets of the guarantor.

(6) A guarantor may make a payment on an institutional loan secured by a license, regardless of whether the institutional lender has exhausted its remedies against the licensee, and such payment will not cause an undisclosed ownership violation for the licensee, only if the following are applicable:

(a) the guarantor must be an owner of applicant/licensee, i.e., partner, shareholder, member;

(b) the payment is made with the owner/guarantor's own funds or funds borrowed from an institutional source or department-approved noninstitutional source;

(c) if the guarantor is not an owner, payment may only be made as a loan to the owners or licensed borrower/entity. Funds used to loan the money for the payment under the guarantee, must be the guarantor's own funds or funds borrowed from an institutional source. The guarantor must first be found by the department to be suitable as a source of credit as part of the application or loan approval process by submitting to the department a personal history statement and a complete set of fingerprint cards;

(d) a licensee having a loan secured by its license, and for which a loan guarantor has made payments on such loan on behalf of the licensee, must notify the department within 30 days of the guarantor's payment or on the date on which the licensee's renewal application is due, whichever occurs first, whether the payments made under a loan guarantee agreement have been elected to be treated as loans, as paid in capital, or as other equity contributions; and

(e) if the guarantor elects to treat the payments as loans to the licensee, the licensee must follow requirements for disclosing noninstitutional lenders.

(7) If the guarantor elects to treat payments as an equity contribution, and such election changes the percentage of ownership in the license, the licensee must notify the department at the time of the election to disclose the change in percentage.

(8) Prior department approval is not required on loans to a licensed entity by an approved (licensed) owner of the entity (shareholder, member, partner) under the following conditions:

(a) the loan is used to meet an obligation of the licensed entity that cannot be met with its existing operating accounts and reserves;

(b) the funds loaned to the licensed entity must be those of the owner or funds borrowed from an institutional source;

(c) the loan must be memorialized by an agreement between the licensed entity and owner. The loan agreement must meet the department's evaluation standards;

(d) the borrower's and lender's financial records must accurately reflect the transaction; and

(e) failure to maintain adequate records of the transaction or source of funds loaned will be considered a violation of this rule.

This rule has been repealed.

This rule has been repealed.

(1) When any alcoholic beverages license is suspended or revoked by the department, the department shall cause a notice to be posted on the inside of the licensed premises so that the notice can be seen from the outside, stating that the license has been suspended or revoked. The notice must identify the number of the license, the name of the licensee, the reason for the suspension or revocation, and the period of suspension. The suspension or revocation notice issued by the department must be dated and signed. The notice must be posted at all times during the period of suspension. In the case of a revocation, the notice must be posted on the premises for a period of 10 days. If the notice is removed or caused to be removed by the licensee or any employee of the licensee during a period of suspension, the license shall be permanently revoked and the licensee must be so notified in writing at the time the notice is posted. The license or licenses suspended will be held by the department during the period of suspension. The department may waive the notice and posting requirements for revocations provided in this rule.

(2) A revoked or lapsed license affects a license quota area as follows:

(a) if an action against the license causes the creation of the last remaining license for that license type in the quota area, the department shall publish the availability of a retail alcoholic beverage license in accordance with ARM 42.12.502; or

(b) if the number of licenses issued for a quota area exceeds statutory limitations, the license will cease to exist and the department will adjust the license quota accordingly.

(3) If a revoked or lapsed beer license originally issued within an incorporated city quota area before October 1, 1997, is reinstated, the license may not be used for premises where gambling is conducted.

(1) The issuance of resort all-beverages licenses pursuant to 16-4-213, MCA, is governed by all other applicable provisions of Title 16, MCA, and the rules of the department.

(2) Other non-resort licenses are allowed within a defined resort area and such licenses are not considered for purposes of determining the number of allowable resort all-beverages licenses.

(3) A resort all-beverages licensee may deliver alcoholic beverages to guests staying in accommodation units, as provided in 16-4-213, MCA, after obtaining department approval and paying the statutory application fee.

(4) A non-resort on-premises consumption licensee may deliver alcoholic beverages anywhere within the resort area if the licensee has complied with the delivery endorsement requirements of ARM 42.13.1102, 42.13.1103, or 42.13.1105, as applicable.

The following definitions apply to this subchapter:

(1) "Conduct" means to develop, direct, manage and control the event.

(2) "Consideration" means the receiving of money or other compensation for providing a service, such as a charge for admission or other refreshments at the event where alcoholic beverages are provided.

(3) "Enclosure" means an area with definable boundaries including, but not limited to, a fair grounds or baseball stadium grounds.

(4) "Fortified wine" means wine that contains more than 16 percent, but not more than 24 percent, of alcohol by volume. Fortified wine constitutes liquor for distribution purposes.

