Arizona Department of Liquor Licenses and Control

This report focuses on the Department’s ability to effectively regulate the manufacturing and sale of liquor in the State. Currently, the Department inconsistently issues penalties for liquor law violations and does not always take appropriate action against licensees who repeatedly violate the State’s liquor law. The lack of formal policies and procedures governing the Department’s enforcement practices contributes to the inconsistent and sometimes inappropriate treatment of licensees who violate liquor laws. The Department also did not comply with statutorily required time frames for allowing public and city comment on liquor license applications and did not fully document required application information for 36 percent of the applications reviewed. Additionally, while hundreds of licensees fail to renew their licenses on time, the Department does not ensure that these licensees cease liquor sales until renewing their licenses. Several licensees were observed selling liquor after the expiration of their license. Finally, the Department has not adequately safeguarded the over $4 million in fine and fee receipts that it receives annually.