Arkansas 2023 Regular Session

Arkansas House Bill HB1162 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 169 of the Regular Session
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4	3
5	4		State of Arkansas As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 HOUSE BILL 1162 3
8	7		4
9	8		By: Representatives Ray, G. Hodges 5
10	9		By: Senators J. Boyd, J. English 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO AMEND THE LAW REGARDING MICROB REWERY-9
14	13		RESTAURANTS; TO AUTH ORIZE MICROBREWERY-RESTAURANTS TO 10
15	14		MANUFACTURE AND SELL READY-TO-DRINK PRODUCT; AND F OR 11
16	15		OTHER PURPOSES. 12
17	16		13
18	17		14
19	18		Subtitle 15
20	19		TO AMEND THE LAW REGARDING MICROBREWERY -16
21	20		RESTAURANTS; AND TO AUTHORIZE 17
22	21		MICROBREWERY-RESTAURANTS TO MANUFACTURE 18
23	22		AND SELL READY-TO-DRINK PRODUCT. 19
24	23		20
25	24		21
26	25		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
27	26		23
28	27		SECTION 1. Arkansas Code § 3 -5-1202(3), concerning the definition of 24
29	28		"beer, malt beverage, and hard cider law or rule", is amended to read as 25
30	29		follows: 26
31	30		(3) “Beer, malt beverage, and hard cider, or ready-to-drink 27
32	31		product law or rule” means any law of this state, or any rule promulgated and 28
33	32		adopted with respect thereto, that is: 29
34	33		(A) Applicable to a person app lying for or holding a 30
35	34		license to manufacture beer, malt beverage, or hard cider, or ready-to-drink 31
36	35		product; or 32
37	36		(B) Applicable to a person applying for or holding a 33
38	37		license to sell beer, malt beverage, or hard cider, or ready-to-drink product 34
39	38		in a restaurant for consumption on or off the licensed premises; 35
40	39		36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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44	43
45	44		SECTION 2. Arkansas Code § 3 -5-1202(5), concerning the definition of 1
46	45		"conflicting beer, malt beverage, and hard cider law or rule", is amended to 2
47	46		read as follows: 3
48	47		(5) “Conflicting beer, malt be verage, or hard cider, or ready-4
49	48		to-drink product law or rule” means any beer, malt beverage, or hard cider, 5
50	49		or ready-to-drink product law or rule that prohibits or conflicts with the 6
51	50		otherwise legal licensing and operation of microbrewery -restaurants, as 7
52	51		authorized in this subchapter, by requiring any brewer to sell only to a 8
53	52		licensed wholesaler, or requiring any licensed retailer to sell only beer, 9
54	53		malt beverage, or hard cider, or ready-to-drink product purchased from a 10
55	54		licensed wholesaler, or prohibiting any brewer or retailer from having any 11
56	55		ownership or employment interest in the business of the other or the premises 12
57	56		of the other, or requiring that the excise and enforcement tax on beer, malt 13
58	57		beverage, or hard cider, or ready-to-drink product manufactured by a brewer 14
59	58		be paid by a licensed wholesaler, or any beer, malt beverage, or hard cider, 15
60	59		or ready-to-drink product law or rule of similar direct or indirect effect; 16
61	60		17
62	61		SECTION 3. Arkansas Code § 3 -5-1202, concerning definitions related to 18
63	62		microbrewery-restaurants, is amended to add an additional subdivision to read 19
64	63		as follows: 20
65	64		(12) "Ready-to-drink product" means a product containing 21
66	65		spirituous liquor with a final finished product of no greater than fifteen 22
67	66		percent (15%) alcohol by weight. 23
68	67		24
69	68		SECTION 4. Arkansas Code § 3-5-1203 is amended to read as follows: 25
70	69		3-5-1203. Effect on other laws. 26
71	70		Every provision of this subchapter shall be subject to all beer, malt 27
72	71		beverage, and hard cider, or ready-to-drink product laws and rules, except 28
73	72		that conflicting beer, malt beverage, and hard cider, or ready-to-drink 29
74	73		product laws and rules shall be inapplicable to any provision of this 30
75	74		subchapter to the extent that they conflict herewith. 31
76	75		32
77	76		SECTION 5. Arkansas Code § 3 -5-1204(a), concerning the scope of a 33
78	77		microbrewery-restaurant license, is amended to read as follows: 34
79	78		(a) The Director of the Alcoholic Beverage Control Division may issue 35
80	79		a microbrewery-restaurant license which shall authorize the licensee to do 36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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84	83
85	84		the following: 1
86	85		(1)(A) To: 2
87	86		(i) Operate a microbr ewery which shall manufacture 3
88	87		one (1) or more varieties of beer, malt beverage, ready-to-drink product, or 4
89	88		hard cider in an aggregate quantity not to exceed forty -five thousand 5
90	89		(45,000) barrels per year from all facilities under common ownership with the 6
91	90		microbrewery; and 7
92	91		(ii) Store the manufactured beer, malt beverage, 8
93	92		ready-to-drink product, or hard cider and any other beer, malt beverage, 9
