Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 4-101, Arizona Revised
Statutes, is amended to read:
START_STATUTE4-101. Definitions
In this title, unless the context otherwise requires:
1. "Act of violence" means an incident
consisting of a riot, a brawl or a disturbance, in which bodily injuries are
sustained by any person and such injuries would be obvious to a reasonable
person, or tumultuous conduct of sufficient intensity as to require the
intervention of a peace officer to restore normal order, or an incident in
which a weapon is brandished, displayed or used. Act of violence does not
include the use of nonlethal devices by a peace officer.
2. "Aggrieved party" means a person who
resides at, owns or leases property within a one mile radius of a premises
proposed to be licensed and who filed a written request with the department to
speak in favor of or opposition to the issuance of the license no later than
sixty days after the filing of the application or fifteen days after action by
the local governing body, whichever is later.
3. "Beer" means any beverage obtained by
the alcoholic fermentation, infusion or decoction of barley malt, hops, or other
ingredients not drinkable, or any combination of them.
4. "Board" means the state liquor board.
5. "Bona fide guest" means:
(a) A person who is actually a houseguest or a
person whose presence as a guest is in response to a specific and personal invitation.
(b) In the case of a club that meets the criteria
prescribed in paragraph 7, subdivision (a) of this section, a current member of
the armed services of the United States who presents proper military
identification and any member of a recognized veterans' organization of any
country allied with the United States during current or past wars or through
treaty arrangements.
6. "Broken package" means any container of
spirituous liquor on which the United States tax seal has been broken or
removed, or from which the cap, cork or seal placed thereupon by the
manufacturer has been removed.
7. "Club" includes any of the following
organizations where the sale of spirituous liquor for consumption on the
premises is made to members only:
(a) A post, chapter, camp or other local unit
composed solely of veterans and its duly recognized auxiliary which has been
chartered by the Congress of the United States for patriotic, fraternal or
benevolent purposes and which has, as the owner, lessee or occupant, operated
an establishment for that purpose in this state.
(b) A chapter, aerie, parlor, lodge or other local
unit of an American national fraternal organization which has as the owner,
lessee or occupant operated an establishment for fraternal purposes in this state.
An American national fraternal organization as used in this subdivision shall
actively operate in not less than thirty‑six states or have been in
active continuous existence for not less than twenty years.
(c) A hall or building association of a local unit
mentioned in subdivisions (a) and (b) of this paragraph, all of the capital
stock of which is owned by the local unit or the members, and which operates
the clubroom facilities of the local unit.
(d) A golf club which has more than fifty bona fide
members and which owns, maintains or operates a bona fide golf links together
with a clubhouse.
(e) A social club with more than one hundred bona
fide members who are actual residents of the county in which it is located,
that owns, maintains or operates club quarters, is authorized and incorporated
to operate as a nonprofit club under the laws of this state, and has been
continuously incorporated and operating for a period of not less than one
year. The club shall have had, during this one year period, a bona
fide membership with regular meetings conducted at least once each month, and
the membership shall be and shall have been actively engaged in carrying out
the objects of the club. The club's membership shall consist of bona
fide dues paying members paying at least six dollars per year, payable monthly,
quarterly or annually, which have been recorded by the secretary of the club,
and the members at the time of application for a club license shall be in good
standing having for at least one full year paid dues. At least fifty‑one
per cent of the members shall have signified their intention to secure a social
club license by personally signing a petition, on a form prescribed by the
board, which shall also include the correct mailing address of each signer.
The petition shall not have been signed by a member at a date earlier than
thirty days prior to the filing of the petition. The club shall qualify for
exemption from the payment of state income taxes under title 43. It is the
intent of this paragraph that a license shall not be granted to a club which
is, or has been, primarily formed or activated to obtain a license to sell
liquor, but solely to a bona fide club, where the sale of liquor is incidental
to the main purposes of the club.
