Section R19-1-317. Responsibilities of a Hotel-Motel or Restaurant Licensee

A.      If a hotel-motel or restaurant licensee ceases to provide com- plete restaurant services before 10:00 p.m., the licensee shall cease to sell spirituous liquor at the same time that the licensee ceases to provide complete restaurant services.

B.       If a hotel-motel or restaurant licensee provides complete restaurant services until at least 10:00 p.m., the licensee may continue to sell spirituous liquor during the hours allowed by law.

C.      If a hotel-motel or restaurant licensee refuses to serve a meal requested before 10:00 p.m. and continues to serve spirituous liquor, the Department shall assume that the hotel-motel or restaurant licensee has ceased to operate as a restaurant and has the primary purpose of selling or dispensing spirituous liquor for consumption.

D.      In the event of an audit to determine whether a hotel-motel or restaurant licensee meets the standard at A.R.S. §  4- 205.02(H), the licensee shall submit records that enable the Department to determine the amount of gross revenue that the licensee derives from the sale of food and from the sale of spir- ituous liquor. If the Department is unable to determine the amount of gross revenue attributed to the sale of food, the Department shall assume that the licensee does not meet the standard at A.R.S. § 4-205.02(H).

E.       To ensure that the Department is able to determine the amount of gross revenue derived from the sale of food and from the sale of spirituous liquor, a hotel-motel or restaurant licensee shall maintain the majority of the following documents in the following order for the time specified in R19-1-501:

1.        Vendor invoices. Sorted by vendor by year;

2.        Inventory records; financial statements; general ledger; sales journals or schedules; cash receipts or disbursement journals; and bank statements. Sorted by month by year;

3.        Daily sales report, guest checks, and cash register journal. Segregated by the sale of food and the sale of spirituous liquor and sorted by day by month by year;

4.        Bank deposit slips. Sorted by day by month by year and maintained with the daily sales report, guest checks, and cash register journal;

5.        Transaction privilege tax returns. Sorted by month by year;

6.        Income tax returns. Sorted by year; and

7.        Payroll records. Sorted by pay period by year.

F.       If a licensee holds multiple licenses for business premises, one of which is for a hotel-motel or restaurant, the licensee shall ensure that records for purchases and sales for the hotel-motel or restaurant are maintained and accounted for separate from records for purchases and sales for the other license on the same premises.

G.      This Section is authorized by A.R.S. §§ 4-205.01 and 4- 205.02.

Historical Note

New Section R19-1-317 recodified from R19-1-303 at 8

A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Sec- tion repealed by final rulemaking at 19 A.A.R. 1355,

effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6,

2013 (Supp. 13-2).