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Chapter 1 General Provisions

Effective Dates. Acts 1935, No. 108, Art. 10: approved Mar. 16, 1935. Emergency clause provided: “Whereas, the repeal of the Eighteenth Amendment to the Constitution of the United States has created an emergency which requires immediate control of intoxicating liquors; and

“Whereas, the present state revenue does not meet the needs for the maintenance and development of the State Government and its agencies and the state's credit is threatened with impairment, an emergency is declared to exist and this act shall become a law and be effective on its passage and approval or nonaction by the Governor.”

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 1 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 1 et seq.

3-1-101. Title.

This act shall be known, and may be cited in all legal proceedings, as the “Arkansas Alcoholic Control Act”.

History. Acts 1935, No. 108, Art. 1, § 8; Pope's Dig., § 14101; A.S.A. 1947, § 48-101.

Publisher's Notes. Acts 1935, No. 108, Art. 9, repealed all laws or parts of laws in conflict with the act, but provided that the act was not intended to repeal or conflict with the taxing provisions of Acts 1934 (2nd Ex. Sess.), Nos. 4 and 9, or Acts 1933 (1st Ex. Sess.), No. 7. Additionally, the section stated that if there was a conflict between the taxing provisions, the provisions of the acts mentioned would govern. Acts 1934 (2nd Ex. Sess.), No. 4 was superseded by § 3-5-401 et seq. [repealed]. Acts 1934 (2nd Ex. Sess.), No. 9 was superseded by § 3-6-101 et seq. Acts 1933 (1st Ex. Sess.), No. 7 is codified as ch. 5, subch. 2 of this title.

Meaning of “this act”. Acts 1935, No. 108, codified as §§ 3-1-101 — 3-1-103, 3-2-101, 3-2-205, 3-3-101 — 3-3-103, 3-3-212, 3-3-401, 3-3-404, 3-3-405, 3-4-101 — 3-4-103, 3-4-201, 3-4-202, 3-4-207 — 3-4-211, 3-4-213, 3-4-214, 3-4-215 [repealed], 3-4-217, 3-4-219, 3-4-220, 3-4-301 — 3-4-303, 3-4-501, 3-4-503, 3-4-601 — 3-4-605, 3-8-301, 3-8-302 [repealed], 3-8-303, 3-8-304 [repealed], 3-8-305 — 3-8-310, 3-8-311 [repealed], 3-8-313 — 3-8-317, 23-12-708.

Case Notes

Construction.

This act and Acts 1935, No. 109 (§ 3-7-101 et seq.) should be read together. Southwestern Distilled Prods., Inc. v. State ex rel. Butt, 203 Ark. 524, 160 S.W.2d 208 (1941).

Abatement of Nuisances.

The Arkansas Alcoholic Control Act did not repeal the provisions of Acts 1915, No. 109 regarding abatement of nuisances. Digiacomo v. State, 194 Ark. 24, 105 S.W.2d 78 (1937).

Prior Legislation Retained.

Acts 1935, No. 108 did not repeal in its entirety the statute regulating sale of malt and vinous beverages of more than 3.2% and not more than 5% alcoholic content (§ 3-5-201 et seq.) and prohibiting their sale to minors, nor the statute relating to abatement of liquor nuisances (§ 16-105-201 et seq.). Digiacomo v. State, 194 Ark. 24, 105 S.W.2d 78 (1937).

Cited: Rowell v. Austin, 276 Ark. 445, 637 S.W.2d 531 (1982).

3-1-102. Definitions.

As used in this title unless otherwise provided:
1. “Block” means the area on both sides of that portion of a street lying between intersecting streets and extending back, on both sides, halfway to the next parallel street;
2. “Dispensary” means any store which, under the provisions of this title unless otherwise provided and having paid all taxes required by the state, sells at retail, in unbroken packages, for consumption off the premises, any intoxicating alcoholic liquor as defined by this title unless otherwise provided;
3. “Excluded felony offense” means:
  1. 1. A felony offense as determined by the jurisdiction where the felony offense occurred.
    2. The Alcoholic Beverage Control Division shall determine whether an offense is a felony offense based upon a review of the relevant court records concerning the conviction for the offense; or
  2. A violation of a state or federal controlled-substance law that was classified as a felony in the jurisdiction where the person was convicted, but not including:
    1. An offense for which the sentence, including any term of probation, incarceration, or supervised release, was completed ten (10) or more years earlier; or
    2. An offense that has been sealed by a court or for which a pardon has been granted;
4. “Hard cider” means liquor brewed from the fermented juices of fruit and containing more than three percent (3%) and not more than twenty-one percent (21%) of alcohol by weight;
5. 1. “Malt” means liquor brewed from the fermented juices of grain and containing more than five percent (5%) of alcohol by weight.
  2. Beer containing not more than five percent (5%) of alcohol by weight and all other malt beverages containing not more than five percent (5%) of alcohol by weight are not defined as “malt liquors” and are excepted from each and every provision of this act;
6. “Manufacturer” means any person engaged in the business of distilling, brewing, making, blending, rectifying, or producing for sale in wholesale quantities alcoholic liquors of any kind, including whiskey, brandy, cordials, liquors, ales, beers, hard cider, or other liquids containing alcohol, except wines;
7. “Person” means any and all corporations, partnerships, associations, or individuals;
8. “Sealed” means to expunge, remove, sequester, and treat as confidential the record or records of a felony offense;
9. “Spirituous” means liquor distilled from the fermented juices of grain, fruits, or vegetables and containing more than twenty-one percent (21%) of alcohol by weight, or any other liquids containing more than twenty-one percent (21%) of alcohol by weight; and
10. “Vinous” means the fermented juices of fruits, except native wine, containing more than five percent (5%) and not more than twenty-one percent (21%) of alcohol by weight.
All other words used in this act shall be defined according to the statutes in such case made and provided, if any, and otherwise shall be defined according to the custom and usage of the people of Arkansas.

History. Acts 1935, No. 108, Art. 1, §§ 1-3, 5-7; Pope's Dig., §§ 14094-14096, 14098-14100; A.S.A. 1947, §§ 48-102 — 48-104, 48-106 — 48-108; Acts 2015, No. 1237, § 1; 2017, No. 739, § 1; 2019, No. 691, § 2.

Amendments. The 2015 amendment inserted the definition for “Hard cider”; and made stylistic changes.

The 2017 amendment substituted “title unless otherwise provided” for “act, unless the context otherwise requires” in the introductory language of (a); substituted “title unless otherwise provided” for “act” twice in (a)(2); inserted the definitions for “Excluded felony offense” and “Sealed”; and made stylistic changes.

The 2019 amendment inserted “hard cider” in (6).

Meaning of “this act”. See note to § 3-1-101.

Case Notes

Purpose.

The intent of the Arkansas Alcoholic Control Act is to classify beer having an alcoholic content of not more than 5% as a malt beverage as distinguished from malt liquor. McKeown v. State, 197 Ark. 454, 124 S.W.2d 19 (1939); Scurlock v. Central Distribs., Inc., 223 Ark. 954, 269 S.W.2d 790 (1954).

Alcoholic Content.

Where city voted dry, the sale of beer with an alcoholic content of not more than 5% was also prohibited, notwithstanding the definitions contained in this section. McKeown v. State, 197 Ark. 454, 124 S.W.2d 19 (1939).

Alcoholic content of a malt beverage controls in determining whether it should be taxed, regulated, and controlled as a “spirituous, vinous, and malt liquor” under this act and Acts 1935, No. 109, or as “beer and light wines” under § 3-5-201 et seq.Scurlock v. Central Distribs., Inc., 223 Ark. 954, 269 S.W.2d 790 (1954).

In absence of statute controlling labeling or branding of alcoholic beverages or rules or regulations of Alcoholic Beverage Control Board prohibiting it, nothing compelled distributor to cease distributing an alcoholic beverage containing less than 5% alcohol by weight, and taxed and controlled as beer, but labeled as “malt liquor.” Scurlock v. Central Distribs., Inc., 223 Ark. 954, 269 S.W.2d 790 (1954).

Intoxicating Liquor.

This section does not define the term “intoxicating liquors” as it appeared in prior law similar to § 3-3-209. Digiacomo v. State, 194 Ark. 24, 105 S.W.2d 78 (1937).

Subdivision (a)(3)(B) of this section does not state that beer of not more than 5% is not intoxicating. State v. Hutchinson, 194 Ark. 1057, 110 S.W.2d 7 (1937).

Cited: Morley v. Cassinelli, 216 Ark. 175, 224 S.W.2d 828 (1949); Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969); Wortham v. Little Rock Newspapers, Inc., 273 Ark. 179, 618 S.W.2d 156 (1981).

3-1-103. Exempted products.

1. The provisions of this act shall not in any manner be construed to apply to the manufacture, sale, and distribution of wines or vinous liquors manufactured, sold, and distributed by residents of Arkansas.
2. All wines or vinous liquors which shall be manufactured without the confines of this state shall be legally sold, imported, transported, possessed, and consumed only upon payment of the same privilege and excise taxes as provided for all other alcoholic liquors which are included and legalized under the provisions of this act, and traffic in such vinous liquors shall be subject to all rules provided herein.
Malt and vinous beverages containing more than three and two-tenths percent (3.2%) of alcohol by weight and not more than five percent (5%) of alcohol by weight shall be taxed and regulated as provided for malt and vinous beverages containing not more than three and two-tenths percent (3.2%) alcohol by weight under the provisions of chapter 5, subchapter 2 of this title.
1. After having been manufactured and prepared for the market, the articles enumerated in this subsection are not subject to this act:
  1. Denatured alcohol or denatured rum produced and used as provided by laws and regulations now or hereinafter in force;
  2. Medicinal preparations manufactured in accordance with formulae prescribed in the United States Pharmacopoeia — National Formulary, or by the American Institute of Homeopathy that are unfit for the use for beverage purposes;
  3. Patented, patent, and proprietary medicines that are unfit for use for beverage purposes;
  4. Toilet, medicinal, and antiseptic preparations and solutions that are unfit for use for beverage purposes;
  5. Flavoring extracts and syrups that are unfit for use as a beverage or for intoxicating beverage purposes;
  6. Vinegar and preserved sweet cider;
  7. Alcohol medicated according to such formulae as will render it unfit for beverage purposes and which is to be sold for legitimate external use;
  8. Alcohol for mechanical and scientific purposes if unfit for a beverage;
  9. Wines; and
  10. Confectionery containing less than five percent (5%) by volume of alcohol, if the alcohol is in a nonliquid form as a result of being mixed with other substances.
2. Any person who manufactures, purchases, or possesses any of the articles mentioned in this subsection or preparations fit for beverage purposes which are authorized to be manufactured, which may be used in the manufacture of other preparations compounded in accordance with formulae prescribed in the United States Pharmacopoeia — National Formulary, or by the American Institute of Homeopathy, which preparations when so manufactured are unfit for use for beverage purposes, or in the manufacture of patented, patent, and proprietary or other medicines, or for physicians' prescriptions, which are unfit for use for beverage purposes, may purchase and possess liquors for that purpose. Such person shall keep such records as are required by the Director of the Alcoholic Beverage Control Division.
3. No such manufacturer shall sell, use, or dispose of any liquor otherwise than as an ingredient of the articles authorized to be manufactured therefrom.
4. No more alcohol shall be used in the manufacture of any syrup or extract than the quantity necessary for the extraction or solution of the elements mentioned therein and for the preservation of the article.
5. The provisions of this act shall not apply to pure, ethyl, or denatured alcohol intended for use or used for scientific, chemical, mechanical, industrial, medicinal, or culinary purposes or for use in the manufacture of patented, patent, proprietary, medicinal, pharmaceutical, antiseptic, toilet, scientific, chemical, mechanical, and industrial preparations or products, unfit for beverage purposes. Any person taking advantage of this subsection shall keep any records as are required by the director.
6. Any person who shall knowingly sell any of the articles mentioned in this subsection for beverage purposes or any extract or syrup for intoxicating beverage purposes, or who shall sell any of the same under circumstances for which the seller might reasonably deduce the intention of the purchaser to use them for such purpose, shall be subject to the penalties provided in this act.

History. Acts 1935, No. 108, Art. 1, § 6; 1935, No. 108, Art. 3, § 21; 1935, No. 108, Art. 8, § 2; Pope's Dig., §§ 14099, 14126, 14171; A.S.A. 1947, §§ 48-107, 48-109, 48-110; Acts 2017, No. 1035, § 1; 2019, No. 315, § 31.

Amendments. The 2017 amendment substituted “are not subject to” for “shall not be subject to the provisions of” in (c)(1); and added (c)(1)(J).

The 2019 amendment substituted “rules” for “regulations” in (a)(2).

Meaning of “this act”. See note to § 3-1-101.

Cross References. Denatured alcohol, sale for beverage purposes prohibited, § 3-3-214.

Case Notes

Alcoholic Content.

Alcoholic content of a malt beverage controls in determining whether it should be taxed, regulated, and controlled as a “spirituous, vinous, and malt liquor” under this act and Acts 1935, No. 109, or as “beer and light wines” under § 3-5-201 et seq. as amended. Scurlock v. Central Distribs., Inc., 223 Ark. 954, 269 S.W.2d 790 (1954).

Cited: Morley v. Cassinelli, 216 Ark. 175, 224 S.W.2d 828 (1949); Brown v. Cheney, 233 Ark. 920, 350 S.W.2d 184 (1961); Wortham v. Little Rock Newspapers, Inc., 273 Ark. 179, 618 S.W.2d 156 (1981).

3-1-104. Industry member conduct — Donation of intoxicating liquor.

As used in this section:
1. “Industry member” means any one (1) or more of the following:
  1. A distiller, manufacturer, importer, producer, wholesaler, or distributor of intoxicating liquor that holds a valid and appropriate permit issued by the Alcoholic Beverage Control Division;
  2. An agent of a distiller, manufacturer, importer, producer, wholesaler, or distributor of intoxicating liquor, including without limitation an employee, shareholder, owner, partner, corporate officer, or director; or
  3. A business paid by a distiller, manufacturer, importer, producer, wholesaler, or distributor of intoxicating liquor to assist in targeting and promoting the sale of intoxicating liquor, including without limitation an advertising agency or marketing firm; and
2. “Retailer” means a person or business that:
  1. Is devoted wholly or partially to the sale of intoxicating liquor at retail; and
  2. Holds a valid retailer's permit issued by the division.
An industry member or retailer may donate intoxicating liquor for on-premises consumption at a function to a charitable or nonprofit organization that does not have a permit to dispense intoxicating liquors if the premises used by the nonprofit organization has a permit for on-premises consumption of alcoholic beverages issued by the Director of the Alcoholic Beverage Control Division, if a permit is required by applicable law.
An industry member may provide keg-tapping equipment and hook-up service to a charitable or nonprofit organization at a function.

History. Acts 2013, No. 527, § 1.

3-1-105. Posting of warning signs relating to drinking alcoholic beverages during pregnancy — Definition.

A person that has received a permit from the Alcoholic Beverage Control Board to sell or dispense alcoholic beverages shall post in a conspicuous place at the permitted premises a printed sign warning of the dangers of drinking alcoholic beverages during pregnancy that meets the requirements under § 3-9-102.
As used in this section, “alcoholic beverages” means all beverages containing more than one-half of one percent (0.5%) of alcohol by weight.

History. Acts 2019, No. 860, § 1.

Chapter 2 Administration and Enforcement

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 14 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 40 et seq.

Subchapter 1 — General Provisions

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

3-2-101. Interest of enforcement officers in alcoholic liquors prohibited.

Neither the Secretary of the Department of Finance and Administration nor any officer, employee, deputy, or assistant thereof shall have any direct or indirect interest in or on any premises where alcoholic liquors are manufactured or sold, nor shall he or she have any direct or indirect interest in any business wholly or partially devoted to the manufacture or sale of alcoholic liquors or own any stock in any corporation which has any direct or indirect interest in the premises where alcoholic liquors are manufactured or sold or in any business wholly or partially devoted to the manufacture or sale of alcoholic liquors.
Any person violating any provision of this section shall, in addition to the penalty provided in this act, forfeit his or her office or employment or be removed therefrom.

History. Acts 1935, No. 108, Art. 2, § 2; Pope's Dig., § 14103; A.S.A. 1947, § 48-202; Acts 2019, No. 910, § 3299.

Publisher's Notes. This section may apply to the Directors of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division as a result of the transfers of authority detailed in the notes to subchapter 2 of this chapter.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

3-2-102. [Repealed.]

Publisher's Notes. This section, concerning restriction of the governor's pardoning power, was repealed by Acts 2007, No. 653, § 1. The section was derived from Acts 1935, No. 132, § 6; Pope's Dig., § 14241; A.S.A. 1947, § 48-1106.

3-2-103. Information to be submitted by applicants.

Any person applying for any permit issued by the Alcoholic Beverage Control Division, except as provided in subsection (b) or (c) of this section, shall meet the following requirements:
1. No applicant shall have been found guilty of or pleaded guilty or nolo contendere to:
  1. Any felony by any court in the State of Arkansas; or
  2. Any similar offense by a court in another state or of any similar offense by a military or federal court;
2. 1. In order to determine the applicant's suitability for a permit, the applicant shall be fingerprinted, and the fingerprints shall be forwarded for a criminal background check through the Department of Arkansas State Police.
  2. After the completion of the criminal background check through the department, the fingerprints shall be forwarded by the department to the Federal Bureau of Investigation for a national criminal history record check; and
3. The applicant shall sign a release that allows the department to release:
  1. An Arkansas noncriminal justice background check to the Alcoholic Beverage Control Board; and
  2. A fingerprint card of the applicant to the Federal Bureau of Investigation to allow a federal fingerprint-based background check to be performed.
No fingerprint submission or criminal background check shall be required for any person applying for a nonresident seller's permit or for a wholesale support center permit as authorized by the Nonresident Beer Seller's Permit Act of 1995, § 3-5-1301 et seq.
No fingerprint submission shall be required for any person applying for any permit that has a stated duration of five (5) days or less.
This section is supplementary to any and all requirements that exist for various permits issued by the division, and all other individual permit requirements shall continue to apply to those respective permit applications.
The division may adopt rules to implement the provisions of this section.

History. Acts 2005, No. 1248, § 1.

3-2-104. Definition of “schoolhouse”.

For all businesses regulated under this title by the Alcoholic Beverage Control Board that are licensed or permitted after July 24, 2019, “schoolhouse” means:
1. A facility owned and operated by a public or private school or an open-enrollment charter school; and
2. A public or private daycare facility licensed by the State of Arkansas.
“Schoolhouse” does not include a home school.

History. Acts 2019, No. 983, § 1.

Subchapter 2 — Primary Regulatory Agencies

Publisher's Notes. The Department of Alcoholic Beverage Control, which was the primary regulatory agency in the area of alcoholic beverage control at the time when most of the provisions of this subchapter were enacted, has been replaced by two divisions within the Department of Finance and Administration.

Acts 1951, No. 159, § 1, created the Department of Alcoholic Beverage Control which was a statutory administrative department of the state government. The section further provided that the department would consist of an Alcoholic Beverage Control Board, a Director of Alcoholic Beverage Control, two assistant directors, and such other personnel as the General Assembly authorized.

Acts 1951, No. 159, § 2, created an Alcoholic Beverage Control Board. This Alcoholic Beverage Control Board was abolished by Acts 1955, No. 113, § 1, and a new Alcoholic Beverage Control Board created within the Department of Alcoholic Beverage Control by § 2 of that act. See § 3-2-201.

Acts 1971, No. 38, § 5, in part transferred the Department of Alcoholic Beverage Control to the Alcoholic Beverage Control Division of the Department of Finance and Administration by a type 1 transfer and transferred the Enforcement Division of the Alcoholic Beverage Control Commission, by a type 2 transfer, to the Department of Public Safety.

Acts 1971, No. 38, § 5, further transferred the Department of Revenue which was created by Acts 1925, No. 88, as amended by Acts 1927, No. 115, and Acts 1953, No. 293, and its functions, powers, and duties to the Department of Finance and Administration. The section further provided that all references to the Department of Revenues and the Commissioner of Revenues would thereafter be deemed to refer to the Department of Finance and Administration and the Director of the Department of Finance and Administration.

Acts 1981, No. 45, § 9, provided in part that the Enforcement Division was transferred from the Department of Public Safety to the Department of Finance and Administration and would be located in a separate division to be known as the Enforcement Division of Alcoholic Beverage Control, which division would function separately and apart from the Alcoholic Beverage Control Division. The section further provided that all the powers, functions, and duties added to the Enforcement Division of Alcoholic Beverage Control subsequent to the enactment of Acts 1971, No. 38, would be vested in the Enforcement Division of Alcoholic Beverage Control within the Department of Finance and Administration. The section stated that nothing in the 1981 act should be construed to reduce any right that an employee of the Enforcement Division of Alcoholic Beverage Control should have under any civil service or merit system.

As a consequence of these transfers, the alcoholic beverage control laws, except with respect to collection of taxes, are currently administered by two divisions within the Department of Finance and Administration: the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division. The Alcoholic Beverage Control Division is the primary administrative agency and supervises, regulates, and controls the manufacture, transportation, sale, and consumption of alcoholic beverages. The Alcoholic Beverage Control Enforcement Division is the primary enforcement agency and, among other things, conducts inspections, investigates applicants for licenses, investigates permit violations, and confiscates illicit liquor. Each division is headed by its own director.

Pursuant to § 3-2-205, the collection of taxes and permit and license fees is now the responsibility of the Director of the Department of Finance and Administration.

Where possible, the language of these sections has been revised to reflect the current regulatory scheme. Where the statutory language does not readily permit such revision, the original language has been retained and Publisher's Notes have been inserted to explain current practice.

Acts 1951, No. 159, § 24: July 1, 1951.

Acts 1953, No. 109, § 3: Feb. 20, 1953. Emergency clause provided: “The General Assembly finds that it is impossible under the present law for the Alcoholic Beverage Control Board or its director to adequately supervise, regulate, and control the sale of alcoholic beverages in the State of Arkansas; that such regulation and control is necessary for the preservation of the public peace, health, and safety; and that the regulation and control as provided by this act is necessary to public peace, health, and safety. Therefore, an emergency is declared to exist and this act shall take effect immediately upon its passage and approval.”

Acts 1955, No. 113, § 5: Mar. 1, 1955. Emergency clause provided: “Whereas, it is hereby found and determined by the General Assembly that much confusion and inconvenience now exists in the management of the Department of Alcoholic Beverage Control and would in the future exist unless this reorganization is made, and that the passage of this act would remedy this situation; therefore, this act being necessary for the preservation of the public health, peace, and safety, an emergency is hereby declared to exist and this act shall be in full force from the date of its approval.”

Acts 1971, No. 343, § 4: Mar. 22, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the administration of the alcoholic beverage control laws of this state affect the public morals, safety, and welfare, and that the immediate passage of this act is necessary in order to provide for additional members of the Alcoholic Beverage Control Board in order to provide for efficient operation of said board, and to protect the public peace, health, safety, and morals. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 941, § 3: Apr. 1, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that the expense allowances now authorized for ABC enforcement officers are inadequate and are below the level of allowances provided to other enforcement officers, such as troopers of the Arkansas State Police; and that the immediate passage of this act is necessary to correct these inequities and to assure an adequate expense level for ABC enforcement officers, to encourage the recruitment and retention of competent ABC enforcement officers. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 45, § 15: July 1, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the agencies, departments, and programs now performed through the Department of Public Safety could more efficiently and economically perform their respective duties and responsibilities through reorganized agencies and departments operating as separate entities; that substantial savings could be made by eliminating the central services of the Department of Public Safety; and that the immediate passage of this act is necessary to provide for advance planning for more efficient administration after the close of the current fiscal biennium of the various public safety programs of this state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1981.”

Acts 1983, No. 930, § 12: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the Seventy-Fourth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two year period; that the effectiveness of this act on July 1, 1983 is essential to the operation of the agency for which the appropriations in this act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this act beyond July 1, 1983 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after July 1, 1983.”

Acts 1995, No. 537, § 15: July 1, 1995.

Acts 1995, No. 537, § 16: July 1, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law does not adequately protect the people of the State of Arkansas from unscrupulous activities of nonresident manufacturers, suppliers, brewers and importers of beer; that the present law does not contain procedures for registration of nonresident manufacturers, suppliers, brewers and importers of beer, nor enforcement of current laws against such groups; and that the present law does not empower the Alcoholic Beverage Division to effectively monitor the activities of manufacturers, suppliers, brewers and importers of beer. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1995.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2001, No. 196, § 2: July 1, 2001. Emergency clause provided: “It is found and determined by the General Assembly that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2001 is essential to the operation of the agency in providing reimbursement allowance and expenses of ABC Enforcement officers, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2001 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 2001.”

3-2-201. Alcoholic Beverage Control Board.

There is created an Alcoholic Beverage Control Board.
The board shall consist of five (5) persons appointed by the Governor, subject to confirmation by the Senate, for a term of six (6) years.
The Chair of the Alcoholic Beverage Control Board shall be designated by the Governor and may be removed as chair at any time by the Governor.
All action by the board shall be by a majority vote of the full membership of the board.
The board shall take no official action in connection with any matter except at a regular or special meeting in the office of the board at Little Rock, Arkansas.
The board is charged with the management of the Alcoholic Beverage Control Division.
In addition to any other powers, duties, and authority, the board shall be vested with the additional authority to establish written policies for the enforcement, by the Alcoholic Beverage Control Enforcement Division, of the laws and rules affecting alcoholic beverage control.
The board shall have the power of review over the actions of the head of the enforcement division and its employees, including all disciplinary actions taken by the head of the division against any division employee and may, in any particular case, reverse such actions for good cause.
The members of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1953, No. 109, § 2; 1955, No. 113, §§ 2, 3; 1971, No. 343, § 1; 1981, No. 45, § 9; 1981, No. 790, § 8; A.S.A. 1947, §§ 48-1302.1 — 48-1302.3, 48-1314.2, 48-1317.1; Acts 1997, No. 250, § 10; 2019, No. 315, § 32.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (g).

Research References

ALR.

Interplay between Twenty-First Amendment and Commerce Clause concerning state regulation of intoxicating liquors. 116 A.L.R.5th 149.

Ark. L. Rev.

Watkins, Open Meetings Under the Arkansas Freedom of Information Act, 38 Ark. L. Rev. 268.

Case Notes

Majority Vote.

Board order issued without majority approval was not a valid, appealable order. Durkee v. Ark. ABC Bd., 11 Ark. App. 151, 667 S.W.2d 376 (1984).

3-2-202. Director of Alcoholic Beverage Control — Staff.

The Director of Alcoholic Beverage Control shall be an attorney duly authorized to practice law by the Supreme Court, who shall present all evidence tending to prove violations of the law or rules at hearings held by the Alcoholic Beverage Control Board.
The director shall employ such other personnel as he or she may deem necessary and as may be authorized by the General Assembly.
All personnel employed by the director shall be subject to the approval of the board.
Any person employed by the director may be removed by him or her at any time subject to the approval of the board.

History. Acts 1951, No. 159, § 4; A.S.A. 1947, § 48-1304; Acts 2019, No. 315, § 33.

Publisher's Notes. It is not clear whether this section now applies to the Director of the Alcoholic Beverage Control Division. In the years immediately prior to publication of this Code, the Director of the Alcoholic Beverage Control Division was, in actual practice, appointed by the Director of the Department of Finance and Administration with the approval of the Governor. Pursuant to § 3-2-203, the head of the Alcoholic Beverage Control Enforcement Division is also appointed by the Director of the Department of Finance and Administration.

Although regulatory authority over alcoholic beverages is now divided between the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division, each of which has its own director, subsections (c) and (d) of this section may still apply to officers and employees of the Alcoholic Beverage Control Board and the two regulatory divisions.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

3-2-203. Enforcement division — Director and staff.

The Director of the Alcoholic Beverage Control Enforcement Division shall be appointed by the Secretary of the Department of Finance and Administration and shall serve at the pleasure of the secretary.
All enforcement personnel of the division shall be named by the director.

History. Acts 1977, No. 941, § 1; 1981, No. 45, § 9; 1983, No. 930, § 7; 1985, No. 297, § 1; A.S.A. 1947, §§ 48-1317.1, 48-1322; Acts 2001, No. 196, § 1; 2019, No. 910, § 3300.

Amendments. The 2019 amendment substituted “Secretary” for “Director” twice in (a).

3-2-204. Seals — Authentication of records.

The Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board each may adopt, keep, and use a common seal. This seal shall be used for authentication of the records, process, and proceedings of the director and board, respectively. Judicial notice shall be taken of each of these seals in all of the courts of the state.
Any process, notice, or other paper which the director may be authorized by law to issue shall be deemed sufficient if signed by the director and authenticated by the seal of the director.
Any process, notice, or other paper which the board may be authorized by law to issue shall be deemed sufficient if signed by the Chair of the Alcoholic Beverage Control Board and authenticated by the seal of the board.
All acts, orders, proceedings, rules, entries, minutes, and other records of the director and all reports and documents filed with the director may be proved in any court of this state by copy thereof, certified by the director with the seal of the director attached.
All acts, orders, proceedings, rules, entries, minutes, and other records of the board and all reports and documents filed with the director may be proved in any court of this state by copy thereof, certified by the chair of the board with the seal of the board attached.

History. Acts 1951, No. 159, § 10; A.S.A. 1947, § 48-1309; Acts 2019, No. 315, § 34.

Amendments. The 2019 amendment deleted “regulations” following “rules” in (d) and (e).

Research References

Ark. L. Rev.

Documentary Evidence — Arkansas, 15 Ark. L. Rev. 79.

3-2-205. Powers and duties.

The Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division shall have full responsibility for all phases of alcoholic beverage control in Arkansas.
The Alcoholic Beverage Control Division shall have the following powers, functions, and duties:
1. To fix by rule the standards of manufacturing, rectifying, and blending in order to ensure the use of proper ingredients and methods in the manufacturing, rectifying, and blending of vinous, spirituous, or malt liquors to be sold in the state;
2. To adopt rules for the supervision and control of the manufacture and sale of vinous (except wines), spirituous, or malt liquors throughout the state not inconsistent with law;
3. To prescribe forms of applications for permits under this act and of all periodic reports deemed necessary to be made by any permittee;
4. To fix the hours during which vinous, spirituous, or malt liquors may be sold or dispensed at retail, as provided by this act;
5. 1. To keep records in proper form, to be prescribed by the Director of the Alcoholic Beverage Control Division and the Secretary of the Department of Finance and Administration, of all permits issued and all permits revoked under the provisions of this act and to keep records in such form so as to provide ready information as to the identity of all permit holders, including the names of stockholders who are not exempted under subdivision (b)(5)(B) of this section, and directors of corporations holding permits, and also the location of all permitted premises.
  2. The Alcoholic Beverage Control Division is not required to keep a record of the names of shareholders who are not the president or a director when the corporation:
    1. Is publicly traded on a nationally recognized stock exchange; or
    2. Holds at least ten (10) permits issued by the Alcoholic Beverage Control Division for the sale of alcoholic beverages; and
6. To adopt rules for the supervision and control of nonresident beer sellers' permits.
The Director of the Alcoholic Beverage Control Division shall have the following powers, functions, and duties:
1. To receive applications for and to issue, refuse, suspend, and revoke licenses to manufacturers, processors, distributors, wholesalers, retailers, and transporters of alcoholic beverages;
2. To call upon other administrative departments of the state, county, and city governments, sheriffs, city police departments, city marshals, and peace officers for such information and assistance as the Director of the Alcoholic Beverage Control Division may deem necessary in the performance of the duties imposed upon him or her by this subchapter;
3. To inspect or cause to be inspected any premises where alcoholic beverages are manufactured, distributed, or sold;
4. In the conduct of any hearing:
  1. To examine or cause to be examined under oath any person, and examine or cause to be examined books and records of any licensee;
  2. To hear testimony and to take proof material for his or her information and the discharge of his or her duties hereunder;
  3. To administer or cause to be administered oaths; and
  4. For any such purposes, to issue subpoenas to require the attendance of witnesses and the production of books. These subpoenas shall be effective in any part of this state. Any circuit court, either in term time or vacation, by order duly entered may require the attendance of witnesses or the production of relevant books subpoenaed by the Director of the Alcoholic Beverage Control Division, and the court may compel obedience to its order by proceedings for contempt;
5. Such other powers, functions, and duties as are or may be imposed or conferred upon him or her by law; and
6. Any other powers, functions, and duties pertaining to the control of alcoholic beverages which previously were granted to the secretary and which are not specifically delegated to the Alcoholic Beverage Control Board by the provisions of this subchapter.
The Director of the Alcoholic Beverage Control Enforcement Division shall have the following functions, powers, and duties:
1. To call upon other administrative departments of the state, county, and city governments, sheriffs, city police departments, city marshals, and peace officers for such information and assistance as he or she may deem necessary in the performance of the duties imposed upon the Director of the Alcoholic Beverage Control Division by this subchapter;
2. To inspect or cause to be inspected any premises where alcoholic beverages are manufactured, distributed, or sold;
3. Such other powers, functions, and duties as are or may be imposed or conferred upon him or her by law; and
4. Any other powers, functions, and duties pertaining to the control of alcoholic beverages which previously were granted to the secretary and which are not specifically delegated to the Director of the Alcoholic Beverage Control Division or the board by the provisions of this subchapter.
1. The power and duty to collect taxes imposed on alcoholic beverages and to collect permit and license fees levied for the privilege of manufacturing, processing, selling, and transporting alcoholic beverages is specifically excepted from the powers and duties granted or assigned to the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division. Provided, however, the permit or license holders' failure to pay taxes imposed on alcoholic beverages or any state or local gross receipts and compensating use taxes in a timely manner shall be grounds for the revocation or nonrenewal of their permits or licenses by the board.
2. The collection of all such taxes and permit or license fees shall be by the secretary and his or her agents and employees, as provided by law.
3. The secretary shall make a biennial report to the Governor and the General Assembly of his or her activities for the past year, which shall include statistics as to the amount of vinous (except wines), spirituous, or malt liquors manufactured in the State of Arkansas and the disposition thereof; the increase or decrease in their consumption over the preceding year; the amount of taxes and permit fees collected; and such other information as he or she deems advisable.
4. The secretary shall report by June 1 of each year to the Alcoholic Beverage Control Division and the board any and all permit and license holders who are more than ninety (90) days delinquent on any alcoholic beverage sales tax, excise tax, supplemental mixed drink tax, any other tax relating to the sale or dispensing of alcoholic beverages, or any state or local gross receipts or compensating use taxes.

History. Acts 1935, No. 108, Art. 2, § 3; Pope's Dig., § 14104; Acts 1951, No. 159, §§ 6, 11; A.S.A. 1947, §§ 48-203, 48-1305, 48-1310; Acts 1993, No. 779, § 1; 1995, No. 537, § 11; 2013, No. 325, § 1; 2019, No. 315, §§ 35, 36; 2019, No. 910, §§ 3301-3304.

Publisher's Notes. Acts 1935, No. 108, Art. 1, § 6, provides that the exclusion of wines from the provisions of Acts 1935, No. 108 is intended to exclude only wines or vinous liquors manufactured in the State of Arkansas.

Acts 1951, No. 159, § 6, provided, in part, that the Department of Alcoholic Beverage Control, upon completion of its staff, would assume the duties and powers formerly assigned to the Commissioner of Revenues concerning the regulation, supervision, and control of the manufacture, processing, sale, and transportation of liquor, beer, and wine (including native wine) and all other alcoholic beverages.

Amendments. The 2013 amendment redesignated former (b)(5) as (b)(5)(A); in (b)(5)(A), substituted “permit holders” for “permits” and inserted “who are not exempted under subdivision (b)(5)(B) of this section”; and added (b)(5)(B).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b)(2) and (b)(6).

The 2019 amendment by No. 910 substituted “Secretary” for “Director” throughout (b) through (e).

Cross References. Vinous, spirituous, and malt liquors defined, § 3-1-102.

Research References

Ark. L. Rev.

Administrative Law in Arkansas, 4 Ark. L. Rev. 107.

Case Notes

Hours of Sale.

A city ordinance which prohibited private clubs from serving or allowing consumption of mixed drinks between certain hours was not contrary to subdivision (b)(4) of this section, since the ordinance was not concerned with retail sales but with consumption on the premises of private clubs. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

Permits.

Denial of retail liquor permit was held not to be arbitrary, discriminatory, or an abuse of discretion and mandamus would not lie to compel issuance of permit. Hardin v. Cassinelli, 204 Ark. 1016, 166 S.W.2d 258 (1942).

Regulations.

Regulation adopted pursuant to subdivision (b)(2) of this section held controlling over invalid statute as to distance of retail liquor outlet from church property. Smith v. Ridgeview Baptist Church, Inc., 257 Ark. 139, 514 S.W.2d 717 (1974).

In a case where an application to operate a retail liquor store was conditionally granted, the Arkansas Alcoholic Beverage Control Board had the statutory authority to enact rules and regulations. Therefore, the Board had the authority to impose conditions on the approval of applications. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Cited: Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969); Rowell v. Austin, 276 Ark. 445, 637 S.W.2d 531 (1982).

3-2-206. Rules.

The Director of the Alcoholic Beverage Control Division shall adopt and promulgate such rules as shall be necessary to carry out the intent and purposes of this subchapter and any other alcohol control acts enforced in this state.
All rules of general application, including the amendment or repeal thereof, shall first be submitted by the director to the Alcoholic Beverage Control Board for its approval and upon approval shall be filed in the office of the Secretary of State.
All the valid rules adopted under the provisions of this subchapter shall be absolutely binding upon all licensees and enforceable by the director through the power of suspension or cancellation of licenses.
It is intended by this grant of power to adopt rules that the director shall be clothed with broad discretionary power to govern the traffic in alcoholic liquor and to enforce strictly all the provisions of the alcohol control laws of this state.
The Alcoholic Beverage Control Division is authorized to assess a rule book fee which shall not exceed ten dollars ($10.00) for each rule book.
A rule promulgated under this title that prohibits a person from possessing an alcoholic beverage outside of an establishment that holds a permit for on-premises consumption and from which the alcoholic beverage was purchased does not apply within a designated entertainment district as defined in § 14-54-1412.

History. Acts 1951, No. 159, § 12; A.S.A. 1947, § 48-1311; Acts 2013, No. 1318, § 1; 2019, No. 315, § 37; 2019, No. 812, § 1.

Amendments. The 2013 amendment added (e).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in the section heading and in (a) through (d); and substituted “rule” for “regulation” twice in (e).

The 2019 amendment by No. 812 added (f).

Case Notes

Authority of Board.

The Alcoholic Beverage Control Board is vested with the power to determine whether public convenience and advantage will be promoted by granting permits and the director is authorized to promulgate regulations and has broad discretionary power to enforce such provisions. Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

Grant or Denial of Permit.

Evidence, standing alone, was too speculative to support the Alcoholic Beverage Control Board's denial of an off-premises beer permit based upon board's regulation that permitted premises promote public convenience and advantage; however, there was substantial evidence to support the Alcoholic Beverage Control Board's denial of an application for an off-premises beer permit based upon board's regulation requiring that adequate police protection be available to permitted premises. Copeland v. ABC Bd., 4 Ark. App. 143, 628 S.W.2d 588 (1982).

Revocation of Permits.

The right to sell intoxicants is not an individual right similar to holding a professional license, but rather is a special privilege which carries the absolutely binding obligation to strictly observe all rules, regulations, and laws affecting the sale and consumption of alcoholic beverages. Holifield v. Ark. ABC Bd., 273 Ark. 305, 619 S.W.2d 621 (1981).

Suspension.

Evidence supported the Alcoholic Beverage Control Board's decision to suspend permit and the board had authority to do so under this section and §§ 3-2-212 and 3-2-214 regardless of whether misconduct was also a criminal violation. It was not the legislature's intent that the Alcoholic Beverage Control Board may revoke or suspend a beer permit for conduct that does not rise to the level of a criminal violation but may not revoke or suspend a permit for more serious conduct. Coburn v. Ark. State ABC Bd., 278 Ark. 514, 647 S.W.2d 445 (1983).

Cited: Barrett Hamilton, Inc. v. Heublein, Inc., 242 Ark. 900, 416 S.W.2d 309 (1967).

3-2-207. Qualifications and oath of personnel.

No person shall be appointed a member of the board or a director, agent, or employee of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Enforcement Division, or the Alcoholic Beverage Control Board who is not a citizen of the United States and who has not resided in the State of Arkansas successively for two (2) years immediately preceding the date of this appointment.
No person shall be so appointed who has been convicted of or pleaded guilty to a felony or any violation of any federal or state law concerning the manufacture or sale of alcoholic beverages or malt beverages prior or subsequent to the passage of this subchapter, nor shall a person be appointed who has paid a fine or penalty in settlement in any prosecution against him or her for any violation of such laws or who shall have forfeited his or her bond to appear in court to answer charges for any such violation.
No appointee may, directly or indirectly, individually or as a member of a partnership, or as a shareholder of a corporation, have any interests whatsoever in the manufacture, sale, or distribution of alcoholic beverages, nor receive any compensation or profit therefrom.
No appointee shall be an elected or appointed officer or employee of this state.
Each member of the board, director, and enforcement agent shall take and subscribe to an oath that he or she will support and enforce the provisions of this subchapter, the alcohol control laws of this state, the Arkansas Constitution, and the United States Constitution.

History. Acts 1951, No. 159, §§ 7, 8; A.S.A. 1947, §§ 48-1306, 48-1307; Acts 1993, No. 122, § 1.

3-2-208. Solicitation or acceptance of bribe prohibited.

No member or employee of the Alcoholic Beverage Control Board or director or any employee of the Alcoholic Beverage Control Division or the Alcoholic Beverage Control Enforcement Division shall solicit or accept, directly or indirectly, any gift, gratuity, emolument, or employment from any manufacturer, distributor, wholesaler, or retailer of alcoholic beverages or any person who is an applicant for any license under this subchapter, or from any officer, agent, or employee thereof.
No such person shall directly or indirectly solicit, request from, or recommend to any such person or to any officer, agent, or employee thereof the appointment of any person to any place or position.

History. Acts 1951, No. 159, § 9; A.S.A. 1947, § 48-1308.

3-2-209. Enforcement — Duties of state and local officers.

The Alcoholic Beverage Control Division and the Alcoholic Beverage Control Enforcement Division shall fully and faithfully enforce the provisions of this subchapter and any other alcohol control law of this state relating to the manufacture, storage, transportation, distribution, sale, and consumption of alcoholic beverages.
1. It shall be the responsibility of all law enforcement personnel of every village, town, city, county, and any other political subdivision of this state to fully and faithfully enforce the provisions of this subchapter and other alcohol control laws of this state relating to the manufacture, storage, transportation, distribution, sale, and consumption of alcoholic beverages.
2. Nothing in this subsection shall be construed to prevent or prohibit the exercise of concurrent jurisdiction by the Alcoholic Beverage Control Enforcement Division.

History. Acts 1951, No. 159, §§ 18, 19; A.S.A. 1947, §§ 48-1317, 48-1318.

Research References

Ark. L. Rev.

Official Misconduct under the Arkansas Criminal Code, 30 Ark. L. Rev. 160.

3-2-210. Authority of enforcement agent — Deputy Director of Education — Law enforcement officer.

The right of any enforcement agent, law enforcement officer, or the Deputy Director of Education of the Alcoholic Beverage Control Division, when duly designated by the Director of the Alcoholic Beverage Control Enforcement Division, to enter, inspect records, and seize contraband in or on any licensed premises shall be deemed to be a condition of the license or permit to sell alcoholic beverages granted by this state.
A duly designated enforcement agent or the deputy director shall have all powers, rights, and protection provided to all other law enforcement officers by the laws of this state, specifically including the power of arrest and service of warrants and the right to bear arms in the line of duty.

History. Acts 1951, No. 159, §§ 20, 21; A.S.A. 1947, §§ 48-1319, 48-1320; Acts 2013, No. 1101, § 1.

Amendments. The 2013 amendment substituted “agent – Deputy Director of Education – Law enforcement officer” for “agents” in the section heading; in (a), deleted “or” following “enforcement agent”, “search” following “to enter”, and inserted “or the Deputy Director of Education of the Alcoholic Beverage Control Enforcement Division”; and substituted “agent or the deputy director” for “agents” in (b).

3-2-211. Records and reports of licensees.

Each licensee shall keep complete and accurate records of all alcoholic beverages manufactured, distributed, transported, stored, purchased, or sold within or imported into this state.
The records shall be of such kind and form and shall be preserved for such period as the Director of the Alcoholic Beverage Control Division shall prescribe. The records shall be accessible for inspection during the regular hours of business by the authorized agents or employees of the Alcoholic Beverage Control Division or the Alcoholic Beverage Control Enforcement Division and the authorized law enforcement officers of the respective cities, towns, or counties in which the place of business is located.
The Director of the Alcoholic Beverage Control Division shall also have the authority to require the submission of reports by licensees and in such form as he or she may prescribe.

History. Acts 1951, No. 159, § 22; A.S.A. 1947, § 48-1321.

3-2-212. Denial, suspension, or revocation of licenses — Proceedings before division.

All proceedings for the suspension and revocation of licenses shall be before the Director of the Alcoholic Beverage Control Division.
The proceedings shall be in accordance with rules established by the director and not inconsistent with law.
No license shall be revoked except after a hearing by the director with reasonable notice to the licensee and an opportunity to appear and defend.
However, the director shall not be bound by the legal rules of evidence in conducting hearings and in making his or her decisions and may take into consideration any testimony, papers, or documents which he or she may deem relevant to the issue.
1. Whenever the director shall refuse an application for any license or shall suspend or revoke any license, he or she shall prepare an order so providing which shall be signed by the director or some person designated by him or her, and the seal of the director shall be affixed thereto.
2. The order shall be mailed by registered mail by the director to the applicant at the address as shown on the application or to the licensee at the address of the premises licensed, as the case may be.
3. The order shall be final and binding on all parties until the order has been appealed as provided for in § 3-2-213 and a decision has been rendered by the Alcoholic Beverage Control Board.

History. Acts 1951, No. 159, §§ 13, 14; A.S.A. 1947, §§ 48-1312, 48-1313; Acts 2019, No. 315, § 38.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b).

Cross References. Additional taxes, § 3-7-111.

Case Notes

Implied Repeal.

The provisions of this section vesting in the director the sole power to revoke liquor licenses repealed the provisions of Acts 1933 (1st Ex. Sess.), No. 7, § 17, which gave the convicting court the same power. State v. Lawrence, 246 Ark. 644, 439 S.W.2d 819 (1969).

Notice.

There is no implication in this section that a beer licensee is entitled to notice that his permit is subject to revocation as well as suspension, since this section provides that no license shall be revoked until a hearing upon reasonable notice to the licensee, and since it is common knowledge that beer and liquor permits are subject to revocation for violations. Holifield v. Ark. ABC Bd., 273 Ark. 305, 619 S.W.2d 621 (1981).

Suspension.

Evidence supported board's decision to suspend permit and board had authority to do so under this section and §§ 3-2-206 and 3-2-214 regardless of whether misconduct was also a criminal violation. It was not the legislature's intent that the Alcoholic Beverage Control Board may revoke or suspend a beer permit for conduct that does not rise to the level of a criminal violation but may not revoke or suspend a permit for more serious conduct. Coburn v. Ark. State ABC Bd., 278 Ark. 514, 647 S.W.2d 445 (1983).

3-2-213. Denial, suspension, or revocation of license — Appeal to board.

1. Any applicant or licensee aggrieved by an order of refusal, suspension, or revocation issued by the Director of the Alcoholic Beverage Control Division or any person or group of persons who have formally protested the issuance of any license before a decision has been rendered by the director and are aggrieved by the issuance of the license may appeal the order or decision to the Alcoholic Beverage Control Board by filing a notice of appeal.
2. The notice of appeal of a director's decision or order shall be in a written form which shall be mailed or delivered to the offices of the Alcoholic Beverage Control Division.
3. The notice of appeal must be mailed or delivered to the offices of the division within fifteen (15) days after the order to be appealed was received by the recipient, as shown by the certified mail return receipt card returned to the division. In the event that the person filing an appeal of the director's decision or order was not sent a certified letter of the same, then the fifteen-day appeal period begins on the date that the director's decision or order was issued.
4. Whenever any notice of appeal is filed with the division, the director shall immediately notify the board of that fact.
1. A hearing shall be held within at least sixty (60) days after the date of the filing of the notice of appeal unless the person appealing consents to a later hearing.
2. Not later than ten (10) days before the time fixed for the hearing, the director shall notify the board and the applicant, licensee, or protester of the time when and the place where the appeal shall be heard by the board.
3. At the time and place so fixed for the hearing, the board shall proceed to hear the appeal.
4. At any such hearing the applicant, licensee, or protester, and the director may be present in person or by agent or counsel and present evidence and argument.
5. The board shall adopt such rules as it shall deem necessary to govern the procedure in the hearing, and the board shall not be bound by the legal rules of evidence in hearing appeals and in making its determination.
1. Within five (5) days after the hearing is concluded, the board shall render its written opinion, decision, or order on the appeal.
2. A copy of the opinion, decision, or order shall be mailed by the division by certified mail to the applicant, licensee, or protester.
3. The order and decision shall be final and binding on the director and the applicant, licensee, or protester.
4. However, an appeal may be taken from any order suspending or revoking a license as provided for in this subchapter.

History. Acts 1951, No. 159, § 15; A.S.A. 1947, § 48-1314; Acts 1995, No. 652, §§ 1-5; 2005, No. 1193, § 1; 2019, No. 315, § 39.

Amendments. The 2005 amendment substituted “sixty (60)” for “thirty (30)” in (b)(1).

The 2019 amendment deleted “and regulations” following “such rules” in (b)(5).

Case Notes

Evidence.

The testimony of citizens was properly received by the Alcoholic Beverage Control Board, pursuant to this section and § 25-15-213(4), in hearings on an application for retail liquor and beer off-premises permits and constituted substantial evidence supporting denial of the permits. Stringfellow v. ABC Bd., 3 Ark. App. 124, 623 S.W.2d 213 (1981).

Exhaustion of Administrative Remedies.

Licensee desiring to move permit to location outside city was not required to exhaust remedies under this section before challenging statute which prohibited such location. Bell v. Adams, 243 Ark. 895, 422 S.W.2d 691 (1968).

Suspension of Permits.

Evidence supported the Alcoholic Beverage Control Board's decision to suspend permit and board had authority to do so under this section and §§ 3-2-206 and 3-2-212 regardless of whether misconduct was also a criminal violation. It was not the legislature's intent that the Alcoholic Beverage Control Board may revoke or suspend a beer permit for conduct that does not rise to the level of a criminal violation but may not revoke or suspend a permit for more serious conduct. Coburn v. Ark. State ABC Bd., 278 Ark. 514, 647 S.W.2d 445 (1983).

Time Limitations.

Appeal de novo was properly dismissed where the corporate permittee to transfer permit from one location to another was not made party within the statutory time limit. Smith v. Estes, 259 Ark. 337, 533 S.W.2d 190 (1976).

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979); Estes v. Walters, 269 Ark. 891, 601 S.W.2d 252 (Ct. App. 1980); Durkee v. Ark. ABC Bd., 11 Ark. App. 151, 667 S.W.2d 376 (1984).

3-2-214. Denial, suspension, or revocation of license — Review by board on own motion.

The Alcoholic Beverage Control Board is authorized on its own motion to review any action of the Director of the Alcoholic Beverage Control Division in granting or failing to grant, renewing or failing to renew, revoking or suspending, or failing to revoke or suspend upon complaint, any permit and, upon review, to set aside any action of the director in any of these respects.
Any action by the director in any of these respects shall not become effective until the day following the next meeting of the board following the action by the director, and then only if the board fails to make a motion to exercise its right of review.

History. Acts 1953, No. 109, § 1; A.S.A. 1947, § 48-1314.1.

Case Notes

Authority.

Pursuant to this section, the Arkansas Alcoholic Beverage Control Board had the authority to review an application for a retail liquor store to determine why the director had failed to issue a permit fifteen months after an application had been conditionally granted. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Penalties.

Alcoholic Beverage Control Board could revoke a beer permit after the Director of the Alcoholic Beverage Control Division had suspended it where evidence presented before the board was more damaging than that presented before the director; even if the permit owner had not appealed, the board could, on its own motion, review the director's decision and determine its own appropriate penalty. Holifield v. Ark. ABC Bd., 273 Ark. 305, 619 S.W.2d 621 (1981).

3-2-215. Conduct of hearings before board.

For the purpose of hearing or conducting any appeal authorized to be heard by it, the Alcoholic Beverage Control Board shall have power:
1. To examine or cause to be examined, under oath, any licensee, the Director of the Alcoholic Beverage Control Division, the Director of the Alcoholic Beverage Enforcement Division, or any other person and to examine or cause to be examined the books and records of any such licensee;
2. To hear testimony and to take proof material for its information in hearing an appeal;
3. To administer or cause to be administered oaths; and
4. To issue subpoenas requiring the attendance of witnesses and the production of records for any such purposes.
The subpoenas shall be effective in any part of this state. Any circuit court may by order duly entered require the attendance of witnesses and the production of relevant records subpoenaed by the board, and the court may compel obedience to its orders by proceedings for contempt.
An applicant involved in a hearing before the Director of the Alcoholic Beverage Control Division or the board shall be entitled on request to subpoena for the compulsory attendance of witnesses desired by him or her.
1. All witnesses shall be entitled to mileage and fees as are prescribed by law for witnesses in the circuit courts of the state.
2. The mileage and fees of witnesses subpoenaed at the request of an applicant shall be paid by him or her.

History. Acts 1951, No. 159, § 16; A.S.A. 1947, § 48-1315.

3-2-216. Appeal to courts.

An appeal of the decision of the Alcoholic Beverage Control Board may be filed in conformance with the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1951, No. 159, § 17; A.S.A. 1947, § 48-1316; Acts 1995, No. 652, § 6.

Case Notes

Exhaustion of Administrative Remedies.

Scope of Review.

The trial court may reverse or modify the Alcoholic Beverage Control Board's decision if it is not supported by substantial evidence or is arbitrary, capricious, or characterized by abuse of discretion, and the Supreme Court's review is similarly limited. Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

Sufficiency of Evidence.

Evidence was sufficient to sustain the Alcoholic Beverage Control Board's approval of transfer of brand from one wholesaler to another and did not establish that board was not an impartial and disinterested tribunal. Barrett Hamilton, Inc. v. Heublein, Inc., 242 Ark. 900, 416 S.W.2d 309 (1967).

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-2-217. Transcript fees.

There is fixed a cost of one dollar and fifty cents ($1.50) per page for each original page of transcript of record of proceedings had before the Director of the Alcoholic Beverage Control Division, pertaining to an application for the manufacture, selling, or dispensing of alcoholic beverages, or from a hearing of a violation against a permit which is appealed to the Alcoholic Beverage Control Board, and for each page of original transcript where an appeal is taken from any decision of the board to a circuit court.
The fee as provided for herein shall be paid to the director by the person taking the appeal upon completion of the transcript, and the moneys shall be deposited into the general revenues of the State of Arkansas.
All copies of the original transcript shall cost forty cents (40¢) per page, and the sums shall be collected and deposited as provided in subsection (b) of this section.

History. Acts 1981, No. 790, § 1; A.S.A. 1947, § 48-1315.1.

Subchapter 3 — Other Enforcing Agencies

Cross References. Arrest by railroad conductor for drunkenness, § 23-12-708.

Effective Dates. Acts 1935, No. 132, § 11: Mar. 19, 1935. Emergency clause provided: “It is declared to be a fact that the enforcement of all liquor laws has broken down in this state; that circuit judges are handicapped in enforcing the law as it now stands and that it is necessary that the circuit judges be armed with additional powers for enforcing said laws and held responsible for the results. It is further declared to be a fact that the use of the highways by persons incompetent to drive motor vechicles constitutes a great hazard.

“Now, therefore, an emergency is declared to exist and this act is found to be necessary for the preservation of the public peace, health, and safety, and it shall go into effect immediately after its passage and approval.”

Acts 2003, No. 1185, § 2: Jan. 1, 2005, by its own terms.

3-2-301. Circuit judges — Appointment of temporary officers and special prosecutors.

The circuit judges of this state are declared to be primarily responsible for the enforcement of laws against the unlawful manufacture and sale of intoxicating liquors.
1. Circuit judges are given authority to appoint an officer of the court in lieu of the sheriff to act temporarily and in cases specially designated in the enforcing of any of the laws when the circuit judge becomes convinced that the sheriff is for any cause neglecting his or her duties under the law imposed upon him or her.
2. The compensation and expenses of such temporary officer shall be fixed by the judge making the appointment and shall be ordered paid by the judge out of an appropriation hereafter made. A certified copy of the judgment of the court fixing the compensation and expenses shall be sufficient authority for the Auditor of State to draw a voucher in payment of the compensation and expenses and of the Treasurer of State to pay a warrant when presented. The voucher shall be preaudited as other claims against the state.
1. Whenever the circuit judge becomes convinced that any prosecuting attorney is not performing his or her full duty with respect to the enforcement of the laws against the unlawful manufacture or sale of intoxicating liquors, he or she shall have authority to appoint a special prosecutor who shall be an attorney learned in the law and with at least ten (10) years' experience in the actual practice of law.
2. The special prosecutor shall proceed to investigate and prosecute such cases as may be called to his or her attention by the circuit judge.
3. The compensation and expenses of the special prosecutor shall be fixed by the circuit court and paid out of the fund hereafter appropriated. The order of the circuit judge fixing the compensation and expenses of the special prosecutor shall be sufficient authority upon which the Auditor of State may issue a voucher in payment thereof and of the Treasurer of State to pay a warrant when presented. The voucher shall be preaudited as other claims against the state.
The temporary appointees in place of the sheriffs and the special prosecutors shall have all of the powers and authorities designated by law in the persons whom they are appointed to succeed.

