concealed weapons; notice; repeal

SB1012 - 572R - S Ver

Senate Engrossed

concealed weapons;
notice; repeal

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1012

AN
ACT

amending
sections 4-210, 4-229, 4-244, 4-246 and 4-311, Arizona
Revised Statutes; relating to concealed weapons.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 4-210, Arizona Revised
Statutes, is amended to read:

START_STATUTE
4-210.

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, 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 paying taxes,
penalties or interest in an amount that exceeds $250 to this state or to any
political subdivision of this state.

6. The licensee or controlling person obtains,
assigns, transfers or sells a spirituous liquor license without complying 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.� The duty to protect a
customer or other person on the licensed premises does not limit the licensee
from using, as necessary, reasonable intervention, reasonable restraint or
reasonable removal of a person from the premises to prevent that person from
injuring other persons on the premises or damaging or disrupting the
premises.
For the purposes of this paragraph, the
presence of a concealed handgun does not create an obligation for a restaurant
licensee or the employee of a restaurant licensee to take reasonable steps to
intervene or to notify law enforcement officials if the licensee reasonably
believes that the concealed handgun is being carried in compliance with section
4-229.

11. 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.

12. 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.

13. There occurs on the licensed premises a serious
act of violence.
�
This paragraph does not
apply to a restaurant licensee if the serious act of violence is the result of
a concealed handgun on the licensed premises unless the licensee or an employee
of the licensee knew the person was carrying a concealed handgun and knowingly
served the person spirituous liquor that was intended for immediate
consumption.
� 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.

14. 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 the death or critical injury of a person and the
injuries would be obvious to a reasonable person.

15. 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 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 investigating 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 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 13 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.

o. Notwithstanding any other law, the
director may not suspend, revoke or refuse to renew a restaurant license or
permit that has been issued pursuant to section 4-205.02 if the basis of the
suspension, revocation or refusal to renew is based on a person carrying a
concealed handgun on the premises of the restaurant licensee. There
is a presumption that a person in possession of a concealed handgun on the
premises of a restaurant licensee is carrying the concealed handgun in compliance
with section 4-229 and No additional verification of COMPLIANCE with section 4-229
is required by a restaurant licensee or an employee of the restaurant licensee.

P. Notwithstanding any other law, The
director may suspend, revoke or refuse to renew a restaurant license or permit
that is issued pursuant to section 4-205.02 for a violation that involves a
concealed handgun on the premises of a restaurant licensee if the director
shows that the restaurant licensee acted with gross negligence and that the
gross negligence was the direct cause of the basis of the complaint and
violation.
END_STATUTE

Sec. 2. Section 4-229, Arizona Revised
Statutes, is amended to read:

START_STATUTE
4-229.

Licenses; concealed carry permits; concealed handguns; posting of
notice

A. A person may carry a concealed
handgun on the premises of a restaurant that is licensed pursuant to section
4-205.02 if both of the following apply:

1. The restaurant licensee has no
other license ATTACHED to the premises.

2. The person has a permit issued
pursuant to section 13-3112 and does not consume spirituous liquor on the
licensed premises.

A.

B. Notwithstanding
subsection A of this section,
a person may carry a concealed handgun on
the premises of a licensee
who

that

is an on-sale retailer unless the licensee posts a sign that clearly
prohibits the possession of weapons on the licensed premises. The
sign shall conform to the following requirements:

1. Be posted in a conspicuous location accessible to
the general public and immediately adjacent to the liquor license posted on the
licensed premises.

2. Contain a pictogram that shows a firearm within a
red circle and a diagonal red line across the firearm.

3. Contain the words, "no firearms allowed
pursuant to A.R.S. section 4-229".

B.

C.
A
person shall not carry a firearm on the licensed premises of an on-sale
retailer if the licensee has posted the notice prescribed in subsection
A

B
of this section.

C.

D.
It
is an affirmative defense to a violation of subsection

B

C
of
this section if:

1. The person was not informed of the notice
prescribed in subsection

A

B
of this section before the
violation.

2. Any one or more of the following apply:

(a) At the time of the violation the notice
prescribed in subsection
A

B
of this section had fallen down.

(b) At the time of the violation the person was not
a resident of this state.

