A.R.S. tit. 4 ch. 1 — Arizona Revised Statutes Title 4 Chapter 1 — General Provisions

4-101. Definitions In this title, unless the context otherwise requires: 1. "Act of violence": (a) Means an incident that consists of a riot, a fight, an altercation or tumultuous conduct and that meets at least one of the following criteria: (i) Bodily injuries are sustained by any person and the injuries would be obvious to a reasonable person. (ii) Is of sufficient intensity as to require the intervention of a peace officer to restore normal order. (iii) A weapon is brandished, displayed or used. (iv) A licensee or an employee or contractor of the licensee fails to follow a clear and direct lawful order from a law enforcement officer or a fire marshal. (b) Does not include the use of nonlethal devices by a peace officer. 2. "Aggrieved party" means a person who resides at, owns or leases property within a one-mile radius of premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license not later than sixty days after filing the application or fifteen days after action by the local governing body, whichever is sooner. 3. "Alternative nicotine product": (a) Means any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested, inhaled or consumed by any other means. (b) Does not include tobacco products or any product regulated as a drug or device by the United States food and drug administration under chapter V of the federal food, drug, and cosmetic act. 4. "Beer": (a) Means any beverage obtained by the alcoholic fermentation, infusion or decoction of barley malt, hops, rice, bran or other grain, glucose, sugar or molasses, or any combination of them, and may include, as adjuncts in fermentation, honey, fruit, fruit juice, fruit concentrate, herbs, spices and other food materials. (b) Includes beer aged in an empty wooden barrel previously used to contain wine or distilled spirits and as such is not considered a dilution or mixture of any other spirituous liquor. 5. "Biometric identity verification device" means a device authorized by the department that instantly verifies the identity and age of a person by an electronic scan of a biometric of the person, through a fingerprint, iris image, facial image or other biometric characteristic, or any combination of these characteristics, that references the person's identity and age against any record described in section 4-241, subsection K, and that meets all of the following conditions: (a) The authenticity of the record was previously verified by an electronic authentication process. (b) The identity of and information about the record holder was previously verified through either: (i) A secondary, electronic authentication process or set of processes using commercially available data, such as a public records query or a knowledge-based authentication quiz. (ii) Using a state or federal government system of records for digital authentication. (c) The authenticated record was securely linked to biometrics contemporaneously collected from the verified record holder and is stored in a centralized, highly secured, encrypted biometric database. 6. "Board" means the state liquor board. 7. "Bona fide guest" means: (a) An individual who is personally familiar to the member, who is personally sponsored by the member and whose presence as a guest is in response to a specific and personal invitation. (b) In the case of a club that meets the criteria prescribed in paragraph 10, subdivision (a) of this section, a current member of the armed services of the United States who presents proper military identification and any member of a recognized veterans' organization of the United States and of any country allied with the United States during current or past wars or through treaty arrangements. 8. "Broken package" means any container of spirituous liquor on which the United States tax seal has been broken or removed or from which the cap, cork or seal placed on the container by the producer has been removed. 9. "Cider": (a) Means any beverage that is made from the normal alcoholic fermentation of the juice of sound and ripe apples, pears or other pome fruit and that contains more than one-half of one percent of alcohol by volume and not more than eight and one-half percent of alcohol by volume. (b) Includes flavored, sparkling and carbonated cider and cider made from condensed apple, pear or other pome fruit must. 10. "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made only to members, spouses of members, families of members, bona fide guests of members and guests at other events authorized in this title: (a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that has, as the owner, lessee or occupant, operated an establishment for that purpose in this state. (b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization that has, as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state. An American national fraternal organization as used in this subdivision shall actively operate in at least thirty-six states or have been in active continuous existence for at least twenty years. (c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph of which all of the capital stock is owned by the local unit or the members and that operates the clubroom facilities of the local unit. (d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse. (e) A social club that has more than one hundred bona fide members who are actual residents of the county in which it is located, that owns, maintains or operates club quarters, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of at least one year. The club shall