94	93		ready-to-drink product, or hard cider which the microbrewery -restaurant 10
95	94		licensee may purchase from wholesalers a nd small brewers licensed by this 11
96	95		state on the microbrewery -restaurant licensed premises and on the premises of 12
97	96		the one (1) separate brewing facility of a microbrewery -restaurant authorized 13
98	97		under subdivision (a)(9)(a)(10) of this section. 14
99	98		(B) Two (2) or more microbrewery -restaurants sharing 15
100	99		common ownership or a brewery of any size sharing common ownership with a 16
101	100		microbrewery-restaurant shall be considered one (1) entity for purposes of: 17
102	101		(i) Calculating barrel production; and 18
103	102		(ii) Transportation of beer, malt beverage, ready-19
104	103		to-drink product, or hard cider produced by one (1) entity among no more than 20
105	104		three (3) microbrewery -restaurant facilities of the one (1) entity; 21
106	105		(2)(A) To operate a restaurant which shall be the sales outlet 22
107	106		for beer, malt beverage, ready-to-drink product, or hard cider manufactured 23
108	107		by the microbrewery and which shall sell the beer, malt beverage, ready-to-24
109	108		drink product, or hard cider and any other beer , malt beverage, ready-to-25
110	109		drink product, hard cider, or wine which the microbrewery -restaurant licensee 26
111	110		may purchase from wholesalers licensed by this state for consumption on the 27
112	111		licensed premises or purchased directly from licensed small brewers allowed 28
113	112		to distribute directly to the microbrewery -restaurant. 29
114	113		(B) On-premises consumption of a ready -to-drink product 30
115	114		shall only be allowed in cities and counties, or portions of cities and 31
116	115		counties, in which the manufacture or sale of intoxicating liquor is not 32
117	116		prohibited as a result of a local option election held under Initiated Act 33
118	117		No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, and in which the 34
119	118		sale of alcoholic beverages for on -premises consumption has been approved by 35
120	119		a majority vote at a ref erendum election as provided in § 3 -9-201 et seq.; 36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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124	123
125	124		(3)(A) To sell on the premises beer, malt beverage, ready-to-1
126	125		drink product, or hard cider manufactured by the microbrewery or commonly 2
127	126		owned facility in brewery -sealed packages at retail directly to the consumer 3
128	127		for off-premises consumption on any day of the week . 4
129	128		(B) A ready-to-drink product authorized for sale for off -5
130	129		premises consumption under subdivision (a)(3)(A) of this section shall be 6
131	130		sold only from the location where the ready -to-drink product is manufactured; 7
132	131		and 8
133	132		(B)(4) To serve on the premises complimentary samples of 9
134	133		beer, malt beverages, ready-to-drink product, or hard cider produced by the 10
135	134		microbrewery-restaurant; 11
136	135		(4)(A)(5)(A) To provide products it manufactures to charitable 12
137	136		or nonprofit organizations or sell for resale products it manufactures to 13
138	137		charitable or nonprofit organizations holding valid special -event permits as 14
139	138		provided for by the Alcoholic Beverage Control Board, except that the 15
140	139		microbrewery-restaurant licensee may no t sell to nonprofit organizations 16
141	140		holding private club licenses. 17
142	141		(B) The sale of those products shall be limited to the 18
143	142		duration of the particular special event; 19
144	143		(5)(6) To sell beer, malt beverages, ready-to-drink product, or 20
145	144		hard cider manufactured by the microbrewery-restaurant to a nonprofit 21
146	145		corporation leasing space in the microbrewery -restaurant or in an adjoining 22
147	146		building; 23
148	147		(6)(A)(7)(A) To sell at retail by the drink or by the package 24
149	148		beer produced on the premises of the microbrewery -restaurant if all sales 25
150	149		occur in a wet territory and at fairs and food and beer festivals, with the 26
151	150		permission and the consent of the management of events. 27
152	151		(B) A sales and use tax permit is required for sales under 28
153	152		this subdivision (a)(6)(a)(7); 29
154	153		(7) Sell(8) To sell beer, malt beverage, ready-to-drink 30
155	154		product, or hard cider of its own manufacture to a wholesale dealer licensed 31
156	155		by this state for the purpose of resale to other retail license holders as 32
157	156		set forth by §§ 3-4-605 and 3-5-101, dealing with wholesal e distribution of 33
158	157		beer, malt beverage, ready-to-drink product, and hard cider; 34
159	158		(8)(A) Conduct(9)(A) To conduct beer-, malt beverage-, ready-35
160	159		to-drink product-, and hard cider-tasting events for educational or 36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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165	164		promotional purposes at any location in wet areas of this state if: 1
