HB2740 - 472R

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 the united states and 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. "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. "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. "Legal drinking age" means the age of twenty‑one years or older.

17. "License" means a license or an interim retail permit issued pursuant to the provisions of this title.

18. "License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations.

19. "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. "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. "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. "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. "Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person.

24. "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. "Registered mail" includes certified mail.

26. "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. "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. "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. "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. "Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation.

31. "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. "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. "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. "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.

Sec. 2. Section 4-209, Arizona Revised Statutes, is amended to read:

START_STATUTE4-209. Fees for license, application, issuance, renewal and transfer; late renewal penalty; seasonal operation; surcharges

A. A fee shall accompany an application for an original license or transfer of a license, or in case of renewal, shall be paid in advance. Every license expires annually. A licensee who fails to renew the license on or before the due date shall pay a penalty of one hundred fifty dollars which the licensee shall pay with the renewal fee. A license renewal that is deposited, properly addressed and postage prepaid in an official depository of the United States mail on or before the due date shall be deemed filed and received by the department on the date shown by the postmark or other official mark of the United States postal service stamped on the envelope. If the due date falls on a Saturday, Sunday or other legal holiday, the renewal shall be considered timely if it is received by the department on the next business day. The director may waive a late renewal penalty if good cause is shown by the licensee. A licensee who fails to renew the license on or before the due date may not sell, purchase or otherwise deal in spirituous liquor until the license is renewed. A license which is not renewed within sixty days after the due date is deemed terminated. The director may renew the terminated license if good cause is shown by the licensee. An application fee for an original license or the transfer of a license shall be one hundred dollars, which shall be retained by this state.

B. Issuance fees for original licenses shall be:

1. For an in‑state producer's license, to manufacture or produce spirituous liquor in this state, one thousand five hundred dollars.

2. Except as provided in paragraph 15 of this subsection, for an out‑of‑state producer's, exporter's, importer's or rectifier's license, two hundred dollars.

3. For a domestic microbrewery license, three hundred dollars.

4. For a wholesaler's license, to sell spirituous liquors, one thousand five hundred dollars.

5. For a government license issued in the name of a county, city or town, one hundred dollars.

6. For a bar license, which is an on‑sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, one thousand five hundred dollars.

7. For a beer and wine bar license, which is an on‑sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, one thousand five hundred dollars.

8. For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquors in individual portions or in the original containers for consumption on the boat, one thousand five hundred dollars.

9. For a liquor store license, which is an off‑sale retailer's license to sell all spirituous liquors, one thousand five hundred dollars.

10. For a beer and wine store license, which is an off‑sale retailer's license to sell beer and wine, one thousand five hundred dollars.

11. For a hotel‑motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, one thousand five hundred dollars.

12. For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, one thousand five hundred dollars.

13. For a domestic farm winery license, one hundred dollars.

14. For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on‑sale, one thousand dollars.

15. For an out‑of‑state winery that sells not more than fifty cases of wine in this state in a calendar year, twenty‑five dollars.

C. The department may issue licenses with staggered renewal dates to distribute the renewal work load workload as uniformly as practicable throughout the twelve months of the calendar year. If a license is issued less than six months before the scheduled renewal date of the license, as provided by the department's staggered license renewal system, one‑half of the annual license fee shall be charged.

D. The annual fees for licenses shall be:

1. For an in‑state producer's license, to manufacture or produce spirituous liquors in this state, three hundred fifty dollars.

2. Except as provided in paragraph 15 of this subsection, for an out‑of‑state producer's, exporter's, importer's or rectifier's license, fifty dollars.

3. For a domestic microbrewery license, three hundred dollars.

4. For a wholesaler's license, to sell spirituous liquors, two hundred fifty dollars.

5. For a government license issued to a county, city or town, one hundred dollars.

6. For a bar license, which is an on‑sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, one hundred fifty dollars.

7. For a beer and wine bar license, which is an on‑sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, seventy‑five dollars.

8. For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquor in individual portions or in the original containers for consumption on the boat, two hundred twenty‑five dollars.

9. For a liquor store license, which is an off‑sale retailer's license to sell all spirituous liquors, fifty dollars.

10. For a beer and wine store license, which is an off‑sale retailer's license to sell beer and wine, fifty dollars.

11. For a hotel‑motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, five hundred dollars.

12. For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, five hundred dollars, and for a restaurant license that is permitted to continue operating as a restaurant pursuant to section 4-213, subsection E, an additional amount established by the director. the department shall retain ninety per cent of the additional amount and the department is not required to transfer all or any portion of this amount to the state treasurer for deposit in the state general fund. The department shall transmit ten per cent of the additional amount to the oversight council on driving or operating under the influence abatement for deposit in the driving under the influence abatement fund established by section 28-1304.

13. For a domestic farm winery license, one hundred dollars.

14. For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on‑sale, one hundred fifty dollars.

15. For an out‑of‑state winery that sells not more than twenty‑five cases of wine in this state in a calendar year, twenty‑five dollars.

E. Where the business of an on‑sale retail licensee is seasonal, not extending over periods of more than six months in any calendar year, the licensee may designate the periods of operation, and a license may be granted for those periods only, upon payment of one‑half of the fee prescribed in subsection D of this section.

F. Transfer fees from person to person for licenses transferred pursuant to section 4‑203, subsection C shall be three hundred dollars.

G. Transfer fees from location to location, as provided for in section 4‑203, shall be one hundred dollars.

H. Assignment fees for a change of agent, as provided for in section 4‑202, subsection C, shall be one hundred dollars, except that where a licensee holds multiple licenses the assignment fee for the first license shall be one hundred dollars and the assignment fee for all remaining licenses transferred to the same agent shall be fifty dollars each, except that the aggregate assignment fees shall in no event exceed one thousand dollars.

I. No fee shall be charged by the department for an assignment of a liquor license in probate or an assignment pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding which assigns ownership of a business which includes a spirituous liquor license to one of the parties in the proceeding. In the case of nontransferable licenses no fee shall be charged by the department for the issuance of a license for a licensed business pursuant to a transfer of the business in probate or pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding which assigns ownership of the business to one of the parties in the proceeding.

J. The director shall assess a surcharge of thirty dollars on all licenses prescribed in subsection D, paragraphs 6, 7 and 12 of this section. Monies from the surcharge shall be used by the department exclusively for the costs of an auditor and support staff to review compliance by applicants and licensees with the requirements of section 4‑205.02, subsection E. The department shall assess the surcharge as part of the annual license renewal fee.

K. The director shall assess a surcharge of thirty‑five dollars on all licenses prescribed in this section. Monies from the surcharge shall be used by the department exclusively for the costs of an enforcement program to investigate licensees who have been the subject of multiple complaints to the department. The enforcement program shall respond to complaints against licensees by neighborhood associations, by neighborhood civic groups and from municipal and county governments. The department shall assess the surcharge as part of the annual license renewal fee.

L. The director shall assess a surcharge of twenty dollars on all licenses prescribed in subsection D, paragraphs 11 and 12 of this section and thirty‑five dollars on all other licenses prescribed in this section. Monies from the surcharge and from surcharges imposed pursuant to subsection K of this section shall be used by the department exclusively for the costs of a neighborhood association interaction and liquor enforcement management unit. The unit shall respond to complaints from neighborhood associations, neighborhood civic groups and local governing authorities regarding liquor violations. The director shall report the unit's activities to the board at each board meeting or as the board may direct.END_STATUTE

Sec. 3. Section 4-213, Arizona Revised Statutes, is amended to read:

START_STATUTE4-213. Restaurant audit

A. The director may require a restaurant to submit an audit of its records to demonstrate compliance with section 4‑205.02. The director shall not require an establishment to submit to such an audit more than once a year after the initial twelve months of operation even if the establishment is allowed to continue operating as a restaurant pursuant to subsection E of this section.

B. Except as provided in subsection D of this section, the department shall audit accounts, records and operations of a licensee that cover a twelve month period. An establishment that averages at least forty per cent of its gross revenue from the sale of food during the twelve month audit period shall be deemed to comply with the gross revenue requirements of section 4-205.02. The twelve month audit period shall fall within the sixteen months immediately preceding the beginning of the audit.

C. Except as provided in subsection J of this section, if the audit OR A CONSENT AGREEMENT THAT MAY BE OFFERED AT THE DISCRETION OF THE DIRECTOR AND THAT IS SIGNED BY THE LICENSEE AND THE DIRECTOR reveals that the licensee did not meet the definition of a restaurant as prescribed in section 4‑205.02 and the percentage of food sales determined by the audit or consent agreement was:

1. Less than thirty per cent, the department shall revoke the license.

2. At least thirty per cent but less than thirty-seven per cent, the department shall allow the licensee a six month period to either:

(a) Replace the license with a bar or beer and wine bar license, except that, at the end of that six month period, the department shall revoke the restaurant license or the licensee shall surrender the restaurant license.

(b) Obtain permission from the department to continue operating with a restaurant license pursuant to subsection e of this section.

3. At least thirty-seven per cent but less than forty per cent, the licensee shall be granted a period of one year to increase the food percentage to at least forty per cent. if the licensee does not increase the percentage of food sales to at least forty per cent, the department shall allow the licensee a six month period to either:

(a) REPLACE THE LICENSE WITH A BAR OR BEER AND WINE BAR LICENSE, except THAT, AT THE END OF THE SIX MONTH PERIOD, THE DEPARTMENT SHALL REVOKE THE RESTAURANT LICENSE OR THE LICENSEE SHALL SURRENDER THE RESTAURANT LICENSE.

(b) OBTAIN PERMISSION From THE DEPARTMENT TO CONTINUE operating with A RESTAURANT LICENSE PURSUANT TO subsection E of this section.

D. The department may conduct an audit of a licensee described in section 4‑209, subsection B, paragraph 12 after twelve months following the beginning of operations as a restaurant by the licensee to determine compliance by the licensee with section 4‑205.02, except that the department may conduct an audit of a licensee within the first twelve months of operation if the licensee has made a substantial modification in the restaurant equipment, service or entertainment items or seating capacity during that twelve month period, in which event the department may conduct the audit for a period of less than twelve months.

E. A restaurant licensee may continue to operate with its restaurant license if its food sales are at least thirty per cent and less than forty per cent and the department approves the continuation of the restaurant license pursuant to this subsection and subsections F, G, H and I of this section. The department shall not approve more than fifteen restaurant licenses pursuant to this subsection and subsections F, G, H and I of this section in each of the fiscal years 2006-2007 and 2007-2008. The department may approve a request submitted by the licensee to continue to operate with its restaurant license only if all of the following apply at the time the licensee files its request with the department:

1. The restaurant has a sufficient number of cooks, food preparation personnel and wait staff to prepare and provide the restaurant services that are NECESSARY FOR THE MENU OFFERED BY THE LICENSEE.

2. The restaurant’s equipment is of a sufficient grade and the size of the restaurant's kitchen is appropriate to the menu offered AND the kitchen occupies NOT LESS THAN TWENTY PER CENT OF THE TOTAL FLOOR SPACE OF THE LICENSED PREMISES.

3. The menu is of a type consistent with a restaurant operation. In making a determination pursuant to this paragraph, the department may consider the proportion of food sales to alcohol sales, the price of spirituous liquor beverages and food served by the licensee and whether the licensee provides reduced price or complementary food and beverages.