have had, during this one-year period, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club. The club's membership shall consist of bona fide dues-paying members paying dues of at least $6 per year, payable monthly, quarterly or annually, which have been recorded by the secretary of the club, and the members at the time of application for a club license shall be in good standing having for at least one full year paid dues. At least fifty-one percent of the members shall have signified their intention to secure a social club license by personally signing a petition, on a form prescribed by the board, which shall also include the correct mailing address of each signer. The petition shall not have been signed by a member at a date earlier than one hundred eighty days before the filing of the application. The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that is, or has been, primarily formed or activated to obtain a license to sell liquor, but solely to a bona fide club, where the sale of liquor is incidental to the main purposes of the club. (f) An airline club operated by or for airlines that are certificated by the United States government and that maintain or operate club quarters located at airports with international status. 11. "Company" or "association", when used in reference to a corporation, includes successors or assigns. 12. "Control" means the power to direct or cause the direction of the management and policies of an applicant or licensee, whether through the ownership of voting securities or a partnership interest, by agreement or otherwise. Control is presumed to exist if a person has the direct or indirect ownership of or power to vote ten percent or more of the outstanding voting securities of the applicant or licensee or to control in any manner the election of one or more of the directors of the applicant or licensee. In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten percent or more of the voting rights of the partnership. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of an officer, partner, employee or agent of the person or a spouse, parent or child of the person. Control is also presumed to exist if a creditor of the applicant or licensee holds a beneficial interest in ten percent or more of the liabilities of the licensee. The presumptions in this paragraph regarding control are rebuttable. 13. "Controlling person" means a person directly or indirectly possessing control of an applicant or licensee. 14. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10. 15. "Craft producer" means a licensed farm winery, a licensed microbrewery or a licensed craft distiller. 16. "Department" means the department of liquor licenses and control. 17. "Director" means the director of the department of liquor licenses and control. 18. "Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, beverages that contain more than one-half of one percent of alcohol by volume and that are produced by the distillation or rectification of fermented material and any alcoholic mixture or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication. 19. "Employee": (a) Means any person who performs any service on licensed premises on a full-time, part-time or contract basis with consent of the licensee, whether or not the person is denominated an employee or independent contractor or otherwise. (b) Does not include a person who is exclusively on the premises for musical or vocal performances, for repair or maintenance of the premises or for the delivery of goods to the licensee. 20. "Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.04. 21. "Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of the state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board. 22. "Legal drinking age" means twenty-one years of age or older. 23. "License" means a license or an interim retail permit issued pursuant to this title. 24. "Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee. 25. "License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations. 26. "Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full-time basis. 27. "Menu food item" means a food item from a regular menu, special menu or happy hour menu that is prepared by the licensee or the licensee's employee. 28. "Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4-205.08. 29. "Mixed cocktail": (a) Means any drink combined at the premises of an authorized licensee that contains a spirituous liquor and that is combined with at least one other ingredient, which may include additional spirituous liquors, fruit juice, vegetable juice, mixers, cream, flavored syrup or other ingredients except water, and that when combined contains more than one-half of one percent of alcohol by volume. (b) Does not include a drink sold in an original manufacturer's packaging or any drink poured from an original manufacturer's package without the addition of all of the cocktail's other ingredients at the premises of the licensed bar, liquor store or restaurant. 30. "Nicotine": (a) Means the chemical substance named 3-(1-Methyl-2-pyrrolidinyl) pyridine or C(10)H(14)N(2). (b) Includes any salt or complex of nicotine derived from any source. 31. "Off-sale retailer" means any person that operates a bona fide regularly established retail liquor store that sells spirituous liquors, wines and beer and any established retail store that sells commodities other than spirituous liquors and that is engaged in the sale of spirituous liquors only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises. 32. "On-sale retailer" means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises or in individual portions for consumption on the premises. 