Assigned to RAGE FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2905
craft producer; festival; fair; license
Purpose
Establishes a craft producer festival license and a craft producer fair license. Repeals
statutes authorizing farm winery, craft distillery and microbrewery festival and fair licenses.
Background
The Department of Liquor Licenses and Control (DLLC), consisting of the State Liquor
Board and the Office of the Director, regulates the manufacture, distribution and sale of liquor in
Arizona through the issuance of a series of licenses and investigating license complaints with
liquor laws (A.R.S. Title 4).
The Director of the DLLC (Director) may issue on a temporary basis, a farm winery, craft
distillery or microbrewery festival license that authorizes: 1) the sampling of products on the
festival premises; 2) the sale of products for consumption on the festival premises; and 3) the sale
of products in the original container for consumption off of the festival premises. Before the
Director may issue a farm winery, crafty distillery or microbrewery festival license, a festival that
is to occur at an otherwise unlicensed location or at a location that is not fully within the licensee's
existing licensed premises must be approved by the board of supervisors of the county, or the
board's designee, if the event is held in an unincorporated area or by the governing body of a city
or town, or the governing body's designee, if the event is to be held in a city or town. A denial by
the county, city or town must be forwarded to the Director within 60 days after the submission of
an application unless the applicant requested more time for consideration. The Director may issue
one or more farm winery, craft distillery or microbrewery festival license for each licensed craft
producer, for a total of up to 150 calendar day. The Director may also issue a farm winery, craft
distillery and microbrewery fair license with the permission of state fair organizers or county fair
organizers. Any craft producer may allow: 1) the sampling of products on the fair premises; 2) the
sale of the products for consumption on the fair premises; and 3) the sale of products in original
containers for consumption off of the fair premises (A.R.S. ยงยง 4-203.03; 4-205.11; and 4-205.14).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Repeals the statutes authorizing a farm winery festival or fair license, a craft distillery festival
or fair license and a microbrewery festival or fair license.
2. Allows the Director to issue, on a temporary basis, a craft producer festival license that
authorizes:
a) the sampling of the craft producer products on the craft producer festival premises; FACT SHEET
H.B. 2905
Page 2
b) the sale of the craft producer products for consumption on the craft producer festival
premises; and
c) the sale of the craft producer products in the original container for consumption off the
craft producer festival premises.
3. States that, before the Director may issue a craft producer festival license, a craft producer
festival that is to occur at an otherwise unlicensed location or location that is not fully within
the licensee's existing licensed premises must be approved by:
a) the board of supervisors, or the board's designee, if the event is to be held in an
unincorporated area; or
b) the governing body of a city or town, the governing body's designee, if the event if going
to be held in a city or town.
4. Requires a denial by the county, city or town to be forwarded to the Director within 60 days
after the submission of an application to the county, city or town unless the applicant has
requested more time for consideration of the application.
5. States that the approval process prescribed for a craft producer festival license does not apply
to physical locations that are fully located within a licensed premise.
6. Allows the Director to:
a) issue one or more craft producer festival licenses for each licensed craft producer, for a
total of up to 150 calendar days for each craft producer; and
b) establish a fee for each day of each event for a craft producer festival license.
7. Allows a representative of the licensed craft producer to consume small amounts of the
products of the licensed craft producer on the festival premises for the purpose of quality
control.
8. Allows the Director to issue a special event license concurrently with a craft producer festival
license.
9. Allows the Director to:
a) issue a craft producer fair license with the permission of state fair organizers or county fair
organizers; and
b) establish a fee for each day for each event for a craft producer fair license.
10. Authorizes any craft producer, at any sanctioned state or county fair, to allow:
a) the sampling of craft producer products on the fair premises;
b) the sale of the products for consumption on the fair premises; and
c) the sale of the products in original containers for consumption off the fair premises.
11. States that statutory application procedures for liquor licenses in cities, towns and counties do
not apply to a craft producer festival or fair license.
12. Reduces, from 5,000 gallons to 1,000 gallons, the minimum required amount of beer that a
microbrewery must produce per calendar year following the first year of operation. FACT SHEET
H.B. 2905
Page 3
13. 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 school building.
14. Makes conforming changes.
15. Becomes effective on the general effective date.
House Action
COM 2/18/25 DP 8-0-0-2
3
rd
Read 2/26/25 56-1-3
Prepared by Senate Research
March 10, 2025
JT/JRM/ci