History. Acts 1935, No. 132, §§ 2-4; Pope's Dig., §§ 14237-14239; A.S.A. 1947, §§ 48-1102 — 48-1104.

3-2-302. Circuit judges — Impeachment.

If the Director of the Alcoholic Beverage Control Division shall report to the Governor that any circuit judge is not doing his or her duty with respect to the enforcement of the laws against the unlawful manufacture or sale of intoxicating liquors, and when the report is supported by competent evidence, the Governor may call the General Assembly into extra session to impeach the judge.
It is declared to be an impeachable offense for any circuit judge to fail to exercise all of the powers of his or her office or the powers granted to him or her under § 3-2-301 to enforce the laws.

History. Acts 1935, No. 132, § 5; Pope's Dig., § 14240; A.S.A. 1947, § 48-1105.

Research References

Ark. L. Rev.

Comments: Removal and Discipline of Judges in Arkansas, Porter, 32 Ark. L. Rev. 545.

U. Ark. Little Rock L.J.

Survey of Arkansas Law, Public Law, 1 U. Ark. Little Rock L.J. 230.

3-2-303. Authority of the Division of Arkansas State Police.

In addition to the duties otherwise prescribed by law upon the Division of Arkansas State Police, it shall be the duty of the division to assist in enforcing all of the laws of the State of Arkansas against the unlawful manufacture or sale of intoxicating liquors.
1. The Director of the Division of Arkansas State Police, the Deputy Director of the Division of Arkansas State Police, captains, lieutenants, rangers, and other employees of the director shall perform such duties as may be prescribed by the director with respect to the enforcement of the laws, and they shall have authority to take affidavits and to swear the persons signing the affidavits with respect to the violation of any law.
2. The false swearing or making of the affidavits shall be deemed and punished as perjury.
1. The director, deputy director, captains, lieutenants, and rangers shall have all of the authority now vested in sheriffs and police officers to search for and seize intoxicating liquors unlawfully held in this state.
2. They shall also have the same authority to make arrests for the violation of such laws and to serve any and all kinds of criminal process issued by any of the courts in this state in connection with the enforcement of such laws.

History. Acts 1935, No. 132, § 1; Pope's Dig., § 14236; A.S.A. 1947, § 48-1101; Acts 2019, No. 910, § 5734.

Amendments. The 2019 amendment substituted “Division of Arkansas State Police” for “Department of Arkansas State Police” in (a) and twice in (b)(1); and substituted “division” for “department” in (a).

3-2-304. Search warrants.

It is made and declared to be the duty of a circuit, district, and city court on information given, on its own knowledge, or when it has reasonable grounds to believe that alcohol, spirituous, ardent, vinous, malt, or fermented liquors, or any compound or preparation thereof commonly called tonics, bitters, or medicated liquors of any kind are kept in any prohibited district to be sold contrary to law or have been shipped into any prohibited district to be sold contrary to law, that it issue a warrant directed to some peace officer, directing in the warrant a search for intoxicating liquors and specifying in the warrant the place to be searched.
However, this section shall not apply to the giving away or selling of native wines when the sale is authorized by law.

History. Acts 1899, No. 13, § 1, p. 11; C. & M. Dig., § 6184; A.S.A. 1947, § 48-1107; Acts 2003, No. 1185, §§ 1, 2.

Cross References. Seizure and forfeiture of spirituous, vinous, or malt liquors or beverages, §§ 3-3-311 — 3-3-315.

Case Notes

Note. Some of the following cases were decided prior to the supersession of former provisions of this section concerning the seizure and destruction of beverages by §§ 3-3-311 — 3-3-314.

Appeals. Illegal Warrants. Jurisdiction. Jury Trials. Nature of Proceeding.

Appeals.

A proceeding under this section is a civil action from which an appeal may be taken by the state from a final judgment of a justice of the peace. White v. State, 80 Ark. 598, 98 S.W. 377 (1906).

Illegal Warrants.

The fact that liquor was seized under an illegal warrant will not subject the officers to civil liability. O'Neal v. Parker, 83 Ark. 133, 103 S.W. 165 (1907).

Jurisdiction.

Chancery courts do not have jurisdiction to issue an order forbidding a common carrier to deliver a consignment of liquor. Saint Louis & S.F.R.R. v. State, 93 Ark. 389, 125 S.W. 643 (1910); United States Express Co. v. State ex rel. McDonald, 99 Ark. 633, 139 S.W. 637 (1911).

Jury Trials.

A proceeding under this section is a summary proceeding for which a jury trial may not be demanded. Kirkland v. State, 72 Ark. 171, 78 S.W. 770 (1904); Cole v. State, 144 Ark. 533, 222 S.W. 1060 (1920).

Nature of Proceeding.

A proceeding under this section is directed against property and not against an individual and is to be considered and tried as civil actions are tried. Kirkland v. State, 72 Ark. 171, 78 S.W. 770 (1904).

A proceeding under this section is in rem, directed against the liquor regardless of by whom it is illegally used. Osborne v. State, 77 Ark. 439, 92 S.W. 406 (1906).

Cited: Ferguson v. Josey, 70 Ark. 94, 66 S.W. 345 (1902).

Subchapter 4 — Distribution

Effective Dates. Acts 2007, No. 668, § 6: Mar. 29, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that lawsuits are currently pending in both Federal Court for the Eastern District of Arkansas and Pulaski County Circuit Court regarding the constitutionality of the laws being amended by this subchapter; that the lawsuits are being defended by the office of the Arkansas Attorney General; and that immediate implementation of this act is necessary because any delay may result in substantial costs to the state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1105, § 4: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that a supplier of an alcoholic beverage is not required to file an application with the Alcoholic Beverage Control Division each calendar year; that suppliers should be required to register with the division each calendar year; and that the division's yearly registration period begins on April 1. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, §§ 28 et seq., 40 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, §§ 425 et seq.

3-2-401. Purpose.

This subchapter is promulgated pursuant to the authority granted to the State of Arkansas pursuant to the provisions of the Twenty-First Amendment to the United States Constitution specifically for the following purposes:

To prevent unfair business practices, discrimination, and undue control of such wholesalers by distillers, manufacturers, importers, and producers;
To maintain stability and healthy competition in the alcoholic beverage industry;
To promote and maintain a sound and stable system of distribution of alcoholic beverages; and
To promote the public health, safety, and welfare.

History. Acts 1991, No. 260, § 1.

3-2-402. Scope of subchapter.

This subchapter does not repeal or supersede any of the provisions of § 3-5-1101 et seq. and to the extent of any conflict, the provisions of § 3-5-1101 et seq. shall prevail.

History. Acts 1991, No. 260, § 11.

3-2-403. Spirituous and vinous beverages — Registration of brands and labels — Designation of licensed wholesaler — Definition.

As used in this section, “brand label” means the label carrying the distinctive design of a brand name of a spirituous liquor or vinous liquor.
1. Every manufacturer, importer, or producer of spirituous and vinous beverages, as defined by § 3-1-102, doing business in the State of Arkansas shall submit to the Alcoholic Beverage Control Division one (1) Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval for each brand of spirituous and vinous beverages and the brand label extension of each brand of spirituous and vinous beverages to be shipped for the first time by the shipper into or within the state and shall designate in the application for registration one (1) licensed liquor wholesaler in the state, who shall be the exclusive distributor of such brand or label within the state. Such designated wholesaler shall be initially approved by the Director of the Alcoholic Beverage Control Division and shall not be changed or initially disapproved except for good cause, and the director shall determine good cause after a hearing pursuant to the provisions set out in this subchapter. Any brands or labels previously registered in this state and which have subsequently been withdrawn from distribution in this state shall be treated in the same manner as the initial registration of brands or labels and are subject to the provisions of this section.
2. A brand label and a brand label extension shall be registered by the supplier before the first shipment of each brand label and brand label extension into or within the state on or after July 1, 2013.
A copy of the Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval for each brand label and brand label extension shall be submitted with the registration of each brand label and brand label extension.
The registration of a brand label and a brand label extension shall:
1. Be in writing or electronically submitted as prescribed by the Director of the Alcoholic Beverage Control Division;
2. Be verified if it is submitted in writing; and
3. Set forth information as the Director of the Alcoholic Beverage Control Division requires.
Each Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval submitted for registration shall be accompanied by a registration fee of fifteen dollars ($15.00) payable by check, cash, money order, or electronic payment.
The registration shall be renewed annually.
The division shall promulgate rules to administer and implement this section.

History. Acts 1991, No. 260, § 2; 2013, No. 1105, § 1.

Amendments. The 2013 amendment inserted (a); in (b)(1), designated subdivision, substituted “Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval” for “label” and inserted “and the brand label extension of each brand of spirituous and vinous beverages”; and inserted (b)(2) and (c) through (g).

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

3-2-404. Request to change wholesalers — Contents of application.

Any distiller, manufacturer, importer, or producer desiring to change wholesalers with respect to any brand shall file with the Director of the Alcoholic Beverage Control Division a wholesaler change request containing the following information as applicable:

The name of each brand involved;
The case volume in Arkansas for each brand for the current year or portion thereof and the two (2) previous calendar years;
The name of the wholesaler currently distributing such brand;
The name of the proposed new wholesaler; and
1. A detailed explanation of the specific business reasons for the request to change wholesalers.
2. Business reasons which may be considered by the director in determining good cause for authorizing a change of wholesalers will include:
  1. A wholesaler's bankruptcy or serious financial instability, including its consistent failure to pay its debts as they fall due or its failure to meet or maintain any objective standards of capitalization expressly agreed to between the wholesaler and the distiller, manufacturer, importer, or producer, provided such standards are determined by the director to be commercially reasonable;
  2. A wholesaler's repeated violations of any provision of federal or state law, rule, or regulation, whether or not such violations resulted in official action;
  3. A wholesaler's failure to maintain reasonable sales volume of the brand, taking into consideration such factors as the extent of the distiller's, manufacturer's, importer's, or producer's advertising and promotion of the particular brand, prevailing economic conditions affecting sales generally, or the extent of the wholesaler's efforts, or lack thereof, to promote a particular brand; and
  4. Any other factors relevant to such proposed change and which aid the director in determining good cause.

History. Acts 1991, No. 260, § 3; 2019, No. 315, § 40.

Amendments. The 2019 amendment substituted “federal or state law, rule, or regulation” for “federal or state law or regulations” in (5)(B)(ii).

3-2-405. Request to change wholesalers — Notice — Objections — Hearing — Disposition of proceedings.

1. At the same time that the original wholesaler change request is filed with the Director of the Alcoholic Beverage Control Division, a copy thereof shall be mailed by the distiller, manufacturer, importer, or producer to each wholesaler who may be affected by the proposed changes. Immediately upon receipt of any wholesaler change request, the director shall notify the currently designated wholesaler of the request by certified mail.
2. Within fifteen (15) days after receipt of such notice by the affected wholesaler, any such wholesaler or party required to be given notice by this subchapter may interpose written objections thereto. Such written objections shall be filed in the office of the Alcoholic Beverage Control Division, and copies thereof shall be served by the objecting party upon the party proposing the change and upon all wholesalers who may be affected by the proposed change.
Upon the receipt of an objection from any party, or upon his or her own motion, the director shall hold a hearing, after providing due notice to all parties concerned, for the purpose of determining the truth of any matters of fact alleged by any party and determining whether the proposed changes are based upon sufficient cause and are otherwise consistent with the policies set out in § 3-2-401. If it is determined from the evidence educed at said hearing that the brand or label involved is the same as, or similar to, or is such a modification of, substitution of, upgrade of, or extension of a brand or label which has already been registered by the distiller, manufacturer, importer, or producer, so as to render it unjust or inequitable, without cause being shown, to designate the brand or label to a wholesaler different from the wholesaler designated for the brand or label being so modified, substituted, upgraded, or extended, then such request shall be denied; provided, however, that nothing herein shall be construed or prevent the distiller, manufacturer, importer, or producer from treating the matter as a desire to change wholesalers and from proceeding under the provisions of § 3-2-404, either before or after such determination.
No proposed change will be approved by the director which is based upon the failure or refusal of a wholesaler to comply with any demand or request of a distiller, manufacturer, importer, or producer if such demand or request would result in a violation of any provision of federal or state law or regulation. During such fifteen-day objection period or until the proposed changes have been finally approved by the director, the party proposing the change shall continue to supply the designated wholesaler, upon commercially reasonable terms, such reasonable quantities of the brand involved as the wholesaler may require. If, at any time, the director finds a distiller, manufacturer, importer, or producer is not shipping the wholesaler a reasonable amount of merchandise, he or she may withdraw approval of all brands registered by such parties within the state.

History. Acts 1991, No. 260, § 4.

3-2-406. Request to change wholesalers — Hearing — Time — Findings — Appeal.

Any hearing held by the Director of the Alcoholic Beverage Control Division pursuant to the provisions of § 3-2-405 shall be held within thirty (30) days after the receipt of any notice of objection to a wholesaler change request.
The findings of the director made after such hearing shall be presented to the Alcoholic Beverage Control Board at its next regularly scheduled meeting.
Any aggrieved party may appeal the decision of the director to the full board to be heard de novo and any such appeal hearing will be scheduled and held pursuant to hearing procedures established for the Alcoholic Beverage Control Division by state law and division rules.

History. Acts 1991, No. 260, § 5; 2019, No. 315, § 41.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (c).

3-2-407. Request to change wholesalers — Automatic approval.

If no objection is filed to the wholesaler change request as provided in § 3-2-406, the proposed changes shall stand automatically approved by the Director of the Alcoholic Beverage Control Division at the expiration of such fifteen-day period, conditioned upon the manufacturer's or importer's repurchasing all inventory of the subject brand from the previously designated wholesaler at such wholesaler's laid-in cost.

History. Acts 1991, No. 260, § 6.

3-2-408. Acquisition of right to sell, ship, or distribute label.

Any distiller, manufacturer, importer, or producer who obtains or acquires in any manner the right to sell, ship, or distribute any label shall for the purpose of this subchapter stand in place of and be subject to all rights, privileges, and duties and obligations of its predecessor or its predecessors from whom such brands or labels were obtained or acquired.

History. Acts 1991, No. 260, § 7.

3-2-409. Beer, malt products, or light wine.

Every manufacturer or importer of beer or other malt products or light wine doing business in the State of Arkansas shall submit to the Alcoholic Beverage Control Division one (1) label for each brand of beer or malt product or light wine to be shipped for the first time into or within the state and shall designate within the application for registration any number of wholesalers in the state, each of whom shall be the exclusive distributor of such brand within the geographical territory assigned by the manufacturer or importer to such wholesaler.
Transfers of brands of malt products or light wine or changes in geographical distribution areas assigned shall not be subject to the provisions set out above for spirituous or vinous products so long as any such manufacturer or importer has complied with the filing provisions of applicable law.

History. Acts 1991, No. 260, § 8.

3-2-410. Terms and conditions of agreements with wholesaler binding on successor.

A successor to a distiller, manufacturer, importer, producer, winery, or brewer of beer, malt liquor, light wine, wine, or liquor that continues in business as a distiller, manufacturer, importer, producer, winery, or brewery or that continues to operate under the names of any product acquired by said distiller, manufacturer, importer, producer, winery, or brewer shall be bound by all terms and conditions of any agreements with any Arkansas wholesaler, whether oral or written, of the distiller, manufacturer, importer, producer, winery, or brewery which are in effect on the date of succession.

History. Acts 1991, No. 260, § 10.

3-2-411. Subchapter incorporated into division approvals — Applicability — Waiver.

The terms, conditions, and requirements of this subchapter are hereby expressly made a part of the terms of and as conditions to the approval granted by the Alcoholic Beverage Control Division to distillers, manufacturers, importers, or producers to do business in the state and by the application for, the acceptance of, or the conduct of business under any such approval, a distiller, manufacturer, importer, or producer consents and agrees to comply with the terms, conditions, and requirements of this subchapter.
This subchapter does not apply to manufacturers or wholesalers of small farm winery wines. For the purpose of this section, “small farm winery” has the same meaning as defined by § 3-5-1601.
No right, duty, or other provision set out in this subchapter may be waived by any agreement or contract between any wholesaler and supplier regardless of whether any such waiver agreement was made prior to or after July 15, 1991.

History. Acts 1991, No. 260, §§ 12, 13; 2007, No. 668, § 2.

Amendments. The 2007 amendment, in (b), substituted “small farm winery wines” for Arkansas native wine” and added the last sentence.

3-2-412. Dual distributorship prohibited — Definition.

1. The creation of a dual distributorship is prohibited.
2. An unlawful dual distributorship is created whenever any manufacturer designates as its distributor more than one (1) Arkansas liquor wholesaler in the state or wholesale beer permit holder to distribute the same brand of alcoholic beverage in the same geographical territory, whether a city, a county, counties, or the state.
In addition to any remedies to any aggrieved party authorized by law, the Director of the Alcoholic Beverage Control Division may withdraw approval of any and all brands registered by any manufacturer found to be in violation of this subchapter, such findings to be made after a hearing pursuant to hearing procedures established for the Alcoholic Beverage Control Division by state law and administrative rules.
1. For the purposes of this subchapter, a “brand” means the same product or substantially the same product as evidenced by the product label that must be filed with the division.
2. Identical or substantially identical labels will be considered and treated as the same brand.

History. Acts 1991, No. 260, § 9; 2019, No. 315, § 42.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

3-2-413. Labels for confectionaries containing nonliquid alcohol.

A confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) by volume of alcohol shall bear a label stating: “This product contains up to 5% alcohol by volume”.

History. Acts 2017, No. 1035, § 2.

Chapter 3 Prohibited Practices

Research References

ALR.

Choice of law as to liability of seller for injuries caused by intoxicated person. 2 A.L.R.4th 952.

Statutes, ordinances, or regulations prohibiting or regulating advertising of intoxicating liquors. 20 A.L.R.4th 600.

Prohibition of sale of intoxicating liquors on specific religious holidays. 27 A.L.R.4th 1155.

Statute or ordinance making it offense to have possession of open or unsealed alcoholic beverage in public place. 39 A.L.R.4th 668.

Intoxicating liquors: products liability. 42 A.L.R.4th 253.

Tavernkeeper's liability to patron for third person's assault. 43 A.L.R.4th 281.

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 192 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 468 et seq.

Subchapter 1 — General Provisions

3-3-101. Accessories guilty as principals.

Every person knowingly aiding or abetting any person, firm, or corporation in the violation of any section of this act shall be deemed a principal and punished as such.

History. Acts 1935, No. 108, Art. 6, § 4; Pope's Dig., § 14137; A.S.A. 1947, § 48-939.

3-3-102. Sentences and fines.

When a jail sentence is inflicted as part of the punishment, all persons convicted under this act shall serve out the sentence at hard labor.
All fines and costs assessed against any person under this act and not paid or replevied shall be served out by confinement at hard labor at the rate of one (1) day for each one dollar ($1.00) of the fine and costs.

History. Acts 1935, No. 108, Art. 6, § 6; Pope's Dig., § 14139; A.S.A. 1947, § 48-941.

Meaning of “this act”. See note to § 3-3-101.

3-3-103. Multiple offenses — Bonds for good behavior.

Upon a second or any subsequent conviction or bond forfeiture for any violation of any alcoholic beverage control law of this state pertaining to the control, regulation, and handling of spirituous, vinous, malt liquors or beverages, or any amendment to any existing law or any new law on the same subject hereafter enacted, it shall be the duty of the court convicting the person for a second time, or forfeiting a bond for a second time, or forfeiting a bond or convicting a person after a previous conviction or bond forfeiture for such an offense, to require the defendant to execute bond in the sum of two hundred dollars ($200), after a hearing thereon, to be of good behavior for a period of twelve (12) months insofar as the laws of the State of Arkansas on spirituous, vinous, or malt liquors or beverages affect the defendant.
Should any person violate the provisions of the bond, the bond, after a hearing thereon, shall be forfeited. The person shall be, for all subsequent violations of the liquor laws or bond forfeitures, placed under a five hundred dollar ($500) bond of the same provisions, to ensure good behavior from the violation of the liquor laws.
If the bonds provided in this section are not given by the defendant, the defendant shall be committed to the county jail for a period not less than thirty (30) days nor more than six (6) months, to be fixed by the court.
The order of the court requiring the execution of a bond as provided in this section shall be for the preservation of the laws and shall not be considered a part of the punishment inflicted, but as a security against future violations of the provisions of all alcoholic beverage control laws.

History. Acts 1935, No. 108, Art. 6, § 8; Pope's Dig., § 14141; Acts 1949, No. 143, §§ 1-4; A.S.A. 1947, §§ 48-942 — 48-942.3.

Publisher's Notes. Section 3-8-314 also requires bonds for multiple offenses.

Cross References. Vinous, spirituous, and malt liquors defined, § 3-1-102.

Subchapter 2 — Particular Practices Prohibited

Cross References. Illegal sales, abatement of nuisance, § 16-105-201 et seq.

Permit violations, § 3-4-401 et seq.

Effective Dates. Acts 1911, No. 143, §§ 4, 5: effective on passage.

Acts 1935, No. 108, Art. 10: approved Mar. 16, 1935. Emergency clause provided: “Whereas, the repeal of the Eighteenth Amendment to the Constitution of the United States has created an emergency which requires immediate control of intoxicating liquors; and

Acts 1941, No. 357, § 6: Mar. 26, 1941. Emergency clause provided: “Whereas, it has been ascertained that large quantities of intoxicating liquors are being illegally manufactured and sold in the State of Arkansas and large quantities of intoxicating liquors upon which the state tax has not been paid are also being sold in the State of Arkansas and the state is losing great sums of money in the form of revenue by reason thereof, an emergency is hereby declared and this act shall be in full force and effect immediately from and after its passage and approval.”

Acts 1943, No. 219, §§ 2, 3: approved Mar. 15, 1943. Emergency clause provided: “The illicit traffic in intoxicating liquor should be discouraged, and as the heavy penalties prescribed by existing law deter conviction by reason of their severity, and more moderate punishment would secure increased conviction, an emergency is declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall take effect and be in force from and after its passage and approval.”

Acts 1943, No. 257, § 4: Mar. 18, 1943. Emergency clause provided: “The Legislature finds as a matter of fact that there are a great many violations of the law with respect to the sale of intoxicating liquor to minors and on Sundays, which, on account of present provisions of the law making such acts felonies, cannot in many cases be enforced; that the practice of selling intoxicating liquor to minors and on Sundays should be stopped and can best be prevented by making such acts misdemeanors.

“Therefore, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage and approval.”

Acts 1947, No. 205, § 3: became law over Governor's veto, Mar. 11, 1947.

Acts 1947, No. 206, § 2: became law over Governor's veto, Mar. 11, 1947.

Acts 1993, No. 875, § 6: Apr. 5, 1993. Emergency clause provided: “It is hereby found and determined by the Seventy-Ninth General Assembly of the State of Arkansas that the penalties under Arkansas law for knowingly and unknowingly furnishing alcoholic beverages to minors are too lenient; that supplying alcoholic beverages to underage persons is strictly contrary to the public policy and is detrimental to the young people of the State; and that the penalties for this conduct should be increased to deter and to punish these violations of Arkansas law and policy. Therefore, in order to properly punish these violations, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 1017, § 4: Apr. 3, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that current laws concerning the sale of alcoholic beverages at certain large attendance facilities enact a financial hardship on those facilities; and that a revision to Arkansas law is necessary to ease those hardships and provide a more equitable system of selling alcoholic beverages on certain days and times. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 294, § 30: Mar. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that on-premises consumption outlets in the State of Arkansas are not able to compete on an equal and similar basis with outlets located in states surrounding the State of Arkansas; that the State of Arkansas is in need of additional revenues; that only minor adjustments to the violation fine schedule have been made since its passage in 1981; and that this act is immediately necessary to raise additional revenues and to better address violations committed by Alcoholic Beverage Control Division permit holders. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 763, § 6: Apr. 1, 2009. Emergency clause provided: “It is hereby found and determined that Act 294 of 2009 became effective, by emergency clause, on March 3, 2009, and that it has been found that there are some technical corrections that need to be placed into immediate operation. It is further determined that these technical corrections are necessary to give full force and effect to the provisions of Act 294 of 2009 and that if this technical corrections bill is not passed with an emergency clause then unnecessary confusion concerning the provisions of Act 294 of 2009 may arise. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, No. 956, § 34: Apr. 6, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that laws concerning juveniles need to be amended and updated; that the fair and efficient administration of juvenile law is highly important to society at large; and that this act is immediately necessary because the judiciary needs to begin addressing these changes in laws involving juveniles. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Research References

Ark. L. Rev.

Torts — Liability of Vendor to Third Parties for Injury Caused by Sale of Intoxicants, 9 Ark. L. Rev. 179.

U. Ark. Little Rock L.J.

Barrier, Render Unto Caesar: An Essay on Private Morals and Public Law, 4 U. Ark. Little Rock L.J. 511.

3-3-201. Unknowingly furnishing or selling to minor.

Any person who unknowingly sells, gives away, or otherwise disposes of intoxicating liquor or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) by volume of alcohol to a minor is guilty of a violation and shall be punished by a fine of not less than two hundred dollars ($200) nor more than five hundred dollars ($500) for the first offense.
For the second and subsequent offenses, he or she shall be guilty of a Class A misdemeanor.

History. Acts 1943, No. 257, § 1; A.S.A. 1947, § 48-902.1; Acts 1993, No. 875, § 1; 2005, No. 1994, § 332; 2017, No. 1035, § 3.

Publisher's Notes. The Arkansas Supreme Court, in State v. Jarvis, 244 Ark. 753, 427 S.W.2d 531 (1968), held that this section, which appears to be superseded by § 3-3-202 with respect to the offense of knowingly furnishing alcoholic beverages to minors, is still valid with respect to the offense of unknowingly furnishing alcoholic beverages to minors.

Amendments. The 2005 amendment deleted former (a) which read: “The sale, giving away, or other disposition of intoxicating liquor to a minor is declared to be a misdemeanor”; redesignated former (b) as present (a) and (b); in present (a), inserted “unknowingly” and “guilty of a violation and”; and, in present (b), inserted “or she” and substituted “guilty of a Class A misdemeanor” for “punished by a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) or by imprisonment in the county jail for not less than one (1) year, or both a fine and imprisonment in the discretion of the jury or court” from the end.

The 2017 amendment, in (a), substituted “unknowingly sells, gives away, or otherwise disposes of intoxicating liquor or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) by volume of alcohol to a minor is” for “shall unknowingly sell, give away, or otherwise dispose of intoxicating liquor to a minor shall be”, and inserted “shall be” preceding “punished”.

Cross References. Contributing to delinquency of minor, § 5-27-220.

Case Notes

Effect on Other Laws.

There is no conflict between this section and § 3-3-202, as this section makes it a misdemeanor to unknowingly sell, give, or otherwise dispose of intoxicating liquor to a minor and § 3-3-202 makes it a misdemeanor to knowingly do so with a second or subsequent offenses constituting a felony. State v. Jarvis, 244 Ark. 753, 427 S.W.2d 531 (1968).

Knowledge Not an Element.

This section governs the sale of intoxicating liquor to minors where knowledge of minority is not an element. State v. Jarvis, 244 Ark. 753, 427 S.W.2d 531 (1968).

Negligence.

Jury should not have been told it could consider the fact that the fraternity had furnished intoxicating liquor to a minor in determining whether the fraternity was negligent. Alpha Zeta Chapter of Pi Kappa Alpha Fraternity v. Sullivan, 293 Ark. 576, 740 S.W.2d 127 (1987).

3-3-202. Knowingly furnishing or selling to minor.

