USA Statutes : arizona
Title : Alcoholic Beverages
Chapter : GENERAL PROVISIONS
In this title, unless the context otherwise requires:
1. "Act of violence" means an incident consisting of a riot, a brawl or a
disturbance, in which bodily injuries are sustained by any person and such injuries would
be obvious to a reasonable person, or tumultuous conduct of sufficient intensity as to
require the intervention of a peace officer to restore normal order, or an incident in
which a weapon is brandished, displayed or used. Act of violence does not include the use
of nonlethal devices by a peace officer.
2. "Aggrieved party" means a person who resides at, owns or leases property within
a one mile radius of a premises proposed to be licensed and who filed a written request
with the department to speak in favor of or opposition to the issuance of the license no
later than sixty days after the filing of the application or fifteen days after action by
the local governing body, whichever is later.
3. "Beer" means any beverage obtained by the alcoholic fermentation, infusion or
decoction of barley malt, hops, or other ingredients not drinkable, or any combination of
4. "Board" means the state liquor board.
5. "Bona fide guest" means:
(a) A person who is actually a houseguest or a person whose presence as a guest is
in response to a specific and personal invitation.
(b) In the case of a club that meets the criteria prescribed in paragraph 7,
subdivision (a) of this section, a current member of the armed services of the United
States who presents proper military identification and any member of a recognized
veterans' organization of any country allied with the United States during current or
past wars or through treaty arrangements.
6. "Broken package" means any container of spirituous liquor on which the United
States tax seal has been broken or removed, or from which the cap, cork or seal placed
thereupon by the manufacturer has been removed.
7. "Club" includes any of the following organizations where the sale of spirituous
liquor for consumption on the premises is made to members only:
(a) A post, chapter, camp or other local unit composed solely of veterans and its
duly recognized auxiliary which has been chartered by the Congress of the United States
for patriotic, fraternal or benevolent purposes and which has, as the owner, lessee or
occupant, operated an establishment for that purpose in this state.
(b) A chapter, aerie, parlor, lodge or other local unit of an American national
fraternal organization which has as the owner, lessee or occupant operated an
establishment for fraternal purposes in this state. An American national fraternal
organization as used in this subdivision shall actively operate in not less than
thirty-six states or have been in active continuous existence for not less than twenty
(c) A hall or building association of a local unit mentioned in subdivisions (a)
and (b) of this paragraph, all of the capital stock of which is owned by the local unit
or the members, and which operates the clubroom facilities of the local unit.
(d) A golf club which has more than fifty bona fide members and which owns,
maintains or operates a bona fide golf links together with a clubhouse.
(e) A social club with more than one hundred bona fide members who are actual
residents of the county in which it is located, that owns, maintains or operates club
quarters, is authorized and incorporated to operate as a nonprofit club under the laws of
this state, and has been continuously incorporated and operating for a period of not less
than one year. The club shall have had, during this one year period, a bona fide
membership with regular meetings conducted at least once each month, and the membership
shall be and shall have been actively engaged in carrying out the objects of the
club. The club's membership shall consist of bona fide dues paying members paying at
least six dollars per year, payable monthly, quarterly or annually, which have been
recorded by the secretary of the club, and the members at the time of application for a
club license shall be in good standing having for at least one full year paid dues. At
least fifty-one per cent of the members shall have signified their intention to secure a
social club license by personally signing a petition, on a form prescribed by the board,
which shall also include the correct mailing address of each signer. The petition shall
not have been signed by a member at a date earlier than thirty days prior to the filing
of the petition. The club shall qualify for exemption from the payment of state income
taxes under title 43. It is the intent of this paragraph that a license shall not be
granted to a club which is, or has been, primarily formed or activated to obtain a
license to sell liquor, but solely to a bona fide club, where the sale of liquor is
incidental to the main purposes of the club.
(f) An airline club operated by or for airlines which are certificated by the
United States government and which maintain or operate club quarters located at airports
with international status.
8. "Company" or "association", when used in reference to a corporation, includes
successors or assigns.
9. "Control" means the power to direct or cause the direction of the management and
policies of an applicant, licensee or controlling person, whether through the ownership
of voting securities or a partnership interest, by agreement or otherwise. Control is
presumed to exist if a person has the direct or indirect ownership of or power to vote
ten per cent or more of the outstanding voting securities of the applicant, licensee or
controlling person or to control in any manner the election of one or more of the
directors of the applicant, licensee or controlling person. In the case of a partnership,
control is presumed to mean the general partner or a limited partner who holds ten per
cent or more of the voting rights of the partnership. For the purposes of determining the
percentage of voting securities owned, controlled or held by a person, there shall be
aggregated with the voting securities attributed to the person the voting securities of
any other person directly or indirectly controlling, controlled by or under common
control with the other person, or by an officer, partner, employee or agent of the person
or by a spouse, parent or child of the person. Control is also presumed to exist if a
creditor of the applicant, licensee or controlling person holds a beneficial interest in
ten per cent or more of the liabilities of the licensee or controlling person.
