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Arizona Passes Law Allowing Wineries and Breweries on Same Premises

A few months ago, On Reserve posted an article about the two sisters in Arizona seeking to open a winery-brewery establishment. As of last week, the Arizona Governor Jan Brewer signed a bill into law that allows both a winery and a brewery to operate on the same land. The two sisters, Megan Haller and Shannon Zouzoulas, own Arizona Hops and Vines in Sonoita, Arizona. (See Arizona Sisters to Open State’s First Winery-Brewery Combo.) Currently, the sisters are applying for a license to run both a winery and a brewery on the same property. According to New Arizona Law Clears the Way for Sisters to Make Wine, Beer on Same Land, the sisters “had already planted a vineyard and hop field when they discovered that state law prevented the operation of both a brewery and a winery on the same piece of land.”

Before passing this new law, the state of Arizona allowed multiple state licenses to be procured at a single location, but with limitations. For example, an establishment could hold both an active domestic farm winery license and a beer and wine bar license, but could not also hold an active microbrewery license. The bill was introduced to the Arizona Senate in March of this year as SB 1301 and was sponsored by Senator Shooter.

The new law amends Title 4, Chapter 2, Article 1 of the Arizona Revised Statutes and adds Section 4-205.09 titled, “Domestic Microbrewery and Domestic Farm Winery Licneses on the Same Land; Requirements.” The bill was introduced into the Arizona Senate in March and passed by the Senate within a few weeks. While the timing certainly was fast, the success of this law is just one of the many contemporary examples we have that indicate many states in the United States recognize the ever increasing creativity of the industry, and the need for new, accommodating laws and regulations. While the industry constantly faces a theme of antiquated legislation, it is curious to see the progress of several states and the change of laws that govern wine and other alcohol beverages.

Interestingly, the new Arizona law requires that the brewery and winery be in separate buildings and licensed separately, but the tasting room can be shared. Additionally, the licenses of the domestic microbrewery and domestic farm winery must be held by two different persons. Finally, for licensees holding both a microbrewery and winery license on the same premises, they cannot hold any other license that is issued under Title 4 of the Arizona Revised Statutes.

For more information on wine or alcohol law, licensing, or TTB matters, please contact Lindsey Zahn.

DISCLAIMER: This blog post is for general information purposes only, is not intended to constitute legal advice, and no attorney-client relationship results. Please consult your own attorney for legal advice.

lazahn 9 Arizona Passes Law Allowing Wineries and Breweries on Same Premises

About 

Lindsey is the founder and author of On Reserve: A Wine Law Blog. She is an alcohol beverage and food attorney and is admitted to the New York State Bar.

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