The following terms will be used in this sub-chapter.

(1) The following terms apply to all lottery processes:

(a) "Available license" means a newly created license which can be issued by the department or an existing license that can be transferred between quota areas because of:

(i) a population increase verified by the most recent census population figures; or

(ii) a lapse or revocation of an existing license.

(b) "Conditional approval letter" is defined in ARM 42.12.106.

(c) "Continuously open to the public" means open during designated business hours on a weekly basis with no interruption in those business hours.  Documented exceptions not causing unreasonable closure that would be considered are:

(i) acts of nature, such as a flood, earthquake, tornado, or blizzard;

(ii) other acts beyond the owner's control; or

(iii) a remodeling project of no greater than a one-month duration.

(d) "Lottery" means an objective mechanical process to randomly select persons eligible to submit applications for available licenses.

(e) "Lottery application" means a brief one-sheet application for an available license stating the applicant's name, mailing address, type of license, and quota area.  If more lottery applications than the number of licenses available for any given quota area have been submitted, a lottery will be held.

(f) "Person" means any individual, firm, partnership, limited liability company, corporation, or association.

(2) The following terms specifically apply to the restaurant beer/wine lottery process:

(a) "Existing beer/wine/all-beverages license" means either an on-premises or off-premises retail license that is either currently being used at the location in question, or has been approved for nonuse status, or is a license for which a sale has occurred or is pending but not approved by the department.

(i) A license in nonuse status does not constitute an existing license if the licensee does not own or control the applicant entity, the applicant and the licensee are not related, and the applicant and licensee are independent business entities.

(b) "Existing preference" means a preference that will be given to a restaurant owner/operator that has either existed for one year prior to the lottery deadline or was an unsuccessful lottery applicant from a previous restaurant beer/wine lottery. Either circumstance will give it a priority in the final ranking.  An applicant with both preferences must be awarded a license before any applicant with only one preference.  However, an existing preference will not supersede the limits within any quota area on licenses of restaurants with a seating capacity of 101 or more persons.

(c) "Restaurant beer/wine license" means a license which must be attached to a restaurant and can only be used in conjunction with food service.  The licensee must agree to forego any kind of gambling, maintain 65% of business income from food sales, and must only have table service of beer and wine to those customers who are eating or waiting to be seated to eat.

(d) "Seasonal restaurant" means one that is only open during one, two, or three seasons of any year.  Seasonal restaurants can be open any part of a season or the full season, as long as the restaurant is not open year-round.

(e) "Service bar" means an area where alcoholic beverages are stored and prepared for table service delivery to patrons for on-premises consumption.  Consumption of alcoholic beverages by patrons or any other person is not permitted at the service bar.