Notice2026-03105

Salt River Pima-Maricopa Indian Community of the Salt River Reservation, Arizona; Alcoholic Beverage Control Ordinance

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
February 18, 2026
Effective
February 18, 2026

Issuing agencies

Interior DepartmentIndian Affairs Bureau

Abstract

This notice publishes the amended Salt River Pima-Maricopa Indian Community Alcoholic Beverage Control Ordinance (Ordinance). The Ordinance repeals and replaces the previous liquor ordinance published in the Federal Register on January 21, 2016.

Full Text

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<title>Federal Register, Volume 91 Issue 32 (Wednesday, February 18, 2026)</title>
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[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Notices]
[Pages 7510-7519]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03105]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[267A2100DD/AAKP300000/A0A501010.000000]


Salt River Pima-Maricopa Indian Community of the Salt River 
Reservation, Arizona; Alcoholic Beverage Control Ordinance

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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SUMMARY: This notice publishes the amended Salt River Pima-Maricopa 
Indian Community Alcoholic Beverage Control Ordinance (Ordinance). The

[[Page 7511]]

Ordinance repeals and replaces the previous liquor ordinance published 
in the Federal Register on January 21, 2016.

DATES: This Ordinance shall become effective February 18, 2026.

FOR FURTHER INFORMATION CONTACT: Karrie-Ann Quartz, Acting Tribal 
Government Officer, Western Regional Office, Bureau of Indian Affairs, 
2600 N Central Avenue, 4th Floor Mailroom, Phoenix, AZ 85004, <a href="/cdn-cgi/l/email-protection#6c070d1e1e0509410d0202421d190d1e18162c0e050d420b031a"><span class="__cf_email__" data-cfemail="0a616b7878636f276b6464247b7f6b787e704a68636b246d657c">[email&#160;protected]</span></a>; (480) 744-4992.

SUPPLEMENTARY INFORMATION: Pursuant to the Act of August 15, 1953, 
Public Law 83-277, 67 Stat. 586, 18 U.S.C. 1161, as interpreted by the 
Supreme Court in Rice v. Rehner, 463 U.S. 713 (1983), the Secretary of 
the Interior shall certify and publish in the Federal Register notice 
of adopted liquor ordinances for the purpose of regulating liquor 
transactions in Indian country. On February 12, 2025, the Salt River 
Pima-Maricopa Indian Community of the Salt River Reservation, Arizona 
adopted this amended Alcoholic Beverage Control Ordinance by Ordinance 
No. SRO-588-2025, which regulates and controls the possession, 
consumption, and sale of liquor or alcoholic beverages within the 
boundary of the Community in conformity with the laws of the State of 
Arizona to the extent required by applicable federal law, including 18 
U.S.C. 1161. Enactment of this Ordinance will increase the ability of 
the Community government to control alcoholic beverage sale, 
distribution, and possession while at the same time providing an 
important source of revenue for the continued operation and 
strengthening of the Community government and its delivery of Community 
government services.
    This notice is published in accordance with the authority delegated 
by the Secretary of the Interior to the Assistant Secretary--Indian 
Affairs. I certify that the Salt River Pima-Maricopa Indian Community 
of the Salt River Reservation, Arizona duly adopted the amended Salt 
River Pima-Maricopa Indian Community Alcoholic Beverage Control 
Ordinance by Ordinance No. SRO-588-2025 dated February 12, 2025.

William Henry Kirkland III,
Assistant Secretary--Indian Affairs.

    The Salt River Pima-Maricopa Indian Community Alcoholic Beverage 
Control Ordinance, as amended, shall read as follows:

Salt River Pima-Maricopa Indian Community Alcoholic Beverage Control 
Ordinance

Chapter 14 Alcoholic Beverages and Prohibited Substances

Article I. In General

    Sec. 14-1. Sovereign immunity.
    Nothing in this chapter is intended to be or shall be construed 
as a waiver of the sovereign immunity of the Community.
    Secs. 14-2--14-20. Reserved.

Article II. Alcoholic Beverage Control

Division 1. Generally

    Sec. 14-21. Title; authority; purpose; etc.
    (a) Title. This article shall be known as the Salt River Pima-
Maricopa Indian Community Alcoholic Beverage Control Ordinance.
    (b) Authority. This article is enacted pursuant to the Act of 
August 15, 1953, (Public Law 83-277, 67 stat. 588, 18 U.S.C. 1161) 
and article VII of the Community Constitution.
    (c) Purpose. The purpose of this article and article III of this 
chapter is to regulate and control the possession, consumption, and 
sale of liquor or alcoholic beverages within the boundary of the 
Community. The enactment of an ordinance governing liquor or 
alcoholic beverage possession and sale on the reservation will 
increase the ability of the Community government to control 
alcoholic beverage sale, distribution, and possession while at the 
same time providing an important source of revenue for the continued 
operation and strengthening of the Community government and its 
delivery of Community government services.
    (d) Application of 18 U.S.C. 1161. All acts and transactions 
under this article shall be in conformity with this article and in 
conformity with the laws of the State of Arizona, to the extent 
required by 18 U.S.C. 1161.
    (e) Effective date. This article shall be effective as a matter 
of Community law upon approval by the Community Council and 
effective as a matter of federal law when the Assistant Secretary of 
Indian Affairs certifies and publishes this article in the Federal 
Register.
    Sec. 14-22. Scope.
    This chapter constitutes the entire statutory law of the 
Community in regard to the sale, possession and/or distribution of 
alcoholic beverages within the Community.
    Sec. 14-23. Definitions.
    The following words, terms and phrases, when used in this 
chapter, shall have the meanings ascribed to them in this section, 
except where the context clearly indicates a different meaning:
    Aggrieved party means a person, an applicant, a Community member 
or the Community.
    Alcoholic beverage means beer, wine or other spirituous liquor 
(including but not limited to brandy, whiskey, rum, tequila, mescal, 
gin, porter, ale any malt liquor beverage, absinthe, a compound 
mixture of these or a compound mixture of these with any other 
substance which produces intoxication, fruits preserved in ardent 
spirits and beverages containing more than one-half of one percent 
of alcohol by volume).
    Applicant means any partnership, corporation, limited liability 
company or Community enterprise as well as any natural person that 
is or are requesting approval of a Community liquor license.
    Community means the Salt River Pima-Maricopa Indian Community, a 
federally recognized Indian tribe.
    Controlling person means a person directly or indirectly 
possessing control of an applicant or licensee.
    Control is presumed to exist if a person has the direct or 
indirect ownership of or power to vote ten percent or more of the 
outstanding voting securities of the applicant, licensee or 
controlling person or to control in any manner the election of one 
or more of the directors of the applicant, licensee or controlling 
person. In the case of a partnership, control is presumed to mean 
the general partner or a limited partner who holds ten percent or 
more of the voting rights of the partnership. For the purposes of 
determining the percentage of voting securities owned, controlled or 
held by a person, there shall be aggregated with the voting 
securities attributed to the person the voting securities of any 
other person directly or indirectly controlling, controlled by or 
under common control with the other person, or by an officer, 
partner, employee or agent of the person or by a spouse, parent or 
child of the person. Control is also presumed to exist if a creditor 
of the applicant, licensee or controlling person holds a beneficial 
interest in ten percent or more of the liabilities of the licensee 
or controlling person.
    Director means director of the Community regulatory agency who 
is also the director.
    Gross revenue means the revenue derived from all the sales of 
food and alcoholic beverages on the licensed premises, regardless of 
whether the sales of alcoholic beverages are made under a restaurant 
license issued pursuant to this article.
    Hearing officer means a person designated by the Community 
manager to hear an appeal of a decision made by the director.
    License means a license issued pursuant to the provisions of 
this article by the Community.
    Licensed premises or premises means a place from which a 
licensee is authorized to sell alcoholic beverages under the 
provisions of this article.
    Licensee means any partnership, corporation, limited liability 
company or Community enterprise, as well as any natural person who 
has been authorized to sell alcoholic beverages for consumption at a 
particular premises by the Community.
    Minibar means a closed container, either refrigerated in whole 
or in part or nonrefrigerated, where access to the interior is 
restricted by means of a locking device which requires the use of a 
key, magnetic card or similar device.
    Office means the alcohol beverage control office or persons 
within the Community regulatory agency that regulate alcoholic 
beverage and/or liquor sales and distribution transactions within 
the Community as created in section 14-24.
    Off-sale retailer means any person operating a bona fide 
regularly established