(5) "Ordinary retail price" means the everyday price established by the retailer for the sale of alcoholic beverages to consumers. For distilled spirits and fortified wine, the price cannot be less than the department's posted price.

(6) "Resort area" means a location in Montana developed for the primary purpose of providing a suitable location and the necessary facilities where the general public may engage in recreational activity. Recreational activity includes hiking, skiing, boating, swimming, horseback riding, and golfing. It does not include such activities as shopping, movie-going, dining, and sight-seeing.

(7) "Structure" means the buildings and facilities constructed within the recreational development to house the alcoholic beverage service, and facilities constructed for use in recreational or sporting activity.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) A developer or landowner seeking a resort area designation shall submit to the department, at its sole expense:

(a) a completed application for resort area determination;

(b) a plat or master plan of the resort area;

(c) details of the recreational resort facilities that are or will be within the resort area, as that definition is described in ARM 42.12.302;

(d) processing fees as provided in ARM 42.12.111;

(e) an appraisal from an appraiser, as defined in 37-54-102, MCA, which provides a detailed analysis of the current actual valuation of the resort or recreational facilities, including land and improvements, of not less than $1 million, at least half of which valuation must be for a structure or structures within the resort area; and

(f) any other reasonably necessary documents for the department to reach a final decision.

(2) If the documents in (1) are not provided, the department will notify the developer or landowner of the missing items and request submission prior to the hearing date.

This rule has been repealed.

This rule has been repealed.

(1) Beer or wine tastings must be conducted by an on-premises consumption retail licensee, special permittee, or an on-premises consumption retail licensee with catering endorsement.

(2) In no case can a table wine distributor, a beer wholesaler, a winery/wine importer or a brewer/beer importer sponsor a wine or beer tasting other than at:

(a) a licensed retail premises that permits on-premises consumption except for a domestic winery as allowed under 16-3-411, MCA;

(b) a domestic winery as allowed under 16-3-411, MCA;

(c) a brewery as allowed under 16-3-213, MCA;

(d) a special event with a special permit; or

(e) a catered premise from an on-premises consumption retail licensee with a catering endorsement.

(3) A wine distributor, a beer wholesaler, a wine importer, or a beer importer sponsoring a tasting:

(a) must purchase the products to be used for the tasting from the on-premises consumption retail licensee, special permittee, or an on-premises consumption retail licensee with catering endorsement at the ordinary retail price; and

(b) can participate only by providing advice or information about the products.

(4) A winery or brewer sponsoring a tasting is required to comply with (3). In addition, the winery or brewer can participate in serving the product.

(5) An off-premises retail licensee may only participate in a wine tasting conducted by an on-premises consumption retail licensee by providing advice or information about the products. The off-premises consumption licensee may take orders for products to be picked up and paid for at the off-premises consumption licensee's premises.

(6) All beer and wine provided to the public at a tasting conducted by an on-premises consumption licensee must be purchased by the on-premises consumption retail licensee from a licensed table wine distributor, beer wholesaler, brewery, or winery. Beer and wine must be served by the on-premises consumption licensee with the exception of beer and wine manufacturers. Beer or wine may not be provided by another retail licensee.�

(7) This rule shall not apply to beer or wine tastings which are held in a private home wherein no consideration, remuneration, contribution, donation, gift, or any other money or thing of value is solicited or charged for entry or attendance and which do not violate the provisions of 16-6-306, MCA. In addition, the rule does not apply to industry sampling where alcoholic beverage product samples are provided by the manufacturer or distributor of the products to a licensed distributor or retailer solely for the purpose of soliciting sales of the product to such distributors or retailer.

This rule has been repealed.

(1) An establishment desiring to sell sacramental wine pursuant to 16-4-313, MCA, may apply to the department by submitting a license application accompanied by a $100 licensing fee. The license renewal fee every year thereafter is $50 and must be renewed annually by July 1.

(2) An applicant must qualify for licensure under 16-4-401, MCA.

(3) On the application, an applicant operating in Montana must verify that the following requirements are met:

(a) the layout of the premises allows for licensee-only and/or employee-only control over the sale, service, and/or distribution of the sacramental wine;

(b) the floor plan accurately represents the physical layout of the premises and identifies where the sacramental wine will be stored;

(c) the applicant has adequate safeguards in place to prevent the sale, delivery, or giving away of alcoholic beverages to the public; and

(d) the premises is physically separated from any business under separate ownership from the licensed area by permanent walls.

(4) Applicants for a sacramental wine license are not subject to fingerprint or background checks.

(5) This type of license is nontransferable and not subject to the quota system as described in 16-4-105, MCA.

(6) A sacramental wine licensee may purchase sacramental wine from an agency liquor store, licensed foreign winery, licensed domestic winery, or a table wine distributor.