4. The aggregate area of all dance floors on the premises is not greater than ten per cent of the total floor space of the public area of the premises.

5. Not more than twenty per cent of the public interior area floor space consists of pool tables, dart or arcade games, barstools, cocktail tables and similar types of seating.

6. The name of the restaurant does not include terms associated with alcohol consumption such as "bar", "tavern", "pub", "spirits", "club", "lounge", "cabaret", "cantina" or "saloon".

7. Disposable dinnerware and smallware, including dining utensils, is not used except in outdoor areas.

F. If the department intends to approve a restaurant's continuation of operation pursuant to subsection E of this section:

1. the department shall advise the governing body of the city or town if the premises is within the incorporated limits of a city or town or the county of the department's intent.

2. The city or town or the county shall post a notice for at least twenty days on the licensed premises that the licensee has made a request for continuation to operate with a restaurant license and invite bona fide residents who own, lease or reside on property within a one mile radius of the licensed premises to file written comments to the department regarding the request within thirty days of the first posting of the notice.

G. If the local jurisdiction through its governing body or its authorized agent does not object within ninety days, the licensee may continue its operation as a restaurant.

H. If the department intends to disapprove a restaurant's continuation of operation pursuant to subsection E of this section, or if the local jurisdiction or its agent timely objects to its continuation, the department shall set a hearing before the board and the local jurisdiction shall POST A NOTICE OF THE HEARING FOR A PERIOD OF at least TWENTY DAYS ON THE LICENSED PREMISES. THE city or town or the county MAY testify at THE HEARING AND BONA FIDE RESIDENTS who OWN, LEASe OR RESIDe on PROPERTY WITHIN A ONE MILE RADIUS OF THE LICENSED PREMISES MAY TESTIFY BEFORE THE BOARD REGARDING THE LICENSEE’S REQUEST. The board shall determine whether the restaurant may continue its operation based on consideration of the criteria listed in subsection e of this section.

I. As a condition of continuing operation as a restaurant under subsection E of this section, the department may require the licensee to specifically acknowledge the representations made by the licensee regarding its operations in support of the licensee's continuing operation as a restaurant. notwithstanding subsection a of this section, if the licensee changes its operation in any way that materially and detrimentally affects the representations made by the licensee, the department may audit the licensee or terminate the license without an audit.

J. If a licensed premises has not continuously operated under a valid restaurant license issued pursuant to section 4-205.02 for a period of at least five years, the licensee shall not be eligible to use the provisions of subsection c, paragraphs 2 and 3 of this section.

Sec. 4. Section 4-226, Arizona Revised Statutes, is amended to read:

START_STATUTE4-226. Exemptions

The provisions of this title do not apply to:

1. Drugstores selling spirituous liquors only upon prescription.

2. Any confectionery candy containing less than five per cent by weight of alcohol.

3. Ethyl alcohol intended for use or used for the following purposes:

(a) Scientific, chemical, mechanical, industrial and medicinal purposes.

(b) Use by those authorized to procure spirituous liquor or ethyl alcohol tax‑free, as provided by the acts of Congress and regulations promulgated thereunder.

(c) In the manufacture of denatured alcohol produced and used as provided by the acts of Congress and regulations promulgated thereunder.

(d) In the manufacture of patented, patent, proprietary, medicinal, pharmaceutical, antiseptic, toilet, scientific, chemical, mechanical and industrial preparations or products, unfit and not used for beverage purposes.

(e) In the manufacture of flavoring extracts and syrups unfit for beverage purposes.

4. The purchase, storage, distribution, service or consumption of wine in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise by a church recognized by the United States internal revenue service under section 501(c)(3) of the internal revenue code and in a manner not dangerous to public health or safety. This exemption does not apply to any alleged violation of section 4-244, paragraph 9, 33 36, 34 37 or 40 44. END_STATUTE

Sec. 5. Title 4, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 4-229, to read:

START_STATUTE4-229. Restaurant licensees; firearms; prohibition; posting of notice; definition

A. A premises that is issued a RESTAURANT LICENSE pursuant to section 4-205.02 may post a notice prohibiting the possession of a firearm on the entire licensed premises or on a portion of the licensed premises. A notice prohibiting possession of a firearm on the entire licensed premises shall be conspicuously posted at the primary public entrance to the licensed premises in a position that assures it is likely to be read. A notice prohibiting possession of a firearm on a portion of the licensed premises shall be conspicuously posted in the prohibited portion of the premises in a position that assures it is likely to be read.

B. The notice allowed by subsection A of this section prohibiting the possession of a firearm on the entire licensed premises shall state "this premises is posted pursuant to A.R.S. section 4‑229". The notice allowed by subsection A of this section prohibiting the possession of a firearm on a portion of the licensed premises shall state "this portion of the premises is posted pursuant to A.R.S. section 4-229". In each notice the words "A.R.S. section 4-229" shall be in at least seventy-two point type.

Sec. 6. Section 4-244, Arizona Revised Statutes, is amended to read:

START_STATUTE4-244. Unlawful acts

It is unlawful:

1. For a person to buy for resale, sell or deal in spirituous liquors in this state without first having procured a license duly issued by the board.

2. For a person to sell or deal in alcohol for beverage purposes without first complying with this title.

3. For a distiller, vintner, brewer or wholesaler knowingly to sell, dispose of or give spirituous liquor to any person other than a licensee except in sampling wares as may be necessary in the ordinary course of business, except in donating spirituous liquor to a nonprofit organization which has obtained a special event license for the purpose of charitable fund raising activities or except in donating spirituous liquor with a cost to the distiller, brewer or wholesaler of up to one hundred dollars in a calendar year to an organization that is exempt from federal income taxes under section 501(c) of the internal revenue code and not licensed under this title.

4. For a distiller, vintner or brewer to require a wholesaler to offer or grant a discount to a retailer, unless the discount has also been offered and granted to the wholesaler by the distiller, vintner or brewer.

5. For a distiller, vintner or brewer to use a vehicle for trucking or transportation of spirituous liquors unless there is affixed to both sides of the vehicle a sign showing the name and address of the licensee and the type and number of the person's license in letters not less than three and one‑half inches in height.

6. For a person to take or solicit orders for spirituous liquors unless the person is a salesman or solicitor of a licensed wholesaler, a salesman or solicitor of a distiller, brewer, vintner, importer or broker or a registered retail agent.

7. For any retail licensee to purchase spirituous liquors from any person other than a solicitor or salesman of a wholesaler licensed in this state.

8. For a retailer to acquire an interest in property owned, occupied or used by a wholesaler in his business, or in a license with respect to the premises of the wholesaler.

9. Except as provided in paragraphs 10 and 11 of this section, for a licensee or other person to sell, furnish, dispose of or give, or cause to be sold, furnished, disposed of or given, to a person under the legal drinking age or for a person under the legal drinking age to buy, receive, have in the person's possession or consume spirituous liquor. This paragraph shall not prohibit the employment by an off‑sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least nineteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.

10. For a licensee to employ a person under the age of nineteen years to manufacture, sell or dispose of spirituous liquors. This paragraph shall not prohibit the employment by an off‑sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least nineteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.

11. For an on‑sale retailer to employ a person under the age of nineteen years in any capacity connected with the handling of spirituous liquors. This paragraph does not prohibit the employment by an on‑sale retailer of a person under the age of nineteen years who cleans up the tables on the premises for reuse, removes dirty dishes, keeps a ready supply of needed items and helps clean up the premises.

12. For a licensee, when engaged in waiting on or serving customers, to consume spirituous liquor or for a licensee or on‑duty employee to be on or about the licensed premises while in an intoxicated or disorderly condition.

13. For an employee of a retail licensee, during that employee's working hours or in connection with such employment, to give to or purchase for any other person, accept a gift of, purchase for himself or consume spirituous liquor, except that:

(a) An employee of a licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may give spirituous liquor to or purchase spirituous liquor for any other person.

(b) An employee of an on-sale retail licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may taste samples of beer or wine not to exceed four ounces per day or distilled spirits not to exceed two ounces per day provided by an employee of a wholesaler or distributor who is present at the time of the sampling.

(c) An employee of an on-sale retail licensee, under the supervision of a manager as part of the employee’s training and education, while not engaged in waiting on or serving customers may taste samples of distilled spirits not to exceed two ounces per educational session or beer or wine not to exceed four ounces per educational session, and provided that a licensee shall not have more than two educational sessions in any thirty day period.

(d) An unpaid volunteer who is a bona fide member of a club and who is not engaged in waiting on or serving spirituous liquor to customers may purchase for himself and consume spirituous liquor while participating in a scheduled event at the club. An unpaid participant in a food competition may purchase for himself and consume spirituous liquor while participating in the food competition.

(e) An unpaid volunteer of a special event licensee under section 4‑203.02 may purchase and consume spirituous liquor while not engaged in waiting on or serving spirituous liquor to customers at the special event. This subdivision does not apply to an unpaid volunteer whose responsibilities include verification of a person’s legal drinking age, security or the operation of any vehicle or heavy machinery.

14. For a licensee or other person to serve, sell or furnish spirituous liquor to a disorderly or obviously intoxicated person, or for a licensee or employee of the licensee to allow or permit a disorderly or obviously intoxicated person to come into or remain on or about the premises, except that a licensee or an employee of the licensee may allow an obviously intoxicated person to remain on the premises for a period of time of not to exceed thirty minutes after the state of obvious intoxication is known or should be known to the licensee in order that a nonintoxicated person may transport the obviously intoxicated person from the premises. For the purposes of this section paragraph, "obviously intoxicated" means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would have been obvious to a reasonable person.

15. For an on‑sale or off‑sale retailer or an employee of such retailer to sell, dispose of, deliver or give spirituous liquor to a person between the hours of 2:00 a.m. and 6:00 a.m. on weekdays, and 2:00 a.m. and 10:00 a.m. on Sundays.

16. For a licensee or employee to knowingly permit any person on or about the licensed premises to give or furnish any spirituous liquor to any person under the age of twenty‑one or knowingly permit any person under the age of twenty‑one to have in the person's possession spirituous liquor on the licensed premises.

17. For an on‑sale retailer or an employee of such retailer to allow a person to consume or possess spirituous liquors on the premises between the hours of 2:30 a.m. and 6:00 a.m. on weekdays, and 2:30 a.m. and 10:00 a.m. on Sundays.

18. For an on‑sale retailer to permit an employee or for an employee to solicit or encourage others, directly or indirectly, to buy the employee drinks or anything of value in the licensed premises during the employee's working hours. No on‑sale retailer shall serve employees or allow a patron of the establishment to give spirituous liquor to, purchase liquor for or drink liquor with any employee during the employee's working hours.

19. For an off‑sale retailer or employee to sell spirituous liquor except in the original unbroken container, to permit spirituous liquor to be consumed on the premises or to knowingly permit spirituous liquor to be consumed on adjacent property under the licensee's exclusive control.

20. For a person to consume spirituous liquor in a public place, thoroughfare or gathering. The license of a licensee permitting a violation of this paragraph on the premises shall be subject to revocation. This paragraph does not apply to the sale of spirituous liquors on the premises of and by an on‑sale retailer. This paragraph also does not apply to a person consuming beer from a broken package in a public recreation area or on private property with permission of the owner or lessor or on the walkways surrounding such private property.