1. 1. It shall be unlawful for any person knowingly to give, procure, or otherwise furnish any alcoholic beverage or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) alcohol by volume to any person under twenty-one (21) years of age.
  2. However, this subsection does not apply to the serving of an alcoholic beverage to the person's family or to the use of wine or beer in any religious ceremony or rite in any established church or religion.
2. 1. Upon a first conviction, any person violating this subsection shall be guilty of a Class A misdemeanor.
  2. Upon a second conviction within three (3) years, a person violating this section shall be guilty of a Class D felony.
1. It shall be unlawful for any person knowingly to sell or otherwise furnish for money or other valuable consideration any alcoholic beverage to any person under twenty-one (21) years of age.
2. 1. Upon a first conviction, any person violating this subsection shall be guilty of a Class D felony and shall be punished as provided by law.
  2. Upon a second conviction within five (5) years, a person violating this section shall be deemed guilty of a Class C felony and may be imprisoned or fined, or both as provided by law.
1. A warning notice that includes the provisions of subsections (a) and (b) of this section shall be posted in public view in each place of business where alcoholic beverages are sold.
2. The warning notice shall be posted in a manner prescribed by the Alcoholic Beverage Control Board.

History. Acts 1967, No. 277, §§ 1, 2; A.S.A. 1947, § 48-903; Acts 1993, No. 875, § 2; 1995, No. 446, § 1; 2005, No. 1767, § 1; 2005, No. 1994, § 405; 2009, No. 352, § 1; 2009, No. 948, § 1; 2017, No. 1035, § 4.

Amendments. The 2005 amendment substituted “Class C misdemeanor” for “misdemeanor and shall be fined not more than five hundred dollars ($500) or imprisoned for not more than ten (10) days, or both fined and imprisoned” in (a)(2)(A); and substituted “Class D felony” for “felony and may be imprisoned in the Department of Corrections for not less than one (1) year nor more than five (5) years and shall be fined not more than five hundred dollars ($500), or both” in (a)(2)(B).

The 2009 amendment by No. 352 substituted “this subsection shall not apply to the serving of an alcoholic beverage to the person's” for “this section shall not apply to the serving of such to one's” in (a)(1) and changed “Class C misdemeanor” to “Class A misdemeanor” in (a)(2)(A).

The 2009 amendment by No. 948 inserted “or beer” in (a)(1).

The 2017 amendment redesignated former (a)(1) as (a)(1)(A) and (a)(1)(B); inserted “or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) alcohol by volume” in (a)(1)(A); and substituted “does not” for “shall not” in (a)(1)(B).

Cross References. Sales of beer or wine to minors by beer permittees prohibited, §§ 3-5-221, 3-5-307.

RESEARCH REFERENCES

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2005 Arkansas General Assembly, Alcoholic Beverages, 28 U. Ark. Little Rock L. Rev. 319.

Case Notes

Civil Liability.

This section and §§ 3-4-803 and 3-3-218 create a duty for licensees to exercise a high standard of care for the protection of minors, and a breach of this duty can lead to a suit for negligence. Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997).

Effect on Other Laws.

There is no conflict between this section and § 3-3-201, as that section makes it a misdemeanor to unknowingly sell, give, or otherwise dispose of intoxicating liquor to a minor and this section makes it a misdemeanor to knowingly do so with a second or subsequent offenses constituting a felony. State v. Jarvis, 244 Ark. 753, 427 S.W.2d 531 (1968).

Cited: Anable v. Ford, 653 F. Supp. 22 (W.D. Ark. 1985); Branscumb v. Freeman, 360 Ark. 171, 200 S.W.3d 411 (2004).

3-3-203. Purchase or possession by minor.

1. It is unlawful for any person under twenty-one (21) years of age to purchase or have in his or her possession any intoxicating liquor, wine, or beer.
2. For the purposes of this section, intoxicating liquor, wine, or beer in the body of a person under twenty-one (21) years of age is deemed to be in his or her possession.
It is unlawful for an adult to purchase on behalf of a person under twenty-one (21) years of age any intoxicating liquor, wine, beer, or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) alcohol by volume.
A person eighteen (18) years of age or older violating this section is guilty of a violation and upon conviction shall be subject to a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
In addition to the penalties provided in this section, the trial judge or magistrate may impose the following penalty or penalties or any combination thereof:
1. Require a person eighteen (18) years of age or older but under twenty-one (21) years of age to write themes or essays on intoxicating liquors, wine, or beer; and
2. Place a person eighteen (18) years of age or older but under twenty-one (21) years of age under probationary conditions as determined by the court in its reasonable discretion designed as a reasonable and suitable preventive and educational safeguard to prevent future violations of this section by the person.
1. In addition to the fine authorized by subsection (c) of this section, at the time of arrest of a person eighteen (18) years of age or older for violation of the provisions of subsection (a) of this section, the arrested person shall immediately surrender his or her license, permit, or other evidence of driving privilege to the arresting law enforcement officer as provided in § 5-65-402.
2. 1. The Office of Driver Services or its designated official shall suspend or revoke the driving privilege of the arrested person or shall suspend any nonresident driving privilege of the arrested person, as provided in § 5-65-402.
  2. The period of suspension or revocation shall be based on the offense that caused the surrender of the arrested person's license, permit, or other evidence of driving privilege as described in subdivision (e)(1) of this section and the number of any previous offenses as follows:
    1. Suspension for sixty (60) days for a first offense under subsection (a) of this section;
    2. Suspension for one hundred twenty (120) days for a second offense under subsection (a) of this section; and
    3. Suspension for one (1) year for a third or subsequent offense under subsection (a) of this section.
3. In order to determine the number of previous offenses to consider when suspending or revoking the arrested person's driving privileges, the office shall consider as a previous offense any conviction under subsection (a) of this section which occurred either prior to or after August 12, 2005.
A person under eighteen (18) years of age who violates this section is subject to the Arkansas Juvenile Code of 1989, § 9-27-301 et seq.
1. A person under twenty-one (21) years of age is immune from criminal prosecution under subsection (a) of this section if:
  1. The person:
    1. Requested emergency medical assistance in response to a medical emergency of another person;
    2. Remained on the scene until the emergency medical assistance arrived; and
    3. Cooperated with emergency medical assistance providers and law enforcement personnel during the medical emergency;
  2. The person is the recipient of emergency medical assistance requested under subdivision (g)(1)(A) of this section; or
  3. The person acted in concert with the person initiating contact for emergency medical assistance and met the requirements of subdivisions (g)(1)(A)(ii) and (iii) of this section.
2. This subsection does not apply if the request for emergency medical assistance does not occur until after law enforcement personnel have arrived at the scene of the medical emergency.
3. The immunity from criminal prosecution provided under this section shall not in any way affect a law enforcement officer's or court's probable cause determination in regard to another criminal offense.
It is not an offense under this section if the minor was acting at the direction of an authorized agent of the Alcoholic Beverage Control Enforcement Division to enforce or ensure compliance with laws relating to the prohibition of the possession of an alcoholic beverage by a minor or the sale of an alcoholic beverage to a minor.

History. Acts 1967, No. 44, § 1; 1979, No. 61, § 1; A.S.A. 1947, § 48-903.1; Acts 1997, No. 1210, § 1; 2005, No. 1535, § 1; 2005, No. 1994, § 28; 2009, No. 956, § 1; 2011, No. 1152, § 1; 2013, No. 1123, § 1; 2015, No. 381, § 1; 2017, No. 925, § 1; 2017, No. 1035, § 5.

Amendments. The 2005 amendment by No. 1535 added present (e).

The 2005 amendment by No. 1994 substituted “violation” for “misdemeanor” in (c); and added “and” at the end of (d)(1).

The 2009 amendment substituted “A person eighteen (18) years of age or older” for “Any person” in (c); substituted “eighteen (18) years of age or older but under twenty-one” for “under twenty-one” in (d)(1) and (d)(2); inserted “ of a person eighteen (18) years of age or older” in (e)(1); and added (f).

The 2011 amendment substituted “It is unlawful” for “It shall be unlawful” in (a)(1); and substituted “is deemed” for “shall not be deemed” in (a)(2).

The 2013 amendment substituted “person under twenty-one (21) years of age” for “minor” in (a)(2).

The 2015 amendment substituted “under” for “less than” in (f); and added (g).

The 2017 amendment by No. 925 added (h).

The 2017 amendment by No. 1035, in (b), substituted “is unlawful” for “shall also be unlawful”; and added “or a confectionary containing between five-tenths of one percent (0.5%) and five percent (5%) alcohol by volume”.

Research References

Ark. L. Rev.

Jervonne D. Newsome, Legislative Note: Minors, You Are What You Drink!: Arkansas's New Spin on Minors in Possession of Alcohol, 65 Ark. L. Rev. 977 (2012).

Case Notes

Constitutionality.

This section is rational and, consequently, not unconstitutional. Manatt v. State, 311 Ark. 17, 842 S.W.2d 845 (1992), cert. denied, Manatt v. Arkansas, 507 U.S. 1005, 113 S. Ct. 1647, 123 L. Ed. 2d 268 (1993).

Construction.

The exemption in subdivision (a)(2) of this section that intoxicating liquor, wine, or beer in the body of a minor shall not be deemed to be in his possession is not contained within the controlled substances statutes. Embry v. State, 50 Ark. App. 245, 905 S.W.2d 73 (1995).

Applicability.

An adult cannot be convicted of the offense of possession of intoxicating liquor by a minor. Manatt v. State, 311 Ark. 17, 842 S.W.2d 845 (1992), cert. denied, Manatt v. Arkansas, 507 U.S. 1005, 113 S. Ct. 1647, 123 L. Ed. 2d 268 (1993).

Juvenile Code.

A violation under this section does not constitute a violation under the Juvenile Code. Manatt v. State, 311 Ark. 17, 842 S.W.2d 845 (1992), cert. denied, Manatt v. Arkansas, 507 U.S. 1005, 113 S. Ct. 1647, 123 L. Ed. 2d 268 (1993).

Possession.

Where defendant was not in actual possession of intoxicating beverages, evidence that there were beer cans inside the vehicle, that beer was found in the immediate proximity of the defendant in the vehicle, and that there was the smell of beer on the defendant's person was not sufficient evidence of constructive possession. Kastl v. State, 303 Ark. 358, 796 S.W.2d 848 (1990).

Cited: Rendezvous Club v. State, 247 Ark. 670, 447 S.W.2d 842 (1969); Anable v. Ford, 653 F. Supp. 22 (W.D. Ark. 1985).

3-3-204. Handling by minor.

Except as provided in subsection (b) or subsection (c) of this section, it is unlawful for a wholesaler, retailer, or transporter of alcoholic beverages to allow an employee or any other person under twenty-one (21) years of age to have anything to do with the selling, transporting, or handling of an alcoholic beverage.
With the written consent of a parent or guardian, a person eighteen (18) years of age and older may:
1. Sell or otherwise handle beer and wine at retail grocery establishments; or
2. Be employed by a licensed liquor wholesaler or licensed beer wholesaler or by a licensed native winery to handle alcoholic beverages at the place of business of the licensed wholesaler or winery.
A person nineteen (19) years of age and older may sell and handle alcoholic beverages at a restaurant, private club, hotel, or motel that is licensed for on-premises consumption of alcoholic beverages under this chapter.
1. A person who violates this section is guilty of a violation and upon conviction shall be fined not less than ten dollars ($10.00) nor more than one hundred dollars ($100).
2. The violation shall be grounds for suspension, cancellation, or revocation by the Director of the Alcoholic Beverage Control Division of any permit issued to the person by the director.

History. Acts 1969, No. 129, §§ 1, 2; 1983, No. 527, § 1; A.S.A. 1947, §§ 48-903.2, 48-903.3; Acts 1987, No. 515, § 1; 1999, No. 1169, § 1; 2001, No. 1553, § 3; 2003, No. 1807, § 1; 2005, No. 1994, § 28; 2009, No. 294, § 1; 2013, No. 527, § 2.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (d)(1).

The 2009 amendment substituted “§ 3-9-301” for “§ 3-9-501” in (c).

The 2013 amendment rewrote the section.

Cross References. Revocation and suspension procedure generally, §§ 3-2-212 — 3-2-217.

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Alcoholic Beverages, 26 U. Ark. Little Rock L. Rev. 349.

3-3-205. Sale or possession without license.

1. Any person who shall sell, barter, exchange, or give any intoxicating alcoholic liquor without having a valid license as provided by this act, in addition to losing his or her license, shall be guilty of a Class A misdemeanor.
2. Any person found guilty of a third or subsequent violation of this subsection within a period of three (3) years shall be guilty of a Class D felony.
Any person who has in his or her possession intoxicating alcoholic liquor not obtained under and in conformity with the provisions of this act shall be deemed guilty of a Class A misdemeanor.
This penalty shall apply whether the intoxicating liquor is for the use of the person illegally possessing it or for the use and benefit of another.
Each act in violation of this section shall constitute a separate misdemeanor.
Nothing contained in this section shall relieve any licensee from forfeiture of his or her license.

History. Acts 1943, No. 218, §§ 2-4; 1947, No. 205, §§ 1, 2; A.S.A. 1947, §§ 48-902, 48-912, 48-913; Acts 1991, No. 498, § 1; 1991, No. 577, § 1; 2005, No. 1994, § 436.

Amendments. The 2005 amendment redesignated former (a) as present (a)(1); inserted “or her” in present (a)(1), (b) and (e); deleted “and upon conviction shall be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1000), or imprisoned for not exceeding one (1) year, or both so fined and imprisoned in the discretion of the court or jury” from the end of present (a)(1); added (a)(2); deleted “and shall, upon conviction, be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1000) or imprisoned for not exceeding one (1) year, or both so fined and imprisoned in the discretion of the court or jury” from the end of (b); and deleted former (f).

Meaning of “this act”. Acts 1943, No. 218, §§ 1, 3, and 4 repealed Acts 1941, No. 356, §§ 1, 3, and 4 and enacted provisions identical to Acts 1935, No. 108, Art. 6, §§ 1, 12, and 13 which had been repealed by Acts 1941, No. 356. Further, Acts 1943, No. 218, § 2 repealed Acts 1941, No. 356, § 2 and enacted provisions substantially the same as the first paragraph of Acts 1935, No. 108, Art. 6, § 2, except that the penalty provisions were reduced from a range of five hundred dollars to one thousand dollars to a range of fifty dollars to five hundred dollars.

Therefore, as used in this section “this act” probably means Acts 1935, No. 108, which is codified as §§ 3-1-101 — 3-1-103, 3-2-101, 3-2-205, 3-3-101 — 3-3-103, 3-3-212, 3-3-401, 3-3-404, 3-3-405, 3-4-101 — 3-4-103, 3-4-201, 3-4-202, 3-4-207 — 3-4-211, 3-4-213, 3-4-214, 3-4-215 [repealed], 3-4-217, 3-4-219, 3-4-220, 3-4-301 — 3-4-303, 3-4-501, 3-4-503, 3-4-601 — 3-4-605, 3-8-301, 3-8-302 [repealed], 3-8-303, 3-8-304 [repealed], 3-8-305 — 3-8-310, 3-8-311 [repealed], 3-8-313 — 3-8-317, 23-12-708.

Cross References. Misdemeanors, § 5-1-107.

Sale, etc., in dry territory, § 3-8-312.

Sale of beer without permit, § 3-5-210.

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

Case Notes

Appeal.

On appeal from conviction for possessing illegal liquor, evidence must be viewed in the light most favorable to the state. Marshall v. State, 205 Ark. 349, 168 S.W.2d 809 (1943).

Habeas Corpus.

Writ of habeas corpus was not the proper remedy where prisoner was convicted under this section for selling liquor in a dry territory covered by § 3-8-209, since proper remedy was by appeal. Goodman v. Storey, 221 Ark. 308, 254 S.W.2d 63 (1952).

Possession of Untaxed Liquor.

In prosecution for possession of untaxed liquor, allegation in the information that defendant was in possession of liquor upon which the state tax had not been paid was sufficient. Burrell v. State, 203 Ark. 1124, 160 S.W.2d 218 (1942) (decision under prior law).

In prosecution for possession of untaxed intoxicating liquor, evidence of prior conviction on similar charge was admissible. Burrell v. State, 203 Ark. 1124, 160 S.W.2d 218 (1942) (decision under prior law).

For conviction under this section it is immaterial whether liquor obtained is liquor legally manufactured outside of state or liquor illegally manufactured within the state, if in fact the excise tax is not paid on the liquor. McHenry v. State, 219 Ark. 401, 242 S.W.2d 707 (1951).

Maximum sentence for possession of two pints of untaxed wine was not excessive. McHenry v. State, 219 Ark. 401, 242 S.W.2d 707 (1951).

Sentence.

Imposition of fine and imprisonment was erroneous where language of indictment indicated offense was for selling liquor in dry territory instead of selling liquor without a license, hence defendant was subject only to a fine. Robbins v. State, 219 Ark. 664, 244 S.W.2d 156 (1951).

Cited: Middleton v. State, 311 Ark. 307, 842 S.W.2d 434 (1992).

3-3-206. Sale or delivery to retailer without valid license tax receipt.

Any manufacturer or jobber who shall sell or deliver intoxicating liquor within the state to a retailer who does not possess a valid license tax receipt, as provided for in this act, shall be guilty of a misdemeanor.
1. For the first offense, he or she shall be guilty of a Class B misdemeanor.
2. Any person found guilty a second time shall be guilty of a Class A misdemeanor.

History. Acts 1943, No. 218, §§ 1, 2; A.S.A. 1947, §§ 48-901, 48-902; Acts 2005, No. 1994, § 462.

Amendments. The 2005 amendment, in (a), inserted “or she,” substituted “guilty of a Class B misdemeanor” for “fined not less than two hundred fifty dollars ($250) nor more than one thousand dollars ($1,000) or imprisoned not less than thirty (30) days nor more than six (6) months, or both so fined and imprisoned within the discretion of the court or jury” at the end of the second sentence, and deleted the former last sentence; and substituted “guilty of a Class A misdemeanor” for “fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) or confined in the county jail not less than one (1) month nor more than six (6) months, or both so fined and imprisoned within the discretion of the court or jury” at the end of (b).

Meaning of “this act”. See note to § 3-3-205.

Case Notes

Intoxicating Liquor.

Beer containing 5% alcohol is an intoxicating liquor within the meaning of this section. Wald v. State ex rel. Robinson, 196 Ark. 1180, 111 S.W.2d 553 (1937) (decision under prior law).

Cited: Bryant v. State, 246 Ark. 872, 440 S.W.2d 534 (1969); Alpha Zeta Chapter of Pi Kappa Alpha Fraternity v. Sullivan, 293 Ark. 576, 740 S.W.2d 127 (1987).

3-3-207. [Repealed.]

A.C.R.C. Notes. The amendment to this section by Acts 2005, No. 1994, § 366, was superseded by the repeal of this section by Acts 2005, No. 541, § 1. As amended by Acts 2005, No. 1994, § 366, this section read:

“3-3-207. Sales to persons failing to provide for families.

“(a) Any person who shall sell intoxicating alcoholic liquor to any person who has been reported to the seller, by the juvenile court or any officer acting by its discretion, as failing to make a proper provision for his or her family shall be guilty of a Class C misdemeanor. The penalties prescribed herein shall be in addition to any other penalty prescribed by law.

“(b) Any person found guilty a second time shall be guilty of a Class B misdemeanor.”

Publisher's Notes. This section, concerning sales of alcohol to persons failing to provide for families, was repealed by Acts 2005, No. 541, § 1. The section was derived from Acts 1943, No. 218, §§ 1, 2; A.S.A. 1947, §§ 48-901, 48-902.

3-3-208. Possession or procuring orders.

Any person who, by himself, herself, his or her employee, servant, agent for himself or herself, or any other person, shall keep or carry on his or her person or in any vehicle or leave in a place for another to secure any intoxicating alcoholic liquor with the intent to sell the liquor in violation of this act or who shall within this state in any manner, directly or indirectly, solicit, take, or accept any order for the purchase, sale, shipment, or delivery of intoxicating liquor for beverage purposes in violation of the requirements of this act shall be guilty of a violation.
1. He or she shall be fined not less than two hundred fifty dollars ($250) nor more than five hundred dollars ($500) for the first offense.
2. For the second and subsequent offenses, he or she shall be guilty of a Class A misdemeanor.
The penalties prescribed herein shall be in addition to any other penalty prescribed by law.

History. Acts 1943, No. 218, § 1; A.S.A. 1947, § 48-901; Acts 2005, No. 1994, § 210.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” at the end of (a); substituted “Class A misdemeanor” for “misdemeanor and shall be subject to a fine of not less than two hundred fifty dollars ($250) nor more than one thousand dollars ($1,000), or to imprisonment in the county jail for not less than thirty (30) days nor more than one (1) year, or subject to both fine and imprisonment in the discretion of the court or jury” in (b)(2); and made gender neutral changes throughout.

Meaning of “this act”. See note to § 3-3-205.

Case Notes

Amount of Liquor.

Section 3-3-306 [now repealed] making it unlawful to possess more than one gallon of intoxicating liquor in dry territory does not apply to prosecution for possession of intoxicating liquor for the purpose of sale in a dry territory, and the state in a prosecution does not have to prove that defendant had more than one gallon in his possession, as defendant violates the law if he has any liquor in his possession for sale in a dry territory. Jaynes v. State, 212 Ark. 410, 206 S.W.2d 7 (1947); Freeman v. State, 214 Ark. 359, 216 S.W.2d 864 (1949).

Double Jeopardy.

Defendant who pleaded guilty and paid a fine for possession of more than one gallon of liquor in dry territory under § 3-3-306 [now repealed] would not be subjected to double jeopardy if prosecuted for possession for sale of same liquor under this section since the laws of Arkansas have created two separate offenses out of same transaction. Eoff v. State, 218 Ark. 109, 234 S.W.2d 521 (1950).

Dry Territories.

Club headquarters of veterans' organization was within the meaning of “a place for another to secure” so that upon a showing that beer was sold in a stipulated “dry territory,” the post commander was guilty of possession for purpose of sale in violation of law. Joy v. State, 211 Ark. 185, 199 S.W.2d 745 (1947).

A fine authorized by statute was upheld when the charge was possession of intoxicating liquors with intent to sell in a dry area, and an instruction concerning the application of the statute was not erroneous. Harris v. City of Harrison, 211 Ark. 889, 204 S.W.2d 167 (1947).

The keeping of intoxicating liquors for sale in a territory wherein the sale thereof is forbidden is a violation. Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

Evidence.

In prosecution for illegal sale and possession of liquor for sale, testimony as to other occasions when premises of defendant had been raided and liquor found was admissible to show the nature of the business in which he was engaged. Craig v. State, 204 Ark. 798, 164 S.W.2d 1007 (1942).

Evidence of police chief as to seeing people secure liquor from defendant was sufficient to sustain a conviction for possession of intoxicating liquor for sale without a license. Gray v. State, 212 Ark. 1023, 208 S.W.2d 988 (1948).

Where defendant was being prosecuted for violation of this section, testimony of law enforcement officers that defendant had the reputation of being a bootlegger in that community on the date of the alleged offense, was permitted under § 3-3-405. Eoff v. State, 218 Ark. 109, 234 S.W.2d 521 (1950).

The evidence was sufficient to sustain conviction for unlawful possession of intoxicating liquor for sale. Eoff v. State, 218 Ark. 109, 234 S.W.2d 521 (1950).

Evidence was legally sufficient to go to the jury on the question as to whether defendant illegally possessed liquor for the purpose of sale in a dry county. Blankenship v. State, 226 Ark. 729, 293 S.W.2d 702 (1956).

Instructions.

Instruction not limiting the findings of the jury to particular offense charged but authorizing verdict of guilty upon finding that defendant at any time within one year preceding the filing of the information had possession of liquor for purpose of sale was not reversible error where defendant did not ask for instruction limiting consideration of the jury to specific instance, nor instruction limiting scope of evidence of other similar offenses. Craig v. State, 204 Ark. 798, 164 S.W.2d 1007 (1942) (decision under prior law).

Intoxicating Liquor.

Beer containing 5% alcohol is an intoxicating liquor within the meaning of this section. Wald v. State ex rel. Robinson, 196 Ark. 1180, 111 S.W.2d 553 (1937) (decision under prior law).

Multiple Charges.

Where defendant was arrested while carrying a bucket containing several bottles of corn whiskey, he could properly be charged and convicted for (1) possessing intoxicants for the purpose of sale, and (2) possessing untaxed liquor even though both offenses grew out of the same transaction. Miller v. State, 222 Ark. 476, 261 S.W.2d 411 (1953).

Cited: Bryant v. State, 246 Ark. 872, 440 S.W.2d 534 (1969); Alpha Zeta Chapter of Pi Kappa Alpha Fraternity v. Sullivan, 293 Ark. 576, 740 S.W.2d 127 (1987).

3-3-209. Furnishing to alcoholics or intoxicated persons.

Any person who shall sell, give away, or dispose of intoxicating liquor to an habitual drunkard or an intoxicated person shall be guilty of a violation and for the first offense be punishable by a fine of not less than one hundred dollars ($100) nor more than two hundred fifty dollars ($250). For the second and subsequent offenses, he or she shall be guilty of a Class A misdemeanor. The penalties prescribed in this section shall be in addition to any other penalty prescribed by law.

History. Acts 1943, No. 218, § 1; A.S.A. 1947, § 48-901; Acts 2005, No. 1994, § 333.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in the first sentence; and in the second sentence, inserted “or she” and “Class A” and deleted “and punishable by a fine of not less than two hundred fifty dollars ($250) nor more than five hundred dollars ($500) or by imprisonment in the county jail for not less than six (6) months nor more than one (1) year, or both so fined and imprisoned in the discretion of the court or jury” from the end.

Meaning of “this act”. See note to § 3-3-205.

Case Notes

Civil Liability.

This section is not a dramshop act; therefore, the trial court did not err in ruling that as a matter of law there was no proximate cause between violation of this section prohibiting the sale of beer to a minor and the accident which occurred when a minor lost control of his vehicle while opening a bottle of beer. Milligan v. County Line Liquor, Inc., 289 Ark. 129, 709 S.W.2d 409 (1986), overruled, Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997).

This section and § 3-3-218 establish a high duty of care on the part of holders of alcohol licenses, which includes the duty not to sell alcohol to high-risk groups, including intoxicated persons, and evidence of the sale of alcohol by a licensed vendor to an intoxicated person is some evidence of negligence. Jackson v. Cadillac Club, Inc., 337 Ark. 24, 986 S.W.2d 410 (1999).

Habitual Drunkards.

The sale of beer to habitual drunkards is a violation of this section. Wald v. State ex rel. Robinson, 196 Ark. 1180, 111 S.W.2d 553 (1937).

Intoxicating Liquor.

Section 3-1-102 does not define the term “intoxicating liquors” as it appears in this section. Digiacomo v. State, 194 Ark. 24, 105 S.W.2d 78 (1937) (decision under prior law).

Beer containing 5% alcohol is an intoxicating liquor within the meaning of this section. Wald v. State ex rel. Robinson, 196 Ark. 1180, 111 S.W.2d 553 (1937) (decision under prior law).

Cited: Bryant v. State, 246 Ark. 872, 440 S.W.2d 534 (1969); Alpha Zeta Chapter of Pi Kappa Alpha Fraternity v. Sullivan, 293 Ark. 576, 740 S.W.2d 127 (1987); Young v. Gastro-Intestinal Ctr., Inc., 361 Ark. 209, 205 S.W.3d 741 (2005).

3-3-210. Sale on Sunday or early weekday mornings.

1. A person who sells intoxicating alcoholic liquor on Sunday, except as such sales are authorized by §§ 3-9-215 and 3-9-216, and subdivision (a)(3) of this section, or between 1:00 a.m. and 7:00 a.m. on weekdays is guilty of a violation and for the first offense shall be punished by a fine of not less than one hundred dollars ($100) nor more than two hundred fifty dollars ($250).
2. For the second and subsequent offenses, the person is guilty of a Class B misdemeanor.
3. A person that holds a permit that allows on-premises consumption of alcoholic beverages may operate on Sundays between the hours of 10:00 a.m. and 12:00 midnight.
4. 1. A city, town, or county may establish by ordinance a lesser period of time than provided in subdivision (a)(3) of this section during which on-premises consumption of alcoholic beverages may occur at on-premises outlets.
  2. The city, town, or county ordinance shall specify the on-premises outlets that are subject to the more restrictive hours of operation on a Sunday.
5. A violation of a more restrictive city, town, or county ordinance is not an administrative violation against the Alcoholic Beverage Control Division on-premises consumption permit and shall be treated and disposed of under § 3-4-407.
6. The hours of operation of private club permitted establishments shall continue to be controlled by Alcoholic Beverage Control Division rules.
1. 1. As a further exception to the Sunday sales prohibition set out in subsection (a) of this section, counties and cities in the state may refer to the voters at an election the issue of whether to authorize the sale of alcoholic beverages for off-premises consumption on Sundays between the hours of 10:00 a.m. and 12:00 midnight or within a lesser period within the hours as may be provided under a referendum election conducted in accordance with the following:
    1. A referendum election may be called in a city by a petition filed with the city clerk signed by fifteen percent (15%) of the qualified electors who cast a vote in the city for the Office of Governor in the last general election in which the office appeared on the ballot; or
    2. A referendum election may be called in a county by a petition filed with the county clerk signed by fifteen percent (15%) of the qualified electors who cast a vote in the county for the Office of Governor in the last general election in which the office appeared on the ballot.
  2. The Sunday sale of alcoholic beverages authorized in this subsection shall be limited to those businesses within the county or city that possess a current and valid license for the sale of alcoholic beverages issued by the Alcoholic Beverage Control Division.
2. 1. The election under this subsection shall be conducted on a citywide or countywide basis.
  2. All qualified electors within the city or county, as the case may be, shall be eligible to vote even though they may reside in a dry area.
  3. The election under this subsection on the Sunday sales question shall be held in accordance with the procedures established for on-premises consumption elections by § 3-9-201 et seq., and the ballot for the election shall be printed substantially as follows:
3. 1. The vote of the majority of the electors in a citywide election approving Sunday sales shall authorize the sales in all permitted outlets located within the incorporated areas of the city only.
  2. The vote of the majority of the electors in a countywide election approving Sunday sales shall authorize the sales in all permitted outlets located anywhere within the county.
4. The vote of the majority of the electors against the off-premises sale of alcoholic beverages on Sunday has no effect on sales of mixed drinks in hotels and restaurants as authorized by § 3-9-215 or § 3-9-216 or any other on-premises-consumption permitted outlet.
Notwithstanding the authority granted to counties and cities in this section, wholesale distributors of intoxicating alcoholic liquor may not sell or deliver any alcoholic beverages to retailers on a Sunday.

