Arizona-2020-SB1527-Introduced

Be it enacted by the Legislature of the State of Arizona:

Section 1. Heading change

The title heading of title 4, Arizona Revised Statutes, is changed from "ALCOHOLIC BEVERAGES" to "ALCOHOLIC BEVERAGES, ALTERNATIVE NICOTINE PRODUCTS, E-LIQUIDS, TOBACCO PRODUCTS AND VAPOR PRODUCTS".

Sec. 2. Section 4-101, Arizona Revised Statutes, is amended to read:

START_STATUTE4-101. Definitions

In this title, unless the context otherwise requires:

1. "Act of violence":

(a) Means an incident consisting that consists of a riot, a fight, an altercation or tumultuous conduct and that meets at least one of the following criteria:

(i) In which bodily injuries are sustained by any person and the injuries would be obvious to a reasonable person.

(ii) Of sufficient intensity as to require the intervention of a peace officer to restore normal order.

(iii) In which a weapon is brandished, displayed or used.�

(iv) Where a licensee or an employee or contractor of the licensee fails to follow a clear and direct lawful order from a law enforcement officer or a fire marshal.

(b) Does not include the use of nonlethal devices by a peace officer.

2. "Aggrieved party" means a person who resides at, owns or leases property within a one-mile radius of a premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license no later than sixty days after the filing of the application or fifteen days after action by the local governing body, whichever is sooner.

3. "alternative nicotine product":

(a) means any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested or consumed by any other means.

(b) does not include any e-liquid, vapor product, tobacco product or shisha or any product regulated as a drug or device by the united states food and drug administration under subchapter v of the federal food, drug, and cosmetic act.

3. 4. "Beer" means any beverage obtained by the alcoholic fermentation, infusion or decoction of barley malt, hops, or other ingredients not drinkable, or any combination of them.

4. 5. "Biometric identity verification device" means a device authorized by the department that instantly verifies the identity and age of a person by an electronic scan of a biometric of the person, through a fingerprint, iris image, facial image or other biometric characteristic, or any combination of these characteristics, references the person's identity and age against any record described in section 4-241, subsection K, and meets all of the following conditions:

(a) The authenticity of the record was previously verified by an electronic authentication process.

(b) The identity of and information about the record holder was previously verified through either:

(i) A secondary, electronic authentication process or set of processes utilizing commercially available data, such as a public records query or a knowledge-based authentication quiz.

(ii) Utilizing a state or federal government system of record for digital authentication.

(c) The authenticated record was securely linked to biometrics contemporaneously collected from the verified record holder and is stored in a centralized, highly secured, encrypted biometric database.

5. 6. "Board" means the state liquor board.

6. 7. "Bona fide guest" means:

(a) An individual who is personally familiar to the member, who is personally sponsored by the member and whose presence as a guest is in response to a specific and personal invitation.

(b) In the case of a club that meets the criteria prescribed in paragraph 8 9, subdivision (a) of this section, a current member of the armed services of the United States who presents proper military identification and any member of a recognized veterans' organization of the United States and of any country allied with the United States during current or past wars or through treaty arrangements.

7. 8. "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 on the container by the manufacturer has been removed.

8. 9. "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made only to members, spouses of members, families of members, bona fide guests of members and guests at other events authorized in this title:

(a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that has, as the owner, lessee or occupant, operated an establishment for that purpose in this state.

(b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization that has, as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state.� An American national fraternal organization as used in this subdivision shall actively operate in at least thirty‑six states or have been in active continuous existence for at least twenty years.

(c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph, all of the capital stock of which is owned by the local unit or the members, and that operates the clubroom facilities of the local unit.

(d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse.

(e) A social club with more than one hundred bona fide members who are actual residents of the county in which it is located, that owns, maintains or operates club quarters, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of at least one year.� The club shall have had, during this one‑year period, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club.� The club's membership shall consist of bona fide dues-paying members paying at least $6 per year, payable monthly, quarterly or annually, which have been recorded by the secretary of the club, and the members at the time of application for a club license shall be in good standing having for at least one full year paid dues. At least fifty‑one percent of the members shall have signified their intention to secure a social club license by personally signing a petition, on a form prescribed by the board, which shall also include the correct mailing address of each signer.� The petition shall not have been signed by a member at a date earlier than one hundred eighty days before the filing of the application.� The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that is, or has been, primarily formed or activated to obtain a license to sell liquor, but solely to a bona fide club, where the sale of liquor is incidental to the main purposes of the club.

(f) An airline club operated by or for airlines that are certificated by the United States government and that maintain or operate club quarters located at airports with international status.

9. 10. "Company" or "association", when used in reference to a corporation, includes successors or assigns.

10. 11. "Control" means the power to direct or cause the direction of the management and policies of an applicant or licensee, whether through the ownership of voting securities or a partnership interest, by agreement or otherwise. 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 or licensee or to control in any manner the election of one or more of the directors of the applicant or licensee.� 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 an officer, partner, employee or agent of the person or a spouse, parent or child of the person.� Control is also presumed to exist if a creditor of the applicant or licensee holds a beneficial interest in ten percent or more of the liabilities of the licensee. The presumptions in this paragraph regarding control are rebuttable.

11. 12. "Controlling person" means a person directly or indirectly possessing control of an applicant or licensee.

12. 13. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4‑205.10.

13. 14. "Department" means the department of liquor licenses and control.

14. 15. "Director" means the director of the department of liquor licenses and control.

15. 16. "Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in ardent spirits, and any alcoholic mixture or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication.

17. "e-liquid" means a liquid substance that meets all of the following:

(a) may or may not contain nicotine.

(b) does not contain cannabidiol or cannabis.

16. 18. "Employee" 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.

17. 19. "Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4‑205.04.

18. 20. "Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board.

19. 21. "Legal drinking age" means twenty‑one years of age or older.

22. "Legal tobacco and vapor use age" means twenty-one years of age or older.

20. 23. "License" means a license or an interim retail permit issued pursuant to this title.

21. 24. "Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee.

22. 25. "License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations.

23. 26. "Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full‑time basis.

24. 27. "Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4‑205.08.

25. 28. "Off‑sale retailer" means any person operating a bona fide regularly established retail liquor store selling spirituous liquors, wines and beer, and any established retail store selling commodities other than spirituous liquors and engaged in the sale of spirituous liquors only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises.

26. 29. "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.

27. 30. "Permanent occupancy" means the maximum occupancy of the building or facility as set by the office of the state fire marshal for the jurisdiction in which the building or facility is located.

28. 31. "Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person.

29. 32. "Premises" or "licensed premises" means the area from which the licensee is authorized to sell, dispense or serve spirituous liquors under the provision of the license. Premises or licensed premises includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises.

30. 33. "Registered mail" includes certified mail.

31. 34. "Registered retail agent" means any person who is authorized pursuant to section 4‑222 to purchase spirituous liquors for and on behalf of the person and other retail licensees.

32. 35. "Repeated acts of violence" means:

(a) For licensed premises with a permanent occupancy of two hundred or fewer persons, two or more acts of violence occurring within seven days or three or more acts of violence occurring within thirty days.

(b) For licensed premises with a permanent occupancy of more than two hundred but not more than four hundred persons, four or more acts of violence within thirty days.

(c) For licensed premises with a permanent occupancy of more than four hundred but not more than six hundred fifty persons, five or more acts of violence within thirty days.

(d) For licensed premises with a permanent occupancy of more than six hundred fifty but not more than one thousand fifty persons, six or more acts of violence within thirty days.

(e) For licensed premises with a permanent occupancy of more than one thousand fifty persons, seven or more acts of violence within thirty days.

33. 36. "Sell" includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in.

34. 37. "Spirituous liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, any liquid mixture or preparation, whether patented or otherwise, which produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one‑half of one percent of alcohol by volume.

38. "Tobacco product" means any of the following:

(a) Cigars.

(b) Cigarettes.

(d) Smoking tobacco of any kind.

(e) Chewing tobacco of any kind.

39. "Vapor product":

(a) Means either:

(i) A powered vaporizer that employs a mechanical heating element, battery or circuit, regardless of shape or size, and that converts an e‑liquid to a vapor intended for inhalation.

(ii) A noncombustible product that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of shape or size, and that can be used to produce vapor from an e‑liquid.

(b) Does not include any product that is regulated by the united states food and drug administration under subchapter V of the federal food, drug, and cosmetic act.

35. 40. "Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation.

36. 41. "Vending machine" means a machine that dispenses merchandise through the means of coin, token, credit card or other nonpersonal means of accepting payment for merchandise received.

37. 42. "Veteran" means a person who has served in the United States air force, army, navy, marine corps or coast guard, as an active nurse in the services of the American red cross, in the army and navy nurse corps in time of war, or in any expedition of the armed forces of the United States, and who has received a discharge other than dishonorable.

38. 43. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant or a licensee.

39. 44. "Wine" means the product obtained by the fermentation of grapes, other agricultural products containing natural or added sugar or cider or any such alcoholic beverage fortified with grape brandy and containing not more than twenty‑four percent of alcohol by volume. END_STATUTE

Sec. 3. Section 4-112, Arizona Revised Statutes, is amended to read:

START_STATUTE4-112. Powers and duties of board and director of department of liquor licenses and control; investigations; county and municipal regulation; definition

A. The board shall:

1. Grant and deny applications in accordance with the provisions of this title.

2. Adopt rules in order to carry out the provisions of this section.

3. Hear appeals and hold hearings as provided in this section.

B. Except as provided in subsection A of this section, the director shall administer the provisions of this title, including:

1. Adopting rules:

(a) For carrying out the provisions of this title.

(b) For the proper conduct of the business to be carried on under each specific type of spirituous liquor license.

(c) To enable and assist state officials and political subdivisions to collect taxes levied or imposed in connection with spirituous liquors.