21. For a person to have possession of or to transport spirituous liquor which is manufactured in a distillery, winery, brewery or rectifying plant contrary to the laws of the United States and this state. Any property used in transporting such spirituous liquor shall be forfeited to the state and shall be seized and disposed of as provided in section 4‑221.

22. For an on‑sale retailer or employee to allow a person under the legal drinking age to remain in an area on the licensed premises during those hours in which its primary use is the sale, dispensing or consumption of alcoholic beverages after the licensee, or the licensee's employees, know or should have known that the person is under the legal drinking age. An on‑sale retailer may designate an area of the licensed premises as an area in which spirituous liquor will not be sold or consumed for the purpose of allowing underage persons on the premises if the designated area is separated by a physical barrier and at no time will underage persons have access to the area in which spirituous liquor is sold or consumed. The director, or a municipality, may adopt rules to regulate the presence of underage persons on licensed premises provided the rules adopted by a municipality are more stringent than those adopted by the director. The rules adopted by the municipality shall be adopted by local ordinance. This paragraph does not apply:

(a) If the person under the legal drinking age is accompanied by a spouse, parent or legal guardian of legal drinking age or is an on‑duty employee of the licensee.

(b) If the owner, lessee or occupant of the premises is a club as defined in section 4‑101, paragraph 7, subdivision (a) and the person under the legal drinking age is any of the following:

(i) An active duty military service member.

(ii) A veteran.

(iii) A member of the United States army national guard or the United States air national guard.

(iv) A member of the United States military reserve forces.

23. For an on‑sale retailer or employee to conduct drinking contests, to sell or deliver to a person an unlimited number of spirituous liquor beverages during any set period of time for a fixed price, to deliver more than thirty‑two ounces of beer, one liter of wine or four ounces of distilled spirits in any spirituous liquor drink to one person at one time for that person's consumption or to advertise any practice prohibited by this paragraph.

24. For a licensee or employee to knowingly permit the unlawful possession, use, sale or offer for sale of narcotics, dangerous drugs or marijuana on the premises.

25. For a licensee or employee to knowingly permit prostitution or the solicitation of prostitution on the premises.

26. For a licensee or employee to knowingly permit unlawful gambling on the premises.

27. For a licensee or employee to knowingly permit trafficking or attempted trafficking in stolen property on the premises.

28. For a licensee or employee to fail or refuse to make the premises or records available for inspection and examination as provided in this title or to comply with a lawful subpoena issued under this title.

29. Except as provided in paragraph 31 of this section, for any person other than a peace officer, the licensee or an employee of the licensee acting with the permission of the licensee to be in possession of a firearm while on the licensed premises of an on‑sale retailer knowing such possession is prohibited. This paragraph shall does not be construed to include a situation in which a person is on licensed premises for a limited time in order to seek emergency aid and such the person does not buy, receive, consume or possess spirituous liquor. This paragraph shall not does apply to hotel or motel guest room accommodations nor or to the exhibition or display of a firearm in conjunction with a meeting, show, class or similar event.

30. Except as provided in paragraph 32 of this section, for a licensee or employee to knowingly permit a person in possession of a firearm other than a peace officer, the licensee or an employee of the licensee acting with the permission of the licensee to remain on the licensed premises or to serve, sell or furnish spirituous liquor to a person in possession of a firearm while on the licensed premises of an on‑sale retailer. This paragraph shall does not apply to hotel or motel guest room accommodations nor or to the exhibition or display of a firearm in conjunction with a meeting, show, class or similar event. It shall be is a defense to action under this paragraph if the licensee or employee requested assistance of a peace officer to remove such person.

31. for any person other than a peace officer, a RESTAURANT licensee or an employee of a restaurant licensee acting with the permission of the restaurant licensee to be in possession of a firearm while on the licensed premises, or applicable portion of the licensed premises, of a RESTAURANT licensee who has posted a notice pursuant to section 4-229 if the person knows the possession is prohibited. This paragraph does not apply if a person is on licensed premises for a limited time in order to seek emergency aid and the person does not buy, receive, consume or possess spirituous liquor. This paragraph does not apply to hotel or motel guest room accommodations or to the exhibition or display of a firearm in conjunction with a meeting, show, class or similar event.

32. for a RESTAURANT licensee or an employee of a restaurant licensee to knowingly permit a person in possession of a firearm other than a peace officer, the restaurant licensee or an employee of the RESTAURANT licensee acting with the permission of the RESTAURANT licensee to remain on the licensed premises, or applicable portion of the licensed premises, posted PURSUANT to section 4-229 or to serve, sell or furnish spirituous liquor to a person in possession of a firearm while on the licensed premises, or applicable portion of the licensed premises, posted pursuant to section 4‑229. This paragraph does not apply to hotel or motel guest room accommodations or to the exhibition or display of a firearm in conjunction with a meeting, show, class or similar event. It is a defense to an action under this paragraph if the RESTAURANT licensee or employee of the restaurant licensee requested assistance of a peace officer to remove the person.

33. For any person in possession of a firearm while on the licensed premises of a restaurant licensee to consume SPIRITUOUS liquor. This paragraph does not apply to hotel or motel guest room accommodations or to the exhibition or display of a firearm in CONJUNCTION with a meeting, show, class or similar event.

31. 34. For a licensee or employee to knowingly permit spirituous liquor to be removed from the licensed premises, except in the original unbroken package. This paragraph shall not apply to a person who removes a bottle of wine which has been partially consumed in conjunction with a purchased meal from the licensed premises if the cork is reinserted flush with the top of the bottle.

32. 35. For a person who is obviously intoxicated to buy or attempt to buy spirituous liquor from a licensee or employee of a licensee or to consume spirituous liquor on licensed premises. For the purposes of this paragraph, "obviously intoxicated" means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would have been obvious to a reasonable person.

33. 36. For a person under the age of twenty‑one years to drive or be in physical control of a motor vehicle while there is any spirituous liquor in the person's body.

34. 37. For a person under the age of twenty‑one years to operate or be in physical control of a motorized watercraft that is underway while there is any spirituous liquor in the person's body. For the purposes of this paragraph, "underway" has the same meaning prescribed in section 5‑301.

35. 38. For a licensee, manager, employee or controlling person to purposely induce a voter, by means of alcohol, to vote or abstain from voting for or against a particular candidate or issue on an election day.

36. 39. For a licensee to fail to report an occurrence of an act of violence to either the department or a law enforcement agency.

37. 40. For a licensee to use a vending machine for the purpose of dispensing spirituous liquor.

38. 41. For a licensee to offer for sale a wine carrying a label including a reference to Arizona or any Arizona city, town or geographic location unless at least seventy‑five per cent by volume of the grapes used in making the wine were grown in Arizona.

39. 42. For a retailer to knowingly allow a customer to bring spirituous liquor onto the licensed premises, except that an on‑sale retailer may allow a wine and food club to bring wine onto the premises for consumption by the club's members and guests of the club's members in conjunction with meals purchased at a meeting of the club that is conducted on the premises and that at least seven members attend. An on‑sale retailer who allows wine and food clubs to bring wine onto its premises under this paragraph shall comply with all applicable provisions of this title and any rules adopted pursuant to this title to the same extent as if the on‑sale retailer had sold the wine to the members of the club and their guests. For the purposes of this paragraph, "wine and food club" means an association that has more than twenty bona fide members paying at least six dollars per year in dues and that has been in existence for at least one year.

40. 43. For a person under the age of twenty‑one years to have in the person's body any spirituous liquor. In a prosecution for a violation of this paragraph:

(a) Pursuant to section 4‑249, it is a defense that the spirituous liquor was consumed in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise and in a manner not dangerous to public health or safety.

(b) Pursuant to section 4‑226, it is a defense that the spirituous liquor was consumed for a bona fide medicinal purpose and in a manner not dangerous to public health or safety.

41. 44. For an employee of a licensee to accept any gratuity, compensation, remuneration or consideration of any kind to either:

(a) Permit a person who is under twenty-one years of age to enter any portion of the premises where that person is prohibited from entering pursuant to paragraph 22 of this section.

(b) Sell, furnish, dispose of or give spirituous liquor to a person who is under twenty-one years of age.

42. 45. For a person to purchase, offer for sale or use any device, machine or process which mixes spirituous liquor with pure oxygen or another gas to produce a vaporized product for the purpose of consumption by inhalation.

43. 46. For a retail licensee or an employee of a retail licensee to sell spirituous liquor to a person if the retail licensee or employee knows the person intends to resell the spirituous liquor.END_STATUTE

Sec. 7. Section 4-246, Arizona Revised Statutes, is amended to read:

START_STATUTE4-246. Violation; classification

A. A person violating any provision of this title is guilty of a class 2 misdemeanor unless another classification is prescribed.

B. A person violating section 4‑244, paragraph 9, 14, 33 36, 41 44 or 43 46 is guilty of a class 1 misdemeanor.

C. In addition to any other penalty prescribed by law, a person who is convicted of a violation of section 4‑244, paragraph 41 44 shall pay a fine of not less than five hundred dollars.

D. In addition to any other penalty prescribed by law, a person who is convicted of a violation of section 4‑241, paragraph subsection C, D or E shall pay a fine of not less than two hundred fifty dollars.

Sec. 8. Section 4-311, Arizona Revised Statutes, is amended to read:

START_STATUTE4-311. Liability for serving intoxicated person or minor; definition

A. A licensee is liable for property damage and personal injuries or is liable to a person who may bring an action for wrongful death pursuant to section 12‑612, or both, if a court or jury finds all of the following:

1. The licensee sold spirituous liquor either to a purchaser who was obviously intoxicated, or to a purchaser under the legal drinking age without requesting identification containing proof of age or with knowledge that the person was under the legal drinking age. , and

2. The purchaser consumed the spirituous liquor sold by the licensee. , and

3. The consumption of spirituous liquor was a proximate cause of the injury, death or property damage.

B. A licensee shall not be charged with knowledge of previous acts by which a person becomes intoxicated at other locations unknown to the licensee unless the person was obviously intoxicated.

B. C. For the purposes of subsection A, paragraph 2 of this section, if it is found that an underage person purchased spirituous liquor from a licensee and such underage person incurs or causes injuries or property damage as a result of the consumption of spirituous liquor within a reasonable period of time following the sale of the spirituous liquor, it shall create a rebuttable presumption that the underage person consumed the spirituous liquor sold to such person by the licensee.

C. D. For the purposes of this section "obviously intoxicated" means inebriated to such an extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction, that would have been obvious to a reasonable person.END_STATUTE

Sec. 9. Section 5-395.03, Arizona Revised Statutes, is amended to read:

5-395.03. Test for alcohol concentration or drug content; refusal; civil penalty

A. Any person who operates a motorized watercraft that is underway within this state shall submit, subject to section 4‑244, paragraph 34 37, section 5‑395 or section 5‑396, to a test or tests of the person's blood, breath, urine or other bodily substance for the purpose of determining alcohol concentration or drug content if the person is arrested for any offense arising out of acts alleged to have been committed in violation of this chapter or section 4‑244, paragraph 34 37 while the person was operating or in actual physical control of a motorized watercraft that was underway while under the influence of intoxicating liquor or drugs. The test or tests chosen by the law enforcement agency shall be administered at the direction of a law enforcement officer having reasonable grounds to believe the person to have been operating or in actual physical control of a motorized watercraft that is underway within this state while under the influence of intoxicating liquor or drugs, or if the person is under twenty‑one years of age, with spirituous liquor in the person's body.