“( ) FOR THE OFF-PREMISES SALE OF ALCOHOLIC BEVERAGES ON SUNDAY IN (NAME OF CITY OR COUNTY), ARKANSAS, AS AUTHORIZED BY LAW.

( ) AGAINST THE OFF-PREMISES SALE OF ALCOHOLIC BEVERAGES ON SUNDAY IN (NAME OF CITY OR COUNTY), ARKANSAS, AS AUTHORIZED BY LAW.”.

History. Acts 1943, No. 218, § 1; 1959, No. 56, § 1; A.S.A. 1947, § 48-901; Acts 1989, No. 426, § 1; 1999, No. 857, § 1; 2005, No. 1994, § 367; 2007, No. 1017, § 1; 2009, No 294, § 2; 2009, No. 763, § 1.

Amendments. The 2005 amendment inserted the subdivision designations in (a); substituted “violation” for “misdemeanor” in (a)(1); and, in (a)(2), inserted “Class B” and deleted “and punished by a fine of not less than two hundred fifty dollars ($250) nor more than five hundred dollars ($500) or by imprisonment in the county jail for no fewer than ten (10) days nor more than six (6) months or both so fined and imprisoned in the discretion of the court or jury” from the end.

The 2007 amendment inserted “3-9-216” and made related changes in (a)(1).

The 2009 amendment by No. 294, in (a), substituted “subdivision (a)(3) of this section” for “3-9-401 et seq.” in (a)(1), and inserted (a)(3); rewrote (b); and made minor stylistic changes.

The 2009 amendment by No. 763 inserted (a)(4) through (a)(6).

Meaning of “this act”. See note to § 3-3-205.

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

Case Notes

Evidence.

Circumstantial evidence sufficient to support conviction for both sale of liquor on Sunday under prior similar statute and sale of untaxed liquor. Miller v. City of Helena, 224 Ark. 1016, 277 S.W.2d 841 (1955).

Intoxicating Liquor.

Beer containing 5% alcohol is an intoxicating liquor within the meaning of this section. Wald v. State ex rel. Robinson, 196 Ark. 1180, 111 S.W.2d 553 (1937) (decision under prior law).

Local Regulations.

The penalty provision of a city ordinance which prohibited private clubs from serving or allowing consumption of mixed drinks between certain hours was not in conflict with this section since § 3-9-221 describing on-premise consumption at private clubs specifically provides that consumption at a private club is not a “sale.” Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

Multiple Offenses.

This section provides for enhanced punishment for second and subsequent offenses, not for second and subsequent convictions. Strode v. State, 259 Ark. 859, 537 S.W.2d 162 (1976).

Prior Convictions.

Defendant was on notice from the time the informations were filed that a prior conviction was charged in each and defendant was not denied benefit of notice and the opportunity to prepare and respond accordingly. Strode v. State, 259 Ark. 859, 537 S.W.2d 162 (1976).

Cited: Bryant v. State, 246 Ark. 872, 440 S.W.2d 534 (1969); Alpha Zeta Chapter of Pi Kappa Alpha Fraternity v. Sullivan, 293 Ark. 576, 740 S.W.2d 127 (1987).

3-3-211. Sales on Christmas Day.

It shall be unlawful to sell intoxicating liquors on Christmas Day.
Any person who shall sell intoxicating alcoholic liquors on Christmas Day shall be guilty of a Class B misdemeanor.

History. Acts 1949, No. 266, §§ 1, 2; A.S.A. 1947, §§ 48-950, 48-951; Acts 2005, No. 1994, § 367.

Amendments. The 2005 amendment, in (b), inserted “Class B” and deleted “and shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or imprisoned in the county jail for not less than thirty (30) days nor more than six (6) months, or both so fined and imprisoned within the discretion of the court or jury.”

3-3-212. Manufacturer-seller relationships generally.

It shall be unlawful for a manufacturer to:
1. Be interested, directly or indirectly, in any premises where malt, vinous, or spirituous liquors are sold at retail or in any business devoted wholly or partially to the sale of such liquors at retail, by stock ownership, interlocking directors, mortgage or lien on any personal or real property, or any other means; or
2. Make any loan to any owner.
1. Any lien, mortgage, or other interest or estate, however, now held by a manufacturer on or in the personal or real property of any owner, which mortgage, lien, interest, or estate was acquired on or before December 31, 1933, shall not be included within the provisions of this section.
2. The burden of establishing the time of the accrual of the interest, comprehended by subdivision (b)(1) of this section, shall be upon the person who claims to be entitled to the protection and exemption afforded by this section.
Subsections (a) and (b) of this section shall not apply to an agreement or arrangement by:
1. A manufacturer or wholesaler to pay for the display or other presentation of advertising and promotional material on or about the premises of the holder of a franchise granted by the Arkansas Racing Commission; or
2. A manufacturer providing sponsorship of or payment for the display or other presentation of advertising and promotional material on or about the premises of a large attendance facility, as defined by § 3-9-202(16), owned by a qualifying charitable nonprofit organization that has received tax-exempt status under 26 U.S.C. § 501(c)(3), as in effect on January 1, 2019.

History. Acts 1935, No. 108, Art. 3, § 18; Pope's Dig., § 14122; A.S.A. 1947, § 48-908; Acts 2001, No. 1838, § 1; 2019, No. 744, § 1.

Amendments. The 2019 amendment substituted “an” for “any” in the introductory language of (c); added the designation for (c)(1); and added (c)(2).

Cross References. Malt, vinous, or spirituous liquors defined, § 3-1-102.

3-3-213. Manufacturer-seller relationships — Exclusivity agreements — Definitions.

It shall be unlawful for any person engaged in the manufacture of alcoholic liquors:
1. To require any wholesaler or retailer to purchase from that manufacturer to the exclusion, in whole or in part, of any alcoholic liquors sold or offered for sale by other persons; or
2. To induce any retailer to purchase from that manufacturer or wholesaler to the exclusion, in whole or in part, of any alcoholic liquors sold or offered for sale by other persons, by:
  1. Acquiring any interest in property owned, occupied, or used by the retailer in his or her business, or in any license with respect to the premises of the retailer;
  2. Furnishing, giving, renting, lending, or selling to the retailer any equipment, fixtures, signs, supplies, money, service, or other thing of value, subject to exceptions provided by the rules of the Alcoholic Beverage Control Board and established trade customs;
  3. Paying or crediting the retailer for any advertising, display, or distribution service;
  4. Guaranteeing any loan or the repayment of any financial obligation of the retailer; or
  5. Offering or giving any bonus, premium, or compensation to the retailer or any of his or her officers, employees, or representatives.
As used in this section, unless the context otherwise requires:
1. “Person” includes any and all corporations, partnerships, associations, or individuals and all agents, representatives, or employees of such persons; and
2. “Manufacturer” means, unless otherwise specified, any person engaged in the business of distilling, brewing, making, blending, rectifying, or producing for sale in wholesale quantities alcoholic liquors of any kind, including whiskey, brandy, cordials, liquors, and other liquids containing alcohol, except patent medicines, beer, and wine.

History. Acts 1953, No. 362, §§ 1, 3; A.S.A. 1947, § 48-952; Acts 2019, No. 315, § 43.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a)(2)(B).

3-3-214. Sale of denatured alcohol.

It is unlawful for any person to sell, give away, or dispose of denatured alcohol for any beverage purposes whatsoever.
Any person who shall sell, give away, or dispose of denatured alcohol for any beverage purpose whatsoever shall be guilty of a violation and for the first offense be punished by a fine of not less than one hundred dollars ($100) nor more than two hundred fifty dollars ($250). For the second and subsequent offenses, he or she shall be guilty of a Class B misdemeanor.
Any person who shall sell, give away, or dispose of denatured alcohol to an habitual drunkard or an intoxicated person shall be prima facie guilty of selling denatured alcohol for beverage purposes and subject to the penalties provided in this section.

History. Acts 1939, No. 139, §§ 1-3; A.S.A. 1947, §§ 48-945 — 48-947; Acts 2005, No. 1994, § 368.

Amendments. The 2005 amendment, in (b), substituted “violation” for “misdemeanor” in the first sentence, and in the second sentence, inserted “or she” and “Class B” and deleted “and punished by a fine of not less than two hundred fifty dollars ($250) nor more than five hundred dollars ($500), or by imprisonment in the county jail for not less than six (6) months nor more than one (1) year, or both so fined and imprisoned in the discretion of the jury” from the end.

3-3-215. Obtaining federal license without state license.

Any person within this state who has had issued to him or her a current federal license to sell liquor or beer in Arkansas and who has not had issued a current state license to sell liquor or beer shall be guilty of a misdemeanor and upon conviction shall be fined in any amount not less than one hundred dollars ($100) nor more than five hundred dollars ($500).
In any criminal prosecution under this section, the introduction of a certified copy or microfilm of a current federal license to sell beer or liquor in this state shall be prima facie evidence that the licensee is possessing beer or liquor in this state for sale unlawfully.

History. Acts 1949, No. 241, §§ 1, 2; A.S.A. 1947, §§ 48-948, 48-949.

Case Notes

Evidence.

Affidavit stating and explaining contents of federal records held inadmissible. Glover v. State, 220 Ark. 309, 247 S.W.2d 465 (1952).

3-3-216. Possession or sale of untaxed intoxicating liquor — Definition.

As used in this section, “intoxicating liquor” means any beverage containing more than five-tenths percent (0.5%) of alcohol by weight.
It is unlawful for a person to buy, bargain, sell, loan, own, have in possession, or knowingly transport in this state an intoxicating liquor upon which the Arkansas excise tax prescribed by law has not been paid.
1. Except as provided in subdivision (c)(2) of this section, a violation of this section is a Class B misdemeanor.
2. A violation of this section is a Class A misdemeanor if a person transports intoxicating liquor into this state from another state without the Arkansas excise tax having been paid on the intoxicating liquor and the person was transporting the intoxicating liquor for the purpose of resale in this state.
1. In addition to the applicable criminal penalties under subsection (c) of this section, a person who violates this section is subject to a civil penalty equal to the amount of all excise tax levied on the intoxicating liquor at the rates imposed on alcoholic beverages under § 3-7-101 et seq.
2. The Department of Finance and Administration shall assess and administer the civil penalty set forth in this subsection under the Arkansas Tax Procedure Act, § 26-18-101 et seq., and shall promulgate any rules necessary for the proper administration and enforcement of the civil penalty.

History. Acts 1941, No. 357, § 4; 1943, No. 219, § 1; 1947, No. 206, § 1; 1969, No. 475, § 1; A.S.A. 1947, § 48-934; Acts 1987, No. 965, § 1; 2005, No. 1994, § 369; 2007, No. 666, § 1; 2009, No. 548, § 1.

Amendments. The 2005 amendment, in (b), inserted “Class B” and deleted “and upon conviction shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) or imprisoned for not more than six (6) months, or both so fined and imprisoned” from the end.

The 2007 amendment inserted “as defined in § 3-8-201” in (a); added “and in addition to the applicable criminal … §§ 3-7-101 et seq.” in (b); added (c); and, in (d), inserted “of any kind, as defined in § 3-8-201” three times.

The 2009 amendment inserted the introductory language of (a), redesignated the remainder of (a) as (b), and deleted “of any kind, as defined in § 3-8-201” following “liquor” in (b); in (c), inserted (c)(2) and rewrote and redesignated the remaining text; inserted (d)(1) and redesignated the remaining text; deleted former (d), which read: “However, it shall constitute a Class A misdemeanor for any person to transport intoxicating liquor of any kind, as defined in § 3-8-201, from another state without the Arkansas excise tax having been paid on the intoxicating liquor if the court determines that the defendant was transporting the liquor of any kind for the purpose of resale”; and made related and minor stylistic changes.

Case Notes

Evidence.

Statement by sheriff that defendant had a reputation for being a “bootlegger” was not prejudicial to defendant being tried for possession of intoxicating liquor. Roberts v. State, 220 Ark. 245, 247 S.W.2d 360 (1952).

Evidence sufficient to support conviction. Roberts v. State, 220 Ark. 245, 247 S.W.2d 360 (1952).

Evidence insufficient to support conviction. Slate v. State, 221 Ark. 527, 254 S.W.2d 314 (1953).

Circumstantial evidence sufficient to support conviction for both sale of untaxed liquor and sale of liquor on Sunday. Miller v. City of Helena, 224 Ark. 1016, 277 S.W.2d 841 (1955).

Multiple Offenses.

Cited: Leach v. Cook, 211 Ark. 763, 202 S.W.2d 359 (1947).

3-3-217. [Repealed.]

A.C.R.C. Notes. The amendment to this section by Acts 2005, No. 1994, § 241, was superseded by the repeal of this section by Acts 2005, No. 541, § 2. As amended by Acts 2005, No. 1994, § 241, this section read:

“3-3-217. Free lunches prohibited — Penalty.

“(a) It shall be unlawful for any person, company, or corporation to give free lunches in any place where liquors are sold by such persons, company, or corporation.

“(b) Any person, company, or corporation violating the provisions of this section shall be guilty of a Class C misdemeanor.”

Publisher's Notes. This section, concerning the prohibition of providing free lunches in establishments where liquors are sold, was repealed by Acts 2005, No. 541, § 2. The section was derived from Acts 1911, No. 143, §§ 2, 3.

3-3-218. Duty of care of privilege license holders — Enforcement.

It is the specifically declared policy of the General Assembly that all licenses issued to establishments for the sale or dispensing of alcoholic beverages are privilege licenses, and the holder of such privilege license is to be held to a high duty of care in the operation of the licensed establishment.
It is the duty of every holder of an alcoholic beverage permit issued by the State of Arkansas to operate the business wherein alcoholic beverages are sold or dispensed in a manner which is in the public interest and does not endanger the public health, welfare, or safety. Failure to maintain this duty of care shall be a violation of this section and grounds for administrative sanctions being taken against the holder of the permit or permits.
1. The standard of review for the Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board in matters arising herein shall be:
  1. Whether the permitted outlet, as it has been operated, promotes the public convenience and advantage;
  2. Whether the continuation of the outlet would promote the public interest; and
  3. Whether the outlet's business operation endangers the public health, welfare, or safety of the area or community in which it is located.
2. It is specifically granted to the director and the board the power to review the outlet and its operation as if it were a new application, taking into consideration all factors involved in the review of an application as initially filed before the agency.
1. As to all violations occurring inside the permitted premises, the standard of proof shall be by substantial evidence.
2. As to all violations occurring outside the permitted premises, the standard of proof shall be by clear and convincing evidence.
The Alcoholic Beverage Control Division and its board are hereby authorized to adopt rules to implement each and every provision of this section.
The director and the board are empowered by this section to administer the full range of penalties available for other administrative proceedings before it, including, but not limited to, fines, suspension, cancellation, or revocation of such permits which have been found to endanger the public health, welfare, or safety.

History. Acts 1989, No. 695, § 1; 2003, No. 1756, § 1; 2019, No. 315, § 44.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (e).

Case Notes

Civil Liability.

This section and §§ 3-4-803 and 3-3-202 create a duty for licensees to exercise a high standard of care for the protection of minors, and a breach of this duty can lead to a suit for negligence. Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997).

Section 3-3-209 and this section establish a high duty of care on the part of holders of alcohol licenses, which includes the duty not to sell alcohol to high-risk groups, including intoxicated persons, and evidence of the sale of alcohol by a licensed vendor to an intoxicated person is some evidence of negligence. Jackson v. Cadillac Club, Inc., 337 Ark. 24, 986 S.W.2d 410 (1999).

Cited: Branscumb v. Freeman, 360 Ark. 171, 200 S.W.3d 411 (2004); Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

3-3-219. Social hosts — Criminal liability.

1. A person who exercises control over private property shall not knowingly allow a person under twenty-one (21) years of age who is not a family member of the person to consume alcohol on the private property.
2. This subsection applies only to a person who is present and in control of the private property at the time the consumption occurs.
3. This subsection does not apply to the owner of rental property or the agent of an owner of rental property unless the consumption occurs in the individual unit in which the owner or agent resides.
4. This subsection does not apply to any consumption of alcohol during religious ceremonies or for religious purposes.
1. A first violation of this section is a Class C misdemeanor.
2. A second violation of this section is a Class A misdemeanor.
3. A third or subsequent violation of this section is a Class D felony.
This section shall not prevent a township, city, or county from establishing by ordinance regulations more stringent than the provisions of this section.

History. Acts 2009, No. 976, § 1.

Subchapter 3 — Dry Territories

Cross References. Sale, barter, or loan in dry territory — Penalties, § 3-8-312.

Preambles. Acts 1947, No. 91 contained a preamble which read:

“Whereas, the present law is uncertain as to the amount of intoxicating liquors which can be possessed legally by a person in any dry county or part thereof in this state;

“Now, therefore … .”

Effective Dates. Acts 1899, No. 191, § 3: effective on passage. Approved May 8, 1899.

Acts 1917, No. 13, § 21: Jan. 24, 1917. Emergency declared.

Acts 1919, No. 87, § 6 [8]: Feb. 17, 1919. Emergency declared.

Acts 1947, No. 423, § 17: Mar. 28, 1947. Emergency clause provided: “Whereas it has been ascertained that the present liquor laws of this state are inadequate for the proper control of alcoholic beverages, and that flagrant violations of the present alcoholic control laws are occurring in increasing number throughout the state and that intoxicating liquors are being shipped through and from this state into other states in violation of their laws, and this law being necessary to remedy this situation and restore the proper operation of the police powers of this state and to provide for the public peace, health, safety, and well-being, an emergency is hereby declared to exist and this act shall be in full force and effect upon and after its passage and approval.”

Acts 1969, No. 248, § 8: became law without Governor's signature, Mar. 12, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the cities and counties in this state are in need of additional funds to construct and maintain streets and roads and to engage in other worthwhile activities; that a large amount of confiscated alcoholic beverages are not being turned over to the Director of Alcoholic Beverage Control as is required by law; that the cities and counties of this state can more effectively sell any alcoholic beverages seized and forfeited than can the state; and that in order to permit cities and counties this additional source of revenues and to encourage the more effective enforcement of the alcoholic beverage laws of this state, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall become effective from and after its passage and approval.”

Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Research References

Ark. L. Rev.

Constitutional Law — State Regulation of Interstate Liquor Traffic, 4 Ark. L. Rev. 222.

Case Notes

Constitutionality.

Acts 1947, No. 423 does not violate Ark. Const., Art. 7, § 11, as taking jurisdiction from the circuit court and placing it in the commissioner of revenues (now Director of the Alcoholic Beverage Control Division). Morley v. Fifty Cases of Whiskey, 216 Ark. 528, 226 S.W.2d 344 (1950).

Acts 1947, No. 423 is not unconstitutional as a local or special act. Morley v. Fifty Cases of Whiskey, 216 Ark. 528, 226 S.W.2d 344 (1950).

3-3-301. Definition.

As used in this subchapter, unless the context otherwise requires, “person” means any individual, corporation, partnership, association, firm, or other business entity, or its agents or representatives.

History. Acts 1947, No. 423, § 1; A.S.A. 1947, § 48-920.

Case Notes

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-302. Penalties.

Unless a different penalty is specifically provided, any person who shall violate any of the provisions of this subchapter shall be guilty of a Class A misdemeanor.
In addition to all other fines and penalties herein provided, the Director of the Alcoholic Beverage Control Division shall revoke all alcoholic beverage permits held by any person convicted for a violation of this subchapter.

History. Acts 1947, No. 423, §§ 13, 14; A.S.A. 1947, §§ 48-932, 48-933; Acts 2005, No. 1994, § 211.

Amendments. The 2005 amendment substituted “Class A misdemeanor” for “misdemeanor and upon conviction shall be fined in a sum not less than fifty dollars ($50.00) nor more than one thousand dollars ($1,000) or be confined in the county jail for a period of not less than six (6) months nor more than one (1) year, or be both fined and imprisoned” in (a).

Cross References. Revocation and suspension proceedings generally, §§ 3-2-212 — 3-2-217.

Case Notes

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-303. Rules.

The Director of the Alcoholic Beverage Control Division shall promulgate all rules necessary to enforce and administer this subchapter.

History. Acts 1947, No. 423, § 12; A.S.A. 1947, § 48-931; Acts 2019, No. 315, § 45.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading and in the section.

Case Notes

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-304 — 3-3-308. [Repealed.]

A.C.R.C. Notes. The amendments to §§ 3-3-305 and 3-3-306 by Acts 2005, No. 1994, § 29, were superseded by the repeal of §§ 3-3-305 and 3-3-306 by Acts 2005, No. 1964, §§ 2, 3. As amended by Acts 2005, No. 1994, § 29, these sections read:

“3-3-305. Transportation by motor vehicle.

“(a) It is unlawful for a motor vehicle to carry at any one time in any county or part of a county in which it is unlawful to manufacture, sell, barter, loan, or give away intoxicating liquors, more than one (1) gallon of spirituous, vinous, or malt liquor and three (3) gallons or one (1) case of beer.

“(b) Any alcoholic beverages in excess of the amounts prescribed above found inside or on a vehicle in violation of this section shall be confiscated pursuant to an order of a court of competent jurisdiction.

“(c) The provisions of this section shall not apply to properly licensed retailers and wholesalers when so authorized by the Director of the Alcoholic Beverage Control Division, to common carriers or bonded carriers duly licensed by the Arkansas State Highway and Transportation Department, to a private or contract carrier holding a proper permit from the Director of the Alcoholic Beverage Control Division to transport intoxicating liquors within the State of Arkansas where the liquors are consigned to a point beyond the dry territory, or to individuals in transit when the individuals are not residents of the dry territory.

“(d) The operator of any motor vehicle violating the provisions of this section shall be guilty of a violation and shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).

“(e) This section shall not be deemed to repeal any acts pertaining to possession of alcoholic beverages in dry territory, but shall be cumulative thereto.

“3-3-306. Possession of alcoholic beverages other than beer.

“(a) It shall be unlawful for any person, firm, or corporation to possess more than one (1) gallon of spirituous, vinous, or malt liquors other than beer, in any county or part of a county in which it is unlawful to manufacture, sell, barter, loan, or give away intoxicating liquors.

“(b) Such liquor or liquors found in the possession of any person shall be confiscated pursuant to an order of a court of competent jurisdiction.

“(c) The provisions of this section shall not apply to common carriers in transit through such county providing further that the provisions of this section shall not apply to licensed bonded dealers or individuals in transit, when those individuals are not residents of the dry county.

“(d) Any person, firm, or corporation violating the provisions of this section shall be guilty of a violation and shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).”

Publisher's Notes. These sections, concerning the storage, possession, and transportation of alcoholic beverages in dry counties, were repealed by Acts 2005, No. 1964, §§ 1-5. The sections were derived from the following sources:

3-3-304. Acts 1947, No. 423, § 2; A.S.A. 1947, § 48-921.

3-3-305. Acts 1953, No. 28, §§ 1-4; 1971, No. 57, § 1; A.S.A. 1947, §§ 48-922.1 — 48-922.3, 48-922.3n.

3-3-306. Acts 1947, No. 91, §§ 1, 2; A.S.A. 1947, §§ 48-918, 48-919.

3-3-307. Acts 1949, No. 347, § 1; A.S.A. 1947, § 48-919.1.

3-3-308. Acts 1947, No. 423, § 3; A.S.A. 1947, § 48-922.

3-3-309. Procuring liquor for another.

1. It shall be unlawful for any person to either directly or indirectly procure or purchase for another in any district or territory where they are prohibited by law:
  1. Any alcohol or spirituous, ardent, vinous, malt, or fermented liquors;
  2. Any compound or preparation thereof commonly called tonics, bitters, or medicated liquors; or
  3. Intoxicating spirits of any character.
2. However, this section shall not prohibit one (1) person from buying for another from a licensed dealer.
Any person who shall violate any of the provisions of this section shall be guilty of a violation and fined in any sum not less than one hundred dollars ($100) nor more than five hundred dollars ($500).

History. Acts 1899, No. 191, §§ 1, 2, p. 335; C. & M. Dig., §§ 6163, 6164; A.S.A. 1947, §§ 48-914, 48-915; Acts 2005, No. 1994, § 30.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b).

Cross References. Sale in dry territory prohibited, § 3-8-209.

Case Notes

Unlawful Sales.

A person indicted for selling liquor without a license could not be convicted under this section. Woods v. State, 114 Ark. 391, 170 S.W. 79 (1914).

The doctrine that a person charged with unlawfully selling intoxicating liquor cannot be convicted upon proof that he participated only as a purchaser or agent for the purchaser has no application in a charge under this section. Anderson v. State, 161 Ark. 46, 255 S.W. 319 (1923).

Validity.

Subdivision (a)(2) of this section was added for emphasis, is merely surplusage, and does not render the section void. Payne v. State, 124 Ark. 20, 186 S.W. 612 (1916).

3-3-310. Solicitation or taking orders.

It shall be unlawful for any person, firm, or corporation in this state in person, by letter, circular, or other printed matter, or in any other manner, to solicit or take orders in this state for any alcoholic, vinous, malt, spirituous, or fermented liquors or any compound or preparation thereof commonly called tonic, bitters, or medicated liquors, or any other liquors, bitters, or drinks prohibited by the laws of this state to be sold, bartered, or otherwise disposed of.
The prohibition of this section shall apply to such liquors, bitters, and drinks, whether the parties intend that the liquors, bitters, or drinks shall be shipped into this state from outside of the state or from one (1) point in this state to another point in this state.
The taking or soliciting of orders for the above-described liquors is within the inhibition of this section, although the orders are subject to approval by some other person, and no part of the price is paid, nor any part of the goods is delivered when the order is taken.
If such order is in writing, parol evidence thereof is admissible without producing or accounting for the absence of the original.
Upon conviction, any person, firm, or corporation violating any of the provisions of this section, except as otherwise expressly provided in this section, shall be guilty of a Class B misdemeanor.

History. Acts 1917, No. 13, §§ 10, 19, p. 41; 1919, No. 87, § 5[7]; C. & M. Dig., §§ 6174, 6183; Pope's Dig., § 14155; A.S.A. 1947, §§ 48-916, 48-917; Acts 2005, No. 1994, § 370.

Publisher's Notes. This section was enacted when intoxicating liquor was prohibited in the entire state. Acts 1933 (1st Ex. Sess.), No. 7, § 23, repealed it with respect to beer and light wine. Acts 1935, No. 108, Art. 3, § 18-A, repealed it “in its entirety, excepting only as to those counties in which the sale of alcoholic liquors may later be prohibited under the local option provisions.” Acts 1935, No. 108, Art. 3, § 18-A, further provided that it should not be “construed to prohibit the advertising of any alcoholic liquors legalized by this act in any newspaper within this state.”

Amendments. The 2005 amendment substituted “guilty of a Class B misdemeanor” for “fined not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000) for each offense and may be confined not less than thirty (30) days nor more than ninety (90) days in the county jail” in (e); and deleted former (f).

Cross References. Local option laws, § 3-8-101 et seq.

Case Notes

Amount of Fine.

Fixing the amount of fine for a liquor violation is within the province of the jury and a fine within the statutory limits will not be reduced on appeal. Pillow v. State, 160 Ark. 195, 254 S.W. 462 (1923); Garner v. State, 184 Ark. 1093, 44 S.W.2d 1092 (1932).

