HB 2773 — spirituous liquor; delivery; off-sale permits

41.43.

Notwithstanding subsection B of this section, the holder of a retail license in this state having off-sale privilegesprivileges, except a bar, beer and wine bar or restaurant licensee, may take orders by telephone, mail, fax,  or catalog, through the internet or by other means for the sale and delivery of spirituous liquor off of the licensed premises to a person in this state in connection with the sale of spirituous liquor.  Notwithstanding the definition of "sell" prescribed in section 4-101, the placement of an order and payment pursuant to this section is not a sale until delivery has been made.  At the time that the order is placed, the licensee shall inform the purchaser that state law requires a purchaser of spirituous liquor to be at least twenty-one years of age and that the person accepting delivery of the spirituous liquor is required to comply with this state's age identification requirements as prescribed in section 4-241, subsections A and K.

notwithstanding subsection b of this section, barbar, beer and wine bar, liquor store, beer and wine store or restaurant licensees in this state may take orders by telephone, mail, fax or catalog, THROUGH A THIRD-PARTY FACILITATOR, through the internet or by other means for the sale and delivery of spirituous liquor off the licensed premises as follows:

bar licensees for beer, wine, distilled spirits orand mixed cocktails.

restaurantBEER licenseesAND forWINE eitherBAR ofLICENSEES theFOR following:BEER AND WINE.

(a)3. mixed cocktails, with the sale of food for consumption on or off the licensed premises, if the restaurant holds a permit issued pursuant to section 4-205.02, subsection j.

liquor store licensees for beer, wine, distilled spirits and mixed cocktails.

4.

Beer and wine store licensees for beer and wine.

5.

restaurant licensees for any of the following:

(a) mixed cocktails, with the sale of menu food items for consumption on or off the licensed premises, if the restaurant holds a permit issued pursuant to section 4-205.02, subsection k and section 4-203.07 or A lease pursuant to section 4-203.06.

(c) BEER, WINE and DISTILLED SPIRITS IF THE RESTAURANT HOLDS AN OFF-SALE PRIVILEGES LEASE WITH A BAR OR LIQUOR STORE PURSUANT TO SECTION 4-203.07.

(d) BEER and WINE IF THE RESTAURANT HOLDS AN OFF-SALE PRIVILEGES LEASE WITH A BEER AND WINE BAR PURSUANT TO SECTION 4-203.07.

Notwithstanding the definition of "sell" prescribed in section 4-101, placing an order and paying for that order pursuant to subsection s of this section is not a sale until delivery has been made.  At the time that the order is placed, the licensee shall inform the purchaser that state law requires a purchaser of spirituous liquor to be at least twenty-one years of age and that the person accepting delivery of the spirituous liquor is required to comply with this state's age identification requirements as prescribed in section 4-241, subsections A and K.  The licensee may maintain a delivery service and may contract with one or more third-partyalcohol facilitatorsdelivery licensedcontractors registered pursuant to section 4-205.13 for delivery of spirituous liquor if the spirituous liquor is packaged and tamper proof sealed by the bar, beer and wine bar, liquor store, beer and wine store or restaurant licensee or the licensee's employee and is loaded for delivery at the premises of the restaurantrestaurant, beer and wine bar, liquor store, beer and wine store or bar licensee in this state and delivered in this state.state on the same business day.

a liquor store or beer and wine store licensee may contract with one or more independent contractors as provided in subsection j of this section for delivery of spirituous liquor if the spirituous liquor is loaded for delivery at the premises of the liquor store or beer and wine store licensee in this state and delivered in this state on the same business day.  All containers of spirituous liquor delivered pursuant to subsection s of this section shall be tamper proof sealed and conspicuously labeled with the words "contains alcohol, signature of person who is twenty-one years of age or older is required for delivery".

The licensee is responsible for any violation of this title or any rule adopted pursuant to this title that is committed in connection with any sale or delivery of spirituous liquor,liquor.  except when a violation is attributable to a licensed third-party facilitator.  Delivery must be made by an employee of the licensee or an employee or authorized independent contractor of ana authorizedregistered third-partyalcohol facilitatordelivery contractor as provided by this section who is at least twenty-one years of age and delivery must be made to a customer who is at least twenty-one years of age and who displays an identification at the time of delivery that complies with section 4-241, subsection K.

The restaurantrestaurant, orbeer barand licenseewine bar, liquor store, beer and wine store or third-partybar facilitatorlicensee shall collect payment for the full price of the spirituous liquor from the purchaser before the product leaves the licensed premises.  The director shall adopt rules that set operational limits for the delivery of spirituous liquorsliquor pursuant to this subsection and subsection s of this section With respect to the delivery of spirituous liquor.liquor.  for any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's employee or a registered alcohol delivery contractor, the mitigation provision of section 4-210, subsection G applies, with the exception of the training requirement.  For the purposes of this subsection and notwithstanding the definition of "sell" prescribed in section 4-101, section 4-241, subsections A and K apply only at the time of delivery.  an alcohol delivery contractor, a subcontractor of an alcohol delivery contractor, an employee of an alcohol delivery contractor or an employee of a subcontractor is deemed to be acting on behalf of the licensee when making a delivery of spirituous liquor for the licensee.

 for any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's employee or other authorized third-party facilitator, the mitigation provision of section 4-210, subsection G applies, with the exception of the training requirement.  For the purposes of this subsectionsubsection, and"business notwithstandingday" themeans definitionbetween of "sell" prescribed in section 4-101, section 4-241, subsections A and K apply only at the timehours of delivery. 6:00 a.m. Sec. 3.

of one day and 2:00 a.m.

of the next day.

END_STATUTE Sec. 3.

Title 4, chapter 2, article 1, Arizona Revised Statutes, is amended by adding sections 4-203.06 and 4-203.07, to read:

START_STATUTE4-203.06.

Mixed cocktails;

off-sale privileges;

leases;

fees A.

NOTWITHSTANDING SECTION 4-203, SUBSECTION E and section 4-210, subsection A, paragraph 6, THROUGH DECEMBER 31, 2025, BAR AND LIQUOR STORE LICENSEES, THROUGH THE DEPARTMENT, shall lease TO RESTAURANT LICENSEES THE PRIVILEGE OF SELLING MIXED COCKTAILS FOR CONSUMPTION OFF THE LICENSED PREMIses in accordance with SECTION 4-244, PARAGRAPH 32, SUBDIVISION (d).  THE LEASE SHALL BE FOR A PERIOD OF ONE YEAR AND SHALL BE RENEWABLE FOR SUCCESSIVE TERMS OF ONE YEAR.

