The following definitions apply to this chapter:

(1) "Affiliation" means relationships wherein:

(a) an entity owns or controls another entity;

(b) entities are under common ownership or control; or

(c) an individual has decision-making authority or influence over business decisions for another entity.

(2) "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.

(3) "Bar preparation area" means a bar area where alcoholic beverages can be purchased and consumed. The area must have sufficient seating and must include supplies to prepare, consume, and deliver alcoholic beverages.

(4) "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.

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

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

(7) "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.

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

(9) "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.

(10) "Conditional approval letter" means a letter that is issued upon completion of the license application investigation and public protest period, but prior to approval of the premises. A conditional approval letter precedes issuance of a license, is not an approval to operate, and 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.

(11) "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.

(12) "Fair" means a county, state, or regional fair that occurs no more than once per year, is held on a publicly owned fairgrounds, and is officially sanctioned by a government entity.

(13) "Family relationship" means a spouse, dependent children, or dependent parents.

(14) "Individual serving" means not more than 16 ounces of beer, not more than 2 ounces of liquor, not more than 7 ounces of wine, or a proportional combination thereof (for example, 1 ounce of liquor mixed with 8 ounces of beer).

(15) "Licensee" means a person, partnership, association, or other entity holding a Montana retail alcoholic beverage license, a retail alcoholic beverage operation located on a U.S. military installation, an alcoholic beverage manufacturer, a table wine distributor, or a beer wholesaler within Montana.

(16) "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.

(17) "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.

(18) "Noninstitutional lender" means a person other than a state or federally regulated banking or financial institution, a credit union, an investment company, a development company, or other regulated lender as defined in 31-1-111, MCA, who loans money to the applicant for a license or to the licensee.

(19) "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.

(20) "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.

(21) "Patio/Deck" means an outdoor area that is part of the licensed premises, specifically designated on a floor plan, with a perimeter barrier and immediately adjacent to, and accessible from, the indoor portion of the licensed premises.

(22) "Perimeter barrier" means a barrier enclosing the perimeter of the patio/deck portion of a licensed premises, which defines the boundary of the licensed premises in a way that:

(a) clearly marks for patrons, licensees, licensees' employees, investigators, local law enforcement, or other interested parties, where consumption of alcohol is allowed;

(b) impedes access to the service areas by underage persons or others who may attempt to enter the premises without the licensee's knowledge; and

(c) consists of a fence or wall at least three feet high, or an alternative barrier that accomplishes the same purposes and is approved by the department. A perimeter barrier may be with or without entrances from the parking lot, sidewalk, or other areas beyond the patio/deck regardless of whether those areas beyond the licensed premises are land or water. In the case of a patio/deck which abuts a river, lake, or other body of water, the edge of the water may serve as a portion of the perimeter barrier, subject to department approval.

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

(24) "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.

(25) "Restaurant," as it applies to an all-beverages license or a retail on-premises beer or beer and wine license (but not a restaurant beer and wine license), means a public eating establishment allowing for seated service for a minimum of 12 persons at tables or booths where food is prepared, sold, and served on-site.

(26) "Retail alcoholic beverages license" means a license operated by an establishment for the retail sale of alcoholic beverage for either on- or off-premises consumption but does not include brewery, winery, or distillery licenses.

(27) "Sacramental wine" means wine that is manufactured and sold exclusively for use as sacramental wine or for other religious purposes.

(28) "Sample room" means a specific area designated on a floor plan where samples of product produced on site may be provided to the public; and the floor plan that accompanied the application for a brewery, distillery, or winery, was approved by, and is on file with, the department.

(29) "Special event," as it relates to all special permits and catering, means a short, infrequent, out-of-the-ordinary occurrence such as a picnic, fair, festival, reception, seasonal event, or sporting event for which there is an outcome, conclusion, or result. By example, a community winter holiday stroll held on four consecutive weekends, or a community summer gathering held one night a week all summer long that ceases in fall, is a seasonal special event.

(30) "Stand-alone beer and/or table wine business" means a business in which 95 percent of the business's annual gross income comes from the sale of beer, table wine, or both.

(31) "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.

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

(33) "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.