[[Page 7512]]

retail liquor store selling alcoholic beverages and any established 
retail store selling commodities other than alcoholic beverages that 
is engaged in the sale of alcoholic beverages only in the original 
unbroken package, to be taken away from the premises of the retailer 
and to be consumed off the premises.
    On-sale retailer means any person operating an establishment 
where alcoholic beverages are sold in the original container for 
consumption on or off the premises or in individual portions for 
consumption on the premises.
    Person means any partnership, corporation, limited liability 
company, or Community enterprise, as well as any natural person.
    Possess means to have any item or substance within the control 
of a person or to have any alcoholic beverage within a person's 
body, regardless of where the consumption may have taken place.
    Private residence means a place where an individual or a family 
maintains a habitation.
    Public patio enclosure means a contiguous patio or a patio that 
is not contiguous to the remainder of the licensed premises if the 
noncontiguous patio is separated from the remainder of the premises 
or licensed premises by a public or private walkway or driveway not 
to exceed 30 feet, subject to the rules that the office may adopt to 
establish criteria for a noncontiguous premises.
    Public place means any place that is not a private residence, 
including within operational motor vehicles or nonresidential 
structures, and not licensed, pursuant to this article, for the 
possession of alcoholic beverages.
    Restaurant (excluding the provisions in this article that govern 
casino or golf course licenses) means an establishment that derives 
at least 40 percent of its gross revenue from the sale of food, 
including sales of food for consumption off the licensed premises if 
the amount of these sales included in the calculation of gross 
revenue from the sale of food does not exceed 15 percent of all 
gross revenue of the restaurant.
    Sec. 14-24. Office of alcohol beverage control; director.
    (a) Office. The office of alcohol beverage control (office) is 
hereby established within the Community's regulatory agency. The 
director of the Community regulatory agency is hereby designated as 
the alcohol beverage control officer (director) who will be 
responsible to the Community manager and whose duties may be 
delegated from time to time to other employees of the office. All of 
the positions of the office will be filled and conducted in 
accordance with the Community's established policies and procedures.
    (b) Authority of the office. The office shall have the following 
authority:
    (1) Grant and deny applications in accordance with this article;
    (2) Adopt rules and regulations to implement this article;
    (3) Hold hearings and make determinations on whether to grant or 
deny licenses;
    (4) Employ necessary personnel;
    (5) Maintain a public record open to the public containing the 
names and addresses of each licensee and any person who is a 
controlling person;
    (6) Liaison between the office and the Community police 
department to ensure enforcement of this article and article III of 
this chapter and any relevant regulations issued pursuant to this 
chapter;
    (7) Investigate and enforce compliance of this article and 
article III of this chapter and any relevant regulations that also 
pertain to the selling of alcoholic beverages within the Community; 
and
    (8) Inspect, during the hours in which a premises is occupied, 
the premises of a licensee.
    (9) To conduct a state and federal criminal history check 
pursuant to Arizona Revised Statute 41-1750 and Public Law 92-544 on 
all applicants for a license under this chapter; and that all 
applicants must submit a full set of fingerprints to the office who 
shall submit the fingerprints to the Arizona Department of Public 
Safety, who may then exchange the fingerprint data with the Federal 
Bureau of Investigation.
    (c) Inspection of premises, enforcement and investigations. The 
office shall receive complaints of alleged violations of this 
article and article III of this chapter and is also responsible for 
the investigation of allegations of violations of, or noncompliance 
with, the selling of alcoholic beverages pursuant to this article 
and article III of this chapter or any relevant regulations issued 
pursuant to this chapter.
    (1) The office shall establish a separate investigation unit 
which has as its responsibility the investigation of compliance 
within this article.
    (2) A complete record of all applications, actions taken 
thereon, and any licenses issued shall be maintained by the office 
and shall be open for public inspection at the office.
    (3) Office staff that are authorized to investigate pursuant to 
this article shall have the authority to investigate and issue a 
notice of a violation of noncompliance with this chapter.
    (4) The office or the Community police department may cite a 
licensee to appear before the office or the hearing officer for a 
hearing upon allegations of violations of this article and article 
III of this chapter or any relevant law or regulation issued 
pursuant to this chapter.
    (5) The office or the director may take evidence, administer 
oaths or affirmations, issue subpoenas requiring attendance and 
testimony of witnesses, cause depositions to be taken and require by 
subpoena duces tecum for the production of books, papers and other 
documents which are necessary for the enforcement of this article 
and article III of this chapter.
    (6) The office, including the director, may, in enforcing the 
provisions of this article, inspect the premises.
    Sec. 14-25. Lawful commerce, possession or consumption.
    (a) Alcoholic beverages may be possessed and consumed only at 
private residences, and licensed premises pursuant to this chapter, 
and may be transported in unbroken containers to and from such 
places. For purposes of this provision, ``unbroken container'' 
includes when a person removes a bottle of wine that has been 
partially consumed in conjunction with a purchased meal from a 
licensed premises if a cork is inserted flush with the top of the 
bottle or the bottle is otherwise securely closed.
    (b) Wine may be purchased, stored, distributed and consumed in 
connection with the bona fide practice of a religious belief or as 
an integral part of a religious exercise of an organized church and 
in a manner not dangerous to public health or safety.
    (c) The purchase, storage and use of alcoholic beverages solely 
for the purpose of cooking or preparing food and in a manner not 
dangerous to public health and safety are authorized.
    (d) Alcoholic beverages may also be served and consumed at a 
premises licensed pursuant to a business ancillary license if the 
following conditions have been met:
    (1) A business serves alcoholic beverages as part of a cooking 
demonstration or cooking class; or
    (2) Is an accredited school offering degree or certificate 
programs in the culinary arts.
    (e) Alcoholic beverages may be sold at licensed premises only 
under the conditions under which the license is issued.
    (f) Alcoholic beverages may be possessed and consumed (and not 
sold) at a private event of a bona fide commercial entity who is a 
lessee within the Community's designated area as defined by section 
14-54, one time a calendar year, if the following conditions are 
met:
    (1) The host is serving alcohol beverages free of charge and 
there is no fee to be admitted into the private event;
    (2) The event is private and only open to a known group of 
guests (and not the public);
    (3) The host is a commercial tenant within the Community;
    (4) The host has a business license with the Community;
    (5) The host notifies the office at least 30 days prior to the 
event by the filing of a notification form as prescribed by the 
office, and that provides specifics as to the private event, agrees 
in writing to follow all applicable Community laws and Arizona State 
alcoholic beverage laws, and also agrees to assume all risk and 
liability for any damages that may occur as a result of this event;
    (6) The office is aware in writing of the event at least 30 days 
prior to it being held and is able to provide notice of the event to 
the SRPD and any other necessary departments; and
    (7) The host agrees to obtain a special use permit or other 
licensing depending on the size and nature of the event (including 
any additional costs to provide police or other staffing), at the 
direction of the office.
    Secs. 14-26-14-53. Reserved.

