AZ Rev Stat § 4-244.05 (2021)
2021 Arizona Revised Statutes|Title 4 - Alcoholic Beverages|§ 4-244.05 - Unlicensed business establishment or premises; unlawful consumption of spirituous liquor; civil penalty; seizure and forfeiture of property

4-244.05.  Unlicensed business establishment or premises;  unlawful consumption of spirituous liquor;  civil penalty;  seizure and forfeiture of property A. A person owning,  operating,  leasing,  managing or controlling a business establishment or business premises which are not properly licensed pursuant to this title and in which any of the following occur shall not allow the consumption of spirituous liquor in the establishment or on the premises: 1. Food or beverages are sold. 2. Entertainment is provided. 3. A membership fee or a cover charge for admission is charged. 4. A minimum purchase or rental requirement for goods or services is charged. B. A person shall not consume spirituous liquor in a business establishment or on business premises which are not properly licensed pursuant to this title in which food or beverages are sold,  entertainment is provided,  a membership fee or a cover charge for admission is charged or a minimum purchase or rental requirement for goods or services is charged. C. In addition to or in lieu of other fines or civil penalties imposed for a violation of this section or any other action taken by the board or director,  the board or director may conduct a hearing subject to the requirements of section 4-210,  subsection G to determine whether a person has violated subsection A of this section. If the board or director determines,  after a hearing,  that a person has violated subsection A of this section the board or director may impose a civil penalty of not less than two hundred nor more than five thousand dollars for each offense. A civil penalty imposed pursuant to this section by the director may be appealed to the board. D. In addition to any other remedies provided by law,  any monies used or obtained in violation of this chapter may be seized by any peace officer if the peace officer has probable cause to believe that the money has been used or is intended to be used in violation of this section. E. In addition to any other remedies provided by law,  the records of an establishment that is in violation of this section may be seized by any peace officer if the peace officer has probable cause to believe that the establishment is operating without a valid license issued pursuant to this title. F. In addition to any other remedies provided by law,  any amount of alcohol may be seized by any peace officer if the peace officer has probable cause to believe that the alcohol is being used or is intended to be used in violation of this section. G. In addition to any other remedies provided by law,  the following property shall be forfeited pursuant to section 13-2314 or title 13,  chapter 39: 1. All proceeds and other assets that are derived from a violation of this section. 2. Anything of value that is used or intended to be used to facilitate a violation of this section. H. A person who obtains property through a violation of this section is deemed to be an involuntary trustee of that property. An involuntary trustee and any other person who obtains the property,  except a bona fide purchaser who purchases the property for value without notice of or participation in the unlawful conduct,  holds the property,  including its proceeds and other assets,  in constructive trust for the benefit of the persons entitled to remedies pursuant to section 13-2314 or title 13,  chapter 39. I. The board or director may adopt rules authorizing and prescribing limitations for the possession or consumption of spirituous liquor at establishments or premises falling within the scope of subsections A and B of this section. Rules adopted pursuant to this subsection shall authorize the possession or consumption of spirituous liquor only at establishments or premises which permit the consumption or possession of minimal amounts of spirituous liquor and which meet both of the following criteria: 1. The possession or consumption of spirituous liquor is permitted only as an incidental convenience to the customers of the establishment or premises. 2. The possession or consumption of spirituous liquor is permitted only within the hours of lawful sale as prescribed in this title,  and is limited to no more than ten hours per day. J. Any rules adopted pursuant to subsection I of this section shall prescribe: 1. The maximum permitted occupancy of an establishment or premises. 2. The hours during which spirituous liquor may be possessed or consumed. 3. The amount of spirituous liquor that a person may possess or consume. 4. That the director,  the director's agents and any peace officer empowered to enforce the provisions of this title,  in enforcing the provisions of this title,  may visit and inspect the establishment or premises during the business hours of the premises or establishment. The director may charge a fee for the inspection of unlicensed premises to review an application for exemption pursuant to this section. K. Any rules adopted pursuant to subsection I of this section may prescribe separate classifications of establishments or premises at which spirituous liquor may be possessed or consumed and may establish any other provisions relating to the possession or consumption of spirituous liquor at establishments or premises falling within the scope of subsections A and B of this section which are necessary to maintain the health and welfare of the community. L. This section does not apply to establishments or premises that are not licensed pursuant to this title and on which occurs the consumption of spirituous liquor if the establishment or premises are owned,  operated,  leased,  managed or controlled by the United States,  this state or a city or county of this state.