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| Home > Statutes > Usa Arizona |
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USA Statutes : arizona
Title : Alcoholic Beverages
Chapter : REGULATIONS AND PROHIBITIONS
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4-201.01 Extending time limits
A. In the event any decision, hearing, or other action by the department, including
the board, is alleged to be untimely, an aggrieved person may file a demand that the
department take action within fifteen days. In the event the department does not then
act, the aggrieved person may file an action in superior court seeking an order requiring
the department to act.
B. Notwithstanding the provisions of subsection A of this section, if the director
determines that it is in the public interest to extend the time limits for action by the
department, including the board, in connection with a license issuance or transfer or
acquisition of control, he may extend such time limits by up to one hundred five
days. The director may further extend such time limits as the director deems necessary
if special circumstances such as litigation affecting the ownership of the license,
bankruptcy, probate or other circumstances deemed meritorious by the director prevent the
department from completing its action or the director requires additional time to
complete an investigation of an applicant's qualifications for licensure pursuant to
section 4-202. In no event shall the director extend the time limits more than one year
except as necessary in the event of litigation affecting the ownership of the license,
bankruptcy or probate.
4-201 Licensing; application procedure in city,town or county; burden of proof
A. A person desiring a license to manufacture, sell or deal in spirituous liquors
shall make application to the director on a form prescribed and furnished by the
director.
B. A person desiring a license within an incorporated city or town shall make the
application in triplicate and shall file the copies with the director. The director
shall remit two copies to the city or town clerk. The city or town clerk shall
immediately file one copy in the clerk's office and post the other for a period of twenty
days in a conspicuous place on the front of the premises where the business is proposed
to be conducted, with a statement requiring any person who is a bona fide resident
residing or owning or leasing property within a one mile radius from the premises
proposed to be licensed, and who is in favor of or opposed to the issuance of the
license, to file written arguments in favor of or opposed to issuance of the license with
the clerk within twenty days after the date of posting. The posting shall contain
substantially the following:
Notice
A hearing on a liquor license application shall be held before the local
governing body at the following date, time and place:
(Insert date, time and address)
The local governing body will recommend to the state liquor board whether the
board should grant or deny the license. The state liquor board may hold a
hearing to consider the recommendation of the local governing body. Any person
residing or owning or leasing property within a one-mile radius may contact
the state liquor board in writing to register as a protestor. To request
information regarding procedures before the board and notice of any board
hearings regarding this application, contact the state liquor board at:
(Insert address and telephone number).
No arguments shall be filed or accepted by the city or town clerk thereafter. This
subsection shall not be construed to prevent a bona fide resident residing or owning or
leasing property within a one-mile radius from the premises proposed to be licensed from
testifying in favor of or in opposition to the issuance of the license, regardless of
whether or not the person is a user or nonuser of spirituous liquor.
C. The governing body of the city, town or county shall then enter an order
recommending approval or disapproval within sixty days after filing of the application
and shall file a certified copy of the order with the director. If the recommendation is
for disapproval, a statement of the specific reasons containing a summary of the
testimony or other evidence supporting the recommendation for disapproval shall be
attached to the order. All petitions submitted to the governing body within the
twenty-day period for filing protests shall be transmitted to the director with the
certified copy of the order.
D. If a person applies for a license to conduct a spirituous liquor business
outside an incorporated city or town, the director shall remit two copies of the
application to the clerk of the board of supervisors of the county where the applicant
desires to do business, and the proceedings by the clerk and board of supervisors shall
be as provided for cities and towns.
E. Upon receipt of an application for a spirituous liquor license, the director
shall set the application for hearing by the board upon a date following the expiration
of the time fixed for the submitting of the certified order by the governing body of the
city or town or the board of supervisors. If the city or town or the county recommends
approval of the license no hearing is required unless the director, the board or any
aggrieved party requests a hearing on the grounds that the public convenience and the
best interest of the community will not be substantially served if a license is issued.
Any person residing or owning or leasing property within a one mile radius of the
proposed location may file a written protest with the director no later than fifteen
calendar days following action by the local governing body or sixty days after filing the
application. If no hearing is requested by the director, the board or any aggrieved
party, the application may be approved by the director. If the recommendation is for
disapproval of an application or if no recommendation is received, the board shall hold a
hearing. If the city, town or county recommends approval of the license pursuant to
subsection C, the director may cancel the hearing and issue the license unless the board
or any aggrieved party requests a hearing. The certified order, the reasons contained in
the order and the summary of the testimony and other evidence supporting the city, town
or county disapproval of the recommendation shall be read into the record before the
board and shall be considered as evidence by the board. The board shall consider the
certified order together with other facts and a report of the director relating to the
qualifications of the applicant. If the governing body of the city or town or the board
of supervisors fails to return to the director, as provided in subsections C and D, its
order of approval or disapproval, the board shall proceed with further consideration of
the application by holding an administrative hearing. An application shall be approved or
disapproved within one hundred five days after filing of the application.
F. A hearing may be conducted by an administrative law judge at the request of the
board to make findings and recommendations for use by the board in determining whether to
grant or deny a license. The administrative law judge shall submit a report of findings
to the board within twenty days of the hearing. The board may affirm, reverse, adopt,
modify, supplement, amend or reject the administrative law judge's report in whole or in
part.
G. In all proceedings before the governing body of a city or town, the board of
supervisors of a county or the board, the applicant bears the burden of showing that the
public convenience requires and that the best interest of the community will be
substantially served by the issuance of a license.
H. In order to prevent the proliferation of spirituous liquor licenses the
department may deny a license to a business on the grounds that such business is
inappropriate for the sale of spirituous liquor. An inappropriate business is one that
cannot clearly demonstrate that the sale of spirituous liquor is directly connected to
its primary purpose and that the sale of spirituous liquor is not merely incidental to
its primary purpose.
I. The board shall adopt, by rule, guidelines setting forth criteria for use in
determining whether the public convenience requires and the best interest of the
community will be substantially served by the issuance or transfer of a liquor license at
the location applied for. These guidelines shall govern the recommendations and other
approvals of the department and the local governing authority.
J. If the governing body of a city or town recommends disapproval by a two-thirds
vote of the members present and voting on an application for the issuance or transfer of
a spirituous liquor license that, if approved, would result in a license being issued at
a location either having no license or having a license of a different series, the
application shall not be approved unless the board decides to approve the application by
a two-thirds vote of the members present and voting.
4-202 Qualifications of licensees; application;background information; prior convictions
A. Every spirituous liquor licensee, other than a club licensee, a corporation
licensee, a limited liability company licensee or an out-of-state licensee, shall be a
citizen of the United States and a bona fide resident of this state or a legal resident
alien who is a bona fide resident of this state. If a partnership, each partner shall be
a citizen of the United States and a bona fide resident of this state or a legal resident
alien who is a bona fide resident of this state, except that for a limited partnership an
individual general partner is required to meet the qualifications of an individual
licensee, a corporate general partner is required to meet the qualifications of a
corporate licensee and a limited partner is not required to be a bona fide resident of
this state. If a corporation or limited liability company, it shall be a domestic
corporation or a foreign corporation or a limited liability company that has qualified to
do business in this state. A person shall hold a club license, corporation license,
limited liability company license, partnership license or out-of-state license through an
agent who shall be a natural person and meet the qualifications for licensure, except
that an agent for an out-of-state license as specified in section 4-209, subsection B,
paragraph 2 need not be a resident of this state. For the purposes of this subsection,
"agent" means a person who is designated by an applicant or licensee to receive
communications from the department and to file documents and sign documents for filing
with the department on behalf of the applicant or licensee.
B. A person shall file an application for a spirituous liquor license on a form
prescribed by the director. The director shall require any applicant and may require any
controlling person, other than a bank or licensed lending institution, to furnish
background information and to submit a full set of fingerprints to the department. The
department of liquor licenses and control shall submit the fingerprints to the department
of public safety for the purpose of obtaining a state and federal criminal records check
pursuant to section 41-1750 and Public Law 92-544. The department of public safety may
exchange this fingerprint data with the federal bureau of investigation. If a license is
issued or transferred when fees are waived pursuant to section 4-209, subsection I, no
additional background check is required if the person has already completed a background
investigation in connection with the continuing business.
C. Each applicant or licensee shall designate a person who shall be responsible for
managing the premises. The designated person may be the applicant or licensee. The
manager shall be a natural person and shall meet all the requirements for licensure. The
same person may be designated as the manager for more than one premises owned by the same
licensee. Notice of a change in the manager shall be filed with the director within
thirty days after a change.
D. No license shall be issued to any person who, within one year before
application, has had a license revoked. No license shall be issued to or renewed for any
person who, within five years before application, has been convicted of a felony, or
convicted of an offense in another state that would be a felony in this state. For a
conviction of a corporation to be a basis for a denial under the provisions of this
section, the limitations that are provided in section 4-210, subsection A, paragraph 8
shall apply. No corporation shall have its annual license issued or renewed unless it has
on file with the department a list of its officers and directors and any stockholders who
own ten per cent or more of the corporation.
E. The department of liquor licenses and control shall receive criminal history
record information from the department of public safety for applicants for employment
with the department of liquor licenses and control or for a license issued by the
department of liquor licenses and control.
F. The department shall not issue or renew a license for any person who on the
request of the director fails to provide the department with complete financial
disclosure statements indicating all financial holdings of the person or any other person
in or relating to the license applied for, including all cosignatories on financial
holdings, land, buildings, leases or other forms of indebtedness that the applicant has
incurred or will incur.
4-203.01 Interim permit; fee; rules
A. The director may issue an interim permit to the transferee of a transferable
license as described in section 4-203, subsection C and section 4-209, subsection B,
paragraphs 6, 7 and 9 or an applicant for a nontransferable spirituous liquor license to
continue the operation of such premises during the period a transfer application for the
license from person to person at the same premises is pending or, in the case of a
nontransferable spirituous liquor license, if the application for an original license of
the same series at the same premises is pending and any of the following conditions
exists:
1. The director has good cause to believe the licensee is no longer in possession
of the licensed premises.
2. The license for such premises was surrendered pursuant to rules of the
department.
3. The applicant for the interim permit filed with the department an application
for transfer of the license at such premises to himself or, in the case of a
nontransferable spirituous liquor license, filed an application for an original license
at such premises.
B. The application for the interim permit shall be accompanied by an interim permit
fee of one hundred dollars.
C. An interim permit issued by the director pursuant to this section shall be for a
period of not to exceed one hundred five days and shall not be extended except as
provided in subsection D of this section. An interim permit is a conditional permit and
authorizes the holder to sell such alcoholic beverages as would be permitted to be sold
under the privileges of the license for which application has been filed with the
department.
D. Notwithstanding subsection C of this section, if the director extends the time
limit for action by the department in connection with a license issuance or transfer
pursuant to section 4-201.01, subsection B, the director shall issue an additional
interim permit for a period equal to such extension unless either:
1. No interim permit has previously been issued.
2. For good cause shown the director denies the additional interim permit.
E. Notwithstanding any other provision of law, an interim permit may be canceled or
suspended summarily at any time, if the director determines that good cause for such
cancellation or suspension exists. There shall be no appeal from such cancellation or
suspension of an interim permit to the board. The board may cancel an interim permit on
applications that have been disapproved by the board. The cancellation or suspension of
an interim permit may be appealed directly to the superior court.
F. Application for an interim permit shall be on such form as the director shall
prescribe. If an application for an interim permit is withdrawn before issuance or is
refused by the director, the fee which accompanies such application shall be refunded.
G. If an application for transfer of a license, person to person, or
nontransferable spirituous liquor license is denied or an interim permit is revoked,
suspended or expires, the licensee may request the return of the surrendered license
which has been issued for such premises.
H. The director may prescribe rules governing the issuance of interim permits under
this section.
I. The director may deny an interim permit in situations in which a current
licensee holds a license described in section 4-209, subsection B, paragraph 12 and the
current license is not in compliance with section 4-205.02.