33. "Permanent occupancy" means the maximum occupancy of the building or facility as set by the office of the state fire marshal for the jurisdiction in which the building or facility is located. 34. "Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person. 35. "Premises" or "licensed premises": (a) Means the area from which the licensee is authorized to sell, dispense or serve spirituous liquors under the provision of the license. (b) Includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises. 36. "Registered alcohol delivery contractor": (a) Means a person who delivers spirituous liquor to a consumer on behalf of a bar, beer and wine bar, liquor store, beer and wine store or restaurant. (b) Does not include: (i) A motor carrier as defined in section 28-5201. (ii) An independent contractor, a subcontractor of an independent contractor, an employee of an independent contractor or an employee of a subcontractor as provided in section 4-203, subsection J. 37. "Registered mail" includes certified mail. 38. "Registered retail agent" means any person who is authorized pursuant to section 4-222 to purchase spirituous liquors for and on behalf of the person and other retail licensees. 39. "Repeated acts of violence" means: (a) For licensed premises with a permanent occupancy of two hundred or fewer persons, two or more acts of violence occurring within seven days or three or more acts of violence occurring within thirty days. (b) For licensed premises with a permanent occupancy of more than two hundred but not more than four hundred persons, four or more acts of violence within thirty days. (c) For licensed premises with a permanent occupancy of more than four hundred but not more than six hundred fifty persons, five or more acts of violence within thirty days. (d) For licensed premises with a permanent occupancy of more than six hundred fifty but not more than one thousand fifty persons, six or more acts of violence within thirty days. (e) For licensed premises with a permanent occupancy of more than one thousand fifty persons, seven or more acts of violence within thirty days. 40. "Retailer of alternative nicotine products" means a person that operates an establishment where alternative nicotine products are sold in the original packaging or container and are for human consumption. 41. "Sell" includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in. 42. "Spirituous liquor": (a) Includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer, cider, any malt liquor or malt beverage, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, any liquid mixture or preparation, whether patented or otherwise, that produces intoxication and beverages containing more than one-half of one percent of alcohol by volume. (b) Does not include nonbeverage products as defined in 27 Code of Federal Regulations part 17 and that are qualified by the United States alcohol and tobacco tax and trade bureau as nonbeverage products. 43. "Tamperproof sealed" means designed to prevent consumption without the removal of a tamperproof cap, seal, cork or closure that has a device, mechanism or adhesive that clearly shows whether a container has been opened. 44. "Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation. 45. "Vending machine" means a machine that dispenses merchandise through the means of coin, token, credit card or other nonpersonal means of accepting payment for merchandise received. 46. "Veteran" means a person who has served in the United States air force, army, navy, marine corps, space force or coast guard, as an active nurse in the services of the American red cross, in the army and navy nurse corps in time of war, or in any expedition of the armed forces of the United States, and who has received a discharge other than dishonorable. 47. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant or a licensee. 48. "Wine" means the product obtained by the fermentation of grapes, other agricultural products containing natural or added sugar or cider or any such alcoholic beverage fortified with grape brandy and containing not more than twenty-four percent of alcohol by volume. 4-111. State liquor board; department of liquor licenses and control; members; director; appointment and removal A. The department of liquor licenses and control is established consisting of the state liquor board and the office of director of the department. B. The board consists of seven members to be appointed by the governor pursuant to section 38-211. Five of the members of the board shall not be financially interested directly or indirectly in business licensed to deal with spirituous liquors, one of whom shall be a current elected municipal official. Two members shall currently be engaged in business in the spirituous liquor industry or have been engaged in the past in business in the spirituous liquor industry, at least one of whom shall currently be a retail licensee or employee of a retail licensee. One member shall be a member of a neighborhood association recognized by a county, city or town. The term of members is three years. Members' terms expire on the third Monday in January of the appropriate year. The governor may remove any member of the board for cause. A member may not represent another licensee before the board for a period of one year after the conclusion of the member's service on the board. C. The board shall annually elect from its membership a chairperson and vice chairperson. A majority of the board constitutes a quorum and a concurrence of a majority of