(f) An airline club operated by or for airlines
which are certificated by the United States government and which maintain or
operate club quarters located at airports with international status.
8. "Company" or "association",
when used in reference to a corporation, includes successors or assigns.
9. "Control" means the power to direct or
cause the direction of the management and policies of an applicant, licensee or
controlling person, whether through the ownership of voting securities or a
partnership interest, by agreement or otherwise. Control is presumed
to exist if a person has the direct or indirect ownership of or power to vote
ten per cent or more of the outstanding voting securities of the applicant,
licensee or controlling person or to control in any manner the election of one
or more of the directors of the applicant, licensee or controlling person. In
the case of a partnership, control is presumed to mean the general partner or a
limited partner who holds ten per cent or more of the voting rights of the
partnership. For the purposes of determining the percentage of voting
securities owned, controlled or held by a person, there shall be aggregated
with the voting securities attributed to the person the voting securities of
any other person directly or indirectly controlling, controlled by or under
common control with the other person, or by an officer, partner, employee or
agent of the person or by a spouse, parent or child of the person. Control is
also presumed to exist if a creditor of the applicant, licensee or controlling
person holds a beneficial interest in ten per cent or more of the liabilities
of the licensee or controlling person.
10. "Controlling person" means a person
directly or indirectly possessing control of an applicant or licensee.
11. "Department" means the department of
liquor licenses and control.
12. "Director" means the director of the
department of liquor licenses and control.
13. "Distilled spirits" includes alcohol,
brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of
any of them or of any of them with any vegetable or other substance, alcohol
bitters, bitters containing alcohol, fruits preserved in ardent spirits, and
any alcoholic mixture or preparation, whether patented or otherwise, which may
in sufficient quantities produce intoxication.
14.
"Domestic farm winery" means a winery in the United States or in a
territory or possession of the United States that meets the requirements of
section 4-205.04.
14. 15. "Employee"
means any person who performs any service on licensed premises on a full‑time,
part‑time or contract basis with consent of the licensee, whether or not
the person is denominated an employee, independent contractor or
otherwise. Employee does not include a person exclusively on the
premises for musical or vocal performances, for repair or maintenance of the
premises or for the delivery of goods to the licensee.
15. 16. "Government
license" means a license to serve and sell spirituous liquor on specified
premises available only to a county, city, town or state university or the
Arizona coliseum and exposition center upon application by the governing body
of a county, city, town or state university or the Arizona exposition and state
fair board.
16. 17. "Legal
drinking age" means the age of twenty‑one years or older.
17. 18. "License"
means a license or an interim retail permit issued pursuant to the provisions
of this title.
18. 19. "License
fees" means fees collected for license issuance, license application,
license renewal, interim permit issuance and license transfer between persons
or locations.
19. 20. "Licensee"
means a person who has been issued a license or an interim retail permit
pursuant to the provisions of this title or a special event licensee.
20. 21. "Manager"
means a natural person who meets the standards required of licensees and has
authority to organize, direct, carry on, control or otherwise operate a
licensed business on a temporary or full‑time basis.
21. 22. "Off‑sale
retailer" means any person operating a bona fide regularly established
retail liquor store selling spirituous liquors, wines and beer, and any
established retail store selling commodities other than spirituous liquors and
engaged in the sale of spirituous liquors only in the original unbroken package,
to be taken away from the premises of the retailer and to be consumed off the
premises.
22. 23. "On‑sale
retailer" means any person operating an establishment where spirituous
liquors are sold in the original container for consumption on or off the
premises or in individual portions for consumption on the premises.
23. 24. "Person"
includes a partnership, limited liability company, association, company or
corporation, as well as a natural person.
24. 25. "Premises"
or "licensed premises" means the area from which the licensee is
authorized to sell, dispense or serve spirituous liquors under the provision of
the license.
25. 26. "Registered
mail" includes certified mail.
26. 27. "Registered
retail agent" means any person who is authorized pursuant to section 4‑222
to purchase spirituous liquors for and on behalf of himself and other retail
licensees.
