(1) All applications for licenses to sell, manufacture or distribute alcoholic beverages must be made to the department upon forms supplied by the department.

(2) Applications for licenses shall be in the names of all persons with an ownership interest or to have an ownership interest in the business to be operated under the license. An owner of 10 percent or more, or who will have an ownership interest of 10 percent or more in the license, in the business, or in the entity owning the license, must meet the requirements as described in 16-4-401, MCA. If no single owner's interest is 10 percent or more, then persons whose combined ownership totals, or will total, 51 percent must meet the requirements as described in 16-4-401, MCA. If a corporation is publicly traded, it needs to meet the requirements provided for publicly traded corporations in 16-4-401, MCA. The names of all such persons shall appear on the licenses. The disqualification of any one or more applicants to hold the license disqualifies all.

(3) In addition to other information required on the application form, the department may require an applicant to submit all information necessary to determine qualifications, including, but not limited to:

(a) personal history statements and authorization to access state and federal income tax information for all persons who appear to have an ownership interest or control over the business operated or to be operated under the license; and

(b) in the case of a license to be operated seasonally, the applicant may be required to submit sufficient information for the department to determine whether the criteria for seasonal operation, as described in 16-3-310, MCA, and ARM 42.13.108, are met.

(4) Upon receipt of an application for a license to sell, manufacture, or distribute alcoholic beverages, the department shall make a thorough investigation as to the qualifications of the applicant and the suitability of the premises proposed for licensing. If, upon such investigation, it appears that the applicant is qualified under the law, and the premises is suitable for licensing under the laws of the state and the rules of the department, the department shall issue the license if all other requirements of the law and these rules are fulfilled. Temporary authority may be granted to applicants for a retail alcoholic beverages license if the requirements of ARM 42.12.208 are met.

(5) Except as provided in (10), (11), and (12), an ownership interest may not be transferred to a new owner until an application has been submitted to the department and the department approves the transfer.

(6) To be considered "complete" for processing, applications for licenses to sell alcoholic beverages for on-premises consumption, to manufacture, or distribute alcoholic beverages in Montana must include:

(a) the processing fee required for the applicable license as stated in ARM 42.12.111;

(b) a copy of the proposed agreement to transfer the interest in the license, if applicable;

(c) proof of possessory interest in the premises by the applicant;

(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) taxpayer identification number;

(g) bank account authorization and signature documents;

(h) proof of assumed business name, if applicable;

(i) additional documentation required for entity applicants as stated in ARM 42.12.103;

(j) proof that all filings and payments related to Montana income, corporation, withholding, business, and other taxes, are current for the applicant in all cases, and if the application is for a sale of the license, for the seller (current licensee);

(k) two complete sets of fingerprints, provided on the department's form FD-258 (obtained and certified by a local law enforcement agency, the department, or a private security company which has been approved by the department), for each person required to complete a personal history statement as specified by this rule; and

(l) any other documentation required to determine licensing or premises qualifications.

(7) To be considered "complete" for processing, applications for licenses to sell alcoholic beverages for off-premises consumption only must include:

(a) the processing fee as required in ARM 42.12.111, and the license fee stated in 16-4-501, MCA;

(b) proof of possessory interest in the premises by the applicant;

(c) the premises floor plan;

(d) taxpayer identification number;

(e) bank account authorization and signature documents;

(f) proof of assumed business name, if applicable;

(g) grocery inventory;

(h) any other documentation required to determine licensing or premises qualifications;

(i) proof that all filings and payments related to Montana income, corporation, withholding, business, and other taxes, are current for the applicant in all cases; and

(j) two complete sets of fingerprints, provided on the department's form FD-258 (obtained and certified by a local law enforcement agency, the department, or a private security company which has been approved by the department), for each person required to complete a personal history statement as specified by this rule.

(8) In any case of the transfer of an ownership interest to a new owner, 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.

(9) A certificate, stock, or other evidence of ownership may not be registered in the licensee's records until the department has granted approval of the transfer.

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

(a) the transfer of a security interest in a licensed liquor operation; or

(b) the death of a licensee. In that case, the procedure described in ARM 42.12.204 applies.

(11) Transfers of an ownership interest in a licensed operation from foreclosure must follow ARM 42.12.211, except if the foreclosing secured party intends to operate the license. In this case, this rule must be followed.

(12) For circumstances listed below, an existing licensee may complete a simplified form, provided by the department, along with the required documentation supporting the transactions:

(a) when an existing owner, member, partner, or shareholder of a licensee entity that was previously qualified is being removed as an owner;

(b) when an individual or entity is proposed to be added to the license as a less than 10 percent owner;

(c) when an existing owner, member, partner, or shareholder of a licensee entity that was previously qualified gifts some or all of their ownership interest to another existing owner, member, partner, or shareholder of a licensee entity that was previously qualified; or

(d) for a transfer of location of a current licensee. There cannot be other changes to the licensee, such as changes in ownership structure or creditors other than the lessor.

(13) The department will consider the same matters and conditions on application for renewal of license as for the original application or applications for transfer of ownership.