Bill Number: S.B. 1030
Smith Floor Amendment
Amendment drafted by: David Fernandez
FLOOR AMENDMENT EXPLANATION
This amendment incorporates the amendment adopted in the Commerce and Workforce Development committee.
Under this amendment, a microbrewery may hold a combined total of seven retail licenses under the bar, beer and wine bar, or restaurant series. These retail locations may be sited remotely or adjacent to the production facility. Upon surrender of microbrewery license for a producer’s license, a microbrewery must transfer, surrender or otherwise relinquish control of all retail licenses for remote locations.
The amendment establishes a maximum production limit of 6,200,000 gallons of beer for all microbreweries under common ownership, with the stipulation that any microbrewery producing more than 1,240,000 gallons may not apply for retail licenses for remote locations or distribute beer directly to retail licensees.
SMITH FLOOR AMENDMENT
SENATE AMENDMENTS TO S.B. 1030
(Reference to CWD amendment)
Page 1, before line 1, insert:
Page 1, line 16, strike “5” insert “4”
Line 20, after “license” strike remainder of line
Strike lines 21, 22 and 23, insert “ONLY ON SURRENDER OF THE MICROBREWERY LICENSE OR LICENSES AND SHALL HAVE NO CONTINUING RIGHTS AS A MICROBREWERY UNDER THIS SECTION. ON THE SURRENDER OF THE MICROBREWERY LICENSE OR LICENSES, THE LICENSEE SHALL TRANSFER, SURRENDER OR OTHERWISE RELINQUISH CONTROL OF ALL OF ITS RETAIL LICENSES LOCATED REMOTELY FROM A MICROBREWERY.”
Line 39, after “BEER” insert “by volume”
Page 2, line 6, strike “one” insert “SIX”
Line 7 strike “forty”
Line 9, after the comma strike remainder of line
Strike lines 10 through 16, insert “THE MICROBREWERY MAY SELL OTHER SPIRITUOUS LIQUOR PRODUCTS IF THE MICROBREWERY HOLDS AN ON-SALE RETAIL LICENSE for A BAR, BEER AND WINE BAR, OR RESTAURANT. THE MICROBREWERY MAY BE ISSUED UP TO A COMBINED TOTAL OF SEVEN RETAIL LICENSES IN THIS STATE WHETHER LOCATED ON OR ADJACENT TO A MICROBREWERY OR REMOTELY FROM A MICROBREWERY. THE LIMIT ON THE NUMBER OF RETAIL LICENSES APPLIES ON AN AGGREGATED BASIS TO ALL MICROBREWERIES THAT ARE UNDER COMMON CONTROL OF ANY PERSON WITH CONTROL OF THE MICROBREWERY.”
Renumber to conform
Line 20, strike “4,” insert “3”
Line 21, strike “SUBDIVISIONS (a) AND (b)”
Line 22, strike “IF THE MICROBREWERY DOES NOT OTHERWISE”
Line 23, strike “HOLD A PRODUCER’S LICENSE, TO”; after “ANY” insert “OTHER”
Strike lines 26 through 37, insert:
“E. A MICROBREWERY THAT PRODUCES OR MANUFACTURES MORE THAN ONE MILLION TWO HUNDRED FORTY THOUSAND GALLONS OF BEER IN A CALENDAR YEAR MAINTAINS ALL OF THE RIGHTS ASSOCIATED WITH A MICROBREWERY LICENSE, WITH THE EXCEPTION THAT IT SHALL NOT:
1. APPLY FOR OR RECEIVE A RETAIL LICENSE PURSUANT TO SUBSECTION D, PARAGRAPH 3 OF THIS SECTION THAT IS LOCATED REMOTELY FROM THE MICROBREWERY.
2. MAKE SALES OR DELIVERIES OF BEER THAT IT HAS PRODUCED OR MANUFACTURED TO ANY RETAIL LICENSE AS PROVIDED IN SUBSECTION D, PARAGRAPH 4 OF THIS SECTION, EXCEPT FOR ITS RETAIL LICENSES ON OR ADJACENT TO THE MICROBREWERY.
F. THE GALLONAGE AMOUNTS PRESCRIBED IN SUBSECTION d, paragraph 2 AND subsection E of this section APPLY TO THE AGGREGATE MANUFACTURE OR PRODUCTION OF ALL MICROBREWERIES THAT ARE UNDER COMMON CONTROL OF ANY PERSON WITH CONTROL OF THE MICROBREWERY.
G. A MICROBREWERY THAT IS OTHERWISE ENGAGED AS A DISTILLER, VINTNER, BREWER, RECTIFIER, BLENDER OR OTHER PRODUCER OF SPIRITUOUS LIQUOR IN ANY JURISDICTION IS PROHIBITED FROM HOLDING ANY RETAIL LICENSE THAT IS LOCATED REMOTELY FROM A MICROBREWERY.”
Reletter to conform
Page 1, strike lines 5 and 6, insert:
Line 14, strike “E” insert “D”
Line 15, strike “and”
Line 16, strike “are not required to surrender any” insert “each”; strike “held”; strike “is”; insert “becomes”
Strike lines 18 through 23, insert:
“B. Notwithstanding section 4-205.08, Arizona Revised Statutes, as amended by this act, a person who holds any interest in any microbrewery license that also holds an on-sale retail license on or before December 31, 2015, that is not on or adjacent to the microbrewery premises and who becomes a producer as provided by section 4-205.08, Arizona Revised Statutes, as amended by this act, on or before December 31, 2018, may continue to hold those retail licenses, notwithstanding section 4-243, subsection A, paragraph 3, Arizona Revised Statutes.
C. Notwithstanding section 4-205.08, Arizona Revised Statutes, as amended by Laws 2014, chapter 253, section 13, a person who holds any interest in any microbrewery license issued by the department of liquor licenses and control on or before the effective date of this act and any interest in any retail licenses issued by the department of liquor licenses and control may continue to hold each retail license unless that license becomes inactive at that location for more than six months.
D. Notwithstanding section 4-205.08, Arizona Revised Statutes, as amended by Laws 2014, chapter 253, section 13, a person who holds any interest in any microbrewery license issued by the department of liquor licenses and control on or before the effective date of this act and any interest in any producer license or out-of-state producer license issued by the department of liquor licenses and control on or before the effective date of this act, and who also holds any retail licenses issued by the department of liquor licenses and control on or before the effective date of this act, may continue to hold each retail license unless that license becomes inactive at that location for more than six months.
E. Notwithstanding section 4-205.08, Arizona Revised Statutes, as amended by Laws 2014, chapter 253, section 13, a person who holds any microbrewery licenses issued by the department of liquor licenses and control on or before the effective date of this act and who also holds or controls any interest in any producer or out-of-state producer license on or before the effective date of this act may continue to hold or control the microbrewery licenses and producer licenses.
Sec. 3. Severability
If a provision of this act or its application to any person or circumstances is held invalid by a final, nonappealable decision of a court of competent jurisdiction, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.”
Amend title to conform
3/11/15
9:57 AM
S: DF/ls