THE DEPARTMENT SHALL establish a LEASE AMOUNT THAT FAIRLY RECOGNIZES, AND IS DERIVED FROM, THE COMMERCIAL VALUE OF THE privilege TO SELL MIXED COCKTAILS FOR CONSUMPTION OFF THE LICENSED PREMISES.

B.

LEASES MADE PURSUANT TO SUBSECTION A OF THIS SECTION ARE SUBJECT TO THE FOLLOWING CONDITIONS:

1.

A RESTAURANT LICENSEE MAY APPLY TO THE DEPARTMENT ON A FORM PRESCRIBED AND PROVIDED BY THE DEPARTMENT FOR A LEASE pursuant to this section.

The department may establish and charge an application fee for administrative and enforcement costs associated with this section.

2.

ON THE DIRECTOR APPROVING THE APPLICATION OF A RESTAURANT LICENSEE, THE DIRECTOR SHALL RANDOMLY SELECT A BAR OR LIQUOR STORE LICENSE FOR THE LEASE OF THE BAR OR LIQUOR STORE LICENSEE'S mixed cocktail off-sale privileges TO THE RESTAURANT LICENSEE THROUGH THE DEPARTMENT.

3.

THE DEPARTMENT SHALL ESTABLISH A PROCESS TO FACILITATE and approve THE LEASE CONVEYANCE AND TO GOVERN THE LEASES, INCLUDING the following:

(a) A STANDARD FORM OF LEASE.

(b) tHE TERM OF THE LEASE, WHICH SHALL BE ONE YEAR EXCEPT for THE FIRST YEAR OF THE LEASE.  DURING THE FIRST YEAR OF THE LEASE, THE DIRECTOR MAY SET A LEASE TERM THAT IS LESS THAN A YEAR IN ORDER TO ALIGN THE LEASE RENEWAL DATE WITH THE RENEWAL DATE OF THE RESTAURANT LICENSE.

the lease payment amount for the first year may be prorated.

(c) The amount of THE LEASE established BY THE DIRECTOR PURSUANT TO SUBSECTION A OF THIS SECTION.

(d) The RESPONSIBILITIES OF THE LESSOR AND LESSEE.

(e) THE LEASE MAY BE TRANSFERRED TO ANOTHER RESTAURANT LICENSEE IF a NEW RESTAURANT LICENSEE PURCHASES THE BUSINESS OF THE ORIGINAL LESSEE DURING THE TERM OF THE LEASE.

(f) THE PRIVILEGES CONVEYED TO THE LESSEE DURING THE TERM OF THE LEASE WILL CONTINUE IF THE BAR OR LIQUOR STORE LESSOR HAS its LICENSE SUSPENDED OR REVOKED.

(g) IF THE BAR OR LIQUOR STORE LESSOR SELLS its LICENSE DURING THE TERM OF THE LEASE, THE PURCHASER OF THE BAR OR LIQUOR STORE LICENSE BECOMEs THE NEW LESSOR.

(h) THIS TITLE AND RULES ADOPTED PURSUANT TO THIS TITLE APPLY TO BOTH THE LESSOR AND LESSEE.

(i) DURING THE TERM OF THE LEASE, ALL VIOLATIONS AND LIABILITY FOR LIQUOR SERVICE UNDER THE lease SHALL BE ATTRIBUTED ONLY TO THE RESTAURANT LICENSEE LEASING THE mixed cocktail off-sale privilege.

The restaurant licensee leasing the off-sale privilege is not responsible for violations committed by the lessor.

4.

THE DIRECTOR MAY DENY APPROVAL OF A LEASE BASED ON THE PROPOSED LOCATION OR HISTORY OF THE PROPOSED LESSEE.

5.

THE RESTAURANT LICENSEE SHALL PAY to the department ALL LEASE PAYMENTS IN FULL IN ADVANCE.

6.

the department of liquor licenses and control may adopt a procedure to pay the lease amount to the lessor and may use the department of administration to facilitate the payments.

7.

DURING THE TERM OF THE LEASE, ALL VIOLATIONs AND LIABILITY FOR THE LIQUOR SERVICE UNDER THE LEASE SHALL BE ATTRIBUTED ONLY TO THE RESTAURANT LICENSEE LEASING THE Privilege.

PUrsuant to section 4-210, THE DIRECTOR MAY IMMEDIATELY SUSPEND A LEASE FOR ANY VIOLATION OF THIS TITLE OR ANY RULE ADOPTED PURSUANT TO THIS TITLE by the restaurant licensee.  The restaurant licensee leasing the off-sale privilege is not responsible for violations committed by the lessor.

8.

DURING THE TERM OF the LEASE, A BAR OR LIQUOR STORE LESSOR MAY CONTINUE TO SELL SPIRITUOUS LIQUOR AS AUTHORIZED BY THE BAR OR LIQUOR STORE LICENSE AND MIXED COCKTAILS FOR OFF-PREMISES CONSUMPTION PURSUANT TO SECTION 4-244, PARAGRAPH 32, SUBDIVISION (d).

9.

the restaurant licensee leasing the off-sale privilege is subject to the limit on off-sale use by the restaurant licensee's total spirituous liquor sales as prescribed in section 4-206.01, subsection g.

C.

IF A RESTAURANT LICENSEE DOES NOT RENEW A LEASE, THE DIRECTOR SHALL RETURN THE BAR OR LIQUOR STORE LESSOR TO THE RANDOM SELECTION PROCESS PURSUANT TO SUBSECTION B, PARAGRAPH 2 OF THIS SECTION.

D.

IF a BAR OR LIQUOR STORE LESSOR HAS its LICENSE SUSPENDED OR REVOKED, THE DIRECTOR SHALL TRANSFER THE LEASE TO ANOTHER BAR OR LIQUOR STORE LICENSEE AT THE END OF THE LEASE TERM PURSUANT TO SUBSECTION B, PARAGRAPH 2 OF THIS SECTION.

END_STATUTE START_STATUTE4-203.07.

Off-sale privileges;

leases;

mixed cocktails;

permits;

fees A.