4-203.02 Special event license; rules
A. The director may, subject to the approval of the board of supervisors of a
county for events to be held in an unincorporated area or the governing body of a city or
town for events to be held in a city or town, issue on a temporary basis:
1. A daily on-sale special event license authorizing the sale of spirituous liquor
for consumption on the premises where sold. The fee for the license is twenty-five
dollars per day. The director shall transfer the monies collected to the department of
health services for the purpose prescribed in title 36, chapter 18, article 2.
2. A daily off-sale special event license authorizing a charitable auction for the
sale of spirituous liquor for consumption off premises.
B. The director may only issue the special event license to a political party or
campaign committee supporting a candidate for public office or a ballot measure, an
organization formed for a specific charitable or civic purpose, a fraternal organization
in existence for over five years with a regular membership or a religious organization.
C. An organization selling spirituous liquor under a special event license pursuant
to subsection A, paragraph 1 of this section shall purchase such spirituous liquor from
the holder of a license authorized to sell off-sale, or, in the case of a nonprofit
organization which has obtained a special event license for the purpose of charitable
fund raising activities, the nonprofit organization may receive the spirituous liquor
from a wholesaler as a donation, except that a licensee licensed pursuant to subsection
A, paragraph 2 of this section may receive spirituous liquor from a donor when the donor
receives no remuneration or payment of any kind, directly or indirectly, other than any
tax benefits that might result.
D. An organization that is issued a license pursuant to subsection A, paragraph 2
of this section shall receive at least seventy-five per cent of the gross receipts of the
auction. Up to twenty-five per cent of the gross receipts of a special event auction
conducted pursuant to subsection A, paragraph 2 of this section may be used to pay
reasonable and necessary expenses incurred in connection with the auction. All expenses
shall be supported by written contracts, invoices or receipts, which shall be made
available to the director on request.
E. The director may adopt those rules the director determines are necessary to
implement and administer this section including a limitation on the number of times
during a calendar year a qualified organization may apply for and be issued a license
under this section. The qualified organization issued a license pursuant to subsection
A, paragraph 1 of this section must receive at least twenty-five per cent of the gross
revenues of the special events, which shall be supported by a contract between the
parties to be supplied at the time of application.
F. An organization that is issued a license pursuant to subsection A, paragraph 2
of this section shall not sell more than twenty cases of spirituous liquor annually under
a special event license.
G. Section 4-201 does not apply to the licenses provided for under this section.
4-203.03 Wine festival license; wine fair license; fee
A. The director, subject to the approval of the board of supervisors for events to
be held in an unincorporated area or the governing body of a city or town for events to
be held in a city or town, may issue up to twenty-five wine festival licenses for each
calendar year for each licensed domestic farm winery, for up to a total of seventy-five
calendar days per winery, authorizing sampling of domestic farm winery products on the
wine festival premises, the sale of such products for consumption on the wine festival
premises and the sale of such products in original containers for consumption off the
wine festival premises. The fee for a domestic farm winery wine festival license is
fifteen dollars for each event.
B. Any domestic farm winery may apply for a wine festival license pursuant to this
section.
C. With the permission of the fair organizers, any domestic farm winery is
authorized to allow sampling of domestic farm winery products on the fair premises, the
sale of such products for consumption on the fair premises and the sale of such products
in original containers for consumption off of the fair premises at any sanctioned county
or state fair. The fee for a domestic farm winery fair license is fifteen dollars for
each event.
D. Section 4-201 does not apply to the licenses provided for under this section.
4-203.04 Direct shipment license; issuance; fee; requirements; penalties; cease and desist orders
A. The director may issue a direct shipment license to a person who is engaged in
business as a distiller, vintner, brewer, rectifier, blender or other producer of
spirituous liquor if the person is licensed in the state where the person's principal
place of business is located and the director determines that the person is capable and
reliable and is qualified to hold a direct shipment license.
B. A person shall apply for a direct shipment license on a form prescribed by the
director. The director may charge an application fee. In addition to other matters
required by the director, an application for a direct shipment license shall include:
1. The address of the premises where the applicant's principal place of business is
located and a copy of the applicant's spirituous liquor license in that state.
2. The name, address and telephone number of an officer of the applicant who is
authorized to represent the applicant before the director.
3. A complete and full disclosure by the applicant and by any officer, director,
administrator or controlling person of the applicant of any criminal convictions in any
state or foreign jurisdiction within the five years immediately preceding the
application.
4. The names and addresses of the wholesalers licensed in this state through which
the applicant will ship spirituous liquor into or within this state.
5. The number of individual orders of spirituous liquor, if any, that the applicant
shipped to wholesalers in this state during the previous three years and the names and
addresses of each wholesaler who received the shipments.
6. A statement that the applicant acknowledges that shipments by the applicant of
spirituous liquor into or within this state contrary to this section will result in the
immediate suspension of the applicant's direct shipment license.
C. The director may refuse to issue a direct shipment license for good cause.
After a hearing, the director may suspend or revoke a direct shipment license for good
cause. The director shall not issue a direct shipment license to any person who:
1. Has had a direct shipment license or any license to deal in spirituous liquor
revoked in this state or any other state within one year preceding the application.
2. Has been convicted of a felony in this state or any other state or has been
convicted of an offense in another state that would be a felony if convicted in this
state within five years preceding the application.
D. A direct shipment license is valid for three years. Direct shipment licenses may
not be renewed or transferred. A person who holds a direct shipment license may apply for
a new license not more than ninety days before expiration of the person's current
license.
E. A resident of this state who is twenty-one years of age or older may place an
order in person, by telephone, mail or catalog or on the internet for spirituous liquor
for the person's own personal use with a person who holds a direct shipment license.
F. A person who holds a direct shipment license shall ensure that shipments of
spirituous liquor pursuant to this section are made in conformance with all applicable
provisions of this title and rules adopted pursuant to this title. A direct shipment
licensee who violates this title or rules adopted pursuant to this title is subject to a
civil or criminal penalty and suspension or revocation of the person's license.
G. A person who holds a direct shipment license shall deliver spirituous liquor
ordered pursuant to subsection E of this section to a wholesaler who is licensed in this
state. The wholesaler shall pay all luxury taxes imposed on the shipment pursuant to
title 42, chapter 3 to the department of revenue and shall deliver the liquor to a
retailer with off-sale privileges who is licensed in this state.
H. The licensed retailer shall deliver the spirituous liquor or shall arrange for
the delivery of the spirituous liquor to the person who placed the order and shall
collect and pay to the department of revenue all transaction privilege taxes imposed
pursuant to title 42, chapter 5. The retailer shall:
1. Ensure that:
(a) The person making the delivery is twenty-one years of age or older.
(b) The delivery occurs only during the hours that spirituous liquor may be
lawfully served in this state.
(c) Deliveries are not made to persons who are obviously intoxicated or are
otherwise disorderly.
(d) The person accepting the delivery is twenty-one years of age or older and
exhibits an acceptable written instrument of identification pursuant to section 4-241.
2. Make a record of the delivery at the time of delivery on a form approved by the
director of the department of liquor licenses and control. The record shall be retained
by the retailer for at least two years and shall include the following information:
(a) The business name, address and license number of the retailer.
(b) The date and time of delivery.
(c) The address where the delivery occurred.
(d) The type, brand and amount of the spirituous liquor delivered.
(e) The printed name and signature of the person making the delivery.
(f) The printed name and signature of the person accepting the delivery, along with
the type and serial number of the written identification the person accepting delivery
presented.
(g) The age of the person accepting delivery.
3. Refuse to complete a delivery if the retailer believes that the delivery would
violate any applicable provision of this title.
I. If the director has reasonable cause to believe that a person who is licensed
pursuant to this section is acting in violation of this section, the director may serve a
cease and desist order requiring the person to cease and desist the violation. The
director may impose a civil penalty of not more than one hundred fifty thousand dollars
against a person who knowingly violates a cease and desist order issued pursuant to this
section.
J. This section shall not be construed to prohibit a person from shipping wine as
long as all of the following apply:
1. The wine was purchased while the purchaser was physically present at the winery.
2. The purchaser of the wine provided the winery verification of legal age to
purchase alcohol.
3. The shipping container in which the wine is shipped is marked to require an
adult's signature on delivery and delivery confirmation.
4. The wine is for personal use only and not for resale.
5. The winery ships to a residential address.
6. The purchaser could have carried the wine lawfully into or within this state.
7. The winery ships not more than two cases of wine per winery to the purchaser in
any calendar year.
K. Section 4-201 does not apply to licenses issued pursuant to this section. 4-203 Licenses; issuance; transfer; reversionto state
A. A spirituous liquor license shall be issued only after satisfactory showing of
the capability, qualifications and reliability of the applicant and, with the exception
of club licensees, that the public convenience requires and that the best interest of the
community will be substantially served by the issuance.
B. The license shall be to manufacture, sell or deal in spirituous liquors only at
the place and in the manner provided in the license. A separate license shall be issued
for each specific business, and each shall specify:
1. The particular spirituous liquors which the licensee is authorized to
manufacture, sell or deal in.
2. The place of business for which issued.
3. The purpose for which the liquors may be manufactured or sold.
C. A spirituous liquor license issued to a bar, a liquor store or a beer and wine
bar shall be transferable as to any permitted location within the same county, provided
such transfer meets the requirements of an original application. Such spirituous liquor
license may be transferred to a person qualified to be a licensee, provided such transfer
is pursuant to either judicial decree, nonjudicial foreclosure of a legal or equitable
lien, a bona fide bulk sale of the entire business and stock in trade, or such other bona
fide transactions as may be provided for by rule. Any change in ownership of the business
of a licensee, directly or indirectly, as defined by rule is deemed a transfer.
D. All applications for a new license pursuant to section 4-201 or for a transfer
to a new location pursuant to subsection C of this section shall be filed with and
determined by the director, except when the governing body of the city or town or the
board of supervisors receiving such application pursuant to section 4-201 orders
disapproval of such application or makes no recommendation or when the director, the
state liquor board or any aggrieved party requests a hearing. Such application shall then
be presented to the state liquor board, and the new license or transfer shall not become
effective unless approved by the state liquor board.
E. A person who assigns, surrenders, transfers or sells control of a business which
has a spirituous liquor license shall notify the director within fifteen business days
after the assignment, surrender, transfer or sale. No spirituous liquor license shall be
leased or subleased. A concession agreement entered into under section 4-205.03 is not
considered a lease or sublease in violation of this section.
F. If a person other than those persons originally licensed acquires control over a
license or licensee, the person shall file notice of the acquisition with the director
within fifteen business days after such acquisition of control and a list of officers,
directors or other controlling persons on a form prescribed by the director. All
officers, directors or other controlling persons shall meet the qualifications for
licensure as prescribed by this title. On request, the director shall conduct a
preinvestigation prior to the assignment, sale or transfer of control of a license or
licensee, the reasonable costs of which, not to exceed one thousand dollars, shall be
borne by the applicant. The preinvestigation shall determine whether the qualifications
for licensure as prescribed by this title are met. On receipt of notice of an acquisition
of control or request of a preinvestigation, the director shall forward the notice within
fifteen days to the local governing body of the city or town, if the licensed premises is
in an incorporated area, or the county, if the licensed premises is in an unincorporated
area. The local governing body of the city, town or county may protest the acquisition of
control within sixty days based on the capability, reliability and qualification of the
person acquiring control. If the director does not receive any protests, the director
may protest the acquisition of control or approve the acquisition of control based on the
capability, reliability and qualification of the person acquiring control. Any protest
shall be set for a hearing before the board. Any transfer shall be approved or
disapproved within one hundred five days of the filing of the notice of acquisition and
control. The person who has acquired control of a license or licensee has the burden of
an original application at the hearing, and the board shall make its determination
pursuant to section 4-202 and this section with respect to capability, reliability and
qualification.