(c) The licensee had posted the notice prescribed in
subsection
A

B
of this section
not more than thirty days before the violation.

D.

E.
The
department
of liquor licenses and control
shall prepare
the signs required by this section and make them available at no cost to
licensees.

E.

F.
The
signs required by this section shall be composed of block, capital letters
printed in black on white laminated paper at a minimum weight of one hundred
ten pound index. The lettering and pictogram shall consume a space
at least six inches by nine inches. The letters constituting the
words "no firearms allowed" shall be at least three-fourths of
a vertical inch and all other letters shall be at least one-half of a
vertical inch.
Nothing shall prohibit
A licensee
from posting

may post
additional signs at
one or more locations on the premises.

F.

G.
This
section does not prohibit a person who possesses a handgun from entering the
licensed premises for a limited time for the specific purpose of either:

1. Seeking emergency aid.

2. Determining whether a sign has been posted
pursuant to subsection
A

B
of
this section.
END_STATUTE

Sec. 3. Section 4-244, Arizona Revised
Statutes, is amended to read:

START_STATUTE
4-244.

Unlawful acts; definition

It is unlawful:

1. For a person to buy for resale, sell or deal in
spirituous liquors in this state without first having procured a license duly
issued by the board, except that the director may issue a temporary permit of
any series pursuant to section 4-205.05 to a trustee in bankruptcy to
acquire and dispose of the spirituous liquor of a debtor.

2. For a person to sell or deal in alcohol for
beverage purposes without first complying with this title.

3. For a distiller, vintner, brewer or wholesaler
knowingly to sell, dispose of or give spirituous liquor to any person other
than a licensee except in sampling wares as may be necessary in the ordinary
course of business, except in donating spirituous liquor to a nonprofit
organization that has obtained a special event license for the purpose of
charitable fundraising activities or except in donating spirituous liquor with
a cost to the distiller, brewer or wholesaler of up to $500 in a calendar year
to an organization that is exempt from federal income taxes under section
501(c) (3), (4), (6) or (7) of the internal revenue code and not licensed under
this title.

4. For a distiller, vintner or brewer to require a
wholesaler to offer or grant a discount to a retailer, unless the discount has
also been offered and granted to the wholesaler by the distiller, vintner or
brewer.

5. For a distiller, vintner or brewer to use a
vehicle for trucking or transporting spirituous liquors unless there is affixed
to both sides of the vehicle a sign showing the name and address of the
licensee and the type and number of the person's license in letters not less
than three and one-half inches in height.

6. For a person to take or solicit orders for
spirituous liquors unless the person is a salesman or solicitor of a licensed
wholesaler, a salesman or solicitor of a distiller, brewer, vintner, importer
or broker or a registered retail agent.

7. For any retail licensee to purchase spirituous
liquors from any person other than a solicitor or salesman of a wholesaler
licensed in this state.

8. For a retailer to acquire an interest in property
owned, occupied or used by a wholesaler in the wholesaler's business, or in a
license with respect to the premises of the wholesaler.

9. Except as provided in paragraphs 10 and 11 of
this section, for a licensee or other person to sell, furnish, dispose of or
give, or cause to be sold, furnished, disposed of or given, to a person under
the legal drinking age

or for a
person under the legal drinking age to buy, receive, have in the person's
possession or consume spirituous liquor. This paragraph does not
prohibit the employment by an off-sale retailer of persons who are at
least sixteen years of age to check out, if supervised by a person on the
premises who is at least eighteen years of age, package or carry merchandise,
including spirituous liquor, in unbroken packages, for the convenience of the
customer of the employer, if the employer sells primarily merchandise other
than spirituous liquor.

10. For a licensee to employ a person under eighteen
years of age to manufacture, sell or dispose of spirituous
liquors. This paragraph does not prohibit the employment by an off-sale
retailer of persons who are at least sixteen years of age to check out, if
supervised by a person on the premises who is at least eighteen years of age,
package or carry merchandise, including spirituous liquor, in unbroken
packages, for the convenience of the customer of the employer, if the employer
sells primarily merchandise other than spirituous liquor.

