Glossary of Arizona Liquor License Terms
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ACQUISITION OF CONTROL - Acquiring CONTROL of a license or licensee. It is subject to passing a background check by the Department. ARS 4-203(F,H)
ACT OF VIOLENCE - An incident in which one or more of the following occurs:
- Obvious bodily injuries are sustained.
- Disorderly conduct of sufficient intensity to require a peace officer to restore order.
- A weapon is displayed or used.
An "act of violence" must be reported to either the Department or the local law enforcement agency within seven (7) days. ARS 4-101(1), 4-210(A), 4-244(36); Rule R19-1-234
ADVERTISING - Signs and other print material advertising a product and/or an event sponsorship are subject to regulation. Rule R19-1-210, R19-1-250(D)
AGENT - A natural person who is the named representative of and acts on behalf of, or for the benefit of a legally distinct entity such as a club, corporation, limited liability company, partnership, or out of state licensee who holds a liquor license in Arizona. An agent must meet the qualifications of an individual licensee; except that, an agent for an out of state licensee need not be a resident of Arizona. An agent is not synonymous with MANAGER but may be the manager. See MANAGER. ARS 4-202(A)
AGENT CHANGE - Notice of a change of agent shall be filed with the Department within thirty (30) days after such a change. The fee for this is $100.00; except that, if a licensee holds multiple licenses, each additional notice of agent change shall be $50.00. ARS 4-202(C), 4-209(H)
AGGRIEVED PARTY - A person who resides at, owns or leases property within a one mile radius of a premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license no later than sixty days after the filing of the application or fifteen days after action by the local governing body, whichever is later.
ALCOHOL - See SPIRITUOUS LIQUOR.
ARIZONA WINE - Wine that is manufactured or produced from grapes or other agricultural products of which at least seventy-five percent (75%) by volume are grown in Arizona. ARS 4-101.13, 4-244.38
ASSIGNMENT - The transfer to another of one's interest in a right or property. The Director must be notified of any assignment. See PROBATE. ARS 4-209(I), 4-202(B), 4-204(A); R19-1-103
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BACKGROUND - Each applicant and all CONTROLLING PERSONS must furnish background information and a set of fingerprints. No license will be issued to any person who within five (5) years has been convicted of a felony, or convicted of an offense in another state that would be a felony in this state. ARS 4-202(B,D,F), 4-101(3)
BEER - Any beverage obtained by the alcoholic fermentation or infusion of barley, malt, hops or other ingredients, or any combination of them. ARS 4-101(3)
BENEFICIAL INTEREST - An interest in ten percent (10%) or more of the liabilities of the licensee or CONTROLLING PERSON. CONTROL is presumed to exist when a person holds such an interest. ARS 4-101(9), 4-101(10)
BOARD - See LIQUOR BOARD.
BONA FIDE GUEST - A person who is actually a house guest or a person whose presence as a guest is in response to a specific and personal invitation. ARS 4-101(5)
BUSINESS NAME CHANGE - No licensee shall change the name of his licensed business without first notifying the Department on a form prescribed by the DIRECTOR. Rule R19-1-306
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CHANGE OF OWNERSHIP - Any change in the financial set-up of a business establishment which in any way results in a person directly or indirectly becoming a CONTROLLING PERSON. ARS 4-101(10)
CLOSING NOTICE - The licensee must notify the Department (on an Inactive/Active Status Form) if a license is not used for a period of time over thirty (30) consecutive days. The licensee shall notify the Department prior to placing the license back into use. See INACTIVE. Rule R19-1-307
CLOTHING - See NUDITY.
CONTROL - Control is presumed to exist if a person has ownership of ten percent (10%) or more of a license, or if a creditor of the applicant holds a BENEFICIAL INTEREST in ten percent (10%) or more of the liabilities or CONTROLLING PERSONS. ARS 4-101(9)
CONTROLLING PERSON - A person directly or indirectly possessing CONTROL of an applicant or licensee, or holding a beneficial interest in ten percent (10%) or more of the liabilities. ARS 4-101(10)
CO-OP - A retail cooperative of two (2) or more retail licensees. See QUALIFIED RETAIL
COOPERATIVE. ARS 4-222, 4-227; Rule R19-1-303
CREDIT - It is unlawful to sell, directly or indirectly, or to sanction the sale on credit of spirituous liquor, or to give, lend, or advance money or anything of value for the purpose of purchasing spirituous liquor. ARS 4-242
CREDIT CARDS - The purchase of spirituous liquor may be made with credit cards approved by the Director. All major credit cards have been approved. ARS 4-242
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DEAL - To sell, trade, furnish, distribute, or to do business in spirituous liquor. ARS 4-201(A)
DELIVERY - The holder of a retail license with off-sale privileges may deliver spirituous liquor off the premises, provided:
- A record of the delivery is made on a form approved by the Director and retained for two (2) years.
