Stricken language would be deleted from and underlined language would be added to present law.
*CRH012* 01-26-2023 09:03:57 CRH012
State of Arkansas As Engrossed: H1/26/23 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1162 3
4
By: Representatives Ray, G. Hodges 5
By: Senators J. Boyd, J. English 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW REGARDING MICROB REWERY-9
RESTAURANTS; TO AUTH ORIZE MICROBREWERY-RESTAURANTS TO 10
MANUFACTURE AND SELL READY-TO-DRINK PRODUCT; AND F OR 11
OTHER PURPOSES. 12
13
14
Subtitle 15
TO AMEND THE LAW REGARDING MICROBREWERY -16
RESTAURANTS; AND TO AUTHORIZE 17
MICROBREWERY-RESTAURANTS TO MANUFACTURE 18
AND SELL READY-TO-DRINK PRODUCT. 19
20
21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
23
SECTION 1. Arkansas Code § 3 -5-1202(3), concerning the definition of 24
"beer, malt beverage, and hard cider law or rule", is amended to read as 25
follows: 26
(3) “Beer, malt beverage, and hard cider, or ready-to-drink 27
product law or rule” means any law of this state, or any rule promulgated and 28
adopted with respect thereto, that is: 29
(A) Applicable to a person applying for or holding a 30
license to manufacture beer, malt beverage, or hard cider, or ready-to-drink 31
product; or 32
(B) Applicable to a person applying for or holding a 33
license to sell beer, malt beverage, or hard cider, or ready-to-drink product 34
in a restaurant for consumption on or off the licensed premises; 35
36 As Engrossed: H1/26/23 HB1162
2 01-26-2023 09:03:57 CRH012
SECTION 2. Arkansas Code § 3 -5-1202(5), concerning the definition of 1
"conflicting beer, malt beverage, and hard cider law or r ule", is amended to 2
read as follows: 3
(5) “Conflicting beer, malt beverage, or hard cider, or ready-4
to-drink product law or rule” means any beer, malt beverage, or hard cider, 5
or ready-to-drink product law or rule that prohibits or conflicts with the 6
otherwise legal licensing and operation of microbrewery -restaurants, as 7
authorized in this subchapter, by requiring any brewer to sell only to a 8
licensed wholesaler, or requiring any licensed retailer to sell only beer, 9
malt beverage, or hard cider, or ready-to-drink product purchased from a 10
licensed wholesaler, or prohibiting any brewer or retailer from having any 11
ownership or employment interest in the business of the other or the premises 12
of the other, or requiring that the excise and enforcement tax on bee r, malt 13
beverage, or hard cider, or ready-to-drink product manufactured by a brewer 14
be paid by a licensed wholesaler, or any beer, malt beverage, or hard cider, 15
or ready-to-drink product law or rule of similar direct or indirect effect; 16
17
SECTION 3. Arkansas Code § 3-5-1202, concerning definitions related to 18
microbrewery-restaurants, is amended to add an additional subdivision to read 19
as follows: 20
(12) "Ready-to-drink product" means a product containing 21
spirituous liquor with a final finished product of no greater than fifteen 22
percent (15%) alcohol by weight. 23
24
SECTION 4. Arkansas Code § 3 -5-1203 is amended to read as follows: 25
3-5-1203. Effect on other laws. 26
Every provision of this subchapter shall be subject to all beer, malt 27
beverage, and hard cider, or ready-to-drink product laws and rules, except 28
that conflicting beer, malt beverage, and hard cider, or ready-to-drink 29
product laws and rules shall be inapplicable to any provision of this 30
subchapter to the extent that they conflict herewith. 31
32
SECTION 5. Arkansas Code § 3 -5-1204(a), concerning the scope of a 33
microbrewery-restaurant license, is amended to read as follows: 34
(a) The Director of the Alcoholic Beverage Control Division may issue 35
a microbrewery-restaurant license which shall authorize the licensee to do 36 As Engrossed: H1/26/23 HB1162
3 01-26-2023 09:03:57 CRH012
the following: 1
(1)(A) To: 2
(i) Operate a microbrewery which shall manufacture 3