27. 28. "Repeated
acts of violence" means two or more acts of violence occurring within
seven days, three or more acts of violence occurring within thirty days or acts
of violence occurring with any other similar frequency which the director
determines to be unusual or deserving of review.
28. 29. "Sell"
includes soliciting or receiving an order for, keeping or exposing for sale,
directly or indirectly delivering for value, peddling, keeping with intent to
sell and trafficking in.
29. 30. "Spirituous
liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin,
wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound
or mixture of any of them or of any of them with any vegetable or other
substance, alcohol bitters, bitters containing alcohol, any liquid mixture or
preparation, whether patented or otherwise, which produces intoxication, fruits
preserved in ardent spirits, and beverages containing more than one‑half
of one per cent of alcohol by volume.
30. 31. "Vehicle"
means any means of transportation by land, water or air, and includes
everything made use of in any way for such transportation.
31. 32. "Vending
machine" means a machine that dispenses merchandise through the means of
coin, token, credit card or other nonpersonal means of accepting payment for
merchandise received.
32. 33. "Veteran"
means a person who has served in the United States air force, army, navy,
marine corps or coast guard, as an active nurse in the services of the American
red cross, in the army and navy nurse corps in time of war, or in any
expedition of the armed forces of the United States, and who has received a
discharge other than dishonorable.
33. 34. "Voting
security" means any security presently entitling the owner or holder of
the security to vote for the election of directors of an applicant, licensee or
controlling person.
34. 35. "Wine"
means the product obtained by the fermentation of grapes or other agricultural
products containing natural or added sugar or any such alcoholic beverage
fortified with grape brandy and containing not more than twenty‑four per
cent of alcohol by volume.” END_STATUTE
Sec. 2. Section 4-203.04, Arizona Revised
Statutes, is amended to read:
START_STATUTE4-203.04. Direct shipment license; issuance;
fee; requirements; penalties; cease and desist orders; definitions
A. The director may issue a direct shipment license
to a person who is engaged in business as a distiller, vintner, brewer,
rectifier, blender or other producer of spirituous liquor if the person is
licensed in the state where the person's principal place of business is located
and the director determines that the person is capable and reliable and is
qualified to hold a direct shipment license.
B. A person shall apply for a direct shipment
license on a form prescribed by the director. The director may charge an
application fee. In addition to other matters required by the
director, an application for a direct shipment license shall include:
1. The address of the premises where the applicant's
principal place of business is located and a copy of the applicant's spirituous
liquor license in that state.
2. The name, address and telephone number of an
officer of the applicant who is authorized to represent the applicant before
the director.
3. A complete and full disclosure by the applicant
and by any officer, director, administrator or controlling person of the
applicant of any criminal convictions in any state or foreign jurisdiction
within the five years immediately preceding the application.
4. The names and addresses of the wholesalers
licensed in this state through which the applicant will ship spirituous liquor
into or within this state.
5. The number of individual orders of spirituous
liquor, if any, that the applicant shipped to wholesalers in this state during
the previous three years and the names and addresses of each wholesaler who
received the shipments.
6. A statement that
the applicant acknowledges that shipments by the applicant of spirituous liquor
into or within this state contrary to this section will result in the immediate
suspension of the applicant's direct shipment license.
C. The director may refuse to issue a direct
shipment license for good cause. After a hearing, the director may suspend or
revoke a direct shipment license for good cause. The director shall not issue
a direct shipment license to any person who:
1. Has had a direct shipment license or any license
to deal in spirituous liquor revoked in this state or any other state within
one year preceding the application.
2. Has been convicted of a felony in this state or
any other state or has been convicted of an offense in another state that would
be a felony if convicted in this state within five years preceding the
application.
D. A direct shipment license is valid for three
years. Direct shipment licenses may not be renewed or transferred. A person
who holds a direct shipment license may apply for a new license not more than
ninety days before expiration of the person's current license.