(d) For the issuance and revocation of certificates of registration of retail agents, including provisions governing the shipping, storage and delivery of spirituous liquors by registered retail agents, the keeping of records and the filing of reports by registered retail agents.

(e) To establish requirements for licensees under section 4‑209, subsection B, paragraph 12.

2. Subject to title 41, chapter 4, article 4, employing necessary personnel and fixing their compensation pursuant to section 38‑611.

3. Keeping an index record that is a public record open to public inspection and that contains the name and address of each licensee and the name and address of any person having an interest, either legal or equitable, in each license as shown by any written document that is placed on file in the office of the board.

4. Providing the board with supplies and personnel as directed by the board.

5. Responding in writing to any law enforcement agency that submits an investigative report to the department relating to a violation of this title, setting forth what action, if any, the department has taken or intends to take on the report and, if the report lacks sufficient information or is otherwise defective for use by the department, what the agency must do to remedy the report.

6. Taking steps that are necessary to maintain effective liaison with the department of public safety and all local law enforcement agencies in the enforcement of this title, including the laws of this state against the consumption of spirituous liquor or the use of alternative nicotine products, e‑liquids, tobacco products or vapor products by persons under the legal drinking age or legal tobacco and vapor use age.

7. Providing training to law enforcement agencies in the proper investigation and reporting of violations of this title.

8. Enforcing title 36, chapter 6, article 14.

C. The director shall establish within the department a separate investigations unit that has as its sole responsibility the investigation of compliance with this title, including the investigation of investigating licensees alleged to have sold or distributed spirituous liquor in any form, alternative nicotine products, e-liquids, tobacco products or vapor products to persons under the legal drinking age or legal tobacco and vapor use age.� Investigations conducted by this unit may include covert undercover investigations.

D. All employees of the department of liquor licenses and control, except members of the state liquor board and the director of the department, shall be employed by the department in the manner prescribed by the department of administration.

E. The director may enter into a contract or agreement with any public agency for any joint or cooperative action as provided for by title 11, chapter 7, article 3.

F. The board 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 the production of books, papers and other documents that are necessary for the enforcement of this title. Proceedings held during the course of a confidential investigation are exempt from title 38, chapter 3, article 3.1.� If a person refuses to obey a subpoena or fails to answer questions as provided by this subsection, the board or the director may apply to the superior court in the manner provided in section 12‑2212.� The board or director may serve subpoenas by personal service or certified mail, return receipt requested.

G. The director may:

1. Examine books, records and papers of a licensee.

2. Require applicants, licensees, employees who serve, sell or furnish spirituous liquors to retail customers, managers and managing agents to take training courses approved by the director in spirituous liquor handling and spirituous liquor laws and rules. The director shall adopt rules that set standards for approving training courses. The director may suspend or revoke the previous approval of trainers who do not adhere to course administration requirements prescribed by the department or who do not meet course standards.� If the director suspends or revokes the previous approval of a trainer pursuant to this paragraph, the trainer may appeal to the board pursuant to section 4‑210.02 as if the suspension or revocation was a sanction against a licensee. After January 1, 2019, the rules for on‑sale retailer basic training and on‑sale retailer management training shall include security procedures for security personnel assigned to monitor admission of patrons, interaction with patrons, calls to law enforcement and strategies for use of force and for the use of de-escalation techniques. If the retailer uses a registered security guard, the retailer shall attempt to verify the validity and status of the security guard's registration certificate.� The department's licensed investigators may participate and receive compensation as lecturers at approved training courses within this state's jurisdiction that are conducted by other entities but shall not participate in in‑house training programs for licensees.

3. Delegate to employees of the department authority to exercise powers of the director in order to administer the department.

4. Regulate signs that advertise a spirituous liquor product at licensed retail premises.

5. Cause to be removed from the marketplace spirituous liquor, alternative nicotine products, e‑liquids, tobacco products and vapor products that may be contaminated, illegal or adulterated.

6. Regulate the age and conduct of erotic entertainers at licensed premises. The age limitation governing these erotic entertainers may be different from other employees of the licensee.

7. Issue and enforce cease and desist orders against any person or entity that sells beer, wine, or spirituous liquor, alternative nicotine products, e‑liquids, tobacco products or vapor products without an appropriate license or permit.

8. Confiscate wines carrying a label including a reference to Arizona or any Arizona city, town or place unless at least seventy‑five percent by volume of the grapes used in making the wine were grown in this state.

9. Accept and expend private grants of monies, gifts and devises for conducting educational programs for parents and students on the repercussions of underage alcohol consumption or the use by underage individuals of alternative nicotine products, e‑liquids, tobacco products and vapor products. State general fund monies shall not be expended for the purposes of this paragraph. If the director does not receive sufficient monies from private sources to carry out the purposes of this paragraph, the director shall not provide the educational programs prescribed in this paragraph.� Grant monies received pursuant to this paragraph are nonlapsing and do not revert to the state general fund at the close of the fiscal year.

10. Procure fingerprint scanning equipment and provide fingerprint services to license applicants and licensees.� The department may charge a fee for providing these services.

11. Accept electronic signatures on all department and licensee forms and documents and applications.� The director may adopt requirements that would require facsimile signatures to be followed by original signatures within a specified time period.

12. For use after January 1, 2019, adopt a form that is required to be used by all on-sale retailers that hire or designate employees to serve as security personnel. All security personnel job applicants and employees for on-sale retailers shall complete the form, which shall be notarized, before assignment to a security role.� The form shall require the applicant or other person to disclose whether in the previous five years the person has been a registered sex offender or pled guilty, pled no contest or been convicted of any offense that constitutes assault, homicide, domestic violence, sexual misconduct, misconduct involving a deadly weapon or a drug violation that constitutes the illegal sale, manufacturing, cultivation or transportation for sale of marijuana, a dangerous drug or a narcotic drug. A licensee may not hire or assign to a role as security personnel any person who fails to complete the form or if the form discloses one of the listed offenses within the previous five years. The licensee shall maintain on file affidavits of all security personnel hired or designated by the licensee. The form may not be required for a peace officer who is certified by the Arizona peace officer standards and training board or other security personnel who hold a current security guard registration certificate or armed security guard registration certificate issued pursuant to title 32, chapter 26.

H. A county or municipality may enact and enforce ordinances regulating the age and conduct of erotic entertainers at licensed premises in a manner at least as restrictive as rules adopted by the director.

I. For the purposes of this section, "security personnel" includes individuals whose primary assigned responsibilities include the security and safety of employees and patrons of an on-sale retailer premises.� Security personnel does not include a person whose primary responsibilities include checking the identification cards of patrons to determine compliance with age requirements. END_STATUTE

Sec. 4. Section 4-205.02, Arizona Revised Statutes, is amended to read:

START_STATUTE4-205.02. Restaurant license; issuance; regulatory provisions; expiration; definitions

A. The director may issue a restaurant license to any restaurant in this state 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 director shall issue the license in the name of the restaurant on application for the license by the owner or lessee of the restaurant, provided the applicant is otherwise qualified to hold a spirituous liquor license. The holder of such the license is subject to the penalties prescribed for any violation of the law relating to alcoholic beverages.

C. The holder of a restaurant license may sell and serve spirituous liquors solely for consumption on the licensed premises.� For the purpose of this subsection, "licensed premises" may include rooms, areas or locations in which the restaurant normally sells or serves spirituous liquors pursuant to regular operating procedures and practices and that are contiguous to the restaurant or a noncontiguous patio pursuant to section 4‑101, paragraph 29 32. For the purposes of this subsection, a restaurant licensee must submit proof of tenancy or permission from the landowner or lessor for all property to be included in the licensed premises.

D. In addition to other grounds prescribed in this title on which a license may be revoked, the director may require the holder of a restaurant license issued pursuant to this section to surrender the license in any case in which the licensee ceases to operate as a restaurant, as prescribed in subsection A of this section.� The surrender of a license pursuant to this subsection does not prevent the director from revoking the license for other grounds prescribed in this title or for making deliberate material misrepresentations to the department regarding the licensee's equipment, service or entertainment items or seating capacity in applying for the restaurant license.

E. Neither the director nor the board may initially issue a restaurant license if either finds that there is sufficient evidence that the operation will not satisfy the criteria adopted by the director for issuing a restaurant license described in section 4‑209, subsection B, paragraph 12.� The director shall issue a restaurant license only if the applicant has submitted a plan for the operation of the restaurant. The plan shall be completed on forms provided by the department and shall include listings of all restaurant equipment and service items, the restaurant seating capacity and other information requested by the department to substantiate that the restaurant will operate in compliance with this section.

F. The holder of the license described in section 4‑209, subsection B, paragraph 12 who intends to alter the seating capacity or dimensions of a restaurant facility shall notify the department in advance on forms provided by the department.

G. The director may charge a fee for site inspections conducted before the issuance of a restaurant license.

H. A restaurant applicant or licensee may apply for a permit allowing for the sale of beer for consumption off the licensed premises pursuant to section 4‑244, paragraph 32, subdivision (c) on a form prescribed and furnished by the director. The department shall not issue a permit to a restaurant applicant or licensee that does not meet the requirements in section 4‑207, subsection A. Section 4‑207, subsection B does not apply to this subsection. The permit shall be issued only after the director has determined that the public convenience requires and that the best interest of the community will be substantially served by the issuance of the permit, considering the same criteria adopted by the director for issuing a restaurant license described in section 4‑209, subsection B, paragraph 12. The amount of beer sold under the permit shall not exceed ten percent of gross revenue of spirituous liquor sold by the establishment.� After the permit has been issued, the permit shall be noted on the license itself and in the records of the department. The director may charge a fee for processing the application for the permit and a renewal fee.

I. Notwithstanding any rule adopted by the department, business establishments that relied on a form issued by the department that provides for a small restaurant exemption for fifty or fewer seats before January 31, 2019, are allowed to continue to maintain the capacity of fifty or fewer seats for the duration of the business.� The rights of a business establishment subject to this section are not transferable.