NOTWITHSTANDING SECTION 4-203, SUBSECTION E and section 4-210, subsection A, paragraph 6, A BAR, BEER AND WINE BAR AND LIQUOR STORE LICENSEE MAY LEASE THE OFF-SALE PRIVILEGES ASSOCIATED WITH THE licensee's LICENSE, except the privilege to sell mixed cocktails for off-premises consumption pursuant to section 4-244, paragraph 32, subdiviSion (d), TO A RESTAURANT LICENSEE.  THE LEASE SHALL BE FOR A PERIOD OF ONE YEAR AND MAY BE RENEWABLE FOR SUCCESSIVE TERMS OF ONE YEAR.  THE OFF-SALE PRIVILEGES OF A BAR, BEER AND WINE BAR OR LIQUOR STORE LICENSE that are HELD IN NON-USE STATUS MAY also BE LEASED PURSUANT TO THIS SECTION.

B.

LEASES MADE PURSUANT TO THIS SECTION ARE SUBJECT TO THE FOLLOWING CONDITIONS:

1.

THE DEPARTMENT SHALL establish A MINIMUM of FOUR LEASE WINDOWS THROUGHOUT THE CALENDAR YEAR DURING WHICH A LEASE MAY BE AGREED TO BETWEEN A BAR, BEER AND WINE BAR OR LIQUOR STORE LICENSEE AND A RESTAURANT LICENSEE FOR THE LEASE OF OFF-SALE PRIVILEGES.

2.

A RESTAURANT LICENSEE MAY APPLY TO THE DEPARTMENT FOR APPROVAL OF A LEASE AT LEAST THIRTY DAYS before THE END OF THE LEASE WINDOW.

THE RESTAURANT LICENSEE SHALL PROVIDE A COMPLETED LEASE AGREEMENT SIGNED BY BOTH THE LESSOR AND LESSEE.

The department may establish and charge an application fee for administrative and enforcement costs associated with this section.

3.

ON THE DIRECTOR APPROVING THE LEASE, THE DIRECTOR SHALL TRANSFER THE LESSOR'S OFF-SALE PRIVILEGES, except the privilege to sell mixed cocktails for off-premises consumption pursuant to section 4-244, paragraph 32, subdivision (d), TO THE RESTAURANT LESSEE FOR THE TERM OF THE LEASE.

4.

THE DEPARTMENT SHALL ESTABLISH A PROCESS TO FACILITATE and approve THE LEASE CONVEYANCE AND TO GOVERN THE LEASEs, including the following:

(a) A STANDARD FORM OF LEASE.

(b) THE TERM OF THE LEASE SHALL BE ONE YEAR EXCEPT for THE FIRST YEAR OF THE LEASE.  DURING THE FIRST YEAR OF THE LEASE, THE DIRECTOR MAY establish A LEASE TERM THAT IS LESS THAN A YEAR IN ORDER TO ALIGN THE LEASE RENEWAL DATE WITH THE RENEWAL DATE OF THE RESTAURANT LICENSE.

(c) The RESPONSIBILITIES OF THE LESSOR AND LESSEE.

(d) THE LEASE MAY BE TRANSFERRED TO ANOTHER RESTAURANT LICENSEE IF THE NEW RESTAURANT LICENSEE PURCHASES THE BUSINESS OF THE ORIGINAL LESSEE DURING THE TERM OF THE LEASE.

(e) THE PRIVILEGES CONVEYED TO THE LESSEE DURING THE TERM OF THE LEASE WILL CONTINUE IF THE BAR, BEER AND WINE BAR OR LIQUOR STORE LESSOR HAS its LICENSE SUSPENDED OR REVOKED.

(f) IF THE BAR, BEER AND WINE BAR OR LIQUOR STORE LESSOR SELLS its LICENSE DURING THE TERM OF THE LEASE, THE PURCHASER OF THE BAR, BEER AND WINE BAR OR LIQUOR STORE LICENSE BECOMEs THE NEW LESSOR.

(g) THIS TITLE AND RULES ADOPTED PURSUANT TO THIS TITLE APPLY TO BOTH THE LESSOR AND LESSEE.

(h) DURING THE TERM OF THE LEASE, ALL VIOLATIONS AND LIABILITY FOR LIQUOR SERVICE UNDER THE LEASE SHALL BE ATTRIBUTED ONLY TO THE RESTAURANT LICENSEE LEASING THE PRIVILEGE.

The restaurant licensee leasing the off-sale privilege is not responsible for violations committed by the lessor.

5.

The Restaurant licensee shall pay to the department all lease payments in full in advance.

6.

the department of liquor licenses and control may adopt a procedure to pay the lease amount to the lessor and may use the department of administration to facilitate the payments.

7.

DURING THE TERM OF THE LEASE, ALL VIOLATIONs AND LIABILITY FOR THE LIQUOR SERVICE UNDER THE LEASE SHALL BE ATTRIBUTED ONLY TO THE RESTAURANT LICENSEE LEASING THE PRIVILEGE.

Pursuant to section 4-210, THE DIRECTOR MAY IMMEDIATELY SUSPEND A LEASE FOR ANY VIOLATION OF THIS TITLE OR ANY RULE ADOPTED PURSUANT TO THIS TITLE BY THE RESTAURANT LICENSEE.

The restaurant licensee leasing the off-sale privilege is not responsible for violations committed by the lessor.

8.

DURING THE TERM OF the LEASE, A BAR, BEER AND WINE BAR OR LIQUOR STORE LESSOR may NOT SELL SPIRITuOUS LIQUOR FOR OFF-PREMISES CONSUMPTION, EXCEPT A BAR OR LIQUOR STORE LICENSEE MAY SELL MIXED COCKTAILS FOR OFF-PREMISES CONSUMPTION PURSUANT TO SECTION 4-244, PARAGRAPH 32, SUBDIVISION (d).

9.

the restaurant licensee leasing the off-sale privilege is subject to the limit on off-sale use by the restaurant licensee's total spirituous liquor sales as prescribed in section 4-206.01, subsection g.

10.

A lessor may lease its off-sale privileges only TO A RESTAURANT LICENSEE LOCATED IN THE SAME COUNTY.

C.

THE DIRECTOR SHALL PUBLISH A LEASE AMOUNT FOR LEASES MADE PURSUANT TO THIS SECTION.

The department shall establish a lease amount THAT FAIRLY RECOGNIZES, AND IS DERIVED FROM, THE COMMERCIAL VALUE OF selling SPIRITUOUS LIQUOR FOR CONSUMPTION OFF THE LICENSED PREMISES.

THE department MAY ESTABLISH SEPARATE LEASE AMOUNTs FOR URBAN AND RURAL COUNTIES AND MAY DESIGNATE COUNTIES IN THIS STATE FOR EACH AMOUNT.

THE LEASE AMOUNT applies UNLESS THE LESSOR and LESSEE AGREE TO A DIFFERENT LEASE AMOUNT.

