ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
alcoholic beverages;
revisions
Makes several changes to
Title 4 on alcoholic beverages to update, facilitate and clarify the
enforcement process and procedures of the Department of Liquor Licenses and
Control. Contains a Proposition 108
clause.
Background
This legislation represents
the annual effort by the Department of Liquor Licenses and Control (Department)
and the various representatives of the liquor industry to modify the liquor
code to address industry and Department concerns and clarify the liquor
statutes to facilitate enforcement and compliance.
There
is an anticipated fiscal impact to the state general fund associated with this
measure.
1. Allows the Director to cancel a hearing for a spirituous liquor license application and issue the license if the city, town or county recommends approval of the license, unless the State Liquor Board or an aggrieved party requests a hearing.
2. States that a restructuring of a licensee’s business is an acquisition of control and is a transfer of a spirituous liquor license and not the issuance of a new license if all of the controlling persons of the licensee and the new business entity are identical and there is no change in control or beneficial ownership. Specifies the licensee’s history of violations of the alcoholic beverages statutes is the history of the new business entity.
3. Removes archaic language relating to the quota drawings to obtain a bar or liquor store license or beer and wine bar license, subject to certain conditions.
4. Requires applicants to provide the necessary information on a form prescribed by the Director to ensure compliance with provisions relating to acquisition of control and nonuse status licensure.
5. Requires a location to requalify for a spirituous liquor license and meet the same qualifications for issuance of a new license if the licensee’s interest is forfeited, except when a bona fide lienholder demonstrates mitigation.
6. Requires the notice of a hearing for a complaint against a licensee or lienholder to include compliance actions with respect to a license issued.
7. Allows a lienholder to participate in the determination of the disciplinary action. Requires the lienholder to prove specified circumstances by a preponderance of the evidence, if the Director is to consider mitigation on behalf of the lienholder, including the lienholder’s interest is a bona fide security interest, the lienholder took reasonable steps to correct the licensee’s prior actions and the lienholder reasonably attempted to remain informed by the licensee about the business’ conduct.
8. Expands the actions of the Director when issuing an order in the event the Director decides not to revoke the license based on the circumstances provided by the lienholder to include the requirement that a lienholder pay any civil penalties imposed on the licensee.
9. States that the investigations unit within the Department must also include seven officers in the community interaction unit to respond to complaints from neighborhood associations, neighborhood civic groups and local governing authorities regarding liquor violations. (Clarified by the Commerce Committee amendment; eliminated by the Appropriations Committee amendment.)
10. Eliminates provisions permitting liquor producers a financial interest in the license, premises or business of on-sale retail licensee who is a regional entertainment facility.
11. Permits a distiller, vintner, brewer or wholesaler to donate spirituous liquor up to $100 in a calendar year to a tax-exempt organization for charitable fundraising activities.
12. Exempts the Department from the Administrative Procedures Act (APA) until December 31, 2001 for either modifying rules regarding signs, retail promotions, glassware promotions or product recovery by a wholesaler when a retailer is closed or discontinues a product, or conforming rules to statutory changes.
13. Requires the Department to provide notice and hold at least two public hearings prior to adoption of any proposed rules under the exemption from APA. Requires an opportunity for public input in at least one pubic hearing on draft rules considered for adoption by the Department.
14. Makes technical and conforming changes.
15. Contains a Proposition 108 clause, which requires an affirmative vote of at least two-thirds of the members of each chamber of the Legislature.
Amendments Adopted by Commerce Committee
1. Removes archaic language relating to quota drawings to obtain bar or liquor store licenses or beer and wine bar licenses, subject to certain conditions.
2. Reinstates the current requirement of the Director to transfer monies collected from fees for daily off-sale special event licenses to the Department of health Services for evaluation and treatment of persons impaired by alcoholism.
3. Reinstates the current requirement of depositing receipts derived from club licenses and applications into the department of mental retardation capital investment fund.
4. Repeals law permitting liquor producers a financial interest in the license, premises or business of an on-sale retail licensee who is a regional entertainment facility.
5. Makes clarifying changes to the community interaction unit.
6. Makes technical and conforming changes.
Amendments Adopted by Appropriations Committee
1. Incorporates the Commerce Committee amendment, except that it eliminates language that would have stipulated that the investigation limit within the Department must also include seven officers in the community interaction unit.
2. Eliminates the modification in the Department’s budgeting process that would have diverted all revenues collected, with the exception of fines and penalties, into a newly established fund; thereby, maintaining the Department’s current budgetary process.
3. Reinstates the current requirement of the Director to assess surcharges on licenses.
4. Reinstates the current statutory fees on interim permits, applications for an original license or the transfer of a license and various renewal licenses.
Senate Action
COM 2/28/01 DPA 4-2-0-0
APPROP 3/9/01 DPA 10-0-2-0
Prepared by Senate Staff
March 12, 2001