one (1) or more varieties of beer, malt beverage, ready-to-drink product, or 4
hard cider in an aggregate quantity not to exceed forty -five thousand 5
(45,000) barrels per year from all facilities under common ownership with the 6
microbrewery; and 7
(ii) Store the manufactured beer, malt beverage, 8
ready-to-drink product, or hard cider and any other beer, malt beverage, 9
ready-to-drink product, or hard cider which the microbrewery-restaurant 10
licensee may purchase from wholesalers and small brewers licensed by this 11
state on the microbrewery -restaurant licensed premises and on the premises of 12
the one (1) separate brewing facility of a microbrewery -restaurant authorized 13
under subdivision (a)(9)(a)(10) of this section. 14
(B) Two (2) or more microbrewery -restaurants sharing 15
common ownership or a brewery of any size sharing common ownership with a 16
microbrewery-restaurant shall be considered one (1) entity for purposes of: 17
(i) Calculating barrel production; and 18
(ii) Transportation of beer, malt beverage, ready-19
to-drink product, or hard cider produced by one (1) entity among no more than 20
three (3) microbrewery -restaurant facilities of the one (1) entity; 21
(2) To operate a restaurant which shall be the sales outlet for 22
beer, malt beverage, ready-to-drink product, or hard cider manufactured by 23
the microbrewery and which shall sell the beer, malt beverage, ready-to-drink 24
product, or hard cider and any other beer, malt beverage, ready-to-drink 25
product, hard cider, or wine which the microbrewery -restaurant licensee may 26
purchase from wholesalers licensed by this state for consumption on the 27
licensed premises or purchased directly from licensed small brewers allowed 28
to distribute directly to the microbrewe ry-restaurant; 29
(3)(A) To sell on the premises beer, malt beverage, ready-to-30
drink product, or hard cider manufactured by the microbrewery or commonly 31
owned facility in brewery -sealed packages at retail directly to the consumer 32
for off-premises consumption on any day of the week . 33
(B) A ready-to-drink product authorized for sale for off -34
premises consumption under subdivision (a)(3)(A) of this section shall be 35
sold only from the location where the ready -to-drink product is manufactured ; 36 As Engrossed: H1/26/23 HB1162
4 01-26-2023 09:03:57 CRH012
and 1
(B)(4) To serve on the premises complimentary samples of 2
beer, malt beverages, ready-to-drink product, or hard cider produced by the 3
microbrewery-restaurant; 4
(4)(A)(5)(A) To provide products it manufactures to charitable 5
or nonprofit organizations or sell for r esale products it manufactures to 6
charitable or nonprofit organizations holding valid special -event permits as 7
provided for by the Alcoholic Beverage Control Board, except that the 8
microbrewery-restaurant licensee may not sell to nonprofit organizations 9
holding private club licenses. 10
(B) The sale of those products shall be limited to the 11
duration of the particular special event; 12
(5)(6) To sell beer, malt beverages, ready-to-drink product, or 13
hard cider manufactured by the microbrewery -restaurant to a nonprofit 14
corporation leasing space in the microbrewery -restaurant or in an adjoining 15
building; 16
(6)(A)(7)(A) To sell at retail by the drink or by the package 17
beer produced on the premises of the microbrewery -restaurant if all sales 18
occur in a wet terri tory and at fairs and food and beer festivals, with the 19
permission and the consent of the management of events. 20
(B) A sales and use tax permit is required for sales under 21
this subdivision (a)(6)(a)(7); 22
(7) Sell(8) To sell beer, malt beverage, ready-to-drink 23
product, or hard cider of its own manufacture to a wholesale dealer licensed 24
by this state for the purpose of resale to other retail license holders as 25
set forth by §§ 3-4-605 and 3-5-101, dealing with wholesale distribution of 26
beer, malt beverage, ready-to-drink product, and hard cider; 27
