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Prohibition (Ordinance G-7086)

Request to authorize the City Manager, or his designee, to amend Chapter 18 of the
Phoenix City Code to prohibit housing discrimination based on a renter or buyer's
source of income.

Summary
On February 17, 2023, Councilmembers Pastor, Guardado and Garcia submitted a
request (Attachment A) to the City Manager to place an item on the March 1, 2023
Formal City Council Agenda. The request is for the City Council to consider an
amendment to Chapter 18 of the Phoenix City Code. The proposed amendment
prohibits the practice of discriminating against a home buyer or renter based on the
buyer or renter's source of income. A person who discriminates against a buyer or
renter based on the buyer or renter's source of income may be subject to civil
penalties of up to $2,500 and daily penalties up to $2,500.

This request is in compliance with Rule 2(c) of the Rules of Council Proceedings.

On Dec. 22, 2022, in response to a 1487 claim, former Attorney General Mark
Brnovich issued Report No. 22-002 that determined the ordinance adopted by the City
of Tucson violated state law. The City of Tucson requested the current Attorney
General Kris Mayes to reconsider Report No. 22-002 and she agreed. To date, a new
report has not been issued. Therefore, the proposed Chapter 18 amendment
prohibiting the practice of discriminating based on the source of income will not be
enforced until after Attorney General Mayes reconsiders Report No. 22-002. After the
Attorney General completes its reconsideration, the City of Phoenix will take
appropriate action.

Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Law Department.

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THIS IS A DRAFT COPY ONLY AND IS NOT AN OFFICIAL COPY OF THE FINAL,
ADOPTED ORDINANCE

ORDINANCE G-
AN ORDINANCE AMENDING CHAPTER 18 OF THE PHOENIX CITY
CODE RELATING TO FAIR HOUSING

_____________________

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PHOENIX as
follows:

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SECTION 1. That the Phoenix City Code, Section 18-11 is amended as
follows:

Sec. 18-11. Declaration of policy.

R It is the intent of the City of Phoenix to undertake vigorous steps to provide
equal opportunity AND PROTECT PEOPLE FROM DISCRIMINATION in

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housing WHICH INCLUDES, BUT IS NOT LIMITED TO, SINGLE-FAMILY
HOMES, SEMI-DETACHED HOMES, MULTIFAMILY HOMES,
TOWNHOMES, CONDOMINIUMS, AND MANUFACTURED HOMES; resolve
housing discrimination disputes at the local level in a timely, cost efficient and
effective manner; extend housing discrimination protection based upon disability,
sexual orientation, gender identity or expression, SOURCE OF INCOME, and to
families with children; exempt housing for the elderly from the provisions
prohibiting discrimination against families with children; provided, that owners,
managers and communities meet stated requirements; obtain substantial
equivalency with the federal government’s housing and discrimination
enforcement efforts and enter into intergovernmental agreements with the State of

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Arizona Attorney General.

IT IS THE INTENT OF THE CITY OF PHOENIX TO PROTECT PEOPLE
FROM DISCRIMINATORY HOUSING PRACTICES. ANY CLAUSE,
PROVISION, REQUIREMENT, OR SPECIFICATION IN A CONTRACT,
AGREEMENT, CONVENANT, OR OBLIGATION THAT IS CONTRARY TO
THIS POLICY OR IS IN VIOLATION OF THIS ARTICLE IS DEEMED
UNENFORCEABLE.
SECTION 2. That the Phoenix City Code, Section 18-11.01 is
amended as follows:
Sec. 18-11.01. Definitions

In addition to the definitions set forth in Section 18-3, in this article, unless
the context otherwise requires:

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AGENT INCLUDES A PERSON WITH AUTHORITY TO ACT ON BEHALF
OF ANOTHER PERSON, INCLUDING REAL ESTATE AGENTS, BROKERS,
OR PROPERTY MANAGEMENT COMPANIES.

Aggrieved person includes any pPerson who either:

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a. Claims to have been injured by a discriminatory housing practice.

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b. Believes that heTHEY will be injured by a discriminatory housing practice that
is about to occur.