J. For the purposes of this section:

1. "Gross revenue" means the revenue derived from all sales of food and spirituous liquor on the licensed premises, regardless of whether the sales of spirituous liquor are made under a restaurant license issued pursuant to this section or under any other license that has been issued for the premises pursuant to this article.

2. "Restaurant" means an establishment that derives at least forty percent of its gross revenue from the sale of food, 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 fifteen percent of all gross revenue of the restaurant. END_STATUTE

Sec. 5. Section 4-244, Arizona Revised Statutes, is amended to read:

START_STATUTE4-244. Unlawful acts

It is unlawful:

1. For a person to buy for resale, sell or deal in spirituous liquors in this state without first having procured a license duly issued by the board, except that the director may issue a temporary permit of any series pursuant to section 4‑205.05 to a trustee in bankruptcy to acquire and dispose of the spirituous liquor of a debtor.

2. For a person to sell or deal in alcohol for beverage purposes without first complying with this title.

3. For a distiller, vintner, brewer or wholesaler knowingly to sell, dispose of or give spirituous liquor to any person other than a licensee except in sampling wares as may be necessary in the ordinary course of business, except in donating spirituous liquor to a nonprofit organization that has obtained a special event license for the purpose of charitable fund‑raising activities or except in donating spirituous liquor with a cost to the distiller, brewer or wholesaler of up to $500 in a calendar year to an organization that is exempt from federal income taxes under section 501(c) (3), (4), (6) or (7) of the internal revenue code and not licensed under this title.

4. For a distiller, vintner or brewer to require a wholesaler to offer or grant a discount to a retailer, unless the discount has also been offered and granted to the wholesaler by the distiller, vintner or brewer.

5. For a distiller, vintner or brewer to use a vehicle for trucking or transportation of spirituous liquors unless there is affixed to both sides of the vehicle a sign showing the name and address of the licensee and the type and number of the person's license in letters not less than three and one‑half inches in height.

6. For a person to take or solicit orders for spirituous liquors unless the person is a salesman or solicitor of a licensed wholesaler, a salesman or solicitor of a distiller, brewer, vintner, importer or broker or a registered retail agent.

7. For any retail licensee to purchase spirituous liquors from any person other than a solicitor or salesman of a wholesaler licensed in this state.

8. For a retailer to acquire an interest in property owned, occupied or used by a wholesaler in the wholesaler's business, or in a license with respect to the premises of the wholesaler.

9. Except as provided in paragraphs 10 and 11 of this section, for a licensee or other person to sell, furnish, dispose of or give, or cause to be sold, furnished, disposed of or given, to a person under the legal drinking age or for a person under the legal drinking age to buy, receive, have in the person's possession or consume spirituous liquor. This paragraph does not prohibit the employment by an off‑sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least eighteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.

10. For a licensee to employ a person under eighteen years of age to manufacture, sell or dispose of spirituous liquors.� This paragraph does not prohibit the employment by an off‑sale retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premises who is at least eighteen years of age, package or carry merchandise, including spirituous liquor, in unbroken packages, for the convenience of the customer of the employer, if the employer sells primarily merchandise other than spirituous liquor.

11. For an on‑sale retailer to employ a person under eighteen years of age in any capacity connected with the handling of spirituous liquors.� This paragraph does not prohibit the employment by an on‑sale retailer of a person under eighteen years of age who cleans up the tables on the premises for reuse, removes dirty dishes, keeps a ready supply of needed items and helps clean up the premises.

12. For a licensee, when engaged in waiting on or serving customers, to consume spirituous liquor or for a licensee or on‑duty employee to be on or about the licensed premises while in an intoxicated or disorderly condition.

13. For an employee of a retail licensee, during that employee's working hours or in connection with such employment, to give to or purchase for any other person, accept a gift of, purchase for the employee or consume spirituous liquor, except that:

(a) An employee of a licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may give spirituous liquor to or purchase spirituous liquor for any other person.

(b) An employee of an on‑sale retail licensee, during that employee's working hours or in connection with the employment, while the employee is not engaged in waiting on or serving customers, may taste samples of beer or wine of not more than four ounces per day or distilled spirits of not more than two ounces per day provided by an employee of a wholesaler or distributor who is present at the time of the sampling.

(c) An employee of an on‑sale retail licensee, 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 of not more than two ounces per educational session or beer or wine of not more than four ounces per educational session, and provided that a licensee does not have more than two educational sessions in any thirty‑day period.

(d) An unpaid volunteer who is a bona fide member of a club and who is not engaged in waiting on or serving spirituous liquor to customers may purchase for himself and consume spirituous liquor while participating in a scheduled event at the club. An unpaid participant in a food competition may purchase for himself and consume spirituous liquor while participating in the food competition.

(e) An unpaid volunteer of a special event licensee under section 4‑203.02 may purchase and consume spirituous liquor while not engaged in waiting on or serving spirituous liquor to customers at the special event.� This subdivision does not apply to an unpaid volunteer whose responsibilities include verification of a person's legal drinking age, security or the operation of any vehicle or heavy machinery.

14. For a licensee or other person to serve, sell or furnish spirituous liquor to a disorderly or obviously intoxicated person, or for a licensee or employee of the licensee to allow or permit allow a disorderly or obviously intoxicated person to come into or remain on or about the premises, except that a licensee or an employee of the licensee may allow an obviously intoxicated person to remain on the premises for not more than thirty minutes after the state of obvious intoxication is known or should be known to the licensee for a nonintoxicated person to transport the obviously intoxicated person from the premises. For the purposes of this section, "obviously intoxicated" means inebriated to the extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would have been obvious to a reasonable person.

15. For an on‑sale or off‑sale retailer or an employee of such retailer to sell, dispose of, deliver or give spirituous liquor to a person between the hours of 2:00 a.m. and 6:00 a.m., except that a retailer with off‑sale privileges may receive and process orders, accept payment or package, load or otherwise prepare spirituous liquor for delivery at any time, if the actual deliveries to customers are made between the hours of 6:00 a.m. and 2:00 a.m., at which time section 4‑241, subsections A and K apply.

16. For a licensee or employee to knowingly permit allow any person on or about the licensed premises to give or furnish any spirituous liquor to any person under twenty‑one years of age or knowingly permit allow any person under twenty‑one years of age to have in the person's possession spirituous liquor on the licensed premises.

17. For an on‑sale retailer or an employee of such retailer to allow a person to consume or possess spirituous liquors on the premises between the hours of 2:30 a.m. and 6:00 a.m.

18. For an on‑sale retailer to permit allow an employee or for an employee to solicit or encourage others, directly or indirectly, to buy the employee drinks or anything of value in the licensed premises during the employee's working hours. An on‑sale retailer shall not serve employees or allow a patron of the establishment to give spirituous liquor to, purchase liquor for or drink liquor with any employee during the employee's working hours.

19. For an off‑sale retailer or employee to sell spirituous liquor except in the original unbroken container, to permit allow spirituous liquor to be consumed on the premises or to knowingly permit allow spirituous liquor to be consumed on adjacent property under the licensee's exclusive control.

20. For a person to consume spirituous liquor in a public place, thoroughfare or gathering. The license of a licensee permitting allowing a violation of this paragraph on the premises shall be subject to revocation. This paragraph does not apply to the sale of spirituous liquors on the premises of and by an on‑sale retailer. This paragraph also does not apply to a person consuming beer or wine from a broken package in a public recreation area or on private property with permission of the owner or lessor or on the walkways surrounding such private property or to a person consuming beer or wine from a broken package in a public recreation area as part of a special event or festival that is conducted under a license secured pursuant to section 4‑203.02 or 4‑203.03.

21. For a person to have possession of or to transport spirituous liquor that is manufactured in a distillery, winery, brewery or rectifying plant contrary to the laws of the United States and this state. Any property used in transporting such spirituous liquor shall be forfeited to the state and shall be seized and disposed of as provided in section 4‑221.

22. For an on‑sale retailer or employee to allow a person under the legal drinking age to remain in an area on the licensed premises during those hours in which its 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 legal drinking age. An on‑sale retailer may designate an area of the licensed premises as an area in which spirituous liquor will not be sold or consumed for the purpose of allowing underage persons on the premises if the designated area is separated by a physical barrier and at no time will underage persons have access to the area in which spirituous liquor is sold or consumed. A licensee or an employee of a licensee may require a person who intends to enter a licensed premises or a portion of a licensed premises where persons under the legal drinking age are prohibited under this section to exhibit an instrument of identification that is acceptable under section 4‑241 as a condition of entry or may use a biometric identity verification device to determine the person's age as a condition of entry. The director, or a municipality, may adopt rules to regulate the presence of underage persons on licensed premises provided the rules adopted by a municipality are more stringent than those adopted by the director.� The rules adopted by the municipality shall be adopted by local ordinance and shall not interfere with the licensee's ability to comply with this paragraph. This paragraph does not apply:

(a) If the person under the legal drinking age is accompanied by a spouse, parent or legal guardian of legal drinking age or is an on‑duty employee of the licensee.

(b) If the owner, lessee or occupant of the premises is a club as defined in section 4‑101, paragraph 8 9, subdivision (a) and the person under the legal drinking age is any of the following:

(i) An active duty military service member.

(ii) A veteran.

(iii) A member of the United States army national guard or the United States air national guard.

(iv) A member of the United States military reserve forces.

23. For an on‑sale retailer or employee to conduct drinking contests, to sell or deliver to a person an unlimited number of spirituous liquor beverages during any set period of time for a fixed price, to deliver more than fifty ounces of beer, one liter of wine or four ounces of distilled spirits in any spirituous liquor drink to one person at one time for that person's consumption or to advertise any practice prohibited by this paragraph. The provisions of this paragraph do not prohibit an on‑sale retailer or employee from selling and delivering an opened, original container of distilled spirits if:

(a) Service or pouring of the spirituous liquor is provided by an employee of the on‑sale retailer.