G. A licensee who holds a license in nonuse status for more than five months shall
be required to pay a one hundred dollar surcharge for each month thereafter. The
surcharge shall be paid at the time the license is returned to active status. A license
automatically reverts to the state after being held in continuous nonuse in excess of
thirty-six months. The director may waive the surcharge and may extend the time period
provided in this subsection for good cause. A license shall not be deemed to have gone
into active status if the license is transferred to a location that at the time of or
immediately before the transfer had an active license of the same type, unless the
licenses are under common ownership or control.
H. A restructuring of a licensee's business is an acquisition of control pursuant
to subsection F of this section and is a transfer of a spirituous liquor license and not
the issuance of a new spirituous liquor license if both of the following apply:
1. All of the controlling persons of the licensee and the new business entity are
identical.
2. There is no change in control or beneficial ownership.
I. If subsection H of this section applies, the licensee's history of violations of
this title is the history of the new business entity. The director may prescribe a form
and shall require the applicant to provide the necessary information to ensure compliance
with this subsection and subsections F and G of this section.
J. Notwithstanding subsection B of this section, the holder of a retail license
having off-sale privileges may deliver spirituous liquor off of the licensed premises in
connection with the sale of spirituous liquor. The licensee may maintain a delivery
service and shall be liable for any violation committed in connection with any sale or
delivery of spirituous liquor, provided that such delivery is made by an employee at
least twenty-one years of age. The retail licensee shall collect payment for the price
of the spirituous liquor no later than at the time of delivery. The director shall adopt
rules that set operational limits for the delivery of spirituous liquors by the holder of
a retail license having off-sale privileges. For the purposes of this subsection, an
independent contractor or the employee of an independent contractor is deemed to be an
employee of the licensee when making a sale or delivery of spirituous liquor for the
licensee.
K. Nonretail ARIZONA licensees may transport spirituous liquors for themselves in
vehicles owned, leased or rented by such licensee.
L. Notwithstanding subsection B of this section, an off-sale retail licensee may
provide consumer tasting of wines off of the licensed premises.
M. The director may adopt reasonable rules to protect the public interest and
prevent abuse by licensees of the activities permitted such licensees by subsections J
and L of this section.
N. Failure to pay any surcharge prescribed by subsection G of this section or
failure to report the period of nonuse of a license shall be grounds for revocation of
the license or grounds for any other sanction provided by this title. The director may
consider extenuating circumstances if control of the license is acquired by another party
in determining whether or not to impose any sanctions under this subsection.
O. If a licensed location has not been in use for two years, the location must
requalify for a license pursuant to subsection A of this section and shall meet the same
qualifications required for issuance of a new license except when the director deems that
the nonuse of the location was due to circumstances beyond the licensee's control.
P. If the licensee's interest is forfeited pursuant to section 4-210, subsection L,
the location shall requalify for a license pursuant to subsection A of this section and
shall meet the same qualifications required for issuance of a new license except when a
bona fide lienholder demonstrates mitigation pursuant to section 4-210, subsection K.
4-204 Personal representative or fiduciaryacting for licensee
A. A person acting as administrator, executor or guardian of the estate of any
licensee or a person acting as receiver for any licensee, trustee of the bankrupt estate
of any licensee or assignee for the benefit of creditors of a licensee is authorized,
upon receiving permission from the director to sell and deal in spirituous liquors under
authority of the license issued to the licensee for whom the person is acting for a
period not exceeding twenty-four months from the date of the appointment of such person
as administrator, executor, guardian, receiver, trustee or assignee for the benefit of
creditors.
B. The provisions of this section shall not apply if at any time during the
twenty-four months an administrator, executor or guardian of the estate of a licensee who
has received the permission from the director as provided in subsection A of this section
transfers the license to the surviving spouse or the guardian of the minor child of the
licensee.
C. A person, authorized representative or assignee, meeting the qualifications of
section 4-202, not licensed under the provisions of this chapter, owning or possessing
spirituous liquor as a result of enforcement of a security interest in the property of a
wholesaler licensed under this chapter is authorized, upon receiving permission from the
director, to sell such spirituous liquor to a licensee authorized to sell spirituous
liquor for resale. Sections 4-201, 4-203 and 4-243.01 shall not apply to nor restrict
the authority granted under this provision.
4-205.01 Hotel-motel license; issuance; revocation
A. The director may issue a hotel-motel license to any hotel or motel in this state
that has in conjunction with such hotel or motel a restaurant where food is served.
B. The director shall issue the license in the name of the hotel or motel upon
application for the license by the owner or lessee of the motel or hotel, provided the
applicant is otherwise qualified to hold a spirituous liquor license. The holder of such
license is subject to the penalties prescribed for any violation of the law relating to
alcoholic beverages.
C. The holder of a hotel-motel license may sell and serve spirituous liquors solely
for consumption on the licensed premises. For the purpose of this subsection, "licensed
premises" shall include all public and private rooms, facilities and areas in which
spirituous liquors may be sold or served in the normal operating procedures of the hotel
or motel.
D. In addition to other grounds prescribed in this title upon which a license may
be revoked, the director may revoke a hotel-motel license issued pursuant to this section
in any case in which the licensee ceases to operate as a hotel or motel, as prescribed in
subsection A of this section.
E. For the purposes of this section, the licensee shall be subject to the standards
and qualifications of a restaurant licensee as provided in section 4-205.02. If an
independent person or entity manages and supervises the sale and service of spirituous
liquor at the premises pursuant to section 4-243.04, subsection A, paragraph 3, the
person or entity may contract with the owner of the premises to sell and serve food on
the premises. For the purpose of determining whether forty per cent of the licensee's
gross revenues are derived from the sale of food, sales of food made by the owner of the
premises are deemed sales of food made by the licensee.
4-205.02 Restaurant license; issuance; regulatory provisions; nontransferability; revocation; definitions
A. The director may issue a restaurant license to any restaurant in this state
which is regularly open for the serving of food to guests for compensation and which has
suitable kitchen facilities connected with the restaurant for keeping, cooking and
preparing foods required for ordinary meals.
B. The director shall issue the license in the name of the restaurant upon
application for the license by the owner or lessee of the restaurant, provided the
applicant is otherwise qualified to hold a spirituous liquor license. The holder of such
license is subject to the penalties prescribed for any violation of the law relating to
alcoholic beverages.
C. The holder of a restaurant license may sell and serve spirituous liquors solely
for consumption on the licensed premises. For the purpose of this subsection, "licensed
premises" may include rooms, areas or locations in which the restaurant normally sells or
serves spirituous liquors pursuant to regular operating procedures and practices and
which are contiguous to the restaurant. For the purpose of this subsection, a restaurant
licensee must submit proof of tenancy or permission from the landowner or lessor for all
property to be included in the licensed premises.
D. In addition to other grounds prescribed in this title upon which a license may
be revoked, the director may revoke a restaurant license issued pursuant to this section
in any case in which the licensee ceases to operate as a restaurant, as prescribed in
subsection A of this section.
E. Neither the director nor the board may initially issue a restaurant license if
either finds that there is sufficient evidence that the operation will not satisfy the
criteria adopted by the director for issuing a restaurant license described in section
4-209, subsection B, paragraph 12. The director shall issue a restaurant license only if
the applicant has submitted a plan for the operation of the restaurant. The plan shall be
completed on forms provided by the department and shall include listings of all
restaurant equipment and service items, the restaurant seating capacity and other
information requested by the department to substantiate that the restaurant will operate
in compliance with this section.
F. The holder of the license described in section 4-209, subsection B, paragraph 12
who intends to alter the seating capacity or dimensions of a restaurant facility shall
notify the department in advance on forms provided by the department.
G. For the purpose of this section:
1. "Gross revenue" means the revenue derived from all sales of food and spirituous
liquor on the licensed premises, regardless of whether the sales of spirituous liquor are
made under a restaurant license issued pursuant to this section or under any other
license that has been issued for the premises pursuant to this article.
2. "Restaurant" means an establishment which derives at least forty per cent of its
gross revenue from the sale of food, including sales of food for consumption off the
licensed premises if the amount of these sales included in the calculation of gross
revenue from the sale of food does not exceed fifteen per cent of all gross revenue of
the restaurant. 4-205.03 Government license; issuance; regulatory provisions; agreements with coliseum concessionaires; definitions
A. The department may issue a government license to any county, city, town or state
university or the ARIZONA exposition and state fair board upon application authorized by
the governing body of the county, city, town or state university or the ARIZONA
exposition and state fair board.
B. If the department decides to issue the license, it shall be issued in the name
of the county, city, town or state university or ARIZONA coliseum and exposition
center. No application shall be filed unless authorized by the respective governing
body. The application shall designate for each location a manager or other individual
responsible for administering the license. The county, city, town or state university or
ARIZONA exposition and state fair board shall give notice to the department within ten
days of any change in the designee. The county, city, town or state university or
ARIZONA coliseum and exposition center to which a license is issued is subject to the
fine or penalty prescribed for any violation of the statutes relating to alcoholic
beverages.
C. The holder of a government license may sell and serve spirituous liquors solely
for consumption on the premises for which the license is issued. A separate license is
required for each premises upon which spirituous liquors are served. A single premises
licensed under this section may consist of not more than one dock area that is designated
by a city or town and that is situated on a lake owned by the city or town and not more
than thirty boats that are operated on the lake. A dock and boats that comprise a
premises under this subsection shall be operated in compliance with subsection G of this
section.
D. A governing body in possession of a government license may by appropriate
legislation or rule authorize the use of the license pursuant to a concession agreement
approved by the governing body.
E. The department may adopt rules in order to administer this section.
F. Any agreement entered into by the ARIZONA exposition and state fair board
allowing an indicated concessionaire to serve alcoholic beverages pursuant to this
section shall contain a provision requiring the concessionaire to do both of the
following:
1. Fully indemnify and hold harmless this state and any of its agencies, boards,
commissions, officers and employees against any liability for loss or damage incurred
either on or off state property and resulting from the negligent serving of alcoholic
beverages by the concessionaire or the concessionaire's agents or employees.
2. Post a surety bond in favor of this state in an amount determined by the ARIZONA
exposition and state fair board to be sufficient to indemnify this state against the
potential liability or name this state as an additional insured in a liability policy
that provides sufficient coverage to indemnify this state as determined by the ARIZONA
exposition and state fair board.
G. The following apply to the operation of a dock and boats as a licensed premises
pursuant to subsection C of this section:
1. Liquor may be sold only for consumption on the premises in conjunction with
consumption of food.
2. Liquor shall not be served or consumed on the dock. Liquor shall not be served
on a boat earlier than fifteen minutes before the boat is scheduled to depart from the
dock and shall not be served after a boat returns to the dock.
3. A person shall not be served more than thirty-two ounces of beer, one liter of
wine or four ounces of distilled spirits while the person is on a boat.
4. A person shall not bring spirituous liquor onto a boat other than liquor
purchased by the licensee or a concessionaire for resale under the provisions of this
title.
5. The pilot of each boat, all crew members and all persons who sell or serve
spirituous liquor on each boat are deemed employees of the licensee for purposes of this
title.
6. The pilot of each boat shall either have a current and valid coast guard
operator's license or shall have successfully completed a safety and operator training
course approved by the city or town.
7. Spirituous liquor shall not be served, consumed or possessed by a customer on
the boat between the hours of 11:00 p.m. and 5:00 p.m.
8. All provisions of this title and rules adopted pursuant to this title that are
not inconsistent with this section apply to sales and consumption of spirituous liquor on
the licensed premises.
H. For purposes of this section:
1. "ARIZONA coliseum and exposition center" includes all property under the control
of the ARIZONA exposition and state fair board as provided in section 3-1001.
2. "Boat" means a seaworthy vessel that is designed to carry and that is capable of
carrying not less than fifteen nor more than forty-five passengers, that has a
displacement of not more than ten tons and that possesses a current coast guard
certificate.
