(1) The department will consider and process an application for a new license, transfer of location, or transfer of ownership and location whenever the location of the proposed premises is specified but the building to accommodate the proposed premises has not been constructed or requires substantial remodeling.

(2) If, upon investigation, the department determines the applicant is qualified to own a license and it appears that the proposed premises, based on sufficient evidence provided by the applicant, meets all criteria for suitability, the department shall issue a conditional approval letter. The conditional approval is subject to a final inspection of the completed premises conducted by department investigative personnel, state or local health officials, state or local building codes personnel and state or local fire code officials.

(3) Conditional approval does not constitute the issuance of a license. The department will not issue a license until such time as the conditions, upon which approval was granted, are satisfied. An applicant who has received conditional approval is not authorized to engage in the purchase or sale of alcoholic beverages.

(4) An applicant who receives approval conditioned on the construction or remodeling of a premises is required to complete the premises and arrange for final inspection within a reasonable time. For purposes of this rule, "reasonable time" means 180 days in the case of an unconstructed building and 90 days in the case of a building, which requires substantial remodeling, unless otherwise provided in the final agency decision approving the application. In the case of a major construction project, the final agency decision may provide additional time for completion of construction or remodeling and final inspection.

(5) An applicant granted conditional approval who has applied for a last available license will not be subject to the provisions of ARM 42.12.131. A quota license will remain available for an applicant who has received conditional approval until a final determination either granting or denying the license is made by the department.

(6) In the event an applicant fails to meet the requirements of the conditional approval, the application will be denied. If intervening circumstances beyond an applicant's control prevent completion of a proposed premises and final inspection within a reasonable time, an applicant must notify the department in writing and provide evidence establishing grounds for extension of time in order to avoid denial of application.

(7) When an applicant applies for either transfer of ownership or location, or both, the license shall remain in the name of the recorded owner of the license until the terms of a conditional approval are satisfied. The recorded owner shall be sent copies of all final agency decisions affecting the license. If the application is denied, the recorded owner must resume operating the license within 90 days or the license may lapse as provided in 16-3-310 , MCA.

(8) An applicant who desires to change the location of the proposed premises after conditional approval has been granted must withdraw the previous application in writing and reapply.