Division 2. Licenses

    Sec. 14-54. Designated area.
    The director may issue a license for premises located within the 
designated area identified in the February 12, 2025, approved SRPMIC 
Liquor Licensing Area Corridor (attached to the ordinance from which 
this article is derived, and incorporated herein by reference).

[[Page 7513]]

    (1) On February 12, 2025, the Council approved an updated SRPMIC 
Liquor Licensing Area Corridor and it shall be kept with the 
official records of the Community in the office of the council 
secretary.
    (2) Upon majority vote by the Community Council and publication 
in the Community's newspaper, the Community Council may amend the 
February 12, 2025, approved SRPMIC Liquor Licensing Area Corridor 
and any future amendments thereof.
    Sec. 14-55. Premises that may be licensed.
    Licenses may only be issued for premises listed and defined as 
follows:
    (1) Hotel-motel license.
    a. The director may issue a hotel-motel license to any hotel or 
motel that operates either a restaurant or a bar in the hotel or 
motel, provided that the applicant is otherwise qualified to hold a 
license.
    b. The holder of a hotel-motel license is authorized to sell and 
serve alcoholic beverages solely for consumption on the licensed 
premises. For the purpose of this section, the term ``licensed 
premises'' includes all minibars located within guestrooms, 
accommodations, public bar rooms, outdoor patio enclosures, outdoor 
pool areas, public restaurant rooms, facilities, areas, and private 
banquet or meeting rooms located within the hotel-motel premises or 
connected to the hotel-motel premises.
    (2) Casino license.
    a. The director may issue a casino license to any casino 
authorized to operate as a casino by the Community.
    b. The holder of a casino license is authorized to sell and 
serve alcoholic beverages solely for consumption on the licensed 
premises. For the purpose of this section, the term ``licensed 
premises'' includes all public bar rooms, gaming areas, private 
banquet or meeting rooms, restaurants, other food service 
facilities, outdoor patio enclosures, and land contiguous to the 
casino facility.
    (3) Golf course clubhouse license.
    a. The director may issue a golf course clubhouse license to any 
golf course clubhouse.
    b. The holder of a golf course clubhouse license is authorized 
to sell and serve alcoholic beverages solely for consumption on the 
licensed premises and only to patrons of the golf course facility. 
For the purpose of this section, the term ``licensed premises'' 
includes all restaurants and other food service facilities, private 
banquet or meeting rooms, bar rooms, outdoor patio enclosures, 
lounge facilities within the golf course clubhouse, and golf course 
enclosure. For purposes of this section, the term ``golf course 
clubhouse'' means a clubhouse located on a golf course. For purposes 
of this section, the term ``golf course enclosure'' means 
substantially undeveloped land, including amenities such as 
landscaping, irrigation systems, paths and golf greens and tees, 
that may be used for golfing or golfing practice by the public or by 
members and guests of a private club.
    (4) Restaurant license.
    a. The director may issue a restaurant license to any restaurant 
that is regularly open for the serving of food to guests for 
compensation and that has suitable kitchen facilities connected with 
the restaurant for keeping, cooking and preparing foods required for 
ordinary meals.
    b. The restaurant shall be regularly open for the serving of 
food to guests for compensation and is an establishment which 
derives at least 40 percent of its gross revenue from the sale of 
food (which includes nonalcoholic beverages), including sales of 
food for consumption off the licensed premises if the amount of 
these sales included in the calculation of gross revenue from the 
sale of food does not exceed 15 percent of all gross revenue for the 
restaurant. For purposes of meeting the gross revenue requirements, 
a restaurant license applicant may request that the license premises 
include less than the entire establishment in which the applicant 
operates its business; provided that alcoholic beverages are 
restricted to the licensed premises.
    c. The holder of a restaurant license may sell and serve 
alcoholic beverages solely for consumption on the licensed premises. 
For the purpose of this subsection, the term ``licensed premises'' 
may include rooms, areas or locations in which the restaurant 
normally sells or serves alcoholic beverages pursuant to regular 
operating procedures and practices and that are contiguous to the 
restaurant or a public patio enclosure. For the purposes of this 
subsection, a restaurant licensee must submit proof of tenancy or 
permission from the landlord for all property to be included in the 
licensed premises.
    d. The holder of a restaurant license shall be required upon 
request of the office to submit an audit of the records for the 
premises to demonstrate compliance with subsection (4)b of this 
section. An establishment that averages at least 40 percent of its 
gross revenue from the sale of food during a 12-month audit period 
shall be deemed to comply with the gross revenue requirements of 
subsection (4)b of this section. The 12-month audit period shall 
fall within the 16 months immediately preceding the beginning of the 
audit. The office shall not require an establishment to submit to 
such an audit more than once a year after the initial 12 months of 
operation. When conducting an audit, the office shall use generally 
accepted auditing standards.
    1. If the audit reveals that the licensee did not meet the 
definition of a restaurant as prescribed in subsection (4)b of this 
section and the percentage of food sales was less than 37 percent, 
then the office shall deem the license to have been revoked or the 
office may recommend that the licensee be granted an additional 12-
month period to attempt to increase their food percentage to at 
least 37 percent.
    2. If the audit reveals that the licensee did not meet the 
definition of a restaurant as prescribed in subsection (4)b of this 
section and the percentage of food sales was more than 37 percent 
and less than 40 percent, then the office shall allow the licensee 
to continue to operate under the restaurant license for a period of 
one year, during which the licensee shall attempt to increase the 
food percentage to at least 40 percent. If the licensee does not 
increase the percentage of food sales to at least 40 percent, then 
the license issued pursuant to this article shall be revoked or the 
office may recommend that the licensee be granted an additional 12-
month period to attempt to increase their food percentage to at 
least 40 percent.
    (5) Government license.
    a. The director may issue a government license to any Community 
governmental entity or commercial enterprise upon application by the 
governing board of that Community governmental or commercial 
enterprise entity for the sales of alcoholic beverages for 
consumption.
    b. The holder of a government license may sell and serve 
alcoholic beverages solely for consumption on the licensed premises. 
The holder of the government license may sell and serve alcoholic 
beverages for consumption on the premises for which the license is 
issued, including a stadium.
    c. Any agreement entered into by a Community governmental entity 
to a concessionaire to sell or serve alcoholic beverages pursuant to 
this subsection shall contain the following provisions:
    1. A provision that fully indemnifies and holds harmless the 
Community and any of its agencies, boards, commissions, officers, 
and employees against any liability for loss or damage incurred 
either on or off Community property and resulting from the negligent 
serving of alcoholic beverages by the concessionaire or the 
concessionaire's agents or employees.
    2. A provision that either posts a surety bond in favor of the 
Community in an amount determined by the Community to be sufficient 
to indemnify the Community against the potential liability or that 
names the Community as an additional insured in a liability policy 
that provides sufficient coverage to indemnify the Community as 
determined by the Community.
    (6) Business ancillary license and/or special event license.
    a. The director may issue a business ancillary license to a 
business that serves alcoholic beverages as part of a cooking 
demonstration or cooking class; or a school offering degree programs 
in the culinary arts.
    1. A business ancillary license shall be issued pursuant to the 
process prescribed in sections 14-56 through 14-68; provided that 
certain provisions, as determined by the director (in a written 
form), may not be applicable as a business ancillary licensee is 
generally considered a social host and not engaged in the selling of 
alcoholic beverages.
    2. A business ancillary license shall only be available to a 
business that is not in the primary business of selling food or 
alcohol.
    3. The holder of a business ancillary license is authorized to 
serve alcoholic beverages solely for consumption on the licensed 
premises and only to guests of the business or in the case of a 
school, to students enrolled at the school.
    4. The holder of a business ancillary license shall not be 
authorized to sell alcoholic beverages separately or by the drink.
    b. The director may issue a special event license for a business 
for the purpose of holding a bona fide business-related networking 
function for its customers, clients, employees or business partners; 
or