3. "State university" means institutions as described in section 15-1601.
4-205.04 Domestic farm winery or domestic microbrewery license; issuance; regulatory provisions; retail site
A. The director may issue a domestic farm winery or domestic microbrewery license
to any domestic farm winery or domestic microbrewery. Each location which engages in
producing and bottling these products must obtain a separate domestic farm winery or
domestic microbrewery license, but both such licenses may be issued for a common
location. The licensee may not transfer the domestic farm winery or domestic
microbrewery license from person to person or from location to location.
B. An applicant for a domestic farm winery or domestic microbrewery license shall,
at the time of filing the application for the license, accompany the application with the
license fee. Persons holding a domestic farm winery or domestic microbrewery license
shall report annually at the end of each fiscal year, at such time and in such manner as
the director may prescribe, the amount of wine or beer manufactured by them during the
fiscal year. If the total amount of wine or beer manufactured during the year exceeds
the amount permitted annually by the license, the licensee shall apply for and receive an
in-state producer's license.
C. Notwithstanding any other statute, a licensed domestic farm winery may sell wine
produced or manufactured on the premises in the original container for consumption on or
off the premises and may make sales and deliveries of wine to persons licensed to sell
wine under this title. A licensed domestic farm winery may serve wine produced or
manufactured on the premises for the purpose of sampling the wine.
D. A licensed domestic farm winery is subject to all of the following requirements:
1. The winery shall produce not less than two hundred gallons and not more than
seventy-five thousand gallons of wine annually from grapes or other suitable agricultural
products of which at least seventy-five per cent are grown in this state. The director
may allow a percentage of out-of-state agricultural products greater than twenty-five per
cent in wine manufactured or produced by a licensed domestic farm winery if the licensed
domestic farm winery can demonstrate to the satisfaction of the director that sufficient
in-state agricultural products are not available because of an unexpected failure of
suitable in-state crops due to natural causes. The exemption shall remain in effect only
for the period of time during which such shortages actually exist.
2. The winery may purchase and sell wine produced from a domestic farm winery if
the retail sale of the wine is conducted from the same site as the location of the
winery.
E. Notwithstanding any other statute, a licensed domestic microbrewery may sell
beer produced or manufactured on the premises for consumption on or off the premises and
may make sales and deliveries of beer to persons licensed to sell beer under this title,
including wholesalers licensed under this title. A licensed domestic microbrewery may
serve beer produced or manufactured on the premises for the purpose of sampling the beer.
A licensed domestic microbrewery is subject to all of the following requirements:
1. The microbrewery shall produce not less than ten thousand gallons of beer in
each year following the first year of operation.
2. The microbrewery shall not produce more than three hundred ten thousand gallons
of beer annually.
3. If retail operations are conducted in conjunction with the microbrewery, these
retail operations shall be conducted from the same site as the location of the
microbrewery.
4. The microbrewery may sell other spirituous liquor products if:
(a) The microbrewery holds an on-sale retail license.
(b) The retail sale of the spirituous liquor is on or adjacent to the premises of
the microbrewery.
F. A person who holds a domestic microbrewery license that meets the requirements
of this section and who is not otherwise engaged in the business of a distiller, vintner,
brewer, rectifier, blender or other producer of spirituous liquor in any jurisdiction may
hold other on-sale retail licenses. The person shall purchase all spirituous liquor for
sale at the other on-sale retail premises from wholesalers who are licensed in this
state.
G. The director shall adopt rules in order to administer this section.
4-205.05 Permit to dispose of seized liquor
The board may issue a temporary permit authorizing the disposal at public auction of
spirituous liquor which has been seized by any agency of this state, the federal
government or any political subdivision of this state or the federal government pursuant
to statute. A bid at a public auction shall not be accepted from a licensee if the
spirituous liquors offered for sale at the auction were seized from that licensee. The
board shall issue the permit only if presented with proper documents of seizure by the
appropriate official.
4-205.06 Hotel or motel minibars; rules; definitions
A. Notwithstanding any other statute, a hotel or motel may sell spirituous liquor
in sealed containers in individual portions to its registered guests at any time by means
of a minibar located in the guest rooms of those registered guests, if all of the
following conditions are met:
1. Access to a minibar in a particular guest room is provided, whether by
furnishing a key, magnetic card or similar device, only to a registered guest of legal
drinking age, if any, registered to stay in the guest room, and the key, magnetic card or
similar device is not furnished to a guest between the hours of 1:00 a.m. and 6:00 a.m.
on weekdays and 1:00 a.m. and 10:00 a.m. on Sundays.
2. Before providing a key, magnetic card or other similar device required to attain
access to the minibar in a particular guest room to the registered guest, or before
otherwise providing access to the minibar to the registered guest, the licensee verifies
that each registered guest to whom a key, magnetic card or similar device is provided or
to whom access is otherwise provided is not a person under the legal drinking age.
3. All employees handling the spirituous liquors to be placed in the minibar in any
guest room, including an employee who inventories or restocks and replenishes the
spirituous liquors in the minibar, are at least nineteen years of age.
4. The minibar is not replenished or restocked with spirituous liquor between the
hours of 1:00 a.m. and 6:00 a.m. on weekdays and 1:00 a.m. and 10:00 a.m. on Sundays.
5. The minibar is located on the premises of a person who has been issued an
on-sale retailer's license.
6. The minibar contains no more than thirty individual portions of spirituous
liquor at any one time.
B. A minibar may be part of another cabinet or similar device, whether refrigerated
in whole or in part or nonrefrigerated, from which nonalcoholic beverages or food may be
purchased by the guests in hotel or motel guest rooms. The portion of the cabinet or
similar device in which spirituous liquors are stored shall comply with the requirements
of this section.
C. The director may prescribe rules to regulate the use of a minibar including
rules on the size of containers of spirituous liquors and may by rule reduce from thirty
the number of containers of spirituous liquor placed in the minibar.
D. For purposes of this section:
1. "Hotel" or "motel" means an establishment which is licensed to sell spirituous
liquors and which contains guest room accommodations with respect to which the
predominant relationship existing between the occupants of the rooms and the owner or
operator of the establishment is that of innkeeper and guest. For purposes of this
paragraph the existence of other legal relationships as between some occupants and the
owner or operator is immaterial.
2. "Minibar" means a closed container, either refrigerated in whole or in part or
nonrefrigerated, where access to the interior is restricted by means of a locking device
which requires the use of a key, magnetic card or similar device.
4-205.07 Conveyance license for excursion boats
A. The director may issue a conveyance license to the owner or lessee of an
excursion boat if all of the following conditions apply:
1. The applicant for the license shall designate a dock as the home port for the
boat.
2. The notice of the license application shall be prominently placed on the
designated dock that is the home port.
3. The boat shall have a displacement of not less than fifty tons and shall have a
passenger capacity of eighty persons or more.
4. The boat shall have a current coast guard certification.
B. The licensee or employee shall comply with each of the following requirements:
1. Liquor sales shall be for on premises consumption only.
2. No liquor sales shall be made in dock earlier than thirty minutes prior to
departure or later than thirty minutes after docking.
3. No person may be permitted to bring spirituous liquor onto the boat except that
purchased by the licensee or employee for resale according to law.
4. No boat captain or crew member shall consume spirituous liquor while serving as
crew member.
C. The director may adopt rules to administer this section and to prevent
violations of this title.
4-205 Issuance of club license; regulatoryprovisions; revocation
A. The director may issue one club license to any club as defined in section 4-101.
B. The holder of a club license is authorized to sell and serve alcoholic beverages
for consumption only within the licensed establishment owned, leased or occupied by the
club, and only to bona fide members of the club, and to serve and sell to members' bona
fide guests.
C. No member and no officer, agent or employee of a club licensee shall be paid or
shall directly or indirectly receive, in the form of salary or other compensation, any of
the profits from the revenue producing activities of the club or from the distribution or
sale of alcoholic beverages to the members of the club or to its guests, beyond the
amount of the salary as fixed and voted on at a regular meeting by the members of the
club licensee or by its governing body out of the general revenue of the licensee, nor
shall such salaries or compensation be in excess of reasonable compensation for the
services actually performed.
D. The director may revoke a club license issued pursuant to this section in any
case in which the licensee ceases to operate as a bona fide club as defined in section
4-101.
E. No club may hold a spirituous liquor license other than one issued pursuant to
this section, except that any club which on January 1, 1975 holds a spirituous liquor
license other than one issued pursuant to this section may use such license until such
time as the license is revoked or reverted.
4-206.01 Bar, beer and wine bar or liquor store licenses; number permitted; fee
A. The director shall determine the total number of spirituous liquor licenses by
type and in each county. The director shall publish a listing of that information as
determined by the director.
B. In each county, the director shall issue additional bar, beer and wine bar or
liquor store licenses at the rate of one of each type for each additional ten thousand
person increase over the population in that county as of July 1, 2010. For purposes of
this paragraph, the population of a county is deemed to be the population estimated by
the department of economic security as of July 1 of each year.
C. A person issued a license authorized by subsection B of this section shall pay
an additional issuance fee equal to the license's fair market value which shall be paid
to the state general fund. The fair market value shall be defined to mean the mean value
of licenses of the same type sold on the open market in the same county during the prior
twelve months, but if there are not three or more such sales then the fair market value
shall be determined by three appraisals furnished to the department by independent
professional appraisers employed by the director.
D. The director shall employ professional appraisal services to determine the fair
market value of bar, beer and wine bar or liquor store licenses.
E. If more than one person applies for an available license, a priority of
applicants shall be determined by a random selection method prescribed by the director. 4-207.01 Submission of floor plan required; alteration of licensed premises; ingress and egress to off-sale package sales in on-sale licensed premises
A. No licensee of premises approved for transfer or an original location of on-sale
spirituous liquor license shall open such licensed premises to the public for sale of
spirituous liquor until the licensee shall first have filed with the director floor plans
and diagrams completely disclosing and designating the physical arrangement of the
licensed premises, including whether the licensee intends to sell spirituous liquor by
means of a drive-through or other physical feature of the licensed premises that allows a
customer to purchase spirituous liquor without leaving the customer's vehicle, and shall
have secured the written approval of the director to so open and operate such premises.
B. No licensee shall alter or change the physical arrangement of his licensed
premises so as to encompass greater space or the use of different or additional
entrances, openings or accommodations than the space, entrance or entrances, openings or
accommodations offered to the public at the time of issuance of the licensee's license or
a prior written approval of the licensed premises, without first having filed with the
director floor plans and diagrams completely disclosing and designating the proposed
physical alterations of the licensed premises, including the addition of a drive-through
or other physical feature to the licensed premises that allows a customer to purchase
spirituous liquor without leaving the customer's vehicle, and shall have secured the
written approval by the director. This subsection shall apply to any person to person
transfer of the licensed premises.
C. The provisions of this section shall not be construed to prohibit in any way
off-sale package sales in on-sale licensed premises, but the permission to open the
premises to the public under subsections A and B of this section shall not be granted if
the licensee under the privilege provided for off-sale under an on-sale license proposes
to maintain an off-sale operation with ingress and egress directly from the outside of
such premises to such off-sale operation other than the ingress and egress provided for
the on-sale operation of the licensed premises.
D. The provisions of this section shall apply to all applications, transfers and
alterations. 4-207 Restrictions on licensing premises nearschool or church buildings; definition
A. A retailer's license shall not be issued for any premises which are, at the time
the license application is received by the director, within three hundred horizontal feet
of a church, within three hundred horizontal feet of a public or private school building
with kindergarten programs or any of grades one through twelve or within three hundred
horizontal feet of a fenced recreational area adjacent to such school building. This
section does not prohibit the renewal of a valid license issued pursuant to this title
if, on the date that the original application for the license is filed, the premises were
not within three hundred horizontal feet of a church, within three hundred horizontal
feet of a public or private school building with kindergarten programs or any of grades
one through twelve or within three hundred horizontal feet of a fenced recreational area
adjacent to such school building.