(b) The employee of the on‑sale retailer monitors consumption to ensure compliance with this paragraph. Locking devices may be used, but are not required.

24. For a licensee or employee to knowingly permit allow the unlawful possession, use, sale or offer for sale of narcotics, dangerous drugs or marijuana on the premises. For the purposes of this paragraph, "dangerous drug" has the same meaning prescribed in section 13‑3401.

25. For a licensee or employee to knowingly permit allow prostitution or the solicitation of prostitution on the premises.

26. For a licensee or employee to knowingly permit allow unlawful gambling on the premises.

27. For a licensee or employee to knowingly permit allow trafficking or attempted trafficking in stolen property on the premises.

28. For a licensee or employee to fail or refuse to make the premises or records available for inspection and examination as provided in this title or to comply with a lawful subpoena issued under this title.

29. For any person other than a peace officer while on duty or off duty or a member of a sheriff's volunteer posse while on duty who has received firearms training that is approved by the Arizona peace officer standards and training board, a retired peace officer as defined in section 38‑1113 or an honorably retired law enforcement officer who has been issued a certificate of firearms proficiency pursuant to section 13‑3112, subsection T, the licensee or an employee of the licensee acting with the permission of the licensee to be in possession of a firearm while on the licensed premises of an on‑sale retailer. This paragraph does not include a situation in which a person is on licensed premises for a limited time in order to seek emergency aid and such person does not buy, receive, consume or possess spirituous liquor.� This paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) The exhibition or display of a firearm in conjunction with a meeting, show, class or similar event.

(c) A person with a permit issued pursuant to section 13‑3112 who carries a concealed handgun on the licensed premises of any on‑sale retailer that has not posted a notice pursuant to section 4-229.

30. For a licensee or employee to knowingly permit allow a person in possession of a firearm other than a peace officer while on duty or off duty or a member of a sheriff's volunteer posse while on duty who has received firearms training that is approved by the Arizona peace officer standards and training board, a retired peace officer as defined in section 38‑1113 or an honorably retired law enforcement officer who has been issued a certificate of firearms proficiency pursuant to section 13‑3112, subsection T, the licensee or an 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. It is a defense to action under this paragraph if the licensee or employee requested assistance of a peace officer to remove such person. This paragraph does not apply to:

(a) Hotel or motel guest room accommodations.

(b) The exhibition or display of a firearm in conjunction with a meeting, show, class or similar event.

31. For any person in possession of a firearm while on the licensed premises of an on-sale retailer to consume spirituous liquor. This paragraph does not prohibit the consumption of small amounts of spirituous liquor by an undercover peace officer on assignment to investigate the licensed establishment.

32. For a licensee or employee to knowingly permit allow spirituous liquor to be removed from the licensed premises, except in the original unbroken package. This paragraph does not apply to any of the following:

(a) A person who removes a bottle of wine that has been partially consumed in conjunction with a purchased meal from licensed premises if a cork is inserted flush with the top of the bottle or the bottle is otherwise securely closed.

(b) A person who is in licensed premises that have noncontiguous portions that are separated by a public or private walkway or driveway and who takes spirituous liquor from one portion of the licensed premises across the public or private walkway or driveway directly to the other portion of the licensed premises.

(c) A licensee of a bar, beer and wine bar, liquor store, beer and wine store, microbrewery or restaurant that has a permit pursuant to section 4‑205.02, subsection H that dispenses beer only in a clean container composed of a material approved by a national sanitation organization with a maximum capacity that does not exceed one gallon and not for consumption on the premises if:

(i) The licensee or the licensee's employee fills the container at the tap at the time of sale.

(ii) The container is sealed and displays a government warning label.

(iii) The dispensing of that beer is not done through a drive‑through or walk‑up service window.

33. For a person who is obviously intoxicated to buy or attempt to buy spirituous liquor from a licensee or employee of a licensee or to consume spirituous liquor on licensed premises.

34. For a person under twenty-one years of age to drive or be in physical control of a motor vehicle while there is any spirituous liquor in the person's body.

35. For a person under twenty-one years of age to operate or be in physical control of a motorized watercraft that is underway while there is any spirituous liquor in the person's body. For the purposes of this paragraph, "underway" has the same meaning prescribed in section 5‑301.

36. For a licensee, manager, employee or controlling person to purposely induce a voter, by means of alcohol, to vote or abstain from voting for or against a particular candidate or issue on an election day.

37. For a licensee to fail to report an occurrence of an act of violence to either the department or a law enforcement agency.

38. For a licensee to use a vending machine for the purpose of dispensing spirituous liquor.

39. For a licensee to offer for sale a wine carrying a label including a reference to Arizona or any Arizona city, town or geographic location unless at least seventy‑five percent by volume of the grapes used in making the wine were grown in Arizona.

40. For a retailer to knowingly allow a customer to bring spirituous liquor onto the licensed premises, except that an on‑sale retailer may allow a wine and food club to bring wine onto the premises for consumption by the club's members and guests of the club's members in conjunction with meals purchased at a meeting of the club that is conducted on the premises and that at least seven members attend. An on‑sale retailer that allows wine and food clubs to bring wine onto its premises under this paragraph shall comply with all applicable provisions of this title and any rules adopted pursuant to this title to the same extent as if the on‑sale retailer had sold the wine to the members of the club and their guests. For the purposes of this paragraph, "wine and food club" means an association that has more than twenty bona fide members paying at least $6 per year in dues and that has been in existence for at least one year.

41. For a person under twenty‑one years of age to have in the person's body any spirituous liquor. In a prosecution for a violation of this paragraph:

(a) Pursuant to section 4‑249, it is a defense that the spirituous liquor was consumed in connection with the bona fide practice of a religious belief or as an integral part of a religious exercise and in a manner not dangerous to public health or safety.

(b) Pursuant to section 4‑226, it is a defense that the spirituous liquor was consumed for a bona fide medicinal purpose and in a manner not dangerous to public health or safety.

42. For an employee of a licensee to accept any gratuity, compensation, remuneration or consideration of any kind to either:

(a) Permit Allow a person who is under twenty-one years of age to enter any portion of the premises where that person is prohibited from entering pursuant to paragraph 22 of this section.

(b) Sell, furnish, dispose of or give spirituous liquor to a person who is under twenty‑one years of age.

43. For a person to purchase, offer for sale or use any device, machine or process that mixes spirituous liquor with pure oxygen or another gas to produce a vaporized product for the purpose of consumption by inhalation or to allow patrons to use any item for the consumption of vaporized spirituous liquor.

44. For a retail licensee or an employee of a retail licensee to sell spirituous liquor to a person if the retail licensee or employee knows the person intends to resell the spirituous liquor.

45. Except as authorized by paragraph 32, subdivision (c) of this section, for a person to reuse a bottle or other container authorized for use by the laws of the United States or any agency of the United States for the packaging of distilled spirits or for a person to increase the original contents or a portion of the original contents remaining in a liquor bottle or other authorized container by adding any substance.

46. For a direct shipment licensee, a farm winery licensee or an employee of those licensees to sell, dispose of, deliver or give spirituous liquor to an individual purchaser between the hours of 2:00 a.m. and 6:00 a.m., except that a direct shipment licensee or a farm winery licensee may receive and process orders, accept payment, package, load or otherwise prepare wine for delivery at any time without complying with section 4‑241, subsections A and K, if the actual deliveries to individual purchasers are made between the hours of 6:00 a.m. and 2:00 a.m. and in accordance with section 4‑203.04 for direct shipment licensees and section 4‑205.04 for farm winery licensees. END_STATUTE

Sec. 6. Title 4, Arizona Revised Statutes, is amended by adding chapter 4, to read:

CHAPTER 4

ALTERNATIVE NICOTINE PRODUCTS, E-LIQUIDS,

TOBACCO PRODUCTS AND VAPOR PRODUCTS

ARTICLE 1. LICENSING AND SELLING OF ALTERNATIVE NICOTINE

PRODUCTS, E‑LIQUIDS, TOBACCO PRODUCTS AND VAPOR PRODUCTS

START_STATUTE4-401. Licensing of alternative nicotine product, e-liquid, tobacco and vapor retailers; fee

A. A person desiring a license to sell alternative nicotine products, e-liquids, tobacco products or vapor products shall apply to the director on a form furnished by the director.

B. A person who files an application for a license within a city or town shall file a copy of the application with the director and a copy with the clerk of the city or town.� if the license is for a location in an unincorporated area of a county, a copy of the application shall also be filed with the clerk of the county.

C. The director may determine the amount of and charge a fee for an application for an initial license or renewal license, which shall be paid at the time of application.� A license is valid for two years. a licensee who fails to renew the license on or before the expiration date may be subject to a penalty fee in addition to the renewal fee.

D. A license renewal that is deposited, properly addressed, with postage prepaid and placed in an official depository of the united states mail on or before the license expiration date is deemed to be filed and received by the department on the date shown by the postmark or other official mark of the united states postal service. If the license expiration date falls on a Saturday, Sunday or other legal holiday, the renewal is considered timely if it is received by the department on the next business day.� the director may waive a late penalty if good cause is shown by the licensee.� A licensee who fails to renew the license on or before the license expiration date may not sell alternative nicotine products, e-liquids, tobacco products or vapor products until the license is renewed.� A license that is not renewed within sixty days after the license expiration date is deemed terminated.� the director may renew a terminated license if good cause is shown by the licensee.

E. The department may issue licenses with staggered renewal dates to distribute the renewal workload as uniformly as practicable throughout the twelve months of the calendar year.� If a license is issued less than six months before the scheduled renewal date of the license as a result of the department's staggered license renewal system, one-half of the annual license fee shall be charged.

F. The department shall issue a license to sell alternative nicotine products, e-liquids, tobacco products and vapor products only after the applicant satisfactorily shows its qualifications. All licensing functions may be conducted electronically.