D.

BEGINNING JANUARY 1, 2026, THE DIRECTOR SHALL MAKE AVAILABLE FOR RESTAURANT LICENSEES TO PURCHASE FROM THE DEPARTMENT PERMITS TO SELL MIXED COCKTAILS PURSUANT TO SECTION 4-244, PARAGRAPH 32, SUBDIVISION (d) EQUAL IN NUMBER TO THE NUMBER OF TOTAL BAR AND LIQUOR STORE LICENSES.  THE DIRECTOR MAY SET THE APPLICATION AND ANNUAL RENEWAL FEE FOR A MIXED COCKTAIL PERMIT to be used for administrative and enforcement costs associated with the permit.

END_STATUTE Sec. 4.

Delayed repeal Section 4-203.06, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2025.

Sec. 5.

The holder of a restaurant license may sell and serve spirituous liquors solely for consumption on the licensed premises.  For the purpose of this subsection, "licensed premises" may include rooms, areas or locations in which the restaurant normally sells or serves spirituous liquors pursuant to regular operating procedures and practices and that are contiguous to the restaurant or a noncontiguous patio pursuant to section 4-101, paragraph 29 30.31.

J.j.

NOTWITHSTANDINGnotwithstanding SECTIONsection 4-207, Asection restaurant4-203, applicantsubsection orE licenseeand maysection apply4-210, forsubsection aA, permitparagraph to6, allowthrough thedecember sale31, of2025, mixeda cocktailsrestaurant forapplicant consumptionor offlicensee themay licensedapply premises pursuant to sectionthe 4-244,department paragraphfor 32, subdivision (d), on a formlease prescribedfor and furnished by the director. PRIVILEGE the sale of selling mixed cocktails for consumption off the licensed premises mustpursuant beto accompaniedsection by4-203.06 the sale of food for consumption on or off the licensed premises.  The department shall issue the permit only after the director has determined that the public convenience requires and thatsection the4-244, bestparagraph interest32, ofsubdivision the(d). community will be substantially served by issuing the permit.

AllK. applicants for the permit and their employees, managers and managing agents must complete alcohol training pursuant to section 4-112, subsection g, paragraph 2.

NOTWITHSTANDING SECTION 4-207, beginning january 1, 2026, A restaurant applicant or licensee may apply for a permit to allow the sale of mixed cocktails for consumption off the licensed premises pursuant to section 4-203.07 and section 4-244, paragraph 32, subdivision (d), on a form prescribed and furnished by the director.  the sale of mixed cocktails for consumption off the licensed premises must be accompanied by the sale of menu food items for consumption on or off the licensed premises.  The department shall issue the permit only after the director has determined that the public convenience requires and that the best interest of the community will be substantially served by issuing the permit.

All permit holders and their employees, managers and agents must complete alcohol training pursuant to section 4-112, subsection g, paragraph 2.

K.

If a restaurant that has been issued a permit pursuant to subsection J of this section for the delivery of mixed cocktails contracts with a licensed third-party facilitator and the third-party facilitator violates this chapter, the director may not treat the third-party facilitator's violation as a violation by the restaurant.

J.

A RESTAURANT LICENSEE SHALL CEASE selling SPIRITUOUS LIQUOR, including mixed cocktails, FOR OFF-PREMISES CONSUMPTION WHEN THE LICENSEE ceases REGULAR KITCHEN SERVICE FOR food.

J.

M.

"Gross revenue"revenue": means the revenue derived from all sales of food and spirituous liquor on the licensed premises, regardless of whether the sales of spirituous liquor are made under a restaurant license issued pursuant to this section or under any other license that has been issued for the premises pursuant to this article.

(a) Means the revenue derived from all sales of food and spirituous liquor on the licensed premises, regardless of whether the sales of spirituous liquor are made under a restaurant license issued pursuant to this section or under any other license that has been issued for the premises pursuant to this article.

(b) Includes revenue derived from spirituous liquor sold for off-sale consumption.

END_STATUTE Sec. 4.Sec. 6.

Third-partyRegistered facilitatoralcohol license;delivery contractor;

regulatory provisions;provisions A.

expirationTHE A.DIRECTOR MAY REGISTER ANY PERSON IN THIS STATE AS AN ALCOHOL DELIVERY CONTRACTOR FOR THE PURPOSES OF DELIVERING SPIRITuOUS LIQUOR FROM A BAR, BEER AND WINE BAR, LIQUOR STORE, beer and wine store OR RESTAURANT LICENSEE TO A CONSUMER IN THIS STATE PURSUANT TO SECTION 4-203, SUBSECTIONs S AND T.

The director may issue a third-party facilitator license to any person in this state for the purpose of facilitating the delivery of spirituous liquor.

A personPERSON shallSHALL applyAPPLY forTO aBE third-partyA facilitatorREGISTERED licenseALCOHOL onDELIVERY aCONTRACTOR formON prescribedA andFORM providedPRESCRIBED byBY theTHE director.DIRECTOR.

TheTHE directorDIRECTOR maySHALL establishREQUIRE andAN chargeAPPLICANT aTO licensePROVIDE andTHE renewalCONTROLLING feePERSON'S toIDENTIFICATION beAND usedANY forBACKGROUND administrativeINFORMATION costsDEEMED associatedNECESSARY withTO theIDENTIFY third-partyTHE facilitatorPERSON license. AND AnTO applicationDEMONSTRATE forPROOF aOF third-partyTHE facilitatorPERSON'S licenseAUTHORITY shallTO include:CONDUCT BUSINESS IN THIS STATE, INCLUDING COPIES OF ANY REQUIRED STATE OR LOCAL BUSINESS LICENSES OR PERMITS.

1.THE DIRECTOR MAY ESTABLISH AND CHARGE A REGISTRATION FEE AND A RENEWAL FEE TO BE USED FOR ADMINISTRATIVE AND ENFORCEMENT COSTS ASSOCIATED WITH ALCOHOL DELIVERY CONTRACTORS.

The address of the premises where the applicant's principal place of business is located.

2.

The name, address and telephone number of an officer of the applicant or individual who is authorized to represent the applicant before the director.

3.

A complete and full disclosure by the applicant and by any officer, director or controlling person of the applicant of any criminal convictions in any state or foreign jurisdiction within the five years immediately preceding the application.

TheTHE directorDEPARTMENT maySHALL refuseMAINTAIN toA issueLIST aOF third-partyREGISTERED facilitatorALCOHOL licenseDELIVERY forCONTRACTORS goodTHAT cause.ARE NOT OTHERWISE IN PENALTY STATUS PURSUANT TO SUBSECTION G OF THIS SECTION.