B. Subsection A of this section does not apply to a:
1. Restaurant issued a license pursuant to section 4-205.02.
2. Special event license issued pursuant to section 4-203.02.
3. Hotel-motel issued a license pursuant to section 4-205.01.
4. Government license issued pursuant to section 4-205.03.
5. Fenced playing area of a golf course issued a license pursuant to this article.
C. Notwithstanding subsection A of this section:
1. A spirituous liquor license which is validly issued and which is, on the date an
application for a transfer is filed, within three hundred horizontal feet of a church,
within three hundred horizontal feet of a public or private school building with
kindergarten programs or any of grades one through twelve or within three hundred
horizontal feet of a fenced recreational area adjacent to such school building may be
transferred person to person pursuant to sections 4-201, 4-202 and 4-203 and remains in
full force until the license is terminated in any manner, unless renewed pursuant to
section 4-209, subsection A.
2. A person may be issued a spirituous liquor license pursuant to sections 4-201,
4-202 and 4-203 of the same class for premises which have a nontransferable spirituous
liquor license validly issued if the premises are, on the date an application for such
license is filed, within three hundred horizontal feet of a church, within three hundred
horizontal feet of a public or private school building with kindergarten programs or any
of grades one through twelve or within three hundred horizontal feet of a fenced
recreational area adjacent to such school building and the license remains in full force
until the license is terminated in any manner, unless renewed pursuant to section 4-209,
subsection A.
3. A person may be issued a liquor store license pursuant to sections 4-201, 4-202,
4-203 and 4-206.01 for premises which have a beer and wine store license validly issued
if the premises, on the date an application for such license is filed, are within three
hundred horizontal feet of a church, within three hundred horizontal feet of a public or
private school building with kindergarten programs or any of grades one through twelve or
within three hundred horizontal feet of a fenced recreational area adjacent to such
school building and the license remains in full force until the license is terminated in
any manner, unless renewed pursuant to section 4-209, subsection A.
D. For the purposes of this section "church" means a building which is erected or
converted for use as a church, where services are regularly convened, which is used
primarily for religious worship and schooling and which a reasonable person would
conclude is a church by reason of design, signs or architectural or other features.
4-208 Rejection as to location
A. The director shall not accept an application nor issue a license to sell or deal
in spirituous liquors at a location for which a prior application has been rejected until
twelve months after the date of the prior rejection.
B. No application for a license to deal in spirituous liquors shall be filed with
nor accepted by the director within five years after the date of the rejection of the
last of two previous applications at the same location has been rejected by the board or
the director on the basis of lack of public convenience and necessity or denied on appeal
pursuant to section 4-211. It shall be incumbent upon the applicant for a license filed
after the expiration of the five-year period to establish that there have been
significant changes of fact in respect to the location which justify the issuance of a
license to deal in spirituous liquor.
4-209 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 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.
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.
4-210.01 Authority to impose civil penalty; training
A. In lieu of or in addition to the suspension or revocation of or refusal to renew
a license authorized by section 4-210, subsection A, the director may impose a civil
penalty of not less than two hundred nor more than three thousand dollars for each
violation. The licensee is entitled to appeal the decision of the director to the
board. The board may affirm, modify or reverse the finding and decision of the director
and may decrease the civil penalty imposed by the director.
B. In addition to the imposition of any other penalty authorized by this title, the
director may impose a requirement that the licensee or other person attend a training
program approved by the department.
4-210.02 Appeals from director
A. Except as provided in section 4-203.01, subsection E, a decision issued by the
director is not final for purposes of appeal to superior court until it has first been
appealed to and ruled on by the board. Any aggrieved party may appeal any final decision
of the director regarding applicants or licensees to the board based on a contention that
the decision was any of the following:
1. Founded on or contained errors of law which shall specifically include errors of
construction or application of any relevant rules.
2. Unsupported by any competent evidence as disclosed by the entire record.
3. Materially affected by unlawful procedures.
4. Based on a violation of any constitutional provision.
5. Arbitrary or capricious.
B. The aggrieved party shall file the appeal in writing with the department within
fifteen days after service of the notice of the decision of the director. The decision of
the director is suspended until the determination of any appeal by the board.
C. The board or an administrative law judge shall conduct a hearing on the appeal
pursuant to title 41, chapter 6, article 10 and may accept any relevant and material
evidence and testimony and exercise the rights prescribed by section 12-2212 or section
4-112, subsection F. At the hearing an attorney or corporate officer or employee of a
corporation may represent the corporation. The department shall prepare an official
record of the hearing, including all testimony recorded mechanically or stenographically
and all exhibits introduced. The department is not required to transcribe such record
except pursuant to an appeal to the superior court, except that, upon written request and
receipt of a reasonable fee for transcribing such record, the department may transcribe
the record or allow for its transcription by the person requesting.
D. The board may affirm, reverse or modify any decision issued by the director.
4-210 Grounds for revocation, suspension andrefusal to renew; notice; complaints; hearings
A. After notice and hearing, the director may suspend, revoke or refuse to renew
any license issued pursuant to this chapter for any of the following reasons:
1. There occurs on the licensed premises repeated acts of violence or disorderly
conduct.
2. The licensee fails to satisfactorily maintain the capability, qualifications and
reliability requirements of an applicant for a license prescribed in section 4-202 or
4-203.
3. The licensee or controlling person knowingly files with the department an
application or other document which contains material information which is false or
misleading or while under oath knowingly gives testimony in an investigation or other
proceeding under this title which is false or misleading.
4. The licensee or controlling person is on the premises habitually intoxicated.
5. The licensed business is delinquent for more than ninety days in the payment of
taxes, penalties or interest to the state or to any political subdivision of the state.
6. The licensee or controlling person obtains, assigns, transfers or sells a
spirituous liquor license without compliance with this title or leases or subleases a
license.
7. The licensee fails to keep for two years and make available to the department
upon reasonable request all invoices, records, bills or other papers and documents
relating to the purchase, sale and delivery of spirituous liquors and, in the case of a
restaurant or hotel-motel licensee, all invoices, records, bills or other papers and
documents relating to the purchase, sale and delivery of food.
8. The licensee or controlling person is convicted of a felony provided that for a
conviction of a corporation to serve as a reason for any action by the director, conduct
which constitutes the corporate offense and was the basis for the felony conviction must
have been engaged in, authorized, solicited, commanded or recklessly tolerated by the
directors of the corporation or by a high managerial agent acting within the scope of
employment.
9. The licensee or controlling person violates or fails to comply with this title,
any rule adopted pursuant to this title or any liquor law of this state or any other
state.
10. The licensee fails to take reasonable steps to protect the safety of a customer
of the licensee entering, leaving or remaining on the licensed premises when the licensee
knew or reasonably should have known of the danger to such person, or the licensee fails
to take reasonable steps to intervene by notifying law enforcement officials or otherwise
to prevent or break up an act of violence or an altercation occurring on the licensed
premises or immediately adjacent to the premises when the licensee knew or reasonably
should have known of such acts of violence or altercations.
11. The licensee or controlling person lacks good moral character.
12. The licensee or controlling person knowingly associates with a person who has
engaged in racketeering, as defined in section 13-2301, or has been convicted of a
felony, and the association is of such a nature as to create a reasonable risk that the
licensee will fail to conform to the requirements of this title or of any criminal
statute of this state.
B. For the purposes of:
1. Subsection A, paragraph 8 of this section, "high managerial agent" means an
officer of a corporation or any other agent of the corporation in a position of
comparable authority with respect to the formulation of corporate policy.
2. Subsection A, paragraphs 9 and 10 of this section, acts or omissions of an
employee of a licensee, which violate any provision of this title or rules adopted
pursuant to this title shall be deemed to be acts or omissions of the licensee. Acts or
omissions by an employee or licensee committed during the time the licensed premises were
operated pursuant to an interim permit or without a license may be charged as if they had
been committed during the period the premises were duly licensed.
C. The director may suspend, revoke or refuse to issue, transfer or renew a license
under this section based solely on the unrelated conduct or fitness of any officer,
director, managing agent or other controlling person if the controlling person retains
any interest in or control of the licensee after sixty days following written notice to
the licensee. If the controlling person holds stock in a corporate licensee or is a
partner in a partnership licensee, the controlling person may only divest himself of his
interest by transferring the interest to the existing stockholders or partners who must
demonstrate to the department that they meet all the requirements for licensure. For the
purposes of this subsection, the conduct or fitness of a controlling person is unrelated
if it would not be attributable to the licensee.
D. If the director finds, based on clear and convincing evidence in the record,
that a violation involves the use by the licensee of a drive-through or other physical
feature of the licensed premises that allows a customer to purchase spirituous liquor
without leaving the customer's vehicle and that the use of that drive-through or other
physical feature caused the violation, the director may suspend or terminate the
licensee's use of the drive-through or other physical feature for the sale of spirituous
liquor, in addition to any other sanction.
E. The director may refuse to transfer any license or issue a new license at the
same location if the director has filed a complaint against the license or location which
has not been resolved alleging a violation of any of the grounds set forth in subsection
A of this section until such time as the complaint has been finally adjudicated.
F. The director shall receive all complaints of alleged violations of this chapter
and is responsible for the investigation of all allegations of a violation of, or
noncompliance with, this title, any rule adopted pursuant to this title or any condition
imposed upon the licensee by the license. When the director receives three such
complaints from any law enforcement agency resulting from three separate incidents at a
licensed establishment within a twelve-month period, the director shall transmit a
written report to the board setting forth the complaints, the results of any
investigation conducted by the law enforcement agency or the department relating to the
complaints and a history of all prior complaints against the license and their
disposition. The board shall review the report and may direct the director to conduct
further investigation of a complaint or to serve a licensee with a complaint and notice
of a hearing pursuant to subsection G of this section.
G. Upon the director's initiation of an investigation or upon the receipt of a
complaint and an investigation of the complaint as deemed necessary, the director may
cause a complaint and notice of a hearing to be directed to the licensee setting forth
the violations alleged against the licensee and directing the licensee, within fifteen
days after service of the complaint and notice of a hearing, to appear by filing with the
director an answer to the complaint. Failure of the licensee to answer may be deemed an
admission by the licensee of commission of the act charged in the complaint. The
director may then vacate the hearing and impose any sanction provided by this article.
The director may waive any sanction for good cause shown including excusable neglect.
With respect to any violation of this title or any rule adopted pursuant to this title
that is based on the act or omission of a licensee's employee, the director shall
consider evidence of mitigation presented by the licensee and established by a
preponderance of the evidence that the employee acted intentionally and in violation of
the express direction or policy adopted by the licensee and communicated to the employee
and that the employee successfully completed training in a course approved by the
director pursuant to section 4-112, subsection G, paragraph 2. The director may set the
hearing before himself or an administrative law judge on any of the grounds set forth in
subsection A of this section. Instead of issuing a complaint, the director may provide
for informal disposition of the matter by consent agreement or may issue a written
warning to the licensee. If a warning is issued, the licensee may reply in writing and
the director shall keep a record of the warning and the reply.
H. A hearing shall conform to the requirements of title 41, chapter 6, article 10.
At the hearing an attorney or corporate officer or employee of a corporation may
represent the corporation.
I. The expiration, cancellation, revocation, reversion, surrender, acceptance of
surrender or termination in any other manner of a license does not prevent the initiation
or completion of a disciplinary proceeding pursuant to this section against the licensee
or license. An order issued pursuant to a disciplinary proceeding against a license is
enforceable against other licenses or subsequent licenses in which the licensee or
controlling person of the license has a controlling interest.
J. The department shall provide the same notice as is provided to the licensee to a
lienholder, which has provided a document under section 4-112, subsection B, paragraph 3,
of all disciplinary or compliance action with respect to a license issued pursuant to
this title. The state shall not be liable for damages for any failure to provide any
notice pursuant to this subsection.