- The deliverer is at least twenty-one (21) years old.
- The receiver is at least twenty-one (21) years old.
- Delivery is made only during LAWFUL HOURS.
- Payment is received at the time of delivery. ARS 4-203(H); Rule R19-1-221
DIRECTOR - The Director of the Department of Liquor Licenses and Control. The Director is appointed by the Governor, to serve concurrent with the Governor. ARS 4-101(12), 4-111(G)
DISPOSAL OF ALCOHOL - See TEMPORARY PERMIT.
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ELECTION DAYS - There is no statute prohibiting the sale of spirituous liquor, during lawful hours, on any election day. The law prohibiting sales on election days was repealed in 1993.
EMPLOYEE - Any person who performs any service on licensed premises on a full-time, part-time or contract basis with the consent of the licensee. This does not include a person exclusively on the premises for musical or vocal performances, for repair or maintenance or for the DELIVERY of goods to the licensee. ARS 4-101(14)
EMPLOYEE LOG - Each ON-SALE RETAILER must maintain, at the licensed premises, a current log of all persons employed at the licensed premises, including each employee's full legal name, date and place of birth, address and responsibilities. ARS 4-119
EQUITABLE INTEREST - All persons having a legal or equitable interest in a spirituous liquor license must file a statement of such interest on a form furnished by the Department. Notice of termination of such interest must be filed in writing. ARS 4-210(J.2); Rule R19-1-302
EXTENSION OF PREMISES - No licensee shall change or alter the physical arrangement of his licensed premises so as to include greater space or the use of different or additional entrances, without having first submitted a diagram of the proposed alterations for prior approval. (This includes outdoor patio tables within the boundaries of the licensee's property.) The diagram must be submitted for approval for a temporary, as well as a permanent, extension of premises. ARS 4-207.01; Rule R19-1-311
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FEES - The established charges for various licensing procedures. These figures are subject to change. Check with the Department for the current amount. ARS 4-101-(18)
FETAL ALCOHOL WARNING SIGNS - See PREGNANCY WARNING SIGNS.
FULL-YEAR FEE - The charge for an original license including the full annual fee. ARS 4-209
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GAMBLING - The act of risking or giving something of value for the opportunity to obtain a benefit from a game or contest of chance or skill. ARS 13-3301
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HALF-YEAR FEE - The charge for an original license including half the annual fee. When a license is issued within six (6) months of the renewal date, the applicant is only charged for half of the annual fee. ARS 4-209
HEARING PROCEDURE - A hearing may be conducted in an informal manner and adherence to the rules of evidence applicable to judicial proceedings is not required. ARS 4-112(F), 41-1062
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IDENTIFICATION - The only acceptable types of identification for the purchase of spirituous liquor are:
- An unexpired driver's license, from any state or Canada, provided it includes a picture of the licensee.
- An Arizona identification license.
- An armed forces identification card.
- A valid passport or border crossing identification card issued by a government, or voter card issued by the government of Mexico which contains a photograph of the person and date of birth. ARS 4-241(A)
IMPORTATION OF ALCOHOL - Each person of LEGAL DRINKING AGE is allowed to bring into this country from another country a maximum of one (1) liter of spirituous liquor in any period of thirty-one (31) days, provided the person has been physically within that foreign country immediately prior to the importation, and the importation coincides with the person's return from that foreign country. ARS 4-244.02
INACTIVE - The licensee must notify the Department (on an Inactive/Active Status Form) if the license is going to be in NON-USE (the license is not used for a period of time over thirty (30) consecutive days.) A licensee who holds a license in non-use status for more than five (5) months shall be required to pay a $100.00 SURCHARGE for each month thereafter. The license automatically reverts to the state after continuous non-use in excess of thirty-six (36) months. The surcharge shall be paid at the time the license is returned to active status. If a licensed location has not been used for two (2) years, the location must re-qualify for a license, and must meet the same qualifications required for issuance of a new license. ARS 4-203(G,N,O); Rule R19-1-101(6), R19-1-307
INTERIM PERMIT - A conditional permit (license) that is used for the purpose of continuing the sale of alcohol while an application is being processed. An interim permit may be granted under the following conditions:
- An application for a transfer, or for an original license, is submitted to the Department.