E. A resident of this state who is twenty‑one
years of age or older may place an order in person, by telephone, mail or
catalog or on the internet for spirituous liquor for the person's own personal
use with a person who holds a direct shipment license.
F. A person who holds a direct shipment license
shall ensure that shipments of spirituous liquor pursuant to this section are
made in conformance with all applicable provisions of this title and rules
adopted pursuant to this title. A direct shipment licensee who violates this
title or rules adopted pursuant to this title is subject to a civil or criminal
penalty and suspension or revocation of the person's license.
G. A person who holds a direct shipment license
shall deliver spirituous liquor ordered pursuant to subsection E of this
section to a wholesaler who is licensed in this state. The wholesaler shall
pay all luxury taxes imposed on the shipment pursuant to title 42, chapter 3 to
the department of revenue and shall deliver the liquor to a retailer with off‑sale
privileges who is licensed in this state.
H. The licensed retailer shall deliver the
spirituous liquor or shall arrange for the delivery of the spirituous liquor to
the person who placed the order and shall collect and pay to the department of
revenue all transaction privilege taxes imposed pursuant to title 42, chapter
5. The retailer shall:
1. Ensure that:
(a) The person making the delivery is twenty‑one
years of age or older.
(b) The delivery occurs only during the hours that
spirituous liquor may be lawfully served in this state.
(c) Deliveries are not made to persons who are
obviously intoxicated or are otherwise disorderly.
(d) The person accepting the delivery is twenty‑one
years of age or older and exhibits an acceptable written instrument of
identification pursuant to section 4‑241.
2. Make a record of the delivery at the time of
delivery on a form approved by the director of the department of liquor
licenses and control. The record shall be retained by the retailer for at least
two years and shall include the following information:
(a) The business name, address and license number of
the retailer.
(b) The date and time of delivery.
(c) The address where the delivery occurred.
(d) The type, brand and amount of the spirituous
liquor delivered.
(e) The printed name and signature of the person
making the delivery.
(f) The printed name and signature of the person
accepting the delivery, along with the type and serial number of the written
identification the person accepting delivery presented.
(g) The age of the person accepting delivery.
3. Refuse to complete a delivery if the retailer
believes that the delivery would violate any applicable provision of this
title.
I. If the director has reasonable cause to believe
that a person who is licensed pursuant to this section is acting in violation
of this section, the director may serve a cease and desist order requiring the
person to cease and desist the violation. The director may impose a civil
penalty of not more than one hundred fifty thousand dollars against a person
who knowingly violates a cease and desist order issued pursuant to this
section.
J. This
section shall not be construed to prohibit Notwithstanding any other law, a person from shipping may ship wine as long as all of the following
apply:
1. The wine was purchased while the purchaser was
physically present at the winery.
2. The purchaser of the wine provided the winery
verification of legal age to purchase alcohol.
3. The shipping container in which the wine is
shipped is marked to require an adult's
the signature on delivery
of an adult who is of legal age to
purchase alcohol and delivery confirmation.
4. The wine is for personal use only and not for
resale.
5. The winery ships to a residential or business address.
6. The purchaser could have carried the wine
lawfully into or within this state.
7. The winery
ships not more than two cases of wine per winery to the purchaser in any
calendar year.
K. Notwithstanding
any other law, a person may ship wine that is ordered by telephone, mail, fax
or catalog or through the internet if all of the following apply:
1. The wine
is purchased from a limited production winery.
2. The
purchaser of the wine provided the winery verification of legal age to purchase
alcohol.
3. The
shipping container in which the wine is shipped is marked to require the
signature on delivery of an adult who is of legal age to purchase alcohol and
delivery confirmation.
4. The wine
is for personal use only and not for resale.
5. The wine
is shipped to a residential or business address.
6. The
purchaser could have carried the wine lawfully into or within this state.