Attorney General means the State of Arizona Attorney General.

Complainant means a person, including the City of Phoenix who files a complaint
under Section 18-11.24 OF THE PHOENIX CITY CODE.

Conciliation means the attempted resolution of issues raised by a complaint or by
the investigation of the complaint through informal negotiations involving the
aggrieved person, the respondent and the City of Phoenix.

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Conciliation agreement means a written agreement setting forth the resolution of
the issues in conciliation.

Director means the Director of the City of Phoenix Equal Opportunity Department.

Discriminatory housing practice means an act prohibited by Sections 18-11.16
through 18-11.23 OF THE PHOENIX CITY CODE.
Dwelling means either:

a. Any building, structure or part of a building or structure that is occupied as, or
designed or intended for occupancy as, a residency by one or more families.

b. Any vacant land that is offered for sale or lease for the construction or location
of a building, structure or part of a building or structure described by subsection (a)
of this definition.

Family includes a single individual.

Respondent means either:
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a. The person accused of a violation of this article in a complaint of a

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discriminatory housing practice.

b. Any person identified as an additional or substitute respondent under Section

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18-11.27, or an agent of THE RESPONDENT, OR an AGENT OF THE additional
or substitute respondent.

To rent includes to lease, to sublease, to let or to otherwise grant for a
consideration the right to occupy premises not owned by the occupant.

SOURCE OF INCOME MEANS ANY LAWFUL SOURCE OF INCOME OR
SUPPORT THAT PROVIDES FUNDS TO OR ON BEHALF OF A RENTER OR
BUYER OF HOUSING AND IS VERIFIABLE AS TO AMOUNT,
REGULARITY, RECEIPT, AND LENGTH OF TIME RECEIVED OR TO BE

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RECEIVED, INCLUDING, BUT NOT LIMITED TO WAGES, SALARIES,
GRANT, GIFT, LOAN, INHERITANCE, PENSION, ANNUITY, CHILD
SUPPORT, SPOUSAL SUPPORT, FOSTER CARE SUBSIDIES, RENTAL
ASSISTANCE, SECURITY DEPOSIT OR DOWN PAYMENT ASSISTANCE,
INCOME DERIVED FROM SOCIAL SECURITY OR DISABILITY
INSURANCE, VETERANS’ BENEFITS, SECTION 8 HOUSING CHOICE
VOUCHERS, OR ANY OTHER FORM OF GOVERNMENTAL ASSISTANCE,
BENEFIT, OR SUBSIDY. SOURCE OF INCOME INCLUDES ANY
REQUIREMENT OF ANY SUCH PROGRAM, ASSISTANCE, BENEFIT, OR
SUBSIDY.

SECTION 3. That the Phoenix City Code, Section 18-11.03 is
amended as follows:

Sec. 18-11.03. Exempt sales and rentals

A. Except as provided in subsection B of this section, Sections 18-11.16 through
18-11.23 do not apply to:

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1. The sale or rental of a single-family house sold or rented by an owner if:

a. The owner does not:

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(1) Own more than three single-family houses at any one time.

(2) Own any interest in, nor is there owned or reserved on hisTHEIR
behalf, under any express or voluntary agreement, title to or any right to
any part of the proceeds from the sale or rental of more than three
single-family houses at any one time.

b. The house was sold or rented without either:

(1) The use of the sales or rental facilities or services of a real estate
broker, agent or salesmanSALESPERSON licensed pursuant to
ARIZONA REVISED STATUTES Section 32-2101 et seq., Arizona
Revised Statutes, or the use of an employee or agent of a licensed

D broker, agent or salesmanSALESPERSON or the facilities or services
of the owner of a dwelling designed or intended for occupancy by five
or more families.

(2) The publication, posting or mailing of a notice, statement or
advertisement prohibited by Section 18-11.17.
2. The sale or rental of rooms or units in a dwelling containing living quarters
occupied or intended to be occupied by no more than four families living
independently of each other if the owner maintains and occupies one of the
living quarters as the owner’s residence.

