Fifty-fifth Legislature                                            Appropriations

First Regular Session                                                   S.B. 1103

 

PROPOSED

SENATE AMENDMENTS TO S.B. 1103

(Reference to printed bill)

 


Strike everything after the enacting clause and insert:

"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":

(a) Means an incident consisting of that consists a riot, a fight, an altercation or tumultuous conduct and that meets at least one of the following criteria:

(i) In which bodily injuries are sustained by any person and the injuries would be obvious to a reasonable person.

(ii) Of sufficient intensity as to require the intervention of a peace officer to restore normal order.

(iii) In which a weapon is brandished, displayed or used. 

(iv) Where In which a licensee or an employee or contractor of the licensee fails to follow a clear and direct lawful order from a law enforcement officer or a fire marshal.

(b) 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 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 not later than sixty days after the filing of the application or fifteen days after action by the local governing body, whichever is sooner.

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. "Biometric identity verification device" means a device authorized by the department that instantly verifies the identity and age of a person by an electronic scan of a biometric of the person, through a fingerprint, iris image, facial image or other biometric characteristic, or any combination of these characteristics, that references the person's identity and age against any record described in section 4-241, subsection K, and that meets all of the following conditions:

(a) The authenticity of the record was previously verified by an electronic authentication process.

(b) The identity of and information about the record holder was previously verified through either:

(i) A secondary, electronic authentication process or set of processes utilizing using commercially available data, such as a public records query or a knowledge-based authentication quiz.

(ii) Utilizing Using a state or federal government system of record for digital authentication.

(c) The authenticated record was securely linked to biometrics contemporaneously collected from the verified record holder and is stored in a centralized, highly secured, encrypted biometric database.

5. "Board" means the state liquor board.

6. "Bona fide guest" means:

(a) An individual who is personally familiar to the member, who is personally sponsored by the member and 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 8, 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.

7. "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 on the container by the manufacturer has been removed.

8. "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made only to members, spouses of members, families of members, bona fide guests of members and guests at other events authorized in this title:

(a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that 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 that 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 at least thirty-six states or have been in active continuous existence for at least twenty years.

(c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph of which all of the capital stock of which is owned by the local unit or the members and that operates the clubroom facilities of the local unit.

(d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse.

(e) A social club with that has 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, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of at least 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 dues of at least $6 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 percent 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 one hundred eighty days before the filing of the application.  The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that 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 that are certificated by the United States government and that maintain or operate club quarters located at airports with international status.

9. "Company" or "association", when used in reference to a corporation, includes successors or assigns.

10. "Control" means the power to direct or cause the direction of the management and policies of an applicant or licensee, 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 percent or more of the outstanding voting securities of the applicant or licensee or to control in any manner the election of one or more of the directors of the applicant or licensee.  In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten percent 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 an officer, partner, employee or agent of the person or a spouse, parent or child of the person.  Control is also presumed to exist if a creditor of the applicant or licensee holds a beneficial interest in ten percent or more of the liabilities of the licensee. The presumptions in this paragraph regarding control are rebuttable.

11. "Controlling person" means a person directly or indirectly possessing control of an applicant or licensee.

12. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.

13. "Department" means the department of liquor licenses and control.

14. "Director" means the director of the department of liquor licenses and control.

15. "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, that may in sufficient quantities produce intoxication.

16. "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 or independent contractor or otherwise. Employee does not include a person who is 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.

17. "Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.04.

18. "Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of the state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board.

19. "Legal drinking age" means twenty-one years of age or older.

20. "License" means a license or an interim retail permit issued pursuant to this title.

21. "Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee.

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

23. "Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full-time basis.

24. "Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4-205.08.

25. "Off-sale retailer" means any person operating that operates a bona fide regularly established retail liquor store selling that sells spirituous liquors, wines and beer, and any established retail store selling commodities other than spirituous liquors and that is 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.

26. "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.

27. "Permanent occupancy" means the maximum occupancy of the building or facility as set by the office of the state fire marshal for the jurisdiction in which the building or facility is located.

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

29. "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. Premises or licensed premises includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises.

30. "Registered mail" includes certified mail.

31. "Registered retail agent" means any person who is authorized pursuant to section 4-222 to purchase spirituous liquors for and on behalf of the person and other retail licensees.

32. "Repeated acts of violence" means:

(a) For licensed premises with a permanent occupancy of two hundred or fewer persons, two or more acts of violence occurring within seven days or three or more acts of violence occurring within thirty days.

(b) For licensed premises with a permanent occupancy of more than two hundred but not more than four hundred persons, four or more acts of violence within thirty days.

(c) For licensed premises with a permanent occupancy of more than four hundred but not more than six hundred fifty persons, five or more acts of violence within thirty days.