10. "Controlling person" means a person directly or indirectly possessing control of
an applicant or licensee.
11. "Department" means the department of liquor licenses and control.
12. "Director" means the director of the department of liquor licenses and control.
13. "Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal,
gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable
or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in
ardent spirits, and any alcoholic mixture or preparation, whether patented or otherwise,
which may in sufficient quantities produce intoxication.
14. "Employee" means any person who performs any service on licensed premises on a
full-time, part-time or contract basis with consent of the licensee, whether or not the
person is denominated an employee, independent contractor or otherwise. Employee does
not include a person exclusively on the premises for musical or vocal performances, for
repair or maintenance of the premises or for the delivery of goods to the licensee.
15. "Government license" means a license to serve and sell spirituous liquor on
specified premises available only to a county, city, town or state university or the
ARIZONA coliseum and exposition center upon application by the governing body of a
county, city, town or state university or the ARIZONA exposition and state fair board.
16. "Legal drinking age" means the age of twenty-one years or older.
17. "License" means a license or an interim retail permit issued pursuant to the
provisions of this title.
18. "License fees" means fees collected for license issuance, license application,
license renewal, interim permit issuance and license transfer between persons or
19. "Licensee" means a person who has been issued a license or an interim retail
permit pursuant to the provisions of this title or a special event licensee.
20. "Manager" means a natural person who meets the standards required of licensees
and has authority to organize, direct, carry on, control or otherwise operate a licensed
business on a temporary or full-time basis.
21. "Off-sale retailer" means any person operating a bona fide regularly established
retail liquor store selling spirituous liquors, wines and beer, and any established
retail store selling commodities other than spirituous liquors and engaged in the sale of
spirituous liquors only in the original unbroken package, to be taken away from the
premises of the retailer and to be consumed off the premises.
22. "On-sale retailer" means any person operating an establishment where spirituous
liquors are sold in the original container for consumption on or off the premises or in
individual portions for consumption on the premises.
23. "Person" includes a partnership, limited liability company, association, company
or corporation, as well as a natural person.
24. "Premises" or "licensed premises" means the area from which the licensee is
authorized to sell, dispense or serve spirituous liquors under the provision of the
25. "Registered mail" includes certified mail.
26. "Registered retail agent" means any person who is authorized pursuant to section
4-222 to purchase spirituous liquors for and on behalf of himself and other retail
27. "Repeated acts of violence" means two or more acts of violence occurring within
seven days, three or more acts of violence occurring within thirty days or acts of
violence occurring with any other similar frequency which the director determines to be
unusual or deserving of review.
28. "Sell" includes soliciting or receiving an order for, keeping or exposing for
sale, directly or indirectly delivering for value, peddling, keeping with intent to sell
and trafficking in.
29. "Spirituous liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal,
gin, wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound or
mixture of any of them or of any of them with any vegetable or other substance, alcohol
bitters, bitters containing alcohol, any liquid mixture or preparation, whether patented
or otherwise, which produces intoxication, fruits preserved in ardent spirits, and
beverages containing more than one-half of one per cent of alcohol by volume.
30. "Vehicle" means any means of transportation by land, water or air, and includes
everything made use of in any way for such transportation.
31. "Vending machine" means a machine that dispenses merchandise through the means
of coin, token, credit card or other nonpersonal means of accepting payment for
32. "Veteran" means a person who has served in the United States air force, army,
navy, marine corps or coast guard, as an active nurse in the services of the American red
cross, in the army and navy nurse corps in time of war, or in any expedition of the armed
forces of the United States, and who has received a discharge other than dishonorable.
33. "Voting security" means any security presently entitling the owner or holder of
the security to vote for the election of directors of an applicant, licensee or
34. "Wine" means the product obtained by the fermentation of grapes or other
agricultural products containing natural or added sugar or any such alcoholic beverage
fortified with grape brandy and containing not more than twenty-four per cent of alcohol
4-111 State liquor board; department of liquorlicenses and control; members; director; appointment andremoval
A. There is created the department of liquor licenses and control which consists of
the state liquor board and the office of director of the department.