[[Page 7514]]

for the purpose of a bona fide charitable, civic, or religious 
organization to hold a special fundraising event; provided that any 
license issued as a special event license meets the following 
conditions:
    1. A special event license is a temporary license and authorizes 
the sale of liquor for a limited time in the Community;
    2. An applicant may be issued a special event license for no 
more than ten consecutive days per license during the course of a 
calendar year;
    3. An unlicensed premises may hold up to 12 special events per 
calendar year, and a licensed location or government owned location 
may hold unlimited events per year;
    4. A special event license shall only be available to a business 
that is not in the primary business of selling food or alcohol;
    5. Special event licenses shall only be issued if it also meets 
the requirements of the Arizona liquor law requirements.
    c. A person applying for a special event license must make 
application to the office at least 45 days prior to the special 
event. The director in his or her administrative discretion, without 
a public hearing, shall consider the following factors in 
determining whether to approve or disapprove the special event 
license:
    1. Whether the event will be open to the public;
    2. The criminal history of the applicant;
    3. The nature of the event;
    4. The security measures taken by the applicant;
    5. The type of alcoholic beverages to be sold at the event;
    6. How the alcoholic beverages will be served at the event;
    7. Whether the applicant, within the past three years, has held 
an event that created a Community disturbance or whether the event 
site has generated Community disturbance complaints;
    8. The potential for noise, traffic, lack of parking, and other 
related concerns;
    9. The length of the event;
    10. The sanitary facilities available to the participants;
    11. The anticipated number of participants at the event;
    12. The availability of the Community's police and fire 
departments to provide coverage at the event (if deemed reasonably 
necessary by the Community);
    13. Proof of adequate insurance (as deemed reasonably necessary 
by the director) by the applicant for this event; and
    14. The nature of the sound amplification of the event.
    d. In addition to the special event license issued pursuant to 
this article, the applicant must obtain a special use permit from 
the Community, and pay for any associated costs, including any 
overtime costs, for police, fire, or other Community departments 
whose presence is determined necessary, by the Community, for the 
special event.
    (7) Sports stadium/entertainment venue. The director may issue a 
sport stadium/entertainment venue license to any professional sports 
stadium or arena, or an entertainment venue (bowling alley, concert 
hall, theatre, etc.) that is otherwise qualified to hold a license.
    The holder of a sport stadium/entertainment venue license is 
authorized to sell and serve alcoholic beverages solely for 
consumption on the licensed premises. For the purposes of this 
section, the term ``licensed premises'' includes all public areas of 
the venue, food service facilities, outdoor patio enclosures, 
outdoor pool areas, and private banquet or meeting rooms.
    (8) Retail License. The director may issue a retail license to 
an off-sale retailer to sell packaged liquor within the Community 
pursuant to the requirements of this ordinance, and the following:
    (a) Sells alcoholic beverages as a liquor store only as long as 
it has a square footage of at least 10,000 square feet or above at 
the premises, and does not have a ``drive-thru window'' component 
for the sale of alcoholic beverages (a ``drive-thru window'' does 
not include internet based shopping services that a grocery store or 
a liquor store may use to allow for ``drive up and pick up'' 
services for groceries or alcoholic beverages); or
    (b) Sells alcoholic beverages as a part of a grocery store, 
convenience store, drug store or big box retailer as long as it does 
not have a ``drive-thru window'' component for the sale of alcoholic 
beverages (a ``drive-thru window'' does not include internet based 
shopping services that a grocery store or a liquor store may use to 
allow for ``drive up and pick up'' services for groceries or 
alcoholic beverages).
    Sec. 14-56. Applicant and licensee qualifications.
    (a) Every alcoholic beverage licensee shall be a citizen of the 
United States.
    (b) The office shall require an applicant and may require any 
controlling person to furnish background information and to submit a 
full set of fingerprints to the office.
    (c) Each applicant or licensee shall designate a person who 
shall be responsible for managing the premises. The manager shall be 
a natural person and shall meet all the requirements for licensure 
pursuant to this article.
    (d) No license shall be issued to any person who, within one 
year before application, has had a license revoked in any 
jurisdiction.
    (e) No license shall be issued to or renewed for any person who, 
within five years before the application, has been convicted of a 
felony in any jurisdiction; provided that for a conviction of a 
corporation, LLC or partnership to serve as a reason for denial, 
conduct which constitutes the offense and was the basis for a felony 
conviction must have been engaged in, authorized, solicited, 
commanded or recklessly tolerated by the directors of the 
corporation, LLC or partnership or by a high managerial agent acting 
within the scope of employment. For purposes of this subsection, the 
term ``high managerial agent'' means an officer, partner or member 
of a corporation, LLC or partnership in a position of comparable 
authority with respect to the formulation of company policy.
    (f) No corporation shall be issued a license or a renewal of 
that license unless on file with the office is a list of all of the 
corporation's officers and directors and any stockholders who owns 
ten percent or more of the corporation. The office shall not issue 
or renew a license for any person who at the request of the director 
fails to provide the office with complete financial disclosure 
statements indicating all financial holdings of any controlling 
person. Provided that, publicly traded companies are exempt from the 
requirements set forth in this subsection.
    (g) An alcoholic beverage license shall be issued only after a 
satisfactory showing of the capability, qualifications and 
reliability of the applicant; and that the public convenience 
requires and that the best interest of the Community will be 
substantially served by the issuance of the license.
    (h) The license shall be to sell or deal in alcoholic beverages 
only at the place and in the manner provided in the license. A 
separate license shall be issued for each specific premises.
    (i) All applications for an original license, the renewal of a 
license or the transfer of a license pursuant to this article shall 
be filed with and determined by the director, unless an appeal is 
filed and then the hearing officer will approve or disapprove of 
such license.
    (j) A person who assigns, surrenders, transfers or sells control 
of a business which has an alcoholic beverage license shall notify 
the office within 15 business days after the assignment, surrender, 
transfer or sale. An alcoholic beverage license shall not be leased 
or subleased. A concessional agreement is not considered a lease or 
a sublease in violation of this article.
    (k) If a person other than those persons originally licensed 
acquires control of a license or licensee, the person shall file 
notice of the acquisition with the office within 15 business days 
after such acquisition of control. All officers, directors or other 
controlling persons shall meet the qualifications for licensure as 
prescribed in this article. On the request of the licensee, the 
director shall conduct a preinvestigation prior to the assignment, 
sale or transfer of control of a license or licensee; the reasonable 
costs of such investigation shall be borne by the applicant. The 
preinvestigation shall determine whether the qualifications for 
licensure as prescribed by this article are met.
    Sec. 14-57. Application.
    A person desiring a license to sell or deal alcoholic beverages 
shall make application to the office on a form prescribed by the 
office.
    Sec. 14-58. Notice.
    Within 30 days of receipt of the license application, the office 
shall hold a hearing on such application. Upon receipt of such 
application, the office shall post a copy of the completed 
application in a conspicuous place on the front of the premises 
where the business is proposed to be conducted and in this posting, 
the notice shall contain the following provisions:
    ``A hearing on a liquor license application on behalf 
of____shall be held at the following date, time and 
location____[insert date, time and address]. Any person owning or 
leasing property within a one-mile radius may contact the office in 
writing to register as a protestor. To request information regarding 
procedures before the office and notice of any office hearings 
regarding this application, contact the office at____ [insert office 
contact information].''

