History

The regulation of liquor in Arizona precedes statehood. The 1864 Howell Code assessed liquor taxes on vendors of wines and distilled spirits and represented Arizona’s first liquor regulations.  However, congressional passage of the Volstead Act of 1919 enacted a national Prohibition and eliminated the need for liquor regulation. With the repeal of the Volstead Act and the end of Prohibition in 1933, the 21st Amendment to the U.S. Constitution gave individual states the right to choose their own system for regulating alcoholic beverages. Arizona placed the responsibility for liquor regulation with the Temperance Enforcement Commission under the State Tax Commission until 1939, when the Arizona Legislature established the Department of Liquor Licenses and Control (Department).
The courts and the Legislature have stated that the objective and purpose for establishing the Department center on protecting the public health, safety and welfare. The Legislature, in Laws 1984, Chapter 322, defined the purpose of the Department: “… to regulate the liquor industry through the license control process, collect fees and taxes for the maintenance of government and enforce statutes in order to maintain the health and welfare of the community.” As such, the Department licenses, investigates and regulates the production, distribution and sale of alcoholic beverages throughout the state. Separate from the Department is the Arizona State Liquor Board (Liquor Board), whose members are appointed by the Governor, subject to Senate confirmation. The Liquor Board hears appeals on some of the Director’s disciplinary decisions; and when cities, towns or counties disapprove or make no recommendation on a new liquor license, the Director is required to refer the final decision to the Liquor Board