ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	House: COM DP 8-0-1-1 | 3^rd Read 56-3-1-0 Senate: COM DPA 8-1-0-0 | 3^rd Read 28-0-2-0

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HB 2660: liquor; licensing; processes; procedures

Sponsor: Representative Weninger, LD 17

Senate Engrossed

Overview

Authorizes an owner of a regional shopping center and an on-sale spirituous liquor licensee to apply for an extension of premises. Provides a process for a bar or liquor store licensee to decline to lease its mixed cocktails privileges. Amends liquor statutes relating to Farm Winery Licenses and liquor sales.

History

The Department of Liquor Licenses and Control (DLLC), which consists of the State Liquor Board and the Office of the Director of the Department regulates the manufacture, distribution and sale of liquor in this state through the issuance of 21 license types or series.

Pursuant to A.R.S. § 4-207.02, one or more on-sale spirituous liquor licensees with the same type of bar, beer and wine bar, restaurant or remote tasting room license may apply to DLLC for a joint premises permit. The application must contain plans and diagrams that completely disclose and designate the physical arrangement of the proposed joint premises. If approved, the joint premises area is considered an extension of premises for each of the approved applicants. The joint premises is limited to common areas that are pedestrian only and not immediately adjacent to a road, driveway or parking area.

Provisions

Regional Shopping Centers

Extension of Premises

1. Authorizes certain regional shopping centers, on behalf of the shopping center's retail licensees, to apply to DLLC for an extension of the premises. (Sec. 9)

2. Permits one or more licensees at the commercial office and retail center to apply to DLLC for an extension of premises provided specified requirements are met. (Sec. 9)

3. Specifies the premises extension allows designated on-sale retail licensees to sell spiritous liquor for consumption by patrons throughout a designated pedestrian area. (Sec. 9)

4. Outlines the application process. (Sec. 9)

5. Requires the application to include:

a) plans or diagrams designating the specific premises extension; and

b) the designated times of spiritous liquor service. (Sec. 9)

6. Provides limitations to the extended premises. (Sec. 9)

7. Asserts the retail licensees that are subject to the extension are responsible for compliance. (Sec. 9)

8. Provides further extension of premises regulations, including: a) application fees; b) day and time limitations; c) prohibition on altering the physical arrangement of the extended premises; and d) canceling or suspending extension approval. (Sec. 9)

On-Sale Spirituous Liquor Licensee

Extension of Premises

9. Permits, and provides requirements for, an on-sale spirituous liquor licensee to apply to DLLC for an extension of premises. (Sec. 6)

10. Requires the applicant licensee to provide at least ten days' written notice to DLLC of a modification of the date and time periods when the extended premises will be in use. (Sec. 6)

11. Permits DLLC to limit or revoke the right of a licensee to use an extended premises for violations of liquor laws. (Sec. 6)

12. Allows DLLC to charge a fee for processing applications. (Sec. 6)

13. Prohibits a licensee with extended premises from allowing an individual who is under the legal drinking age and who is not accompanied by a specified person who is of legal drinking age to remain in an area on the extended premises during hours used for the sale, dispensing or consumption of spirituous liquor. (Sec. 6)

Mixed Cocktails To-Go

Lease Privileges

14. Allows, and outlines a process for, a bar or liquor store licensee to decline to lease its mixed cocktails privileges to a restaurant licensee. (Sec. 2)

15. Directs DLLC to revoke any privilege conveyed to a restaurant licensee for failure to pay prescribed lease or renewal fees. (Sec. 2)

16. Stipulates a restaurant licensee who has been approved for a lease must be immediately granted the privilege of selling mixed cocktails for off-premises consumption whether or not the bar or liquor store licensee has accepted the lease. (Sec. 2)

17. Requires lease payments to accumulate and be paid during the calendar year on a fractional basis to all bar and liquor store licenses that have leases, if a restaurant licensee's application is approved but the bar and liquor store licensee selected declines the lease. (Sec. 2)

Miscellaneous

18. Transfers the authorization for a farm winery licensee to group two or more farm winery licenses at one location from the Farm Winery statutes to the Alternating Proprietorship statute. (Sec. 3, 11)

19. Updates statutory references relating to wine produced by a farm winery licensee under an alternating proprietorship. (Sec. 1, 3)

20. Excludes a person with control of more than one microbrewery from conducting retail operations remotely from a microbrewery from the prohibition for a microbrewery on holding any retail license that is located remotely from the microbrewery. (Sec. 4)

21. Removes the restriction on issuing a license to premises located within 300 feet of a church. (Sec. 5)

22. Specifies the licensee's duty to protect the customer does not limit them from using reasonable intervention, restraint or removal of a person to prevent them from injuring others. (Sec. 8)

23. Excludes dispensing or tapping machines or equipment as promotional items which may be provided from a wholesaler to an on-sale retailer. (Sec. 10)

24. Stipulates spiritous liquor sales made in connection with a professional or collegiate national sporting championship event held in Arizona may be extended until 3:00 a.m. if issued by a gubernatorial executive order. (Sec. 12)

25. Stipulates spiritous liquor consumption may be extended until 3:30 a.m. if a gubernatorial executive order extends the sales until 3:00 a.m. (Sec. 12)

26. Exempts DLLC from rulemaking for one year for the purposes of implementing mixed cocktails regulations. (Sec. 13)

27. Makes technical and conforming changes. (Sec. 3, 5, 6, 7, 8, 12)

Senate Amendments

1. Removes language allowing a bar or liquor store licensee to decline to lease its mixed cocktails privileges to a restaurant licensee.

2. Allows a local governing body's designee to review an on-sale spirituous liquor licensee's extension of premises application and provide an advisory recommendation.

3. Clarifies the manager of the commercial office and retail center may apply for an extension of premises jointly with one or more licensees at the center.

4. Makes clarifying changes.

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8.                   HB 2660

9. Initials PRB           Page 0 Senate Engrossed

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