a quorum is sufficient for taking any action. If there are unfilled positions on the board, a majority of those persons appointed and serving on the board constitutes a quorum. D. The chairperson may designate panels of not less than three members. A panel may take any action that the board is authorized to take pursuant to this title. Such action includes the ability to hold hearings and hear appeals of administrative disciplinary proceedings of licenses issued pursuant to this chapter. A panel shall not, however, adopt rules as provided in section 4-112, subsection A, paragraph 2. The chairperson may from time to time add additional members or remove members from a panel. A majority of a panel may take final action on hearings and appeals of administrative disciplinary proceedings concerning licenses issued pursuant to this chapter. E. Members of the board are entitled to receive compensation at the rate of $50 per day while engaged in the business of the board. F. A person shall not be appointed to serve on the board unless the person has been a resident of this state for not less than five years before the person's appointment. Not more than four members may be of the same political party. Persons eligible for appointment shall have a continuous recorded registration pursuant to title 16, chapter 1 with the same political party or as an independent for at least two years immediately preceding appointment. Not more than three members may be appointed from the same county. G. The governor shall appoint the director, pursuant to section 38-211, who shall be a qualified elector of the state and experienced in administrative matters and enforcement procedures. The director shall serve at the pleasure of the governor. H. The director is entitled to receive a salary as determined pursuant to section 38-611. 4-112. Powers and duties of board and director of department of liquor licenses and control; investigations; county and municipal regulation; definition A. The board shall: 1. Grant and deny applications in accordance with this title. 2. Adopt rules in order to carry out this section. 3. Hear appeals and hold hearings as provided in this section. B. Except as provided in subsection A of this section, the director shall administer this title and shall do the following: 1. Adopt rules: (a) To carry out this title. (b) To properly conduct the business to be carried on under each specific type of spirituous liquor license. (c) To enable and assist state officials and political subdivisions to collect taxes levied or imposed in connection with spirituous liquors. (d) To issue and revoke certificates of registration of retail agents, including provisions governing the shipping, storage and delivery of spirituous liquors by registered retail agents, the keeping of records and the filing of reports by registered retail agents. (e) To establish requirements for licensees under section 4-209, subsection B, paragraph 12. 2. Subject to title 41, chapter 4, article 4, employ necessary personnel and fix their compensation pursuant to section 38-611. 3. Keep an index record that is a public record open to public inspection and that contains the name and address of each licensee and the name and address of any person having an interest, either legal or equitable, in each license as shown by any written document that is placed on file in the office of the board. 4. Provide the board with supplies and personnel as directed by the board. 5. Respond in writing to any law enforcement agency that submits an investigative report to the department relating to a violation of this title, setting forth what action, if any, the department has taken or intends to take on the report and, if the report lacks sufficient information or is otherwise defective for use by the department, what the agency must do to remedy the report. 6. Take steps that are necessary to maintain effective liaison with the department of public safety and all local law enforcement agencies to enforce this title, including the laws of this state against the consumption of spirituous liquor by persons under the legal drinking age or the sale or possession of alternative nicotine products by persons under twenty-one years of age. 7. Provide training to law enforcement agencies in proper investigation and reporting violations of this title. C. The director shall establish within the department a separate investigations unit whose sole responsibility is investigating compliance with this title, including investigating licensees alleged to have sold or distributed spirituous liquor in any form to persons under the legal drinking age or have sold or distributed alternative nicotine products to a person who is under twenty-one years of age. Investigations conducted by this unit may include covert undercover investigations. D. All employees of the department of liquor licenses and control, except members of the state liquor board and the director of the department, shall be employed by the department in the manner prescribed by the department of administration. E. The director may enter into a contract or agreement with any public agency for any joint or cooperative action as provided for by title 11, chapter 7, article 3. F. The board or the director may take evidence, administer oaths or affirmations, issue subpoenas requiring attendance and testimony of witnesses, cause depositions to be taken and require by subpoena duces tecum the production of books, papers and other documents that are necessary to enforce this title. Proceedings held during the course of a confidential investigation are exempt from title 38, chapter 3, article 3.1. If a person refuses to obey a subpoena or fails to answer questions provided by this subsection, the board or the director may apply to the superior court in the manner provided in section 12-2212. The board or director may serve subpoenas by personal service or certified mail, return receipt requested. G. The director may: 1. Examine books, records and papers of a licensee. 