ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: COM DPA 10-0-0-0

HB 2185: liquor; policies; procedures

Sponsor: Representative Gress, LD 4

Caucus & COW

Overview

Makes various changes to State liquor statutes.

History

The Department of Liquor Licenses and Control, 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.

A special event license is a temporary license which allows a government entity or certain organizations to sell and serve spirituous liquor for consumption at the event.  Prior to the issuance of a special event license, events that occur at an otherwise unlicensed location or by a licensee at a location that is not fully within the exiting licensed premises must be approved by a county board of supervisors or a municipality's governing body, depending on where the event is to be held (A.R.S. § 4-203.02).

Provisions

1.   Subjects the issuance of a special event license, based on the location of the event, to the approval of:

a)   a county board of supervisors;

b)   the governing body of a municipality; or

c) the president of a university under the Arizona Board of Regents. (Sec. 1)

2.   Allows a special event license to be issued concurrently with a microbrewery license. (Sec. 1)

3.   Removes the ability of the Director to approve the location of a wine festival license within an excluded area of a special event license. (Sec. 1)

4.   Adds that the Director may issue a new license of the same series in the same county for licenses that have been surrendered. (Sec. 2)

5.   Permits an applicant for a liquor store license and a bar license to consolidate the application and apply for both licenses at the same time. (Sec. 2)

6.   Requires a liquor store license and a bar license on the same premises to be owned by and issued to the same licensee. (Sec. 2)

7.   Removes the exception relating to unlawful coercion or bribery statutes allowing producers and wholesales who designate an area separate from the off-sale retailer's premises to provide samples to retail consumers. (Sec. 3)

8.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical changes. (Sec. 1, 3)

Amendments

Committee on Commerce

1.   Provides an exemption for certain restaurant licensees who meet specified qualifications from the statutory percentage cap of total liquor sales for mixed cocktail off-sale use.

2.   Includes a requirement for DLLC to provide, through December 31, 2025, for an addendum to leases relating to the privilege of selling mixed cocktails for consumption off the licensed premises for restaurants that derive at least 90% of gross revenues from the sale of food and that have off-sale liquor sales that exceed 30% of total liquor sales in either 2023 or 2024.

3.   Outlines the conditions applicable to the lease addendum.

4.   Applies the exemption from the off-sale liquor sales percentage cap retroactive to January 1, 2024.

5.   Makes clarifying changes.

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9.                     HB 2185

10.  Initials PB           Page 0 Caucus & COW

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