(d) For licensed premises with a permanent occupancy of more than six hundred fifty but not more than one thousand fifty persons, six or more acts of violence within thirty days.

(e) For licensed premises with a permanent occupancy of more than one thousand fifty persons, seven or more acts of violence within thirty days.

33. "retail tobacco vendor":

(a) Means a person, partnership, joint venture, society, club, trustee, true association, organization or corporation that owns, operates or manages any retail establishment that sells shisha, tobacco products or vapor products.

(b) does not include the nonmanagement employees of any tobacco retail establishment.

33. 34. "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.

35. "Shisha" has the same meaning prescribed in section 13-3622.

34. 36. "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 that produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one-half of one percent of alcohol by volume.

37. "tobacco product" has the same meaning prescribed in section 13-3622.

38. "vapor product" has the same meaning prescribed in section 13-3622.

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

36. 40. "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.

37. 41. "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.

38. 42. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant or a licensee.

39. 43. "Wine" means the product obtained by the fermentation of grapes, other agricultural products containing natural or added sugar or cider or any such alcoholic beverage fortified with grape brandy and containing not more than twenty-four percent of alcohol by volume. END_STATUTE

Sec. 2. Title 4, Arizona Revised Statutes, is amended by adding chapter 4, to read:

CHAPTER 4

TOBACCO AND VAPOR PRODUCTS

ARTICLE 1. LICENSING AND SALE OF TOBACCO AND VAPOR PRODUCTS

START_STATUTE4-401. Tobacco retail sales; licenses; requirements; fees; civil penalties

A. Beginning January 1, 2023, a retail tobacco vendor may not distribute tobacco products or vapor products in this state without a valid tobacco retail sales license.  A retail tobacco vendor that distributes tobacco products or vapor products in this state shall secure for each location, and display at all times, a tobacco retail sales license issued by the department before engaging or continuing to engage in such a business.

B. The department shall establish fees for an initial tobacco retail sales license and the renewal of that license. The department shall deposit, pursuant to sections 35-146 and 35-147, the fees collected pursuant to this section in __________ fund established by section _________.

C. A tobacco retail sales license is valid for one year, unless the license is suspended or revoked by the department or the department's designee.  A tobacco retail sales license may not be renewed if the retail tobacco vendor has any outstanding penalties pursuant to this article.  The department may receive and review tobacco retail sales license applications electronically.

D. A tobacco retail sales license may not be issued to or renewed for a retail tobacco vendor licensee until the retail tobacco vendor signs a form stating that the retail tobacco vendor has read this article and has provided training to all employees on the sale of tobacco products or vapor products.  The training shall include the following information:

1. That it is illegal to sell tobacco products or vapor products to persons who are under the minimum age of sale for tobacco products as set by the federal food, drug, and cosmetic act.

2. The types of identification that are legally acceptable for the proof of age.

E. The tobacco retail sales license is nontransferable.  If a retail tobacco vendor ceases to be a retailer at the licensed retail location by reason of discontinuation, sale or transfer of the retail tobacco vendor's business, the retail tobacco vendor shall notify the department in writing at the time the discontinuance, sale or transfer takes effect.

F. Any business found to be selling tobacco products or vapor products without a license is subject to a civil penalty of at least $500 but not more than $1,000 for a first or second violation within a thirty-six-month period.  The department shall issue A business that receives a second violation within a thirty-six-month period a cease and desist order prohibiting the business from selling tobacco products or vapor products and notifying the business owner that the business is ineligible to receive a tobacco retail sales license for a period of three years after the date of the second violation.

Sec. 3. Section 13-3622, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3622. Tobacco products; persons under the federal minimum age; classification; exceptions; definitions

A. A person who knowingly sells, gives or furnishes a tobacco product, a vapor product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, including a hookah or waterpipe, to a minor person who is under the minimum age of sale for tobacco products as set by the federal food, drug, and cosmetic act is guilty of a petty offense.

B. A minor who buys, or has in his possession or knowingly accepts or receives from any person, a tobacco product, a vapor product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, including a hookah or waterpipe, is guilty of a petty offense, and if the offense involves any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, shall pay a fine of not less than one hundred dollars or perform not less than thirty hours of community restitution.

C. A minor person who is under the minimum age of sale for tobacco products as set by the federal food, drug, and cosmetic act and who misrepresents the minor's person's age to any other person by means of a written instrument of identification with the intent to induce the other person to sell, give or furnish a tobacco product, a vapor product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, including a hookah or waterpipe, in violation of subsection A or B of this section is guilty of a petty offense and, notwithstanding section 13-802, shall pay a fine of not more than five hundred dollars $500.