11. For an on-sale retailer to employ a person
under eighteen years of age in any capacity connected with the handling of
spirituous liquors.� This paragraph does not prohibit the employment by an on-sale
retailer of a person under eighteen years of age who cleans up the tables on
the premises for reuse, removes dirty dishes, keeps a ready supply of needed
items and helps clean up the premises.

12. For a licensee, when engaged in waiting on or
serving customers, to consume spirituous liquor or for a licensee or on-duty
employee to be on or about the licensed premises while in an intoxicated or
disorderly condition.

13. For an employee of a retail licensee, during
that employee's working hours or in connection with such employment, to give to
or purchase for any other person, accept a gift of, purchase for the employee
or consume spirituous liquor, except that:

(a) An employee of a licensee, during that
employee's working hours or in connection with the employment, while the
employee is not engaged in waiting on or serving customers, may give spirituous
liquor to or purchase spirituous liquor for any other person.

(b) An employee of an on-sale retail licensee,
during that employee's working hours or in connection with the employment,
while the employee is not engaged in waiting on or serving customers, may taste
samples of beer or wine of not more than four ounces per day or distilled spirits
of not more than two ounces per day provided by an employee of a wholesaler or
distributor who is present at the time of the sampling.

(c) An employee of an on-sale retail licensee,
under the supervision of a manager as part of the employee's training and
education, while not engaged in waiting on or serving customers may taste
samples of distilled spirits of not more than two ounces per educational
session or beer or wine of not more than four ounces per educational session,
and provided that a licensee does not have more than two educational sessions
in any thirty-day period.

(d) An unpaid volunteer who is a bona fide member of
a club and who is not engaged in waiting on or serving spirituous liquor to
customers may purchase for himself and consume spirituous liquor while
participating in a scheduled event at the club. An unpaid
participant in a food competition may purchase for himself and consume
spirituous liquor while participating in the food competition.

(e) An unpaid volunteer of a special event licensee
under section 4-203.02 may purchase and consume spirituous liquor while
not engaged in waiting on or serving spirituous liquor to customers at the
special event.� This subdivision does not apply to an unpaid volunteer whose
responsibilities include verification of a person's legal drinking age,
security or the operation of any vehicle or heavy machinery.

(f) A representative of a producer or wholesaler
participating at a special event under section 4-203.02 may consume small
amounts of the products of the producer or wholesaler on the premises of the
special event for the purpose of quality control.

14. For a licensee or other person to serve, sell or
furnish spirituous liquor to a disorderly or obviously intoxicated person, or
for a licensee or employee of the licensee to allow a disorderly or obviously
intoxicated person to come into or remain on or about the premises, except that
a licensee or an employee of the licensee may allow an obviously intoxicated
person to remain on the premises for not more than thirty minutes after the
state of obvious intoxication is known or should be known to the licensee for a
nonintoxicated person to transport the obviously intoxicated person from the
premises. For the purposes of this section, "obviously
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 have been obvious to a reasonable person.

15. 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. and 6:00 a.m., except that:

(a) A retailer with off-sale privileges may
receive and process orders, accept payment or package, load or otherwise
prepare spirituous liquor for delivery at any time, if the actual deliveries to
customers are made between the hours of 6:00 a.m. and 2:00 a.m., at which time
section 4-241, subsections A and K apply.

(b) The governor, in consultation with the
governor's office of highway safety and the public safety community in this
state, may issue an executive order that extends the closing time until 3:00
a.m. for spirituous liquor sales in connection with a professional or
collegiate national sporting championship event held in this state.

16. For a licensee or employee to knowingly allow
any person on or about the licensed premises to give or furnish any spirituous
liquor to any person under twenty-one years of age or knowingly allow any
person under twenty-one years of age to have in the person's possession
spirituous liquor on the licensed premises.

17. For an on-sale retailer or an employee of
such retailer to allow a person to consume or possess spirituous liquors on the
premises between the hours of 2:30 a.m. and 6:00 a.m., except that if the
governor extends the closing time for a day for spirituous liquor sales
pursuant to paragraph 15 of this section it is unlawful for an on-sale retailer
or an employee of such retailer on that day to allow a person to consume or
possess spirituous liquor on the premises between the hours of 3:30 a.m. and
6:00 a.m.