- The application is for a license of the same series, and at the same premises, and the original license has been surrendered pursuant to rules of the department.
- The DIRECTOR has good cause to believe the licensee is no longer in possession of the licensed premises. The interim permit is usually valid for one-hundred five (105) days. If the application has not been approved before the interim permit expires, it is the responsibility of the applicant to request a second interim permit. ARS 4-203.01; Rule R19-1-308
INDUCEMENTS - No ON-SALE RETAILER shall directly or indirectly offer or furnish any gifts, prizes, coupons, premiums, rebates or assumptions of any tax or similar inducements wherein the purchase or consumption of spirituous liquor is required to receive such gifts, etc. This shall not prohibit on-sale licensees from furnishing ADVERTISING novelties of nominal value, as long as such furnishing is not dependent upon the purchase or consumption of spirituous liquor. Rule R19-1-206
INTERSTATE SHIPPING - No person, corporation, partnership or concern shall ship or transport to any place within this state from any place outside of this state any container, package or parcel containing spirituous liquor, unless the same shall be consigned to a licensed Arizona WHOLESALER. Rule R19-1-204
INTOXICATED - Means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would be obvious to a reasonable person. ARS 4-244(14), 4-311(C)
I.P. - See INTERIM PERMIT.
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LAWFUL HOURS - The sale of SPIRITUOUS LIQUOR is allowed between the hours of 6:00 a.m. -2:00 a.m. Monday - Saturday; and 10:00 a.m. - 2:00 a.m. on Sundays. ARS 4-244(15)
LEGAL DRINKING AGE - The age of twenty-one (21) years or older. ARS 4-101(16)
LICENSE - Means a spirituous liquor license or an INTERIM PERMIT. ARS 4-101(17)
LICENSEE - A person who has been issued a license or an interim permit, or a special event license in accordance with ARS 4-203.02, ARS 4-101(19)
LIQUOR - See SPIRITUOUS LIQUOR.
LIQUOR BOARD - Consists of seven (7) members, appointed by the Governor, for a term of three (3) years. ARS 4-101(4), 4-111
LOCATION TRANSFER - The application process for moving a license from one premises to another within the same county. ARS 4-203
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MANAGER - A natural person approved by the Department having the authority to organize, direct, carry on, CONTROL or otherwise operate a licensed business on a temporary or full-time basis. The person responsible for the day to day business. ARS 4-101(20)
MANAGER'S QUESTIONNAIRE - A form provided by the Department used to grant the authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full-time basis. ARS 4-101(20), 4-202(C); Rule R19-1-307(C)
MINIBAR - Located in the room of a registered guest of a licensed hotel or motel. Spirituous liquor is sold in individual portions, only to registered guests of LEGAL DRINKING AGE and only during normal serving hours. ARS 4-205.06
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NON-ALCOHOLIC BEVERAGE - Any drink that contains less than one-half of one percent (.05%) of alcohol by volume. These beverages are not controlled by the Department and they can be sold to anyone at any time. ARS 4-101(29)
NON-USE - The license is not used for a period of time over thirty (30) consecutive days. See INACTIVE. ARS 4-203(G,N,O); Rule R19-1-101(6), R19-1-307
NUDITY - Nudity, clothing and attire of EMPLOYEES of licensees are subject to regulation. (Cities and counties may further enforce ordinances pertaining to establishments with adult entertainment.) Rule R19-1-213
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OBVIOUSLY INTOXICATED - See INTOXICATED.
