Arizona Administrative Code, Title 19 — Alcohol, Horse and Dog Racing, Lottery, and Gaming

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Chapter 1 DEPARTMENT OF LIQUOR LICENSES AND CONTROL

Article 1 GENERAL PROVISIONS

Ariz. Admin. Code § R19-1-101 Definitions

A. The definitions in A.R.S. §§ 4-101, 4-205.02, 4-205.03, 4-205.06, 4-207, 4-210, 4-227, 4-243, 4-243.01, 4-244, 4-248, 4-251, and 4311 apply to this Chapter. Additionally, in A.R.S. Title 4 and this Chapter, unless the context otherwise requires:

1. "Association" means a group of individuals who have a common interest that is organized as a non-profit corporation or fraternal or benevolent society and owns or leases a business premises for the group's exclusive use.

2. "Bar license" (Series 6) means authorization issued to an on-sale retailer to sell:

a. Spirituous liquors in individual portions for consumption on the licensed premises;

b. Spirituous liquors in an original, unopened, container for consumption off the licensed premises provided sales for consumption off the licensed premises, by total retail sales of spirituous liquor at the licensed premises, are no more than the percentage of the sales price of on-sale spirituous liquor established under A.R.S. § 4-206.01(G); and

c. Beer in accordance with A.R.S. § 4-244(32)(c).

3. "Beer and wine bar license" (Series 7) means authorization issued to an on-sale retailer to sell:

a. Beer and wine in individual portions for consumption on the licensed premises;

b. Beer and wine in an original, unopened, container for consumption off the licensed premises provided sales for consumption off the licensed premises, by total retail sales of spirituous liquor at the licensed premises, are no more than the percentage of the sales price of on-sale spirituous liquor established under A.R.S. § 4-206.01(G); and

c. Beer in accordance with A.R.S. § 4-244(32)(c).

4. "Beer and wine store license" (Series 10) means authorization issued to an off-sale retailer to sell:

a. Wine and beer in an original, unopened, container for consumption off the licensed premises; and

b. Beer in accordance with A.R.S. § 4-244(32)(c).

"Business" means an enterprise or organized undertaking conducted regularly for profit, which may be licensed or unlicensed.

6. "Business premises" means real property and improvements from which a business operates.

7. "Catering establishment" means a business that is available for hire for a particular event and at which food and service is provided for people who attend the event.

8. "Club license" (Series 14) means authorization issued to a club to sell spirituous liquors only to members and members' bona fide guests for consumption only on the premises of the club.

9. "Cocktail mixer" means a non-alcoholic liquid or solid mixture used for mixing with spirituous liquor to prepare a beverage.

10. "Conveyance license" (Series 8) means authorization issued to the owner or lessee of an airplane, train, or boat to sell spirituous liquors for consumption only on the airplane, train, or boat.

"Cooler product" means an alcoholic beverage made from wine or beer and fruit juice or fruit flavoring, often in combination with a carbonated beverage and sugar but does not include a formula wine as defined at 27 CFR 24.10.

12. "Deal" means to sell, trade, furnish, distribute, or do business in spirituous liquor.

13. "Department" means the Director of the Department of Liquor Licenses and Control and the State Liquor Board.

14. "Direct shipment license" (Series 17) means authorization issued to producer, exporter, importer, or rectifier to take an order for spirituous liquor and ship the order under A.R.S. § 4-203.04(A) -(I).

15. "Domestic farm winery license" (Series 13) means authorization issued to a domestic farm winery that produces at least 200 gallons but not more than 40,000 gallons of wine annually. For the purposed of A.R.S. § 4-243, a domestic farm winery is considered an "other producer."

16. "Domestic microbrewery license" (Series 3) means authorization issued to a domestic microbrewery that produces at least 5,000 gallons of beer following its first year of operation and not more than 1.24 million gallons of beer annually and includes authorization to sell beer in a clean glass container that is sealed and labeled as described in A.R.S. § 4-244(32) . For the purposed of A.R.S. § 4-243, a domestic microbrewery is considered an "other producer."