18. For an on-sale retailer to allow an
employee or for an employee to solicit or encourage others, directly or
indirectly, to buy the employee drinks or anything of value in the licensed
premises during the employee's working hours. An on-sale
retailer shall not serve employees or allow a patron of the establishment to
give spirituous liquor to, purchase liquor for or drink liquor with any
employee during the employee's working hours.

19. For an off-sale retailer or employee to
sell spirituous liquor except in the original unbroken container, to allow
spirituous liquor to be consumed on the premises or to knowingly allow
spirituous liquor to be consumed on adjacent property under the licensee's exclusive
control.

20. For a person to consume spirituous liquor in a
public place, thoroughfare or gathering. The license of a licensee
allowing a violation of this paragraph on the premises shall be subject to
revocation. This paragraph does not apply to the sale of spirituous
liquors on the premises of and by an on-sale retailer. This
paragraph also does not apply to a person consuming beer or wine from a broken
package in a public recreation area or on private property with permission of
the owner or lessor or on the walkways surrounding such private property or to
a person consuming beer or wine from a broken package in a public recreation
area as part of a special event or festival that is conducted under a license
secured pursuant to section 4-203.02 or 4-203.03.

21. For a person to possess or to transport
spirituous liquor that is manufactured in a distillery, winery, brewery or
rectifying plant contrary to the laws of the United States and this
state. Any property used in transporting such spirituous liquor
shall be forfeited to the state and shall be seized and disposed of as provided
in section 4-221.

22. For an on-sale retailer or employee to
allow a person under the legal drinking age to remain in an area on the
licensed premises during those hours in which its primary use is the sale,
dispensing or consumption of alcoholic beverages after the licensee, or the licensee's
employees, know or should have known that the person is under the legal
drinking age. An on-sale retailer may designate an area of the
licensed premises as an area in which spirituous liquor will not be sold or
consumed
for the purpose of allowing
to
allow
underage persons on the premises if the designated area is
separated by a physical barrier and at no time will underage persons have
access to the area in which spirituous liquor is sold or consumed. A
licensee or an employee of a licensee may require a person who intends to enter
a licensed premises or a portion of a licensed premises where persons under the
legal drinking age are prohibited under this section to exhibit an instrument
of identification that is acceptable under section 4-241 as a condition
of entry or may use a biometric identity verification device to determine the
person's age as a condition of entry. The director, or a
municipality, may adopt rules to regulate the presence of underage persons on
licensed premises provided the rules adopted by a municipality are more
stringent than those adopted by the director. The rules adopted by
the municipality shall be adopted by local ordinance and shall not interfere
with the licensee's ability to comply with this paragraph. This
paragraph does not apply:

(a) If the person under the legal drinking age is
accompanied by a spouse, parent, grandparent or legal guardian of legal
drinking age or is an on-duty employee of the licensee.

(b) If the owner, lessee or occupant of the premises
is a club as defined in section 4-101, paragraph 8, subdivision (a) and
the person under the legal drinking age is any of the following:

(i) An active duty military service member.

(ii) A veteran.

(iii) A member of the United States army national
guard or the United States air national guard.

(iv) A member of the United States military reserve
forces.

(c) To the area of the premises used primarily for
serving food during the hours when food is served.

23. For an on-sale retailer or employee to
conduct drinking contests, to sell or deliver to a person an unlimited number
of spirituous liquor beverages during any set period of time for a fixed price,
to deliver more than fifty ounces of beer, one liter of wine or four ounces of
distilled spirits in any spirituous liquor drink to one person at one time for
that person's consumption or to advertise any practice prohibited by this
paragraph. This paragraph does not prohibit an on-sale
retailer or employee from selling and delivering an opened, original container
of distilled spirits if:

(a) Service or pouring of the spirituous liquor is
provided by an employee of the on-sale retailer. A licensee
shall not be charged for a violation of this paragraph if a customer, without
the knowledge of the retailer, removes or tampers with a locking device on a
bottle delivered to the customer for bottle service and the customer pours the
customer's own drink from the bottle, if when the licensee becomes aware of the
removal or tampering of the locking device the licensee immediately installs a
functioning locking device on the bottle or removes the bottle and lock from
bottle service.

(b) The employee of the on-sale retailer
monitors consumption to ensure compliance with this
paragraph. Locking devices may be used, but are not required.