OFF-SALE RETAILER - Any person selling SPIRITUOUS LIQUOR in an established retail liquor store, or a retail store selling other commodities. The spirituous liquor is sold only in the original unbroken package, to be consumed off the premises. ARS 4-101(21)
OFF-SITE STORAGE - No licensee shall accept the DELIVERY of or keep in storage any SPIRITUOUS LIQUOR upon any premises other than those on the licensee's own licensed premises without first having obtained written authorization from the DIRECTOR. R19-1-219
ON-SALE RETAILER - Any person operating an establishment where spirituous liquor is sold for consumption on or off licensed premises. ARS 4-101(22)
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PERSON - Includes partnerships, associations, limited liability companies or corporations, as well as a natural person. ARS 4-101(23)
PERSON TO PERSON TRANSFER - The application process for conveying the ownership of a license from one person to another, within the same county. ARS 4-203
PERSONAL REPRESENTATIVE - A person acting as administrator, executor, or guardian of the estate of any licensee; trustee of the bankrupt estate of any licensee; or assignee for the benefit of creditors. Upon receiving permission from the DIRECTOR, the personal representative may sell and DEAL in spirituous liquor for a period not exceeding twenty-four (24) months from the date of the appointment as the licensee's personal representative. See PROBATE. ARS 4-204, 4-202(B), 4-209(I)
PREGNANCY WARNING SIGNS - All ON-SALE and OFF-SALE RETAILERS must post one (1) or more of the following sign (which must be obtained from the Department) "Warning -Drinking alcoholic beverages, including distilled spirits, BEER, coolers and WINE, during pregnancy can cause birth defects." These signs must be posted either within twenty (20) feet of each register or behind the bar. ARS 4-261; Rule R19-1-235
PREMISES - The "licensed premises" means the area from which the licensee is authorized to sell, dispense or serve spirituous liquor, as determined by the diagram on file with the Department. ARS 4-101(24)
PRIMARY SOURCE OF SUPPLY - Means the distiller, producer, owner of the commodity at the time it becomes a marketable product, bottler or exclusive AGENT, or importer, of any such distributor or owner. ARS 4-243.01(E)
PRIMARY PURPOSE - The basic fundamental purpose of a business. For example: the primary purpose of a bowling alley is "bowling" and the sale of spirituous liquor is secondary. ARS 4-201(H), 4-244(23)
PRIMARY USE - See PRIMARY PURPOSE.
PROBATE - No fee will be charged by the Department for an assignment of a liquor license pursuant to the provisions of a will or pursuant to a judicial decree in a divorce proceeding which assigns ownership of a spirituous liquor license to one of the parties. See ASSIGNMENT. ARS 4-209(I), 4-202(B), 4-204(A)
PROLIFERATION - In order to prevent the "proliferation" of spirituous liquor licenses, the Department may protest, and the BOARD may deny a license to a business on the grounds that such business is inappropriate for the sale of spirituous liquor. An inappropriate business is one that cannot clearly demonstrate that the sale of spirituous liquor is directly connected to its PRIMARY PURPOSE. ARS 4-201(H)
PROPRIETARY INTEREST - No licensee shall transfer, assign or make any change in ownership, directly or indirectly, nor shall a partner purchase or otherwise acquire the interest held by any other CONTROLLING PERSON or partner without notifying the DIRECTOR within thirty (30) days and filing an application, questionnaire or other required documentation. Rule R19-1-103
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QUALIFIED RETAIL COOPERATIVE - A retail CO-OP of twenty (20) or more retail licensees. ARS 4-227(C), 4-222; Rule R19-1-303
QUOTA LICENSE - Effective October 31, 1992, in each county having a population of five hundred thousand (500,000) or more persons, the DIRECTOR shall only issue bar, beer and wine bar, or liquor store licenses at the rate of one (1) of each type for each additional five thousand (5,000) person increase over the population in that county as of July 1, 1992.
If there are more applicants than the number of available licenses, a "QUOTA drawing" (a random selection method) will be held to determine which applicants shall be considered.
ARS 4-203(B,K), 4-206, 4-206.01; Rule R19-1-109
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REFILLING BOTTLES - No liquor bottle may be re-used for the packaging of distilled spirits, nor may the original contents, or any portion of such contents, be increased by the addition of any substance. Rule R19-1-207
- RENEWAL - Every license expires annually. The Department issues licenses with staggered renewal dates to distribute the workload throughout the calendar year. A licensee who fails to renew his license on or before the due date, shall pay a penalty of $150.00. A license which is not renewed within sixty (60) days after the due date is considered terminated.
- The Director shall assess (as part of the renewal) a SURCHARGE on all series of licenses. ARS 4-209(J,K,L)
- The Department shall not renew a license for any person who, on the request of the Director, fails to provide a complete financial disclosure statement.