Jurisdiction.

Municipal courts have jurisdiction of causes arising under this section. Gans v. State, 132 Ark. 481, 201 S.W. 823 (1918).

3-3-311. Seizure and forfeiture of beverages authorized.

All spirituous, vinous, or malt liquors or beverages found in the possession of any person violating this or any other alcoholic beverage control law of this state are declared to be contraband and shall be seized and forfeited.
Alcoholic or malt beverages subject to confiscation under this subchapter shall include those on which the Arkansas liquor excise tax has been paid as well as those on which the tax has not been paid.
The confiscation of alcoholic beverages hereunder shall be in addition to any other criminal penalties now or hereafter prescribed by law.

History. Acts 1947, No. 423, §§ 6, 11; A.S.A. 1947, §§ 48-925, 48-930.

Case Notes

Federal Authority.

Federal court would not interfere with state procedure for seizure and sale on the ground that liquor was seized without a warrant, after the liquor was in the possession of the Commissioner of Revenues, and due publication of notice of sale was given. Chambless v. Cannon, 81 F. Supp. 885 (W.D. Ark. 1949) (decision under prior law).

Interstate Transportation.

Where driver did not have an Arkansas permit, seizure of truck load of whiskey being transported through Arkansas did not violate the due process clause of Ark. Const., Art. 2, § 8, or the interstate commerce clause of U.S. Const., Art. 1, § 8, since 21st Amendment of the U.S. Constitution prohibits transportation of intoxicating liquor into any state in violation of state law. Welborn v. Morley, 219 Ark. 569, 243 S.W.2d 635 (1951).

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-312. Procedure upon seizure of beverages.

All spirituous, vinous, or malt beverages found in the possession of any person in violation of the laws as provided in this subchapter shall be seized and immediately turned over to the mayor if seized within the city limits of a municipality by a law enforcement officer of that municipality. They shall be turned over to the county judge if seized without or within the city limits of any municipality by the sheriff or any Department of Arkansas State Police officer or any Alcoholic Beverage Control Enforcement Division agent.
The seized beverages are to be held by the mayor or county judge until such time as any municipal court of the county wherein the beverages were seized determines the beverages to be contraband and subject to sale.
The mayor or the county judge, as the case may be, shall cause a notice to be published. This shall be done within three (3) days after being authorized by the court to sell the seized intoxicating liquors. The notice shall be published in a newspaper having a countywide circulation and shall appear in the newspaper twice within a thirty-day period, fifteen (15) days apart. The notice shall contain a list of the beverages authorized to be sold by the court, the approximate retail value thereof, the person, if known, from whom taken, the place where seized, and the advice that the beverages will be sold by the mayor or the county judge, as the case may be, at the expiration of thirty (30) days from the first published notice.

History. Acts 1947, No. 423, § 7; 1969, No. 248, § 1; A.S.A. 1947, § 48-926.

Case Notes

Federal Authority.

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-313. Determination of interests in seized beverages.

Any person claiming any interest in any alcoholic beverages seized under this subchapter may present a written petition. This may be done at any time within thirty (30) days from the date of seizure of the alcoholic beverages. The petition shall be presented to the municipal court of the county wherein the beverages were seized, shall set out the nature of the interest, and shall request that a hearing be held by the court to determine his or her right or interest therein.
The municipal judge of that court shall set a date for the hearing, which date shall be within ten (10) days from the date the hearing is requested, unless good and sufficient cause is shown and recorded for a further delay.
At the hearing all witnesses shall be duly sworn and the testimony recorded by a stenographer.
Within fifteen (15) days after the completion of the hearing, the municipal judge shall enter his or her written findings of fact and order upon the testimony so presented.
The findings of fact and order of the municipal judge may be appealed to the circuit court of the county wherein the alcoholic beverages were seized. Appeal may be had by filing a transcript of record of the hearing held before the judge with the court within fifteen (15) days after the municipal judge's order has been duly entered.
The circuit court shall hear no new evidence on this appeal and shall render its judgment only on errors of law.
An appeal from the judgment of the circuit court may be taken as provided by law.

History. Acts 1947, No. 423, §§ 8, 9; 1969, No. 248, §§ 2, 3; A.S.A. 1947, §§ 48-927, 48-928.

Case Notes

Constitutionality.

The procedure prescribed by statute for a claimant to have his rights in confiscated liquor determined in no way deprives him of his property without due process of law. Morley v. Fifty Cases of Whiskey, 216 Ark. 528, 226 S.W.2d 344 (1950) (decision prior to 1969 amendment).

Federal Authority.

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-314. Sale of confiscated beverages.

Immediately upon the expiration of thirty (30) days from the date of the first notice provided in § 3-3-312, the mayor or the county judge, as the case may be, shall immediately notify licensed liquor wholesalers and retailers in the county, or, if the county is dry, then the licensed liquor wholesalers and retailers in the nearest wet county, that the contraband will be sold to the highest bidder and shall request all licensed liquor wholesalers and retailers to submit sealed bids.
No confiscated alcoholic beverages shall be sold at less than fifty percent (50%) of the retailers' selling price of such liquor as defined in Acts 1949, No. 282, § 4, as amended [repealed].
In the event that alcoholic beverages are confiscated upon which the Arkansas tax has not been paid, the retailer or wholesaler buying the beverages is required to pay the tax.
All funds derived from the sale of the confiscated alcoholic beverages shall be deposited as follows:
1. Fifty percent (50%) in the general fund of the city or the county, as the case may be; and
2. Fifty percent (50%) thereof as general revenues in the State Treasury to the credit of the State Apportionment Fund. There the funds shall be allocated and distributed to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by law and shall be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.
The county or city officials are required to file a report at the end of each month with the Alcoholic Beverage Control Division showing the number of arrests, the amount of alcoholic beverages confiscated, and the amount of money collected from the sale of such beverages.

History. Acts 1947, No. 423, § 10, as added by Acts 1953, No. 118, § 36(D), as added by Acts 1971, No. 585, § 12; A.S.A. 1947, § 48-929.

Case Notes

Cited: Hale v. Jones, 212 Ark. 437, 206 S.W.2d 17 (1947).

3-3-315. Failure to surrender confiscated beverages.

Any person who shall seize or confiscate any spirituous, vinous, or malt beverages under the provisions of §§ 3-3-311 and 3-3-312 and who shall not immediately turn over the spirituous, vinous, or malt beverages as required by § 3-3-312 to the mayor or the county judge, as the case may be, shall be guilty of a Class A misdemeanor.

History. Acts 1969, No. 248, § 5; A.S.A. 1947, § 48-929.1; Acts 2005, No. 1994, § 334.

Amendments. The 2005 amendment inserted “Class A” and deleted the former second sentence, which stated: “Upon conviction, he shall be subject to a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) or imprisonment of not less than three (3) months nor more than one (1) year, or both such fine and imprisonment.”

Subchapter 4 — Illicit Manufacture and Equipment

Acts 1949, No. 200, § 4: Mar. 1, 1949. Emergency clause provided: “Whereas, the present law regulating the possession of illicit stills and the unlawful manufacture of liquor is inadequate to deter violations thereof, now, therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety, shall take effect and be in full force from and after its passage and approval.”

Acts 1975, No. 928, § 1: effective simultaneously with the Arkansas Criminal Code on Jan. 1, 1976.

3-3-401. Definition.

As used in this subchapter, unless the context otherwise requires, “illicit still” means an apparatus designed for the unlawful manufacture of intoxicating liquor, which shall include an outfit or parts of an outfit commonly used, or intended to be used, in the distillation or manufacture of spirituous, vinous, or malt liquors and which is not duly registered in the office of the Commissioner of Internal Revenue.
The burden of proving that the still or apparatus is so registered shall be on the defendant or defendants under charge.

History. Acts 1935, No. 108, Art. 6, § 5; Pope's Dig., § 14138; A.S.A. 1947, § 48-937.

Cross References. Spirituous, vinous, and malt liquors defined, § 3-1-102.

3-3-402. Manufacture, possession, and transportation.

It shall be unlawful for any person, including any corporation or legal entity:
1. To own, possess, or knowingly transport any illicit still, still worm, or any apparatus or any substantial part of any illicit still designed for the unlawful manufacture of spirituous, vinous, or malt liquor;
2. To manufacture or engage in the manufacture of spirituous, vinous, or malt liquor in the State of Arkansas without obtaining a license to do so from the State of Arkansas and the United States; or
3. To own, possess, or knowingly transport any illicitly distilled spirituous, vinous, or malt liquors.
Any person committing an offense defined by this section is guilty of a Class D felony.

History. Acts 1949, No. 200, §§ 1, 2; 1961, No. 458, § 1; 1969, No. 475, § 2; 1975, No. 928, § 20; A.S.A. 1947, §§ 48-936.1, 48-936.2.

Cross References. Class D felony, fines, § 5-4-201.

Class D felony, imprisonment, § 5-4-401.

Case Notes

Appeal.

Failure to object to action of the trial judge in interrogating a witness as to defendant's reputation for dealing in intoxicating liquor and refusal to permit defendant to present rebuttal evidence waived such alleged error on appeal. Chandler v. State, 243 Ark. 22, 417 S.W.2d 957 (1967).

Evidence.

Reputation of defendant as a bootlegger and moonshiner held admissible in trial of defendant charged with possession of illicit still. Smith v. State, 220 Ark. 959, 251 S.W.2d 591 (1952) (decision under prior law).

Evidence of possession of marijuana, possession of drug paraphernalia, and possession of an illicit whiskey still, found in defendant's residence, held sufficient. White v. State, 47 Ark. App. 127, 886 S.W.2d 876 (1994).

Information.

Where information charged defendant with possession of unregistered “still and still worm,” defendant was not misled as to crime charged even though only possession of a still worm was shown since court made it plain by its instructions that defendant could be found guilty only of possession of a still worm. Philyaw v. State, 228 Ark. 71, 305 S.W.2d 851 (1957), cert. denied, 356 U.S. 340, 78 S. Ct. 777, 2 L. Ed. 2d 809 (1958).

Possession of Still Worm.

Where defendant was charged with possession of unregistered “still and still worm,” it did not matter that the still was not set up and therefore did not require registration with federal authorities since possession of the still worm was all that was required to be proved. Philyaw v. State, 228 Ark. 71, 305 S.W.2d 851 (1957), cert. denied, 356 U.S. 340, 78 S. Ct. 777, 2 L. Ed. 2d 809 (1958).

Separate Offenses.

The possession of an illicit still, the possession of a still worm, and the manufacture of spirituous liquors without a license are three separate violations. Philyaw v. State, 228 Ark. 71, 305 S.W.2d 851 (1957), cert. denied, 356 U.S. 340, 78 S. Ct. 777, 2 L. Ed. 2d 809 (1958).

3-3-403. Seizure and forfeiture of vehicles.

All vehicles or vessels used in the transportation or storage of any illicitly distilled spirituous, vinous, or malt liquor or any illicit still, still worm, or other apparatus designed for the unlawful manufacture of spirituous, vinous, or malt liquor shall be seized and forfeited and shall be sold by the Director of the Alcoholic Beverage Control Division at public auction or to state agencies desiring to purchase the vehicles or vessels.
All proceeds derived from the sale of the seized and forfeited vehicles or vessels shall be special revenues and shall be deposited in the State Treasury to the credit of the Public School Fund.

History. Acts 1969, No. 475, § 3; A.S.A. 1947, § 48-936.3.

3-3-404. Destruction and sale of still.

The court, upon conviction of any defendant for illegal manufacture or sale or gift of intoxicating alcoholic liquors, shall order the destruction of any illicit stills or apparatus designed for the manufacture of intoxicating liquor belonging to or under the control of the defendant.
The court may order the copper or other property sold.
The proceeds of the sale shall be paid to the county treasurer of the county for the benefit of the road fund.

History. Acts 1935, No. 108, Art. 6, § 9; Pope's Dig., § 14142; A.S.A. 1947, § 48-938.

3-3-405. Defendant's reputation as evidence.

In any prosecution or proceeding for any violation of this act, the general reputation of the defendant for moonshining, bootlegging, or being engaged in the illicit manufacture of or trade in intoxicating liquors shall be admissible in evidence against the defendant.

History. Acts 1935, No. 108, Art. 6, § 7; Pope's Dig., § 14140; A.S.A. 1947, § 48-940.

Case Notes

Constitutionality.

This section is constitutional. Stewart v. State, 240 Ark. 701, 402 S.W.2d 116 (1966).

Admissibility.

—In General.

General reputation of the defendant for moonshining, bootlegging, or engaging in the illegal manufacture or sale of intoxicating liquors is admissible in prosecution for sale without license. Gray v. State, 212 Ark. 1023, 208 S.W.2d 988 (1948).

Where defendant was being prosecuted for violation of § 3-3-208, testimony of law enforcement officers that defendant had the reputation of being a bootlegger in that community on the date of the alleged offense, was permitted under this section. Eoff v. State, 218 Ark. 109, 234 S.W.2d 521 (1950).

Evidence of defendant's reputation was admissible in prosecution for violation of liquor laws in dry county. Huffman v. State, 222 Ark. 319, 259 S.W.2d 509 (1953); Thompson v. State, 225 Ark. 1059, 287 S.W.2d 465 (1956); Manley v. State, 226 Ark. 415, 290 S.W.2d 446 (1956); Wimberly v. State, 240 Ark. 345, 399 S.W.2d 274 (1966); Clark v. State, 246 Ark. 1151, 442 S.W.2d 225 (1969).

—Civil Proceeding.

General reputation of defendant for illegal dealing in liquor was not admissible in civil proceeding by state to collect penalties for taxes due on liquor purchased by defendant in Louisiana and sold in Arkansas. Parker v. Marsh, 221 Ark. 229, 252 S.W.2d 624 (1952).

—Present Reputation.

The rule that only recent reputation should be considered was complied with. Freyaldenhoven v. State, 217 Ark. 484, 231 S.W.2d 121 (1950).

Reputation of defendant as a bootlegger and moonshiner was admissible in trial of defendant charged with possession of illicit still where question concerning reputation was couched in present tense. Smith v. State, 220 Ark. 959, 251 S.W.2d 591 (1952).

—Previous Raids.

—Prior Convictions.

In prosecution for possession of untaxed intoxicating liquor, evidence of prior conviction on similar charge was held admissible. Burrell v. State, 203 Ark. 1124, 160 S.W.2d 218 (1942).

Evidence of prior convictions of liquor law violations was held admissible in prosecution for possessing liquor for sale in dry county. Thompson v. State, 225 Ark. 1059, 287 S.W.2d 465 (1956).

Opening Statements.

In prosecution for possessing liquor for sale in a dry county, prosecuting attorney had the right to state in his opening statement that the state expected to introduce evidence as to the reputation of defendants for illicit dealing in liquor. Thompson v. State, 225 Ark. 1059, 287 S.W.2d 465 (1956).

Sufficiency.

In prosecution of defendant for possession of intoxicating liquor for purpose of sale in dry territory, the jury has a right to consider defendant's reputation for engaging in illegal liquor traffic in determining his guilt or innocence of the charge, but proof of such reputation alone will not sustain a conviction. Richardson v. State, 211 Ark. 1019, 204 S.W.2d 477 (1947); Freeman v. State, 214 Ark. 359, 216 S.W.2d 864 (1949).

Cited: Johnson v. Benton, 240 Ark. 781, 402 S.W.2d 395 (1966).

Chapter 4 Alcoholic Beverages Generally — Permits

Research References

ALR.

Liquor license as subject to execution or attachment. 40 A.L.R.4th 927.

Intoxicating liquors: products liability. 42 A.L.R.4th 253.

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 87 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 138 et seq.

Subchapter 1 — General Provisions

Cross References. Beer permits, §§ 3-5-206, 3-5-1303.

“Whereas, the present state revenue does not meet the needs for the maintenance and development of the State Government and its agencies and the state's credit is threatened with impairment, an emergency is declared to exist and this act shall become a law and be effective on it passage and approval or nonaction by the Governor.”

3-4-101. Permit required.

Vinous (except wines), spirituous, or malt liquors or hard cider shall not be manufactured in this state for storage or sale at retail within the state without a permit issued by the Director of the Alcoholic Beverage Control Division.
A person shall not sell vinous, spirituous, or malt liquors or hard cider in this state, except as provided in this act. However, the provisions of this act shall not apply to the manufacture, sale, and distribution of wines in this state.

History. Acts 1935, No. 108, Art. 3, § 2; Pope's Dig., § 14105; A.S.A. 1947, § 48-302; 2019, No. 691, § 3.

Amendments. The 2019 amendment inserted “or hard cider” in (a) and (b); and made stylistic changes.

Research References

ALR.

Interplay between Twenty-First Amendment and Commerce Clause concerning state regulation of intoxicating liquors. 116 A.L.R.5th 149.

3-4-102. Exhibition of permit.

Before commencing or doing any business for the time for which a permit has been issued, the permit shall be enclosed in a suitable wood or metal frame having a clear glass space and a substantial wood or metal back so that the whole of the permit may be seen therein. The permit shall be posted upon and at all times displayed in a conspicuous place in the room where the business is carried on, so that all persons visiting the place may readily see it.
It shall be unlawful for any person holding a permit to post the permit or allow the permit to be posted upon premises other than the premises permitted or upon premises where traffic in beer, wine, or liquor is being carried on by any person other than the permittee or knowingly to deface, destroy, or alter any permit in any respect.

History. Acts 1935, No. 108, Art. 3, § 20; Pope's Dig., § 14125; A.S.A. 1947, § 48-320.

3-4-103. Fiduciaries — Continuation of permitted business.

If a corporation or copartnership holding a permit under this act shall be dissolved, or if a receiver or assignee for the benefit of creditors is appointed therefor, or if a receiver or assignee for the benefit of creditors or a committee of the property of an individual holding a permit is appointed during the time for which the permit was granted, or if a person holding a permit dies during the term for which the permit was given, then the corporation, copartnership, receiver, or assignee, or the administrator or executor of the estate of the individual, or a committee of the property of a person adjudged to be incompetent may continue to carry on the business upon the premises for a period not to exceed twenty-four (24) months from such date of dissolution or appointment or death. The successors in interest shall be allowed to renew the permit as if the original permittee were still in place and the said successor in interest may operate the said business with the same right and subject to the same restrictions and liabilities as if he or she had been the original applicant for and the original holder of the permit, provided the approval of the Director of the Alcoholic Beverage Control Division shall be first obtained.
Before continuing the business, the receiver, assignee, individual, or committee shall file a statement setting forth in such form and substance as the director may prescribe by rule the facts and circumstances by which they have succeeded to the rights of the original permittee.
The director may, in his or her discretion, permit the continuance of the business or may refuse to do so.
In the event that the director determines to permit the continuance of the business, the permit shall be submitted to the director, and shall have written or stamped across the face of the permit, and signed by the director, the following words:
For each endorsement, a fee of five dollars ($5.00) shall be paid to the Secretary of the Department of Finance and Administration by the applicant, which shall be paid into the same fund as other permit fees herein provided.

“(Here insert the name of the person) is permitted to manufacture or sell (as the case may be) malt, vinous, or spirituous liquors, as (here insert the representative capacity, whether as assignee, receiver, executor, administrator, or otherwise) of the original permittee for the unexpired term.”

History. Acts 1935, No. 108, Art. 3, § 19; Pope's Dig., § 14124; A.S.A. 1947, § 48-319; Acts 1995, No. 652, § 7; 2019, No. 910, § 3305.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (e).

Meaning of “this act”. See note to § 3-4-101.

3-4-104. Sale by fiduciaries or insurers.

Any person, including an individual, partnership, association, or corporation, not otherwise a licensed dealer in alcoholic beverages, lawfully coming into possession of any alcoholic beverages as executor, administrator, trustee, or other fiduciary, as surety for or in payment of a debt, or as an insurer or its transferees or assigns for the salvage or liquidation of an insured casualty or damage or loss, may sell the beverages in one (1) lot or parcel to a duly licensed wholesale or retail dealer without qualifying as a dealer.
However, immediately after taking possession of the alcoholic beverages, the person shall register with the Alcoholic Beverage Control Division and furnish a detailed list of the alcoholic beverages and post with the division a bond, in an amount the division deems sufficient to protect the state from any taxes due on the alcoholic beverages.
The person shall pay to the division a registration fee of ten dollars ($10.00), which fee shall permit the sale of only the alcoholic beverages detailed in the registration request.
The fee shall be deposited to the credit of the general revenue of the State of Arkansas.
Whenever any beer is to be sold pursuant to this section, which shall have been involved in a fire, wreck, or similar casualty, then each bottle, can, or container of beer shall be labeled or otherwise identified, under the supervision of the Alcoholic Beverage Control Board or its successor, as distress merchandise salvaged from a fire, wreck, or similar casualty.

History. Acts 1959, No. 463, §§ 1, 2; A.S.A. 1947, §§ 48-342, 48-343.

3-4-105. Temporary permits.

1. The Alcoholic Beverage Control Division may issue a temporary permit for the sale of alcoholic beverages within categories set out in subsection (b) of this section at a function sponsored by or for the benefit of a nonprofit organization or charitable organization.
2. A temporary permit issued under this subsection may be issued for a period of time not to exceed five (5) consecutive days.
3. An application for a temporary permit issued under this subsection shall meet the requirements as established by the Director of the Alcoholic Beverage Control Division and set out in the application.
1. The categories and application fees for temporary permits issued under subsection (a) of this section are as follows:
  1. Temporary beer permit — Fifty dollars ($50.00) for each event for a temporary permit allowing the sale of beer;
  2. Temporary wine permit — Fifty dollars ($50.00) for each event for a temporary permit allowing the sale of wine;
  3. Temporary spirit permit — Fifty dollars ($50.00) for each event for a temporary permit allowing the sale of spirituous alcoholic beverages; and
  4. Temporary hard cider permit — Fifty dollars ($50.00) for each event for a temporary permit allowing the sale of hard cider.
2. A temporary permit issued under subsection (a) of this section is only for on-premises consumption at the event specified in the temporary permit.
An applicant may apply for one (1) or more of the temporary permits authorized in subsection (a) of this section for an event.

History. Acts 2009, No. 294, § 3; 2019, No. 691, § 4.

Amendments. The 2019 amendment added (b)(1)(D).

3-4-106. Alcoholic beverage sampling authorized — Definition.

As used in this section, “selling unit” means the configuration of an alcoholic beverage intended for sale to consumers, including without limitation:
1. A bottle of wine holding seven hundred fifty milliliters (750 ml); and
2. A case of beer containing thirty-six (36) cans holding twelve ounces (12 oz) per can.
A corporation that is publicly traded on a nationally recognized stock exchange that has its principal place of business in Arkansas and is permitted to sell alcoholic beverages for on-premises or off-premises consumption in Arkansas and other states may conduct sampling activities in accordance with this section.
1. A manufacturer or wholesaler may provide and deliver alcoholic beverages of any type directly to a qualified corporation for the purpose of allowing the corporation to sample the alcoholic beverages to determine whether to offer the alcoholic beverages for sale at one (1) or more of the qualified corporation's business locations either within or outside the state.
2. A manufacturer or wholesaler that provides alcoholic beverages under this section is not required to:
  1. Be authorized to do business in this state; or
  2. Have any type of license or permit to operate in this state.
3. A manufacturer or wholesaler shall not charge the qualified corporation for the alcoholic beverages provided under this section.
4. Provision of an alcoholic beverage by a manufacturer or wholesaler under this section is not a gift, gratuity, or inducement to the qualified corporation or any of the qualified corporation's affiliates.
5. An alcoholic beverage provided and delivered under this section need not:
  1. Be available for sale in Arkansas; or
  2. Possess a brand label approved for sale in this state.
6. An alcoholic beverage provided and delivered under this section shall be delivered to an office of the qualified corporation.
7. Except for a facility hosting a charitable event, the location to which an alcoholic beverage is provided and delivered under this section shall not be a part of a facility permitted for the on-premises or off-premises consumption of alcoholic beverages.
Except as provided in subsection (e) of this section, an alcoholic beverage provided and delivered under this section shall:
1. Be stored in a locked container when not being used for sampling; and
2. Not be served to, available to, or handled by a person under twenty-one (21) years of age.
An employee of a qualified corporation may transport an alcoholic beverage provided under this section to the employee's personal residence or to a facility hosting a charitable event for the purpose of sampling the alcoholic beverage if:
1. Sampling of the alcoholic beverage occurs within the employee's personal residence or within a facility hosting a charitable event;
2. No person under twenty-one (21) years of age is served, has access to, or handles the alcoholic beverage;
3. The alcoholic beverage is not sold; and
4. For alcoholic beverages transported to a private residence, no more than one (1) selling unit of each stock-keeping unit of each alcoholic beverage is present at the same time.
An alcoholic beverage provided and delivered under this subsection shall be sampled only by an employee, a contractor, an immediate family member of the employee or a contractor, an agent of the qualified corporation, a guest visiting the facility of the qualified corporation, or a guest at a charitable event.
No more than thirty-six (36) selling units of each stock-keeping unit of an alcoholic beverage may be held at the same time by a qualified corporation for sampling purposes or charitable events.
A qualified corporation shall:
1. Not sell an alcoholic beverage provided and delivered under this section; and
2. Destroy or safely store any alcoholic beverage remaining at the conclusion of the sampling.
An alcoholic beverage provided and delivered by a manufacturer or wholesaler under this section is exempt from taxation.
Providing alcoholic beverages to a qualified corporation in accordance with this section is not a violation of any statute or rule, including a rule requiring a manufacturer or wholesaler to provide the same services to all retailers.
Owning, possessing, or transporting an alcoholic beverage furnished, or being furnished, to a qualified corporation under this section is not an offense under § 3-3-401 et seq.

History. Acts 2017, No. 304, § 1.

Subchapter 2 — Issuance and Terms

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Vinous, spirituous and malt liquors defined, § 3-1-102.

Acts 1937, No. 80, § 3: approved Feb. 13, 1937. Emergency clause provided: “Whereas, the Arkansas Alcoholic Control Act makes no provision for revenue for second class cities and incorporated towns, and whereas, the control and policing of the sale of liquor in those municipalities is burdensome and expensive, an emergency is declared to exist and this act shall become a law and be in full force and effect from and after its passage.”

Acts 1983, No. 420, § 3: Mar. 13, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that permits issued by the Alcoholic Beverage Control Division should be renewable annually no later than August 31; and that this act is immediately necessary to so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 675, § 8: Mar. 22, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Alcoholic Beverage Control Division should be authorized to retain ½ of the application permit fees in instances where the permits are denied in order to partially defray the cost of reviewing the permit application and this act is necessary to authorize the same. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 812, § 4: emergency declared but held unconstitutional in Marshall v. Singleton, 282 Ark. 167, 666 S.W.2d 399 (1984). Emergency clause provided: “It is hereby found and determined by the General Assembly that the restriction in the number of permits to dispense vinous (except wines), sprituous and malt liquors is the public policy of the State of Arkansas, and that the continued restriction in the number of permits is in the public interest and advantage. Therefore, an emergency is hereby declared to exist, and this Act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.” March 25, 1983.

Acts 1991, No. 606, § 14: July 1, 1991. Emergency clause provided: “It is hereby found and determined that numerous persons who are resident aliens of the United States desire to operate establishments that dispense alcoholic beverages in the State of Arkansas and that the same are presently prohibited from obtaining a license in their name. It is further found and determined that the requirement of United States citizenship in order to maintain these establishments poses a burden upon commerce and restricts the number of persons who are able to contribute to the overall economy of the State of Arkansas. It is further found and determined that numerous national corporations are hindered in their operations in that they cannot have newly transferred managers or other key employees assume positions of responsibility within their local outlets since those persons do not meet the two (2) year residency requirement and that such requirement poses an unreasonable burden on the conduct of business in this state as it relates to alcohol beverage outlets. It is further found that the present process of applying for or renewing ABC licenses by requiring proof of payment of personal property taxes is cumbersome, unnecessary, and has no direct relationship to the operation of the ABC permitted outlet. It is further found and determined that there are presently numerous conflicting requirements which are applied to applicants for various retail licenses issued by the state ABC Division and that it is necessary and proper that such permit requirements be made uniform. That all of the aforementioned encumbrances are a burden on the transaction of commerce in the state and upon the efficient administration of government in the state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1991.”