B. Following an arrest a violator shall be requested to submit to and successfully complete any test or tests prescribed by subsection A of this section, and if the violator refuses the violator shall be informed that the violator is subject to a civil penalty.

C. A person who refuses any test or tests prescribed by subsection A of this section is subject to a civil penalty of seven hundred fifty dollars and shall pay an additional civil penalty of five hundred dollars. to The additional civil penalty of five hundred dollars shall be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. The additional civil penalty of five hundred dollars and is not subject to any surcharge. If the additional civil penalty is imposed by the superior court or a justice court, the court shall transmit the amount collected for the additional civil penalty to the county treasurer. If the additional civil penalty is imposed by a municipal court, the court shall transmit the amount collected for the additional civil penalty to the city treasurer. The city or county treasurer shall transmit the monies received pursuant to this subsection to the state treasurer.

D. If a person under arrest refuses to submit to the test designated by the law enforcement agency as provided in subsection A of this section none shall be given, except as provided in section 5‑395, subsection J or pursuant to a search warrant.

Sec. 10. Section 28-673, Arizona Revised Statutes, as amended by Laws 2005, chapter 312, section 1, is amended to read:

START_STATUTE28-673. Traffic accidents; implied consent; tests

A. A person who operates a motor vehicle within this state gives consent to a test or tests of the person's blood, breath, urine or other bodily substance for the purposes of determining alcohol concentration or drug content if the person is involved in a traffic accident resulting in death or serious physical injury as defined in section 13‑105 and a law enforcement officer has probable cause to believe that the person caused the accident or the person is issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

B. The test or tests chosen by the law enforcement agency shall be administered at the direction of a law enforcement officer who has reasonable grounds to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13‑105 and who has probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

C. After a determination is made that a person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13‑105 and the officer has probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title, the person may be requested to submit to and successfully complete any test or tests prescribed by subsection A of this section, and if the person refuses, the person shall be informed that the person's license or permit to drive will be suspended or denied for twelve months, or for two years for a second or subsequent refusal in a period of sixty eighty-four months, unless the person expressly agrees to submit to and successfully completes the test or tests. A failure to expressly agree to the test or successfully complete the test is deemed a refusal. The person shall also be informed that if the test results show a blood or breath alcohol concentration of 0.08 or more, or if the results show a blood or breath alcohol concentration of 0.04 or more and the person was driving or in actual physical control of a commercial motor vehicle, the person's license or permit to drive will be suspended or denied for not less than ninety consecutive days.

D. If a person refuses to submit to the test designated by the law enforcement agency as provided in subsection B of this section:

1. The test shall not be given, except as provided in section 28‑1388, subsection E or pursuant to a search warrant.

2. The law enforcement officer directing the administration of the test shall:

(a) File a certified report of the refusal with the department.

(b) On behalf of the department, serve an order of suspension on the person that is effective fifteen days after the date the order is served.

(c) Require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person.

(d) If the license or permit is not surrendered, state the reason why it is not surrendered.

(e) If a valid license or permit is surrendered, issue a temporary driving permit that is valid for fifteen days.

(f) Forward the certified report of refusal, a copy of the completed notice of suspension, a copy of any completed temporary permit and any driver license or permit taken into possession under this section to the department within five days after the issuance of the notice of suspension.

E. Section 28‑1321, subsections E through O P apply to any test prescribed by this section and to any person who refuses to submit to a test prescribed by this section, except that:

1. The certified report shall state the law enforcement officer's reasonable grounds to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13‑105 and the law enforcement officer's probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

2. The certified report shall be filed pursuant to subsection D of this section.

3. The scope of the hearing shall include the law enforcement officer's probable cause to believe that the person was involved in a traffic accident resulting in death or serious physical injury as defined in section 13‑105 and the law enforcement officer's probable cause to believe that the person caused the accident or the person was issued a citation for a violation of any provision of this article, article 2, 3 or 5 through 15 of this chapter or chapter 4 of this title.

F. A person who is dead, unconscious or otherwise in a condition rendering the person incapable of refusal is deemed not to have withdrawn the consent provided by subsection A of this section and the test or tests shall be administered. END_STATUTE

Sec. 11. Section 28-1304, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1304. Driving under the influence abatement fund

A. The driving under the influence abatement fund is established consisting of monies deposited pursuant to section 4-209, subsection D, paragraph 12, section 28‑1382, subsection D, paragraph 3 and subsection F, paragraph 3 and section 28‑1383, subsection J, paragraph 2.

B. The oversight council on driving or operating under the influence abatement established by section 28‑1303 shall administer the fund.

C. Twenty‑five per cent of the monies deposited in the fund shall be used for grants for innovative programs pursuant to section 28‑1303, subsection H, paragraph 2 and seventy per cent of the monies deposited in the fund shall be used for grants to political subdivisions and tribal governments pursuant to section 28‑1303, subsection H, paragraph 1.

D. Not more than five per cent of the monies deposited in the fund shall be used for administrative purposes of the oversight council on driving or operating under the influence abatement.

E. Monies in the fund are:

1. Continuously appropriated.

2. Exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

F. On notice from the oversight council on driving or operating under the influence abatement, the state treasurer shall invest and divest monies in the fund as provided in section 35‑313, and monies earned from investments shall be credited to the fund. END_STATUTE

Sec. 12. Section 28-1321, Arizona Revised Statutes, as amended by Laws 2005, chapter 312, section 3, is amended to read:

START_STATUTE28-1321. Implied consent; tests; refusal to submit to test; order of suspension; hearing; review; temporary permit; notification of suspension; special ignition interlock restricted driver license

A. A person who operates a motor vehicle in this state gives consent, subject to section 4‑244, paragraph 33 36 or section 28‑1381, 28‑1382 or 28‑1383, to a test or tests of the person's blood, breath, urine or other bodily substance for the purpose of determining alcohol concentration or drug content if the person is arrested for any offense arising out of acts alleged to have been committed in violation of this chapter or section 4‑244, paragraph 33 36 while the person was driving or in actual physical control of a motor vehicle while under the influence of intoxicating liquor or drugs. The test or tests chosen by the law enforcement agency shall be administered at the direction of a law enforcement officer having reasonable grounds to believe that the person was driving or in actual physical control of a motor vehicle in this state either:

1. While under the influence of intoxicating liquor or drugs.

2. If the person is under twenty‑one years of age, with spirituous liquor in the person's body.

B. After an arrest a violator shall be requested to submit to and successfully complete any test or tests prescribed by subsection A of this section, and if the violator refuses the violator shall be informed that the violator's license or permit to drive will be suspended or denied for twelve months, or for two years for a second or subsequent refusal within a period of sixty eighty-four months, unless the violator expressly agrees to submit to and successfully completes the test or tests. A failure to expressly agree to the test or successfully complete the test is deemed a refusal. The violator shall also be informed that if the test results show a blood or breath alcohol concentration of 0.08 or more, or if the results show a blood or breath alcohol concentration of 0.04 or more and the violator was driving or in actual physical control of a commercial motor vehicle, the violator's license or permit to drive will be suspended or denied for not less than ninety consecutive days.

C. A person who is dead, unconscious or otherwise in a condition rendering the person incapable of refusal is deemed not to have withdrawn the consent provided by subsection A of this section and the test or tests may be administered, subject to section 4‑244, paragraph 33 36 or section 28‑1381, 28‑1382 or 28‑1383.

D. If a person under arrest refuses to submit to the test designated by the law enforcement agency as provided in subsection A of this section:

1. The test shall not be given, except as provided in section 28‑1388, subsection E or pursuant to a search warrant.

2. The law enforcement officer directing the administration of the test shall:

(a) File a certified report of the refusal with the department.

(b) On behalf of the department, serve an order of suspension on the person that is effective fifteen days after the date the order is served.

(c) Require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person.

(d) If the license or permit is not surrendered, state the reason why it is not surrendered.

(e) If a valid license or permit is surrendered, issue a temporary driving permit that is valid for fifteen days.

E. The certified report is subject to the penalty for perjury as prescribed by section 28‑1561 and shall state all of the following:

1. The officer's reasonable grounds to believe that the arrested person was driving or in actual physical control of a motor vehicle in this state either:

(a) While under the influence of intoxicating liquor or drugs.

(b) If the person is under twenty‑one years of age, with spirituous liquor in the person's body.

2. The manner in which the person refused to submit to the test or tests.

3. That the person was advised of the consequences of refusal.

F. On receipt of the certified report of refusal and a copy of the order of suspension and on the effective date stated on the order, the department shall enter the order of suspension on its records unless a written request for a hearing as provided in this section has been filed by the accused person. If the department receives only the certified report of refusal, the department shall notify the person named in the report in writing sent by mail that:

1. Fifteen days after the date of issuance of the notice the department will suspend the person's license or permit, driving privilege or nonresident driving privilege.

2. The department will provide an opportunity for a hearing if the person requests a hearing in writing and the request is received by the department within fifteen days after the notice is sent.

G. The order of suspension issued by a law enforcement officer or the department under this section shall notify the person that:

1. The person may submit a written request for a hearing.

2. The request for a hearing must be received by the department within fifteen days after the date of the notice or the order of suspension will become final.

3. The affected person's license or permit to drive or right to apply for a license or permit or any nonresident operating privilege will be suspended for twelve months from that date or for two years from that date for a second or subsequent refusal within a period of sixty eighty-four months.

H. The order for suspension shall:

1. Be accompanied by printed forms that are ready to mail to the department and that may be filled out and signed by the person to indicate the person's desire for a hearing.

2. Advise the person that unless the person has surrendered any driver license or permit issued by this state the person's hearing request will not be accepted, except that the person may certify pursuant to section 28‑3170 that the license or permit is lost or destroyed.

I. On the receipt of a request for a hearing, the department shall set the hearing within thirty days in the county in which the person named in the report resides unless the law enforcement agency filing the certified report of refusal pursuant to subsection D of this section requests at the time of its filing that the hearing be held in the county where the refusal occurred.

J. A timely request for a hearing stays the suspension until a hearing is held, except that the department shall not return any surrendered license or permit to the person but may issue temporary permits to drive that expire no later than when the department has made its final decision. If the person is a resident without a license or permit or has an expired license or permit, the department may allow the person to apply for a license or permit. If the department determines the person is otherwise entitled to the license or permit, the department shall issue and retain a license or permit subject to this section.

K. Hearings requested under this section shall be conducted in the same manner and under the same conditions as provided in section 28‑3306. For the purposes of this section, the scope of the hearing shall include only the issues of whether:

1. A law enforcement officer had reasonable grounds to believe that the person was driving or was in actual physical control of a motor vehicle in this state either:

(a) While under the influence of intoxicating liquor or drugs.

(b) If the person is under twenty‑one years of age, with spirituous liquor in the person's body.

