Stricken language would be deleted from and underlined language would be added to present law.
Act 169 of the Regular Session
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State of Arkansas As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 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 apply ing 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 H2/2/23 H2/7/23 H2/13/23 HB1162
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SECTION 2. Arkansas Code § 3 -5-1202(5), concerning the definition of 1
"conflicting beer, malt beverage, and hard cider law or rule", is amended to 2
read as follows: 3
(5) “Conflicting beer, malt beve rage, 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 an y 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 beer, 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 H2/2/23 H2/7/23 H2/13/23 HB1162
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the following: 1
(1)(A) To: 2
(i) Operate a microbrew ery 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)(A) To operate a restaurant which shall be the sales outlet 22
for beer, malt beverage, ready-to-drink product, or hard cider manufactured 23
by the microbrewery and which shall sell the beer, malt beverage, ready-to-24
drink product, or hard cider and any other beer , malt beverage, ready-to-25
drink product, hard cider, or wine which the microbrewery -restaurant licensee 26
may 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 microbrewery -restaurant. 29
(B) On-premises consumption of a ready -to-drink product 30
shall only be allowed in cities and counties, or portions of cities and 31
counties, in which the manufacture or sale of intoxicating liquor is not 32
prohibited as a result of a local option election held under Initiated Act 33
No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, and in which the 34
sale of alcoholic beverages for on -premises consumption has been approved by 35
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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(3)(A) To sell on the premises beer, malt beverage, ready-to-1
drink product, or hard cider manufactured by the microbrewery or commonly 2
owned facility in brewery -sealed packages at retail directly to the consumer 3
for off-premises consumption on any day of the week . 4
(B) A ready-to-drink product authorized for sale for off -5
premises consumption under subdivision (a)(3)(A) of this section shall be 6
sold only from the location where the ready -to-drink product is manufactured; 7
and 8
(B)(4) To serve on the premises complimentary samples of 9
beer, malt beverages, ready-to-drink product, or hard cider produced by the 10
microbrewery-restaurant; 11
(4)(A)(5)(A) To provide products it manufactures to charitable 12
or nonprofit organizations or sell for resale products it manufactures to 13
charitable or nonprofit organizations holding valid special -event permits as 14
provided for by the Alcoholic Beverage Control Board, except that the 15
microbrewery-restaurant licensee may no t sell to nonprofit organizations 16
holding private club licenses. 17
(B) The sale of those products shall be limited to the 18
duration of the particular special event; 19
(5)(6) To sell beer, malt beverages, ready-to-drink product, or 20
hard cider manufactured by the microbrewery-restaurant to a nonprofit 21
corporation leasing space in the microbrewery -restaurant or in an adjoining 22
building; 23
(6)(A)(7)(A) To sell at retail by the drink or by the package 24
beer produced on the premises of the microbrewery -restaurant if all sales 25
occur in a wet territory and at fairs and food and beer festivals, with the 26
permission and the consent of the management of events. 27
(B) A sales and use tax permit is required for sales under 28
this subdivision (a)(6)(a)(7); 29
(7) Sell(8) To sell beer, malt beverage, ready-to-drink 30
product, or hard cider of its own manufacture to a wholesale dealer licensed 31
by this state for the purpose of resale to other retail license holders as 32
set forth by §§ 3-4-605 and 3-5-101, dealing with wholesal e distribution of 33
beer, malt beverage, ready-to-drink product, and hard cider; 34
(8)(A) Conduct(9)(A) To conduct beer-, malt beverage-, ready-35
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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promotional purposes at any location in wet areas of this state if: 1