Acts 1997, No. 519, § 5: Mar. 13, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that certain areas of the state are bombarded by continual applications for permits to sell alcoholic beverages after the permit has been denied; that subsequent applications are by persons or entities that were a real party in interest in the original application and that it is necessary to have a cooling-off period between applications in such instances; that it is necessary for the tranquillity and stability of those neighborhoods to modify the law to establish more reasonable application procedures; and that this act will accomplish that purpose and should go into effect as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2011, No. 70, § 4: Feb. 18, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act is necessary to prevent unfair competition; that this act is also necessary to ensure that those persons receiving retail liquor permits continue to abide by the spirit and intent of the law; and that this act is immediately necessary to ensure that, through the permitting process, citizens are protected from the illegal sale of alcoholic beverages. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Research References

U. Ark. Little Rock L.J.

Stafford, Separation of Powers and Arkansas Administrative Agencies: Distinguishing Judicial Power and Legislative Power, 7 U. Ark. Little Rock L.J. 279.

3-4-201. Number of permits restricted — Definition.

The public policy of the state is to restrict the number of permits in this state to dispense vinous (except small farm wines), spirituous, or malt liquor.
1. The Alcoholic Beverage Control Board shall determine whether public convenience and advantage will be promoted by issuing a permit and by increasing or decreasing the number of permits the board issues.
2. The number of permits issued by the board shall be restricted.
The board has the discretion to determine the number of permits to be granted in each county of this state or within the corporate limits of any municipality of this state and to determine the location and the persons to whom the permits shall be issued, under the following conditions:
1. The number of permits allowing the off-premises sale of vinous (except small farm wines), spirituous, or malt liquor in the State of Arkansas shall not exceed a ratio of one (1) permit for every seven thousand five hundred (7,500) population residing in the county or political subdivision of the county;
2. 1. The number of permits allowing the off-premises sale of vinous (except small farm wines), spirituous, or malt liquor in a county or political subdivision of the county that permits the sale shall not exceed a ratio of one (1) permit for every seven thousand five hundred (7,500) population residing in that county or political subdivision of the county.
  2. Population of the county or political subdivision of the county shall:
    1. Be determined according to the most recent federal decennial census; and
    2. Count all residents of the county or political subdivision of the county, including without limitation the residents of a dry political subdivision of a county;
3. A new permit that is issued in a county or political subdivision of the county following the most recent federal decennial census shall be issued under the following restrictions:
  1. Additional permits may be issued at a ratio of one (1) permit for every additional seven thousand five hundred (7,500) population within the county or political subdivision of the county; and
  2. 1. A qualified applicant may apply for a permit.
    2. Qualifications are to be set by the board and the board's determination of the public convenience and advantage;
4. 1. If it is determined that a county or political subdivision of the county is entitled to additional permits when warranted by the most recent federal decennial census, the board shall announce before the last date for applications the number of new permits, if any, that may be issued in the county or political subdivision of the county.
  2. In the event that the most recent federal decennial census population figures decline in a county or political subdivision of the county:
    1. Existing permits shall not be cancelled or revoked for the decline in population;
    2. The quota ratio shall not be applied to the county or political subdivision of the county until the population in the county or political subdivision of the county reaches a number equaling one (1) permit to every seven thousand five hundred (7,500) population; and
    3. A new permit shall not be issued in the county or political subdivision of the county until the population warrants.
  3. A transfer of locations from one county to another county is not allowed.
  4. If a holder of a permit for the sale of vinous (except small farm wines), spirituous, or malt liquor surrenders the permit in a county or political subdivision of the county where the ratio no longer meets the requirement of one (1) permit for every seven thousand five hundred (7,500) population, new applications shall not be accepted until that ratio is reestablished at a subsequent federal decennial census;
5. 1. 1. If a permit holder does not conduct business under a permit issued for a period of more than thirty (30) days, the permit shall be surrendered to the Director of the Alcoholic Beverage Control Division and shall be placed on inactive status.
    2. The permit may remain inactive for three (3) months.
  2. To secure the return of the permit, the permit holder shall file with the director a written statement showing:
    1. That all taxes and fees owing to the state have been paid;
    2. The reason for the suspension of business activities; and
    3. The date business activity will resume.
  3. 1. The permit holder may petition the board for an extension of inactive status for an additional three-month period.
    2. The board may grant an initial extension upon a showing by the permit holder and a finding by the board that:
      1. Business circumstances exist to justify an extension;
      2. The delay to return to business was not due to mere deferral or inattention on the part of the permit holder; and
      3. The inactive status should be extended.
    3. 1. The permit holder may appeal to the board for a second extension of inactive status for an additional six-month period, but only upon a showing by the permit holder and a finding by the board that emergency circumstances exist to justify a final extension.
      2. “Emergency circumstances” means delays in return to business that are beyond the control, planning, or foresight of the permit holder, including without limitation:
        
        A delay due to a natural or man-made disaster;
        
        The pending adjudication of a lawsuit;
        
        A building construction problem; and
        
        A contested or delayed insurance claim or settlement.
  4. A permit remaining on inactive status for a period of more than twelve (12) months or which has not been granted an extension under this subdivision (c)(5) shall expire; and
6. 1. This section and §§ 3-4-202 and 3-4-208, except with regard to a permit on inactive status for more than twelve (12) months after the provisions of subdivision (c)(5) of this section have become effective or a permit that has expired in accordance with subdivision (c)(5) of this section, do not divest any permit holder holding the permit on September 1, 2019, regardless of the quota ratio, of his or her permit.
  2. In a county or political subdivision of the county that has a ratio lower than the permit quota ratio of one (1) permit for every seven thousand five hundred (7,500) population, the permit holder shall be allowed to continue under subdivision (c)(4)(B) of this section.

History. Acts 1935, No. 108, Art. 3, § 1; 1937, No. 80, § 1; Pope's Dig., § 14106; Acts 1955, No. 360, § 1; 1983, No. 812, § 1; A.S.A. 1947, § 48-301; Acts 1991, No. 714, § 1; 1991, No. 1179, § 1; 1993, No. 779, § 2; 2013, No. 1068, § 1; 2019, No. 571, § 1.

Amendments. The 2013 amendment, in (a), deleted “It is declared to be” preceding “The public”, substituted “is to restrict” for “that”, inserted “small farm” preceding “wines”, and deleted “shall be restricted” following “liquor”; rewrote (b) and (c); and, in (d), deleted “The provisions of” preceding “This section” and inserted “small farm” preceding “wines”.

The 2019 amendment substituted “the board issues” for “it issues” in (b)(1); rewrote (c); deleted (d); updated internal references; and made stylistic changes.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

Case Notes

Constitutionality of Emergency Clause.

The effect of Acts 1983, No. 812 which amended this section was to establish a special privilege for people residing in the more populous counties, to the exclusion of others; therefore, the emergency clause appended to that act was unconstitutional under Ark. Const. Amend. 7, which prohibits emergencies in acts granting special privileges. Marshall v. Singleton, 282 Ark. 167, 666 S.W.2d 399 (1984).

Discretion of Board and Director.

Action of the Commissioner of Revenues (now the Alcoholic Beverage Control Board) in refusing to grant a retail permit in a certain area is discretionary and when not arbitrary or discriminatory cannot be controlled by mandamus. Hardin v. Cassinelli, 204 Ark. 1016, 166 S.W.2d 258 (1942).

The Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board are given broad discretionary powers to decide the number of permits and to issue them only when it is determined that public convenience and advantage would be promoted. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982); Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

The “public convenience and advantage” language of this section invests the Alcoholic Beverage Control Board with much discretionary leeway in deciding whether to approve an application for a transfer of a retail liquor outlet, and therefore where substantial evidence supports the board's decision, the Supreme Court must defer to the board's expertise and experience. Fayetteville School Dist. No. 1 v. ABC Bd., 279 Ark. 89, 648 S.W.2d 804 (1983).

Factors Considered.

Factors to be considered by the Alcoholic Beverage Control Board before issuing a permit to operate a private club include: (1) the number and types of alcoholic permits in the area; (2) economic impact; (3) traffic hazards; (4) remoteness of the area; (5) degree of law enforcement available; (6) input from law enforcement or other public officials in the area; and (7) comments from area residents in opposition or support of the permit. Moore v. King, 56 Ark. App. 21, 937 S.W.2d 677 (1997).

In finding that the area was adequately served by the existing liquor stores nearby, the board was entitled to rely on the opinion of area residents and public officials that the existing liquor stores already served the public convenience, obviating the need for another. Vallaroutto v. ABC Bd., 81 Ark. App. 318, 101 S.W.3d 836 (2003).

Grant or Denial of Permits.

The failure to grant any permits in a city during a period of 12 years was not in and of itself arbitrary, where there was no evidence to indicate that the board had systematically denied applications in the area or even that such applications had been made. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

Even if the board could or should have found that due to economic expansion an additional outlet was desirable, it was not required to grant a particular application for a specific location where the board found the location would disadvantage not only those utilizing the facility but the general public. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

Board's decision denying permit was supported by substantial evidence. Johnson v. Ark. ABC Bd., 6 Ark. App. 366, 642 S.W.2d 335 (1982).

There was substantial evidence to support board's action granting permit. Green v. Carder, 282 Ark. 239, 667 S.W.2d 660 (1984).

Denial of application upheld, where predicated on the fact that the proposed location was unsuitable for transfer of the liquor and beer permits. Edwards v. ABC Div. Bd., 307 Ark. 245, 819 S.W.2d 271 (1991).

Inactive Permits.

The 1993 amendment of this section set forth detailed procedures for the Alcoholic Beverage Control Board to use in handling inactive permits; nothing in the amendment is inconsistent with the implementation of ABC Reg. § 1.80. Blann v. ABC Bd., 317 Ark. 97, 876 S.W.2d 258 (1994).

New Permits.

The term “new permits” in subdivision (c)(2) of this section applies to a permit which increases the overall number of permits. Blann v. ABC Bd., 317 Ark. 97, 876 S.W.2d 258 (1994).

On-Premises Consumption.

Under this section no provision is made for dispensing liquors at retail for on-premises consumption and the issuance of such permits by the Alcoholic Beverage Control Board was unauthorized by law and invalid. Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969).

Public Convenience and Advantage.

There was not substantial evidence on the record to support a finding that the public convenience and advantage would not be served by issuance of retail liquor permit under this section. Snyder v. ABC Bd., 1 Ark. App. 92, 613 S.W.2d 126 (1981).

Mere numbers of persons being either for or against the issuance of retail liquor permits is of no significance under this section and is insufficient to allow the board to conclude that the granting of permits would not be to the public convenience and advantage. Stringfellow v. ABC Bd., 3 Ark. App. 124, 623 S.W.2d 213 (1981).

As security and public safety are factors to be considered in determining whether public convenience and advantage are to be promoted, the board properly considered testimony regarding the difficulty of police protection at a specific location. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

The words “public convenience and advantage” should not be restricted to a colloquial sense as synonymous with “handy or easy of access” but construed in that sense which connotes suitable and fitting to supply the public needs to the public advantage. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982); Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

The reference to the “public convenience and advantage” in this section means that the interest of the general public is to be considered, not merely that of the applicant. Fayetteville School Dist. No. 1 v. ABC Bd., 279 Ark. 89, 648 S.W.2d 804 (1983); Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

The number of persons who object to, or support, the issuance of retail liquor permits is not significant under the statute; the reasons for the support or opposition may be very significant. Ark. ABC Bd. v. Muncrief, 308 Ark. 373, 825 S.W.2d 816 (1992).

Rules and Regulations.

In a case where an application to operate a retail liquor store was conditionally granted, the Arkansas Alcoholic Beverage Control Board had the statutory authority to enact rules and regulations. Therefore, the board had the authority to impose conditions on the approval of applications. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Trial De Novo.

Former provision authorizing the circuit court in a trial de novo to redetermine or disregard the factual base upon which the Alcoholic Beverage Control Board relied to issue a liquor license was unconstitutional because such a trial sanctioned judicial encroachment into an area constitutionally reserved to the executive branch of government in the exercise of its executive discretion pursuant to this section. Goodall v. Williams, 271 Ark. 354, 609 S.W.2d 25 (1980).

Cited: Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982); Westerman v. Singleton, 9 Ark. App. 120, 653 S.W.2d 152 (1983); Marshall v. ABC Bd., 15 Ark. App. 255, 692 S.W.2d 258 (1985).

3-4-202. City and county licenses and taxes.

The Alcoholic Beverage Control Board in exercising its discretionary power shall give due regard to the ordinances and regulations of the counties and municipalities of this state.
All municipal corporations may license and tax the manufacture and sale of vinous (except wines), spirituous, or malt liquors by the permittees so authorized by the board. However, the municipal license fee shall not exceed an amount equal to one-half (½) of the license fee collected by the board for the State of Arkansas.
Nothing in this act shall be construed to prevent the county court from licensing the sale and manufacture of vinous (except wines), spirituous, or malt liquors by the permittees so authorized by the board, provided that the premises permitted are located outside the limits of a municipal corporation but within the county in which the county court is located. However, the license fee collected by the county court shall not exceed the amount equal to one-half (½) of the license fee collected by the board for the State of Arkansas.
No county license fee shall be collected from any permittee where the premises permitted are located within the limits of a municipal corporation.
No permittee shall be required to pay both a city and a county license fee for the same premises permitted by the board.
Nothing in this act shall be construed to prevent the prohibition of the manufacture and sale by means of local option elections as authorized by law.
1. The city clerk or county clerk charged with the duty of collecting the license fee shall notify the board of the identity of retailers failing to comply with the provisions of this section.
2. The board shall then notify wholesale dealers to discontinue sales to the delinquent retailers.
3. When the license fee is paid, the appropriate clerk shall notify the board that the retailer has paid the fee.
4. The board shall notify wholesalers to resume sales to the retailers.
5. Any wholesaler who continues to sell to a retailer after notification from the board to discontinue the sales shall be subject, upon conviction, to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
The provisions of this section shall apply only to applications for permits to dispense vinous (except wines), spirituous, or malt liquor filed with the board after July 4, 1983.

History. Acts 1935, No. 108, Art. 3, § 1; 1937, No. 80, § 1; Pope's Dig., § 14106; Acts 1955, No. 360, § 1; 1983, No. 812, § 1; A.S.A. 1947, § 48-301.

Publisher's Notes. For exclusion of wines, see Publisher's Notes to § 3-4-201.

Case Notes

Constitutionality of Emergency Clause.

The effect of Acts 1983, No. 812 which amended this section is to establish a special privilege for people residing in the more populous counties, to the exclusion of others; therefore, the emergency clause appended to that act is unconstitutional under Ark. Const. Amend. 7, which prohibits emergencies in acts granting special privileges. Marshall v. Singleton, 282 Ark. 167, 666 S.W.2d 399 (1984).

Cited: Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982); Westerman v. Singleton, 9 Ark. App. 120, 653 S.W.2d 152 (1983); Marshall v. ABC Bd., 15 Ark. App. 255, 692 S.W.2d 258 (1985).

3-4-203. [Repealed.]

Publisher's Notes. This section, concerning tax receipts as a prerequisite to issuance of a permit, was repealed by Acts 1991, No. 606, § 10. The section was derived from Acts 1959, No. 40, § 1; 1961, No. 172, § 1; A.S.A. 1947, § 48-344.

3-4-204. [Repealed.]

Publisher's Notes. This section, concerning when permits may not be issued, was repealed by Acts 2013, No. 527, § 3. The section was derived from Acts 1967, No. 336, § 1; A.S.A. 1947, § 48-310.1.

3-4-205. Interest in other permits prohibited — Exceptions.

For purposes of this section, the term “vested permits” is defined as those multiple retail liquor permits which were lawfully issued to any person, firm, or corporation prior to July 19, 1971.
1. 1. No retail liquor permit shall be issued, either as a new permit or as a replacement of an existing permit, to any person, firm, or corporation if the person, firm, or corporation has any interest in another retail liquor permit, regardless of the degree of interest.
  2. A retail liquor permit shall apply only to one (1) location, and a person, firm, or corporation shall not be permitted to receive any direct or indirect financial benefit from the sale of liquor at any location other than the permitted location.
2. However, notwithstanding this prohibition, any retail liquor permits held by any person, firm, or corporation on July 19, 1971, which continue to be held by any person, firm, or corporation having an interest in more than one (1) retail liquor permit on August 13, 1993, shall be vested permits.
1. Holders of vested permits may not sell, convey, assign, or devise any such interest in multiple retail liquor permitted businesses to any person or persons, firm, or corporation which, on the date of any such transfer, already has any ownership interest in a permitted retail liquor business.
2. However, holders of vested permits shall be allowed to sell, convey, assign, or devise any such interest in multiple retail liquor permitted businesses to any other person or persons, firm, or corporation, thereby creating an ownership interest in more than one (1) retail liquor permit to any such subsequent purchasers, assignees, or devisees without violating any of the provisions hereinabove.(d) A holder of a vested permit may brand each of the businesses that is operated under the vested permit with the same name or logo, or both.

History. Acts 1971, No. 106, § 2; A.S.A. 1947, § 48-310.2; Acts 1993, No. 433, § 1; 2011, No. 70, § 1; 2015, No. 1142, § 1.

Publisher's Notes. Acts 1993, No. 433, § 2 provided:

“It is the intent of this act to grant to those holders of vested multiple retail liquor permits the same rights and privileges as holders of single retail liquor permits regarding the sale, conveyance, assignment or devise of such permitted businesses.”

Amendments. The 2011 amendment added (b)(1)(B); and deleted “such” preceding “retail liquor permit” in (b)(2).

The 2015 amendment added (d).

Case Notes

Construction.

Supreme Court of Arkansas holds that, so long as the spouses sufficiently divest themselves of any interest in the other's permit, there is nothing in the current language of this section that automatically prohibits both partners in a marriage from holding separate liquor permits. Moore v. Ark. ABC Bd., 2016 Ark. 422, 503 S.W.3d 796 (2016).

Alcoholic Beverage Control Board's determination that this section was not violated by virtue of the competitor and her husband having independent interests in separate liquor permits was supported by substantial evidence. Moore v. Ark. ABC Bd., 2016 Ark. 422, 503 S.W.3d 796 (2016).

Divestment.

Competitor's testimony before the Alcoholic Beverage Control Board and the relinquishments she signed were substantial evidence that supported the Board's determination that she sufficiently divested herself of her interest in holdings that included a retail liquor permit so as not to run afoul of the requirements of this section. Moore v. Ark. ABC Bd., 2016 Ark. 422, 503 S.W.3d 796 (2016).

Lease Arrangement.

Competitor's lease arrangement with a building owned by a corporation in which her husband held an interest was not a basis to overturn the Alcoholic Beverage Control Board's decision granting the competitor a retail liquor permit. Even if the arrangement violated this section, the violation would have been on the part of the husband, not the competitor, as he was the one with the interest in the corporation that owned both the building and a separate liquor permit, and the competitor's and her husband's interests in their respective permits were separate. Moore v. Ark. ABC Bd., 2016 Ark. 422, 503 S.W.3d 796 (2016).

No Violation.

Where competitor challenged the transfer of a retail liquor permit, contending that the transferee held an interest in two permits at the same time in violation of this section, substantial evidence supported the finding that the transferee was qualified to replace the original permit holder; the transferee's original permit was only a conditional permit, he had never operated a liquor store under that permit, and he expressed his intention to contemporaneously relinquish that permit when the Board issued the subject permit. Gildehaus v. Ark. ABC Bd., 2016 Ark. 414, 503 S.W.3d 789 (2016).

Replacement Permits.

Transfer of a liquor permit covering one location to a permit covering a new location was held to be a violation of this section being, in effect, a replacement permit. Hewitt v. Gage, 257 Ark. 579, 519 S.W.2d 749 (1975).

3-4-206. Operation of retail liquor business near church or schoolhouse prohibited — Definitions.

As used in this section:
1. “Church” means a church and all immediately adjacent property owned or leased by the church that is used for church purposes; and
2. 1. “Schoolhouse” means:
    1. A facility owned and operated by a public or private school or an open-enrollment charter school; and
    2. A public or private daycare facility licensed by the State of Arkansas.
  2. “Schoolhouse” does not include a home school.
1. No new permit to engage in the retail liquor business in this state may be issued by the Director of the Alcoholic Beverage Control Division for the location of any business situated within one thousand feet (1,000') of any church or schoolhouse property line.
2. No existing permit to engage in the retail liquor business in this state may be transferred to a location within one thousand feet (1,000') of any church or schoolhouse property line.
3. The distance specified in subdivisions (b)(1) and (2) of this section shall be measured by nearest property line point to nearest property line point.
4. Subdivisions (b)(1) and (2) of this section apply only to an application for a new permit or the transfer of an existing permit filed with the Alcoholic Beverage Control Board after August 1, 2015.
If a preliminary inspection by personnel of the Alcoholic Beverage Control Division indicates that a proposed location for a retail liquor business appears from any point to be situated between nine hundred feet (900') and one thousand one hundred feet (1,100') of a church or schoolhouse property line, the permit applicant shall submit to the division a survey of the location performed by a licensed surveyor before a permit is issued for the retail liquor business.

History. Acts 1975, No. 699, § 1; A.S.A. 1947, § 48-345; Acts 2001, No. 1072, § 1; 2015, No. 1172, § 1; 2017, No. 491, § 1; 2019, No. 983, § 2.

Amendments. The 2015 amendment rewrote the section.

The 2017 amendment added (c).

The 2019 amendment added the (a)(1) designation; added (a)(2); and made stylistic changes.

Case Notes

Construction.

The language of this section is obviously applicable to the retail liquor business and complements § 3-4-604. When the two statutes are read together it is obvious that the legislature intended to prevent retail “package” stores from operating within 200 yards of a school or church building. Rowell v. Austin, 276 Ark. 445, 637 S.W.2d 531 (1982).

The word “church” means the place where a body of people or worshipers associate together for religious purposes; in a statute or regulation, the word is to be given its usual and ordinary meaning. Ark. ABC Div. v. Person, 309 Ark. 588, 832 S.W.2d 249 (1992) (decision under prior law).

Grant or Denial of Permit.

Fact that the Alcoholic Beverage Control Board granted a permit for another retail liquor business to locate within 200 yards of a church in violation of this section did not make the action of the board arbitrary when it refused to approve a similar location, since it is not arbitrary for a governmental agency to refuse to make the same error twice. Ark. ABC Div. v. Person, 309 Ark. 588, 832 S.W.2d 249 (1992).

Private Clubs.

The prohibition of this section would not apply to the transfer of a private club permit for dispensation of alcoholic beverages by the drink or in broken or unsealed containers for consumption on the premises. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Regulations may differentiate between “package” stores and private clubs. Ark. ABC Div. v. Person, 309 Ark. 588, 832 S.W.2d 249 (1992).

Waiver.

Waiver of this section by a church is ineffective since the section expresses the public policy of this state, and a waiver by a church congregation does not change the state's public policy. Ark. ABC Div. v. Person, 309 Ark. 588, 832 S.W.2d 249 (1992).

3-4-207. Ineligible persons.

The following persons described in this section shall not receive a permit under this title:

A person who has been convicted of an excluded felony;
A person under twenty-one (21) years of age;
A person who is not a citizen or resident alien of the United States;
A copartnership, unless all members of such copartnership are citizens or resident aliens of the United States;
A person who had his or her permit issued under this title revoked for cause or who has been convicted of a violation of this act until the expiration of two (2) years from the date of such revocation or conviction; or
A corporation or copartnership, if any of its officers or members have been convicted of a violation of this title or have had a permit issued under this title revoked for cause until two (2) years from the date of the conviction or revocation.

History. Acts 1935, No. 108, Art. 3, § 11; Pope's Dig., § 14115; Acts 1945, No. 239, § 1; A.S.A. 1947, § 48-314; Acts 1991, No. 606, § 1; 1995, No. 652, § 8; 2017, No. 739, § 2.

Publisher's Notes. Subdivision (1) of this section may be superseded by § 17-1-103 which provides for the removal of an automatic disqualification for criminal convictions in obtaining permits and licenses for professions, trades, or occupations.

Amendments. The 2017 amendment, in the introductory language, substituted “The following persons” for “No”, and substituted “not receive a permit under this title” for “receive a permit”; substituted “an excluded felony” for “a felony” in (1); substituted “title” for “act” in (5) and twice in (6); and deleted “shall have” following “person who” in (5).

Meaning of “this act”. See note to § 3-4-202.

3-4-208. Applications — Procedure for acceptance and determination.

Applications for new permits will be accepted by the Alcoholic Beverage Control Division after the publication of new census figures if the applications are warranted within a county or subdivision thereof.
When it has been determined that new applications are appropriate, the division shall notify the public at large by legal notice that it will be accepting applications for a particular county or political subdivision thereof.
Applications will then be accepted from the affected area beginning thirty (30) days after the date of publication, and no applications will be accepted after ninety (90) days of the publication date.
All applications received from the affected area will then be processed and set for an Alcoholic Beverage Control Board meeting. The board meeting shall not be earlier than one hundred fifty (150) days after the publication of the legal notice specified in subsection (b) of this section, nor later than one hundred eighty (180) days after publication.
No later than fifteen (15) days prior to the hearing, each applicant for a new permit or his or her agent will be allowed to draw a number between one (1) and a number equal to the number of applicants having filed. The drawing will be conducted by the Director of the Alcoholic Beverage Control Division. Position numbers may not be assigned or transferred.
At the meeting the applications will be heard in order of the numbers drawn. There will only be as many applications heard as will equal the number of new permits allowed in the county or subdivision thereof.
1. If the board finds that an applicant is qualified and that his or her proposed premises meet the public convenience and advantage of the area in question, then in that event the application will be approved.
2. No permit will issue earlier than thirty (30) days subsequent to the determination or until such time as the board determines it is necessary for final adjudication in the Arkansas courts, of any appeals arising out of such determinations, whichever is longer.
If the board has denied an application and the decision is not appealed or is upheld on appeal, then additional hearings will be held according to numbers already assigned in accordance with this section.
1. There shall be an initial application fee of two thousand dollars ($2,000). In the event an applicant is not successful in his or her application, one thousand dollars ($1,000) of that sum shall be refunded.

(j) The annual permit renewal fee for permits authorized by this section and §§ 3-4-201 and 3-4-202 will be the same as the renewal fee provided by § 3-4-604 and § 3-7-111(a)(1)(D), or any subsequent amendments thereto.

(k) The provisions of this section shall apply only to applications for permits to dispense vinous (except wines), spirituous, or malt liquor filed with the board after July 4, 1983.

History. Acts 1935, No. 108, Art. 3, § 1; 1937, No. 80, § 1; Pope's Dig., § 14106; Acts 1955, No. 360, § 1; 1983, No. 812, § 1; A.S.A. 1947, § 48-301.

Case Notes

Constitutionality of Emergency Clause.

Discretion of Board and Director.

Evidence.

Judging both the credibility of witnesses and the proper weight to be accorded evidence presented to the board is within the board's domain. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

While hearsay standing alone is not substantial evidence, it may be considered by the board in reaching its determination if supportive of other nonhearsay evidence. The weight to be given such evidence is for the board to determine. Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

Findings.

The board was not required to find that the issuance of a new permit would have an adverse effect on any existing permit; it was required to find only whether the issuance of the additional permit in this area would “promote the public convenience and advantage.” Carder v. Hemstock, 5 Ark. App. 115, 633 S.W.2d 384 (1982).

Grant or Denial of Permits.

Board's decision denying permit was supported by substantial evidence. Johnson v. Ark. ABC Bd., 6 Ark. App. 366, 642 S.W.2d 335 (1982).

There was substantial evidence to support board's action granting permit. Green v. Carder, 282 Ark. 239, 667 S.W.2d 660 (1984).

On-Premises Consumption.

Public Convenience and Advantage.

Rules and Regulations.

In a case where an application to operate a retail liquor store was conditionally granted, the Arkansas Alcoholic Beverage Control Board had the statutory authority to enact rules and regulations. Therefore, the board had the authority to impose conditions on the approval of applications. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Trial De Novo.

Cited: Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982); Westerman v. Singleton, 9 Ark. App. 120, 653 S.W.2d 152 (1983); Marshall v. ABC Bd., 15 Ark. App. 255, 692 S.W.2d 258 (1985).

3-4-209. Applications — Contents.

In addition to such other information as the Director of the Alcoholic Beverage Control Division may determine shall be furnished in any application for permits under this act, the following information shall be given under oath:

The name, age, and residence of each applicant and, if there are more than one (1) and they are partners, the partnership name and residence of the several persons so applying and the facts as to his or her or their citizenship;
The name and residence of each person interested, or to become interested, in the business of any permittee for which the application is made, together with the nature of the interests. If the applicant is a corporation, the application shall set forth the name of the corporation, the names of its directors or other governing body, the name of its president, and the state under the laws of which it is organized;
That the premises to be permitted is identified by stating the street and number, if the premises has a street and number, and otherwise such apt description as will reasonably indicate the locality. The applicant shall also state the name of any other person, either as principal or associate, interested with the applicant either in the premises or in the business to be permitted; and
A statement that the applicant has not been convicted of a felony and has not had a permit issued to him, her, or them under this act revoked for cause within five (5) years preceding the date of application.