2. Require applicants, licensees, employees who serve, sell or furnish spirituous liquors to retail customers, managers and managing agents to take training courses approved by the director in spirituous liquor handling and spirituous liquor laws and rules. The director shall adopt rules that set standards for approving training courses. The director may suspend or revoke the previous approval of trainers who do not adhere to course administration requirements prescribed by the department or who do not meet course standards. If the director suspends or revokes the previous approval of a trainer pursuant to this paragraph, the trainer may appeal to the board pursuant to section 4-210.02 as if the suspension or revocation was a sanction against a licensee. The rules for on-sale retailer basic training and on-sale retailer management training shall include security procedures for security personnel assigned to monitor admission of patrons, interaction with patrons, calls to law enforcement and strategies for use of force and for the use of de-escalation techniques. If the retailer uses a registered security guard, the retailer shall attempt to verify the validity and status of the security guard's registration certificate. The department's licensed investigators may participate and receive compensation as lecturers at approved training courses within this state's jurisdiction that are conducted by other entities but shall not participate in in-house training programs for licensees. 3. Delegate to employees of the department authority to exercise powers of the director in order to administer the department. 4. Regulate signs that advertise a spirituous liquor product at licensed retail premises. 5. Cause to be removed from the marketplace spirituous liquor or alternative nicotine products that may be contaminated. 6. Regulate the age and conduct of erotic entertainers at licensed premises. The age limitation governing these erotic entertainers may be different from other employees of the licensee. 7. Issue and enforce cease and desist orders against any person or entity that sells beer, wine, spirituous liquor or alternative nicotine products without an appropriate license or permit. 8. Confiscate wines carrying a label including a reference to Arizona or any Arizona city, town or place unless at least seventy-five percent by volume of the grapes used in making the wine were grown in this state. 9. Accept and expend private grants of monies, gifts and devises for conducting educational programs for parents and students on the repercussions of underage alcohol consumption or the sale, use or possession of alternative nicotine products by a person who is under twenty-one years of age. State general fund monies shall not be expended for the purposes of this paragraph. If the director does not receive sufficient monies from private sources to carry out the purposes of this paragraph, the director shall not provide the educational programs prescribed in this paragraph. Grant monies received pursuant to this paragraph are nonlapsing and do not revert to the state general fund at the close of the fiscal year. 10. Procure fingerprint scanning equipment and provide fingerprint services to license applicants and licensees. The department may charge a fee for providing these services. 11. Accept electronic signatures on all department and licensee forms and documents and applications. The director may adopt requirements that would require facsimile signatures to be followed by original signatures within a specified time period. 12. Adopt a form that is required to be used by all on-sale retailers that hire or designate employees to serve as security personnel. All security personnel job applicants and employees for on-sale retailers shall complete the form, which shall be notarized, before assignment to a security role. The form shall require the applicant or other person to disclose whether in the previous five years the person has been a registered sex offender or pled guilty to, pled no contest to or been convicted of any offense that constitutes assault, homicide, domestic violence, sexual misconduct, misconduct involving a deadly weapon or a drug violation that constitutes the illegal sale, manufacturing, cultivation or transportation for sale of marijuana, a dangerous drug or a narcotic drug. A licensee may not hire or assign to a role as security personnel any person who fails to complete the form or whose form discloses one of the listed offenses within the previous five years. The licensee shall maintain on file affidavits of all security personnel hired or designated by the licensee. The form may not be required for a peace officer who is certified by the Arizona peace officer standards and training board or other security personnel who hold a current security guard registration certificate or armed security guard registration certificate issued pursuant to title 32, chapter 26. 