24. For a licensee or employee to knowingly allow
the unlawful possession, use, sale or offer for sale of narcotics, dangerous
drugs or marijuana on the premises. For the purposes of this
paragraph, "dangerous drug" has the same meaning prescribed in
section 13-3401.

25. For a licensee or employee to knowingly allow
prostitution or the solicitation of prostitution on the premises.

26. For a licensee or employee to knowingly allow
unlawful gambling on the premises.

27. For a licensee or employee to knowingly allow
trafficking or attempted trafficking in stolen property on the premises.

28. For a licensee or employee to fail or refuse to
make the premises or records available for inspection and examination as
provided in this title or to comply with a lawful subpoena issued under this
title.

29. For any person other than a peace officer while
on duty or off duty or a member of a sheriff's volunteer posse while on duty
who has received firearms training that is approved by the Arizona peace
officer standards and training board, a retired peace officer as defined in
section 38-1113 or an honorably retired law enforcement officer who has
been issued a certificate of firearms proficiency pursuant to section 13-3112,
subsection T, the licensee or an employee of the licensee acting with the
permission of the licensee to be in possession of a firearm while on the
licensed premises of an on-sale retailer. This paragraph does
not include a situation in which a person is on licensed premises for a limited
time in order to seek emergency aid and such person does not buy, receive,
consume or possess spirituous liquor. This paragraph does not apply
to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in
conjunction with a meeting, show, class or similar event.

(c) A person with a permit issued pursuant to
section 13-3112 who carries a concealed handgun on the licensed premises
of any on-sale retailer that has not posted a notice pursuant to section
4-229
, subsection B.

(
d
) A person
with a permit issued pursuant to section 13-3112 who carries a concealed
handgun on the premises of a restaurant that is licensed pursuant to section
4-205.02 and who does not consume spirituous liquor on the licensed premises.

30. For a licensee or employee to knowingly allow a
person in possession of a firearm other than a peace officer while on duty or
off duty or a member of a sheriff's volunteer posse while on duty who has
received firearms training that is approved by the Arizona peace officer
standards and training board, a retired peace officer as defined in section 38-1113
or an honorably retired law enforcement officer who has been issued a
certificate of firearms proficiency pursuant to section 13-3112,
subsection T, the licensee or an employee of the licensee acting with the
permission of the licensee to remain on the licensed premises or to serve, sell
or furnish spirituous liquor to a person in possession of a firearm while on
the licensed premises of an on-sale retailer. It is a defense
to action under this paragraph if the licensee or employee requested assistance
of a peace officer to remove such person.�
This paragraph does
not create an obligation for a licensee or an employee of a licensee to
inquire, investigate or otherwise determine whether a person with a concealed
handgun has a permit that has been issued pursuant to section 13-3112.
This
paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) Exhibiting or displaying a firearm in
conjunction with a meeting, show, class or similar event.

(c) A person with a permit issued pursuant to
section 13-3112 who carries a concealed handgun on the licensed premises
of any on-sale retailer that has not posted a notice pursuant to section
4-229
,
subsection B.

(
d
) A person
with a permit issued pursuant to section 13-3112 who carries a concealed
handgun on the premises of a restaurant that is licensed pursuant to section
4-205.02 and who does not consume spirituous liquor on the licensed premises.

31. For any person in possession of a firearm while
on the licensed premises of an on-sale retailer to consume spirituous
liquor. This paragraph does not prohibit the consumption of small
amounts of spirituous liquor by an undercover peace officer on assignment to
investigate the licensed establishment.

32. For a licensee or employee to knowingly allow
spirituous liquor to be removed from the licensed premises, except in the
original unbroken package. This paragraph does not apply to any of
the following:

(a) A person who removes a bottle of wine that has
been partially consumed in conjunction with a purchased meal from licensed
premises if a cork is inserted flush with the top of the bottle or the bottle
is otherwise securely closed.

(b) A person who is in licensed premises that have
noncontiguous portions that are separated by a public or private walkway or
driveway and who takes spirituous liquor from one portion of the licensed
premises across the public or private walkway or driveway directly to the other
portion of the licensed premises.

