WelcomeLocal Government Training 2017

Today’s Topics1. Review of Liquor License Process 2. Department of Liquor Update3. Revised Liquor License Application Form4. Secure File Transfer Process (SFTP) – get on board!5. Entertainment Districts – laws, maps, and effective dates6. Special Events 7. 2017 Legislative Session – possible licensing impact on local

governments8. Electronic Liquor Licensing & Investigations (ELLI) – a new

computer system for the state

Type of Application

Acceptable Protest

1 New License May Protest Person and

Location2 Person Transfer May Protest

“ONLY” Person

3 Location Transfer

May Protest “ONLY”

Location

Applies to retail licenses only • 6’s• 7’s• 9’s• 10’s

Exempted• Special Events• Restaurants licenses (12

and 11)• Government licenses• Playing area of Golf

Course• Wholesalers• Producers

Liquor store

If the retail liquor license was issued to the location before the church was open and running the retail license stays in place and can be transferred to new owners at the same location "Church" means a building which is

erected or converted for use as a church, where services are regularly convened, that is used primarily for religious worship and schooling and that a reasonable person would conclude is a church by reason of design, signs or architectural or other features.

Closest point of retail premises to closest point of school. If a fenced recreational yard is closer than school it is measured to the fence.

“School” Public or Private with any grades K through 12.

If the retail liquor license was issued to the location before the school was open and running the retail license stays in place and can be transferred to new owners at the same location

"Entertainment district" means a specific contiguous area that is designated an entertainment district by a resolution adopted by the governing body of a city or town, that consists of no more than one square mile, that is no less than one-eighth of a mile in width and that contains a significant number of entertainment, artistic and cultural venues, including music halls, concert facilities, theaters, arenas, stadiums, museums, studios, galleries, restaurants, bars and other related facilities.

LGBAt least 500,000 = 3250,000 to 500,000 = 2Up to 250,000 = 1

If retailer was there first:Person to Person TransfersNew licenses of same type9’s exchanged for 10’s10’s exchanged for 9’s

Entertainment DistrictsA.R.S. §4-207(C)(4) & (D)(2)

The governing body of a city, town or county, on a case-by-case basis, may approve an exemption from the distance restrictions prescribed in this section (300 feet) for a church or a public or private school that is located in an area that is designated an entertainment district by the governing body of that city or town.

The state needs a map of the entertainment district. Map needs to include: 1. a map date, 2. the date the district was established,3. Contact person name, email, phone

Department Update“…government operates at the speed of business.”

1. We support economic growth, and remove procedural obstacles that impede it.

2. We license responsible operators as quickly as the law will allow3. We continuously eliminate unnecessary liquor licensing & compliance

processes by:a) Speed up the process: we simplify agency forms & procedures so nothing

more than what is required by law or that protects public safety is requested of licensees

b) Improve compliance: by making liquor law compliance tools easily accessible & convenient for the public to use (answer person, liquor laws, minimal paperwork and deadlines, etc.)paperwork requirements) we improve compliance

c) Eliminate wasted time: by actively seeking to eliminate unnecessary delays, we ensure licensees are not waiting for us

New Application Form:Speed Up The Process

1. See “Application for Liquor License” handout2. Reduced from 11 to 5 pages

Answer Person:

Improve Compliance

602-542-51411. 8 to 5, M - F2. Sworn Officer

Secure File Transfer Process:Eliminate Wasted Time

Local Government ApprovalA.R.S. §4-201(C)

The governing body of the city, town or county shall then enter an order recommending approval or disapproval within sixty days after filing of the application and shall file a certified copy of the order with the director.

Low of 32 Daysseries 12 (restaurant) & 7 (beer & wine bar)

High of 73/74 Daysseries 10 (beer & wine store)

The Process1. The Department of Liquor will send an email to you using the

email address you provided for your agency. The email address provided by the city/town/municipality must be accessible to their staff in the event of an absence or termination. Good email: sftp@cityofsunshine.gov,

Bad email: BobB@cityofsunshine.gov.

