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Estate of Ruben A. Hernandez v. Arizona Board of Regents

11/29/1991

used in this subdivision shall actively operate in not less than thirty-six states or have been in active continuous existence for not less than twenty years.


(e) A social club with more than one hundred bona fide members who are actual residents of the county in which it is located, which owns, maintains or operates club quarters, and which is authorized and incorporated to operate as a nonprofit club under the laws of this state, and has been continuously incorporated and operating for a period of not less than one year. The club shall have had, during such period of one year, 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 at least six dollars 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 per cent 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 thirty days prior to the filing of the petition. The club shall qualify for exemption from the payment of state income taxes under the provision of title 43, it being the intent of this paragraph that a license shall not be granted to a club which 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.


As appellant observes, the state liquor board "may" issue a liquor license to a club that meets one of the definitions of § 4-101. A.R.S. § 4-205(A). In addition, pursuant to A.R.S. § 4-244:


It is unlawful:


1. For a person to buy for resale, sell or deal in spirituous liquors in this state without first having procured a license duly issued by the board.


2. For a person to sell or deal in alcohol for beverage purposes without first complying with this title.


"Sell" is defined as "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." A.R.S. § 4-101(26).


We need not address this issue at great length, however. Appellant has not produced evidence sufficient to bring the local chapter within either of the definitions of club quoted above. Thus, we find no merit to appellant's contention that the local chapter was some sort of de facto licensee.


CUSTODIAL LIABILITY


The trial court requested and received additional memoranda from the parties on the issue of the custodial liability of the local chapter, the house corporation, and the national fraternity. The minute entry is unclear as to the exact basis of the court's ruling with regard to those appellees. All, however, included the immunity of § 4-312(B) as one of the bases for their summary judgment motions. We believe that our determination that A.R.S. § 4-312(B) is both applicable and constitutional resolves the issues as to all appellees. Therefore, we need not address the lengthy arguments of all parties on the issu

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