Stricken language would be deleted from and underlined language would be added to present law. *CRH159* 03-07-2023 09:27:35 CRH159 State of Arkansas As Engrossed: H3/7/23 1 94th General Assembly A Bill 2 Regular Session, 2023 HOUSE BILL 1498 3 4 By: Representatives M. Brown, Magie 5 By: Senators Irvin, J. Bryant 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE LAW REGARDING ALCOHO LIC 9 BEVERAGES; TO AMEND THE LAW RELATED TO M ICROBREWERY-10 RESTAURANT PRIVATE C LUBS; TO PERMIT A MI CROBREWERY-11 RESTAURANT PRIVATE C LUB PERMITTEE TO STO RE AND SELL 12 SPIRITUOUS LIQUOR TO MEMBERS FOR ON-PREMISES 13 CONSUMPTION; TO PROVIDE DISCRETIO N RELATED TO 14 REVOCATION OF A MICR OBREWERY-RESTAURANT PRIVATE C LUB 15 PERMIT; TO INCLUDE M ICROBREWERY-RESTAURANT PRIVATE 16 CLUBS AS A TYPE OF E NTITY PERMITTED IN A N 17 ENTERTAINMENT DISTRI CT; AND FOR OTHER PU RPOSES. 18 19 20 Subtitle 21 TO AMEND THE LAW RELATED TO MICROBREWERY -22 RESTAURANT PRIVATE CLUBS. 23 24 25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26 27 SECTION 1. Arkansas Code § 3 -5-1901, concerning definitions related to 28 microbrewery-restaurant private clubs, is amended to add an additional 29 subdivision to read as follows: 30 (9) "On-premises consumption" means the sale of alcoholic 31 beverages by the drink or in broken or unsealed containers for consumption: 32 (A) On the premises where sold; or 33 (B) Within the boundaries of a designated entertainment 34 district established under § 14 -54-1412 that is contiguous with the premises. 35 36 As Engrossed: H3/7/23 HB1498 2 03-07-2023 09:27:35 CRH159 SECTION 2. Arkansas Code § 3 -5-1904(a)(2) and (3), concerning the 1 scope of a microbrewery -restaurant private club permit, are amended to read 2 as follows: 3 (2)(A) Store beer, malt beverage, and hard cider manufactured by 4 the microbrewery-restaurant private club and any other beer, malt beverage, 5 and hard cider, and spirituous liquor that the microbrewery -restaurant 6 private club permittee may purchase from retailers and small brewers 7 permitted by this state on the microbrewery -restaurant private club permitted 8 premises and on the premises of the one (1) separate brewing facility of a 9 microbrewery-restaurant private club authorized under subdivision (a) (8) of 10 this section. 11 (B) Two (2) or more microbrewery -restaurant private clubs 12 sharing common ownership or a brewery of any size sharing common ownership 13 with a microbrewery-restaurant private club shall be considered one (1) 14 entity for purposes of: 15 (i) Calculating barrel production; and 16 (ii) The transportation of beer, malt beverage, or 17 hard cider produced by one (1) entity among no more than three (3) 18 microbrewery-restaurant private clubs of the one (1) entity; 19 (3) Operate a restaurant th at: 20 (A) is Is the sales outlet for beer, malt beverage, or 21 hard cider manufactured by the microbrewery -restaurant private club ; and 22 (B) that sells Sells the beer, malt beverage, or hard 23 cider and any other beer, malt beverage, hard cider, or wine, or spirituous 24 liquor that the microbrewery -restaurant private club permittee may purchase : 25 (i) from From retailers permitted by this state for 26 on-premises consumption on the permitted premises ; or 27 (ii) purchased directly Directly from permitted 28 small brewers allowed to distribute directly to the microbrewery -restaurant 29 private club; 30 31 SECTION 3. Arkansas Code § 3 -5-1904(d), concerning advertising by a 32 microbrewery-restaurant private club, is amended to read as follows: 33 (d)(1) A Except as provided in subdivision (d)(2) of this section, a 34 microbrewery-restaurant private club, as described in this subchapter, shall 35 not use advertising media to promote the consumption and use of alcoholic 36 As Engrossed: H3/7/23 HB1498 3 03-07-2023 09:27:35 CRH159 beverages or to advertise or announce the price of servic e of alcoholic 1 beverages for on-premises consumption in a county where voters have not 2 authorized the sale of intoxicating liquor in a local option election under 3 Initiated Act No. 1 of 1942, as amended, §§ 3 -8-201 — 3-8-203, and 3-8-205 — 4 3-8-209. 5 (2) The prohibition on advertising or promoting the consumption 6 and use of alcoholic beverages under subdivision (d)(1) of this section does 7 not apply to a microbrewery -restaurant private club advertisement consisting 8 solely of the name of the microbrewery -restaurant private club. 9 10 SECTION 4. Arkansas Code § 3 -5-1905(b), concerning the penalty on a 11 microbrewery-restaurant private club permit holder related to prohibited 12 sales, is amended to read as follows: 13 (b) If a permittee sells, barters, loans, or gives away an alcoholic 14 beverage in violation of this subchapter or other alcoholic beverage control 15 laws of this state, the permit of the club shall may be revoked. 16 17 SECTION 5. Arkansas Code § 3 -5-1906(1), concerning the state 18 permitting fee paid by a microbrewery -restaurant private club permittee, is 19 amended to read as follows: 20 (1) Pay the applicable city or county permit fees and barrelage 21 or taxes and shall pay a state permitting fee to the Alcoholic Be verage 22 Control Division of seven hundred fifty dollars ($750) per fiscal year to 23 manufacture and sell to members its beer, malt beverages, and hard cider for 24 on-premises consumption on the premises and to sell to members other beer, 25 malt beverages, and hard cider, and spirituous liquor purchased from a 26 permitted wholesaler retailer for on-premises consumption on the premises; 27 28 SECTION 6. Arkansas Code § 14 -54-1412(a)(2), concerning the definition 29 of a "designated entertainment district", is amended to rea d as follows: 30 (2) Contains any number and any combination of restaurants, 31 taprooms, taverns, entertainment establishments, hospitality establishments, 32 music venues, theaters, bars, private clubs, microbrewery-restaurant private 33 clubs, art galleries, art studios, tourist destinations, distilleries, dance 34 clubs, cinemas, or concert halls. 35 36 As Engrossed: H3/7/23 HB1498 4 03-07-2023 09:27:35 CRH159 1 /s/M. Brown 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36