G. The license authorizes the licensee to sell alternative nicotine products, e-liquids, tobacco products or vapor products only at the location provided on the license.

H. A license for the sale of alternative nicotine products, e‑liquids, tobacco products and vapor products is not transferable.� the licensee shall report any change in ownership of the business of the licensee, directly or indirectly, as defined by rule, to the director within thirty days following the change in ownership.

I. All applications for a new license shall be filed with and determined by the director.

J. An alternative nicotine product, e-liquid, tobacco product and vapor product license may not be leased or subleased.

K. If a person other than those persons initially licensed acquires control of a corporation that holds a license, the person shall file notice of the acquisition with the director within thirty days after the acquisition of control and a list of officers, directors or other controlling persons.� There is no acquisition of control if a new person is added to the ownership of a licensee's business and the controlling persons remain identical to the controlling persons that have been previously disclosed to the director as part of the licensee's existing ownership.� All officers, directors or other controlling persons shall meet the qualifications for licensure as prescribed by rule. The restructuring of a licensee's business is not acquisition of control, a transfer of a license for the sale of alternative nicotine products, e‑liquids, tobacco products and vapor products or the issuance of a new license to sell alternative nicotine products, e-liquids, tobacco products and vapor products if both of the following apply:

1. All of the controlling persons of the licensee and the new business entity are identical.

2. There is no change in control or beneficial ownership.

L. The department may not issue a license to any person who within one year before application has had the person's license revoked.

M. A hearing conducted by the board shall conform to the requirements of title 41, chapter 6, article 10.� At the hearing, an attorney, corporate officer or employee of a corporation may represent the corporation.

N. The expiration, cancellation, revocation, reversion, surrender, acceptance of surrender or termination in any other manner of a license does not prevent the initiation or completion of a disciplinary proceeding pursuant to this section against the licensee or license.

O. The director may determine the amount of and charge a fee for the issuance and renewal of an alternative nicotine product, e-liquid, tobacco and vapor license. END_STATUTE

START_STATUTE4-402. Selling or giving of alternative nicotine products, e‑liquids, tobacco products or vapor products to underage persons; illegally obtaining alternative nicotine products, e-liquids, tobacco products or vapor products by underage persons; violation; classification

A. If a licensee, a licensee's employee or any other person questions or has reason to question that the person ordering, purchasing, attempting to purchase or otherwise procuring or attempting to procure the serving or delivery of alternative nicotine products, e-liquids, tobacco products or vapor products is under the legal drinking age or legal tobacco and vapor use age, the licensee, licensee's employee or other person shall do all of the following:

1. Demand identification from the person.

2. Examine the identification to determine that the identification reasonably appears to be a valid, unaltered identification that has not been defaced.

3. Examine the photograph in the identification and determine that the person reasonably appears to be the same person in the identification.

4. Determine that the date of birth in the identification indicates the person is not under the legal drinking age or legal tobacco and vapor use age.

B. A licensee or licensee's employee who follows the procedures prescribed in subsection a of this section and who records and retains a record of the person's identification on this particular visit, or a licensee or licensee's employee who uses a biometric identity verification device to verify a person is not under the legal drinking age or legal tobacco and vapor use age is not in violation of this section or section 4-403. This defense applies to actions of the licensee and all employees of the licensee after the procedure prescribed in subsection a of this section has been employed during the particular visit to the licensed premises by the person.� A licensee or licensee's employee is not required to demand and examine identification of a person pursuant to subsection a of this section if, during this visit to the licensed premises by the person, the licensee or licensee's employee has previously followed the procedure prescribed in subsection a of this section.

C. Proof that the licensee or licensee's employee followed the entire procedure prescribed in subsection a of this section but did not record and retain a record as prescribed in subsection b of this section is an affirmative defense to a criminal charge under this section or section 13‑3622, or both.� This defense applies to actions of the licensee and the licensee's employees after the procedure has been employed during the particular visit to the licensed premises by the person.

D. A licensee or licensee's employee who has not recorded and retained a record of the identification prescribed by subsection B of this section is presumed not to have followed any of the procedures prescribed in subsection a of this section.

E. For the purposes of section 4-403, a licensee or licensee's employee who has not recorded and retained a record of the identification prescribed by subsection b of this section is presumed to know that the person attempting to purchase alternative nicotine products, e-liquids, tobacco products or vapor products is under the legal tobacco and vapor use age.

F. It is a defense to a violation of subsection a of this section if the person ordering, purchasing, attempting to purchase or otherwise procuring or attempting to procure alternative nicotine products, e‑liquids, tobacco products or vapor products is not under the legal drinking age or legal tobacco and vapor use age.

G. The defenses provided in this section do not apply to a licensee or licensee's employee who has actual knowledge that the person exhibiting the identification is under the legal drinking age or legal tobacco and vapor use age.

H. The following records constitute acceptable forms for recording the person's identification:

1. A writing containing the type of identification, the date of issuance of the identification, the name on the identification, the date of birth on the identification and the signature of the person.

2. An electronic file or printed document produced by a device that reads the person's age from the identification.

3. A dated and signed photocopy of the identification.

4. A photograph of the identification.

5. A digital copy of the identification.

I. Sales of alternative nicotine products, e-liquids, tobacco products or vapor products may not be made using a drive-through or other physical feature of the licensed premises that allows a customer to purchase alternative nicotine products, e-liquids, tobacco products or vapor products without leaving the person's vehicle.

J. The following written instruments constitute the only identification that is acceptable under subsection a of this section:

1. An unexpired driver license issued by this state. A driver license that is issued to a person who is under twenty-one years of age does not constitute acceptable identification thirty days after the person reaches twenty-one years of age.

2. An unexpired driver license issued by any other state, the District of Columbia, any territory of the United States or Canada if the license includes a picture of the person and the person's date of birth.

3. An unexpired nonoperating identification license issued pursuant to section 28-3165. An unexpired nonoperating license that is issued to a person who is under twenty-one years of age does not constitute acceptable identification thirty days after the person reaches twenty-one years of age.

4. A form of identification license issued by any other state, the District of Columbia, any territory of the United States or Canada if the license is substantially equivalent to a nonoperating identification license issued pursuant to section 28-3165 and includes a picture of the person and the person's date of birth.

5. An unexpired armed forces identification card that includes the person's picture and date of birth.

6. A valid unexpired passport or a valid unexpired resident alien card that contains a photograph of the person and the person's date of birth.

K. A person who is under the legal drinking age or legal tobacco and vapor use age and who misrepresents the person's age to any person by means of a written instrument of identification with the intent to induce a person to sell, give or furnish alternative nicotine products, e‑liquids, tobacco products or vapor products is guilty of a petty offense.

L. A person who is under the legal drinking age or legal tobacco and vapor use age and who solicits another person to purchase, sell, give or furnish alternative nicotine products, e-liquids, tobacco products or vapor products is guilty of a petty offense.

M. A person who is under the legal drinking age or legal tobacco and vapor use age and who uses a fraudulent or false written instrument of identification or identification of another person or who uses a valid license or identification of another person to purchase alternative nicotine products, e-liquids, tobacco products or vapor products is guilty of a petty offense.

N. A person who uses a driver license or nonoperating identification license in violation of subsection M of this section is subject to suspension of the driver license or nonoperating identification license as provided in section 13-3622.� If a person does not have a valid driver license or nonoperating identification license and uses a driver license or nonoperating identification license of another person in violation of subsection M of this section the other person's right to apply for a driver license or nonoperating identification license may be suspended as provided by section 4-403.

O. A person who knowingly influences the sale or giving of alternative nicotine products, e‑liquids, tobacco products or vapor products to a person under the legal drinking age or legal tobacco and vapor use age by misrepresenting the age of such person or who orders, requests, receives or procures alternative nicotine products, e-liquids, tobacco products or vapor products from any licensee, licensee's employee or other person with the intent of selling or giving it to a person under the legal drinking or tobacco and vapor use age is guilty of a petty offense.� In addition to other penalties provided by law, a judge may suspend a driver license issued to or the driving privilege of a person for not more than thirty days for a first conviction and not more than six months for a second or subsequent conviction under this subsection.

P. A peace officer shall forward or electronically transfer to the director of the department of transportation the affidavit required if the peace officer has arrested a person for the commission of an offense for which, on conviction, suspension of the license or privilege to operate a motor vehicle may be required by section 13-3622, or if the peace officer has confiscated a false identification document used by the person to purchase alternative nicotine products, e-liquids, tobacco products or vapor products.

Q. A person who acts under a program of testing compliance with this title that is approved by the director is not in violation of section 13-3622.

R. Law enforcement agencies may use persons who are under the legal drinking age or legal tobacco and vapor use age for the purchase of alternative nicotine products, e‑liquids, tobacco products or vapor products to test compliance with this section and section 4-403, subsection A, paragraph 3 by a licensee if the law enforcement agency has reasonable suspicion that the licensee is violating this section or section 4-403, subsection A, paragraph 3.� A person who is under the legal drinking age or legal tobacco and vapor use age and who purchases or attempts to purchase alternative nicotine products, e-liquids, tobacco or vapor products under the direction of a law enforcement agency pursuant to this subsection is immune from prosecution for that purchase or attempted purchase.� Law enforcement agencies may use a person under the legal drinking age or legal tobacco and vapor use age pursuant to this subsection only if:

1. The person is at least fifteen but not more than nineteen years of age.

2. The person is not employed on an incentive or quota basis.

3. The person's appearance is that of a person who is under the legal drinking age or legal tobacco and vapor use age.

4. A photograph of the person is taken not more than twelve hours before the purchase or attempted purchase. The photograph shall accurately depict the person's appearance and attire. A licensee or licensee's employee who is cited for selling alternative nicotine products, e‑liquids, tobacco products or vapor products to a person under the legal drinking age or legal tobacco and vapor use age pursuant to this subsection is allowed to inspect the photograph immediately after the citation is issued. The person's appearance at any trial or administrative hearing that results from a citation may not be substantially different from the person's appearance at the time the citation was issued.

