Does your community association allow the consumption of alcohol on its premises as part of a Bring Your Own Bottle (“BYOB”) policy? If so, then we have some important and exciting news for you!
As you may know, the Arizona liquor laws (at Title 4 of the Arizona Revised Statutes) are not written with community associations in mind. A.R.S. 4-244.05 is the relevant statute to follow when it comes to unlicensed establishments (i.e. businesses without a liquor license) allowing consumption of liquor on its premises. This statute prohibits an unlicensed business from allowing consumption on its premises if food or beverages are sold, entertainment is provided, a membership/cover charge is imposed, or a rental requirement/minimum purchase is charged. Based on the lack of clarity in the statute and the past enforcement of the statute, there has always been some risk in allowing BYOB events on community association premises. While there is always risk in allowing the consumption of liquor on any premises, the risks relating to compliance with A.R.S. 4-244.05 may have just significantly decreased based on recent guidance issued by the Department of Liquor Licenses and Control (“Department”), which is the department that enforces Title 4 of the Arizona Revised Statutes on behalf of the State of Arizona. (more…)Read More
The holiday season is upon us and with the holiday season come holiday parties that often involve the consumption of “tasty” beverages. Eggnog, pumpkin everything, and, well, alcohol! The question often arises as to whether or not a community association should permit residents to consume alcohol on association premises and if so, what risks are associated with doing so.
The first thing that you need to know about associations and alcohol is that the liquor laws in Arizona were not written with association’s in mind. As a result, there is often a fair amount of “gray area” in this area of the law. This article will help explain some of the common situations that an association may encounter and how to best handle them. (more…)Read More