17.15. "Entertainment," as used in A.R.S. § 4-244.05, means any form of amusement including a theatrical, opera, dance, or musical performance, motion picture, videotape, audiotape, radio, television, carnival, game of chance or skill, exhibit, display, lecture, sporting event, or similar activity.

18.16. "Erotic entertainer," as used in A.R.S. § 4-112(G), means an employee who performs in a manner or style designed to stimulate or arouse sexual thoughts or actions.

17. "Farm winery license" (Series 13) means authorization issued to a farm winery that produces at least 200 gallons but not more than 40,000 gallons of wine annually. For the purposed of A.R.S. § 4-243, a farm winery is considered an "other producer."

19.18. "Government license" (Series 5) has the meaning set forth at A.R.S. § 4-101.

20.19. "Hotel-motel license" (Series 11) means authorization issued to a hotel or motel that has a restaurant where food is served to sell spirituous liquors for consumption on the premises of the hotel or motel or by means of a mini-bar.

21.20. "Incidental convenience," as used in A.R.S. § 4-244.05(I), means allowing a customer to possess and consume the amount of spirituous liquor stated in R19-1-324 while at a business to obtain goods or services regularly offered to all customers.

22.21. "In-state producer license" (Series 1) means authorization issued to an entity to produce or manufacture spirituous liquor in Arizona.

23.22. "Interim permit" means temporary authorization issued under A.R.S. § 4-203.01 that allows continued sale of spirituous liquor.

24.23. "Licensed" means a license or interim permit is issued under A.R.S. Title 4 and this Chapter, including a license or interim permit on nonuse status.

25.24. "Licensed retailer" means an on-sale or off-sale retailer.

26.25. "Limited out-of-state producer license" (Series 2L) means authorization issued to an out-of-state producer to sell no more than 50 cases of spirituous liquor through a wholesaler annually.

27.26. "Liquor store license" (Series 9) means authorization issued to an off-sale retailer to sell:

a. Spirituous liquors in an original, unopened, container for consumption off the licensed premises; and

b. Beer in accordance with A.R.S. § 4-244(32) (c).

"Microbrewery license" (Series 3) means authorization issued to a microbrewery that produces at least 5,000 gallons of beer following its first year of operation and not more than 6.2 million gallons of beer annually and includes authorization to sell beer in a clean glass container that is sealed and labeled as described in A.R.S. § 4-244(32)(c). For the purposed of A.R.S. § 4-243, a microbrewery is considered an "other producer."

28. "Non-technical error" means a mistake on an application that has the potential to mislead regarding the truthfulness of information provided.

29. "Nonuse" means a license is not used to engage in business activity authorized by the license for at least 30 consecutive days.

30. "Out-of-state producer license" (Series 2) means authorization issued to an entity to produce, export, import, or rectify spirituous liquors outside of Arizona and ship the spirituous liquors to a wholesaler.

31. "Party" has the same meaning as prescribed in A.R.S. § 41-1001.

32. "Physical barrier" means a wall, fence, rope, railing, or other temporary or permanent structure erected to restrict access to a designated area of a licensed premises.

33. "Producer" means the holder of an in-state, out-of-state, or limited out-of-state producer license.

34. "Product display" means a wine rack, bin, barrel, cask, shelving, or similar item with the primary function of holding and displaying spirituous liquor or other products.

35. "Production and storage spaces" means the same as in A.R.S. § 4-205.10.

36. "Public area" means the same as in A.R.S. § 4-205.10.

35.37. "Quota license" means a bar, beer and wine bar, or liquor store license.

36.38. "Rectify" means to color, flavor, or otherwise process spirituous liquor by distilling, blending, percolating, or other processes.

37.39. "Reset" means a wholesaler adjusts spirituous liquor on the shelves of a licensed retailer.

38.40. "Restaurant continuation authorization" means authorization issued to the holder of a restaurant license to operate under the restaurant license after it is determined that food sales comprise at least 30 percent but less than 40 percent of the business's gross revenue.

39.41. "Restaurant license" (Series 12) means authorization issued to a restaurant, as defined in A.R.S. § 4-205.02, to sell spirituous liquors for consumption only on the restaurant premises.