166	165		(i) A request for approval to conduct a beer -, malt 2
167	166		beverage-, ready-to-drink product-, and hard cider-tasting event is received 3
168	167		by the Alcoholic Beverage Control Division at least two (2) weeks before the 4
169	168		event; 5
170	169		(ii) The request is approved by the division; and 6
171	170		(iii) Written notice is given by the division to the 7
172	171		permit holder at least five (5) days before the event. 8
173	172		(B) Only beer, malt beverage, ready-to-drink product, and 9
174	173		hard cider produced by the microbrewery -restaurant shall be used for an event 10
175	174		approved under this subdivision (a)(8)(a)(9). 11
176	175		(C) This subdivision (a)(8)(a)(9) does not authorize the 12
177	176		conducting of a beer -, malt beverage-, ready-to-drink product-, and hard 13
178	177		cider-tasting event at the one (1) separate brewing facility of a 14
179	178		microbrewery-restaurant authorized under subdivision (a)(9)(a)(10) of this 15
180	179		section; and 16
181	180		(9)(A) Maintain (10)(A) To maintain one (1) separate brewing 17
182	181		facility for the production or storage of beer, malt liquor, ready-to-drink 18
183	182		product, or hard cider as needed to meet demand, except that each facility 19
184	183		used by the microbrewery -restaurant licensee shall not in the aggregate 20
185	184		produce more than forty -five thousand (45,000) barrels of be er, malt 21
186	185		beverage, ready-to-drink product, and hard cider per year ; and. 22
187	186		(B) Beer, malt beverage, and hard cider produced by a 23
188	187		separate brewing facility of a microbrewery -restaurant licensee shall be: 24
189	188		(i) Sold to a licensed wholesaler; or 25
190	189		(ii) Transported: 26
191	190		(a) From the separate brewing facility to a 27
192	191		microbrewery-restaurant commonly owned by the owner of the separate brewing 28
193	192		facility for retail sale for consumption on or off the licensed premises; and 29
194	193		(b) To the separate brewing fac ility from a 30
195	194		microbrewery-restaurant commonly owned by the owner of the separate brewing 31
196	195		facility for storage, production, or packaging. 32
197	196		(C) Ready-to-drink products produced by a 33
198	197		separate brewing facility of a microbrewery -restaurant licensee shall b e sold 34
199	198		only to a licensed wholesaler. " 35
200	199		36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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204	203
205	204		SECTION 6. Arkansas Code § 3 -5-1204, concerning microbrewery -1
206	205		restaurant licenses issued by the Alcoholic Beverage Control Division, is 2
207	206		amended to add an additional subsection to read as follows: 3
208	207		(d) A microbrewery-restaurant license holder that manufactures a 4
209	208		ready-to-drink product shall comply with all federal laws and regulations, 5
210	209		including without limitation obtaining a license to distill, warehouse, or 6
211	210		process spirituous liquor issued by the Alcohol and Tobacco Tax and Trade 7
212	211		Bureau of the United States Department of the Treasury. 8
213	212		9
214	213		SECTION 7. Arkansas Code § 3 -5-1205 is amended to read as follows: 10
215	214		3-5-1205. Fees and taxes. 11
216	215		A microbrewery-restaurant licensee shall: 12
217	216		(1) Pay any applicable city o r county license or permit fees and 13
218	217		barrelage or taxes and shall pay a state licensing fee to the Alcoholic 14
219	218		Beverage Control Division of seven hundred fifty dollars ($750) per fiscal 15
220	219		year to manufacture and sell its beer, malt beverages, ready-to-drink 16
221	220		product, and hard cider for consumption both on and off the premises and to 17
222	221		sell any other beer, malt beverages, ready-to-drink product, and hard cider 18
223	222		purchased from a licensed wholesaler for consumption on the premises; 19
224	223		(2) Measure beer, malt beverages, ready-to-drink product, and 20
225	224		hard cider manufactured by the microbrewery, otherwise comply with applicable 21
226	225		rules respecting excise and enforcement tax determination of the beer, malt 22
227	226		beverages, ready-to-drink product, and hard cider, and pay any applicable 23
228	227		bond or deposit and the amount of the state excise tax and enforcement tax to 24
229	228		this state, but free from the fees and taxes provided in § 3 -5-205, and as 25
230	229		required by §§ 3-7-104 and 3-7-111; and 26
231	230		(3) Pay a tax at the rate of seven dollars and fifty cents 27
232	231		($7.50) per barrel, and proportionately for larger and smaller gallonages per 28
233	232		barrel, on all beer, malt beverages, and hard cider in quantities of up to 29
234	233		forty-five thousand (45,000) barrels per year produced and sold or offered 30
235	234		for sale in the state. 31
236	235		32
237	236		/s/Ray 33
238	237		34
239		-	~~APPROVED: 3/2/23~~ 35
	238	+	35
240	239		36