2. The email you receive will come from the SFTP system and willinclude a link to the State of Arizona’s secure site.

3. A user ID and password are not required.

The email you receive will look like this. Click on the 1st link.

The link will take you to this page. 1. Click “select all” 2. Click “download”

4. After seven calendar days, the link will disappear.

5. Within seven calendar days, each local government must email Annie, Aimee or Arlene confirming the application was received by the correct local government.

6. Once the local government makes a recommendation, an email indicating the decision is emailed to the applicant’s CSR at the Department of Liquor. Two completed forms must be attached in this email:

• Affidavit of Posting, and • Recommendation of Approval/Disapproval.

6. Continued…

Send the email ASAP, but no less than 60 days after you receive the SFTP email, because on the date the Department of Liquor sends the SFTP email, the 60-day response period begins. ARS 4-§201(C)

a. If the local government does not have an email address, submit the forms, via fax, to 602-542-5707 attention: “Appropriate CSR.”

(http://www.azliquor.gov/contact_licensing.cfm)

6. Continued…

b. When the local government recommends disapproval, submit the original documents to the department and we’ll forward them to the Arizona State Liquor Board.

c. When the local government provides a no recommendation, the forms may be emailed to the appropriate CSR.

d. When the local government recommends approval with a public protest, the documents may be submitted via email.

7. Questions/Concerns regarding the SFTP process, contact:

• Cynthia Bejar, cynthia.bejar@azliquor.gov, 602-542-9032• Lee Hill lee.hill@azliquor.gov, 602-364-1936

8. Questions/Concerns regarding documents sent via SFTP, contact:• Annie Best, annie.best@azliquor.gov, 602-542-9036• Aimee Rodriguez, aimee.rodriguez@azliquor.gov, 602-542-9067• Arlene Moreno, arlene.Moreno@azliquor.gov, 602-542-9038

9. To sign up for SFTP, contact Aimee

1) Charitable Organization (non-profit)2) Civic Organization (Rotary and

Scholarships)3) Political Party or campaign

committee supporting a candidate or ballot measure

4) Fraternal organization in existence over 5 years

5) Religious Organization (Church)

http://ecorp.azcc.gov/Search

Civic Organization

Fraternal organizations need to be in existence for over 5 years

Each Qualifying Organization

• Only allowed 10 days each year• Monitored via LCS• Can take all ten in a row or spread them out

• $25.00 a day• On-sale (25% of gross alcohol sales to QO)• Auction (75% of gross alcohol sales to QO)

• Auctions limited to 20 cases annually

10

Where can they get the alcohol

• Can purchase from retailer with off-sale privileges (10’s, 9’s, 7’s, 6’s, 13’s, 3’s &18’s)

• Can Purchase from Wholesaler (4’s)• Can receive free from Wholesaler or ProducerCampaign and Ballots cannot have donated

• For auction they can also receive wine as a personal donation

Licensed vs. UnlicensedEvent Location

@Licensed Premises

• Only reviewed by DLLC• No limit on days• May need a letter from

licensee suspending their license

• Can suspend all or part of premises

Event Location @Unlicensed area

• Must go to LGB before DLLC

• No more than 12 days a year for locations not owned by GOVERNMENT

• No limit on number of days for Government owned property

• Filed with DLLC 10 days prior to eventNOTE: if event extends past the

regular licensed premises it is treated like an unlicensed area and must go to LGB first

12

10 days

Resort Property (entire property is licensed)

Special Event areaConference Room

The licensed establishment can suspend all or part of their licensed premises so the Special Event can take place.