2. The person was placed under arrest.

3. The person refused to submit to the test.

4. The person was informed of the consequences of refusal.

L. If the department determines at the hearing to suspend the affected person's privilege to operate a motor vehicle, the suspension provided in this section is effective fifteen days after giving written notice of the suspension, except that the department may issue or extend a temporary license that expires on the effective date of the suspension. If the person is a resident without a license or permit or has an expired license or permit to operate a motor vehicle in this state, the department shall deny to the person the issuance of a license or permit for a period of twelve months after the order of suspension becomes effective or for a period of two years after the order of suspension becomes effective for a second or subsequent refusal within a period of sixty eighty-four months.

M. If the suspension order is sustained after the hearing, a motion for rehearing is not required. Within thirty days after a suspension order is sustained, the affected person may file a petition in the superior court to review the final order of suspension or denial by the department in the same manner provided in section 28‑3317. The court shall hear the review of the final order of suspension or denial on an expedited basis.

N. If the suspension or determination that there should be a denial of issuance is not sustained, the ruling is not admissible in and has no effect on any administrative, civil or criminal court proceeding.

O. If it has been determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, the department shall give information in writing of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which the person has a license.

P. After completing not less than ninety consecutive days of the period of suspension required by this section, a person whose driving privilege is suspended pursuant to this section may apply to the department for a special ignition interlock restricted driver license pursuant to section 28-1401. Unless the certified ignition interlock period is extended by the department pursuant to section 28-1402, a person who is issued a special ignition interlock restricted driver license as provided in this subsection shall maintain a functioning certified ignition interlock device in compliance with this chapter 4 of this title during the remaining period of the suspension prescribed by this section. This subsection does not apply to a person whose driving privilege is suspended for a second or subsequent refusal within a period of sixty eighty-four months or a person who within a period of sixty eighty-four months has been convicted of a second or subsequent violation of article 3 of this chapter or section 4-244, paragraph 33 36 or an act in another jurisdiction that if committed in this state would be a violation of article 3 of this chapter or section 4-244, paragraph 33 36.

Sec. 13. Section 28-1381, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1381. Driving or actual physical control while under the influence; trial by jury; presumptions; admissible evidence; sentencing; classification

A. It is unlawful for a person to drive or be in actual physical control of a vehicle in this state under any of the following circumstances:

1. While under the influence of intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances if the person is impaired to the slightest degree.

2. If the person has an alcohol concentration of 0.08 or more within two hours of driving or being in actual physical control of the vehicle and the alcohol concentration results from alcohol consumed either before or while driving or being in actual physical control of the vehicle.

3. While there is any drug defined in section 13‑3401 or its metabolite in the person's body.

4. If the vehicle is a commercial motor vehicle that requires a person to obtain a commercial driver license as defined in section 28‑3001 and the person has an alcohol concentration of 0.04 or more.

B. It is not a defense to a charge of a violation of subsection A, paragraph 1 of this section that the person is or has been entitled to use the drug under the laws of this state.

C. A person who is convicted of a violation of this section is guilty of a class 1 misdemeanor.

D. A person using a drug prescribed by a medical practitioner licensed pursuant to title 32, chapter 7, 11, 13 or 17 is not guilty of violating subsection A, paragraph 3 of this section.

E. In any prosecution for a violation of this section, the state shall allege, for the purpose of classification and sentencing pursuant to this section, all prior convictions of violating this section, section 28‑1382 or section 28‑1383 occurring within the past thirty‑six months, unless there is an insufficient legal or factual basis to do so.

F. At the arraignment, the court shall inform the defendant that the defendant may request a trial by jury and that the request, if made, shall be granted.

G. In a trial, action or proceeding for a violation of this section or section 28‑1383 other than a trial, action or proceeding involving driving or being in actual physical control of a commercial vehicle, the defendant's alcohol concentration within two hours of the time of driving or being in actual physical control as shown by analysis of the defendant's blood, breath or other bodily substance gives rise to the following presumptions:

1. If there was at that time 0.05 or less alcohol concentration in the defendant's blood, breath or other bodily substance, it may be presumed that the defendant was not under the influence of intoxicating liquor.

2. If there was at that time in excess of 0.05 but less than 0.08 alcohol concentration in the defendant's blood, breath or other bodily substance, that fact shall not give rise to a presumption that the defendant was or was not under the influence of intoxicating liquor, but that fact may be considered with other competent evidence in determining the guilt or innocence of the defendant.

3. If there was at that time 0.08 or more alcohol concentration in the defendant's blood, breath or other bodily substance, it may be presumed that the defendant was under the influence of intoxicating liquor.

H. Subsection G of this section does not limit the introduction of any other competent evidence bearing on the question of whether or not the defendant was under the influence of intoxicating liquor.

I. A person who is convicted of a violation of this section:

1. Shall be sentenced to serve not less than ten consecutive days in jail and is not eligible for probation or suspension of execution of sentence unless the entire sentence is served.

2. Shall pay a fine of not less than two hundred fifty dollars.

3. May be ordered by a court to perform community restitution.

4. Shall pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

5. Shall pay an additional assessment of five hundred dollars to be deposited by the state treasurer in the state general fund. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

J. Notwithstanding subsection I, paragraph 1 of this section, at the time of sentencing the judge may suspend all but twenty‑four consecutive hours of the sentence if the person completes a court ordered alcohol or other drug screening, education or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education or treatment program and has not been placed on probation, the court shall issue an order to show cause to the defendant as to why the remaining jail sentence should not be served.

K. If within a period of sixty eighty-four months a person is convicted of a second violation of this section or is convicted of a violation of this section and has previously been convicted of a violation of section 28‑1382 or 28‑1383 or an act in another jurisdiction that if committed in this state would be a violation of this section or section 28‑1382 or 28‑1383, the person:

1. Shall be sentenced to serve not less than ninety days in jail, thirty days of which shall be served consecutively, and is not eligible for probation or suspension of execution of sentence unless the entire sentence has been served.

2. Shall pay a fine of not less than five hundred dollars.

3. May Shall be ordered by a court to perform at least thirty hours of community restitution.

4. Shall have the person's driving privilege revoked for one year. The court shall report the conviction to the department. On receipt of the report, the department shall revoke the person's driving privilege and shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28‑3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date of reinstatement of the person's driving privilege following a suspension or revocation or on the date of the department's receipt of the report of conviction, whichever occurs later. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

5. Shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

6. Shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the state general fund. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

L. Notwithstanding subsection K, paragraph 1 of this section, at the time of sentencing, the judge may suspend all but thirty days of the sentence if the person completes a court ordered alcohol or other drug screening, education or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education or treatment program and has not been placed on probation, the court shall issue an order to show cause as to why the remaining jail sentence should not be served.

M. In applying the sixty eighty-four month provision of subsection K of this section, the dates of the commission of the offense shall be the determining factor, irrespective of the sequence in which the offenses were committed.

N. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.END_STATUTE

Sec. 14. Section 28-1382, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1382. Driving or actual physical control while under the extreme influence of intoxicating liquor; trial by jury; sentencing; classification

A. It is unlawful for a person to drive or be in actual physical control of a vehicle in this state if the person has an alcohol concentration of 0.15 or more within two hours of driving or being in actual physical control of the vehicle and the alcohol concentration results from alcohol consumed either before or while driving or being in actual physical control of the vehicle.

B. A person who is convicted of a violation of this section is guilty of driving or being in actual physical control of a vehicle while under the extreme influence of intoxicating liquor.

C. At the arraignment, the court shall inform the defendant that the defendant may request a trial by jury and that the request, if made, shall be granted.

D. A person who is convicted of a violation of this section:

1. Shall be sentenced to serve not less than thirty consecutive days in jail and is not eligible for probation or suspension of execution of sentence unless the entire sentence is served.

2. Shall pay a fine of not less than two hundred fifty dollars. The fine prescribed in this paragraph and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in paragraph 3 of this subsection.

3. Shall pay an additional assessment of two hundred fifty dollars. If the conviction occurred in the superior court or a justice court, the court shall transmit the monies received pursuant to this paragraph to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the monies received pursuant to this paragraph to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer. The state treasurer shall deposit the monies received in the driving under the influence abatement fund established by section 28‑1304.

4. May be ordered by a court to perform community restitution.

5. Shall be required by the department, on receipt of the report of conviction, to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28‑3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date of reinstatement of the person's driving privilege following a suspension or revocation or on the date of the department's receipt of the report of conviction, whichever occurs later. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

6. Shall pay an additional assessment of one thousand dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall pay an additional assessment of one thousand dollars to be deposited by the state treasurer in the state general fund. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

E. Notwithstanding subsection D, paragraph 1 of this section, at the time of sentencing the judge may suspend all but ten days of the sentence if the person completes a court ordered alcohol or other drug screening, education or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education or treatment program and has not been placed on probation, the court shall issue an order to show cause to the defendant as to why the remaining jail sentence should not be served.

F. If within a period of sixty eighty-four months a person is convicted of a second violation of this section or is convicted of a violation of this section and has previously been convicted of a violation of section 28‑1381 or 28‑1383 or an act in another jurisdiction that if committed in this state would be a violation of this section or section 28‑1381 or 28‑1383, the person:

1. Shall be sentenced to serve not less than one hundred twenty days in jail, sixty days of which shall be served consecutively, and is not eligible for probation or suspension of execution of sentence unless the entire sentence has been served.

2. Shall pay a fine of not less than five hundred dollars. The fine prescribed in this paragraph and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in paragraph 3 of this subsection.

4. May Shall be ordered by a court to perform at least thirty hours of community restitution.

5. Shall have the person's driving privilege revoked for at least one year. The court shall report the conviction to the department. On receipt of the report, the department shall revoke the person's driving privilege and shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28‑3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date of reinstatement of the person's driving privilege following a suspension or revocation or on the date of the department's receipt of the report of conviction, whichever is later. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

6. Shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

7. Shall pay an additional assessment of one thousand two hundred fifty dollars to be deposited by the state treasurer in the state general fund. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

G. Notwithstanding subsection F, paragraph 1 of this section, at the time of sentencing, the judge may suspend all but sixty days of the sentence if the person completes a court ordered alcohol or other drug screening, education or treatment program. If the person fails to complete the court ordered alcohol or other drug screening, education or treatment program and has not been placed on probation, the court shall issue an order to show cause as to why the remaining jail sentence should not be served.

H. In applying the sixty eighty-four month provision of subsection F of this section, the dates of the commission of the offense shall be the determining factor, irrespective of the sequence in which the offenses were committed.

I. A second violation for which a conviction occurs as provided in this section shall not include a conviction for an offense arising out of the same series of acts.

J. A person who is convicted of a violation of this section is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 15. Section 28-1383, Arizona Revised Statutes, as amended by Laws 2005, chapter 307, section 6, is amended to read:

START_STATUTE28‑1383. Aggravated driving or actual physical control while under the influence; violation; classification; definition

A. A person is guilty of aggravated driving or actual physical control while under the influence of intoxicating liquor or drugs if the person does any of the following:

1. Commits a violation of section 28‑1381, section 28‑1382 or this section while the person's driver license or privilege to drive is suspended, canceled, revoked or refused or while a restriction is placed on the person's driver license or privilege to drive as a result of violating section 28‑1381 or 28‑1382 or under section 28‑1385.

