Salt River Pima-Maricopa Indian Community of the Salt River Reservation Liquor Ordinance, 3453-3462 [2016-01156]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Indian Affairs

[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Notices]
[Pages 3453-3462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01156]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[167 A2100DD/AAKC001030/A0A501010.999900]


Salt River Pima-Maricopa Indian Community of the Salt River 
Reservation Liquor Ordinance

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Notice.

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SUMMARY: This notice publishes the Salt River Pima-Maricopa Indian 
Community of the Salt River Reservation Liquor Ordinance (Ordinance). 
The Ordinance certifies the Salt River Pima-Maricopa Indian Community's 
Liquor licensing laws to regulate and control the possession, sale and 
consumption of liquor within the jurisdiction of the Salt River Pima-
Maricopa Indian Community. The Ordinance repeals and replaces the 
previous liquor control ordinance published in the Federal Register on 
July 13, 2010 (75 FR 39960), and any and all previous statutes.

DATES: This ordinance becomes effective February 22, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Sharlot Johnson, Tribal Government 
Services Officer, Western Regional Office, Bureau of Indian Affairs, 
2600 North Central Avenue, Phoenix, AZ 85004, Phone: (602) 379-6786; 
Fax: (602) 379-379-4100, or Ms. Laurel Iron Cloud, Bureau of Indian 
Affairs, Office of Indian Services, 1849 C Street NW., MS-4513-MIB, 
Washington, DC 20240; Telephone: (202) 513-7641.

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. 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 adopted Resolution Number: SR-3349-2015 
(Liquor Control Ordinance) on June 24, 2015. The statute repeals and 
replaces the previous liquor control ordinance published in the Federal 
Register on July 13, 2010 (75 FR 39960).

    Dated: January 6, 2016.
Lawrence S. Roberts,
Acting Assistant Secretary--Indian Affairs.

Chapter 14 ALCOHOLIC BEVERAGES AND PROHIBITED SUBSTANCES (Articles I-
III)

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.

(Code 1981, Sec.  14-1; Code 2012, Sec.  14-1; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-1, 5-30-2012)

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

[[Page 3454]]

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.

(Code 1981, Sec.  14-2; Code 2012, Sec.  14-2; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-2, 5-30-2012)

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.

(Code 1981, Sec.  14-3; Code 2012, Sec.  14-3; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-3, 5-30-2012)

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.
    Broken package means any container of spirituous liquor on which 
the United States tax seal has been broken or removed, or from which 
the cap, cork or seal placed thereupon by the manufacturer has been 
removed, except that ``broken package'' does not include 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.
    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 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 
spirituous liquors 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

[[Page 3455]]

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.

(Code 1981, Sec.  14-4; Code 2012, Sec.  14-4; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-4, 5-30-2012; Ord. No. SRO-
451-2015, Sec.  14-23, 10-1-2014)

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.

(Code 1981, Sec.  14-5; Code 2012, Sec.  14-5; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-5, 5-30-2012; Ord. No. SRO-
410-2013, Sec.  14-5, 12-5-2012; Ord. No. SRO-439-2014, Sec.  14-
5(b)(9), 3-5-2014)

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 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; a business serves alcoholic 
beverages as part of a cooking demonstration or cooking class; or is an 
accredited school offering degree programs in the culinary arts.
    (e) Alcoholic beverages may be sold at licensed premises only under 
the conditions under which the license is issued.

(Code 1981, Sec.  14-6; Code 2012, Sec.  14-6; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-6, 5-30-2012; Ord. No. SRO-
451-2015, Sec.  14-25, 10-1-2014)

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 December 9, 2009, approved Community 
liquor licensing area corridor (attached to the ordinance from which 
this article is derived, and incorporated herein by reference).
    (1) The December 9, 2009, approved Community liquor licensing area 
corridor 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 December 
9, 2009, approved Community liquor licensing area corridor and any 
future amendments thereof.

(Code 1981, Sec.  14-7(a); Code 2012, Sec.  14-7(b); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-366-2010, Sec.  14-7(b), 7-14-2010; Ord. 
No. SRO-402-2012, Sec.  14-7(b), 5-30-2012)

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

[[Page 3456]]

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 licensed 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 or spirituous liquors 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.

[[Page 3457]]

(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 
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 only issued for one day for a 
duration that shall not exceed eight hours;
    2. A special event license may only be issued no more than once a 
year and shall only be issued to an applicant that has obtained a 
special event license pursuant to the requirements of the State of 
Arizona; and
    3. A special event license shall only be available to a business 
that is not in the primary business of selling food or alcohol.
    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.