K. L. Section 4‑201
does not apply to licenses issued pursuant to this section.
M. For the purposes of THIS SECTION,
"Limited production winery" means a winery that produces fewer than
fifty thousand gallons of wine in a twelve month period and is licensed as a
domestic farm winery pursuant to section 4‑205.04. END_STATUTE
Sec. 3. Section 4-205.04, Arizona Revised
Statutes, is amended to read:
START_STATUTE4-205.04. Domestic farm winery or domestic
microbrewery license; issuance; regulatory provisions; retail site
A. The director may issue a domestic farm winery or
domestic microbrewery license to any domestic farm winery or domestic
microbrewery. Each location which engages in producing and bottling
these products must obtain a separate domestic farm winery or domestic
microbrewery license, but both such licenses may be issued for a common
location. The licensee may not transfer the domestic farm winery or
domestic microbrewery license from person to person or from location to
location.
B. An applicant for a domestic farm winery or
domestic microbrewery license shall, at the time of filing the application for
the license, accompany the application with the license fee. Persons
holding a domestic farm winery or domestic microbrewery license shall report
annually at the end of each fiscal year, at such time and in such manner as the
director may prescribe, the amount of wine or beer manufactured by them during
the fiscal year. If the total amount of wine or beer manufactured
during the year exceeds the amount permitted annually by the license, the
licensee shall apply for and receive an in‑state producer's license.
C. Notwithstanding any other statute, a licensed
domestic farm winery may sell wine produced or manufactured on the premises in
the original container for consumption on or off the premises and may make
sales and deliveries of wine to persons licensed to sell wine under this
title. A licensed domestic farm winery may serve wine produced or
manufactured on the premises for the purpose of sampling the wine.
D. A licensed domestic farm winery is subject to all both of the following requirements:
1. The winery shall produce not less than two
hundred gallons and not more than seventy‑five
FIFTY thousand gallons of
wine annually from grapes or other suitable agricultural products of which at least seventy‑five per cent
are grown in this state. The director may allow a percentage of out‑of‑state
agricultural products greater than twenty‑five per cent in wine
manufactured or produced by a licensed domestic farm winery if the licensed
domestic farm winery can demonstrate to the satisfaction of the director that
sufficient in‑state agricultural products are not available because of an
unexpected failure of suitable in‑state crops due to natural
causes. The exemption shall remain in effect only for the period of
time during which such shortages actually exist.
2. The winery may purchase and sell wine produced
from a domestic farm winery if the retail sale of the wine is conducted from
the same site as the location of the winery.
E. Notwithstanding any other statute, a licensed
domestic microbrewery may sell beer produced or manufactured on the premises
for consumption on or off the premises and may make sales and deliveries of
beer to persons licensed to sell beer under this title, including wholesalers
licensed under this title. A licensed domestic microbrewery may serve beer
produced or manufactured on the premises for the purpose of sampling the beer.
A licensed domestic microbrewery is subject to all of the following
requirements:
1. The microbrewery shall produce not less than ten
thousand gallons of beer in each year following the first year of operation.
2. The microbrewery shall not produce more than
three hundred ten thousand gallons of beer annually.
3. If retail operations are conducted in conjunction
with the microbrewery, these retail operations shall be conducted from the same
site as the location of the microbrewery.
4. The microbrewery may sell other spirituous liquor
products if:
(a) The microbrewery holds an on‑sale retail
license.
(b) The retail sale of the spirituous liquor is on
or adjacent to the premises of the microbrewery.
F. A person who holds a domestic microbrewery
license that meets the requirements of this section and who is not otherwise
engaged in the business of a distiller, vintner, brewer, rectifier, blender or
other producer of spirituous liquor in any jurisdiction may hold other on‑sale
retail licenses. The person shall purchase all spirituous liquor for
sale at the other on‑sale retail premises from wholesalers who are
licensed in this state.
G. The director shall adopt rules in order to
administer this section.
