ARIZONA STATE SENATE
Phoenix, Arizona
liquor licenses;
fees; seizures
Purpose
Increases the surcharge imposed on liquor licensees, repeals obsolete language and strengthens the Department of Liquor Licenses and Control’s (Department) enforcement of unlicensed business establishments and alters the State Liquor Board. Contains a Proposition 108 clause.
Background
Through its enforcement activities and disciplinary actions, the Department works to ensure that liquor licensees adhere to state liquor laws. The Department also works to ensure that business establishments that are not properly licensed do not allow consumption of spirituous liquor in the establishment. Current law allows the Department to conduct a hearing to determine whether such a violation has occurred and allows the Director to impose a civil penalty for each offense. H.B. 2436 allows the Department to retrieve proceeds, alcohol, records and other property of the unlicensed business under the racketeering or forfeiture statutes.
All individuals
involved in the production, distribution and sale of alcoholic beverages
throughout Arizona are required to be licensed by the Department. Current law authorizes the Department to
assess a surcharge for each license that is issued annually (A.R.S.
4-209). H.B. 2436 increases the
surcharges imposed on licensees by $10 each.
Monies from the surcharges are deposited into three non-appropriated
funds that are administered by the Department.
The surcharge monies are used to fund an auditor and support staff to
review revenue requirements for restaurant liquor licenses, for the costs of an
enforcement program to investigate licensees with multiple complaints and for
the costs of a neighborhood association interaction and liquor enforcement
management unit to respond to complaints by neighborhood associations, civic
groups and local governing authorities.
According to the Department, the year-end fund balances of the
non-appropriated funds have decreased over the last several years and the
surcharges increases authorized by H.B. 2436 will assist in funding the two
auditors and the eight investigators that the Department employs to carry out
the purposes of the funds.
1. Increases the surcharges that licensees pay annually by $10 each.
2. Allows the seizure of any monies, records or alcohol by a peace officer who has probable cause to believe there is a violation of the unlicensed business statutes.
3. Allows the forfeiture of all proceeds, other fruits and anything of value (property) derived from or used to facilitate a violation of the unlicensed business statutes.
4. Stipulates that a person who obtains the property through a violation of the unlicensed business statutes is deemed to be an involuntary trustee of that property and holds the property in constructive trust for the benefit of the persons entitled to remedies (the Department) under the racketeering or forfeiture statutes.
5. 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.
6. Alters the composition of the State Liquor Board, effective February 1, 2003, by requiring at least one of the members who is engaged in the spirituous liquor business to be a retail licensee or an employer of a retail licensee.
7. Makes technical and conforming changes.
8. Becomes effective upon signature of the Governor.
Amendments
Adopted by Committee
· Alters the make-up of the State Liquor Board, effective February 1, 2003, by requiring at least one of the members who is engaged in the spirituous liquor business to be a retail licensee or an employee of a retail licensee.
CED 2/11/02 DPA 9-0-0-1 COM 3/17/02 DPA 4-0-2-0
APPROP 4/02/02 DP 7-2-0-7
3rd Read 4/08/02 40-10-10-0
Prepared b Senate Staff
April 18, 2002