[[Page 7515]]

    Sec. 14-59. Applicant's burden.
    Licenses will be issued by the director after a hearing and upon 
a determination by the director that the following criteria have 
been met by a satisfactory showing by the applicant that:
    (1) The public convenience requires the issuance of the license; 
and
    (2) The best interests of the Community will be substantially 
served by the issuance of the license.
    Sec. 14-60. Evidence.
    Evidence that may be considered when determining whether the 
public convenience requires and the best interest of the Community 
is substantially served by the issuance of a license are the 
following:
    (1) Petitions and testimony from persons in favor of or opposed 
to the issuance of a license who reside in the Community, or own or 
lease property located within the Community that is in close 
proximity to the proposed premises.
    (2) The number and series of licenses in close proximity.
    (3) Evidence that all necessary licenses and permits have been 
obtained from the state and all other governing bodies.
    (4) The residential and commercial population of the Community 
and its likelihood of increasing, decreasing or remaining static.
    (5) The Community's residential and commercial population 
density in close proximity.
    (6) Evidence concerning the nature of the proposed business, its 
potential market, and its likely customers.
    (7) Effect on vehicular traffic in close proximity.
    (8) The compatibility of the proposed business with other 
activity in close proximity.
    (9) The effect or impact of the proposed premises on businesses 
or the residential neighborhood whose activities might be affected 
by granting the license.
    (10) The history for the past five years of liquor violations 
and reported criminal activity at the proposed premises provided 
that the applicant has received a detailed report(s) of such 
activity at least 20 days before the hearing.
    (11) Comparison of the hours of operation of the proposed 
premises to the existing businesses in close proximity.
    (12) Proximity to licensed child care facilities and K through 
12 schools.
    Sec. 14-61. Intentionally left blank.
    Sec. 14-62. Public hearing.
    The director shall determine after a hearing has been held 
whether and under what conditions a license shall be issued.
    (1) The hearing shall be announced by notice in the Community 
newspaper.
    (2) Notice shall be given no less than ten business days prior 
to such hearing.
    (3) The hearing shall be conducted by the director in an 
informal manner with rules adopted pursuant to this article 
calculated to ensure full disclosure of all relevant information.
    (4) Professional attorneys may be permitted to represent parties 
at any administrative hearing before the office, the director or the 
hearing officer pursuant to this article.
    (5) The director shall hear all relevant issues and, within 30 
days after the hearing is concluded, shall issue a written decision.
    (6) The decision will contain the findings of fact relied on by 
the director for the decision as well as the decision.
    (7) The applicant shall be provided notice of the hearing via 
standard and certified mail.
    (8) The director shall enter an order recommending approval or 
disapproval of the license within 60 days after the filing of the 
application.
    Sec. 14-63. Appeals.
    A decision of the director may be appealed by any aggrieved 
party to the Community manager. The Community manager shall appoint 
a hearing officer to hear the appeal. The hearing officer shall be a 
member in good standing of the Arizona state bar and shall have 
previous experience serving in a judicial capacity.
    (1) Appeal process. Appeals of any decision of the director 
shall follow this process:
    a. A notice of appeal shall be filed with the Community manager 
within 15 business days after notice of the decision by the 
director.
    b. The notice of appeal shall state all the grounds for appeal 
relied on by the appellant.
    c. The appellee may file a short written response to the grounds 
for appeal within 15 business days after the notice of appeal is 
filed.
    d. The notice of appeal and response shall be mailed to the 
opposing party within two business days after it was filed.
    e. If the appellant is the applicant for the license, the 
appellee shall in all cases be the director. If the appellant is a 
person who filed a notice of appearance or the Community, the 
appellee shall in all cases be the applicant.
    f. In the event there is more than one notice of appeal filed, 
the appeals shall be consolidated and only one response shall be 
filed to the consolidated appeals.
    (2) Status of initial determination. The decision of the 
director shall be suspended until a final determination of the 
appeal is issued by the hearing officer.
    (3) Grounds for appeal.
    a. An aggrieved party may appeal any final decision of the 
director regarding applications or licenses based on a contention 
that the decision was any of the following:
    1. Founded on or contained errors of law;
    2. Unsupported by any competent evidence as disclosed by the 
record;
    3. Materially affected by unlawful procedures;
    4. Based on a violation of any Community constitutional 
provision; or
    5. Arbitrary or capricious.
    b. The hearing officer shall conduct a hearing and may accept 
any relevant and material evidence and testimony.
    c. An official record of the hearing shall be prepared. Persons, 
at their own costs, may request that the hearing record be 
transcribed and may be provided a copy of the transcribed record.
    d. The hearing officer shall determine whether the decision is 
supported by the findings of fact and the law.
    e. The hearing officer may affirm, reverse or modify any 
decision issued by the director.
    f. The hearing officer's decision shall be final and not subject 
to rehearing, review or appeal.
    Sec. 14-64. Terms; fees.
    Licenses shall be issued for a period of one year and are 
renewable on application to the office which will renew upon payment 
of the appropriate fee.
    (1) A licensee who fails to renew the license on or before the 
due date shall pay a penalty of $500.00.
    (2) If the due date falls on a Saturday, Sunday or a legal 
holiday, the renewal shall be considered timely if it is received by 
the office on the next business day.
    (3) A licensee who fails to renew the license on or before the 
due date may not sell, purchase, or otherwise deal in alcoholic 
beverages until the license is renewed.
    (4) A license that is not renewed within 60 days after its due 
date is deemed terminated. The director may renew the terminated 
license if good cause is shown by the licensee as to why the license 
was not renewed on its due date or the 60 days following the due 
date.
    (5) Issuance fees for an original license and the renewal 
thereof shall be the following (excluding applicable surcharges):

