Fifty-fifth Legislature                                                  Commerce

First Regular Session                                                   H.B. 2773

 

COMMITTEE ON COMMERCE

SENATE AMENDMENTS TO H.B. 2773

(Reference to House engrossed bill)

 


Page 5, between lines 31 and 32, insert:

"31. "registered alcohol delivery contractor" mean a person who delivers spirituous liquor to a consumer on behalf of a bar or restaurant."

Renumber to conform

Page 6, strike lines 18 through 21

Renumber to conform

Between lines 40 and 41, insert:

"Sec. 2. Title 4, chapter 1, article 2, Arizona Revised Statutes, is amended by adding section 4-121, to read:

START_STATUTE4-121. Liquor license compensation fund

A. THE LIQUOR LICENSE COMPENSATION FUND IS ESTABLISHED CONSISTING OF MONIES DEPOSITED PURSUANT TO SECTION 4-206.01, SUBSECTION U. THE DIRECTOR SHALL ADMINISTER THE FUND FOR THE PURPOSES OF COMPENSATING AN ELIGIBLE BAR OR LIQUOR STORE LICENSEE. Monies in the fund are continuously appropriated.

B. BAR AND LIQUOR STORE LICENSEEs ARE ELIGIBLE FOR COMPENSATION FROM THE LIQUOR LICENSE COMPENSATION FUND IF THE BAR OR LIQUOR STORE LICENSE WAS ISSUED ON OR BEFORE MARCH 20, 2021.

C. BEGINNING JANUARY 1, 2022, THE DEPARTMENT SHALL DETERMINE THE NUMBER OF ELIGIBLE BAR AND LIQUOR STORE licensees IN THis STATE.  WITHIN NINETY DAYS OF ANY DEPOSIT IN THE LIQUOR LICENSE COMPENSATION FUND, THE DIRECTOR SHALL DISBURSE, IN EQUAL AMOUNTS, ALL monies DEPOSITED IN THE FUND TO ELIGIBLE BAR AND LIQUOR STORE LICENSEes IN THIS STATE."

Renumber to conform

Page 11, line 22, strike "through a third-party facilitator,"

Line 42, strike "third-party facilitators licensed" insert "alcohol delivery contractors registered"

Line 43, after "is" insert "packaged and sealed by the bar or restaurant licensee or the licensee's employee,"

Page 12, line 1, after "be" insert "sealed and"

Line 6, after "liquor" strike remainder of line

Line 7, strike "a licensed third-party facilitator"

Line 8, after the second "or" insert "authorized"; strike "an authorized"

Line 9, strike "third-party facilitator" insert "a registered alcohol delivery contractor"

Line 13, strike "or third-party facilitator"

Line 20, strike "other authorized third-party"

Line 21, strike "facilitator" insert "a registered alcohol delivery contractor"

   Between lines 25 and 26, insert:

"Sec. 3. Title 4, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 4-203.06, to read:

START_STATUTE4-203.06. Mixed cocktail privileges; off-sale privileges; leases; fees

A. Notwithstanding section 4-203, subsection E, through December 31, 2025, a bar licensee and a liquor store licensee shall make available for lease through the department a permit to a restaurant licensee for the privilege of selling mixed cocktails for consumption off the licensed premises in accordance with section 4-244, paragraph 32, subdivision (d). The lease shall be for a period of one year and shall be renewable for successive terms of one year. The department shall set the fee for lease payments.

B. Notwithstanding section 4-203, subsection E, a bar licensee may lease the off-sale privileges associated with the license to a restaurant licensee. The lease shall be for a period of one year and shall be renewable for successive terms of one year. The department shall set the fee for lease payments.

C. Leases made pursuant to subsections A and B of this section are subject to the following conditions:

1. A restaurant licensee may apply to the department on a form prescribed and provided by the department to lease off-sale privileges or a permit for the privilege of selling mixed cocktails for consumption off the licensed premises pursuant to 4-244, paragraph 32, subdivision (d).