B. The exemption in subsection A.1 of this section applies to only one sale or
rental in a 24-month period if the owner was not the most recent resident of the
house at the time of the sale or rental.

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C. THE EXEMPTIONS IN THIS SECTION 18-11.03, DO NOT APPLY TO
SALES AND RENTALS IF THE ALLEGED DISCRIMINATION ARISES
EXCLUSIVELY FROM SOURCE OF INCOME.

SECTION 4. That the Phoenix City Code, Section 18-11.06 is

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amended as follows:

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Sec. 18-11.06 Appraisal exemptions.

This article does not prohibit a person engaged in the business of furnishing
appraisals of real property from CONSIDERING taking into consideration factors
other than race, color, religion, sex, disability, familial status, national origin,
sexual orientation, SOURCE OF INCOME, or gender identity or expression IN
THEIR APPRAISALS.

SECTION 5. That the Phoenix City Code, Section 18-11.16 is
amended as follows:

Sec. 18-11.16. Discrimination in sale or rental.

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A. A person may not refuse to sell or rent after a bona fide offer has been made or
refuse to negotiate for the sale of or otherwise make unavailable or deny a dwelling
to any person because of race, color, religion, sex, disability, familial status,
national origin, sexual orientation, or gender identity or expression, OR SOURCE
OF INCOME.
B. A person may not discriminate against any person in the terms, conditions or
privileges of sale or rental of a dwelling, or in providing services or facilities in
connection with the sale or rental, because of race, color, religion, sex, disability,
familial status, national origin, sexual orientation, or gender identity or expression,
OR SOURCE OF INCOME.

C. This section does not prohibit discrimination against a person because the
person has been convicted under federal law or the law of any state of the illegal
manufacture or distribution of a controlled substance.

SECTION 6.
amended as follows:

Sec. 18-11.17.
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That the Phoenix City Code, Section 18-11.17 is

Publication of sales or rentals.

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A person may not make, print or publish or cause to be made, printed or published
any notice, statement or advertisement with respect to the sale or rental of a

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dwelling that indicates any preference, limitation or discrimination based on race,
color, religion, sex, disability, familial status, national origin, sexual orientation, or
gender identity or expression, SOURCE OF INCOME, or an intention to make
such a preference, limitation or discrimination.

SECTION 7.
amended as follows:
That the Phoenix City Code, Section 18-11.18 is

Sec. 18-11.18 Inspection of dwelling.

A person may not represent to any person because of race, color, religion, sex,

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disability, familial status, national origin, sexual orientation, or gender identity or
expression, OR SOURCE OF INCOME that a dwelling is not available for
inspection, for sale, or rental if the dwelling is available for inspection, SALE, OR
RENT.

SECTION 8.
amended as follows:
That the Phoenix City Code, Section 18-11.19 is
Sec. 18-11.19. Entry into neighborhood.

A person, for profit, may not induce or attempt to induce a person to sell or rent a
dwelling by representations regarding the entry or prospective entry into a
neighborhood of a person of a particular race, color, religion, sex, disability,
familial status, national origin, sexual orientation, or gender identity or expression,
OR SOURCE OF INCOME.

SECTION 9. That the Phoenix City Code, Section 18-11.22 is
amended as follows:

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A. A person whose business includes engaging in residential real estate related
transactions may not discriminate against a person in making a real estate related

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transaction available or in the terms or conditions of a real estate related
transaction because of race, color, religion, sex, disability, familial status, national
origin, sexual orientation, or gender identity or expression, OR SOURCE OF

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INCOME.

B. In this section, residential real estate related transaction means:

1. Making or purchasing loans or providing other financial assistance either:

a. To purchase, construct, improve, repair or maintain a dwelling.

b. To secure residential real estate.

2. Selling, brokering or appraising residential real property

D SECTION 10.
amended as follows:
That the Phoenix City Code, Section 18-11.23 is

A person may not deny any person access to, or membership or participation
in, a multiple listing service, real estate brokers’ organization or other service,
organization or facility relating to the business of selling or renting dwellings or
may not discriminate against a person in the terms or conditions of access,
membership or participation in such an organization, service or facility because of
race, color, religion, sex, disability, familial status, national origin, sexual
orientation, or gender identity or expression, OR SOURCE OF INCOME.