------------------------------------------------------------------------
                Licenses                     Original         Renewal
------------------------------------------------------------------------
a. Hotel-motel..........................       $2,000.00         $500.00
b. Golf course..........................        2,000.00          500.00
c. Casino...............................        2,500.00          750.00
d. Restaurant...........................        2,000.00          500.00
e. Government...........................          200.00          100.00
f. Business ancillary...................          200.00          100.00
g. Special event........................          200.00  ..............
h. Sports stadium/entertainment venue...        2,000.00          500.00
i. Retail license.......................        2,000.00        1,000.00
------------------------------------------------------------------------


[[Page 7516]]

    (6) The office may assess a surcharge on the annual renewals of 
licenses to be used to help defray the costs of an auditor and 
support staff to review compliance of the requirements of the 
licensees.
    (7) The office may assess a surcharge to assist in the costs of 
enforcement programs that respond to complaints filed under this 
article.
    (8) For purposes of this article only, licensee shall keep 
records of licensee's business activity and all persons employed at 
the licensed premises in a manner and location and for such duration 
as prescribed by the director for a period of at least two years. 
Business activity shall include invoices, records, bills or other 
papers and/or documents relating to the purchase, sale and delivery 
of alcoholic beverages, and in the case of a restaurant or hotel-
motel licensee, such documentation shall also be kept for the 
purchase, sale and delivery of food.
    (9) Licenses issued under this article are nontransferable 
without the prior written approval of the director after the 
application process has been completed.
    a. The transfer fee of a license from one person to another 
person is $300.00 (excluding an application fee).
    b. The transfer fee of license from one location to another 
location shall be $100.00 (excluding an application fee).
    c. The office may issue an interim permit to the transferee of a 
transferable license pursuant to regulations established by the 
office.
    Sec. 14-65. Beverage restrictions.
    (a) Licenses may only be issued for premises operated under the 
following classifications as defined herein; and such licenses may 
be restricted to the sale of:
    (1) All alcoholic beverages;
    (2) Only beer;
    (3) Only wine; or
    (4) Only beer and wine.
    (b) Licenses may be restricted based on the type of license 
sought by the applicant.
    Sec. 14-66. Reasons for revocation, suspension; grounds not to 
renew.
    After notice and a hearing, the director may revoke, suspend or 
refuse to renew any license issued pursuant to this article for the 
following reasons:
    (1) There occurs on the licensed premises repeated acts of 
violence or disorderly conduct.
    (2) The licensee fails to satisfactorily maintain the 
capability, qualifications and reliability requirements of an 
applicant for a license prescribed pursuant to this article.
    (3) The licensee or controlling person knowingly files with the 
office an application or other document which contains material 
information which is false or misleading or while under oath 
knowingly gives testimony in an investigation or other proceeding 
under this article which is false or misleading.
    (4) The licensee or the controlling person is habitually 
intoxicated while on the premises.
    (5) The licensed business is delinquent for more than 90 days in 
the payment of taxes, penalties or interest to the Community.
    (6) The licensee or the controlling person obtains, assigns, 
transfers or sells an alcoholic beverage license in a manner that is 
not compliant with this article and article III of this chapter.
    (7) The licensee fails to keep for two years and make available 
to the office upon reasonable request all invoices, records, bills 
or other papers and/or documents relating the purchase, sale and 
delivery of alcoholic beverages, and in the case of a restaurant or 
hotel-motel license, all invoices, records, bills or other papers 
and/or documents relating to the purchase, sale and delivery of 
food.
    (8) The licensee or controlling person violates or fails to 
comply with this article and article III of this chapter, any rule 
or regulation adopted pursuant to this chapter or any alcoholic 
beverage law of the Community.
    (9) The licensee or an employee of a licensee fails to take 
reasonable steps to protect the safety of a customer of the licensee 
entering, leaving or remaining on the licensed premises when the 
licensee knew or reasonably should have known of the danger to such 
person, or the licensee fails to take reasonable steps to intervene 
by notifying law enforcement officials or otherwise prevent or break 
up an act of violence or an altercation occurring on the licensed 
premises or immediately adjacent to the premises when the licensee 
knew or reasonably should have known of such acts of violence or 
altercations.
    (10) The licensee or controlling person lacks good moral 
character.
    (11) The licensee or controlling person knowingly associates 
with a person who has engaged in racketeering or has been convicted 
of a felony, and the association is of such a nature as to create a 
reasonable risk that the licensee will fail to conform to the 
requirements of this article or of any Community law.
    (12) The licensee or controlling person is convicted of a felony 
provided that for a conviction of a corporation, LLC or partnership 
to serve as a reason for any action by the office, conduct which 
constitutes the 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, LLC or 
partnership or by a high managerial agent acting within the scope of 
employment. For purposes of this subsection, the term ``high 
managerial agent'' means an officer, partner or member of a 
corporation, LLC or partnership or any other agent of the 
corporation, LLC or partnership in a position of comparable 
authority with respect to the formulation of company policy.
    Sec. 14-67. Suspension; revocation; refusal to renew; sanctions.
    (a) The director may suspend, revoke or refuse to issue, 
transfer or renew a license based solely on the unrelated conduct or 
fitness of any officer, director, managing agent or other 
controlling person if that officer, director, managing agent or 
controlling person retains any interest in or control of the license 
after 60 days following a written notice to the licensee.
    (b) The director may refuse to transfer any license or issue a 
new license at the same location if the director has filed a 
complaint against a licensee or the location which has not been 
resolved that alleges a violation of any of the grounds identified 
in this article and article III of this chapter until such time as 
the complaint has been finally adjudicated.
    (c) The director may cause a complaint and notice of hearing to 
be directed to the licensee setting forth the violations alleged 
against the licensee.
    Sec. 14-68. Response; appeal.
    (a) Upon receipt of a complaint, the licensee shall have ten 
business days to respond to the allegations by filing a written 
response to the director.
    (b) Failure by the licensee to respond to the compliant within 
ten business days shall be considered an admission by the licensee 
of the allegations. The director may then vacate a hearing and 
impose appropriate sanctions on the licensee.
    (c) In lieu of or in addition to any suspension, revocation or 
refusal to renew a license, the director may impose a civil penalty 
of not less than $200.00 and no more than $3,000.00 for each 
violation and/or require the licensee and its employees to attend 
certain training.
    (d) The licensee may appeal the decision by the director to 
fine, revoke or not renew their license to the Community manager who 
will appoint a hearing officer pursuant to the requirements of this 
article. The hearing officer may affirm, modify or reverse the 
decision of the director to impose the civil penalty.
    Sec. 14-69. Injunction.
    If the office or the director has reasonable grounds to believe 
that a person owns, operates, leases, manages or is controlling a 
business establishment or business premises that is not properly 
licensed pursuant to this article, then the office or the director 
may apply to the Community court for a temporary restraining order 
or other injunctive relief prohibiting the specific acts complained 
of by the office or the director.
    Sec. 14-70. Amendment.
    This chapter may be amended by a majority vote of the Community 
Council or by the Community initiative or referendum process.
    Sec. 14-71. Coordination with the Community police department.
    In order to effectively enforce the regulatory and law 
enforcement provisions of this chapter, any report of violence or 
disorderly conduct occurring at a licensed premises that is received 
by either the office or the Community police department shall be 
immediately reported by the receiving department to the other 
department. In addition to the reporting of the incident, the 
department receiving the report of violence or disorderly conduct 
shall also share any relevant information with the other department 
unless the sharing of such information is prohibited by Community 
law or policy.
    Secs. 14-72-14-100. Reserved.

