The following definitions apply to this sub-chapter:

(1) "Associated business" means a business that is not licensed by the state to keep or sell alcoholic beverages, but has an alcoholic beverages licensed business located within or on the premises owned or controlled by the "associated business." Examples of associated businesses are:

(a) a hotel that is not licensed to keep or sell alcoholic beverages, but leases space in the hotel to a licensee to sell alcoholic beverages; or

(b) a shopping mall that is not licensed to keep or sell alcoholic beverages, but leases space in the mall to a licensee to sell alcoholic beverages.

(2) "Bona fide grocery store" means a retail establishment where a variety of articles of staple foodstuffs, including meats, vegetables, fruits, bakery items, dairy products, and household supplies, are sold for consumption off-premises.

(3) "Bona fide sale" means a transaction that completely transfers the license to a qualified purchaser for consideration.

(4) "Business operated under the license" means the privilege of keeping alcoholic beverages for sale.

(5) "Catering" means the act of providing, pursuant to a written contract between a licensee with a valid catering endorsement and an unlicensed individual or entity, alcoholic beverages at an event hosted by the unlicensed individual or entity.

(6) "Complete application" means all information requested on the license application forms and the necessary supporting documentation has been supplied in compliance with the law.

(7) "Concession agreements" are agreements between either an on-premises consumption beer or all-alcoholic beverages licensee and a non-licensed entity operating a business directly related to the liquor operation. Both parties must conduct their respective enterprises within the same building, as set forth in ARM 42.12.133, and the premises must meet suitability requirements as set forth in ARM 42.12.122.

(8) "Conditional approval letter" means a letter that is issued upon completion of the investigation and public protest period, but prior to approval of the premises. A conditional approval letter precedes issuance of a license.

(a) A conditional approval letter is not to be confused with a license with conditions written on the face of the license itself pursuant to 16-1-302 , MCA. The conditions appearing on the face of the license are permanent and last through the existence of ownership by the current licensee.

(9) "Cosmetic change" means, in addition to the examples given in 16-3-311 , MCA, the correction of structural defects that do not entail reconfiguration of the premises.

(10) Licensee" means a person, partnership, association, or corporation holding a Montana retail liquor license and retail liquor operations located on U.S. military installations within Montana.

(11) "License fee" means a fee paid at the time a new license application is submitted, at the time an existing license transfers ownership, or upon renewal of an existing license.

(12) "Loan" means a written contract by which one delivers a sum of money to another with the agreement that the money be returned with interest within a specified period of time.

(13) "Non-institutional lender" means a person other than a state or federally regulated banking or financial institution who loans money to an applicant for a license or to a licensee.

(14) "Ownership interest" means the involvement in the business operated under the license by someone who owns some or all of the assets of the business, shares any portion of the profits, or any portion of the losses or liabilities of the business. Someone with an ownership interest in a liquor license shares in the financial risks of the business and is entitled to the profits or suffers the losses. Ownership interest includes the right to control the location or ownership of a license. Examples of ownership interests would include the authority to participate in such business decisions as the sale of the license, relocation of the license, change or creation of any financial arrangements for loan repayment or funding sources, or any responsibilities listed in ARM 42.12.132 to be held by the licensee. Participation in business decisions does not include providing advice. A right of first refusal is not an ownership interest.

(15) "Parties" means a:

(a) licensee;

(b) applicant;

(c) secured party;

(d) protestor; or

(e) attorney representing the licensee, applicant, secured party, protestor, or other interested party.

(16) "Prepared-food business" means a restaurant, except the food need not be prepared on-site.

(17) "Primarily meals with table service" means a restaurant where the business records show that the gross sales of food is greater than the sum of any other activity conducted on the premises.

(18) "Restaurant" means a public eating establishment allowing for seated service for a minimum of 12 persons at tables or booths where the sale of food served is prepared on-site.

(19) "Sample room" means a specific area designated on a floor plan that accompanied the application, was approved by, and is on file with, the department.

(20) "Substantially different use" means a change great enough to create a new type of business operation at a premises which is easily distinguishable from the business currently operated or previously planned to be operated at the same premises.

(21) "Transfer fee" is the processing fee as specified in ARM 42.12.111.

(22) "Undisclosed ownership interest" means a person with an ownership interest in a license who is not identified as an applicant, shareholder, or member of an applicant on an application for the license, or as a licensee on the face of the license.