13. Issue and enforce cease and desist orders against any person or entity that distributes or manufactures alternative nicotine products without an appropriate license that is issued pursuant to chapter 4 of this title. H. A county or municipality may enact and enforce ordinances regulating the age and conduct of erotic entertainers at licensed premises in a manner at least as restrictive as rules adopted by the director. I. For the purposes of this section, "security personnel": 1. Includes individuals whose primary assigned responsibilities include the security and safety of employees and patrons of an on-sale retailer premises. 2. Does not include a person whose primary responsibilities include checking the identification cards of patrons to determine compliance with age requirements. 4-113. Enforcement officer; credentials; peace officer status Each enforcement officer within the department who is designated by the director shall, for identification purposes, have credentials signed by the director and countersigned by the governor and, when bearing these credentials, has the powers and duties of a peace officer. 4-114. Interest in business prohibited; forfeiture of office A. Except for a member designated by the governor to be appointed from the industry, no member of the board or the director or any employee of the department shall be financially interested directly or indirectly in any business licensed to deal in spirituous liquors. B. Violation of this section by the director or any member of the board shall be deemed a resignation by such person, and a violation by an employee of the department shall result in his immediate dismissal. 4-115. Disposition of fees and penalties A. Unless otherwise provided, all license, registration and other fees and all penalties collected pursuant to this title shall be deposited, pursuant to sections 35-146 and 35-147, in the liquor licenses fund established by section 4-120, except that monies in excess of the annual legislative appropriation to the department shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. B. Two-thirds of the license fees collected pursuant to this title in each county shall be deposited, pursuant to sections 35-146 and 35-147, in the liquor licenses fund established by section 4-120, except that monies in excess of the annual legislative appropriation to the department shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. One-third of the license fees collected in each county with a population of five hundred thousand persons or less as shown by the most recent United States decennial census shall be paid monthly by the director to the county treasurer of that county. For each county with a population of more than five hundred thousand persons as shown by the most recent United States decennial census, the director shall pay monthly to the county treasurer from the remaining one-third of the license fees three thousand dollars for each new license issued for premises in unincorporated areas of that county but not more than one hundred fifty thousand dollars annually. The remainder of the one-third of the license fees collected for premises in each county with a population of more than five hundred thousand persons as shown by the most recent United States decennial census shall be deposited in the state general fund. 4-116. Receipts from club licenses and applications Notwithstanding any provision of law to the contrary, all receipts derived from club licenses and applications therefor are appropriated to the department of economic security for buildings, equipment or other capital investments. All revenue so received by the department shall be deposited, pursuant to sections 35-146 and 35-147, in the economic security capital investments fund. 4-116.01. Receipts from sampling privilege and growler permits Notwithstanding any other law, all receipts derived from sampling privilege and growler permit applications are appropriated to the department. The department shall deposit monies received pursuant to this section in the liquor licenses fund established by section 4-120. The amount deposited into the liquor licenses fund pursuant to this section shall be without regard to the amount appropriated to the department by the legislature. 4-118. Inspection of premises The director, the director's agents and any peace officer, in enforcing this title, may visit during the hours in which the premises are occupied and inspect the premises of a licensee or an alternative nicotine products licensee. 4-119. Records A. A licensee shall keep records of licensed business activity in a manner and location and for such duration as prescribed by the director. The rules of the director shall require that each on-sale retailer maintain at the licensed premises a copy of all required records including a current log of all persons employed at the licensed premises including each employee's full legal name, date of birth, address and responsibilities. A licensee shall retain records for two years. B. Records that contain proprietary information, including confidential formulas, production processes and business information filed with the United States alcohol and tobacco tax and trade bureau, is not subject to inspection. 4-120. Liquor licenses fund; exemption A. The liquor licenses fund is established consisting of monies deposited pursuant to sections 4-115, 4-116.01, 4-401 and 4-402. The department shall administer the fund. The amount deposited in the fund each year shall not exceed the amount appropriated by the legislature. B. Monies in the fund are subject to legislative appropriation. C. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations, except that any monies remaining in the fund on December 31 of each year that are in excess of $700,000 revert to the state general fund.