Article III. Unlawful Acts

    Sec. 14-101. Chapter violations.
    (a) Civil sanctions and penalties. A person who violates any 
provision of this chapter

[[Page 7517]]

may have their license revoked, suspended or may be assessed other 
civil sanctions.
    (b) Criminal penalties. Persons who come within the criminal 
jurisdiction of the Community, and are guilty of violations of this 
chapter, are subject to criminal penalties and upon conviction shall 
be sentenced to imprisonment for a period not to exceed six months 
or to a fine not to exceed $5,000.00 or both such imprisonment and 
fine, with costs.
    Sec. 14-102. Unlawful acts.
    (a) It shall be unlawful for any person to buy, sell or 
distribute alcoholic beverages in any manner not allowed by this 
chapter.
    (b) It shall be unlawful to employ a person under the age of 19 
years in any capacity connected with the handling of alcoholic 
beverages.
    (c) It shall be unlawful for a licensee or other person to give, 
sell or cause to be sold or otherwise distribute alcoholic beverages 
to a person under the age of 21 years.
    (1) If a licensee, an employee of a licensee or any other person 
questions or has reason to question that a person ordering, 
purchasing, attempting to purchase or otherwise procuring or 
attempting to procure the serving or delivery of alcoholic beverages 
is under the legal drinking age, the licensee, employee of the 
licensee or other person shall do the following:
    a. Demand identification from the person.
    b. Examine the identification to determine that the 
identification reasonably appears to be a valid, unaltered 
identification that has not been defaced.
    c. Examine the photograph in the identification and determine 
that the person reasonably appears to be the same person in the 
identification.
    d. Determine that the date of birth in the identification 
indicates the person is not under the legal drinking age.
    (1) If a licensee or an employee of a licensee who follows the 
procedures prescribed above in subsections (c)(1)a through d of this 
section, records and retains a record of the person's identification 
on this particular visit, the licensee or employee of the licensee 
shall not be in violation of subsections (c) through (e) of this 
section.
    (2) Proof that a licensee or employee followed the entire 
procedure proscribed above in subsections (c)(1)a through d of this 
section, but did not record and retain a record of the 
identification is an affirmative defense to a violation of this 
subsections (c) through (e) of this section.
    (3) A licensee or employee of a licensee who has not recorded 
and retained a record of the identification prescribed by 
subsections (c)(1)a through d of this section, is presumed not to 
have followed any of the elements of subsections (c)(1)a through d 
of this section.
    (d) It shall be unlawful for a person under the age of 21 years 
to buy, possess, or consume alcoholic beverages.
    (e) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit any person on or about the licensed 
premises to give or furnish alcoholic beverages to any person under 
the age of 21 or knowingly permit any person under the age of 21 to 
have in the person's possession alcoholic beverages on the licensed 
premises.
    (f) It shall be unlawful for a licensee or an employee of the 
licensee to consume alcoholic beverages on or about the licensed 
premises, or to be intoxicated or in a disorderly condition during 
such periods as when such person is working at the licensed 
premises, except that:
    (1) An employee of an on-sale retailer, during the employee's 
working hours in connection with the employment, while the employee 
is not engaged in waiting on or serving customers, may taste samples 
of beer or wine not to exceed four ounces per day or distilled 
spirits not to exceed two ounces per day provided by an employee of 
a wholesaler or distributor who is present at the time of sampling.
    (2) An employee of an on-sale retailer, 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 not to exceed two ounces per educational session 
or beer/wine not to exceed four ounces per educational session, and 
provided that a licensee shall not have more than two educational 
sessions in any 30-day period.
    (3) An unpaid volunteer of a special event may purchase and 
consume alcoholic beverages while not engaged in waiting on or 
serving alcoholic beverages to customers at the special event. This 
subsection does not apply to unpaid volunteers whose 
responsibilities include verification of a person's legal drinking 
age, security or the operation of any vehicle or heavy machinery.
    (4) A licensee or employee of a licensee of a business ancillary 
licensee may consume alcoholic beverages as part of a meal prepared 
in connection with a cooking demonstration.
    (g) It shall be unlawful for a licensee or an employee of the 
licensee to sell alcoholic beverages to a disorderly or obviously 
intoxicated person, or for a licensee or employee of a licensee to 
allow or permit a disorderly or obviously intoxicated person to 
remain on the premises except that a licensee or an employee of the 
licensee may allow an obviously intoxicated person to remain on the 
premises for period of time of not to exceed 30 minutes after the 
state of obvious intoxication is known or should have been known to 
the licensee in order that a nonintoxicated person may transport the 
obviously intoxicated person from the premises. For purposes of this 
article, the term ``obviously intoxicated'' means inebriated to the 
extent that a person's physical faculties are substantially impaired 
and the impairment is shown by significant uncoordinated physical 
action or physical dysfunction that would have been obvious to a 
reasonable person.
    (h) It shall be unlawful for a licensee or an employee of the 
licensee to sell alcoholic beverages that are in a broken package 
(all wine and alcoholic beverages shall have their seal broken by 
the licensee or their employee before serving such alcoholic 
beverage to the customer).
    (i) Intentionally left blank.
    (j) It shall be unlawful for a licensee or an employee of the 
licensee to sell alcoholic beverages within the Community without 
being also licensed by the State of Arizona to sell alcoholic 
beverages.
    (k) It shall be unlawful for a licensee or an employee of the 
licensee to sell, dispose of, deliver or give alcoholic beverages to 
a person between the hours of 2:00 a.m. and 6:00 a.m.
    (l) It shall be unlawful for a licensee or an employee of the 
licensee to allow a person to consume or possess alcoholic beverages 
on the premises between the hours of 2:30 a.m. and 6:00 a.m.
    (m) It shall be unlawful for a person to consume alcoholic 
beverages in a public place, thoroughfare or gathering. Any licensee 
or employee of the licensee permitting violations of this section 
shall be subject to license revocation. This subsection does not 
apply to the sale of alcoholic beverages on the premises of and by 
an on-sale retailer.
    (n) It shall be unlawful for an on-sale retailer or an employee 
of the licensee to allow a person under the age of 21 years to 
remain in an area on the licensed premises during those hours in 
which the 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 age of 21 
years. This subsection does not apply if the person under the legal 
drinking age is accompanied by a spouse, parent or legal guardian 
who is of legal drinking age, is an on-duty employee of the 
licensee, or to the area of the premises used primarily for the 
serving of food when food is being served.
    (o) It shall be unlawful for an on-sale retailer or employee of 
the licensee to conduct drinking contests, to sell or deliver to a 
person an unlimited number of alcoholic beverages during any set 
period of time for a fixed price, to deliver more than 40 ounces of 
beer, one liter of wine or four ounces of distilled spirits in any 
alcoholic beverage drink to one person at one time for that person's 
consumption or to advertise any practice prohibited by this 
subsection.
    (p) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit the unlawful possession, use, sale or 
offer for sale of narcotics, dangerous drugs or marijuana on the 
premises.
    (q) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit prostitution or the solicitation of 
prostitution on the premises.
    (r) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit unlawful gambling on the premises.
    (s) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit trafficking or attempted trafficking in 
stolen property on the premises.
    (t) It shall be unlawful for a licensee or an employee of the 
licensee to fail or refuse to make the licensed premises or records 
available for inspection and examination or so to comply with a 
lawful subpoena issued under this chapter.
    (u) It shall be unlawful for any person other than a law 
enforcement officer, the licensee or an employee of the licensee 
acting with the permission of the licensee to be in the possession 
of a firearm while on the licensed premises of an on-sale retailer.