NOTE: This application only comes to DLLC for approval

Bar Premises Patio

Parking lot

Blue area indicates the diagram of special event

NOTE: This event would need to go to LBG prior to DLLC

City Park

Special Event Area

NOTE: Must go to LGB and no limit on the number of events they can have.Limit still exists for only 10 Special Events per QO

City Park / Government Controlled Property

If a special event occurs at an otherwise

, the special event licensee shall conduct all dispensing, serving, and selling of spirituous liquor

NOTE: The bartenders and service staff are employees of licensee.

If a special event occurs at the licensed premises of a licensed retailer, the special event licensee shall ensure that one of the following occurs during the special event:

• Four different options• Must indicate which option

on application• Section #5 on application• Each require 25% of Gross

alcohol sales go to QO

•Needs letter from location suspending permanent license

•Special event runs event

Place License in non-use

•Retailer controls event sales only the product they purchased from wholesaler (not donated)

•25% of gross still goes to QO

Dispense and serve all spirituous liquors under

retailer’s license•Both are responsible•Needs letter from location suspending

permanent license•Serve purchased or donated product

Dispense and serve all spirituous liquor under

special event

•Spit the area•Retailer responsible for his area•Special event licensee responsible for his area

Split Premise between special event and

retail location

Section 5:Licensed Locations:

Place the license in non-useOption 1

• If a retailer has a licensed premise and is not expanding from what is already licensed they can place their license in non-use and the

special event would take over.• All alcohol would need to be purchased specifically for special

event, no alcohol from retailer • They can not accept returns of product

• The special event would be responsible for all service of alcohol *****At least 25 % of proceeds goes to charity organizer can get other

75%

Dispense and Serve all spirituous liquor under retailers

licenseOption 2

• This would mean if I hold a liquor license I am going to purchase the alcohol through my retailers license and give 25% of the revenue to the non-profit.

• Operate just like any other day.

• Must purchase product from wholesale

• No Donated Product

• Do not need letter to suspend

Dispense and Serve all spirituous liquor under special

event licenseOption 3

• Still held on a licensed premise • All product sold must be purchased

or donated to the special event• Licensee is going to be the one doing the service of the alcohol, just

operating under special event license• Will need an agreement to suspend license• *****At least 25 % of proceeds goes to charity organizer can get other

75%

This is going to be the box checked for any

special event on unlicensed premise also

Split Premise between special event and retail location

Option 4• Licensed premise split into two areas

• On the retailer section all alcohol served will need to be purchased through a wholesaler• The second area is operating under the special event license. The product sold in that area

can either be purchased by the special event or donated by a wholesaler. • Treated as two licenses the alcohol can’t mingle

• Must have a letter to suspend the portion that is being used as special event.

Section 6• On Site Consumption under one of the above explanations

• Off Site (Auctions) only way alcohol can leave a special event. • Can be via Silent Auction

• Or Live Auction • Both on and off sale.

**** If only off sale privileges need agreement to have special event at licensed location but do not have to suspend privileges to sell alcohol for on premise

consumption.

Issues frequently seen

• Cannot sell to go (nothing leaves unless items won via an auction)

• Cannot have set price, set period of time with unlimited drinks (happy hour violation)

• No raffled alcohol

•Must go to LGB before DLLC• Issued to series 13 and 2W licensees

•Maximum 25 licenses per FW•Maximum 75 days per FW•Tracked in LCS•$15.00 a day

•Can sell for on-premises consumption

•Can sample on premises•Can sell packaged goods to go in original container

•Only product from a series 13 or 2W allowed

Arizona

• Must go to LGB before DLLC• Issued to series 18 and 2D

licensees• Maximum 25 licenses per FW• Maximum 75 days per FW• Tracked in LCS• $15.00 a day

• Can sell for on-premises consumption

• Can sample on premises• Can sell packaged goods to go

in original container• Only product from a series 18

or 2D allowed

Questions???

Lee HillAssistant Director of Licensing

602-364-2936lee.hill@azliquor.gov

Risa William Trade Practice and Training Unit

602-542-9071Risa.Williams@azliquor.gov

Answer Person 602-542-5141