2. Within a period of sixty eighty-four months commits a third or subsequent violation of section 28‑1381, section 28‑1382 or this section or is convicted of a violation of section 28‑1381, section 28‑1382 or this section and has previously been convicted of any combination of convictions of section 28‑1381, section 28‑1382 or this section or acts in another jurisdiction that if committed in this state would be a violation of section 28‑1381, section 28‑1382 or this section.

3. While a person under fifteen years of age is in the vehicle, commits a violation of either:

(a) Section 28‑1381.

(b) Section 28‑1382.

B. The dates of the commission of the offenses are the determining factor in applying the sixty eighty-four month provision provided in subsection A, paragraph 2 of this section regardless of the sequence in which the offenses were committed. For the purposes of this section, a third or subsequent violation for which a conviction occurs does not include a conviction for an offense arising out of the same series of acts.

C. The notice to a person of the suspension, cancellation, revocation or refusal of a driver license or privilege to drive is effective as provided in section 28‑3318 or pursuant to the laws of the state issuing the license.

D. A person is not eligible for probation, pardon, commutation or suspension of sentence or release on any other basis until the person has served not less than four months in prison if the person is convicted under either of the following:

1. Subsection A, paragraph 1 of this section.

2. Subsection A, paragraph 2 of this section and within a sixty eighty-four month period has been convicted of two prior violations of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28‑1381, section 28‑1382 or this section.

E. A person who is convicted under subsection A, paragraph 2 of this section and who within a sixty eighty-four month period has been convicted of three or more prior violations of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, or acts in another jurisdiction that if committed in this state would be a violation of section 28‑1381, section 28‑1382 or this section is not eligible for probation, pardon, commutation or suspension of sentence or release on any other basis until the person has served not less than eight months in prison.

F. In addition to any other penalty provided by law, A person who is convicted under subsection A, paragraph 3, subdivision (a) of this section shall be sentenced to serve at least the minimum sentence term of incarceration required pursuant to section 28‑1381, except that if a person has been convicted of at least two prior violations of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, or convicted of at least two prior acts in another jurisdiction that if committed in this state would be violations of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, within a sixty month period, the person shall be sentenced to serve at least the minimum sentence required pursuant to this section.

G. In addition to any other penalty provided by law, A person who is convicted under subsection A, paragraph 3, subdivision (b) of this section shall be sentenced to serve at least the minimum sentence term of incarceration required pursuant to section 28‑1382, except that if a person has been convicted of at least two prior violations of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, or convicted of at least two prior acts in another jurisdiction that if committed in this state would be a violation of section 28‑1381, section 28‑1382 or this section, or any combination of those sections, within a sixty month period, the person shall be sentenced to serve at least the minimum sentence required pursuant to this section.

H. A person who is convicted of a violation of this section shall attend and complete alcohol or other drug screening, education or treatment from an approved facility. If the person fails to comply with this subsection and is placed on probation, in addition to the provisions of section 13‑901 the court may order that the person be incarcerated as a term of probation as follows:

1. For a person sentenced pursuant to subsection D of this section, for an individual period of not more than four months and a total period of not more than one year.

2. For a person sentenced pursuant to subsection E of this section, for an individual period of not more than eight months and a total period of not more than two years.

I. The time that a person spends in custody pursuant to subsection H of this section shall not be counted towards the sentence imposed if the person's probation is revoked and the person is sentenced to prison after revocation of probation.

J. On a conviction for a violation of this section, the court:

1. Shall report the conviction to the department. On receipt of the report, the department shall revoke the driving privilege of the person. The department shall not issue the person a new driver license within three years of the date of the conviction and, for a conviction of a violation of subsection A, paragraph 1 or 2 or paragraph 3, subdivision (b) of this section, shall require the person to equip any motor vehicle the person operates with a certified ignition interlock device pursuant to section 28‑3319. In addition, the court may order the person to equip any motor vehicle the person operates with a certified ignition interlock device for more than twelve months beginning on the date of reinstatement of the person's driving privilege following a suspension or revocation or on the date of the department's receipt of the report of conviction, whichever occurs later. The person who operates a motor vehicle with a certified ignition interlock device under this paragraph shall comply with article 5 of this chapter.

2. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of two hundred fifty dollars. If the conviction occurred in the superior court or a justice court, the court shall transmit the monies received pursuant to this paragraph to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the monies received pursuant to this paragraph to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer. The state treasurer shall deposit the monies received in the driving under the influence abatement fund established by section 28‑1304. Any fine imposed for a violation of this section and any assessments, restitution and incarceration costs shall be paid before the assessment prescribed in this paragraph.

3. Shall order the person to pay a fine of not less than seven hundred fifty dollars.

4. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of one thousand five hundred dollars to be deposited by the state treasurer in the prison construction and operations fund established by section 41‑1651. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

5. In addition to any other penalty prescribed by law, shall order the person to pay an additional assessment of one thousand five hundred dollars to be deposited by the state treasurer in the state general fund. This assessment is not subject to any surcharge. If the conviction occurred in the superior court or a justice court, the court shall transmit the assessed monies to the county treasurer. If the conviction occurred in a municipal court, the court shall transmit the assessed monies to the city treasurer. The city or county treasurer shall transmit the monies received to the state treasurer.

K. After completing the period of suspension required by section 28‑1385, a person whose driving privilege is revoked for a violation of subsection A, paragraph 3 of this section may apply to the department for a special ignition interlock restricted driver license pursuant to section 28‑1401.

K. L. Aggravated driving or actual physical control while under the influence of intoxicating liquor or drugs committed under:

1. Subsection A, paragraph 1 or 2 of this section is a class 4 felony.

2. Subsection A, paragraph 3 of this section is a class 6 felony.

L. M. For the purposes of this section, "suspension, cancellation, revocation or refusal" means any suspension, cancellation, revocation or refusal. END_STATUTE

Sec. 16. Repeal

Section 28-1383, Arizona Revised Statutes, as amended by Laws 2005, chapter 312, section 4, is repealed.

Sec. 17. Section 28-1385, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1385. Administrative license suspension for driving under the influence; report; hearing; summary review

A. A law enforcement officer shall forward to the department a certified report as prescribed in subsection B of this section, subject to the penalty for perjury prescribed by section 28‑1561, if both of the following occur:

1. The officer arrests a person for a violation of section 4‑244, paragraph 33 36, section 28‑1381, section 28‑1382 or section 28‑1383.

2. The person submits to a blood or breath alcohol test permitted by section 28‑1321, the results of which indicate either:

(a) 0.08 or more alcohol concentration in the person's blood or breath.

(b) 0.04 or more alcohol concentration in the person's blood or breath if the person was driving or in actual physical control of a commercial motor vehicle.

B. The officer shall make the certified report required by subsection A of this section on forms supplied or approved by the department. The report shall state information that is relevant to the enforcement action, including:

1. Information that adequately identifies the arrested person.

2. A statement of the officer's grounds for belief that the person was driving or in actual physical control of a motor vehicle in violation of section 4‑244, paragraph 33 36, section 28‑1381 or section 28‑1382.

3. A statement that the person was arrested for a violation of section 4‑244, paragraph 33 36, section 28‑1381, section 28‑1382 or section 28‑1383.

4. A report of the results of the chemical test that was administered.

C. The officer shall also serve an order of suspension on the person on behalf of the department. The order of suspension:

1. Is effective fifteen days after the date it is served.

2. Shall require the immediate surrender of any license or permit to drive that is issued by this state and that is in the possession or control of the person.

3. Shall contain information concerning the right to a summary review and hearing, including information concerning the hearing as required by section 28‑1321, subsections G and H.

4. Shall be accompanied by printed forms ready to mail to the department that the person may fill out and sign to indicate the person's desire for a hearing.

5. Shall be entered on the department's records on receipt of the report by the officer and a copy of the order of suspension.

D. If the license or permit is not surrendered pursuant to subsection C of this section, the officer shall state the reason for the nonsurrender. If a valid license or permit is surrendered, the officer shall issue a temporary driving permit that is valid for fifteen days. The officer shall forward a copy of the completed order of suspension, a copy of any completed temporary permit and any driver license or permit taken into possession under this section to the department within five days after the issuance of the order of suspension along with the report.

E. The department shall suspend the affected person's license or permit to drive or right to apply for a license or permit or any nonresident operating privilege for not less than ninety consecutive days from that date.

F. Notwithstanding subsections A through E of this section, the department shall suspend the driving privileges of the person described in subsection A of this section for not less than thirty consecutive days and shall restrict the driving privileges of the person for not less than sixty consecutive additional days to travel between the person's place of employment and residence and during specified periods of time while at employment, to travel between the person's place of residence and the person's secondary or postsecondary school, according to the person's employment or educational schedule, to travel between the person's place of residence and the office of the person's probation officer for scheduled appointments or to travel between the person's place of residence and a treatment facility for scheduled appointments if the person:

1. Did not cause serious physical injury as defined in section 13‑105 to another person during the course of conduct out of which the current action arose.

2. Has not been convicted of a violation of section 28‑1381, 28‑1382 or 28‑1383 within sixty eighty-four months of the date of commission of the acts out of which the current action arose. The dates of commission of the acts are the determining factor in applying the sixty eighty-four month provision.

3. Has not had the person's privilege to drive suspended pursuant to this section or section 28‑1321 within sixty eighty-four months of the date of commission of the acts out of which the current action arose.

G. If the department receives only the report of the results of the blood or breath alcohol test and the results indicate 0.08 or more alcohol concentration in the person's blood or breath, or show a blood or breath alcohol concentration of 0.04 or more and the person was driving or in actual physical control of a commercial motor vehicle, the department shall notify the person named in the report in writing sent by mail that fifteen days after the date of issuance of the notice the department will suspend the person's license or permit, driving privilege or nonresident driving privilege. The notice shall also state that the department will provide an opportunity for a hearing and administrative review if the person requests a hearing or review in writing and the request is received by the department within fifteen days after the notice is sent.

H. A timely request for a hearing stays the suspension until a hearing is held, except that the department shall not return any surrendered license or permit to the person but may issue temporary permits to drive that expire no later than when the department has made its final decision. If the person is a resident without a license or permit or has an expired license or permit, the department may allow the person to apply for a license or permit. If the department determines the person is otherwise entitled to the license or permit, the department shall issue, but retain, the license or permit, subject to this section. All hearings requested under this section shall be conducted in the same manner and under the same conditions as provided in section 28‑3306.

I. For the purposes of this section, the scope of the hearing shall include only the following issues:

1. Whether the officer had reasonable grounds to believe the person was driving or was in actual physical control of a motor vehicle while under the influence of intoxicating liquor.

2. Whether the person was placed under arrest for a violation of section 4‑244, paragraph 33 36, section 28‑1381, section 28‑1382 or section 28‑1383.

3. Whether a test was taken, the results of which indicated the alcohol concentration in the person's blood or breath at the time the test was administered of either:

(a) 0.08 or more.

(b) 0.04 or more if the person was driving or in actual physical control of a commercial motor vehicle.

4. Whether the testing method used was valid and reliable.

5. Whether the test results were accurately evaluated.

J. The results of the blood or breath alcohol test shall be admitted on establishing the requirements in section 28‑1323 or 28‑1326.

