ARIZONA STATE SENATE
Phoenix, Arizona
licensed domestic farm
wineries; requirements
Allows domestic farm wineries to sell wines produced from other Arizona wineries in addition to their own wines.
According to the Department of Agriculture, there are currently 12 domestic farm wineries in Arizona spread throughout Cochise, Graham, Maricopa, Pima and Yavapai counties. A domestic farm winery is defined as a winery that yields between 200 gallons and 75,000 gallons of wine annually. To be classified as a domestic farm winery, 75 percent of the grapes used in the production of the wine must have been grown in this state.
In
order to operate a domestic farm winery, a person must apply for a license from
the Department of Liquor Licenses and Control.
Currently, this license allows a domestic farm winery to produce and to
sell wine only from that winery for consumption on or off the premises. Wine is defined as a product obtained by
fermentation of grapes or other agricultural products that contains less than
24 percent of alcohol by volume. Port,
champagne and sherry are included in this definition (A.R.S. 4-101).
Arizona
maintains a three-tiered system for those who produce and sell alcoholic
beverages. The three tiers are made up
of producers, wholesalers and retailers.
A person may not hold more than one type of license. There is an exception to this rule, however,
for domestic farm wineries and domestic microbreweries. Both of those entities are allowed to
produce, wholesale and retail their own wine or beer. Furthermore, under current law, a domestic microbrewery is
allowed to sell other spirituous liquors, in addition to the beer it produces
if it obtains an on-sale retail license.
Spirituous liquor is defined as any beverage that contains more than
one-half of one percent of alcohol by volume.
Hard alcohol, beer and wine are included in this definition (A.R.S.
4-101).
H.B.
2012 proposes to extend a somewhat similar authority to domestic farm wineries
to allow them to sell wines produced by other Arizona wineries
There is no anticipated
fiscal impact to the state general fund associated with H.B. 2012.
1. Permits a domestic farm winery that conducts retail operations to sell wines produced by other domestic farm wineries in addition to wine produced on site.
2. Requires a domestic farm winery that sells other domestic farm wines to hold an on-sale retail license and to sell the wine on or adjacent to the premises of the winery.
3. Makes technical and conforming changes.
4. Provides for a general effective date.
House Action
NRA 2/7/01 DPA 7-1-0-2-0
3rd Read 2/19/01 54-4-2-0
Prepared by Senate Staff
March 13, 2001