B. From and after January 31, 2003, the board consists of seven members to be
appointed by the governor pursuant to section 38-211. Five of the members of the board
shall not be financially interested directly or indirectly in business licensed to deal
with spirituous liquors. Two members shall currently be engaged in business in the
spirituous liquor industry or have been engaged in the past in business in the spirituous
liquor industry, at least one of whom shall currently be a retail licensee or employee of
a retail licensee. One member shall be a member of a neighborhood association recognized
by a county, city or town. The term of members is three years. Members' terms expire on
the third Monday in January of the appropriate year. The governor may remove any member
of the board for cause. No member may represent a licensee before the board or the
department for a period of one year after the conclusion of the member's service on the
C. The board shall annually elect from its membership a chairman and vice-chairman.
A majority of the board constitutes a quorum, and a concurrence of a majority of a quorum
is sufficient for taking any action. If there are unfilled positions on the board, a
majority of those persons appointed and serving on the board constitutes a quorum.
D. The chairman may designate panels of not less than three members. A panel may
take any action which the board is authorized to take pursuant to this title. Such
action includes the ability to hold hearings and hear appeals of administrative
disciplinary proceedings of licenses issued pursuant to this chapter. A panel shall not,
however, adopt rules as provided in section 4-112, subsection A, paragraph 2. The
chairman may from time to time add additional members or remove members from a panel. A
majority of a panel may upon the concurrence of a majority of the members of the panel
take final action on hearings and appeals of administrative disciplinary proceedings
concerning licenses issued pursuant to this chapter.
E. Members of the board are entitled to receive compensation at the rate of fifty
dollars per day while engaged in the business of the board.
F. A person shall not be appointed to serve on the board unless the person has been
a resident of this state for not less than five years prior to the person's
appointment. No more than four members may be of the same political party. Persons
eligible for appointment shall have a continuous recorded registration pursuant to title
16, chapter 1 with the same political party or as an independent for at least two years
immediately preceding appointment. No more than two members may be appointed from the
G. The governor shall appoint the director, pursuant to section 38-211, who shall
be a qualified elector of the state and experienced in administrative matters and
enforcement procedures. The director shall serve concurrently with the governor but may
be removed by the governor for any of the following causes:
1. Fraud in securing appointment.
4. Inexcusable neglect of duty.
7. Drunkenness on duty.
8. Addiction to the use of narcotics or habit-forming drugs.
9. Inexcusable absence without leave.
10. Final conviction of a felony or a misdemeanor involving moral turpitude.
11. Discourteous treatment of the public.
12. Improper political activity.
13. Wilful disobedience.
14. Misuse of state property.
H. The director is entitled to receive a salary as determined pursuant to section
4-112 Powers and duties of board and directorof department of liquor licenses and control; investigations; countyand municipal regulation
A. The board shall:
1. Grant and deny applications in accordance with the provisions of this title.
2. Adopt rules in order to carry out the provisions of this section.
3. Hear appeals and hold hearings as provided in this section.
B. Except as provided in subsection A of this section, the director shall
administer the provisions of this title, including:
1. Adopting rules:
(a) For carrying out the provisions of this title.
(b) For the proper conduct of the business to be carried on under each specific
type of spirituous liquor license.
(c) To enable and assist state officials and political subdivisions to collect
taxes levied or imposed in connection with spirituous liquors.
(d) For the issuance and revocation of certificates of registration of retail
agents, including provisions governing the shipping, storage and delivery of spirituous
liquors by registered retail agents, the keeping of records and the filing of reports by
registered retail agents.
(e) To establish requirements for licensees under section 4-209, subsection B,
2. Employing necessary personnel and fixing their compensation.
3. Keeping an index record which shall be a public record open to public inspection
and shall contain the name and address of each licensee and the name and address of any
person having an interest, either legal or equitable, in each license as shown by any
written document, which document shall be placed on file in the office of the board.
4. Providing the board with such supplies and personnel as may be directed by the
5. Responding in writing to any law enforcement agency that submits an
investigative report to the department relating to a violation of this title, setting
forth what action, if any, the department has taken or intends to take on the report and,
if the report lacks sufficient information or is otherwise defective for use by the
department, what the agency must do to remedy the report.
6. Taking such steps as are necessary to maintain effective liaison with the
department of public safety and all local law enforcement agencies in the enforcement of
this title including the laws of this state against the consumption of spirituous liquor
by persons under the legal drinking age.
7. Providing training to law enforcement agencies in the proper investigation and
reporting of violations of this title.
C. The director shall establish within the department a separate investigations
unit which has as its sole responsibility the investigation of compliance with this title
including the investigation of licensees alleged to have sold or distributed spirituous
liquor in any form to persons under the legal drinking age. Investigations conducted by
this unit may include covert undercover investigations.
D. All employees of the department of liquor licenses and control, except members
of the state liquor board and the director of the department, shall be employed by the
department in the manner prescribed by the department of administration.
