HB 2905
Initials PB Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: COM DP 8-0-0-2
HB 2905: craft producer; festival; fair; license
Sponsor: Representative Weninger, LD 13
Caucus & COW
Overview
Creates a craft producer festival license. Repeals the wine, craft distillery and microbrewery
festival licenses.
History
The Department of Liquor Licenses and Control (DLLC), which consists of the State Liquor
Board and the Office of the Director of DLLC (Director), regulates the manufacture,
distribution and sale of liquor in Arizona through the issuance of a series of licenses and
investigating licensee compliance with liquor laws.
DLLC may issue a microbrewery license to any microbrewery that meets the statutory
requirements. A microbrewery must produce or manufacture at least 5,000 gallons and fewer
than 6,200,000 gallons of beer in a calendar year to maintain a microbrewery license. A
microbrewery may: 1) sell beer produced or manufactured on the premises for consumption
on or off the premises; 2) make sales and deliveries of beer that the microbrewery produces
or manufactures to persons licensed to sell beer in Arizona through wholesalers licensed in
Arizona or to persons licensed to sell beer in another state, if lawful; and 3) sell beer produced
or manufactured by other microbreweries for consumption only on the licensee's premises
(A.R.S. § 4-205.08).
DLLC may issue a farm winery license to a person who produces at least 200 gallons and
fewer than 40,000 gallons of wine in a calendar year. A licensed farm winery may: 1) make
sales and deliveries of wine to wholesalers licensed to sell wine; 2) serve wine produced or
manufactured on the premises for the purpose of sampling the wine; 3) sell to a consumer
physically present on the premises wine produced or manufactured on the premises in the
original container for consumption on or off the premises; and 4) allow a representative of the
licensed farm winery to consume small amounts of the products of the licensed farm winery
on the premises for the purpose of sampling the wine (A.R.S. § 4-205.04).
DLLC may issue a craft distiller license allowing a person to sale distilled spirits if the person
produces or manufactures no more than 20,000 gallons of distilled spirits. A craft distiller
may make sales and deliveries of distilled spirits subject to outlined criteria, including: 1)
make sales and deliveries of distilled spirits to wholesalers that are licensed to sell distilled
spirits; 2) serve distilled spirits that are produced or manufactured on the premises for the
purpose of consumption on the premises and may charge for samples on the premises of the
craft distiller; and 3) sell distilled spirits that are produced or manufactured on the premises
in the original container for consumption off the premises to a consumer who is physically
present on the premises (A.R.S. § 4-205.10).
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2905
Initials PB Page 2 Caucus & COW
Provisions
1. Allows the Director to issue, on a temporary basis, a craft producer festival license,
authorizing:
a) sampling of the craft producer products on the craft producer festival premises; and
b) the sale of craft producer products for consumption on or off the festival premises.
(Sec. 3)
2. Provides approval requirements for a craft producer festival license for festivals that
occur at an otherwise unlicensed location or at a location that is not fully within the
licensee's existing licensed premises. (Sec. 3)
3. Requires denial of a craft producer festival license be forwarded to the Director within 60
days after the submission of a license application unless the applicant has requested more
time for consideration of the application. (Sec. 3)
4. Specifies that the approval process for licensure for festivals that occur at an unlicensed
location does not apply to physical locations that are fully within a licensed premises.
(Sec. 3)
5. Allows a representative of the licensed craft producer to consume small amounts of the
products of the producer on the festival premises for the purpose of quality control. (Sec.
3)
6. Authorizes the Director to:
a) issue one or more craft producer festival licenses for each licensed craft producer, for
a total of up to 150 days for each craft producer;
b) establish a fee for each day of each event for a craft producer festival or fair license;
and
c) issue a craft producer fair license with the permission of state or county fair
organizers. (Sec. 3)
7. Permits a craft producer, at any sanctioned state or county fair, to allow:
a) sampling of craft producer products on the fair premises;
b) the sale of the products for consumption on or off the fair premises. (Sec. 3)
8. Exempts craft producer licenses from certain licensing requirements. (Sec. 3)
9. Allows the Director to issue a special event license concurrently with a craft producer
festival license. (Sec. 1)
10. Reduces, from 5,000 gallons to 1,000 gallons, the minimum required amount of beer that
must be annually produced or manufactured for a microbrewery license. (Sec. 4)
11. Exempts craft producer festival or fair licenses from the statutory restrictions on licensing
premises that are within 300 feet of a public or private school building, or a fenced
recreational area adjacent to the public or private school building. (Sec. 6)
12. Repeals statute relating to farm winery festival license, craft distillery festival license
and microbrewery festival license. (Sec. 2, 5)
13. Makes conforming changes. (Sec. 1, 6)