2. Upon the director approving the application of a restaurant licensee, the director shall randomly select a bar or liquor store license for the lease of the licensee's privileges or permit to the restaurant licensee through the department.

3. The department shall establish a process to facilitate the lease conveyance and to govern the leases, including the lease content, a standard form of lease and responsibilities of the lessor and lessee.

4. The director may deny approval of a lease based on the proposed location of the lease or on the history of the restaurant establishment.

5. A restaurant licensee shall pay all lease payments in full in advance.

6. During the term of the lease all violations and liability for liquor service under the leased privilege or permit shall be attributed only to the restaurant licensee leasing the privilege or permit. The director may immediately suspend any lease for any violation of this title or any rule adopted pursuant to this title by the restaurant licensee.

6. During the term of a lease pursuant to subsection a or b of this section, a bar or liquor store lessor may sell spirituous liquor as authorized by the bar or liquor store license and mixed cocktails to go pursuant to  section 4-244, paragraph 32, subdivision (d).

D. Beginning january 1, 2026, the director shall make available for the restaurant licensee to purchase from the department permits to sell mixed cocktails pursuant to section 244, paragraph 32, subdivision (d) equal in number to the number of total bar and liquor store licensees. The director shall set the annual renewal fee for a mixed cocktail privilege permit."

Renumber to conform

Page 14, line 13, strike "for a" insert "to purchase a to-go cocktails"

Line 18, strike "the permit" insert "a permit pursuant to section 4-206.01, subsection R or allow an applicant to bid on a to-go cocktails permit pursuant to section 4-206.01, subsection p"

Line 21, strike "applicants for the"; after "permit" insert "holders"

Strike lines 27 through 31

Reletter to conform

Strike page 15

Page 16, strike lines 1 through 21, insert:

"Sec. 5. Title 4, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 4-205.13, to read:

START_STATUTE4-205.13. Registered alcohol delivery contractor; issuance; fee; regulatory provisions

A. THE DIRECTOR MAY REGISTER ANY PERSON IN THIS STATE AS AN ALCOHOL DELIVERY CONTRACTOR FOR THE PURPOSEs OF DELIVERING SPIRITuOUS LIQUOR FROM A BAR OR RESTAURANT LICENSEE TO A CONSUMER IN THIS STATE PURSUANT TO SECTION 4-203, SUBSECTIONs S and T.

B. A PERSON SHALL APPLY TO BE A REGISTERED ALCOHOL DELIVERY CONTRACTOR ON A FORM PRESCRIBED BY THE DIRECTOR. THE DIRECTOR SHALL REQUIRE AN applicant TO PROVIDE THE CONTROLLING PERSON's IDENTIFICATION AND any BACKGROUND INFORMATION DEEMED NECESSARY TO IDENTIFY THE person AND TO DEMONSTRATE PROOF OF THE person's AUTHORITY TO CONDUCT BUSINESS IN THIS STATE, INCLUDING COPIES OF ANY REQUIRED STATE OR LOCAL BUSINESS LICENSES OR PERMITS.  THE DIRECTOR MAY ESTABLISH AND CHARGE A REGISTRATION FEE AND RENEWAL FEE TO BE USED FOR ADMINISTRATIVE AND ENFORCEMENT COSTS ASSOCIATED WITH ALCOHOL DELIVERY CONTRACTORS.

C. THE DEPARTMENT SHALL MAINTAIN A LIST OF registered ALCOHOL DELIVERY CONTRACTORS that ARE NOT OTHERWISE IN PENALTY STATUS PURSUANT TO SUBSECTION G OF THIS SECTION.

D. THE DEPARTMENT MAY REQUIRE NEW registered ALCOHOL DELIVERY CONTRACTORS TO COMPLETE AN APPROVED TRAINING COURSE IN ACCORDANCE WITH SECTION 4-112, SUBSECTION G, PARAGRAPH 2.  A registered ALCOHOL DELIVERY CONTRACTOR IS SUBJECT TO EXAMINATIONS CONDUCTED PURSUANT TO SECTION 4-112, SUBSECTION G, PARAGRAPH 1.