E. The director may enter into a contract or agreement with any public agency for
any joint or cooperative action as provided for by title 11, chapter 7, article 3.
F. The board or the director may take evidence, administer oaths or affirmations,
issue subpoenas requiring attendance and testimony of witnesses, cause depositions to be
taken and require by subpoena duces tecum the production of books, papers and other
documents which are necessary for the enforcement of this title. Proceedings held during
the course of a confidential investigation are exempt from title 38, chapter 3, article
3.1. If a person refuses to obey a subpoena or fails to answer questions as provided by
this subsection, the board or the director may apply to the superior court in the manner
provided in section 12-2212. The board or director may serve subpoenas by personal
service or certified mail, return receipt requested.
G. The director may:
1. Examine books, records and papers of a licensee.
2. Require applicants, licensees, employees who serve, sell or furnish spirituous
liquors to retail customers, managers and managing agents to take training courses
approved by the director in spirituous liquor handling and spirituous liquor laws and
rules. The director shall adopt rules that set standards for approving training courses.
3. Delegate to employees of the department authority to exercise powers of the
director in order to administer the department.
4. Regulate signs that advertise a spirituous liquor product at licensed retail
5. Cause to be removed from the marketplace spirituous liquor that may be
6. Regulate the age and conduct of erotic entertainers at licensed premises. The
age limitation governing these erotic entertainers may be different from other employees
of the licensee.
7. Issue and enforce cease and desist orders against any person or entity that
sells beer, wine or spirituous liquor without an appropriate license or permit.
8. Confiscate wines carrying a label including a reference to ARIZONA or any
ARIZONA city, town or place unless at least seventy-five per cent by volume of the grapes
used in making the wine were grown in this state.
9. Accept and expend private grants of monies, gifts and devises for conducting
educational programs for parents and students on the repercussions of underage alcohol
consumption. State general fund monies shall not be expended for the purposes of this
paragraph. If the director does not receive sufficient monies from private sources to
carry out the purposes of this paragraph, the director shall not provide the educational
programs prescribed in this paragraph. Grant monies received pursuant to this paragraph
are nonlapsing and do not revert to the state general fund at the close of the fiscal
H. A county or municipality may enact and enforce ordinances regulating the age and
conduct of erotic entertainers at licensed premises in a manner at least as restrictive
as rules adopted by the director. 4-113 Enforcement officer; credentials; peaceofficer status
Each enforcement officer within the department who is designated by the director
shall, for identification purposes, have credentials signed by the director and
countersigned by the governor and, when bearing these credentials, has the powers and
duties of a peace officer.
4-114 Interest in business prohibited;forfeiture of office
A. Except for a member designated by the governor to be appointed from the
industry, no member of the board or the director or any employee of the department shall
be financially interested directly or indirectly in any business licensed to deal in
B. Violation of this section by the director or any member of the board shall be
deemed a resignation by such person, and a violation by an employee of the department
shall result in his immediate dismissal.
4-115 Disposition of fees and penalties
A. Unless otherwise provided, all license, registration, and other fees and all
penalties collected pursuant to this title shall be deposited, pursuant to sections
35-146 and 35-147.
B. Two-thirds of the license fees collected pursuant to this title in each county
shall be deposited, pursuant to sections 35-146 and 35-147, in the state general
fund. One-third of the license fees collected in each county with a population of five
hundred thousand persons or less as shown by the most recent United States decennial
census shall be paid monthly by the director to the county treasurer of that county. For
each county with a population of more than five hundred thousand persons as shown by the
most recent United States decennial census, the director shall pay monthly to the county
treasurer from the remaining one-third of the license fees three thousand dollars for
each new license issued for premises in unincorporated areas of that county but not more
than one hundred fifty thousand dollars annually. The remainder of the one-third of the
license fees collected for premises in each county with a population of more than five
hundred thousand persons as shown by the most recent United States decennial census shall
be deposited in the state general fund.
4-116 Receipts from club licenses andapplications
Notwithstanding any provision of law to the contrary all receipts derived from club
licenses and applications therefor are appropriated to the department of mental
retardation for buildings, equipment or other capital investments. All revenue so
received by the department shall be deposited, pursuant to sections 35-146 and 35-147, in
the department of mental retardation capital investment fund. 4-118 Inspection of premises
The director, the director's agents and any peace officer may, in enforcing the
provisions of this title, visit during the hours in which the premises are occupied and
inspect the premises of a licensee.
A licensee shall keep records of licensed business activity in a manner and location
and for such duration as prescribed by the director. The rules of the director shall
require that each on-sale retailer maintain at the licensed premises a current log of all
persons employed at the licensed premises including each employee's full legal name, date
and place of birth, address and responsibilities.