The director may not issue a third-party facilitator license to any person who meets either of the following:

1.

Has had a third-party facilitator license or any other license to deal in spirituous liquor revoked in this state or any other state within one year preceding the application.

2.

Has been convicted of a felony in this state or any other state or has been convicted of an offense in another state that would be a felony if convicted in this state within five yearS immediately preceding the application.

ATHE third-partyDEPARTMENT facilitatorMAY licenseREQUIRE isNEW validREGISTERED forALCOHOL oneDELIVERY year.CONTRACTORS TO COMPLETE AN APPROVED TRAINING COURSE IN ACCORDANCE WITH SECTION 4-112, SUBSECTION G, PARAGRAPH 2.

Third-party facilitator licenses may not be transferred.  A personREGISTERED thatALCOHOL holdsDELIVERY aCONTRACTOR third-partyIS facilitatorSUBJECT licenseTO mayEXAMINATIONS applyCONDUCTED forPURSUANT aTO renewalSECTION before4-112, theSUBSECTION expirationG, ofPARAGRAPH the1. person's current license.  The director may establish and charge a license renewal fee to be used for administrative costs associated with the third-party facilitator license, auditing and enforcement.

AfterTHE noticeDIRECTOR andMAY aREFUSE hearingTO pursuantREGISTER toA titlePERSON 41,AS chapterAN 6,ALCOHOL articleDELIVERY 10,CONTRACTOR theFOR directorGOOD mayCAUSE suspend,AND revokeMAY orNOT refuseREGISTER toANY renewPERSON aAS third-partyAN facilitatorALCOHOL licenseDELIVERY forCONTRACTOR anyIF violationTHE ofPERSON thisHAS TITLEBEEN ORCONVICTED RULEOF ADOPTEDA PURSUANTFELONY TOIN THIS TITLESTATE orOR forANY goodOTHER cause. STATE InWITHIN lieuFIVE ofYEARS suspensionIMMEDIATELY orPRECEDING revocationTHE ofAPPLICATION. or refusal to renew a license, the director may impose a civil penalty pursuant to section 4-210.01 against a licensee for each violation of this section.

The licensee may appeal the finding or decision of the director to the board.  The board may affirm, modify or reverse the finding or decision of the director.

NotwithstandingA anyREGISTERED otherALCOHOL law,DELIVERY aCONTRACTOR third-partyMAY facilitatorDELIVER licenseeSPIRITUOUS mayLIQUOR deliverTO spirituousA liquorCONSUMER toIN aTHIS consumerSTATE onON behalfBEHALF ofOF aA barBAR, orBEER aand restaurantWINE inBAR, thisLIQUOR stateSTORE, pursuantbeer toand sectionwine store OR RESTAURANT IN THIS STATE PURSUANT TO SECTION 4-203, subsectionsSUBSECTIONS sS andAND t,T, ifIF theTHE third-partyREGISTERED facilitatorALCOHOL compliesDELIVERY withCONTRACTOR thisCOMPLIES chapter.WITH THIS TITLE.

TheA directorREGISTERED shallALCOHOL adoptDELIVERY rulesCONTRACTOR thatMAY setCONTRACT ageWITH verificationONE OR MORE INDEPENDENT subCONTRACTORS FOR THE DELIVERY OF SPIRITUOUS LIQUOR TO A CONSUMER IN THIS STATE ON BEHALF OF A BAR, BEER AND WINE BAR, LIQUOR STORE, beer and recordwine standardsstore forOR theRESTAURANT deliveryIN ofTHIS spirituousSTATE liquorPURSUANT byTO aSECTION third-party4-203, facilitator.SUBSECTIONS S AND T.

an alcohol delivery contractor, a subcontractor of an alcohol delivery contractor, an employee of an alcohol delivery contractor or an employee of a subcontractor is deemed to be acting on behalf of the licensee when making a delivery of spirituous liquor for the licensee.

OnIN theADDITION requestTO ofALL theOTHER departmentACTION orTHAT lawMAY enforcementBE TAKEN BY THE DIRECTOR FOR A VIOLATION OF THIS TITLE OR THE RULES ADOPTED PURSUANT TO THIS TITLE BY A REGISTERED ALCOHOL DELIVERY CONTRACTOR and pursuantits toEMPLOYEES anOR investigationsubcontractors and employees of asubcontractors, violationTHE ofDEPARTMENT thisMAY section,LIMIT aTHE third-partyRIGHT facilitatorOF shallTHE provideregistered informationalcohol requesteddelivery byCONTRACTOR theTO departmentDELIVER orSPIRITUOUS lawLIQUOR enforcementON asBEHALF partOF ofA theLICENSEE investigation,FOR includingA aPERIOD descriptionOF andUP licenseTO plateONE numberYEAR, ofAFTER theWHICH vehicleTHE usedALCOHOL toDELIVERY facilitateCONTRACTOR theSHALL deliveryREGISTER request.WITH THE DEPARTMENT TO RESUME DELIVERY OF SPIRITUOUS LIQUOR.

H.ANY PENALTY ISSUED PURSUANT TO THIS SUBSECTION MAY BE APPEALED TO THE BOARD PURSUANT TO SECTION 4-210.02.

NotwithstandingEND_STATUTE sectionSec. 7. 4-201, a third-party facilitator may take orders for spirituous liquor, including collecting payment for the spirituous liquor on behalf of another licensee if one hundred percent of the monies for the spirituous liquor are transferred to the other licensee.

I.

All applicants, licensees and managers must complete alcohol training pursuant to section 4-112, SUBSECTION G, PARAGRAPH 2.

END_STATUTE Sec. 5.

For the purposes of compliance with section 4-205.02, subsection J  l,M, paragraph 2, it shall be conclusively presumed that all on-premises sales of spirituous liquors are made under the authority of the restaurant license.

n.END_STATUTE Sec. 8.

if a bar contracts with a licensed third-party facilitator and the third-party facilitator violates this chapter, the director may not treat the third-party facilitator's violation as a violation by the bar.

END_STATUTE Sec. 6.

except an application fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection J,k and leases pursuant to sections 4-203.06 and 4-203.07, an application fee for an original license or the transfer of a license shall be one hundred dollars $100, which shall be retained by this state.

for an application for a permit pursuant to section 4-203.07 and section 4-205.02, subsection j,K, the director may charge a fee.fee.  the director may establish and charge fees for lease applications pursuant to sections 4-203.06 and 4-203.07.