E. THE DIRECTOR MAY REFUSE TO REGISTER A PERSON AS AN ALCOHOL DELIVERY CONTRACTOR FOR GOOD CAUSE AND MAY NOT REGISTER ANY PERSON AS AN ALCOHOL DELIVERY CONTRACTOR if the person HAS BEEN CONVICTED OF A FELONY IN THIS STATE OR ANY OTHER STATE WITHIN FIVE YEARS IMMEDIATELY PRECEDING THE APPLICATION.

F. A REGISTERED ALCOHOL DELIVERY CONTRACTOR MAY DELIVER SPIRITUOUS LIQUOR TO A CONSUMER IN THIS STATE ON BEHALF OF A BAR OR RESTAURANT IN THIS STATE PURSUANT TO SECTION 4-203, SUBSECTIONS S AND T, IF THE registered ALCOHOL DELIVERY CONTRACTOR COMPLIES WITH THIS CHAPTER.  A REGISTERED ALCOHOL DELIVERY CONTRACTOR MAY CONTRACT WITH ONE OR MORE INDEPENDENT CONTRACTORS FOR THE DELIVERY OF SPIRITuOUS LIQUOR TO A CONSUMER IN THIS STATE ON BEHALF OF A BAR OR RESTAURANT IN THIS STATE PURSUANT TO SECTION 4-203, SUBSECTIONS S AND T.

G. IN ADDITION TO ALL OTHER ACTIONS THAT MAY BE TAKEN BY THE DIRECTOR FOR A VIOLATION OF THIS TITLE OR THE RULES ADOPTED PURSUANT TO THIS TITLE BY A registered ALCOHOL DELIVERY CONTRACTOR, THE DEPARTMENT MAY LIMIT THE RIGHT OF THE CONTRACTOR TO DELIVER SPIRITUOUS LIQUOR ON BEHALF OF A LICENSEE FOR A PERIOD OF UP TO ONE YEAR, AFTER WHICH THE ALCOHOL DELIVERY CONTRACTOR SHALL REGISTER WITH THE DEPARTMENT TO RESUME DELIVERY OF SPIRITUOUS LIQUOR.  ANY PENALTY ISSUED PURSUANT TO THIS SUBSECTION MAY BE APPEALED TO THE BOARD PURSUANT TO SECTION 4-210.02."END_STATUTE

Page 18, line 41, strike "L" insert "K"

Page 20, strike lines 16 through 18, insert:

"N. ON OR BEFORE DECEMBER 1, 2021, THE DIRECTOR SHALL DETERMINE THE TOTAL NUMBER OF BAR AND LIQUOR STORE LICENSES IN THis STATE.

O. BEGINNING JANUARY 1, 2022, THE DIRECTOR SHALL MAKE AVAILABLE FOR PURCHASE, BY RESTAURANT LICENSEES, TO-GO COCKTAILS PERMITS PURSUANT TO SECTION 4-205.02, SUBSECTION J, EQUAL IN NUMBER TO THE TOTAL BAR AND LIQUOR STORE LICENSES AS DETERMINED pursuant to SUBSECTION N OF THIS SECTION. Before bidding on a to-go cocktails permit at an auction conducted pursuant to subsection P of this section, a restaurant applicant or licensee must complete the form prescribed by the director and be approved by the director pursuant to section 4-205.02, subsection J.