K. In any disciplinary action pursuant to this title, a lienholder may participate
in the determination of the action. The director shall consider mitigation on behalf of
the lienholder if the lienholder proves all of the following by a preponderance of the
evidence:
1. That the lienholder's interest is a bona fide security interest. For the
purposes of this paragraph, "bona fide security interest" means the lienholder provides
actual consideration to the licensee or the licensee's predecessor in interest in
exchange for the lienholder's interest. Bona fide security interest includes a lien taken
by the seller of a license as security for the seller's receipt of all or part of the
purchase price of the license.
2. That a statement of legal or equitable interest was filed with the department
before the alleged conduct occurred which is the basis for the action against the
license.
3. That the lienholder took reasonable steps to correct the licensee's prior
actions, if any, or initiated an action pursuant to available contract rights against the
licensee for the forfeiture of the license after being provided with notice by the
department of disciplinary action as provided in subsection J of this section.
4. That the lienholder was free of responsibility for the conduct which is the
basis for the proposed revocation.
5. That the lienholder reasonably attempted to remain informed by the licensee
about the business' conduct.
L. If the director decides not to revoke the license based on the circumstances
provided in subsection K of this section, the director may issue an order requiring
either, or both, of the following:
1. The forfeiture of all interest of the licensee in the license.
2. The lienholder to pay any civil monetary penalty imposed on the licensee.
M. If any on-sale licensee proposes to provide large capacity entertainment events
or sporting events with an attendance capacity exceeding a limit established by the
director, the director may request a security plan from the licensee that may include
trained security officers, lighting and other requirements. This subsection exclusively
prescribes the security requirements for a licensee and does not create any civil
liability for the state, its agencies, agents or employees or a person licensed under
this title or agents or employees of a licensee.
4-211 Judicial review; bond
A. Except as provided in section 41-1092.08, subsection H, final decisions of the
board are subject to judicial review pursuant to title 12, chapter 7, article 6.
B. In the case of any judicial review of a decision of the department, the director
may require the posting of a bond with the court to reimburse the department for
reasonable costs in transcribing and preparing the record of the department. The bond is
payable to the department if the court awards costs to the department pursuant to section
12-912.
4-212 Injunctions
If the board or the director has reasonable grounds to believe that a person is
violating section 4-244.05 or is manufacturing, selling or dealing in spirituous liquor
without a valid license, permit or registration in violation of this title, the board or
the director may apply to the superior court for a temporary restraining order and other
injunctive relief prohibiting the specific acts complained of by the board or the
director.
4-213 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 such an
audit more than once a year after the initial twelve months of operation.
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. If the audit reveals that the licensee did not meet the definition of a
restaurant as prescribed in section 4-205.02, the department shall revoke the license.
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. 4-221 Registration of stills; forfeiture; sale;proceeds
A. Every person having in his possession or custody or under his control a still or
distilling apparatus shall register it with the director under the rules the director may
prescribe, and every still or distilling apparatus not so registered, together with all
mash, wort or wash, for distillation or for the production of spirits or alcohol, and all
finished products, together with all personal property in the possession or custody of,
or under the control of any person, which may be used in the manufacture or
transportation of spirituous liquors, and which is found in the building or in any yard
or enclosure connected with the building in which the unregistered still or distilling
apparatus is located, shall be forfeited to the state.
B. The still, distilling apparatus, mash, wort, wash or finished products shall
forthwith be destroyed by any peace officer, and all personal property forfeited to the
state shall be sold at public auction to the highest bidder for cash on five days'
notice.
C. The notice shall be posted at the courthouse in the county in which the personal
property was seized or at the office of the director and shall be published in a
newspaper of general circulation published in this state which is nearest to the place
where the personal property was seized. After paying the expenses of the publication and
the expenses of sale from the proceeds of the sale, any balance shall be paid into the
general fund of the state.
4-222 Registration of retail agents;fees
A. Every person who holds a bar, beer and wine bar, liquor store, beer and wine
store, club, hotel-motel or restaurant license and who is authorized by other similarly
licensed retailers to act as their retail agent shall register with the director. Such
registration shall be in accordance with the regulations adopted by the director pursuant
to section 4-112 and shall also include a listing of the names and business addresses of
those similarly licensed retailers who have authorized him to act as their retail
agent. While possessing a certificate of registration, a retail agent shall be entitled
to purchase and shall accept delivery of spirituous liquors for which he is licensed for
and on behalf of himself and those similarly licensed retailers who have authorized him
to act as their retail agent. Upon the termination of such authorization by any
retailer, the retail agent shall promptly notify the director. Nothing in this section
shall require a wholesaler to sell malt beverages to a registered retail agent for
distribution to other retailers.
B. A fee of five dollars shall be collected for each registered retailer in this
state, and a fee of fifty dollars for each registered agent for a distillery, winery,
brewery, importer or broker having its place of manufacture or business without the
state.
C. The director shall issue a certificate of registration to each person so
registered as provided in this section, and may, for good cause shown, cancel any
certificate of registration so issued.
4-223 Authority of cities and towns to taxtransactions involving spirituous liquors; prohibitions
A. In addition to the taxes provided for in this chapter, incorporated cities and
towns shall have the power to levy a tax on the privilege of engaging or continuing in
the business of selling spirituous liquor at retail within their corporate limits and to
impose a permit tax or fee, but this section shall not apply to wholesalers licensed
under section 4-209.
B. This section shall not be construed to give to incorporated cities and towns
power to prohibit the manufacture, sale, distribution, and disposal of intoxicating
liquors.
4-224 Local ordinances; prohibitions
A city, town or county shall not adopt ordinances or regulations in conflict with
the provisions of this title including, but not limited to, ordinances or regulations
pertaining to hours and days of liquor sales and ordinances or regulations that conflict
with the definition of restaurant contained in this title.
4-226 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, 34 or 40. 4-227 Spirituous liquor pricing; prohibition;definitions
A. Subject to subsection B of this section, a wholesaler shall sell its product to
a qualified retail cooperative without regard to the volume of the product purchased by
the cooperative at the lowest price at which the wholesaler sells the product to any
other retail licensee at or near the location of the cooperative.
B. The provisions of subsection A of this section shall apply only to a purchase by
a retail cooperative of fifty cases or more of a product on a single occasion.
C. As used in this section:
1. "Product" means a particular brand of spirituous liquor in a designated size
container or a mix of brands and containers when sold on a combined basis established by
the wholesaler which is offered on quantity discount terms established by the wholesaler.
2. "Qualified retail cooperative" means a retail cooperative of twenty retail
licensees or more established pursuant to section 4-222.
4-228 Front entrance lock prohibited;exception
A. Except as provided in this section, an on-sale licensee shall not lock or permit
to be locked the front entrance to a licensed establishment until all persons other than
the licensee or the licensee's employees on duty have left the premises. This section
does not prohibit locking the premises immediately after the closing of the premises if
an employee and one other person remain on the premises.
B. If the holder of a club license issued pursuant to section 4-205 has bona fide
concerns regarding the safety of club members and their guests, the licensee may apply to
the director for permission to lock the front entrance to the licensed
establishment. The application shall be on a form prescribed by the director and shall
include a description of the safety concerns.
C. The director shall determine in the director's discretion whether to grant
permission to lock the front entrance to a club license. The director shall consider,
among other factors, the safety concerns documented by the club licensee and the
location, method of operation and regulatory history of the club. Fire fighters, law
enforcement officers, emergency medical personnel and the director shall have immediate
access by means of a master key, master card or other similar device to the licensed
establishment at all times that the establishment is occupied. At any time the director
may revoke permission to lock the front entrance granted pursuant to this section.
4-241 Selling or giving liquor to underageperson; illegally obtaining liquor by underage person; violation;classification
A. A licensee, an employee or any other person who questions or has reason to
question whether or not a person ordering, purchasing, attempting to purchase or
otherwise procuring or attempting to procure the serving or delivery of spirituous liquor
is under the legal drinking age shall require the person to exhibit a written instrument
of identification and may require the person on a card to be retained by the licensee to
sign the person's name, the date, and the number of such identification. An off-sale
retail licensee or employee of an off-sale retail licensee shall require an instrument of
identification from any customer who appears to be under twenty-seven years of age and
who is using a drive-through or other physical feature of the licensed premises that
allows a customer to purchase spirituous liquor without leaving the customer's vehicle.
The following written instruments are the only acceptable types of identification:
1. An unexpired driver license issued by any state or Canada if the license
includes a picture of the licensee.
2. A nonoperating identification license issued pursuant to section 28-3165 or an
equivalent form of identification license issued by any state or Canada if the license
includes a picture of the person and the person's date of birth.
3. An armed forces identification card.
4. A valid unexpired passport or border crossing identification card which is
issued by a government or voter card issued by the government of Mexico and which
contains a photograph of the person and the person's date of birth.
B. A licensee, an employee or any other person who sells, gives, serves or
furnishes spirituous liquor to a person who is under the legal drinking age without
having recorded and retained a record of the person's age, an electronic file or a
printed document produced by a device that reads the person's age from the instrument of
identification and obtains a signature from any person who the licensee has reason to
question if the identification belonged to the person presenting the identification, or a
dated and signed photocopy of the instrument of identification exhibited as prescribed by
subsection A of this section is deemed to have constructive knowledge of the person's
age. This section shall not shift the presumption of constructive knowledge of a person's
age for anyone using a device that reads the person's age from the instrument of
identification, if a reasonable person would have reason to question if the
identification belonged to the person presenting the identification.
C. A person who is under the legal drinking age and who misrepresents the person's
age to any person by means of a written instrument of identification with the intent to
induce a person to sell, serve, give or furnish spirituous liquor contrary to law is
guilty of a class 1 misdemeanor.
D. A person who is under the legal drinking age and who solicits another person to
purchase, sell, give, serve or furnish spirituous liquor contrary to law is guilty of a
class 3 misdemeanor.
E. A person who is under the legal drinking age and who uses a fraudulent or false
written instrument of identification or identification of another person or uses a valid
license or identification of another person to gain access to a licensed establishment is
guilty of a class 1 misdemeanor.
F. A person who uses a driver or nonoperating identification license in violation
of subsection C or E of this section is subject to suspension of the driver or
nonoperating identification license as provided in section 28-3309. A person who does
not have a valid driver or nonoperating identification license and who uses a driver or
nonoperating identification license of another in violation of subsection C or E of this
section has the person's right to apply for a driver or nonoperating identification
license suspended as provided by section 28-3309.
G. A person who knowingly influences the sale, giving or serving of spirituous
liquor to a person under the legal drinking age by misrepresenting the age of such person
or who orders, requests, receives or procures spirituous liquor from any licensee,
employee or other person with the intent of selling, giving or serving it to a person
under the legal drinking age is guilty of a class 1 misdemeanor. In addition to other
penalties provided by law, a judge may suspend a driver license issued to or the driving
privilege of a person for not more than thirty days for a first conviction and not more
than six months for a second or subsequent conviction under this subsection.
H. A person who is of legal drinking age and who is an occupant of unlicensed
premises is guilty of a class 1 misdemeanor if both of the following apply:
1. Such person knowingly allows a gathering on such unlicensed premises of two or
more persons who are under the legal drinking age and who are neither:
(a) Members of the immediate family of such person.
(b) Permanently residing with such person.
2. Such person knows or should know that one or more of the persons under the legal
drinking age is in possession of or consuming spirituous liquor on the unlicensed
premises.
I. For the purposes of subsection H of this section, "occupant" means a person who
has legal possession or the legal right to exclude others from the unlicensed premises.
J. A peace officer shall forward or electronically transfer to the director of the
department of transportation the affidavit required by section 28-3310 if the peace
officer has arrested a person for the commission of an offense for which, on conviction,
suspension of the license or privilege to operate a motor vehicle is required by section
28-3309, subsection A, B or D, or if the peace officer has confiscated a false
identification document used by the person to gain access to licensed premises.
