(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.