Reasons for the laws

There are many terms and regulations the establishment must follow, or the establishment could lose their liquor license and face criminal charges. The type of liquor the establishment sells is outlined in the license you receive. Selling alcoholic beverages that are not permitted in the license is a violation.
If a business serves alcoholic beverages without regard to Arizona State Law the licensee could potentially be subject to the following: 

a.      License holder can be fined between $200 and $5000
b.      License can be suspended
c.       License can be revoked
d.      Licensee can be sued civilly
e.      Licensee can be prosecuted criminally

An administrative penalty is:
  • a legal mechanism that allows a local governing body to penalize alcohol license holders for failing to comply with state laws or local ordinances relating to sales of alcoholic beverages
  • usually a monetary fine, or the suspension or revocation of an alcohol license
  • administered by a local governing body (city council, county board), rather than the court system
  • imposed upon the license holder (in contrast to state laws that target the behavior of individual sellers and servers of alcohol
After the establishment has been cited or accused of violating the regulations and terms of your liquor license, there will be an administrative hearing with a judge, at your request. The establishment  may hire an attorney for this hearing. The judge will then determine what disciplinary actions, if any, will be taken.

10.Potential Risks to the Employee.
As a seller or service of alcohol you must understand the liability regarding alcohol service. Being liable means you have certain legal responsibilities if you do not act in accordance with the law you could face consequences ranging from lawsuits to criminal charges which could ultimately result in fines and even imprisonment.  In addition, your establishment could lose its liquor license and be forced to close.  You must always balance your desire to please your guest with your legal responsibility.

In Arizona an "Employee"  (Seller or server ) means any person who performs any service on licensed premises on a full-time, part-time or contract basis with consent of the licensee, whether or not the person is denominated an employee, independent contractor or otherwise. Employee does not include a person exclusively on the premises for musical or vocal performances, for repair or maintenance of the premises or for the delivery of goods to the licensee.

As a seller or server of alcohol you may face criminal charges if you break state, county,  or municipal alcohol laws. Most states will hold you criminally liable for the following actions: serving alcohol to a minor, serving a guest who is or appears to be intoxicated, possessing, selling or allowing the sale of drugs on the premises.  The consequence can be serious:

You may be held responsible for :
1.      Civil Liability
2.     Criminal Liability
3.     Dram Shop Laws
4.     Administrative Action from the Liquor Authority

If employees of a licensee serve alcoholic beverages without regard to Arizona State Law the employee could potentially be subject to the following:
a.      Employee could be arrested
b.      Employee could be ordered to pay a fine
c.       Employee could lose his or her job
d.      Employee could serve jail time
e.      Employee could be sued civilly


11.Licensed Premises
The serving of alcoholic beverages is confined to the building and/or patio in which the holder of the license is licensed to sell. The areas defined as “licenses to sell” do not include the property limits, such as parking lots. 

Licensees may not alter or change the physical arrangement of the licensed premises to create greater space or use different or additional entrances, openings and/or accommodations other than those offered to the public at the time of the issuance of the license. If the licensee wishes to alter the physical environment or dimensions of the establishment, the licensee must first file with the ABC Director, provide an outline of the new floor plan with diagrams disclosing and designating the proposed physical alterations to the licenses premises. Before alternations are made the licensee must obtain written approval from the Director. 

1.      Second Party Purchases
Second Party Purchases, defined as purchases of alcohol beverages made by a person over the age of twenty-one (21) for a minor, are illegal.


2.     The Sale of Broken Packages
It is unlawful in the state of Arizona for an off-sale retailer or employee thereof, to sell spirituous liquors except in the original, unbroken container. 

3.     Off-Premise Sale Restrictions and Advising Customers of Off-Sale Consumption 
It is unlawful in the state of Arizona for an off-sale retailer or employee thereof, to permit spirituous liquor to be consumed on the premises or to knowingly permit spirituous liquors to be consumed on adjacent property under the licensee’s exclusive control.


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