(1) A party applying for either a new retail license, the transfer of ownership of an existing retail license, the transfer of location of an existing retail 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 must be considered suitable for the retail sale of alcoholic beverages if:

(a) it meets the standards of the department of PHHS; the department of labor and industry, building codes bureau; and the state fire marshal's office in the fire prevention and investigation bureau of the department of justice; or their delegated representatives;

(i) a license issued for off-premises consumption of beer and/or table wine must meet the standards for an establishment operated as a grocery store, or a drug store licensed as a pharmacy;

(ii) a license issued for on-premises consumption of beer must meet the standards for an establishment operated as a bar or tavern;

(iii) a license issued for on-premises consumption of beer and wine must meet the standards for an establishment operated as either a restaurant or a prepared food business; and

(iv) a license issued for on-premises consumption of all-alcoholic beverages must meet the requirements for a bar or tavern;

(b) the investigator can easily ascertain 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.  The two circumstances to be ascertained are:

(i) a beer and/or table wine license issued for off-premises consumption operates at a premises recognizable as a grocery store or a pharmacy as defined in ARM 42.12.126;

(ii) a license issued for on-premises consumption operates at a premises recognizable as a restaurant, bar, tavern, or other business directly related to the on-premises consumption of alcoholic beverages, such as a bowling alley, hotel, or gambling casino.  The licensed premises must have a bar preparation area 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 12 seats at either a bar, not including a service bar as defined in ARM 42.12.401, or tables, booths, gaming areas, or any combination of the above; and

(iii) a restaurant beer and wine licensed premises must have a service bar as defined in ARM 42.12.401, and sufficient seating as defined in 16-4-420, MCA;

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

(d) the premises is 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 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 of alcoholic beverages to minors and intoxicated persons;

(h) the premises to be used for the on-premises consumption of alcoholic beverages is physically separated from any business not directly related to the on-premises consumption of alcoholic beverages by four permanent walls.  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 maintain 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.  Businesses directly related to the on-premises consumption of alcoholic beverages are a hotel, bowling alley, gambling casino, or restaurant; and

(i) the provisions of (3) are not violated.

(3) The premises cannot be considered suitable for the retail sale of alcoholic beverages if:

(a) local government zoning restrictions or ordinances prohibit the sale and/or consumption of alcohol at the location of the premises;

(b) the location is off regular police beats and cannot be properly policed by local authorities;

(c) the service of alcohol is handled by the customer without the direct involvement of the licensee or employees such as:

(i) alcoholic beverages provided the customer through automatic dispensing or vending machines; or

(ii) self-service beer tap;

(d) the on-premises operation is not physically separated from other businesses operated in the same building that are unrelated to the business of retail on-premises alcoholic beverages consumption, such as a grocery store, laundromat, clothing store, hardware store, flower shop, nursery, or preschool; and

(e) the operator of the alcoholic beverages business intends to conduct some or all of the sale of alcoholic beverages through the use of a drive-up window.

(4) Premises currently licensed that do not meet the suitability standards would be required to meet the above standards upon department approval of completed alterations of the existing licensed premises in accordance with 16-3-311, MCA.