- A liquor license will not be renewed for any person who has been convicted of a felony within five (5) years or convicted of an offense in another state that would be a felony in this state. ARS 4-209(A,C), 4-202(D,F)
RESTAURANT - An establishment that obtains at least forty percent (40%) of its gross revenue from the sale of food, and also meets the requirements and guidelines established by the Director. ARS 4-205.02
RETAIL AGENT - Any person who is authorized to purchase and accept delivery of spirituous liquor for and on behalf of himself and other retail licensees. ARS 4-101(26), 4-222; Rule R19-1-303
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- SAMPLING - May be used only for new products or products unfamiliar to the person receiving the sample.
- At on-premises events or wholesaler's premises, sampling must be limited to twelve (12) ounces of beer or "cooler," six (6) ounces of wine and two (2) ounces of distilled spirits per person per brand.
- At off-sale events sampling must be limited to seventy-two (72) ounces of beer, "cooler" or wine products, and seven-hundred fifty (750) milliliters of distilled spirits. The product must be in sealed, original packages only.
- Exception: A representative of a licensed domestic farm winery may serve and may consume small amounts of the products of the licensed domestic farm winery on the premises of an off-sale retailer or a retailer with off-sale privileges for the purpose of sampling the products of the domestic farm winery. Sales of domestic farm winery products from such licensed retail premises shall be made by the licensed retailer. Rule R19-1-228(R); ARS 4-244.04
SEASONAL LICENSE - When an on-sale retail licensee is open for less than six (6) months in any calendar year, the licensee may designate the periods of operation and a license may be granted for those periods only. The cost will be one-half (=) of the annual renewal fee. ARS 4-209(E)
SELL - Includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in spirituous liquor. ARS 4-101(28)
SIGN LIMITATIONS - No permanent interior or exterior sign, given to a retailer by a supplier, or a sign ADVERTISING spirituous liquor, shall exceed eight-hundred sixty-four (864) square inches. Rule R19-1-210
SPIRITUOUS LIQUOR - Includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, porter, ale or beer, any malt liquor, malt beverage, absinthe or compound or mixture of any of them, or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, and any liquid mixture or preparation which produces intoxication, fruits preserved in ardent spirits and beverages containing more than one-half of one percent (.05%) of alcohol by volume. The Department refers to all alcoholic beverages as spirituous liquor. ARS 4-101(29)
STATE LIQUOR BOARD - See LIQUOR BOARD.
- SURCHARGE - The DIRECTOR shall assess a fee, (as part of the annual renewal) all series of licenses. Monies from this surcharge shall be used by the Department exclusively for the costs of an enforcement program to investigate licensees who have been the subject of multiple complaints. The enforcement program shall respond to complaints against licensees by neighborhood associations, neighborhood civic groups and from municipal and county governments.
- The DIRECTOR shall asses an additional fee, (as part of the annual renew) on all series licenses. ARS 4-209(J,K,L)
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TEMPORARY PERMIT - The BOARD may issue a temporary permit authorizing the disposal, at public auction, of spirituous liquor which has been seized by any agency of this state or the Federal Government. ARS 4-205.05
TRANSFERABLE LICENSE - The only licenses that are transferable are 06 (bar), 07 (beer and wine bar) and 09 (liquor store). These licenses may transfer from one person to another, and from one location to another, provided the new location is in the same county. See PERSON TRANSFER and LOCATION TRANSFER. ARS 4-203
TRUSTEE - See PERSONAL REPRESENTATIVE.
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UNDERAGE - Means under the age of twenty-one (21) years. ARS 4-101(16)
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VENDING MACHINE - A machine that dispenses merchandise through means of coin, token, credit card or other non-personal means of accepting payment for merchandise received. ARS 4-101(31)
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WHOLESALER - Means any person, firm or corporation licensed in this state to sell to retailers and who is engaged in the business of warehousing and distributing brands of various suppliers to retailers generally in the marketing area in which the wholesaler is located. ARS 4-243.01(E.2)
WINE - A product obtained by the fermentation of grapes or other agricultural products containing natural or added sugar or any alcoholic beverages fortified with grape brandy and containing not more than twenty-four percent (24%) alcohol by volume. ARS 4-101(34)
WINE COMMISSION - Established to promote the ARIZONA WINE industry. It is made up of seven (7) members, appointed by the Governor. ARS 3-552
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