(Code 1981, Sec.  14-7(b); Code 2012, Sec.  14-7(b); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-366-2010, Sec.  14-7(b), 7-14-2010; Ord. 
No. SRO-402-2012, Sec.  14-7(b), 5-30-2012)

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 own 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

[[Page 3458]]

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.

(Code 1981, Sec.  14-8(a); Code 2012, Sec.  14-8(a); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(a), 5-30-2012)

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.

(Code 1981, Sec.  14-8(b); Code 2012, Sec.  14-8(b); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(b), 5-30-2012)

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 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].''

(Code 1981, Sec.  14-8(c); Code 2012, Sec.  14-8(c); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(c), 5-30-2012)

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.

(Code 1981, Sec.  14-8(d); Code 2012, Sec.  14-8(d); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(d), 5-30-2012)

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.

(Code 1981, Sec.  14-8(e); Code 2012, Sec.  14-8(e); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(e), 5-30-2012)

Sec. 14-61. Inappropriate purpose.

    In order to prevent the proliferation of licenses, the office may 
deny a license to an applicant after determining that the applicant's 
business is inappropriate for the sale of spirituous liquor. An 
inappropriate applicant or business is one that cannot clearly 
demonstrate that the sale of spirituous liquor is directly connected to 
its primary purpose and that the sale of liquor is not merely 
incidental to its primary purpose.

(Code 1981, Sec.  14-8(f); Code 2012, Sec.  14-8(f); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(f), 5-30-2012)

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.

(Code 1981, Sec.  14-8(g); Code 2012, Sec.  14-8(g); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(g), 5-30-2012)

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.

[[Page 3459]]

    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.

(Code 1981, Sec.  14-8(h); Code 2012, Sec.  14-8(h); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-8(h), 5-30-2012)

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  ..........
------------------------------------------------------------------------

--------
    (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.

(Code 1981, Sec.  14-9(a); Code 2012, Sec.  14-9(a); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-9(a), 5-30-2012; Ord. 
No. SRO-410-2013, Sec.  14-9(a), 12-5-2012)

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.

(Code 1981, Sec.  14-9(b); Code 2012, Sec.  14-9(b); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-9(b), 5-30-2012; Ord. 
No. SRO-410-2013, Sec.  14-9(b), 12-5-2012)

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.

[[Page 3460]]

    (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.

(Code 1981, Sec.  14-9(c); Code 2012, Sec.  14-9(c); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-9(c), 5-30-2012; Ord. 
No. SRO-410-2013, Sec.  14-9(c), 12-5-2012)

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.

(Code 1981, Sec.  14-9(d); Code 2012, Sec.  14-9(d); Ord. No. SRO-355-
2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-9(d), 5-30-2012; Ord. 
No. SRO-410-2013, Sec.  14-9(d), 12-5-2012)

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.

(Code 1981, Sec.  14-9(e)--(h); Code 2012, Sec.  14-9(e)--(h); Ord. No. 
SRO-355-2010, 9-12-2009; Ord. No. SRO-402-2012, Sec.  14-9(e)--(h), 5-
30-2012; Ord. No. SRO-410-2013, Sec.  14-9(e)--(h), 12-5-2012)

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.

(Code 1981, Sec.  14-10; Code 2012, Sec.  14-10; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-10, 5-30-2012)

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.

(Code 1981, Sec.  14-11; Code 2012, Sec.  14-11; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-11, 5-30-2012)

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 an 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.

(Ord. No. SRO-410-2013, Sec.  14-12, 12-5-2012)

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 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

[[Page 3461]]

a fine not to exceed $5,000.00 or both such imprisonment and fine, with 
costs.

(Code 1981, Sec.  14-17; Code 2012, Sec.  14-17; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-402-2012, Sec.  14-17, 5-30-2012)

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 spirituous liquor 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.
    (2) 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.
    (3) 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.
    (4) 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 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) It shall be unlawful for a licensee or an employee of the 
licensee to sell alcoholic beverages as an off-sale retailer.
    (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

[[Page 3462]]

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.
    (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 spirituous liquor 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.

(Code 1981, Sec.  14-18; Code 2012, Sec.  14-18; Ord. No. SRO-355-2010, 
9-12-2009; Ord. No. SRO-366-2010, Sec.  14-18, 7-14-2010; Ord. No. SRO-
402-2012, Sec.  14-18, 5-30-2012; Ord. No. SRO-410-2013, Sec.  14-18, 
12-5-2012; Ord. No. SRO-451-2015, Sec.  14-102, 10-1-2014)

Secs. 14-103--14-132. Reserved.

[FR Doc. 2016-01156 Filed 1-20-16; 8:45 am]
 BILLING CODE 4337-15-P