The department may charge a fee for aregistering third-partyan facilitatoralcohol licensedelivery contractor pursuant to section 4-205.13.

the director may establish an annual fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection j.K.

The director may charge annual lease amounts pursuant to sections 4-203.06 and 4-203.07.

the department may charge a fee for the annual registration renewal of a third-partyregistered facilitatoralcohol licensedelivery contractor pursuant to section 4-205.13.

the department shall use ALL MONIES received FROM Aapplication PERMITfees for permits ISSUED PURSUANT TO SECTION 4-205.02, SUBSECTION JK, ANDleases Apursuant LICENSEto ISSUEDsections PURSUANT4-203.06 TOand SECTION4-203.07 4-205.13,and INCLUDINGregistrations THEPURSUANT ANNUALTO RENEWALSECTION FEES,4-205.13 FOR ADMINISTRATIVE COSTS ASSOCIATED WITH THE PERMITPERMIT, registration OR LICENSElease AND ENFORCEMENT of this section.chapter.

END_STATUTE Sec. 7.Sec. 9.

Section 4-210, Arizona Revised Statutes, is amended to read:

START_STATUTE4-210.

Grounds for revocation, suspension and refusal to renew;

notice;

complaints;

hearings;

defense A.

After notice and hearing, the director may suspend, revoke or refuse to renew any license, registration, lease or permit issued pursuant to this chapter for any of the following reasons:

1.

There occurs on the licensed premises repeated acts of violence.

2.

The licensee, registrant, lessee or permittee fails to satisfactorily maintain the capability, qualifications and reliability requirements of an applicant for a license, registration, lease or permit prescribed in section 4-202, or 4-203, 4-203.06, 4-203.07 or 4-205.13.

3.

The licensee, registrant, lessee, permittee or controlling person knowingly files with the department an application or other document that contains material information that is false or misleading or while under oath knowingly gives testimony in an investigation or other proceeding under this title that is false or misleading.

4.

The licensee, registrant, lessee, permittee or controlling person is on the premises habitually intoxicated.

5.

The licensed, registered, leased or permitted business is delinquent for more than one hundred twenty days in the payment of taxes, penalties or interest in an amount that exceeds $250 to the this state or to any political subdivision of the this state.

6.

The licensee or controlling person obtains, assigns, transfers or sells a spirituous liquor license without compliance with this title or leases or subleases a license.

7.

The licensee, registrant, lessee or permittee fails to keep for two years and make available to the department on reasonable request all invoices, records, bills or other papers and documents relating to the purchase, sale and delivery of spirituous liquors and, in the case of a restaurant or hotel-motel licensee, all invoices, records, bills or other papers and documents relating to the purchase, sale and delivery of food.

8.

The licensee, registrant, lessee, permittee or controlling person is convicted of a felony provided that for a conviction of a corporation to serve as a reason for any action by the director, conduct that constitutes the corporate offense and was the basis for the felony conviction must have been engaged in, authorized, solicited, commanded or recklessly tolerated by the directors of the corporation or by a high managerial agent acting within the scope of employment.

9.

The licensee, registrant, lessee, permittee or controlling person violates or fails to comply with this title, any rule adopted pursuant to this title or any liquor law of this state or any other state.

10.

The licensee, registrant, lessee or permittee fails to take reasonable steps to protect the safety of a customer of the licensee, registrant, lessee or permittee or any other person entering, leaving or remaining on the licensed premises when the licensee knew or reasonably should have known of the danger to the person, or the licensee fails to take reasonable steps to intervene by notifying law enforcement officials or otherwise to prevent or break up an act of violence occurring on the licensed premises or immediately adjacent to the premises when the licensee knew or reasonably should have known of the acts of violence.

11.

The licensee, REGISTRANT, LESSEE, PERMITTEE or controlling person lacks good moral character.

12.

The licensee, REGISTRANT, LESSEE, PERMITTEE or controlling person knowingly associates with a person who has engaged in racketeering, as defined in section 13-2301, or who has been convicted of a felony, and the association is of a nature as to create a reasonable risk that the licensee, REGISTRANT, LESSEE OR PERMITTEE will fail to conform to the requirements of this title or of any criminal statute of this state.

13.

A licensee that is a liquor store as defined in section 46-297 violates the restrictions on use of automatic teller machines or point-of-sale terminals regarding electronic benefit transfer cards prescribed in section 4-242.01.

14.

There occurs on the licensed premises a serious act of violence.  For the purposes of this paragraph, "serious act of violence" means an act of violence in which a serious injury causes the death or critical injury of a person and the injuries would be obvious to a reasonable person.

15.

The licensee fails to report a serious act of violence that occurs on the licensed premises.  For the purposes of this paragraph, "serious act of violence" means an act of violence in which a serious injury causes death or critical injury of a person and the injuries would be obvious to a reasonable person.

16.

The licensee, REGISTRANT, LESSEE OR PERMITTEE violates an order of the board.

B.

For the purposes of:

1.

Subsection A, paragraph 8 of this section, "high managerial agent" means an officer of a corporation or any other agent of the corporation in a position of comparable authority with respect to the formulation of corporate policy.

2.

Subsection A, paragraphs 9 and 10 of this section, acts or omissions of an employee of a licensee that violate this title or rules adopted pursuant to this title are deemed to be acts or omissions of the licensee.  Acts or omissions by an employee or licensee committed during the time the licensed premises were operated pursuant to an interim permit or without a license may be charged as if they had been committed during the period the premises were duly licensed.

C.

The director may suspend, revoke or refuse to issue, transfer or renew a license, REGISTRATION, LEASE OR PERMIT under this section based solely on the unrelated conduct or fitness of any officer, director, managing agent or other controlling person if the controlling person retains any interest in or control of the licensee, REGISTRANT, LESSEE OR PERMITTEE after sixty days following written notice to the licensee, REGISTRANT, LESSEE OR PERMITTEE.

If the controlling person holds stock in a corporate licensee, REGISTRANT, LESSEE OR PERMITTEE or is a partner in a partnership licensee, REGISTRANT, LESSEE OR PERMITTEE, the controlling person may only divest himself of his the controlling person's interest by transferring the interest to the existing stockholders or partners who must demonstrate to the department that they meet all the requirements for licensure, REGISTRATION, LEASING OR PERMITTING.  For the purposes of this subsection, the conduct or fitness of a controlling person is unrelated if it would not be attributable to the licensee, REGISTRANT, LESSEE OR PERMITTEE.