5. The person places, receives and pays for the person's order of alternative nicotine products, e-liquids, tobacco products or vapor products. An adult may not accompany the person onto the premises of the licensee.

6. The person does not use any alternative nicotine product, e‑liquid, tobacco product or vapor product.

S. The department may adopt rules to carry out the purposes of this section.

T. This section does not limit the role of the attorney general in enforcing the laws of this state regarding the sale or transfer of alternative nicotine products, e‑liquids, tobacco products and vapor products to persons under the legal drinking age or legal tobacco and vapor use age. END_STATUTE

START_STATUTE4-403. Revocation; suspension; refusal to renew; notice; complaints; hearing; defense

A. After notice and hearing, the director may suspend, revoke or refuse to renew any license issued pursuant to this chapter for any of the following reasons:

1. A person buys for resale, sells or deals in alternative nicotine products, e‑liquids, tobacco products or vapor products in this state without first having procured a license duly issued by the department, except that the director may issue a temporary permit to a trustee in bankruptcy to acquire and dispose of the alternative nicotine products, e‑liquids, tobacco products or vapor products of a debtor.

2. A person sells or deals in alternative nicotine products, e‑liquids, tobacco products or vapor products without first complying with this title.

3. A licensee or other person sells, furnishes, disposes of or gives, or causes to be sold, furnished, disposed of or given, to a person under the legal drinking age or legal tobacco and vapor use age or a person under the legal drinking age or legal tobacco and vapor use age buys, receives, has in the person's possession or uses alternative nicotine products, e‑liquids, tobacco products or vapor products. This paragraph does not prohibit the employment by a retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premise who is at least eighteen years of age, package or carry merchandise, including alternative nicotine products, e‑liquids, tobacco products and vapor products for the convenience of the customer of the employer, if the employer sells primarily merchandise other than alternative nicotine products, e‑liquids, tobacco products and vapor products.

4. A person employs a person under eighteen years of age to sell or dispose of alternative nicotine products, e‑liquids, tobacco products or vapor products.� This paragraph does not prohibit the employment by a retailer of persons who are at least sixteen years of age to check out, if supervised by a person on the premise who is at least eighteen years of age, package or carry merchandise, including alternative nicotine products, e‑liquids, tobacco products and vapor products for the convenience of the customer of the employer, if the employer sells primarily merchandise other than alternative nicotine products, e‑liquids, tobacco products and vapor products.

5. A retailer employs a person under eighteen years of age in any capacity connected with the handling of alternative nicotine products, e‑liquids, tobacco products and vapor products.

6. A licensee or employee knowingly allows any person on or about the premises to give or furnish any alternative nicotine products, e‑liquids, tobacco products or vapor products to any person under the legal drinking age or legal tobacco and vapor use age or knowingly allows any person under the legal drinking age or legal tobacco and vapor use age to have in the person's possession alternative nicotine products, e‑liquids, tobacco products or vapor products on the premises.

7. A licensee uses a vending machine for the purpose of dispensing alternative nicotine products, e‑liquids, tobacco products or vapor products.

8. An employee of a licensee accepts any gratuity, compensation, remuneration or consideration of any kind to sell, furnish, dispose of or give alternative nicotine products, e‑liquids, tobacco products or vapor products to a person under the legal drinking age or legal tobacco and vapor use age. for the purposes of this paragraph, acts or omissions of an employee of a licensee that violate this title or rules adopted pursuant to this title are deemed acts or omissions of the licensee.

9. A licensee or licensee's employee sells alternative nicotine products, e‑liquids, tobacco products or vapor products to a person if the licensee or employee knows the person intends to resell the alternative nicotine products, e‑liquids, tobacco products or vapor products.

10. The licensee or controlling person knowingly files with the department an application or other document that contains material information that is false or misleading or while under oath knowingly gives testimony in an investigation or other proceeding under this title that is false or misleading.

11. The licensed business is delinquent for more than one hundred twenty days in the payment of taxes, penalties or interest in an amount that exceeds $250 to this state or any political subdivision of this state.

12. The licensee or controlling person obtains, assigns, transfers or sells an alternative nicotine product, e‑liquid, tobacco and vapor license without compliance with this title or leases or subleases an alternative nicotine product, e‑liquid, tobacco and vapor license.

13. The licensee fails to keep for two years and make available to the department on reasonable request all invoices, records, bills or other papers and documents relating to the purchase, sale and delivery of alternative nicotine products, e‑liquids, tobacco products and vapor products.

14. The licensee or controlling person is convicted of a felony, except that for a conviction of a corporation to serve as a reason for any action by the director, the conduct that constitutes the corporate offense and that was the basis for the felony conviction must have been engaged in, authorized, solicited, commanded or recklessly tolerated by the directors of the corporation or by a high managerial agent acting within the scope of employment. For the purposes of this paragraph, "high managerial agent" means an officer of a corporation or any other agent of the corporation in a position of comparable authority with respect to the formulation of corporate policy.

15. The licensee or controlling person violates or fails to comply with this title, any rule adopted pursuant to this title or any tobacco or vapor law of this state or any other state.

16. The licensee violates an order of the board.

B. The director shall receive all complaints of alleged violations of this chapter and is responsible for the investigation of all allegations of a violation of, or noncompliance with, this title, any rule adopted pursuant to this title or any condition imposed on the licensee by the license.� A law enforcement agency of a city or county may initiate a compliant with the department regarding a violation of this chapter.� When the director receives three complaints from any law enforcement agency resulting from three separate incidents at a licensed establishment within a twelve-month period, the director shall transmit a written report to the board setting forth the complaints, the results of any investigation conducted by the law enforcement agency or the department relating to the complaints and a history of all prior complaints against the licensee and their disposition. The board shall review the report and may direct the director to conduct further investigation of a complaint or to serve a licensee with a complaint and notice of a hearing pursuant to subsection c of this section.

C. On the director's initiation of an investigation or on the receipt of a complaint and an investigation of the complaint as deemed necessary, the director may cause a complaint and notice of a hearing to be directed to the licensee that states the violations alleged against the licensee and that directs the licensee, within fifteen days after service of the complaint and notice of a hearing, to appear by filing with the director an answer to the complaint. Failure of the licensee to answer may be deemed an admission by the licensee of commission of the act charged in the complaint.� The director may then vacate the hearing and impose any sanction provided by this chapter. The director may waive any sanction for good cause shown, including excusable neglect.� With respect to any violation of this title or any rule adopted pursuant to this title that is based on the act or omission of a licensee's employee, the director shall consider mitigating evidence presented by the licensee and established by a preponderance of the evidence that the employee acted intentionally and in violation of the express direction or policy adopted by the licensee and communicated to the employee.� The director may set the hearing before the director or an administrative law judge on any of the grounds stated in subsection a of this section.� Instead of issuing a complaint, the director may provide for informal disposition of the matter by consent agreement or may issue a written warning to the licensee. If a warning is issued, the licensee may reply in writing and the director shall keep a record of the warning and the reply.

D. A hearing shall conform to the requirements of title 41, chapter 6, article 10. At the hearing, an attorney, corporate officer or employee of a corporation may represent the corporation. The revoking, suspending or refusing to renew a license for unpaid taxes, penalties or interest pursuant to subsection a, paragraph 11 of this section is a contested case with the department of revenue pursuant to section 42-1251.01.

E. The expiration, cancellation, revocation, reversion, surrender, acceptance of surrender or termination in any other manner of a license does not prevent the initiation or completion of a disciplinary proceeding pursuant to this section against the licensee or license. END_STATUTE

START_STATUTE4-404. Appeals

A. A decision issued by the director is not final for purposes of appeal to the superior court until it has first been appealed to and ruled on by the board. Any aggrieved party may appeal any final decision of the director regarding applicants or licensees to the board based on a contention that the decision was any of the following:

1. Founded on or contained errors of law that shall specifically include errors of construction or application of any relevant rules.

2. Unsupported by any competent evidence as disclosed by the entire record.

3. Materially affected by unlawful procedures.

4. Based on a violation of any constitutional provision.

5. Arbitrary or capricious.

B. The aggrieved party shall file the appeal in writing with the department within fifteen days after service of the notice of the decision of the director. The decision of the director is suspended until the determination of any appeal by the board.

C. The board or an administrative law judge shall conduct a hearing on the appeal pursuant to title 41, chapter 6, article 10 and may accept any relevant and material evidence and testimony and exercise the rights prescribed by section 4-112, subsection f or section 12-2212. At the hearing, an attorney, corporate officer or employee of a corporation may represent the corporation. The department shall prepare an official record of the hearing, including all testimony recorded mechanically or stenographically and all exhibits introduced. The department is not required to transcribe the record except pursuant to an appeal to the superior court, except that, on written request and receipt of a fee for transcribing the record, the department may transcribe the record or allow for its transcription by the person requesting.

D. The board may affirm, reverse or modify any decision issued by the director. END_STATUTE

START_STATUTE4-405. Civil penalty; authority; training

A. In lieu of or in addition to the suspension or revocation of or refusal to renew a license authorized by section 4-403. The director may impose a civil penalty of at least $200 and not more than $3,000 for each violation.� The licensee is entitled to appeal the decision of the director to the board. The board may affirm, modify or reverse the finding and decision of the director and may decrease the civil penalty imposed by the director.

B. The director may require a licensee to pay a civil penalty assessed pursuant to subsection A of this section in a single payment or installment payments.