K. If the department determines at the hearing to suspend the affected person's privilege to operate a motor vehicle, the suspension provided in this section is effective fifteen days after giving written notice of the suspension, except that the department may issue or extend a temporary license that expires on the effective date of the suspension. If the person is a resident without a license or permit or has an expired license or permit to operate a motor vehicle in this state, the department shall deny the issuance of a license or permit to the person for not less than ninety consecutive days.

L. A person may apply for a summary review of an order issued pursuant to this section instead of a hearing at any time before the effective date of the order. The person shall submit the application in writing to any department driver license examining office together with any written explanation as to why the department should not suspend the driving privilege. The agent of the department receiving the notice shall issue to the person an additional driving permit that expires twenty days from the date the request is received. The department shall review all reports submitted by the officer and any written explanation submitted by the person and shall determine if the order of suspension should be sustained or cancelled. The department shall not hold a hearing, and the review is not subject to title 41, chapter 6. The department shall notify the person of its decision before the temporary driving permit expires.

M. If the suspension or determination that there should be a denial of issuance is not sustained after a hearing or review, the ruling is not admissible in and does not have any effect on any civil or criminal court proceeding.

N. If it has been determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, the department shall give information in writing of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which the person has a license.END_STATUTE

Sec. 18. Section 28-1387, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1387. Prior convictions; alcohol or other drug screening, education and treatment; license suspension; supervised probation; civil liability; procedures

A. The court shall allow the allegation of a prior conviction or any other pending charge of a violation of section 28‑1381, 28‑1382 or 28‑1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28‑1381, 28‑1382 or 28‑1383 filed twenty or more days before the date the case is actually tried and may allow the allegation of a prior conviction or any other pending charge of a violation of section 28‑1381, 28‑1382 or 28‑1383 or an act in another jurisdiction that if committed in this state would be a violation of section 28‑1381, 28‑1382 or 28‑1383 filed at any time before the date the case is actually tried if this state makes available to the defendant when the allegation is filed a copy of any information obtained concerning the prior conviction or other pending charge. Any conviction may be used to enhance another conviction irrespective of the dates on which the offenses occurred within the sixty eighty-four month provision. For the purposes of this article, an order of a juvenile court adjudicating a person delinquent is equivalent to a conviction.

B. In addition to any other penalties prescribed by law, the judge shall order a person who is convicted of a violation of section 28‑1381 or 28‑1382 to complete alcohol or other drug screening that is provided by a facility approved by the department of health services or a probation department. If a judge determines that the person requires further alcohol or other drug education or treatment, the person may be required pursuant to court order to obtain alcohol or other drug education or treatment under the court's supervision from an approved facility. The judge may review an education or treatment determination at the request of the state, the defendant or the probation officer or on the judge's initiative. The person shall pay the costs of the screening, education or treatment unless, after considering the person's ability to pay all or part of the costs, the court waives all or part of the costs. If a person is referred to a screening, education or treatment facility, the facility shall report to the court whether the person has successfully completed the screening, education or treatment program.

C. After a person who is sentenced pursuant to section 28‑1381, subsection I has served twenty‑four consecutive hours in jail or after a person who is sentenced pursuant to section 28‑1381, subsection K or section 28‑1382, subsection D or F has served forty‑eight consecutive hours in jail and after the court receives confirmation that the person is employed or is a student, the court may provide in the sentence that the defendant, if the defendant is employed or is a student and can continue the defendant's employment or schooling, may continue the employment or schooling for not more than twelve hours a day nor more than five days a week. The person shall spend the remaining day, days or parts of days in jail until the sentence is served and shall be allowed out of jail only long enough to complete the actual hours of employment or schooling.

D. Unless the license of a person convicted under section 28‑1381 or 28‑1382 has been or is suspended pursuant to section 28‑1321 or 28‑1385, the department on receipt of the abstract of conviction of a violation of section 28‑1381 or 28‑1382 shall suspend the license of the affected person for not less than ninety consecutive days.

E. When the department receives notification that the person meets the criteria provided in section 28‑1385, subsection F, the department shall suspend the driving privileges of the person for not less than thirty consecutive days and shall restrict the driving privileges of the person for not less than sixty consecutive additional days to travel between any of the following:

1. The person's place of employment and residence and during specified periods of time while at employment.

2. The person's place of residence and the person's secondary or postsecondary school, according to the person's employment or educational schedule.

3. The person's place of residence and a treatment facility for scheduled appointments.

4. The person's place of residence and the office of the person's probation officer for scheduled appointments.

F. If a person is placed on probation for violating section 28‑1381 or 28‑1382, the probation shall be supervised unless the court finds that supervised probation is not necessary or the court does not have supervisory probation services.

G. Any political subdivision processing or using the services of a person ordered to perform community restitution pursuant to section 28‑1381 or 28‑1382 does not incur any civil liability to the person ordered to perform community restitution as a result of these activities unless the political subdivision or its agent or employee acts with gross negligence.

H. Except for another violation of this article, the state shall not dismiss a charge of violating any provision of this article unless there is an insufficient legal or factual basis to pursue that charge. END_STATUTE

Sec. 19. Section 28-3304, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3304. Mandatory revocation of license; definition

A. In addition to the grounds for mandatory revocation provided for in chapters 3, 4 and 5 of this title, the department shall immediately revoke the license of a driver on receipt of a record of the driver's conviction of any of the following offenses if the conviction is final:

1. A homicide or aggravated assault resulting from the operation of a motor vehicle.

2. Driving a motor vehicle while under the influence of a drug as defined in section 13‑3401 or in violation of section 28‑1381, subsection A, paragraph 3.

3. A felony in the commission of which a motor vehicle is used.

4. Theft of a motor vehicle pursuant to section 13‑1802.

5. Unlawful use of means of transportation pursuant to section 13‑1803.

6. Theft of means of transportation pursuant to section 13‑1814.

7. Drive by shooting pursuant to section 13‑1209.

8. Failure to stop and render aid as required under the laws of this state if a motor vehicle accident results in the death or personal injury of another.

9. Perjury or the making of a false affidavit or statement under oath to the department under this chapter or under any other law relating to the ownership or operation of a motor vehicle.

10. Conviction or forfeiture of bail not vacated on a second or subsequent charge of the following offenses that are committed within sixty eighty-four months:

(a) Reckless driving.

(b) Racing on highways.

(c) Any combination of a violation of section 28‑1381 or 28‑1382 and reckless driving, of a violation of section 28‑1381 or 28‑1382 and racing on highways, or of reckless driving and racing on highways, if they do not arise out of the same event.

11. Conviction or forfeiture of bail not vacated on a second charge of violating section 28‑1381 or 28‑1382 within sixty eighty-four months.

12. Conviction or forfeiture of bail not vacated on a third or subsequent charge of violating section 28‑1381 or 28‑1382 within sixty eighty-four months.

13. Conviction or forfeiture of bail not vacated on a charge of violating section 28‑1381 or 28‑1382 and the driver has been convicted within a period of sixty eighty-four months of an offense in another jurisdiction that if committed in this state would be a violation of section 28‑1381 or 28‑1382.

B. In determining the starting date for the sixty eighty-four month period prescribed in subsection A, paragraphs 10 through 13 of this section, the department shall use the date of the commission of the offense.

C. For the purposes of this section, "conviction" means a final adjudication or judgment, including an order of a juvenile court finding that a juvenile violated any provision of this title or committed a delinquent act that if committed by an adult would constitute a criminal offense.END_STATUTE

Sec. 20. Section 28-3319, Arizona Revised Statutes, as amended by Laws 2005, chapter 312, section 12, is amended to read:

START_STATUTE28-3319. Action after license suspension, revocation or denial for driving under the influence or refusal of test; ignition interlock device requirement; definition

A. If pursuant to section 28‑1321, 28‑1381, 28‑1382, 28‑1383, 28‑3320 or 28-3322 the license of a driver or the driving privilege of a nonresident is suspended or revoked, the department shall not terminate the suspension or revocation or issue a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title until the person provides proof of financial responsibility pursuant to chapter 9, article 3 of this title.

B. If pursuant to section 28‑1321, 28‑1381, 28‑1382, 28‑1383, 28‑3320 or 28-3322, an unlicensed resident is denied a license or permit to operate a motor vehicle, the department shall not issue a license or permit until the person provides proof of financial responsibility pursuant to chapter 9, article 3 of this title.

C. If a person whose license or driving privilege is suspended or revoked pursuant to section 28‑1321, 28‑1381, 28‑1382 or 28‑1383 is ordered, pursuant to section 28‑1381, 28‑1382 or 28‑1383, to attend alcohol or other drug screening, education or treatment, the department shall not either:

1. Terminate the suspension or issue a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title until the person provides proof from the treatment facility that the person has completed or is participating satisfactorily in alcohol or other drug screening, education or treatment.

2. Issue a new license or a special ignition interlock restricted driver license, if applicable, pursuant to chapter 4, article 3.1 of this title to operate a motor vehicle after the revocation until the person provides proof from the facility that the person has completed the court ordered program.

D. On receipt of a report of conviction from a court, the department shall require any motor vehicle the convicted person operates to be equipped with a functioning certified ignition interlock device and the convicted person to meet the requirements prescribed in section 28‑1461 for twelve months if any of the following applies:

1. The department determines that within a period of sixty eighty-four months a person is convicted of a second or subsequent violation of section 28‑1381 with a prior conviction of a violation of section 28‑1381 or 28‑1382 or an act in another jurisdiction that if committed in this state would be a violation of section 28‑1381 or 28‑1382.

2. The conviction is for a violation of section 28‑1382.

3. The conviction is for a violation of section 28‑1383, subsection A, paragraph 1 or 2 or paragraph 3, subdivision (b).

E. The twelve month period prescribed in subsection D of this section begins on the date of reinstatement of the person's driving privilege following a suspension or revocation or on the date of the department's receipt of the report of conviction, whichever occurs later.

F. A person who is required to equip a motor vehicle with a certified ignition interlock device pursuant to subsection D of this section shall comply with chapter 4, article 5 of this title.

G. For the purposes of this section, "certified ignition interlock device" has the same meaning prescribed in section 28‑1301.END_STATUTE

Sec. 21. Section 28-3320, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3320. Suspension of license for persons under eighteen years of age; notice; definition

1. For a period of two years on receiving the record of the person's conviction for a violation of section 4‑244, paragraph 33 36, section 28‑1381 or section 28‑1382.

2. For a period of three years on receiving the record of the person's conviction for a violation of section 28‑1383.

3. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of section 13‑1602, subsection A, paragraph 1 or section 13‑1604, subsection A involving the damage or disfigurement of property by graffiti.

4. Until the person's eighteenth birthday on receiving the record of the person's conviction of criminal damage pursuant to section 13‑1602, subsection A, paragraph 5 or a violation of a city or town ordinance that prohibits the type of criminal action prescribed in section 13‑1602, subsection A, paragraph 5.

5. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of any statute or ordinance involving the purchase or possession of materials used for graffiti.

6. Until the person's eighteenth birthday on receiving the record of the person's conviction for a violation of any provision of title 13, chapter 34.

7. Until the person's eighteenth birthday or for a period of two years on receiving the record of the person's conviction for a second or subsequent violation of section 4‑244, paragraph 9, if ordered by the court.