D.

If the director finds, based on clear and convincing evidence in the record, that a violation involves the use by the licensee, registrant, lessee or permittee of a drive-through or walk-up service window or other physical feature of the licensed premises that allows a customer to purchase spirituous liquor without leaving the customer's vehicle or, with respect to a walk-up service window that prevents the licensee, registrant, lessee or permittee from fully observing the customer, and that the use of that drive-through or walk-up service window or other physical feature caused the violation, the director may suspend or terminate the licensee's, registrant's, lessee's or permittee's use of the drive-through or walk-up service window or other physical feature for the sale of spirituous liquor, in addition to any other sanction.

E.

The director may refuse to transfer any license, REGISTRATION, LEASE OR PERMIT or issue a new license, REGISTRATION, LEASE OR PERMIT at the same location if the director has filed a complaint against the license, REGISTRATION, LEASE, PERMIT or location that has not been resolved alleging a violation of any of the grounds stated in subsection A of this section until the time the complaint has been finally adjudicated.

F.

The director shall receive all complaints of alleged violations of this chapter and is responsible for the investigation of all allegations of a violation of, or noncompliance with, this title, any rule adopted pursuant to this title or any condition imposed on the licensee, REGISTRANT, LESSEE OR PERMITTEE by the license, REGISTRATION, LEASE OR PERMIT.

When the director receives three complaints from any law enforcement agency resulting from three separate incidents at a licensed, leased or permitted establishment or by a registrant within a twelve-month period, the director shall transmit a written report to the board setting forth the complaints, the results of any investigation conducted by the law enforcement agency or the department relating to the complaints and a history of all prior complaints against the license, REGISTRATION, LEASE OR PERMIT and their disposition.

The board shall review the report and may direct the director to conduct further investigation of a complaint or to serve a licensee, REGISTRANT, LESSEE OR PERMITTEE with a complaint and notice of a hearing pursuant to subsection G of this section.

G.

On the director's initiation of an investigation or on the receipt of a complaint and an investigation of the complaint as deemed necessary, the director may cause a complaint and notice of a hearing to be directed to the licensee, REGISTRANT, LESSEE OR PERMITTEE that states the violations alleged against the licensee, REGISTRANT, LESSEE OR PERMITTEE and directing the licensee, REGISTRANT, LESSEE OR PERMITTEE, within fifteen days after service of the complaint and notice of a hearing, to appear by filing with the director an answer to the complaint.  Failure of the licensee, REGISTRANT, LESSEE OR PERMITTEE to answer may be deemed an admission by the licensee, REGISTRANT, LESSEE OR PERMITTEE of commission of the act charged in the complaint.

The director may then vacate the hearing and impose any sanction provided by this article.  The director may waive any sanction for good cause shown, including excusable neglect.

With respect to any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's, REGISTRANT'S, LESSEE'S OR PERMITTEE'S employee, the director shall consider evidence of mitigation presented by the licensee, REGISTRANT, LESSEE OR PERMITTEE and established by a preponderance of the evidence that the employee acted intentionally and in violation of the express direction or policy adopted by the licensee, REGISTRANT, LESSEE OR PERMITTEE and communicated to the employee and that the employee successfully completed training in a course approved by the director pursuant to section 4-112, subsection G, paragraph 2.

The director may set the hearing before the director or an administrative law judge on any of the grounds stated in subsection A of this section.

Instead of issuing a complaint, the director may provide for informal disposition of the matter by consent agreement or may issue a written warning to the licensee, REGISTRANT, LESSEE OR PERMITTEE.  If a warning is issued, the licensee, REGISTRANT, LESSEE OR PERMITTEE may reply in writing and the director shall keep a record of the warning and the reply.

H.

A hearing shall conform to the requirements of title 41, chapter 6, article 10.

At the hearing an attorney or corporate officer or employee of a corporation may represent the corporation.

The revoking, suspending or refusing to renew a license, REGISTRATION, LEASE OR PERMIT for unpaid taxes, penalties or interest pursuant to subsection A, paragraph 5 of this section is a contested case with the department of revenue pursuant to section 42-1251.01.

I.

The expiration, cancellation, revocation, reversion, surrender, acceptance of surrender or termination in any other manner of a license, REGISTRATION, LEASE OR PERMIT does not prevent the initiation or completion of a disciplinary proceeding pursuant to this section against the licensee, REGISTRANT, LESSEE OR PERMITTEE or license, REGISTRATION, LEASE OR PERMIT.  An order issued pursuant to a disciplinary proceeding against a license, REGISTRATION, LEASE OR PERMIT is enforceable against other licenses, REGISTRATIONS, LEASES OR PERMITS or subsequent licenses, REGISTRATIONS, LEASES OR PERMITS in which the licensee, REGISTRANT, LESSEE, PERMITTEE or controlling person of the license, REGISTRATION, LEASE OR PERMIT has a controlling interest.

J.

The department shall provide the same notice as is provided to the licensee, REGISTRANT, LESSEE OR PERMITTEE to a lienholder, which has provided a document under section 4-112, subsection B, paragraph 3, of all disciplinary or compliance action with respect to a license, REGISTRATION, LEASE OR PERMIT issued pursuant to this title.

The state is not liable for damages for any failure to provide any notice pursuant to this subsection.

K.

In any disciplinary action pursuant to this title, a lienholder may participate in the determination of the action.  The director shall consider mitigation on behalf of the lienholder if the lienholder proves all of the following by a preponderance of the evidence:

1.

That the lienholder's interest is a bona fide security interest.  For the purposes of this paragraph, "bona fide security interest" means the lienholder provides actual consideration to the licensee, REGISTRANT, LESSEE OR PERMITTEE or the licensee's, REGISTRANT'S, LESSEE'S OR PERMITTEE'S predecessor in interest in exchange for the lienholder's interest.  Bona fide security interest includes a lien taken by the seller of a license, REGISTRATION, LEASE OR PERMIT as security for the seller's receipt of all or part of the purchase price of the license, REGISTRATION, LEASE OR PERMIT.

2.

That a statement of legal or equitable interest was filed with the department before the alleged conduct occurred that is the basis for the action against the license, REGISTRATION, LEASE OR PERMIT.

3.

That the lienholder took reasonable steps to correct the licensee's, REGISTRANT'S, LESSEE'S OR PERMITTEE'S prior actions, if any, or initiated an action pursuant to available contract rights against the licensee, REGISTRANT, LESSEE OR PERMITTEE for the forfeiture of the license, REGISTRATION, LEASE OR PERMIT after being provided with notice by the department of disciplinary action as provided in subsection J of this section.