40.42. "Second-party purchaser" means an individual who is of legal age to purchase spirituous liquor and buys spirituous liquor for an individual who may not lawfully purchase spirituous liquor in Arizona.

41.43. "Special event license" (Series 15) means the authorization provided under A.R.S. § 4-203.02(E).

42.44. "Tapping equipment" means beer, wine, and distilled spirit dispensers as stated in R19-1-326.

43.45. "Technical error" means a mistake on an application that does not mislead regarding the truthfulness of the information provided.

44.46. "Transfer" means to:

a. Move a license from one location to another location within the same county; or

b. Change ownership, directly or indirectly, in whole or in part, of a business.

45.47. "Wholesaler license" (Series 4) means authorization issued to a wholesaler, as prescribed at A.R.S. § 4-243.01, to warehouse and distribute spirituous liquors to a licensed retailer or another licensed wholesaler.

46.48. "Wine festival or fair license" (Series 16) means authorization issued for a specified period to a farm winery to serve samples of its products and sell the products in individual portions for consumption on the premises or in original, unopened, containers for consumption off the premises.

B. This Section is authorized by A.R.S. § 4-112(B)(1)(a).

History

• Former Rule 1; Former Section R4-15-01 renumbered as Section R4-15-101 without change effective October 8, 1982 (Supp. 82-5). Section repealed, new Section adopted effective March 3, 1993 (Supp. 93-1). R19-1-101 recodified from R4-15-101 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, §18 (Supp. 97-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-111 [REPEALED]

History

• Adopted effective March 3, 1993 (Supp. 93-1). R19-1-111 recodified from R4-15-111 (Supp. 95-1). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Article 2 LICENSING

Ariz. Admin. Code § R19-1-201 Who May Apply for a License

A. Except as provided in subsection (B) and not withstanding any other law, the following pre-requisites apply for a license under A.R.S. Title 4 and this Chapter.

1. If an individual applies for a license, the individual shall be:

a. A citizen of the United States or a legal resident alien, and

b. A bona fide resident of Arizona;

2. If a partnership applies for a license, each partner shall meet the criteria in subsection (A)(1);

3. Except as provided in subsection (A)(6), if a corporation or limited liability company applies for a license, the corporation or limited liability company shall:

a. Be qualified to do business in Arizona, and

b. Hold the license through an agent who is an individual that meets the criteria in subsection (A)(1);

4. If a limited partnership applies for a license:

a. An individual general partner, but not a limited partner, shall meet the criteria in subsection (A)(1); and

b. A corporate general partner shall meet the criteria in subsection (A)(3);

5. If a club or governmental entity applies for a license, the club or governmental entity shall hold the license through an agent who is an individual that meets the criteria in subsection (A)(1);

If an out-of-state entity applies for a license, the out-of-state entity shall hold the license through an agent who meets the standard described in A.R.S. § 4-202(A).

B. An entity organized outside the U.S. that applies for an out-of-state producer or limited out-of-state producer license is not required to meet the pre-requisites in subsection (A) if the person makes application through an agent who meets the criteria listed in A.R.S. § 41-1080(B).

C. The Department shall accept as evidence that an individual is a citizen of the United States or a legal resident alien the documents listed in A.R.S. § 41-1080(A).

D. The Department shall accept a driver license or voter registration card as evidence that an individual is a bona fide resident of Arizona.

E. The Department shall accept the following, provided by or filed with the Arizona Corporation Commission, as evidence that an entity is qualified to do business in Arizona:

1. Corporation file number, or

2. L.L.C. file number.

F. This Section is authorized by A.R.S. §§ 4-202(A) and 41-1080.

History

• Former Rule 1; Former Section R4-15-20 renumbered as Section R4-15-201 without change effective October 8, 1982 (Supp. 82-5). R-19-1-201 recodified from R4-15-201 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996, as required pursuant to Laws 1996, Ch. 307, § 19 (Supp. 96-4). Historical note corrected for clarification. Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-201 recodified to R19-1-314 ; new Section R19-1-201 recodified from R19-1-301 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).