P. TO-GO COCKTAILS PERMITS OFFERED FOR SALE PURSUANT TO SUBSECTION o OF THIS SECTION SHALL BE MADE AVAILABLE FOR SALE THROUGH AN AUCTION that meets the following requirements:

1. A REPRESENTATIVE OF THE DEPARTMENT SHALL ATTEND AT THE TIME AND PLACE, INCLUDING THROUGH THE INTERNET, FIXED FOR THE SALE AND PROCEED BY FIRST ANNOUNCING INFORMATION RELEVANT TO THE SALE SUFFICIENT, IN THE REPRESENTATIVE'S JUDGMENT, TO BEGIN THE BIDDING PROCESS, THEN CALLING FOR BIDS.

2. THE AUCTION MAY TAKE PLACE OVER A PERIOD NOT TO EXCEED SEVEN DAYS.

3. DURING THE AUCTION, THE DEPARTMENT SHALL PUBLISH THE CURRENT NUMBER OF BIDS AND THE BID AMOUNTS.

Q. THE DEPARTMENT SHALL PREPARE A WRITTEN REPORT OF THE SALE pursuant to subsection P of this section AND, on or before May 31, 2022, shall DETERMINE THE AVERAGE AUCTION PRICE FOR the TO-GO COCKTAILS PERMITs.

R. BEGINNING JUNE 1, 2022, THE DEPARTMENT SHALL MAKE AVAILABLE FOR PURCHASE, BY RESTAURANT LICENSE HOLDERS AND APPLICANTS, ONE TO-GO COCKTAILS PERMIT FOR EACH ADDITIONAL BAR or LIQUOR STORE LICENSE ISSUED PURSUANT TO SUBSECTION B OF THIS SECTION.  FOR EVERY TO-GO COCKTAILS PERMIT THAT HAS BEEN REVOKED OR REVERTED, THE DIRECTOR MAY ISSUE A NEW TO-GO COCKTAILS PERMIT.  THE DIRECTOR MAY WAIVE THE ISSUANCE OF NEW TO-GO COCKTAILS PERMITS FOR ONE YEAR IF THERE HAS BEEN NO REQUEST MADE TO THE DEPARTMENT to issue A NEW TO-GO COCKTAILS PERMIT.

S. A PERSON ISSUED A TO-GO COCKTAILS PERMIT pursuant to subsection R OF THIS SECTION SHALL PAY AN ISSUANCE FEE EQUAL TO THE AVERAGE AUCTION PRICE AS DETERMINED BY THE DEPARTMENT PURSUANT TO SUBSECTION Q OF THIS SECTION.

T. IF MORE THAN ONE RESTAURANT LICENSE HOLDER OR APPLICANT APPLIES FOR THE AVAILABLE LICENSES PURSUANT TO SUBSECTION R OF THIS SECTION, the director shall determine the priority of the applicants by a random selection method. THE NUMBER OF TIMES A PERSON MAY ENTER THE RANDOM SELECTION PROCESS may NOT EXCEED THE NUMBER OF RESTAURANT LICENSES CURRENTLY HELD or APPLIED FOR BY THAT PERSON.  FOR THE PURPOSES OF THIS SUBSECTION, A PARTNERSHIP, LIMITED LIABILITY COMPANY, ASSOCIATION, COMPANY OR CORPORATION IS CONSIDERED THE SAME PERSON IF IT IS OWNED, MANAGED, OPERATED OR CONTROLLED BY THE SAME CONTROLLING PERSON.

U. The department shall deposit, pursuant to sections 35-146 and 35-147, ALL MONIES FROM THE AUCTIONs CONDUCTED PURSUANT TO SUBSECTION P OF THIS SECTION AND THE SALES CONDUCTED PURSUANT TO SUBSECTION R OF THIS SECTION FOR TO-GO COCKTAILS PERMITS INTO THE LIQUOR LICENSE COMPENSATION FUND ESTABLISHED BY SECTION 4-121.  ON THE repeal OF THE LIQUOR LICENSE COMPENSATION FUND, the department shall deposit, pursuant to sections 35-146 and 35-147, ALL MONIES FROM THE AUCTIONs CONDUCTED PURSUANT to SUBSECTION P OF THIS SECTION AND THE SALES CONDUCTED PURSUANT TO SUBSECTION R OF THIS SECTION FOR TO-GO COCKTAILS PERMITS INTO THE DRIVING UNDER THE INFLUENCE ABATEMENT FUND ESTABLISHED BY SECTION 28-1304."

