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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
distilleries; licensing; environmental exemption
Purpose
Exempts a liquor licensee's records containing proprietary information from inspection. Specifies that licensed producer, craft distiller, brewer and farm winery production and storage spaces are subject to the federal Produce Safety Rule and are not subject to non-federal food safety guidelines adopted by local governing boards.
Background
The Department of Liquor Licenses and Control (DLLC) and DLLC Director (Director) issue various license types, or series, to regulate the production, distribution and sale of alcoholic beverages (A.R.S. § 4-203). A licensee must keep records of licensed business activity in a manner and location and for a duration as prescribed by the Director. The Director's rules must require that each on-sale retailer maintain required records at the premises, including a current log of all persons employed at the licensed premises (A.R.S. Title 4).
The Department of Health Services (DHS) must prescribe food safety regulation and inspection rules governing the production, processing, labeling, storing, handling, serving and transportation of food and drink to ensure that all products for human consumption are free from unwholesome, poisonous or other foreign substances and filth, insects or disease-causing organisms. DHS rules must exclude food and drink in certain circumstances and must be enforced by each local board of health or public health services district (A.R.S. § 36-136).
The federal Produce Safety Rule includes prescribed standards for the growing, harvesting, packing and holding of produce for human consumption. Produce is eligible for exemption from the rule if the produce receives commercial processing that adequately reduces the presence of microorganisms of public health significance, including refining, distilling or otherwise manufacturing or processing produce into products such as sugar, oil, spirits, wine, beer or similar products (21 C.F.R. pt. 112).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Exempts, from inspection, records containing proprietary information, including confidential formulas, production processes and business information filed with the U.S. Alcohol and Tobacco Tax and Trade Bureau.
2. Specifies that production and storage spaces of licensed producers, craft distillers, brewers and farm wineries are not subject to non-federal food safety guidelines adopted by local governing boards.
3. Specifies that licensed producer, craft distiller, brewers and farm winery production and storage spaces are subject to food safety rules and exemptions prescribed by the Food and Drug Administration under the Produce Safety Rule.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Removes language requiring DHS food safety regulation and inspection rules to exempt spirituous liquor in liquor production areas and commercially prepackaged food served on microbrewery, farm winery or craft distiller premises.
House Action Senate Action
COM 2/16/21 DPA 9-0-0-1 APPROP 3/31/21 DPA 10-0-0
3rd Read 3/18/21 55-5-0
Prepared by Senate Research
April 1, 2021
LB/kja