SECTION 11. Chapter 18, Phoenix City Code, is amended by adding
new Section 18-11.37.01 to read:

Sec. 18-11.37.01. VIOLATION OF A CIVIL INFRACTION;
PENALTIES.

A. THE REMEDIES HEREIN ARE CUMULATIVE AND THE CITY MAY
PROCEED UNDER ONE OR MORE SUCH REMEDIES.

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B. THE FOLLOWING PENALTIES SHALL BE IMPOSED BY THE
MUNICIPAL COURT OF THE CITY OF PHOENIX FOR CIVIL
INFRACTIONS UNDER THIS ARTICLE:

R 1. A PERSON WHO CAUSES, PERMITS, FACILITATES, OR AIDS OR
ABETS ANY VIOLATION OF THIS ARTICLE OR WHO FAILS TO
PERFORM ANY ACT OR DUTY REQUIRED BY THIS ARTICLE IS

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SUBJECT TO CIVIL SANCTION AS FOLLOWS:
(A) FOR THE FIRST VIOLATION, A CIVIL PENALTY OF NOT LESS
THAN THREE HUNDRED DOLLARS ($300.00) AND NO MORE THAN
TWENTY-FIVE HUNDRED DOLLARS ($2,500.00).
(B) FOR THE SECOND VIOLATION, A CIVIL PENALTY OF NOT
LESS THAN SIX HUNDRED DOLLARS ($600.00) AND NO MORE
THAN TWENTY-FIVE HUNDRED DOLLARS ($2,500.00).
(C) FOR A THIRD VIOLATION, A CIVIL PENALTY OF NOT LESS
THAN NINE HUNDRED DOLLARS ($900.00) AND NO MORE THAN
TWENTY-FIVE HUNDRED DOLLARS ($2,500.00).

D (D) THE IMPOSITION OF A PENALITY PURSUANT TO THIS
SECTION SHALL NOT BE SUSPENDED.
2. FAILURE OF A PERSON TO COMPLY WITH ANY ORDER FOR A
VIOLATION UNDER THIS SECTION SHALL RESULT IN AN ADDITIONAL
CIVIL PENALTIES AS FOLLOWS:
(A) NOT LESS THAN THREE HUNDRED DOLLARS ($300.00) AND
NO MORE THAN TWENTY-FIVE HUNDRED DOLLARS ($2,500.00)
FOR EACH DAY THE PERSON FAILS TO COMPLY.
(B) A PERSON'S SECOND FAILURE TO COMPLY WITH ANY ORDER
SHALL RESULT IN AN ADDITIONAL FINE OF NOT LESS THAN SIX
HUNDRED DOLLARS ($600.00) AND NO MORE THAN TWENTY-
FIVE HUNDRED DOLLARS ($2,500.00) FOR EACH DAY AFTER THE
FIRST DETERMINATION OF THE PERSON'S FAILURE TO COMPLY.
(C) A PERSON'S THIRD FAILURE TO COMPLY WITH ANY ORDER
SHALL RESULT IN AN ADDITIONAL FINE OF NOT LESS THAN
NINE HUNDRED DOLLARS ($900.00) AND NO MORE THAN
TWENTY-FIVE HUNDRED DOLLARS ($2,500.00) FOR EACH DAY
AFTER THE THIRD DETERMINATION OF THE PERSON'S FAILURE
TO COMPLY.
SECTION 12.
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Chapter 18, Phoenix City Code, is amended by adding
new Section 18-11.37.02 to read:

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SEC. 18-11.37.02. PATTERN OR PRACTICE CASES.
A. THE CITY ATTORNEY SHALL FILE A CIVIL ACTION IN SUPERIOR

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COURT FOR APPROPRIATE RELIEF IF THE CITY ATTORNEY HAS
REASONABLE CAUSE TO BELIEVE THAT EITHER:

1. A PERSON IS ENGAGED IN A PATTERN OR PRACTICE OF
RESISTANCE TO THE FULL ENJOYMENT OF ANY RIGHT GRANTED
BY THIS ARTICLE.