C. In addition to the imposition of any other penalty authorized by this title, the director may impose a requirement that the licensee or other person attend a training program approved by the department. END_STATUTE

START_STATUTE4-406. Injunctions

If the board or the director has reasonable grounds to believe that a person is violating section 4-403 or is selling or dealing in alternative nicotine products, e‑liquids, tobacco products or vapor products without a valid license, permit or registration in violation of this title, the board or the director may apply to the superior court for a temporary restraining order and other injunctive relief prohibiting the specific acts complained of by the board or the director. END_STATUTE

START_STATUTE4-407. Judicial review; bond

A. Except as provided in section 41-1092.08, subsection H, final decisions of the board are subject to judicial review pursuant to title 12, chapter 7, article 6.

B. In the case of any judicial review of a decision of the department, the director may require the posting of a bond with the court to reimburse the department for reasonable costs in transcribing and preparing the record of the department. The bond is payable to the department if the court awards costs to the department pursuant to section 12-912. END_STATUTE

START_STATUTE4-408. Local ordinances; regulation; licensing; prohibitions

A city, town or county may not adopt ordinances or regulations in conflict with this chapter or any rules adopted pursuant to this chapter, including ordinances or regulations pertaining to hours and days of alternative nicotine product, e‑liquid, tobacco product and vapor product sales.� A city, town or county may not limit any right granted by the license, by this chapter or by any rules adopted pursuant to this chapter.� A city, town or county may enforce lawful zoning requirements and adopt lawful and reasonable advertising restrictions on billboards within three hundred feet of school zones.� Zoning may not be a basis for protesting or denying a license under this chapter. END_STATUTE

Sec. 7. Section 13-3622, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3622. Furnishing, illegally accepting or receiving or obtaining tobacco products, e‑liquids, alternative nicotine products, vapor products or tobacco or shisha instruments or paraphernalia; underage persons; military personnel; classification; penalties; exceptions; definitions

A. A person who knowingly sells, gives or furnishes a tobacco product, an e‑liquid, a vapor product, an alternative nicotine product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco, e‑liquids, alternative nicotine products or shisha, including a hookah or waterpipe, to a minor person who is under twenty-one years of age is guilty of a petty offense.

B. A minor person who is under twenty‑one years of age and who buys, or has in his the person's possession or who knowingly accepts or receives from any other person, a tobacco product, an e‑liquid, an alternative nicotine product, a vapor product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco, e‑liquids, alternative nicotine products or shisha, including a hookah or waterpipe, is guilty of a petty offense, and if the offense involves any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco, e‑liquids, alternative nicotine products or shisha, shall pay a fine of not less than one hundred dollars $100 or shall perform not less than thirty hours of community restitution.

C. A minor person who is under twenty‑one years of age and who misrepresents the minor's person's age to any other person by means of a written instrument of identification with the intent to induce the other person to sell, give or furnish a tobacco product, an e‑liquid, an alternative nicotine product, a vapor product or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco, e‑liquids, alternative nicotine products or shisha, including a hookah or waterpipe, in violation of subsection A or B of this section is guilty of a petty offense and, notwithstanding section 13‑802, shall pay a fine of not more than five hundred dollars $500.

D. In addition to any other penalty prescribed by law, the court may suspend the privilege to drive or a nonoperating identification license of a person who is under eighteen years of age for a period up to one hundred eighty days on receiving the record of the person's first conviction for a violation of subsection c of this section.

E. In addition to any other penalty prescribed by law and fine prescribed by this section, a person who is convicted of a violation of this section shall pay a fine of at least $500.

D. F. This section does not apply to any of the following:

1. Cigars, cigarettes or cigarette papers, smoking or chewing tobacco or any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco or shisha, including a hookah or waterpipe, if it is used or intended to be used in connection with a bona fide practice of a religious belief or cultural gathering and as an integral part of a religious or ceremonial exercise.

2. Any instrument or paraphernalia that is solely designed for the smoking or ingestion of tobacco, e‑liquids, alternative nicotine products or shisha, including a hookah or waterpipe, that is given to or possessed by a minor person who is under twenty‑one years of age if the instrument or paraphernalia was a gift or souvenir and is not used or intended to be used by the minor person who is under twenty‑one years of age to smoke or ingest tobacco, e‑liquids, alternative nicotine products or shisha.

E. G. For the purposes of this section:

1. "Alternative nicotine product":

(a) Means any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested or consumed by any other means.

(b) Does not include any e-liquid, vapor product, tobacco product or shisha or any product regulated as a drug or device by the United States food and drug administration under subchapter V of the federal food, drug, and cosmetic act.

2. "E‑liquid" means a liquid substance that meets all of the following:

(a) may or may not contain nicotine.

(b) Does not contain cannabidiol or cannabis.

1. 3. "Shisha" includes any mixture of tobacco leaf and honey, molasses or dried fruit or any other sweetener.

2. 4. "Tobacco product" means any of the following:

(a) Cigars.

(b) Cigarettes.

(d) Smoking tobacco of any kind.

(e) Chewing tobacco of any kind.

3. 5. "Vapor product":

(a) Means a noncombustible tobacco‑derived product containing nicotine that employs a mechanical heating element, battery or circuit, regardless of shape or size, that can be used to heat a liquid nicotine solution contained in cartridges.� Vapor product either:

(i) A powered vaporizer that employs a mechanical heating element, battery or circuit, regardless of shape or size, and that converts an e‑liquid to a vapor intended for inhalation.

(b) Does not include any product that is regulated by the United States food and drug administration under chapter subchapter V of the federal food, drug, and cosmetic act.END_STATUTE

Sec. 8. Section 15-712, Arizona Revised Statutes, is amended to read:

START_STATUTE15-712. Instruction on alcohol, tobacco, e‑liquids, alternative nicotine products, vapor products, narcotic drugs, marijuana, date rape drugs and other dangerous drugs; chemical abuse prevention programs; definitions

A. Instruction on the nature and harmful effects of alcohol, tobacco, e‑liquids, alternative nicotine products, vapor products, narcotic drugs, marijuana, date rape drugs and other dangerous drugs on the human system and instruction on the laws related to the control of these substances and the nonuse and prevention of use and abuse of alcohol, tobacco, e‑liquids, alternative nicotine products, vapor products, narcotic drugs, marijuana, date rape drugs and other dangerous drugs may be included in the courses of study in common and high schools, with emphasis on grades four through nine.� Instruction on the nature and harmful effects of alcohol, tobacco, e‑liquids, alternative nicotine products, vapor products, narcotic drugs, marijuana, date rape drugs and other dangerous drugs on a human fetus may be included in the courses of study in grades six through twelve. The instruction may be integrated into existing health, science, citizenship or similar studies and shall meet the criteria for chemical abuse prevention education programs developed pursuant to subsection C of this section.

B. At the request of a school district, the department of education shall provide technical assistance to school districts that choose to implement programs to prevent chemical abuse.

C. The department of education and the department of health services, in consultation with the committee established pursuant to section 41‑617, shall establish an interagency committee to coordinate their assistance to school districts.

D. The state board of education may accept gifts and grants and shall distribute them and monies appropriated for chemical abuse prevention programs to school districts to assist with the costs of programs designed to prevent chemical abuse by pupils in kindergarten programs and grades one through twelve. School districts which that have approved chemical abuse prevention policies and procedures as prescribed in section 15‑345 are eligible for a maximum of one dollar $1 for each pupil or one thousand dollars $1,000, whichever is more. If sufficient monies are not available to meet all requests, the state board shall determine which school districts to fund based on need, availability of other programs or sources of revenue and the likelihood of the school district's proposed program successfully meeting needs identified by the school district. A school district shall include the monies it receives for chemical abuse prevention programs under this section in the special projects section of the budget as provided in section 15‑903, subsection F.

E. For the purpose of this section:

1. "Alternative nicotine product" has the same meaning prescribed in section 36‑798.

2. "Dangerous drug" has the same meaning prescribed in section 13‑3401.

1. 3. "Date rape drug" means a drug prescribed listed in section 13‑3401, paragraph 30, subdivisions (f) through (m).

4. "E‑liquid" has the same meaning prescribed in section 36‑798.

5. "Marijuana" has the same meaning prescribed in section 13-3401.

2. 6. "Narcotic drug", "marijuana" and "dangerous drug" have has the same meaning prescribed in section 13‑3401.

7. "Vapor product":

(a) Means either:

(i) A powered vaporizer that employs a mechanical heating element, battery or circuit, regardless of shape or size, and that converts an e‑liquid to a vapor intended for inhalation.

(b) Does not include any product that is regulated by the United States food and drug administration under subchapter V of the federal food, drug, and cosmetic act. END_STATUTE

Sec. 9. Section 36-798, Arizona Revised Statutes, is amended to read:

START_STATUTE36-798. Definitions

In this article, unless the context otherwise requires:

1. "Alternative nicotine product":

(a) Means any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested or consumed by any other means.

1. 2. "Bar" means that portion of any premises licensed under section 4‑209, subsection B, paragraph 6, 7, 11, 12 or 14 that is primarily used for the selling, consumption consuming or serving of alcoholic beverages and that is not primarily used for the consumption of consuming food on the premises.

2. 3. "Beedies" or "bidis" means a product containing tobacco that is wrapped in temburni leaf (diospyros melanoxylon) or tendu leaf (diospyros exculpra), or any other product that is offered to, or purchased by, consumers as beedies or bidis.

3. 4. "Cigar" means a roll of tobacco or any lawful substitute for tobacco that is wrapped in tobacco.

4. 5. "Cigarette" means a roll of tobacco or any lawful substitute for tobacco that is wrapped in paper or in any substance other than tobacco.

5. "Minor" means a person who is under eighteen years of age.

6. "Delivery sale"

(a) Means a sale, whether from a person in this state or outside of this state, of an e-liquid, vapor product or alternative nicotine product to a purchaser in this state in which the purchaser submits the order for the sale through one of the following methods and after which the e‑liquid, vapor product or alternative nicotine product is shipped through a delivery service:

(i) By telephone.

(ii) Over the internet.

(iii) Through the mail or another delivery system.