D. This section does not apply to any of the following:

1. Cigars, cigarettes or cigarette papers, smoking or chewing tobacco products or any instrument or paraphernalia that is solely designed for the smoking or ingestion of ingesting tobacco or shisha, including a hookah or waterpipe, if it is used or intended to be used in connection with a bona fide practice of a religious belief and as an integral part of a religious or ceremonial exercise.

2. Any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, including a hookah or waterpipe, that is given to or possessed by a minor if the instrument or paraphernalia was a gift or souvenir and is not used or intended to be used by the minor to smoke or ingest tobacco or shisha.

E. For the purposes of this section:

1. "Shisha" includes any mixture of tobacco leaf and honey, molasses or dried fruit or any other sweetener.

2. "Tobacco product":

(a) Means any of the following:

(a) Cigars.

(b) Cigarettes.

(c) Cigarette papers of any kind.

(d) Smoking tobacco of any kind.

(e) Chewing tobacco of any kind.

3. "Vapor product" means a noncombustible tobacco-derived product containing nicotine that employs a mechanical heating element, battery or circuit, regardless of shape or size, that can be used to heat a liquid nicotine solution contained in cartridges.  Vapor product does not include any product that is regulated by the United States food and drug administration under chapter V of the federal food, drug, and cosmetic act.

Sec. 4. Title 36, chapter 6, article 14, Arizona Revised Statutes, is amended by adding section 36-798.07, to read:

START_STATUTE36-798.07. Single state standard; preemption; exceptions

A. THE REGULATION OF THE SALE AND MARKETING OF TOBACCO PRODUCTS and VAPOR PRODUCTS IS A MATTER OF STATEWIDE CONCERN AND IS NOT SUBJECT TO FURTHER REGULATION BY A CITY, TOWN OR COUNTY IN THIS STATE, EXCEPT AS PROVIDED IN SUBSECTIONS B, C, D and e OF THIS SECTION.  THIS ARTICLE PREEMPTS ANY RULE, REGULATION, CODE OR ORDINANCE THAT IS ADOPTED OR MODIFIED BY ANY CITY, TOWN OR COUNTY IN THIS STATE that REGULATes THE SALE OR MARKETING OF TOBACCO PRODUCTS or VAPOR PRODUCTS THAT IS IN CONFLICT WITH OR MORE RESTRICTIVE THAN A STATE law OR RULE, except as otherwise provided in this section.  A CITY, TOWN OR COUNTY MAY NOT LIMIT ANY RIGHT GRANTED BY THIS ARTICLE OR RULES ADOPTED PURSUANT TO THIS ARTICLE OR PURSUANT TO TITLE 4, CHAPTER 4, except as otherwise provided in this section.

B. A CITY, TOWN OR COUNTY MAY ADOPT AND ENFORCE LAWFUL ZONING REQUIREMENTS that limit THE LOCATION OF RETAIL TOBACCO vendors AS DEFINED IN SECTION 4-101.

C. A city, town or county may adopt any rule, regulation, code or ordinance that regulates the sale of tobacco products or vapor products within three hundred feet of A PUBLIC, PRIVATE OR CHARTER SCHOOL PROVIDING PRIMARY OR SECONDARY EDUCATION OR FROM A FENCED PLAYGROUND ADJACENT TO A SCHOOL OR PUBLIC PARK.

D. A CITY, TOWN OR COUNTY MAY ADOPT ANY RULE, REGULATION, CODE OR ORDINANCE that REGULATes THE MARKETING OF TOBACCO PRODUCTS OR VAPOR PRODUCTS WITHIN ____ FEET OF A PUBLIC, PRIVATE OR CHARTER SCHOOL PROVIDING PRIMARY OR SECONDARY EDUCATION OR FROM A FENCED PLAYGROUND ADJACENT TO A SCHOOL OR PUBLIC PARK.

e. THIS SECTION DOES NOT PROHIBIT A CITY, TOWN, COUNTY, SCHOOL DISTRICT, CHARTER SCHOOL, COMMUNITY COLLEGE DISTRICT OR STADIUM DISTRICT OR THE ARIZONA BOARD OF REGENTS FROM REGULATING THE SALE, MARKETING OR USE OF TOBACCO PRODUCTS or  VAPOR PRODUCTS ON PROPERTY THAT IS OWNED, LEASED OR OPERATED IN THIS STATE BY THE CITY, TOWN, COUNTY, SCHOOL DISTRICT, CHARTER SCHOOL, COMMUNITY COLLEGE DISTRICT, STADIUM DISTRICT OR ARIZONA BOARD OF REGENTS."

Amend title to conform


 

 

DAVID GOWAN

 

1103GOWAN2

02/19/2021

04:27 PM

C: LAT