(1) A party applying to obtain a new license, transfer an ownership interest, change license location, or alter premises, shall provide the department with evidence sufficient to determine 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;

(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;

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

(d) the premises layout allows only the employee to control the preparation, sale, service, and distribution of alcoholic beverages;

(e) the investigator can verify the dimensions shown on the floor plan accurately represent the premises;

(f) 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;

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

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

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

(j) the premises meet the additional rules specific to each license type.

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

(a) must be operated at 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 they have the required perimeter barrier and are 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;

(c) listed on the floor plan provided to the department; and

(d) located on property owned or leased by the licensee.

(5) Currently licensed premises 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 or divorce among co-owners.

(6) The licensee must have possessory interest in the premises.

(7) The privileges granted under a license extend only to the premises depicted in the approved floor plan. The licensee shall follow the process in ARM 42.13.106 to change the floor plan.

(8) Only one license can operate on the premises depicted in the approved floor plan.

(9) A licensee may operate two or more service areas located on the same premises only if there is access allowing patrons to move freely from one service area to another without leaving the premises.