Assigned to HHS                                                                                                                     FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2618

 

spirituous liquor; DHS; inspection; exemption

Purpose

Includes spirituous liquor produced by a producer or imported by a wholesaler who is licensed by the Department of Liquor Licenses and Control (DLLC) in the list of spirituous liquors that are not subject to public health inspections conducted by the Department of Health Services (DHS).

Background

DHS, by administrative rule, must prescribe reasonably necessary measures to ensure that all food or drink provided for human consumption is free from unwholesome, poisonous or other foreign substance and filth, insects or disease-causing organisms. The rules must include minimum standards for sanitary facilities and the production, processing, labeling, storing, handling, serving and transportation of these products. Statute prescribes exemptions from the rules for certain products, including spirituous liquor produced on a premises licensed by DLLC. Exempted premises include: 1) the area in which production and manufacturing of spirituous liquor occurs, as defined in an active basic permit on file with the U.S. Alcohol and Tobacco Tax and Trade Bureau; and 2) an area licensed by DLLC as a microbrewery, farm winery or craft distiller that is open to the public and serves spirituous liquor and commercially prepackaged food, crackers or pretzels for consumption on the premises (A.R.S. § 36-136).

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 a series of licenses and investigating licensee compliance with liquor laws. 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 and, with the exception of wholesaler, producer, government or club licenses, demonstration that the public convenience requires and that the best interest of the community will be substantially served by the issuance (A.R.S. §§ 4-111 and
 4-112).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Adds spirituous liquor produced by a producer or imported by a wholesaler who is licensed by DLLC to the list of spirituous liquors that are exempt from the rules governing the production, processing, labeling, storing, handling, serving and transportation of products provided for human consumption at the retail level.

2.   Specifies that the exemption applies to all commercially prepackaged spirituous liquor and all spirituous liquor poured at a licensed special event, festival or fair in Arizona.

3.   Makes technical changes.

4.   Becomes effective on the general effective date.

House Action

RA                  2/14/24      DP          6-0-0-0

3rd Read          2/29/24                     54-5-0-0-1

Prepared by Senate Research

March 15, 2024

MM/KS/slp