(7) Licensees must adhere to all laws and rules relating to the retail sale of wine for off-premises consumption.

(1) Sacramental wine may be sold in Montana only in conformity with the guidelines provided in (2) through (6) of this rule.

(2) Sacramental wine licensees may sell sacramental wine containing up to 24 percent alcohol by volume to officials of churches or other religious organizations.

(3) Registered foreign wineries may sell sacramental wine containing up to 24 percent alcohol by volume to licensed table wine distributors.

(4) Licensed foreign wineries may sell sacramental wine containing not more than 16 percent alcohol by volume to licensed retailers and sacramental wine containing not more than 24 percent alcohol by volume to table wine distributors and sacramental wine licensees.

(5) Licensed domestic wineries may sell sacramental wine containing not more than 16 percent alcohol by volume to licensed retailers and sacramental wine containing not more than 24 percent alcohol by volume to table wine distributors and sacramental wine licensees.

(6) Table wine distributors may sell sacramental wine containing not more than 16 percent alcohol by volume to licensed retailers and sacramental wine containing not more than 24 percent alcohol by volume to sacramental wine licensees.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) A special permit issued pursuant to 16-4-301, MCA, entitles the holder to sell and serve beer and/or table wine at retail only at a booth, stand, or other fixed place of business within the exhibition enclosure, confined to specified premises or designated areas, described in the application and approved by the department. A holder of any such permit, or his agents or employees may also sell and serve beer in the grandstand or bleacher.

(2) A special event may only last for a maximum of three days except that each permit holder may have one special event per year that lasts up to seven days for a fair if it is a county, state, or regional fair that occurs no more than once per year, is held on a publicly-owned fairgrounds, and is officially sanctioned by a government entity.

(3) Special permits issued under 16-4-301, MCA, entitle the holder to sell and serve liquor, beer, and/or table wine at retail only within the hall or building described in the application. A holder of a special permit, the holder's agents, or employees may not sell liquor, beer, and/or table wine to persons other than members of the permittee organization and their bona fide guests. Where posts of nationally chartered veterans organizations or lodges of a recognized national fraternal organization do not own or maintain a permanent post, lodge building, or hall, the department may issue a special permit to the organization for use at premises where the post or lodge regularly meet to conduct its meetings or community related events.

(4) Beer wholesalers and table wine distributors shall not:

(a) allow their employees to assist a special permittee or catering permittee in the sale of beer and/or table wine, except for setting up equipment for sale and service of beer or table wine; or

(b) sell beer and/or table wine to a special permittee or catering permittee on a consignment basis.

(5) A special permittee or catering permittee may use portable equipment furnished by a wholesaler in accordance with 16-3-241, MCA.

(1) A special permit application must be completed and approved by the department when requesting the ability to sell beer and wine to patrons attending a special event. The holder of a special permit must abide by all applicable laws governing the retail sale of beer and wine for on-premises consumption.

(2) The length of time for which a special permit can be issued is determined by the fact that there is an outcome, conclusion or result. For example, the winner of a baseball tournament or the end of a concert.

(3) An applicant for a special permit cannot have an ownership interest in a manufacturer, importer, bottler or distributor of alcoholic beverages or ownership in an agency liquor store.

(4) Any on-premises consumption retail licensee entitled to a catering endorsement will not be issued a special permit, except for veteran and fraternal licensees as provided for in 16-4-301, MCA.

(5) Only one permit is required for multiple locations where beer and wine are sold within the enclosure where the event is held. All locations must be described on the permit application. A copy of the permit must be posted at each location.

(6) A special permit cannot be issued to a location where another permit or license is issued.

(7) Private parties where no money or other consideration is exchanged such as weddings or office parties are not required to obtain a special permit.

(8) A special permit is subject to the provisions of 16-3-306, MCA, unless the entities in 16-3-306, MCA, provide the department with advanced written approval.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

The following definitions apply to this subchapter:

(1) "Bidder" means an individual or business entity.

(2) "Competitive bid form" means an electronic form provided by the department and submitted by a bidder, to enter a competitive bidding process.

(3) "Competitive bidding" means a process to select a bidder to submit an application for licensure.

(4) "Irrevocable letter of credit (ILOC)" means a letter of credit between a financial institution and a bidder, in accordance with Title 30, chapter 5, MCA, in which the issuing financial institution guarantees:

(a) the bidder's payment of a stated bid amount;

(b) the ILOC will be irrevocable for a minimum of one year from the date of the competitive bidding closing if the bidder's bid is the highest bid submitted for the available license;

(c) the department is named as beneficiary of the ILOC; and

(d) the financial institution will not modify the ILOC without the department's consent if the bidder's bid is the highest bid submitted for the available license.

(5) "Minimum bid amount" means the lowest acceptable bid amount. The minimum bid amount shall be set by the department at 75 percent of the market value of licenses of the same type and privileges that have sold within the quota area or similar quota area.