(8)(A) Conduct(9)(A) To conduct beer-, malt beverage-, ready-28
to-drink product-, and hard cider-tasting events for educational or 29
promotional purposes at any location in wet areas of this state if: 30
(i) A request for approval to conduct a beer -, malt 31
beverage-, ready-to-drink product-, and hard cider-tasting event is received 32
by the Alcoholic Beverage Control Division at least two (2) weeks before the 33
event; 34
(ii) The request is approved by the division; and 35
(iii) Written notice is given by the division to the 36 As Engrossed: H1/26/23 HB1162
5 01-26-2023 09:03:57 CRH012
permit holder at least five (5) days before the event. 1
(B) Only beer, malt beverage, ready-to-drink product, and 2
hard cider produced by the microbrewery -restaurant shall be used for an even t 3
approved under this subdivision (a)(8)(a)(9). 4
(C) This subdivision (a)(8)(a)(9) does not authorize the 5
conducting of a beer -, malt beverage-, ready-to-drink product-, and hard 6
cider-tasting event at the one (1) separate brewing facility of a 7
microbrewery-restaurant authorized under subdivision (a)(9)(a)(10) of this 8
section; and 9
(9)(A) Maintain (10)(A) To maintain one (1) separate brewing 10
facility for the production or storage of beer, malt liquor, ready-to-drink 11
product, or hard cider as needed to meet demand, except that each facility 12
used by the microbrewery -restaurant licensee shall not in the aggregate 13
produce more than forty -five thousand (45,000) barrels of beer, malt 14
beverage, ready-to-drink product, and hard cider per year ; and. 15
(B) Beer, malt beverage, and hard cider produced by a 16
separate brewing facility of a microbrewery -restaurant licensee shall be: 17
(i) Sold to a licensed wholesaler; or 18
(ii) Transported: 19
(a) From the separate brewing facility to a 20
microbrewery-restaurant commonly owned by the owner of the separate brewing 21
facility for retail sale for consumption on or off the licensed premises; and 22
(b) To the separate brewing facility from a 23
microbrewery-restaurant commonly owned by the owner of the separate bre wing 24
facility for storage, production, or packaging. 25
(C) Ready-to-drink products produced by a 26
separate brewing facility of a microbrewery -restaurant licensee shall be sold 27
only to a licensed wholesaler. 28
SECTION 6. Arkansas Code § 3 -5-1205 is amended to read as follows: 29
3-5-1205. Fees and taxes. 30
A microbrewery-restaurant licensee shall: 31
(1) Pay any applicable city or county license or permit fees and 32
barrelage or taxes and shall pay a state licensing fee to the Alcoholic 33
Beverage Control Division of seven hundred fifty dollars ($750) per fiscal 34
year to manufacture and sell its beer, malt beverages, ready-to-drink 35
product, and hard cider for consumption both on and off the premises and to 36 As Engrossed: H1/26/23 HB1162
6 01-26-2023 09:03:57 CRH012
sell any other beer, malt beverages, ready-to-drink product, and hard cider 1
purchased from a licensed wholesaler for consumption on the premises; 2
(2) Measure beer, malt beverages, ready-to-drink product, and 3
hard cider manufactured by the microbrewery, otherwise comply with applicable 4
rules respecting excise and enforcement tax determination of the beer, malt 5
beverages, ready-to-drink product, and hard cider, and pay any applicable 6
bond or deposit and the amount of the state excise tax and enforcement tax to 7
this state, but free from the fees and taxes provided in § 3 -5-205, and as 8
required by §§ 3-7-104 and 3-7-111; and 9
(3) Pay a tax at the rate of s even dollars and fifty cents 10
($7.50) per barrel, and proportionately for larger and smaller gallonages per 11
barrel, on all beer, malt beverages, ready-to-drink product, and hard cider 12
in quantities of up to forty -five thousand (45,000) barrels per year prod uced 13
and sold or offered for sale in the state. 14
15
/s/Ray 16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36