Page 22, line 2, after "fee" insert "in addition to the AMOUNT charged pursuant to section 4-206.01, subsection P or R"

Line 13, strike "a third-party facilitator"

Line 14, strike "license" insert "registering an alcohol delivery contractor"

Page 23, line 16, after the period strike remainder of line

Strike lines 17 and 18

Between lines 18 and 19, insert:

"13. FOR A TO-GO COCKTAILS PERMIT ISSUED PURSUANT TO SECTION 4-206.01, subsection P or R, THE DIRECTOR MAY CHARGE AN ANNUAL FEE EQUAL TO THE AVERAGE AUCTION PRICE AS DETERMINED BY THE DEPARTMENT PURSUANT TO SECTION 4-206.01, SUBSECTION Q, FOR DEPOSIT IN THE LIQUOR LICENSE COMPENSATION FUND ESTABLISHED BY SECTION 4-121. 

14. ON THE repeal OF THE LIQUOR LICENSE COMPENSATION FUND ESTABLISHED pursuant to SECTION 4-121, THE DIRECTOR MAY ESTABLISH AN ANNUAL FEE FOR A PERMIT ISSUED PURSUANT TO SECTION 4-206.01, subsection P or R for deposit in the driving under the influence abatement fund established by section 28-1304."

Renumber to conform

Line 30, after "annual" insert "registration"

Line 31, strike "third-party facilitator license" insert "registered alcohol delivery contractor"

Page 25, line 8, strike "a permit" insert "application fees for permits"

Line 9, strike "a license issued" insert "from registrations"

Line 10, after "fees" insert "for registrations"

Line 12, strike "section" insert "chapter"

Page 32, line 9, after "bar" insert "or liquor store"

   Line 16, after "premises" insert "of the bar or restaurant"

Line 17, after "sealed" insert "by the licensee or the licensee's employee"

Page 34, after line 10, insert:

"47. for a bar or restaurant licensee or an employee of those licensees or for a registered alcohol delivery contractor or an independent contractor that is contracted with the registered alcohol delivery contractor to sell, dispose of, deliver or give spirituous liquor to an individual purchaser between the hours of 2:00 a.m. and 6:00 a.m.

Sec. 9. 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 4-206.01, subsection U, section 4-209, subsection d, paragraph 14, section 4-213, subsection J, section 5-396, subsection I, paragraph 2, section 5-397, subsection D, paragraph 3 and subsection F, paragraph 3, section 28-1382, subsection D, paragraph 3 and subsection E, paragraph 3, section 28-1383, subsection J, paragraph 2 and section 28-1465.

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 percent 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 percent of the monies deposited in the fund shall be used for both of the following:

1. Administrative purposes of the oversight council on driving or operating under the influence abatement.

2. Payment of the costs of notification prescribed by section 28-1467.

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.

Sec. 10. Conditional repeal; notice

A. Section 4-121, Arizona Revised Statutes, as added by this act, is repealed on the earlier of the following:

1. When the fair market values for bar and liquor store licenses calculated pursuant to section 4-206.01, Arizona Revised Statutes, as amended by this act, are equal to one hundred fifteen percent of the fair market values calculated pursuant to section 4-206.01, Arizona Revised Statutes, as amended by this act, for 2020.

2. When three consecutive years have passed without any new permits issued pursuant to section 4-205.02, subsection J, Arizona Revised Statutes, as added by this act.

B. The direct of the department of liquor licenses and control shall notify in writing the director of the Arizona legislative council of this date.

Sec. 11. Severability Clause

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 12. Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature."END_STATUTE

Amend title to conform


 

 

2773COM

03/26/2021

01:12 PM

S: IA