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RECEIVED
NOV u5
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STATE OF ARIZONA OFFICE Of THE PRESIDENT
DEPARTMENT OF LIQUOR LICENSES AND CONTROL
JANET NAPOLITANO
GOVERNOR
JERRY A. OLIVER, SR.
DIRECTOR
November 1, 2007
Arizona Office of the Governor
Tim Bee, President., Arizona State Senate
James Weiers, Speaker, Arizona House of Representatives
1700 West Washington Street
Phoenix, Arizona 85007
Re: House Bill 2621; November 1, 2007 Report
Dear Governor Napolitano, President Bee, and Speaker Weiers:
House Bill 2621, Sec. 7 requires the Department of Liquor
Licenses and Control ( DLLC) to submit a report to the Governor, the
president of the Senate, and the Speaker of the House of
Representatives on or before November 1, 2007 and to provide a copy
of this report to the director of the Arizona State Library, Archives and
Public Records regarding the impact of sections, 4- 209 and 4- 213,
Arizona Revised Statutes, as amended by this act. In addition, Sec. 7
requires DLLC to solicit input from neighborhood groups and local
jurisdictions regarding the impact of the bill. The purpose of this letter
is to provide you with DLLC's required reporting on House Bill 2621.
House Bill 2621 was implemented on September 21, 2006. The
purpose of HB 2621 is enforce the required forty percent ( 400/ 0) food
to liquor sales ratio as stated in A. R. S. § 4- 213 by restaurants
operating under a series 11 liquor license ( hotel/ motel with restaurant)
or series 12 liquor license ( restaurant).
To date, fees collected for issuing the series 12 license
extension, as stated in A. R. S. § 4- 209 D. 12 totals $ 60,000. Additional
fines collected resulting from DLLC investigations of HB 2621
compliance total $ 52,750. The total revenue generated from HB 2621
fees and fines to date is $ 112,750.
800 WEST WASHINGTON, FIFTH FLOOR · PHOENIX, ARIZONA 85007 · ( 602) 542 · 5141 • FAX ( 602) 542 · 5707
www. azliquor. gov
INDIVIDUALS REQUIRING ADA ACCOMMODATIONS, CALL ( 602) 542 · 9027
House Bill 2621; November 1, 2007 Report
Page 2
Both Peoria and Phoenix PD were contacted by DLLC to discover
the impact HB 2621 may have had on their jurisdiction. Copper's
Sports Grill in Phoenix has applied for, and has since been issued, an
extension on their series 12 liquor license under HB 2621. Peoria PD's
Commercial Enforcement Until reports that several bars appear to
" ... get a 12 [ series 12 liquor license], see how it goes for one year,
pushing the limits of the license, and, in the end, still end up paying
less for the series 12 license plus $ 5,000 plus fine rather than applying
and paying for a more suitable license."
Four neighborhood groups were contacted by DLLC to discover
the impact from HB 2621. Those who responded were aware of the
bill and report no knowledge of any impact.
To enforce A. R. S. § 4- 213, a process of inspecting and auditing
series 11 and 12 liquor licenses is essential. DLLC's current
administration is dedicated to making this process efficient and
effective. To that end we've identified and are weighing several viable
methods that shift the burden of proof on to the licensee. The
anticipated outcome of this shift is twofold; to significantly reduce the
number of man hours our department dedicates to auditing, and to
increase the efficiency of our investigative efforts.
Our goal is to retain our current staff and redirect our law
enforcement efforts to best offset our inadequate liquor license to onstreet
enforcement personnel ratio, currently at 531: 1 compared to a
desired ratio of 212: 1.
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House Bill 2621; November 1, 2007 Report
Page 3
If you have any questions, or need additional information, please
contact me at 602- 542- 9020.
Sincerely,
Jerry A. Oliver Sr.
Director
Ih
Attachment
cc: GladysAnn Wells, Director
Arizona State Library, Archives & Public Records
1700 West Washington Street
Phoenix, Arizona 85007
HOUSE BILL 2621
12- MONTH STATISTICAL REVIEW
Created 10/ 16/ 07
Audits Audits Audits Audits
Year Complete In Progress Passed Failed Others Fines Paid
FY 2006 32 nja 3 24 5 $ 38,750.00
FY 2007 27 nja 10 10 7 $ 13,000.00
YTD FY 2008 8 8 3 5 0 $ 1,000.00
HB 2621 FTEs FTEs HB 2621 Revenue
Year Funding AP. Q[ QPriated Hired Funding Returned Generated
FY 2007 $ 400,000 7 5 $ 223,000 $ 30,000
FY 2008 $ 400,000 0 0 $ 0 $ 30,000
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