(c) A licensee of a bar, beer and wine bar, liquor
store, beer and wine store, microbrewery or restaurant that has a permit
pursuant to section 4-205.02, subsection H that dispenses beer only in a
clean container composed of a material approved by a national sanitation
organization with a maximum capacity that does not exceed one gallon and not
for consumption on the premises if:

(i) The licensee or the licensee's employee fills
the container at the tap at the time of sale.

(ii) The container is sealed and displays a
government warning label.

(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 K 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 of the bar, liquor
store or restaurant.

(ii) The container is tamperproof sealed by the
licensee or the licensee's employee and displays a government warning label.

(iii) The container clearly displays the bar'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.

33. For a person who is obviously intoxicated to buy
or attempt to buy spirituous liquor from a licensee or employee of a licensee
or to consume spirituous liquor on licensed premises.

34. For a person who is under twenty-one years
of age to drive or be in physical control of a motor vehicle while there is any
spirituous liquor in the person's body.

35. For a person who is under twenty-one years of
age to operate or be in physical control of a motorized watercraft that is
underway while there is any spirituous liquor in the person's
body. For the purposes of this paragraph, "underway" has
the same meaning prescribed in section 5-301.

36. For a licensee, manager, employee or controlling
person to purposely induce a voter, by means of alcohol, to vote or abstain
from voting for or against a particular candidate or issue on an election day.

37. For a licensee to fail to report an occurrence
of an act of violence to either the department or a law enforcement agency.

38. For a licensee to use a vending machine
for the purpose of dispensing

to dispense
spirituous
liquor.

39. For a licensee to offer for sale a wine carrying
a label including a reference to Arizona or any Arizona city, town or
geographic location unless at least seventy-five percent by volume of the
grapes used in making the wine were grown in Arizona.

40. For a retailer to knowingly allow a customer to
bring spirituous liquor onto the licensed premises, except that an on-sale
retailer may allow a wine and food club to bring wine onto the premises for
consumption by the club's members and guests of the club's members in
conjunction with meals purchased at a meeting of the club that is conducted on
the premises and that at least seven members attend. An on-sale
retailer that allows wine and food clubs to bring wine onto its premises under
this paragraph shall comply with all applicable provisions of this title and
any rules adopted pursuant to this title to the same extent as if the on-sale
retailer had sold the wine to the members of the club and their
guests. For the purposes of this paragraph, "wine and food
club" means an association that has more than twenty bona fide members
paying at least $6 per year in dues and that has been in existence for at least
one year.

41. For a person who is under twenty-one years
of age to have in the person's body any spirituous liquor. In a
prosecution for a violation of this paragraph:

(a) Pursuant to section 4-249, it is a defense
that the spirituous liquor was consumed in connection with the bona fide
practice of a religious belief or as an integral part of a religious exercise
and in a manner not dangerous to public health or safety.

(b) Pursuant to section 4-226, it is a defense
that the spirituous liquor was consumed for a bona fide medicinal purpose and
in a manner not dangerous to public health or safety.

42. For an employee of a licensee to accept any
gratuity, compensation, remuneration or consideration of any kind to either:

(a) Allow a person who is under twenty-one
years of age to enter any portion of the premises where that person is
prohibited from entering pursuant to paragraph 22 of this section.

(b) Sell, furnish, dispose of or give spirituous
liquor to a person who is under twenty-one years of age.

43. For a person to purchase, offer for sale or use
any device, machine or process that mixes spirituous liquor with pure oxygen or
another gas to produce a vaporized product for the purpose of consumption by
inhalation or to allow patrons to use any item for the consumption of vaporized
spirituous liquor.

44. For a retail licensee or an employee of a retail
licensee to sell spirituous liquor to a person if the retail licensee or
employee knows the person intends to resell the spirituous liquor.

45. Except as authorized by paragraph 32,
subdivision (c) of this section, for a person to reuse a bottle or other
container authorized for use by the laws of the United States or any agency of
the United States for the packaging of distilled spirits or for a person to
increase the original contents or a portion of the original contents remaining
in a liquor bottle or other authorized container by adding any substance.