8. Until the person's eighteenth birthday on receiving the record of the person's conviction of theft of a motor vehicle pursuant to section 13‑1802, unlawful use of means of transportation pursuant to section 13‑1803 or theft of means of transportation pursuant to section 13‑1814.

B. If ordered by the court, the department shall restrict the person's privilege to drive between the person's home, school and place of employment during specified periods of time according to the person's school and employment schedule.

C. If a person commits an offense prescribed in subsection A, paragraph 1 of this section and the person's privilege to drive is restricted as prescribed in subsection B of this section, the department shall issue a special ignition interlock restricted driver license to the person pursuant to section 28‑1401.

D. For the purposes of this section, "conviction" means a final conviction or judgment, including an order of the juvenile court finding that a juvenile violated any provision of this title or committed a delinquent act that if committed by an adult would constitute a criminal offense. END_STATUTE

Sec. 22. Section 28-3322, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3322. Suspension of license for persons eighteen, nineteen and twenty years of age; definition

A. In addition to the grounds for mandatory suspension or revocation provided for in chapters 3, 4 and 5 of this title, the department shall immediately suspend the driver license or privilege to drive or refuse to issue a driver license or privilege to drive of a person who commits a violation of section 4‑244, paragraph 33 36 while the person is eighteen, nineteen or twenty years of age on receipt of the record of the person's conviction for a violation of section 4‑244, paragraph 33 36 for a period of two years.

C. If a person's privilege to drive is restricted as prescribed in subsection B of this section, the department shall issue a special ignition interlock restricted driver license to the person pursuant to section 28‑1401.

Sec. 23. Section 28-3511, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3511. Removal and immobilization or impoundment of vehicle

A. A peace officer shall cause the removal and either immobilization or impoundment of a vehicle if the peace officer determines that a person is driving the vehicle while any of the following applies:

1. The person's driving privilege is revoked for any reason.

2. The person's driving privilege is suspended because of a driving under the influence conviction.

3. The person's driving privilege is suspended pursuant to the department's action based on a previous conviction for a violation of section 28‑3473.

4. The person's driving privilege is suspended pursuant to section 28‑3306, subsection A, paragraph 3.

5. According to department records the person has not ever been issued a driver license or permit and the person does not produce evidence of a driver license issued by another jurisdiction.

B. A peace officer shall cause the removal and impoundment of a vehicle if the peace officer determines that a person is driving the vehicle and if all of the following apply:

1. The person's driving privilege is canceled, suspended or revoked or according to department records the person has not ever been issued a driver license or permit and the person does not produce evidence of a driver license issued by another jurisdiction.

2. The person is not in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

3. The person is driving a vehicle that is involved in an accident that results in either property damage or injury to or death of another person.

C. Except as provided in subsection D of this section, while a peace officer has control of the vehicle the peace officer shall cause the removal and either immobilization or impoundment of the vehicle if the peace officer has probable cause to arrest the driver of the vehicle for a violation of section 4‑244, paragraph 33 36 or section 28‑1382 or 28‑1383.

D. A peace officer shall not cause the removal and either the immobilization or impoundment of a vehicle pursuant to subsection C of this section if either:

1. All of the following apply:

(a) The peace officer determines that the vehicle is currently registered and that the driver or the vehicle is in compliance with the financial responsibility requirements of chapter 9, article 4 of this title.

(b) The spouse of the driver is with the driver at the time of the arrest.

(i) Has a valid driver license.

(ii) Is not impaired by intoxicating liquor, any drug, a vapor releasing substance containing a toxic substance or any combination of liquor, drugs or vapor releasing substances.

(iii) Does not have any spirituous liquor in the spouse's body if the spouse is under twenty‑one years of age.

(d) The spouse notifies the peace officer that the spouse will drive the vehicle from the place of arrest to the driver's home or other place of safety.

(e) The spouse drives the vehicle as prescribed by subdivision (d) of this paragraph.

2. The vehicle is owned by the driver's parent or guardian and the peace officer has probable cause to arrest the driver of the vehicle for a violation of section 4‑244, paragraph 33 36 but not for a violation of section 28‑1382 or 28‑1383.

E. Except as otherwise provided in this article, a vehicle that is removed and either immobilized or impounded pursuant to subsection A, or B or C of this section shall be immobilized or impounded for thirty days. An insurance company does not have a duty to pay any benefits for charges or fees for immobilization or impoundment.

F. The owner of a vehicle that is removed and either immobilized or impounded pursuant to subsection A, or B or C of this section, the spouse of the owner and each person identified on the department's record with an interest in the vehicle shall be provided with an opportunity for an immobilization or poststorage hearing pursuant to section 28‑3514.END_STATUTE

Sec. 24. Section 28-3512, Arizona Revised Statutes, is amended to read:

START_STATUTE28-3512. Release of vehicle; definition

A. An immobilizing or impounding agency shall release a vehicle to the owner before the end of the thirty day immobilization or impoundment period under any of the following circumstances:

1. If the vehicle is a stolen vehicle.

2. If the vehicle is subject to bailment and is driven by an employee of a business establishment, including a parking service or repair garage, who is subject to section 28‑3511, subsection A, or B or C.

3. If the owner presents proof satisfactory to the immobilizing or impounding agency that the owner's driving privilege has been reinstated.

4. All of the following apply:

(a) The owner or the owner's agent was not the person driving the vehicle pursuant to section 28‑3511, subsection A.

(b) The owner or the owner's agent is in the business of renting motor vehicles without drivers.

5. For the spouse of the owner or any person who is identified as an owner of the vehicle on the records of the department, if the spouse or person was not the driver of the vehicle at the time of removal and either immobilization or impoundment and the spouse or person enters into an agreement with the immobilizing or impounding agency that stipulates that if the spouse or person allows an unlicensed driver or a driver arrested in violation of section 4‑244, paragraph 33 36 or section 28‑1382 or 28‑1383 to drive the spouse's or person's vehicle within one year after the agreement is signed, the spouse or person will not be eligible to obtain release of the spouse's or person's vehicle before the end of the thirty day immobilization or impoundment period.

B. A vehicle shall not be released pursuant to subsection A of this section except on order of a justice court, immobilizing agency or impounding agency pursuant to an immobilization or a poststorage hearing under section 28‑3514 or on presentation of the owner's or owner's spouse's currently valid driver license to operate the vehicle and proof of current vehicle registration and, if the driving privilege of the person driving the vehicle was suspended due to a previous conviction for driving under the influence pursuant to section 28‑1381, subsection K, paragraph 4, section 28‑1382 or section 28‑1383 and a certified ignition interlock device was required to be installed on the vehicle, on presentation of proof of installation of a functioning certified ignition interlock device in the vehicle. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall allow access to the impounded vehicle for the purpose of installing a certified ignition interlock device. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall not charge a fee for providing access to the vehicle or for the installation of the certified ignition interlock device.

C. The owner is responsible for paying all immobilization, towing and storage charges related to the immobilization or impoundment of the vehicle and any administrative charges established pursuant to section 28‑3513, unless the vehicle is stolen and the theft was reported to the appropriate law enforcement agency. If the vehicle is stolen and the theft was reported to the appropriate law enforcement agency, the operator of the vehicle at the time of immobilization or impoundment is responsible for all immobilization, towing, storage and administrative charges.

D. The immobilizing or impounding agency shall release a vehicle to a person, other than the owner, identified on the department's record as having an interest in the vehicle before the end of the thirty day immobilization or impoundment period if all of the following conditions are met:

1. The person is a motor vehicle dealer, bank, credit union or acceptance corporation or any other licensed financial institution legally operating in this state or is another person who is not the owner and who holds a security interest in the vehicle.

2. The person pays all immobilization, towing and storage fees related to the immobilization or impoundment of the vehicle unless the vehicle is stolen and the theft was reported to the appropriate law enforcement agency. If the vehicle is stolen and the theft was reported to the appropriate law enforcement agency, the operator of the vehicle at the time of immobilization or impoundment is responsible for all immobilization, towing, storage and administrative charges.

3. The person presents foreclosure documents or an affidavit of repossession of the vehicle.

E. Before a person described in subsection D of this section releases the vehicle, the person may require the owner to pay charges that the person incurred in connection with obtaining custody of the vehicle, including all immobilization, towing and storage charges that are related to the immobilization or impoundment of the vehicle and any administrative charges that are established pursuant to section 28‑3513.

F. A vehicle shall not be released after the end of the thirty day immobilization or impoundment period except on presentation of the owner's or owner's agent's currently valid driver license to operate the vehicle and proof of current vehicle registration and, if the driving privilege of the person driving the vehicle was suspended due to a previous conviction for driving under the influence pursuant to section 28‑1381, subsection K, paragraph 4, section 28‑1382 or section 28‑1383 and a certified ignition interlock device was required to be installed on the vehicle, on presentation of proof of installation of a functioning certified ignition interlock device in the vehicle. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall allow access to the impounded vehicle for the purpose of installing a certified ignition interlock device. The impounding agency, storage yard, facility, person or agency having physical possession of the vehicle shall not charge a fee for providing access to the vehicle or for the installation of the certified ignition interlock device.

G. The storage charges relating to the impoundment of a vehicle pursuant to this section shall either:

1. Be subject to a contractual agreement between the impounding agency and a towing firm for storage services pursuant to section 28‑1108.

2. Not exceed fifteen dollars for each day of storage.

H. The immobilizing or impounding agency shall have no lien or possessory interest in a stolen vehicle if the theft was reported to the appropriate law enforcement agency. The immobilizing or impounding agency shall release the vehicle to the owner or person other than the owner as identified in subsection D of this section even if the operator at the time of immobilization or impoundment has not paid all immobilization, towing, storage and administrative fees.

I. For the purposes of this section, "certified ignition interlock device" has the same meaning prescribed in section 28‑1301.

Sec. 25. Laws 2005, chapter 284, section 15, is amended to read:

Sec. 15. Temporary transfers of licenses

Between July 1, 2006 and December 31, 2007 2008, bar, beer and wine bar and liquor store licenses may be transferred from counties with a population of five hundred thousand or more persons to counties with a population of less than five hundred thousand persons.

Sec. 26. Applicability of audit provisions

Section 4-213, Arizona Revised Statutes, as amended by this act, does not apply to any audit or disciplinary action completed or any consent agreement signed before January 1, 2006.

Sec. 27. Reporting requirement

The department of liquor licenses and control shall submit a report to the governor, the president of the senate and the speaker of the house of representatives on or before November 1, 2007 and shall provide a copy of this report to the director of the Arizona state library, archives and public records regarding the impact of sections 4-207, 4-209 and 4-213, Arizona Revised Statutes, as amended by this act. The department of liquor licenses and control shall solicit input from neighborhood groups and local jurisdictions before issuing the report.

Sec. 28. Conditional enactment; notice

A. Sections 4-207, 4-209, 4-213 and 28-1304, Arizona Revised Statutes, as amended by this act, and section 26 of this act, relating to applicability of audit provisions, do not become effective unless the forty-seventh legislature, second regular session, specifically authorizes the department of liquor licenses and control to hire two additional auditors in the general appropriations act.

B. The director of the department of liquor licenses and control shall notify in writing the director of the Arizona legislative council of the date on which this condition occurs or if this condition does not occur.