(b) Does not include a sale to a manufacturer, distributor or retailer of an e-liquid, vapor product or alternative nicotine product that is not for personal consumption.

7. "Delivery service" means a person, including the United States postal service, that is engaged in delivering letters, packages or containers.

8. "E‑liquid" means a liquid substance that meets all of the following:

(a) may or may not contain nicotine.

(b) Does not contain cannabidiol or cannabis.

9. "Retailer" means a person, other than a manufacturer or distributor, that in the ordinary course of the person's regular trade or business:

(a) Acquires any form of an e-liquid, vapor product or alternative nicotine product for the purpose of resale to a consumer.

(b) Transfers an e-liquid, vapor product or alternative nicotine product to a consumer for monies or other consideration.

6. 10. "Retail tobacco vendor" means a person who that possesses tobacco or tobacco products for the purpose of selling them for consumption and not for resale.

7. 11. "Smokeless tobacco" includes shredded tobacco, snuff, cavendish and plug, twist and other tobacco products that are intended for oral use but not for smoking.

8. 12. "Smoking tobacco" includes any tobacco or tobacco product, other than cigarettes and cigars, that is intended to be smoked.

9. 13. "Tobacco products product" includes cigarettes, cigarette papers, cigars, smokeless tobacco and smoking tobacco.

14. "Vapor product":

(a) Means either:

(i) A powered vaporizer that employs a mechanical heating element, battery or circuit, regardless of shape or size, and that converts an e‑liquid to a vapor intended for inhalation.

(b) Does not include any product that is regulated by the United States food and drug administration under subchapter V of the federal food, drug, and cosmetic act.

10. 15. "Vending machine" means any mechanical, electrical or electronic device that, on insertion of money, tokens or any other form of payment, automatically dispenses tobacco products. END_STATUTE

Sec. 10. Section 36-798.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-798.01. Selling or giving beedies or bidis; violation; classification

A. It is unlawful for a retail tobacco vendor to sell, furnish, give or provide beedies or bidis to a minor person who is under twenty‑one years of age in this state.

B. Any person who violates this section is guilty of a class 3 misdemeanor. END_STATUTE

Sec. 11. Section 36-798.02, Arizona Revised Statutes, is amended to read:

START_STATUTE36-798.02. Vending machine sales of tobacco and tobacco products; signage; violation; classification

A. except as provided in subsection B of this section, a person shall not sell or distribute tobacco products, through a vending machine unless the vending machine is located in e‑liquids, vapor products or alternative nicotine products either:

1. At a retail establishment in this state by any means other than vendor‑assisted sales in which the customer has no direct access to the product except through the ASSISTANCE OF the seller.

2. From self‑service displays or vending machines.

B. Subsection A of this section does not apply to:

1. Retail establishments if persons who are under twenty‑one years of age are not allowed in the establishment and the prohibition is posted clearly on all entrances.

2. Sales authorized under sections 36‑798.06 and 36‑798.07.

3. A retail tobacco store as defined in section 36‑601.01.

1. 4. A bar Bars.

2. 5. An Employee lounge area areas that is are not open to the public and if the business in which the lounge area is located does not employ minors persons who are under twenty‑one years of age.

B. C. A sign measuring at least eighty square inches shall be obviously affixed to the front of each vending machine. The sign shall state in block letters, that it is illegal for a minor person who is under twenty‑one years of age to purchase cigarettes, or tobacco products, e‑liquids, vapor products or alternative nicotine products and, upon on conviction, a fine of up to three hundred dollars $300 may be imposed.

C. D. This article does not invalidate an ordinance of or prohibit the adoption of an ordinance by a county, city or town to further restrict the location of vending machines or specify different wording for the vending machines machine signs as required by subsection B C of this section.

D. E. A person who violates this section is guilty of a petty offense. END_STATUTE

Sec. 12. Section 36-798.03, Arizona Revised Statutes, is amended to read:

START_STATUTE36-798.03. Tobacco products, e‑liquids, vapor products and alternative nicotine products; prohibition at schools and school‑related areas; exception; violation; classification

A. The use and possession of tobacco products, e‑liquids, vapor products and alternative nicotine products are prohibited on school grounds, inside school buildings, in school parking lots or playing fields, in school buses or vehicles or at off‑campus school sponsored events.� For the purposes of this subsection, "school" means any public, charter or private school where children attend classes in kindergarten programs or grades one through twelve.

B. Subsection A of this section does not apply to an adult a person who is twenty‑one years of age or older and who employs tobacco products, e‑liquids, vapor products or alternative nicotine products as a necessary component of a school sanctioned school-sanctioned tobacco, e‑liquid, vapor product or alternative nicotine product prevention or cessation program established pursuant to section 15‑712.

C. A school district governing board, a charter school governing body or a private school may adopt policies prohibiting, restricting and regulating tobacco products, e-liquids, vapor products or alternative nicotine products on school grounds or at school sanctioned activities as determined by the governing board, governing body or private school.

C. D. A person who violates this section is guilty of a petty offense.END_STATUTE

Sec. 13. Section 36-798.05, Arizona Revised Statutes, is amended to read:

START_STATUTE36-798.05. Unsolicited delivery of tobacco products; violation; classification; civil penalties; definitions

A. It is unlawful for a person to deliver or cause to be delivered to any residence in this state any tobacco products unsolicited by at least one adult person who is twenty‑one years of age or older and who resides at that address.

B. A person who knowingly violates subsection A of this section is guilty of a class 2 misdemeanor.

C. A person who violates subsection A of this section is subject to a civil penalty in an amount of not to exceed five thousand dollars $5,000 for each violation.� Each delivery of a tobacco product shall constitute constitutes a separate violation.

D. The attorney general may bring an action to recover civil penalties and as determined by the court, taxable costs, such other fees and expenses reasonably incurred and reasonable attorney fees, in the name of the state for a violation of this section.� All civil penalties recovered shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund and all other monies recovered shall be deposited, pursuant to sections 35‑146 and 35‑147, in the antitrust enforcement revolving fund established by section 41‑191.02.

E. In For the purposes of this section, unless the context otherwise requires:

1. "Knowingly" has the same meaning prescribed in section 13‑105.

2. "Person" means an individual, partnership, firm, association, corporation, limited liability company, limited liability partnership, joint venture, or other entity, other than an individual or entity engaged in the delivery of items for hire. END_STATUTE

Sec. 14. Title 36, chapter 6, article 14, Arizona Revised Statutes, is amended by adding sections 36-798.07, 36-798.08 and 36-798.09, to read:

START_STATUTE36-798.07. Delivery sales of e‑liquids, vapor products and alternative nicotine products; requirements; civil penalty; violation; classification

A. A person may not make a delivery sale of an e-liquid, vapor product or alternative nicotine product to a person who is under twenty‑one years of age.

B. A person may not mail, ship or otherwise cause to be delivered any e-liquid, vapor product or alternative nicotine product in connection with a delivery sale unless, before the sale to the purchaser, both of the following occur:

1. The seller verifies by an independent third party that the purchaser is at least twenty‑one years of age through a commercially available database, or aggregate of databases, that is regularly used by governments and businesses for the purposes of age and identity verification.

2. The seller is fully paid for the purchase and accepts payment from the purchaser by any of the following methods:

(a) A check drawn on an account in the purchaser's name.

(b) A credit card issued in the purchaser's name.

C. A seller may ship e-liquids, vapor products or alternative nicotine products only to a consumer for personal consumption.

D. A seller taking a delivery sale order may request the purchaser's email address.

E. A person who violates subsection A or B of this section shall pay a civil penalty of not more than $5,000 for each violation.� Each delivery of an e-liquid, vapor product or alternative nicotine product constitutes a separate violation.

F. A person who knowingly violates subsection A or B of this section is guilty of a class 2 misdemeanor. END_STATUTE

START_STATUTE36-798.08. Retail sales; requirements; notice; violation; classification

A. A retailer shall not sell, offer to sell, furnish or give tobacco products, e-liquids, vapor products or alternative nicotine products unless the retailer prominently displays a sign that reads as follows:

It is illegal for a person who is under twenty‑one years of age to purchase cigarettes, tobacco products, e‑liquids, vapor products and alternative nicotine products.

Warning: E-liquids, Vapor products and alternative nicotine products may contain nicotine and are not intended for use by anyone under the legal purchasing age or by women who are pregnant, may become pregnant or are breastfeeding.

B. A retailer may not sell, offer to sell, furnish or give tobacco products, e‑liquids, vapor products or alternative nicotine products to a person who reasonably appears to be under twenty‑seven years of age without first examining the person's government‑issued photographic identification, as prescribed in section 4‑241, subsection K, to establish that the person Is at least twenty‑one years of age.

C. A person who violates this section is guilty of a petty offense.END_STATUTE

START_STATUTE36-798.09. State preemption

A. The regulation of the sale and marketing of tobacco products, e‑liquids, vapor products and alternative nicotine products is a matter of statewide concern and is not subject to further regulation by a city, town or county in this state, except as provided in subsection B of this section.� This article preempts any rule, regulation, code or ordinance that is adopted or modified by any city, town or county in this state regarding the sale or marketing of tobacco products, e-liquids, vapor products or alternative nicotine products and that is in conflict with or more restrictive than a state statute or rule.� A city, town or county may not limit any right granted by this article or rules adopted pursuant to this article.

B. This section does not prohibit A city, town, county, school district, charter school, community college district or stadium district or the Arizona board of regents from regulating the sale, marketing or use of tobacco products, e‑liquids, vapor products and alternative nicotine products on property that is owned, leased or operated by the city, town, county, school district, charter school, community college district or stadium district or the Arizona board of regents in this state. END_STATUTE

Sec. 15. Applicability

Notwithstanding any other law, the provisions of title 4, chapter 4, Arizona Revised Statutes, as added by this act, do not apply to a retailer that is legally licensed and established on the effective date of this act.

Sec. 16. Effective date

This act is effective from and after December 31, 2020.