4.

That the lienholder was free of responsibility for the conduct that is the basis for the proposed revocation.

5.

That the lienholder reasonably attempted to remain informed by the licensee, REGISTRANT, LESSEE OR PERMITTEE about the business's conduct.

L.

If the director decides not to revoke the license, REGISTRATION, LEASE OR PERMIT based on the circumstances provided in subsection K of this section, the director may issue an order requiring either, or both, of the following:

1.

The forfeiture of all interest of the licensee, REGISTRANT, LESSEE OR PERMITTEE in the license, REGISTRATION, LEASE OR PERMIT.

2.

The lienholder to pay any civil monetary penalty imposed on the licensee, REGISTRANT, LESSEE OR PERMITTEE.

M.

If any on-sale licensee proposes to provide large capacity entertainment events or sporting events with an attendance capacity exceeding a limit established by the director, the director may request a security plan from the licensee that may include trained security officers, lighting and other requirements.

This subsection exclusively prescribes the security requirements for a licensee and does not create any civil liability for the this state, its agencies, agents or employees or a person licensed under this title or agents or employees of a licensee.

N.

The director may consider as a mitigating factor or defense to a complaint against a licensee for a violation of subsection A, paragraph 10 or 14 of this section that the licensee acted reasonably, responsibly and as expeditiously as possible by asking for intervention by a peace officer to prevent or to break up a riot, a fight, an altercation or tumultuous conduct.END_STATUTE Sec. 10.

In lieu of or in addition to the suspension or revocation of or refusal to renew a license authorized by section 4-210, subsection A and A registration pursuant to section 4-205.13, subsection E,G, the director may impose a civil penalty of not less than two hundred nor at least $200 and not more than three thousand dollars $3,000 for each violation.

The licensee or registrant is entitled to appeal the decision of the director to the board.

The director may establish payment of the civil penalty as authorized in subsectionin subsection A of this section, by the licensee in the form of a single payment or installment payments.installment payments.

b.

the director may require a licensee or registrant to pay a civil penalty assessed pursuant to subsection a of this section in a single payment or in installment payments.

In addition to the imposition of any other penalty authorized by this title, the director may impose a requirement that the licensee or registrant or other person attend a training program approved by the department.

END_STATUTE Sec. 8.Sec. 11.

Section 4-226, Arizona Revised Statutes, is amended to read:

START_STATUTE4-226.

Exemptions The provisions of This title do does not apply to the following:

1.

Drugstores selling spirituous liquors only on prescription.

2.

Any confectionery candy containing less than five per cent percent by weight of alcohol.

3.

Ethyl alcohol intended for use or used for the following purposes:

(a) Scientific, chemical, mechanical, industrial and medicinal purposes.

For the purposes of this paragraph, medicinal purposes does do not include ethyl alcohol or spirituous liquor that contains marijuana or usable marijuana as defined in section 36-2801.

(b) Use By those authorized to procure spirituous liquor or ethyl alcohol tax-free, as provided by the acts of Congress and regulations promulgated thereunder under the acts of congress.

(c) In the manufacture of denatured alcohol produced and used as provided by the acts of Congress and regulations promulgated thereunder under the acts of congress.

(d) In the manufacture of patented, patent, proprietary, medicinal, pharmaceutical, antiseptic, toilet, scientific, chemical, mechanical and industrial preparations or products, unfit and not used for beverage purposes.

(e) In the manufacture of flavoring extracts and syrups unfit for beverage purposes.

4.

The purchase, storage, distribution, service or consumption of wine in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise by a church recognized by the United States internal revenue service under section 501(c)(3) of the internal revenue code and in a manner not dangerous to public health or safety.

This exemption does not apply to any alleged violation of section 4-244, paragraph 9, 34, 35 or 41.

5.

Beer produced for personal or family use that is not for sale.  The beer may be removed from the premises where it was made and exhibited at organized affairs, exhibitions or competitions such as homebrewers' contests, tasting or judging.

6.

the manufacture or sale of bitters products that have been classified and approved as a nonbeverage product or unfit for beverage purposes by the united states alcohol and tobacco tax and trade bureau.  this paragraph is consistent with the classification guidelines as established and administered by the united states alcohol and tobacco tax and trade bureau.

END_STATUTE Sec. 12.

For an on-sale or off-sale retailer or an employee of such retailer or an alcohol delivery contractor to sell, dispose of, deliver or give spirituous liquor to a person between the hours of 2:00 a.m.

(d) A bar or liquor store licensee THAT PREPARES A MIXED COCKTAIL or a restaurant licensee that leases the privilege to sell mixed cocktails for consumption off the licensed premises pursuant to section 4-203.06 or holds a permit pursuant to section 4-203.07 and section 4-205.02, subsection jK and that prepares a mixed cocktail AND TRANSFERS IT TO A CLEAN CONTAINER COMPOSED OF A MATERIAL APPROVED BY A NATIONAL SANITATION ORGANIZATION WITH A MAXIMUM CAPACITY THAT DOES NOT EXCEED thirty-two OUNCES AND NOT FOR CONSUMPTION ON THE PREMISES IF all of the following apply:

(i) THE LICENSEE OR LICENSEE'S EMPLOYEE FILLS THE CONTAINER WITH THE MIXED COCKTAIL ON THE LICENSED PREMISES.PREMISES of the bar, liquor store or restaurant.

(ii) THE CONTAINER IS SEALEDtamper proof sealed by the licensee or the licensee's employee AND DISPLAYS A GOVERNMENT WARNING LABEL.

(iii) the container clearly displays the bar'sbar's, liquor store's or restaurant's logo or name.

(iv) for a restaurant licensee licensed pursuant to section 4-205.02, the sale of mixed cocktails for consumption off the licensed premises is accompanied by the sale of menu food items for consumption on or off the licensed premises.

END_STATUTE Sec. 13.

Severability clause If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.

Sec. 14.

Effective date Sections 4-101, 4-203, 4-205.02, 4-206.01, 4-209, 4-210, 4-210.01 and 4-244, Arizona Revised Statutes, as amended by this act, and sections 4-203.06, 4-203.07 and 4-205.13, Arizona Revised Statutes, as added by this act, are effective from and after September 30, 2021.

Sec. 15.

Retroactivity Section 4-226, Arizona Revised Statutes, as amended by this act, applies retroactively to July 1, 2020.

      APPROVED BY THE GOVERNOR MAY 21, 2021.

  FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 21, 2021.