46. For a direct shipment licensee, a farm winery
licensee or an employee of those licensees to sell, dispose of, deliver or give
spirituous liquor to an individual purchaser between the hours of
2:00 a.m. and 6:00 a.m., except that a direct shipment licensee or a
farm winery licensee may receive and process orders, accept payment, package,
load or otherwise prepare wine for delivery at any time without complying with
section 4-241, subsections A and K, if the actual deliveries to
individual purchasers are made between the hours of 6:00 a.m. and
2:00 a.m. and in accordance with section 4-203.04 for direct
shipment licensees and section 4-205.04 for farm winery licensees.

47. For a supplier to coerce or attempt to coerce a
wholesaler to accept delivery of beer or any other commodity that has not been
ordered by the wholesaler or for which the order was canceled. A
supplier may impose reasonable inventory requirements on a wholesaler if the
requirements are made in good faith and are generally applied to other
similarly situated wholesalers that have an agreement with the supplier.
END_STATUTE

Sec. 4. Section 4-246, Arizona Revised
Statutes, is amended to read:

START_STATUTE
4-246.

Violation; classification; fine; civil penalty

A. A person violating
any provision of

this title is guilty of a class 2 misdemeanor unless another classification is
prescribed.

B. A person violating section 4-242.01,
subsection A or section 4-244, paragraph 9, 14, 34, 42 or 44 is guilty of
a class 1 misdemeanor.

C. A person violating section 4-229
, subsection B
or section 4-244, paragraph 31 is guilty of
a class 3 misdemeanor.

D. In addition to any other penalty prescribed by
law, the court may suspend the privilege to drive of a person who is under
eighteen years of age for a period of up to one hundred eighty days on
receiving the record of the person's first conviction for a violation of
section 4-244, paragraph 9.

E. In addition to any other penalty prescribed by
law, a person who is convicted of a violation of section 4-244, paragraph
42 shall pay a fine of at least $500.

F. In addition to any other penalty prescribed by
law, a person who is convicted of a violation of section 4-241,
subsection L, M or N shall pay a fine of at least $250.

G. A person that violates section 4-244,
paragraph 47 is subject to a civil penalty as prescribed in section 4-210.01.

END_STATUTE

Sec. 5. Section 4-311, Arizona Revised
Statutes, is amended to read:

START_STATUTE
4-311.

Liability for serving intoxicated person or minor; exceptions;
definition

A. A licensee is liable for property damage and
personal injuries or is liable to a person who may bring an action for wrongful
death pursuant to section 12-612, or both, if a court or jury finds all
of the following:

1. The licensee sold spirituous liquor either to a
purchaser who was obviously intoxicated, or to a purchaser under the legal
drinking age without requesting identification containing proof of age or with
knowledge that the person was under the legal drinking age.�

2. The purchaser consumed the spirituous liquor sold
by the licensee.

3. The consumption of spirituous liquor was a
proximate cause of the injury, death or property damage.

B. Notwithstanding any other law, a
licensee is not liable for property damage or personal injuries or to a person
who may bring an action for wrongful death pursuant to section 12-612, or both,
if the property damage, personal injury or wrongful death was caused by a
concealed handgun that was carried on the licensed premises of an on-sale
retailer unless a court or jury finds one of the following:

1. The licensee or an employee of the
licensee served spirituous liquor to the person who the licensee or employee of
the licensee knew was carrying a concealed handgun.

2. The
licensee or an employee of the licensee knew that the person was carrying a
concealed handgun in violation of section 4-229 and the licensee or employee of
the licensee failed to notify a law enforcement agency.�

B.

c.
No

A
licensee is
not
chargeable
with knowledge of previous acts by which a person becomes intoxicated at other
locations unknown to the licensee unless the person was obviously intoxicated.�
If the licensee operates under a restaurant license, the finder of fact shall
not consider any information obtained as a result of a restaurant audit
conducted pursuant to section 4-213 unless the court finds the
information relevant.

C.

d.
For
the purposes of subsection A, paragraph 2 of this section, if it is found that
an underage person purchased spirituous liquor from a licensee and such
underage person incurs or causes injuries or property damage as a result of the
consumption of spirituous liquor within a reasonable period of time following
the sale of the spirituous liquor, it shall create a rebuttable presumption
that the underage person consumed the spirituous liquor sold to such person by
the licensee.

D.

e.
For
the purposes of this section, "obviously intoxicated" means
inebriated to such an 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
have been obvious to a reasonable person.
END_STATUTE