K. A person who acts under a program of testing compliance with this title which is
approved by the director is not in violation of section 4-244.
L. Law enforcement agencies may use persons who are under the legal drinking age to
test compliance with this section and section 4-244, paragraph 9 by a licensee if the law
enforcement agency has reasonable suspicion that the licensee is violating this section
or section 4-244, paragraph 9. A person who is under the legal drinking age and who
purchases or attempts to purchase spirituous liquor under the direction of a law
enforcement agency pursuant to this subsection is immune from prosecution for that
purchase or attempted purchase. Law enforcement agencies may use a person under the legal
drinking age pursuant to this subsection only if:
1. The person is at least fifteen but not more than nineteen years of age.
2. The person is not employed on an incentive or quota basis.
3. The person's appearance is that of a person who is under the legal drinking age.
4. A photograph of the person is taken no more than twelve hours before the
purchase or attempted purchase. The photograph shall accurately depict the person's
appearance and attire. A licensee or an employee of a licensee who is cited for selling
spirituous liquor to a person under the legal drinking age pursuant to this subsection
shall be permitted to inspect the photograph immediately after the citation is issued.
The person's appearance at any trial or administrative hearing that results from a
citation shall not be substantially different from the person's appearance at the time
the citation was issued.
5. The person places, receives and pays for the person's order of spirituous
liquor. An adult shall not accompany the person onto the premises of the licensee.
6. The person does not consume any spirituous liquor.
M. The department may adopt rules to carry out the purposes of this section.
4-242 Sale of liquor on credit prohibited;exceptions
It is unlawful for a licensee, or an employee or agent of a licensee, to sell or
offer to sell, directly or indirectly, or to sanction the sale on credit of spirituous
liquor, or to give, lend or advance money or anything of value for the purpose of
purchasing or bartering for spirituous liquor, except that sales of spirituous liquor
consumed on the licensed premises may be included on bills rendered to registered guests
in hotels and motels, and spirituous liquor sales for on or off premises consumption may
be made with credit cards approved by the director, and sales of spirituous liquor
consumed on the premises of private clubs may be included on bills rendered to bona fide
members.
4-243.01 Purchasing from other than primary source of supply unlawful; definitions
A. It is unlawful:
1. For any supplier to solicit, accept or fill any order for any spirituous liquor
from any wholesaler in this state unless the supplier is the primary source of supply for
the brand of spirituous liquor sold or sought to be sold and is duly licensed by the
board.
2. For any wholesaler or any other licensee in this state to order, purchase or
receive any spirituous liquor from any supplier unless the supplier is the primary source
of supply for the brand ordered, purchased or received.
3. Except as provided by section 4-243.02 for a retailer to order, purchase or
receive any spirituous liquor from any source other than any of the following:
(a) A wholesaler who has purchased the brand from the primary source of supply.
(b) A wholesaler who is the designated representative of the primary source of
supply in this state and who has purchased such spirituous liquor from the designated
representative of the primary source of supply within or without this state.
(c) A registered retail agent pursuant to section 4-101.
(d) A domestic farm winery or domestic microbrewery licensed under section
4-205.04.
B. All spirituous liquor shipped into this state shall be invoiced to the
wholesaler by the primary source of supply. All spirituous liquor shall be unloaded and
remain at the wholesaler's premises for at least twenty-four hours. A copy of each
invoice shall be transmitted by the wholesaler and the primary source of supply to the
department of revenue.
C. The director may suspend for a period of one year the license of any wholesaler
or retailer who violates this section.
D. Upon determination by the department of revenue that a primary source of supply
has violated this section, no wholesaler may accept any shipment of spirituous liquor
from such primary source of supply for a period of one year.
E. For the purposes of this section:
1. "Primary source of supply" means the distiller, producer, owner of the commodity
at the time it becomes a marketable product, bottler or exclusive agent of any such
distributor or owner. In the case of imported products, the primary source of supply
means either the foreign producer, owner, bottler or agent or the prime importer from, or
the exclusive agent in, the United States of the foreign distiller, producer, bottler or
owner.
2. "Wholesaler" means any person, firm or corporation that is licensed in this
state to sell to retailers and is engaged in the business of warehousing and distributing
brands of various suppliers to retailers generally in the marketing area in which the
wholesaler is located. 4-243.02 Sale of beer by in-state producer; limitations
A person who holds an in-state producer's license may sell beer produced by the
in-state producer through the producer's own on-sale retail premises if:
1. The in-state producer also holds an on-sale retail license.
2. The retail sale of the beer is on or adjacent to the premises of the in-state
producer.
4-243.04 On-sale retail licensees; ownership interests; conditions
A. Notwithstanding section 4-243, a distiller, vintner, brewer, rectifier, blender
or other producer of spirituous liquor may have a direct or indirect ownership interest
or a financial interest in the license, premises or business on an on-sale retail
licensee if each of the following conditions are met:
1. The retail licensee purchases all spirituous liquor for sale at the premises
from wholesalers that are licensed in this state.
2. The retail licensee does not purchase or sell any brand of spirituous liquor
produced by the distiller, vintner, brewer, rectifier, blender or other producer of
spirituous liquor or by any of its subsidiaries or affiliates.
3. The sale and service of spirituous liquor at the premises is an independent
business that is owned, managed and supervised by a person or entity that is not employed
by and does not have an ownership interest in the retailer's license, premises or
business and is not employed by and does not have an ownership interest in the distiller,
vintner, brewer, rectifier, blender or other producer of spirituous liquor. The person
owning, managing and supervising the sale and service of spirituous liquor on the
premises of the on-sale retail licensee shall be properly licensed by the department and
shall have entered into a commercial lease or operating or management agreement with the
owner or operator of the premises. This paragraph does not prohibit the sale and service
of spirituous liquor by employees of the owner or operator of the premises who act under
the supervision of the independent licensee. This paragraph does not prevent the payment
of rent, rent calculated as a percentage of gross receipts or a percentage of gross
receipts from the sale of spirituous liquor to the owner or operator of the premises.
B. Notwithstanding section 4-243, a distiller, vintner, brewer, rectifier, blender
or other producer of spirituous liquor may directly or indirectly furnish, give, rent,
lend or sell to an on-sale retail licensee equipment, fixtures, signs, furnishings, money
or other things of value if each of the following conditions are met:
1. The retail licensee purchases all spirituous liquor for sale at the premises
from wholesalers that are licensed in this state.
2. The retail licensee does not purchase or sell any brand of spirituous liquor
produced by the distiller, vintner, brewer, rectifier, blender or other producer of
spirituous liquor or by any of its subsidiaries or affiliates.
3. The retail licensee is a franchisee of a person that is affiliated with the
distiller, vintner, brewer, rectifier, blender or other producer of spirituous liquor and
the compensation paid by the retail licensee as a franchise fee or royalty is not based
on revenue derived from the sale of spirituous liquor.
4-243 Commercial coercion or bribery unlawful; exceptions
A. It is unlawful for a person engaged in the business of distiller, vintner,
brewer, rectifier, blender or any other producer or wholesaler of any spirituous liquor,
directly or indirectly, or through an affiliate:
1. To require that a retailer purchase spirituous liquor from the producer or
wholesaler to the exclusion, in whole or in part, of spirituous liquor sold or offered
for sale by other persons.
2. To induce a retailer by any form of commercial bribery to purchase spirituous
liquor from the producer or wholesaler to the exclusion, in whole or in part, of
spirituous liquor sold or offered for sale by other persons.
3. To acquire an interest in property owned, occupied or used by the retailer in
the retailer's business, or in a license with respect to the premises of the retailer.
4. To furnish, give, rent, lend or sell to the retailer equipment, fixtures, signs,
supplies, money, services or other things of value, subject to such exception as the
rules adopted pursuant to this title may prescribe, having regard for established trade
customs and the purposes of this subsection.
5. To pay or credit the retailer for advertising, display or distribution service,
except that the director may adopt rules regarding advertising in conjunction with
seasonal sporting events.
6. To guarantee a loan or repayment of a financial obligation of the retailer.
7. To extend credit to the retailer on a sale of spirituous liquor.
8. To require the retailer to take and dispose of a certain quota of spirituous
liquor.
9. To offer or give a bonus, a premium or compensation to the retailer or any of
the retailer's officers, employees or representatives.
B. This section does not prohibit any distiller, vintner, brewer, rectifier,
blender or other producer or wholesaler of any spirituous liquor from:
1. Giving financial and other forms of event sponsorship assistance to nonprofit or
charitable organizations for purposes of charitable fund-raising which are issued special
event licenses by the department. This section does not prohibit such suppliers from
advertising their sponsorship at such special events.
2. Providing samples to retail consumers at on-sale premises establishments
according to the following procedures:
(a) Sampling operations shall be conducted under the supervision of an employee of
the sponsoring producer or wholesaler.
(b) Sampling shall be limited to twelve ounces of beer or cooler products, six
ounces of wine or two ounces of distilled spirits per person per brand.
(c) If requesting the on-sale retailer to prepare a drink for the consumer, the
producer's or wholesaler's representative shall pay the retailer for the sample drink.
(d) The producer or wholesaler may not buy the on-sale retailer or the retailer's
employees a drink during their working hours or while they are engaged in waiting on or
serving customers.
(e) The producer or wholesaler may not give a keg of beer or any spirituous liquor
or any other gifts or benefits to the on-sale retailer.
(f) All sampling procedures shall comply with federal sampling laws and
regulations.
3. Providing samples to retail consumers on an off-sale retailer's premises
according to the following procedures:
(a) Sampling shall be conducted by an employee of the sponsoring producer or
wholesaler.
(b) The producer or wholesaler shall notify the department in writing or by
electronic means not less than ten days before the sampling of the date, time and
location of the sampling.
(c) Sampling shall be limited to three ounces of beer, one and one-half ounces of
wine or one-half ounce of distilled spirits per person per day.
(d) An off-sale retailer shall not permit sampling to be conducted on a licensed
premises on more than twelve days in any calendar year.
(e) Sampling shall be limited to one wholesaler or producer at any one off-sale
retailer's premises on any day and shall not exceed three hours on any day.
(f) A producer conducting sampling shall buy the sampled product from a wholesaler.
(g) The producer or wholesaler shall not provide samples to any person who is under
the legal drinking age.
(h) The producer or wholesaler shall designate an area in which sampling is
conducted that is in the portion of the licensed premises where spirituous liquor is
primarily displayed and separated from the remainder of the off-sale retailer's premises
by a wall, rope, door, cable, cord, chain, fence or other barrier. The producer or
wholesaler shall not permit persons under the legal drinking age from entering the area
in which sampling is conducted.
(i) The producer or wholesaler may not provide samples to the retailer or the
retailer's employees.
(j) Sampling shall not be conducted in retail premises with a total of under five
thousand square feet of retail space unless at least seventy-five per cent of the
retailer's shelf space is dedicated to the sale of spirituous liquor.
(k) The producer or wholesaler may not give spirituous liquor or any other gifts or
benefits to the off-sale retailer.
(l) All sampling procedures shall comply with federal sampling laws and
regulations.
C. Notwithstanding subsection A, paragraph 4, any wholesaler of any spirituous
liquor may sell tobacco products or foodstuffs to a retailer at a price not less than the
cost to the wholesaler.
D. It is unlawful for a retailer to request and knowingly receive anything of value
that a distiller, vintner, brewer, rectifier or blender or any other producer or
wholesaler is prohibited by subsection A from furnishing to a retailer, except that this
subsection shall not prohibit special discounts provided to retailers and based on
quantity purchases.
4-244.02 Importation of spirituous liquor unlawful; exceptions
It is unlawful for any person, not a qualified licensee under this title, to import
spirituous liquors into this state from a foreign country unless:
1. Such person is the legal drinking age.
2. Such person has been physically within such foreign country immediately prior to
such importation and such importation coincides with his return from such foreign
country.