[[Page 7518]]

    (v) It shall be unlawful for a licensee or an employee of the 
licensee to knowingly permit a person in possession of a firearm, 
other than a law enforcement officer, the licensee or the employee 
of the licensee (acting with the permission of the licensee) to 
remain on the licensed premises or to serve, sell or furnish 
alcoholic beverages to a person in possession of a firearm while on 
the licensed premises of an on- sale retailer.
    (w) It shall be unlawful for a person under the age of 21 to 
drive or be in physical control of a motor vehicle while there is 
any alcoholic beverage in the person's body.
    (x) It shall be unlawful for a licensee or employee of the 
licensee to purposely induce a voter, by means of alcohol, to vote 
or abstain from voting for or against a particular candidate or 
issue on election day.
    (y) It shall be unlawful for a licensee to fail to report an 
occurrence of an act of violence, within three business days, to 
either the office or the Community police department.
    (z) It shall be unlawful for any person to consume or be in the 
possession of any open container of alcoholic beverages while 
operating or while within the passenger compartment of a motor 
vehicle that is located on any roadways or public parking lots 
within the Community. This subsection does not apply to a passenger 
on any bus, limousine or a passenger in the living quarters of a 
mobile home.
    (1) Motor vehicle means any vehicle that is driven or drawn by 
mechanical power and that is designated for primary use on public 
roadways.
    (2) Open container means any bottle, can, jar or other 
receptacle that contains alcoholic beverages and that has been 
opened, has had its seal broken or that the contents of which have 
been partially removed, except that it does not mean when a person 
removes a bottle of wine that has been partially consumed in 
conjunction with a purchased meal from a licensed premises if a cork 
is inserted flush with the top of the bottle or the bottle is 
otherwise securely closed.
    (3) Passenger compartment means the area of a motor vehicle 
designed for seating of the driver and other passengers of the 
vehicle. Passenger compartments include any unlocked glove 
compartment and any unlocked portable devices within the immediate 
reach of the driver or any passengers.
    (aa) It shall be unlawful for any person over the age of 18 who 
lawfully exercises dominion and control within any private residence 
or the surrounding premises to knowingly permit any person under the 
age of 21 to possess or consume alcoholic beverages within the 
private residence or within the immediate surrounding premises.
    (bb) It shall be unlawful for a licensee to sell alcoholic 
beverages in any manner not provided for by this chapter or any 
regulations issued pursuant to this chapter.
    (cc) It is unlawful for a person to take or solicit orders for 
alcoholic beverages 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.
    (dd) It is unlawful for any retail licensee to purchase 
alcoholic beverages from any person other than a solicitor or 
salesman of a wholesaler licensed by the State of Arizona.
    (ee) It is unlawful 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.
    (ff) It is unlawful for an on-sale retailer to permit 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. No on-
sale retailer shall serve employees or allow a patron of the 
establishment to give alcoholic beverages to, purchase liquor for or 
drink liquor with any employee during the employee's working hours.
    (gg) It is unlawful for a person to have possession of or to 
transport alcoholic beverages which are manufactured in a 
distillery, winery, brewery or rectifying plant contrary to the laws 
of the United States, the Community and the State of Arizona. Any 
property used in transporting such alcoholic beverages shall be 
forfeited, seized and disposed of.
    (hh) It is unlawful for a person who is obviously intoxicated to 
buy or attempt to buy alcoholic beverages from a licensee or 
employee of a licensee or to consume alcoholic beverages on a 
licensed premises.
    (ii) It is unlawful for a licensee to use a vending machine for 
the purpose of dispensing alcoholic beverages.
    (jj) It is unlawful for a retailer to knowingly allow a customer 
to bring alcoholic beverages onto the licensed premises.
    (kk) It is unlawful for a person to purchase, offer for sale or 
use any device, machine or process which mixes alcoholic beverages 
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 alcoholic beverages.
    (ll) It is unlawful for a retail licensee or an employee of a 
retail licensee to sell alcoholic beverages to a person if the 
retail licensee or employee knows the person intends to resell the 
alcoholic beverages.
    (mm) It is unlawful 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.
    Packaged liquor area (enacted on February 12, 2025)
BILLING CODE 4337-15-P

[[Page 7519]]

[GRAPHIC] [TIFF OMITTED] TN18FE26.000

[FR Doc. 2026-03105 Filed 2-17-26; 8:45 am]
BILLING CODE 4337-15-C


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Indexed from Federal Register on February 18, 2026.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.