(1) Except as provided in (5) , an ownership interest may not be transferred among existing owners without submitting an amended gambling license application to the department and obtaining department approval prior to the transfer.

(2) The department may conduct an investigation to determine whether the proposed transfer meets the licensure requirements in 23-5-176 , MCA, and department rules. In any case of the transfer of an ownership interest among existing owners, before approving the transfer, the department must determine that the transferred ownership interest is independently exercised by the new owner and does not remain under the control of the transferor.

(3) Within 60 days after receiving the completed amended application, the department shall approve the proposed transfer by issuing an amended gambling license or notify the parties involved of the denial of the license or other appropriate action.

(4) The department may not charge any additional annual gambling license or machine permit fees.

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

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

(b) transfer of less than 5% interest in a publicly-traded corporation. Transfers of an interest of 5% or more in a publicly-traded corporation are subject to the provisions of this rule, except that the transfer may occur without prior department approval. The department reserves the right to act under 23-5-136 , MCA, in this situation if it determines that the transfer violates Montana gambling law or the rules in this chapter.