ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

 

HB 2223: liquor; licensing; processes; procedures

Sponsor: Representative Gress, LD 4

Committee on Commerce

Overview

Establishes a Microbrewery Festival License and makes various changes to liquor statutes.

History

DLLC regulates the manufacture, distribution and sale of liquor in this state through the issuance of 21 different licenses. DLLC is primarily responsible for: 1) licensing all liquor manufactures, suppliers and wholesalers and retailers doing business in the state; 2) enforcing liquor laws by investigating complaints, conducting investigations and performing audits of select licensed establishments; and 3) imposing sanctions for violations of state liquor laws (Title 4, A.R.S.).

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProvisions

Microbrewery Festival License

1.   Allows the Director of DLLC (Director) to temporarily issue a microbrewery festival license that allows:

a)   The sampling of microbrewery products on the festival premises; and

b)   The sale of products for consumption on and off the festival premises. (Sec. 4)

 

2.   Provides approval requirements by a county's board of supervisors or by a municipal governing body. (Sec. 4)

3.   Requires a license denial to be forwarded to the Director within 60 days of submission of an application, unless the applicant has requested additional time for consideration. (Sec. 4)

4.   Specifies the local government approval process does not apply to physical locations that are fully located within a licensed premises. (Sec. 4)

5.   Limits the time a microbrewery festival license may be issued to a maximum of 150 days.

6.   Permits the Director to establish a fee for each day of each event for a microbrewery festival license. (Sec. 4)

7.   Allows any microbrewery to apply for a microbrewery festival license. (Sec. 4)

8.   Allows a representative of the licensed microbrewery to consume small amounts of the product for quality control purposes. (Sec. 4)

9.   Permits the Director to, with permission of the state fair organizers or county fair organizers, issue a microbrewery fair license and establish a fee for each day for a fair license. (Sec. 4)

10.  Permits a microbrewery to allow the sampling and sale of products for consumption on and off the fair premises. (Sec. 4)

11.  Exempts microbrewery festival licenses from statutory requirements relating to spirituous liquor licensure. (Sec. 4)

12.  Excludes a microbrewery festival license or microbrewery fair license from statute relating to restrictions on licensing premises near school buildings. (Sec. 5)

Miscellaneous

13.  Stipulates the Director may extend the time limits for action by a local governing body, regarding licensure, transfer or acquisition of control, if determined that it is in the public's best interest. (Sec. 2)

14.  Specifies the Director or the applicant must agree to grant a local governing body's request for an extension of the time limit. (Sec. 2)

15.  Removes the minimum 60-day time frame for an applicant to send a copy of the extension of premises application to the local governing body. (Sec. 6)

16.  Permits the Director to act on an application for an extension of premises before the expiration of the 60-day period if the local governing body has made an advisory recommendation. (Sec. 6)

17.  Includes a valid unexpired consular identification card that was issued using biometric identity verification techniques as an acceptable type of identification to purchase liquor. (Sec. 7)

18.  Increase the total market value of promotional items that may be furnished without cost to an on-sale retailer from $500 to $700. (Sec. 8)

19.  Excludes refrigerators from being considered as a promotional item. (Sec. 8)

20.  Permits a representative of a licensed craft producer to consume small amounts and serve products of craft producer on the premises of an off-sale retailer or a retailer with off-sale privileges. (Sec. 9)

21.  Defines craft producer as a licensed farm winery, a licensed microbrewery or a licensed craft distiller. (Sec. 1)

22.  Changes the tax payment due date for a farm winery, manufacturer, microbrewery, craft distiller or direct shipment licensee from monthly to annually or on or before the twentieth day of the first month of the year. (Sec. 10)

23.  Changes the sworn return due date for a farm winery, manufacturer, microbrewery, craft distiller or direct shipment licensee from monthly to annually. (Sec. 10)

24.  Applies the changes to the tax payment due date beginning January 1, 2024. (Sec. 11)

25.  Makes technical changes. (Sec. 1, 2, 3, 7, 10)

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29.                    HB 2223

30.  Initials PRB           Page 0 Commerce

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