(1) A party applying for either a new alcoholic beverages license, the transfer of ownership of an existing alcoholic beverages license, the transfer of location of an existing alcoholic beverages license, or approval of an alteration to a premises must provide the department with evidence of the suitability of the premises for the use intended.

(2) The premises may be considered suitable for the retail sale of alcoholic beverages, distribution of alcoholic beverages, or manufacture of alcoholic beverages only if:

(a) it meets the standards of the Department of Public Health and Human Services; the Department of Labor and Industry, Building Codes Bureau; and the Montana Fire Marshal's Office in the Investigations Bureau of the Department of Justice; or their delegated representatives;

(b) the investigator can easily determine the type of alcoholic beverages business that is being conducted on the premises due to indoor and outdoor advertising, signage, and/or the general layout and atmosphere of the premises to be licensed;

(c) for retail establishments, alcoholic beverages are advertised and displayed as being available for purchase;

(d) the premises are open for business on a regular basis so as not to be considered a license on nonuse status;

(e) the layout of the premises allows for licensee- and/or employee-only control over the preparation, sale, service, and/or distribution of alcoholic beverages;

(f) the investigator can verify to the department that the dimensions shown on the floor plan accurately represent the physical layout of the premises;

(g) the applicant has demonstrated that adequate safeguards are in place to prevent the sale, delivery, or giving away of alcoholic beverages to underage and intoxicated persons;

(h) for a new license, or a transfer of location, the premises are not located where local government zoning restrictions or ordinances prohibit the sale and/or consumption of alcohol;

(i) the premises are not located off regular police beats and can be properly policed by local authorities;

(j) the sale of alcoholic beverages does not occur through the use of a drive-up window;

(k) the premises meet the additional rules specific to each license type; and

(l) the provisions of (3) are met for on-premises licenses.

(3) A license issued for on-premises consumption of alcoholic beverages:

(a) must be operated at a premises clearly recognizable as a business established for the on-premises consumption of alcoholic beverages or other business directly related to the on-premises consumption of alcoholic beverages, such as a bowling alley, hotel, gambling casino, or restaurant (not including a coffee or beverage shop, bakery, or kiosk);

(b) must be operated at premises that are physically separated by permanent walls from any business not directly related to the on-premises consumption of alcoholic beverages. This includes a separate off-premises alcoholic beverage business operated by the on-premises licensee. The walls must be floor-to-ceiling and shall not be moved without department approval of alterations to the premises pursuant to ARM 42.13.106. The premises can have inside access to each business conducted in the building through a doorway no larger than six feet wide with a door that can be closed and locked when not in use;

(c) except for restaurant beer and wine licenses, must be used at premises that have a bar preparation area where alcohol can be purchased and consumed and sufficient seating to encourage patrons to remain on the premises and consume the alcoholic beverages sold by the drink. Sufficient seating must consist of not less than twelve seats at a bar, tables, booths, gaming areas, or any combination of the above. The twelve seats required are independent of any seats at gaming machines;

(d) may be used at premises that include a patio/deck, if it has the required perimeter barrier and is in compliance with fire regulations, except that a license used at a golf course does not require a perimeter barrier around a patio/deck because alcohol may be consumed at any place within the boundaries of the golf course;

(e) must be operated at premises where no alcoholic beverages can be provided to the customer from self-service devices, self-service vending machines, self-service reach-in coolers, or self-service open shelving (except for off-premises consumption as provided in (f)), and where the licensee or employees have direct involvement in the service of alcohol for on- or off-premises consumption; and

(f) except for restaurant beer and wine licenses, allows the licensee to sell alcoholic beverages for off-premises consumption, and the premises may include self-service open shelving or reach-in coolers for off-premises sales only if the off-premises sales area is contiguous with the on-premises sales area, but is physically separated with walls.

(4) A shed, warehouse, or other temporary or permanent enclosure used to store alcoholic beverage inventory must be:

(a) connected to the licensed premises;

(b) accessible only from inside the licensed premises; and

(c) listed on the floor plan provided to the department and be on property owned or leased by the licensee.

(5) Premises currently licensed that do not meet the suitability standards are required to meet the above standards upon seeking department approval of alterations of the existing licensed premises in accordance with 16-3-311, MCA, or upon a change in ownership of the license, excluding ownership changes among existing owners of an entity licensee such as death of a co-owner, divorce among co-owners, or other changes among existing owners of the licensee entity.