First Regular Session H.B. 2773
PROPOSED
SENATE AMENDMENTS TO H.B. 2773
(Reference to House engrossed bill)
Page 12, between lines 25 and 26, insert:
"Sec. 3. Title 4, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 4-203.06, to read:
4-203.06. Mixed cocktail privileges; off-sale privileges; leases; fees
A. Notwithstanding section 4-203, subsection E, through December 31, 2025, a bar licensee and a liquor store licensee shall make available for lease through the department a permit to a restaurant licensee for the privilege of selling mixed cocktails for consumption off the licensed premises in accordance with section 4-244, paragraph 32, subdivision (d). The lease shall be for a period of one year and shall be renewable for successive terms of one year. The department shall set the fee for lease payments.
B. Notwithstanding section 4-203, subsection E, a bar licensee may lease the off-sale privileges associated with the license to a restaurant licensee. The lease shall be for a period of one year and shall be renewable for successive terms of one year. The department shall set the fee for lease payments.
C. Leases made pursuant to subsections A and B of this section are subject to the following conditions:
1. A restaurant licensee may apply to the department on a form prescribed and provided by the department to lease off-sale privileges or a permit for the privilege of selling mixed cocktails for consumption off the licensed premises pursuant to 4-244, paragraph 32, subdivision (d).
2. Upon the director approving the application of a restaurant licensee, the director shall randomly select a bar or liquor store license for the lease of the licensee's privileges or permit to the restaurant licensee through the department.
3. The department shall establish a process to facilitate the lease conveyance and to govern the leases, including the lease content, a standard form of lease and responsibilities of the lessor and lessee.
4. The director may deny approval of a lease based on the proposed location of the lease or on the history of the restaurant establishment.
5. A restaurant licensee shall pay all lease payments in full in advance.
6. During the term of the lease all violations and liability for liquor service under the leased privilege or permit shall be attributed only to the restaurant licensee leasing the privilege or permit. The director may immediately suspend any lease for any violation of this title or any rule adopted pursuant to this title by the restaurant licensee.
6. During the term of a lease pursuant to subsection a or b of this section, a bar or liquor store lessor may sell spirituous liquor as authorized by the bar or liquor store license and mixed cocktails to go pursuant to section 4-244, paragraph 32, subdivision (d).
D. Beginning january 1, 2026, the director shall make available for the restaurant licensee to purchase from the department permits to sell mixed cocktails pursuant to section 244, paragraph 32, subdivision (d) equal in number to the number of total bar and liquor store licensees. The director shall set the annual renewal fee for a mixed cocktail privilege permit."
Renumber to conform
Page 32, line 9, after "bar" insert "or liquor store"
Page 34, after line 10, insert:
"Sec. 10. Severability Clause
If a provision of this act or its application to any person or circumstance is held invalid, 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