2. A PERSON HAS BEEN DENIED ANY RIGHT GRANTED BY THIS
ARTICLE AND THAT DENIAL RAISES AN ISSUE OF GENERAL
PUBLIC IMPORTANCE.

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B. IN AN ACTION UNDER THIS SECTION THE COURT MAY:

1. AWARD PREVENTIVE RELIEF, INCLUDING A PERMANENT OR
TEMPORARY INJUNCTION, RESTRAINING ORDER, OR OTHER
ORDER AGAINST THE PERSON RESPONSIBLE FOR A VIOLATION OF
THIS ARTICLE AS NECESSARY TO ASSURE THE FULL ENJOYMENT
OF THE RIGHTS GRANTED BY THIS ARTICLE.
2. AWARD OTHER APPROPRIATE RELIEF, INCLUDING MONETARY
DAMAGES, REASONABLE ATTORNEY FEES, AND COURT COSTS.

3. TO VINDICATE THE PUBLIC INTEREST, ASSESS A CIVIL
PENALTY AGAINST THE RESPONDENT IN AN AMOUNT THAT DOES
NOT EXCEED:

A. FIFTY THOUSAND DOLLARS FOR A FIRST VIOLATION.

B. ONE HUNDRED THOUSAND DOLLARS FOR A SECOND OR
SUBSEQUENT VIOLATION.

SECTION 13. SEVERABILITY T
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It is hereby declared to be the intention of the city council that the sections,
paragraphs, sentences, clauses, and words of this code are severable and if any
word, clause, sentence, paragraph, or section of this code shall be declared

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unconstitutional or invalid for any reason by the valid judgment or decree of any
court of competent jurisdiction, such unconstitutionality or invalidity shall not
affect any of the remaining words, clauses, sentences, paragraphs and sections of
this code, since the same would have been enacted by the city council without the
incorporation in this code of any such unconstitutional or invalid word, clause,
sentence, paragraph, or section.

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ATTACHMENT A

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View on Agenda Online ↗

Meeting City Council Formal Meeting-3/1/2023 complete

1. ¶ Summary

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2. ¶ Liquor License - 007 Pub

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3. ¶ Liquor License - Chronic Tacos

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4. ¶ Liquor License - Special Event - Lump Busters

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5. ¶ Liquor License - Special Event - St. Gabriel the Archangel Roman Catholic

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6. ¶ Liquor License - Special Event - St. Gabriel the Archangel Roman Catholic

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7. ¶ Liquor License - Kona Grill

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8. ¶ Liquor License - Maskadores Tacos

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9. ¶ Liquor License - Tocaya Modern Mexican

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10. ¶ Liquor License - Cactus Tavern

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11. ¶ Liquor License - J's Drive Thru

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12. ¶ Liquor License - Stop 143

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13. ¶ Liquor License - Special Event - Cancer Support Community Arizona

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14. ¶ Liquor License - Special Event - Encanto Palmcroft Benefits

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15. ¶ Liquor License - Special Event - St. Mary's Roman Catholic High School Phoenix

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16. ¶ Liquor License - Bunkhouse Lounge

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17. ¶ Liquor License - CC's on Central

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18. ¶ Liquor License - Special Event - Madison Camelview Parent Teacher

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19. ¶ Liquor License - Clarendale Arcadia

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20. ¶ Liquor License - Gus's World Famous Fried Chicken

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21. ¶ Liquor License - Tacos Veganos

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22. ¶ Liquor License - Vero Chicago Pizza Ahwatukee

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23. ¶ Liquor License - Special Event - St. Patrick's Day Parade and Irish Society of

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24. ¶ Liquor License - Oak & Steel Fine Wines LLC

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25. ¶ Liquor License - QuikTrip #1447

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26. ¶ Liquor License - Special Event - Jupiter Foundation

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27. ¶ Liquor License - Special Event - Southwest Kids' Cancer Foundation, Inc.