(i) A request for approval to conduct a beer -, malt 2
beverage-, ready-to-drink product-, and hard cider-tasting event is received 3
by the Alcoholic Beverage Control Division at least two (2) weeks before the 4
event; 5
(ii) The request is approved by the division; and 6
(iii) Written notice is given by the division to the 7
permit holder at least five (5) days before the event. 8
(B) Only beer, malt beverage, ready-to-drink product, and 9
hard cider produced by the microbrewery -restaurant shall be used for an event 10
approved under this subdivision (a)(8)(a)(9). 11
(C) This subdivision (a)(8)(a)(9) does not authorize the 12
conducting of a beer -, malt beverage-, ready-to-drink product-, and hard 13
cider-tasting event at the one (1) sep arate brewing facility of a 14
microbrewery-restaurant authorized under subdivision (a)(9)(a)(10) of this 15
section; and 16
(9)(A) Maintain (10)(A) To maintain one (1) separate brewing 17
facility for the production or storage of beer, malt liquor, ready-to-drink 18
product, or hard cider as needed to meet demand, except that each facility 19
used by the microbrewery -restaurant licensee shall not in the aggregate 20
produce more than forty -five thousand (45,000) barrels of beer, malt 21
beverage, ready-to-drink product, and hard cider per year; and. 22
(B) Beer, malt beverage, and hard cider produced by a 23
separate brewing facility of a microbrewery -restaurant licensee shall be: 24
(i) Sold to a licensed wholesaler; or 25
(ii) Transported: 26
(a) From the separate brewi ng facility to a 27
microbrewery-restaurant commonly owned by the owner of the separate brewing 28
facility for retail sale for consumption on or off the licensed premises; and 29
(b) To the separate brewing facility from a 30
microbrewery-restaurant commonly ow ned by the owner of the separate brewing 31
facility for storage, production, or packaging. 32
(C) Ready-to-drink products produced by a 33
separate brewing facility of a microbrewery -restaurant licensee shall be sold 34
only to a licensed wholesaler. " 35
36 As Engrossed: H1/26/23 H2/2/23 H2/7/23 H2/13/23 HB1162
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SECTION 6. Arkansas Code § 3 -5-1204, concerning microbrewery -1
restaurant licenses issued by the Alcoholic Beverage Control Division, is 2
amended to add an additional subsection to read as follows: 3
(d) A microbrewery-restaurant license holder that manufactures a 4
ready-to-drink product shall comply with all federal laws and regulations, 5
including without limitation obtaining a license to distill, warehouse, or 6
process spirituous liquor issued by the Alcohol and Tobacco Tax and Trade 7
Bureau of the United States Dep artment of the Treasury. 8
9
SECTION 7. Arkansas Code § 3 -5-1205 is amended to read as follows: 10
3-5-1205. Fees and taxes. 11
A microbrewery-restaurant licensee shall: 12
(1) Pay any applicable city or county license or permit fees and 13
barrelage or taxes and shall pay a state licensing fee to the Alcoholic 14
Beverage Control Division of seven hundred fifty dollars ($750) per fiscal 15
year to manufacture and sell its beer, malt beverages, ready-to-drink 16
product, and hard cider for consumption both on and off the p remises and to 17
sell any other beer, malt beverages, ready-to-drink product, and hard cider 18
purchased from a licensed wholesaler for consumption on the premises; 19
(2) Measure beer, malt beverages, ready-to-drink product, and 20
hard cider manufactured by the microbrewery, otherwise comply with applicable 21
rules respecting excise and enforcement tax determination of the beer, malt 22
beverages, ready-to-drink product, and hard cider, and pay any applicable 23
bond or deposit and the amount of the state excise tax and enforcement tax to 24
this state, but free from the fees and taxes provided in § 3 -5-205, and as 25
required by §§ 3-7-104 and 3-7-111; and 26
(3) Pay a tax at the rate of seven dollars and fifty cents 27
($7.50) per barrel, and proportionately for larger and smal ler gallonages per 28
barrel, on all beer, malt beverages, and hard cider in quantities of up to 29
forty-five thousand (45,000) barrels per year produced and sold or offered 30
for sale in the state. 31
32
/s/Ray 33
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APPROVED: 3/2/23 35
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