3. The amount of spirituous liquor imported does not exceed the amount permitted by
federal law to be imported duty free, in any period of thirty-one days, except that if
the federal law prescribing such duty free limitation is repealed or amended, then in no
event shall the amount of duty free importation into this state be more than one liter of
spirituous liquor during such period.
4-244.04 Domestic farm winery sampling
Notwithstanding section 4-244, paragraphs 13 and 19, a representative of a licensed
domestic farm winery may consume small amounts and may serve the products of the licensed
domestic farm winery on the premises of an off-sale retailer or a retailer with off-sale
privileges for the purpose of sampling the products of the domestic farm winery. The
licensee of the domestic farm winery is liable for any violations of this title committed
in connection with such sampling. The director shall regulate the manner of conducting
such samplings to prevent abusive practices. The licensed retailer shall make sales of
domestic farm winery products from the licensed retail premises.
4-244.05 Unlicensed business establishment or premises; unlawful consumption of spirituous liquor; civil penalty; seizure and forfeiture of property
A. A person owning, operating, leasing, managing or controlling a business
establishment or business premises which are not properly licensed pursuant to this title
and in which any of the following occur shall not allow the consumption of spirituous
liquor in the establishment or on the premises:
1. Food or beverages are sold.
2. Entertainment is provided.
3. A membership fee or a cover charge for admission is charged.
4. A minimum purchase or rental requirement for goods or services is charged.
B. A person shall not consume spirituous liquor in a business establishment or on
business premises which are not properly licensed pursuant to this title in which food or
beverages are sold, entertainment is provided, a membership fee or a cover charge for
admission is charged or a minimum purchase or rental requirement for goods or services is
charged.
C. In addition to or in lieu of other fines or civil penalties imposed for a
violation of this section or any other action taken by the board or director, the board
or director may conduct a hearing subject to the requirements of section 4-210,
subsection G to determine whether a person has violated subsection A of this section. If
the board or director determines, after a hearing, that a person has violated subsection
A of this section the board or director may impose a civil penalty of not less than two
hundred nor more than five thousand dollars for each offense. A civil penalty imposed
pursuant to this section by the director may be appealed to the board.
D. In addition to any other remedies provided by law, any monies used or obtained
in violation of this chapter may be seized by any peace officer if the peace officer has
probable cause to believe that the money has been used or is intended to be used in
violation of this section.
E. In addition to any other remedies provided by law, the records of an
establishment that is in violation of this section may be seized by any peace officer if
the peace officer has probable cause to believe that the establishment is operating
without a valid license issued pursuant to this title.
F. In addition to any other remedies provided by law, any amount of alcohol may be
seized by any peace officer if the peace officer has probable cause to believe that the
alcohol is being used or is intended to be used in violation of this section.
G. In addition to any other remedies provided by law, the following property shall
be forfeited pursuant to section 13-2314 or title 13, chapter 39:
1. All proceeds and other assets that are derived from a violation of this section.
2. Anything of value that is used or intended to be used to facilitate a violation
of this section.
H. A person who obtains property through a violation of this section is deemed to
be an involuntary trustee of that property. An involuntary trustee and any other person
who obtains the property, except a bona fide purchaser who purchases the property for
value without notice of or participation in the unlawful conduct, holds the property,
including its proceeds and other assets, in constructive trust for the benefit of the
persons entitled to remedies pursuant to section 13-2314 or title 13, chapter 39.
I. The board or director may adopt rules authorizing and prescribing limitations
for the possession or consumption of spirituous liquor at establishments or premises
falling within the scope of subsections A and B of this section. Rules adopted pursuant
to this subsection shall authorize the possession or consumption of spirituous liquor
only at establishments or premises which permit the consumption or possession of minimal
amounts of spirituous liquor and which meet both of the following criteria:
1. The possession or consumption of spirituous liquor is permitted only as an
incidental convenience to the customers of the establishment or premises.
2. The possession or consumption of spirituous liquor is permitted only within the
hours of lawful sale as prescribed in this title, and is limited to no more than ten
hours per day.
J. Any rules adopted pursuant to subsection I of this section shall prescribe:
1. The maximum permitted occupancy of an establishment or premises.
2. The hours during which spirituous liquor may be possessed or consumed.
3. The amount of spirituous liquor that a person may possess or consume.
4. That the director, the director's agents and any peace officer empowered to
enforce the provisions of this title, in enforcing the provisions of this title, may
visit and inspect the establishment or premises during the business hours of the premises
or establishment.
K. Any rules adopted pursuant to subsection I of this section may prescribe
separate classifications of establishments or premises at which spirituous liquor may be
possessed or consumed and may establish any other provisions relating to the possession
or consumption of spirituous liquor at establishments or premises falling within the
scope of subsections A and B of this section which are necessary to maintain the health
and welfare of the community.
L. This section does not apply to establishments or premises that are not licensed
pursuant to this title and on which occurs the consumption of spirituous liquor if the
establishment or premises are owned, operated, leased, managed or controlled by the
United States, this state or a city or county of this state. 4-244 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 purposes of this section, "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.
(c) To the area of the premises used primarily for the serving of food during the
hours when food is served.
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. 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 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
person does not buy, receive, consume or possess spirituous liquor. This paragraph shall
not apply to hotel or motel guest room accommodations nor to the exhibition or display of
a firearm in conjunction with a meeting, show, class or similar event.
30. 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 not apply to hotel or motel guest
room accommodations nor to the exhibition or display of a firearm in conjunction with a
meeting, show, class or similar event. It shall be a defense to action under this
paragraph if the licensee or employee requested assistance of a peace officer to remove
such person.
31. 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. 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.
33. 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. 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. 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. For a licensee to fail to report an occurrence of an act of violence to either
the department or a law enforcement agency.
37. For a licensee to use a vending machine for the purpose of dispensing spirituous
liquor.
38. 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. 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. 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. 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. 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. 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.
4-246 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, 41 or 43 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 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 C, D or E shall pay a fine of not less than two
hundred fifty dollars. 4-247 Peace officers
No provision in this title shall be construed as limiting the rights and duties of
any peace officer to enforce any provision of this chapter.
4-248 Reporting by court of convictions;definition
A. Every court having jurisdiction over violations of this title shall forward to
the department a record of the conviction of a person in the court for a violation of any
of the provisions of this title except section 4-241, subsection C, D, E or G, section
4-244, paragraph 9, if the violator is not a licensee or an employee or agent of a
licensee, section 4-244, paragraph 20 and section 4-251.
B. For the purposes of this section "conviction" means a final conviction. A
forfeiture of bail or collateral deposited to secure a defendant's appearance in court,
which forfeiture has not been vacated, is equivalent to a conviction.
4-249 Consumption of liquor by underage personin religious service allowed
The dispensing to or possession or consumption by a person under the legal drinking
age of spirituous liquor in the performance of a religious service or ceremony is not
prohibited by this title.
4-250.01 Out-of-state person engaged in business as producer, exporter, importer or rectifier; violation; cease and desist order; civil penalty
A. An out-of-state person engaged in business as a producer, exporter, importer or
rectifier shall comply with this title as if licensed by this state. An out-of-state
person engaged in business as a producer, exporter, importer or rectifier who violates
this title is subject to a fine or a civil penalty and suspension or revocation of the
right to do business in this state.
B. If the director has reasonable cause to believe that an out-of-state person
engaged in business as a producer, exporter, importer or rectifier is acting in violation
of this title, the director may serve a cease and desist order requiring the person to
cease and desist the violation.
C. The director may impose a civil penalty not to exceed one hundred fifty thousand
dollars against an out-of-state person engaged in business as a producer, exporter,
importer or rectifier who knowingly violates a cease and desist order issued by the
director pursuant to subsection B.
4-250 Distilled spirits pricing;prohibition
A. Out-of-state producers or suppliers of distilled spirits products shall not sell
the products to an ARIZONA wholesaler at a cost higher than the lowest price at which the
item was sold by the producer or supplier, or any other person, to any wholesaler
anywhere in any other state or in the District of Columbia, or to any state or state
agency which owns and operates a retail liquor store.
B. The director may require a producer or supplier of distilled spirits products to
file an affirmation statement on a form prescribed by the director verifying the bottle
and case price as well as any discounts then in effect.
4-251 Spirituous liquor in motor vehicles;prohibitions; violation; classification; exceptions;definitions
A. It is unlawful for any person to:
1. Consume spirituous liquor while operating or while within the passenger
compartment of a motor vehicle that is located on any public highway or right-of-way of a
public highway in this state.
2. Possess an open container of spirituous liquor within the passenger compartment
of a motor vehicle that is located on any public highway or right-of-way of a public
highway in this state.
B. A person who violates subsection A of this section is guilty of a class 2
misdemeanor.
C. This section does not apply to:
1. A passenger in any bus, limousine or taxi.
2. A passenger in the living quarters of a motor home as defined in section
28-4301.
D. For the purposes of this section:
1. "Motor vehicle" means any vehicle that is driven or drawn by mechanical power
and that is designed primarily for use on public highways. Motor vehicle does not include
a vehicle operated exclusively on rails.
2. "Open container" means any bottle, can, jar or other receptacle that contains
spirituous liquor and that has been opened, has had its seal broken or the contents of
which have been partially removed.
3. "Passenger compartment" means the area of a motor vehicle designed for the
seating of the driver and other passengers of the vehicle. Passenger compartment includes
an unlocked glove compartment and any unlocked portable devices within the immediate
reach of the driver or any passengers. Passenger compartment does not include the trunk,
a locked glove compartment or the area behind the last upright seat of a motor vehicle
that is not equipped with a trunk.
4. "Public highway or right-of-way of a public highway" means the entire width
between and immediately adjacent to the boundary lines of every way maintained by the
federal government, this state or a county, city or town if any part of the way is
generally open to the use of the public for purposes of vehicular travel.
4-261 Warning signs; consumption of spirituousliquor during pregnancy; composition of signs; rules; inspection ofpremises; penalty
A. An off-sale retailer or an on-sale retailer shall post one or more signs on the
premises where spirituous liquor is sold that clearly warn pregnant women of the dangers
of consuming spirituous liquor during pregnancy. A sign shall be conspicuously placed in
the retail establishment in a position that assures it is likely to be read.
B. The sign required by this section shall contain the following language:
" Warning
Drinking alcoholic beverages, including
distilled spirits, beer, coolers and wine,
during pregnancy can cause birth defects."
C. The department of liquor licenses and control shall prepare the signs required
by this section and make them available at no cost to off-sale retailers and on-sale
retailers.
D. The signs required by this section shall be composed of block, capital letters
printed in black on white laminated paper at a minimum weight of one hundred ten pound
index. The lettering shall consume a space at least six inches by nine inches. The
letters comprising the word "warning" shall be at least three-fourths of a vertical inch
and all other letters shall be at least one-half of a vertical inch.
E. An on-sale retailer shall post the sign required by this section either within
twenty feet of each register where sales of spirituous liquor are made or behind the bar
from which spirituous liquor is served.
F. A hotel-motel licensee shall do one of the following:
1. Post at least one sign that is required by this section and that is supplied by
this state on the inside of the front door of each guest room that contains a mini-bar or
in each guest room where spirituous liquor is available through room service.
2. Display the warning language as set forth in subsection B in a space measuring
at least one inch by two inches on a room service bar menu, mini-bar cost list, placard,
folder, advertisement tent or similar item that is placed in a conspicuous place in each
guest room that assures it is likely to be read.
G. A retail licensee that uses a mobile service device for the sale of spirituous
liquor shall display the sign required by this section on such mobile service device.
H. Each off-sale licensee shall conspicuously post the sign required by this
section where a customer obtains the spirituous liquor.
I. The department shall adopt rules pertaining to the posting of the signs required
by this section.
J. Upon a determination that a licensee is in violation of the provisions of this
section, the director shall notify the licensee of the violation. If, after thirty days,
the licensee has not corrected the violation, the licensee is subject to a penalty not to
exceed five hundred dollars.
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