(1) All applications for licenses to sell alcoholic beverages at retail or wholesale 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. 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, 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.

(4) Upon receipt of an application for a license to sell 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.

(5) Except as provided in (9) , (10) , and (11) , 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) The license application 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 required loan documents;

(e) a complete set 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

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

(7) 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.

(8) 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.

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

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

(b) a transfer that would not result in a new owner or owner of less than 10% in the licensed corporation, owning 10% or more of the same licensed corporation. These transfers may occur without prior consent of the department. Immediate notice must be given to the department in these cases in accordance with ARM 42.12.103.

(10) 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.

(11) An application is not required to be filed if an existing licensee or member of a licensee entity that was previously qualified is being removed from the face of the license as an owner. In this case, documentation supporting the removal of the person and immediate notification to the department is required.

(12) 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.