ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
special event licenses; charitable organizations
(NOW: special event license; issuance)
Purpose
Authorizes the Director of the Department of Liquor Licenses and Control (DLLC) to issue a temporary special event license to an affiliate of a nonprofit 501(c)(4) organization if the affiliate meets certain requirements.
Background
DLLC issues liquor licenses to regulate the production, distribution and sale of liquor. A special event license is a daily license authorizing: 1) the sale of spirituous liquor for consumption on the premises where sold; or 2) a charitable auction for the sale of spirituous liquor for consumption off the premises. An unlicensed physical location that is not owned by a government entity may not be issued more than 30 days of special event licenses in a calendar year. The Director of DLLC may issue a special event license only to a government entity, a nonprofit entity under section 501(c) of the U.S. Internal Revenue Code (U.S. IRC), or a political party or campaign committee supporting a candidate for public office or a ballot measure.
A nonprofit entity that has a special event license for charitable fundraising activities may receive spirituous liquor as a donation from a producer or wholesaler licensee and may receive monetary donations from a producer or wholesaler to help sponsor the event (A.R.S. 4-203.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Authorizes the DLLC Director to issue a temporary special event license to an affiliate of a national, statewide or international parent nonprofit organization for an event if:
a) the affiliate provides a letter from the U.S. Internal Revenue Service (U.S. IRS) showing that the parent organization is a nonprofit 501(c)(4) organization with a group ruling;
b) the affiliate provides a copy of a charter or a letter from the parent nonprofit entity or organization organized under section 501(c) of the U.S. IRC that recognizes the affiliate as a subordinate to the parent organization;
c) the event proceeds are for a charitable or nonprofit purpose; and
d) the affiliate and its members have not violated statutes governing Alcoholic Beverages, local requirements for special events or any fire code.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Extends eligibility for a special event license to an affiliate of a nonprofit organization, rather than to a nonprofit entity in certain circumstances.
2. Requires the affiliate to:
a) provide a letter from the U.S. IRS showing that the parent organization is a nonprofit 501(c)(4) organization with a group ruling and a copy of a charter or a letter from the parent nonprofit that recognizes the affiliate as a subordinate; and
b) not have violated Alcoholic Beverages statutes, local requirements for special events or any fire code, rather than requiring the event to have never been cited for Alcoholic Beverages statute violations.
3. Removes the requirement that the event be held at a physical location owned by a nonprofit entity or organization organized under section 501(c) of the U.S. IRC.
House Action Senate Action
COM 2/16/21 DPA/SE 9-0-0-1 COM 3/10/21 DP 8-0-1
3rd Read 2/23/21 58-0-2
Prepared by Senate Research
April 28, 2021
LB/kja