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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
beer shipments; coercion; prohibition
Purpose
Deems it unlawful for a supplier to coerce or attempt to coerce a wholesaler to accept a delivery of beer or any other commodity that was not ordered or for which the order was canceled. Outlines the conditions when a supplier may impose reasonable inventory requirements on a wholesaler.
Background
The Department of Liquor Licenses and Control (DLLC), which consists of the State Liquor Board and the Office of the Director of DLLC, regulates the manufacture, distribution and sale of liquor in Arizona through the issuance of 21 license series. A separate license is required for each specific type of business and is issued only after a satisfactory showing of the capability, qualifications and reliability of the applicant (A.R.S. §§ 4-111 and 4-203). DLLC is also responsible for investigating compliance with liquor statutes in cooperation with law enforcement (A.R.S. § 4-112).
Current statute outlines the unlawful acts applicable to the liquor industry and individuals licensed by DLLC (A.R.S. § 4-244). An unlawful act is classified as a class 2 misdemeanor unless another classification is prescribed (A.R.S. § 4-246).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
1. Deems it unlawful for a supplier to coerce or attempt to coerce a wholesaler to accept delivery of beer or any other commodity that has not been ordered by the wholesaler or for which the order was canceled.
2. Subjects a person who commits unlawful coercion to a civil penalty of between $200 and $3000 as assessed by the Director of DLLC.
3. Allows a supplier to impose reasonable inventory requirements on a wholesaler if the requirements are made in good faith and are generally applied to other similarly situated wholesalers that have an agreement with the supplier.
4. Makes technical changes.
5. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
· Subjects a person who commits unlawful coercion to a civil penalty of between $200 and $3,000 as assessed by the Director of DLLC.
Senate Action
COM 2/9/22 DP 7-0-2
Prepared by Senate Research
February 24, 2022
JT/CY/sr