(6) "Pivotal straight line" means a line that is created from the center point of two overlapping incorporated cities' or incorporated towns' boundaries and extends outward in a manner that separates the two quota areas as close to equidistant as possible.

(1) The department shall publish the availability of a retail alcoholic beverage license, that is subject to the quota limitations in 16-4-105, 16-4-201, or 16-4-420, MCA, when:

(a) a new license becomes available in a quota area in which a license of the same type is not currently available in the quota area;

(b) the opportunity to transfer a license into a quota area becomes available in which a license of the same type is not currently available in the quota area; and

(c) the lapse, revocation, or issuance of a license within the quota area in which the license is located has created the last remaining license for that license type in the quota area; and

(d) the department's denial of an application for licensure or the applicant's withdrawal of an application for licensure has created the last remaining license for that license type in the quota area.

(2) No more than one license per license type per quota area may be published per calendar year until the quota has been reached for licenses that became available due to the separation of combined quota areas.

(3) The department shall publish the availability of the license once a week for four consecutive weeks in the newspaper of general circulation in the quota area. The publication notice shall include:

(a) the type of license(s) available;

(b) the reason for the availability;

(c) the instructions for submitting a competitive bid form;

(d) the minimum bid amount; and

(e) that the department will use a competitive bidding process for determining who is granted the opportunity to apply for licensure.

(4) The department has the right to cancel or amend a competitive bidding process at any time. If a competitive bidding process is cancelled, the department shall notice the availability of the license, if applicable, in a future publication.

(1) Competitive bid forms must be submitted electronically to the department.

(2) The deadline to submit a bid is ten business days from the date of the last publication notice required in ARM 42.12.502(3).

(3) The department shall notify the highest bidder, in writing, if any deficiencies exist on the highest bidder's bid form. The highest bidder shall have the opportunity to correct any deficiencies by submitting a revised bid form within five business days of being notified.

(4) A bidder will be disqualified from the competitive bidding process if:

(a) the competitive bid form is not received on or before the deadline;

(b) any individual listed as an owner, partner, member, officer, or director is younger than 19 years of age at the time of the competitive bid closing;

(c) the bidder's bid amount is less than the minimum bid amount;

(d) the bidder fails to include an irrevocable letter of credit from a financial institution;

(e) the irrevocable letter of credit fails to identify the department as the beneficiary; or

(f) the irrevocable letter of credit is not equal to or greater than the bidder's bid amount.

(1) The department shall rank all qualified bidders by bid amount.

(2) In the event a bidder places multiple bids, the department shall accept the highest bid placed by the bidder.

(3) In the event of the highest bid resulting in a tie, the department shall notify those bidders to request the bidders to submit a new bid and irrevocable letter of credit.

(4) The department shall notify the highest bidder in writing. The department shall also notify all other bidders that the highest bidder was notified.

(5) The highest bidder shall have 60 days to submit the application for licensure from the day the notification was received. Up to 60 additional days may be granted to the highest bidder upon the department receiving and approving a written request by the highest bidder that explains the need for additional time. If the highest bidder does not submit a completed application for licensure within the allotted time, the highest bidder will be disqualified. Once the application for licensure has been submitted, the highest bidder becomes an applicant.

(6) The information provided by the applicant on the application for licensure must match the information provided on the competitive bid form. Failure to provide identical information will result in denial of the application.

(7) The applicant must meet all other licensing and premises suitability requirements in order for a license to be issued by the department. Once the application has been approved by the department, the applicant becomes a licensee.

(8) Failure to pay the bid amount by the time the department is ready to approve the license will result in disqualification and the application for licensure will be denied.

(9) If the application for licensure is not approved or the license is forfeited pursuant to 16-4-430(7), MCA, the next highest bidder will be notified in writing. The next highest bidder will have two weeks to submit an irrevocable letter of credit for their bid amount if the original letter of credit was cancelled. The next highest bidder shall comply with the requirements of (5) through (8) and 16-4-430(4), MCA.

(1) The department shall separate two or more incorporated cities or incorporated towns, pursuant to 16-4-105, 16-4-201, and 16-4-420, MCA, by using a pivotal straight line.

(2) The department shall make available maps of any incorporated cities or incorporated towns that were previously part of a combined quota area whose boundaries were separated pursuant to (1).

(3) Except as provided in 16-4-105, 16-4-201, and 16-4-420, MCA, under no circumstance may a license, restricted by the quota limitations in 16-4-105, 16-4-201, or 16-4-420, MCA, be located farther than:

(a) the county boundary within which the incorporated city or incorporated town is located; or

(b) the line that separates the incorporated city or incorporated town's boundary from another incorporated city or incorporated town as specified in (1).