History. Acts 1935, No. 108, Art. 3, § 7; Pope's Dig., § 14111; Acts 1945, No. 239, § 1; 1967, No. 239, § 1; 1973, No. 189, § 1; A.S.A. 1947, § 48-311; Acts 1991, No. 606, § 2; 2013, No. 325, § 2.

Publisher's Notes. Subdivision (4) of this section may be superseded as to felony convictions by § 17-1-103. See Publisher's Notes to § 3-4-207.

Amendments. The 2013 amendment substituted “president” for “officers” in the second sentence of (2).

Meaning of “this act”. See note to § 3-4-202.

Case Notes

Private Clubs.

This section does not apply to transfer of private club permits. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-4-210. Applications — Notice requirements.

1. 1. After filing an application with the Director of the Alcoholic Beverage Control Division and the acceptance of the application by the director, the applicant shall publish at least one (1) time a week for four (4) consecutive weeks in a legal newspaper of general circulation in the city or locality where the business is to be located a notice that the applicant has applied for a permit to sell alcoholic beverages at retail.
  2. The newspaper publishing the notice shall have a physical address within the county of the proposed location of the retail business identified in the application.
  3. If the county does not have a newspaper, then the publication shall be placed in a newspaper with the nearest physical address of the location of the retail business identified in the application.
2. The notice shall be in such form as the director shall prescribe by rule or order and shall be verified.
3. The notice shall give the names of the applicant and the business and shall state that the applicant is a resident of Arkansas, a citizen or resident alien of the United States, that he or she has good moral character, that he or she has never been convicted of a felony or had a license to sell alcoholic beverages revoked within the five (5) years preceding the date of notice, whether issued by this state or any other state, and that he or she has not been convicted of violating laws of this state or any other state governing the sale of alcoholic beverages within five (5) years preceding the date of the notice.
1. Within five (5) days after filing an application for a permit to sell alcoholic beverages at retail at any premises, a notice of the application shall be posted in a conspicuous place at the entrance to the premises.
2. The applicant shall notify the director of the date when notice is first posted.
3. No permit shall be issued to any applicant until proper notice has been posted on the premises for at least thirty (30) consecutive days.
4. 1. The notice shall be in such form as the director shall prescribe by rule or order.
  2. The notice shall be:
    1. At least eleven inches (11") in width and seventeen inches (17") in height; and
    2. Printed in black lettering on a yellow background.
1. Upon receipt by the director of an application for a permit, written notice thereof, which shall include a copy of the application, the application shall immediately be mailed by the director to the sheriff, chief of police, if located within a city, and prosecuting attorney of the locality in which the premises are situated, and to the city board of directors or other governing body of the city in which the premises are situated, if within an incorporated area.
2. No license shall be issued by the director until at least thirty (30) days have passed from the mailing by the director of the notices required by this section.

History. Acts 1935, No. 108, Art. 3, § 7; Pope's Dig., § 14111; Acts 1945, No. 239, § 1; 1967, No. 239, § 1; 1973, No. 189, § 1; A.S.A. 1947, § 48-311; Acts 1989, No. 297, § 2; 1991, No. 606, § 3; 1995, No. 652, § 11; 2007, No. 735, § 1; 2013, No. 292, § 1.

Publisher's Notes. Subdivision (a)(3) of this section may be superseded as to felony convictions by § 17-1-103. See Publisher's Notes to § 3-4-207.

Amendments. The 2007 amendment, in (a)(1), substituted “Director of the Alcoholic Beverage Control Division” for “director” and “four (4)” for “two (2)”; deleted “regulation” following “rule” in (a)(2) and (b)(4)(A); added (b)(4)(B) and made related changes; and inserted “the application” preceding “shall” in (c)(1).

The 2013 amendment redesignated former (a)(1) as (a)(1)(A); rewrote (a)(1)(A); and added (a)(1)(B) and (a)(1)(C).

Case Notes

Private Clubs.

This section does not apply to transfer of private club permits. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-4-211. Applications — Protests.

Upon receipt by the Director of the Alcoholic Beverage Control Division within thirty (30) days of a protest against issuance of a permit by a governing official of the city or county to whom the notice of an application for permit has been mailed, the director shall not issue the license until he or she has held a public hearing.

History. Acts 1935, No. 108, Art. 3, § 7; Pope's Dig., § 14111; Acts 1945, No. 239, § 1; 1967, No. 239, § 1; 1973, No. 189, § 1; 1981, No. 790, § 4; A.S.A. 1947, § 48-311; Acts 2007, No. 735, § 2.

Amendments. The 2007 amendment inserted “or she.”

Case Notes

Continuances.

The board's statutory duty to hold a public hearing under this section carries with it the implied authority to interrupt the hearing when it is reasonable to do so; accordingly, the board had the power to order a continuance on its own motion when an unforeseen question arose during the hearing. Fayetteville School Dist. No. 1 v. ABC Bd., 279 Ark. 89, 648 S.W.2d 804 (1983).

Private Clubs.

This section does not apply to transfer of private club permits. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-4-212. Applications — Denial.

On all permit applications and administrative applications processed by the Alcoholic Beverage Control Division, in the event that any such application is denied, one-half (½) of the stated amount of fee will be retained by the State of Arkansas to cover the costs of investigation and administrative processing of applications.
The remainder will be refunded to the applicant pursuant to established administrative procedures.

History. Acts 1983, No. 675, § 5; A.S.A. 1947, § 48-311.1.

3-4-213. Applications — Appeals.

Any appeal from an order of the Director of the Alcoholic Beverage Control Division or the Alcoholic Beverage Control Board shall be made to the circuit court of the county in which the premises are situated or the Pulaski County Circuit Court. Appeals shall be governed by the terms of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1935, No. 108, Art. 3, § 7; Pope's Dig., § 14111; Acts 1945, No. 239, § 1; 1967, No. 239, § 1; 1973, No. 189, § 1; 1981, No. 790, § 4; A.S.A. 1947, § 48-311.

Case Notes

Constitutionality.

Former provision of this section authorizing the circuit court in a trial de novo to redetermine or disregard the factual base upon which the Alcoholic Beverage Control Board relied to issue a liquor license was unconstitutional because such a trial sanctioned judicial encroachment into an area constitutionally reserved to the executive branch of government in the exercise of its executive discretion pursuant to §§ 3-4-201, 3-4-202, and 3-4-208. Goodall v. Williams, 271 Ark. 354, 609 S.W.2d 25 (1980) (decision prior to 1981 amendment).

Private Clubs.

This section does not apply to transfer of private club permits. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-4-214. Contents of permits.

A permit shall contain, in addition to any further information or material to be prescribed by the rules of the Alcoholic Beverage Control Division, the following:

The name of the person to whom the permit is issued;
The kind of permit and what kind of traffic in vinous or spirituous or malt liquors is thereby permitted;
A description by street and number or otherwise of the permitted premises;
A statement in substance that the permit shall not be deemed a property or vested right and that it may be revoked at any time pursuant to law; and
The name and address of the owner of the premises. Upon a change in the ownership, the permittee or the new owner may file notice to that effect in writing with the Director of the Alcoholic Beverage Control Division on forms to be provided by the director for that purpose.

History. Acts 1935, No. 108, Art. 3, § 9; Pope's Dig., § 14113; Acts 1953, No. 49, § 1; A.S.A. 1947, § 48-313; Acts 2019, No. 315, § 46.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the introductory language.

3-4-215. [Repealed.]

Publisher's Notes. This section, concerning notice when permit issued, was repealed by Acts 1995, No. 652, § 9. The section was derived from Acts 1935, No. 108, Art. 3, § 9; Pope's Dig., § 14113; Acts 1953, No. 49, § 1; A.S.A. 1947, § 48-313.

3-4-216. Renewal.

All permits issued by the Alcoholic Beverage Control Division authorizing the dispensing, sale, or manufacture of alcoholic beverages are renewable on or before June 30 of each calendar year for the fiscal year beginning July 1.
Any person holding a permit who desires to renew the permit after June 30 shall be required to pay a late renewal penalty in the amount of one half (½) of the required yearly renewal fee for the permit for each sixty-day period, or any portion thereof, after June 30, wherein the renewal is tendered, in addition to the amount of the yearly fee.
Division permits may be renewed late by paying the stated penalty beginning July 1 and ending October 28 of each fiscal year.
No permit shall be renewed by the division for the current fiscal year after October 28.
No permit or license issued by the Alcoholic Beverage Control Board to sell intoxicating liquor, beer, or any other form of alcoholic beverage shall be renewed by the division for a permit or license holder who is delinquent more than ninety (90) days on any alcoholic beverage sales tax, excise tax, supplemental mixed drink tax, or any other taxes relating to the sale or dispensation of alcoholic beverages, or any state and local gross receipts or compensating use taxes.

History. Acts 1983, No. 420, § 1; A.S.A. 1947, § 48-313.1; Acts 1989, No. 300, § 1; 1993, No. 779, § 3; 1997, No. 1010, § 1; 1997, No. 1060, § 1; 1999, No. 319, § 1.

3-4-217. Transfer or assignment.

No permit shall be transferable or assignable.
No permit shall be pledged or deposited as collateral security for any loan or upon any other condition. Any pledge or deposit and any contract providing therefor shall be void.
A permit issued to any person, pursuant to this chapter, for any premises shall not be transferable to any other person or to any other premises or to any other part of the building containing the permitted premises. It shall be available only to the person therein specified and only for the premises permitted and no other.

History. Acts 1935, No. 108, Art. 3, §§ 8, 9; Pope's Dig., §§ 14112, 14113; Acts 1953, No. 49, § 1; A.S.A. 1947, §§ 48-312, 48-313.

Case Notes

Actions of Board.

This section is a restriction on the permittee and not on any subsequent actions by the Alcoholic Beverage Control Board. Smith v. Estes, 259 Ark. 337, 533 S.W.2d 190 (1976).

Sale of Premises.

Although a permit is not transferable or assignable, a contract for the sale of a liquor store to nonresident purchasers was not illegal where purchasers knew at the time of the purchase that as nonresidents a liquor permit could not be transferred or issued to them. Smith v. Ferguson, 302 Ark. 388, 790 S.W.2d 162 (1990).

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-4-218. Permits restricted to permitted premises.

1. No new liquor permits shall be issued to nor shall any outstanding liquor permit be transferred to any person, firm, or corporation by the Alcoholic Beverage Control Division wherein the permitted premises of the liquor permittee is operated as a part of the profit-making business of any drug, grocery, sporting goods, dry goods, hardware, or general mercantile store.
2. However, the permittee may have tobacco products, mixers, soft drinks, consumables and edible products that complement alcoholic beverages, and other items customarily associated with the retail package sale of the liquors.
3. The division shall promulgate rules to facilitate the sale of complementary products under subdivision (a)(2) of this section.
However, this restriction shall not prohibit the transfer of a permit by the division resulting from the sale of a business for which a permit was issued on or before February 18, 1971.
It is further provided that in any instance where a retail liquor permit was issued after February 18, 1971, and the permitted premise is located outside an incorporated city or town and is located within five (5) miles of two (2) other liquor stores that were grandfathered in under the provisions of subsection (b) of this section, with each of the other stores being on either side of the newer liquor store, further where the newer liquor store and one (1) of the grandfathered liquor stores are both located in the same county and the second grandfathered liquor store is located in an adjoining county, and further where all three (3) subject liquor stores are located within one (1) mile of a federal interstate highway, then the middle liquor store may be considered as a grandfathered liquor store on the same basis as its competitors and may sell items which would not ordinarily be allowed if the permit were granted after February 18, 1971.
The holder of a retail liquor permit, as defined in § 3-4-604, which is located in any city having a population of less than six hundred (600) persons and in a county having a population of less than sixteen thousand (16,000) persons according to the 2000 Federal Decennial Census and within three (3) miles of a river that serves as a common boundary between that county and another state shall be entitled, in addition to other privileges inherent under the permit, to sell food prepared on the licensed premises for off-premises consumption.
1. A retail liquor permit issued under this subchapter is restricted to the location identified in the application required under § 3-4-209(3).
2. A retail liquor permit shall not be used for multiple locations.

History. Acts 1971, No. 106, § 3; 1977, No. 798, § 1; A.S.A. 1947, § 48-310.3; Acts 1999, No. 1594, § 1; 2003, No. 848, § 1; 2007, No. 457, § 1; 2011, No. 70, § 2; 2017, No. 508, § 1.

Amendments. The 2007 amendment added (d), and made a stylistic change in (c).

The 2011 amendment added (e).

The 2017 amendment inserted “consumables and edible products that complement alcoholic beverages” in (a)(2); and added (a)(3).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Alcoholic Beverages, 26 U. Ark. Little Rock L. Rev. 349.

Case Notes

Standing.

Liquor store retailers' association had standing under § 25-15-212(a) to challenge a decision of the Arkansas Alcoholic Beverage Control Board, which granted permits to a department store, based on the association's claims of disparate treatment under this section and its members' inability to compete on an equal basis with the store. Ark. Bev. Retailers Ass'n v. Moore, 369 Ark. 498, 256 S.W.3d 488 (2007).

Transfer of License.

Trial court properly upheld a decision granting an applicant's request to transfer a retail liquor license from another business to the applicant's location because the applicant's sales would be limited to the separate premises of its store, even though it was a subsidiary of an adjoining warehouse club; the application of subdivision (a)(1) of this section was not clearly wrong. Ark. Bev. Retailers Ass'n v. Langley, 2009 Ark. 187, 305 S.W.3d 427 (2009).

Cited: Vallaroutto v. ABC Bd., 81 Ark. App. 318, 101 S.W.3d 836 (2003).

3-4-219. Fees — Duration.

Applications for permits shall be made for issuance only on January 1 or July 1 of each year.
Licenses issued as of January 1 will require the payment of one-half (½) the annual permit fee and the amount shall attach and operate as a lien as set forth in subsection (e) of this section at the time the permit is issued.
Each permit shall be issued for an indeterminate period, and the permit fees prescribed by the provisions of this act shall be paid annually in advance on or before June 30 of each calendar year for the fiscal year beginning July 1.
Each permit issued pursuant to this act shall remain valid until revoked or suspended so long as the prescribed annual permit fee shall be paid as required by law.
All permit or license fees shall attach to and operate as a lien on the property, on and in the permitted premises or elsewhere, belonging to the person from whom such fees are due.

History. Acts 1935, No. 108, Art. 3, § 9; Pope's Dig., § 14113; Acts 1953, No. 49, § 1; 1983, No. 420, § 1; A.S.A. 1947, §§ 48-313, 48-313.1.

Meaning of “this act”. See note to § 3-4-202.

3-4-220. Duplicate permits.

Whenever a permit shall be lost or destroyed without fault on the part of the permittee or his or her agents or employees, a duplicate permit in lieu thereof may be issued by the Director of the Alcoholic Beverage Control Division in his or her discretion and in accordance with its rules, on payment of a fee of five dollars ($5.00).

History. Acts 1935, No. 108, Art. 3, § 20; Pope's Dig., § 14125; A.S.A. 1947, § 48-320; Acts 2019, No. 315, § 47.

Amendments. The 2019 amendment deleted “and regulations” following “rules”.

3-4-221. Transfer of permitted location.

The Alcoholic Beverage Control Board shall not authorize the transfer of a permit to dispense vinous (except small farm wines), spirituous, or malt liquor from one location to another location within a city or town located within a county having a population of two hundred thousand (200,000) or more persons, according to the most recent federal decennial census, if the transfer of the permit to a location in the city or town will result in there being more than one (1) permitted location in the city or town for every seven thousand five hundred (7,500) population in the city or town, according to the most recent federal decennial census.

History. Acts 1995, No. 861, § 1; 2013, No. 1068, § 2; 2019, No. 571, § 2.

Amendments. The 2013 amendment inserted “small farm” preceding “wines”, substituted “a location to another location” for “any location to a location”, and “five thousand (5,000)” for “four thousand (4,000)”.

The 2019 amendment substituted “one location” for “a location”; substituted “city or town for every seven thousand five hundred (7,500) population” for “city or town for each five thousand (5,000) population”; and made a stylistic change.

3-4-222. Reapplication.

1. Whenever any application for any type of alcoholic beverage control permit with the exception of a private club permit being sought in an area in which the sale of alcoholic beverages is not allowed shall be denied, no application for a permit shall be accepted from that same applicant or real party in interest for a period of one (1) year following the date on which such application is finally acted upon by the Director of the Alcoholic Beverage Control Division, by the Alcoholic Beverage Control Board on appeal, or by the appellate court system, unless the applicant or real party in interest can show a substantial change in the underlying facts which supported the decision to deny the application.
2. Provided, this subchapter shall not apply if the application was denied solely because of disapproval of the location of the premises and if a new application is for a premises other than that described in the original application.
3. “Same applicant” or “same real party in interest” as used in this subsection (a) shall be broadly interpreted by the director or the board to be the real party or parties in interest in the original application notwithstanding the fact that the subsequent application may be made in the name of a family member, business associate, or new business entity.
Reapplication for a private club in an area where the retail sale of alcoholic beverages is not legal will continue to be controlled by § 3-9-228.

History. Acts 1997, No. 519, § 1; 1999, No. 1593, § 1.

3-4-223. Diversity in ownership and financial interest.

When issuing a permit under Title 3 of the Arkansas Code, the Alcoholic Beverage Control Division shall consider lack of diversity in ownership and financial interest in the geographic area at issue in the permit application.

History. Acts 2005, No. 2323, § 1.

Subchapter 3 — Revocation

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Procedure for revocation and suspension of licenses, §§ 3-2-212 — 3-2-217.

Acts 1969, No. 221, § 4: Mar. 10, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that many retailers are in arrears in the payment of the Arkansas Gross Receipts Tax, the franchise tax, or the special 3% Alcoholic Beverages Excise Tax and that the State Revenue Department is unable to collect such taxes; that at present there is no method for effectively collecting such taxes from such retailers; and that in order to correct this situation, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall become effective from and after its passage and approval.”

Case Notes

Abatement of Nuisances.

State was not precluded from proceeding to abate defendant's liquor store as a public nuisance because other methods outlined under the Arkansas Alcoholic Control Act such as the revocation of the defendant's liquor license or the holding of a local option, might have been followed. Click v. State, 206 Ark. 648, 176 S.W.2d 920 (1944).

3-4-301. Grounds for revocation.

Any permit issued pursuant to this act may be revoked for cause and must be revoked for the following causes:
1. Conviction of the permittee or his or her agent or employee for selling any illegal beverages on the premises permitted;
2. For making any false material statement in an application for a permit;
3. If, within a period of two (2) years, there shall have been two (2) convictions for any violation of this act by a permittee, or two (2) convictions of any of his or her clerks, agents, employees, or servants of any violation of this act on the premises permitted;
4. For transferring, assigning, or hypothecating a permit;
5. Violating the provisions of § 3-1-103(c) which shall cause a forfeiture of the permit of all parties to the violation;
6. For selling or agreeing to sell any spirituous, vinous, or malt liquors to a wholesaler, rectifier, or dispensary who is not permitted at the time of the agreement and sale to receive, store, transport, sell, and dispense same under the provisions of this act;
7. For failure or default of a permittee to pay any license or permit tax or any part thereof or penalties imposed by this act and for a violation of any rule of the Secretary of the Department of Finance and Administration or the Director of the Alcoholic Beverage Control Division in pursuance thereof;
8. If a retail liquor permitee directly or indirectly remunerates any person, firm, or corporation that has a direct or indirect pecuniary, proprietary, or financial interest in the creation, establishment, operation, or contractual branding of another permitted liquor establishment;
9. If a retail liquor permitee directly or indirectly receives remuneration from any other retail liquor permitee relating to the creation, establishment, operation, or contractual branding of another permitted liquor establishment; or
10. Except for a holder of a vested permit, if a retail liquor permitee brands the permitted location with the same name or logo as another retail liquor permitee.
1. Whenever any person holding a retailer's permit to sell and dispense vinous or spirituous liquors for beverage purposes at retail shall fail to pay any Arkansas gross receipts tax, franchise tax, or the three percent (3%) special alcoholic beverage excise tax within sixty (60) days after the taxes become due, the secretary shall notify the Alcoholic Beverage Control Board of that fact and the board shall immediately revoke such permit.
2. It shall be unlawful for the board or any person to restore or issue a retailer's permit to any person whose permit has been revoked under the provisions of this subsection within two (2) years from the date of the revocation.

History. Acts 1935, No. 108, Art. 3, § 13; Pope's Dig., § 14117; Acts 1969, No. 221, § 1; A.S.A. 1947, §§ 48-316, 48-316.1; Acts 2011, No. 70, § 3; 2015, No. 1142, § 1[2]; 2019, No. 910, §§ 3306, 3307.

Amendments. The 2011 amendment added (a)(8)–(10).

The 2015 amendment substituted “If” for “Subsequent to March 1, 2011, if” in (a)(8) and (9); and substituted “Except for a holder of a vested permit” for “Subsequent to March 1, 2011” in (a)(10).

The 2019 amendment substituted “Secretary” for “Director” in (a)(7) and (b)(1).

Cross References. Revocation for misstatement or concealment of fact in beer license application, § 3-5-303.

Case Notes

Constitutionality.

State's authority to revoke a license to sell liquor does not violate any constitutional rights of a permittee because the license is a privilege and not a contract with the state to which property rights inure; the license is a privilege to do what would otherwise be a violation of criminal law and is not a matter of right but of legislative grace. Blum v. Ford, 194 Ark. 393, 107 S.W.2d 340 (1937).

Appeals.

The Commissioner of Revenues (now the Director of Alcoholic Beverage Control Division), after he has made an investigation which shows a violation of the law, may cancel a permit, but he cannot do so arbitrarily, and the dealer may appeal his action. Blum v. Ford, 194 Ark. 393, 107 S.W.2d 340 (1937).

Court to which a dealer appeals from order revoking his permit has duty to hear the evidence, and if this is not sufficient to show a violation of the law, it should restrain the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) from cancelling the permit. Blum v. Ford, 194 Ark. 393, 107 S.W.2d 340 (1937).

False Statements.

Although the Arkansas Alcoholic Beverage Control Board lacked authority to revoke a permit under this section for making false material statements in an application since a permit had never been issued, there was substantial evidence that the applicant failed to meet the conditions attached to the granting of his permit within 12 months. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Competitor's argument was rejected that the transferee of a retail liquor permit made a materially false statement in his application when he indicated that he owned the property where the liquor store would be operated; the Alcoholic Beverage Control Board deemed his explanation for renting the property rather than owning it credible. Gildehaus v. Ark. ABC Bd., 2016 Ark. 414, 503 S.W.3d 789 (2016).

Granting Permit Required.

In a case where an application for a retail liquor store was conditionally granted, an appellate court did not consider whether the Arkansas Alcoholic Beverage Control Board had the authority to revoke a permit and whether it complied with revocation procedures because no permit had ever been granted. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

Sale of Premises.

Although a permit may be revoked for a transfer or assignment thereof, a contract for the sale of a liquor store to nonresident purchasers was not illegal where purchasers knew at the time of the purchase that as nonresidents a liquor permit could not be transferred or issued to them. Smith v. Ferguson, 302 Ark. 388, 790 S.W.2d 162 (1990).

Violation of Law.

If the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) knows or discovers by investigation that law is being violated by person having a permit, he has not only the authority but the duty to revoke or cancel the permit. Blum v. Ford, 194 Ark. 393, 107 S.W.2d 340 (1937).

The Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) had power to cancel retail liquor license for violations of statutes where permittee sold liquor for consumption in the state upon which the export tax but not the retail tax had been paid, without the necessity of a conviction through prosecution in the courts. Whitmore v. McCarroll, 198 Ark. 211, 128 S.W.2d 244 (1939).

3-4-302. Statement of causes of revocation.

There shall be printed and furnished by the Director of the Alcoholic Beverage Control Division to each permittee a statement of the causes for which permits may be revoked under law.
The statement shall be prepared by the director and delivered to the permittee with his or her permit or as soon as may be practicable thereafter.
Any amendments therein shall also be sent by the director to all permittees as soon as may be practicable after the amendment.
Failure to send the statement or changes therein, or failure to receive them, or any misstatement or error contained in the statement or amendments shall, however, not be an excuse or justification for any violation of law or prevent or remit or decrease any penalty or forfeiture therefor.

History. Acts 1935, No. 108, Art. 3, § 9; 1953, No. 49, § 1; A.S.A. 1947, § 48-313.

3-4-303. Notice — Surrender of permit.

1. Within three (3) days after a permit shall have been revoked, notice thereof shall be given to the permittee by mailing the notice addressed to him or her at the premises permitted.
2. Notice shall also be mailed to the owner of the premises permitted.
The holder of the permit shall thereupon surrender the permit to the Director of the Alcoholic Beverage Control Division.
The mailing of the permit by the permittee to the director by registered mail or insured parcel post shall be deemed sufficient compliance with this provision.
1. The director, immediately upon notice of revocation, shall serve a written notice thereof upon the chief of police or chief police officer and the city clerk of the city or town in which the premises for which the revoked permit was issued is situated, or upon the sheriff of the county in case the permit was issued for premises situated outside a city or town.
2. This notice shall include a statement of the number of the permit, the name and place of residence of the holder, the location of the permitted premises, and the date when the permit was revoked.
In case the permit is not immediately surrendered, the director shall issue a written demand for the surrender of the permit and deliver the demand to the sheriff of the county in which the permitted premises are located or to any Alcoholic Beverage Control Enforcement Division agent. The sheriff or division agent shall immediately take possession of the permit and return the permit to the director.

History. Acts 1935, No. 108, Art. 3, § 15; Pope's Dig., § 14119; A.S.A. 1947, § 48-318.

Subchapter 4 — Violations

Cross References. Prohibited practices, § 3-3-101 et seq.

Effective Dates. Acts 2009, No. 294, § 30: Mar. 3, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that on-premises consumption outlets in the State of Arkansas are not able to compete on an equal and similar basis with outlets located in states surrounding the State of Arkansas; that the State of Arkansas is in need of additional revenues; that only minor adjustments to the violation fine schedule have been made since its passage in 1981; and that this act is immediately necessary to raise additional revenues and to better address violations committed by Alcoholic Beverage Control Division permit holders. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2009, Nos. 605 and 606, § 27: Mar. 25, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the people of the State of Arkansas overwhelmingly approved the establishment of lotteries at the 2008 General Election; that lotteries will provide funding for scholarships to the citizens of this state; that the failure to immediately implement this act will cause a reduction in lottery proceeds that will harm the educational and economic success of potential students eligible to receive scholarships under the act; and that the state lotteries should be implemented as soon as possible to effectuate the will of the citizens of this state and implement lottery-funded scholarships as soon as possible. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

3-4-401. Authorization to impose fines.

In addition to all other sanctions and penalties which may be administratively imposed by the Director of the Alcoholic Beverage Control Division pursuant to the procedures outlined in this title and the Arkansas Administrative Procedure Act, § 25-15-201 et seq., the director shall have the power and authority to levy fines and suspend them against controlled beverage permit holders when the director determines the permit holder has violated the alcoholic beverage control laws of this state or rules of the Alcoholic Beverage Control Division.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346; Acts 2019, No. 315, § 48.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

3-4-402. Classes of violations and fines — Multiple offenses.

The following classes of alcoholic beverage control permit violations and fines are authorized to be levied and are established:
1. Class A permit violations: Five hundred dollars ($500) to one thousand dollars ($1,000);
2. Class B permit violations: Two hundred dollars ($200) to five hundred dollars ($500); and
3. Class C permit violations: One hundred dollars ($100) to two hundred dollars ($200).
The Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board are hereby authorized to levy additional fines up to double the amount for the classes of violations found in subsection (a) of this section for a second offense of the same violation within a twelve-month period, and up to three (3) times the fines authorized for the classes listed in subsection (a) of this section for a third offense of the same violation within a twelve-month period.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346; Acts 1989, No. 296, § 1; 1993, No. 172, § 1.

3-4-403. Class A permit violations.

The following acts on the part of any permittee are Class A permit violations:

Failure to furnish access to premises by any law enforcement officer or any authorized Alcoholic Beverage Control Division personnel or failure to cooperate or take reasonable action to assist any such law enforcement officers or authorized division personnel who are on the permitted premises in the performance of their duties;
Failure to allow inspection of books or records;
Posting permit on unauthorized premises;
Manufacture or possession of controlled beverage with excess alcoholic content;
Sale by a manufacturer to other than a wholesaler. Provided, sales authorized by any law of the state relating to native wines shall not constitute a violation;
Sale by a wholesaler to other than a retailer;
Ownership or other interest in retail outlet by a manufacturer or a wholesaler. Provided, that such ownership or other interest authorized by any law of this state relating to native wines shall not be a violation;
Unauthorized gift or service to retailers by a manufacturer or a wholesaler;
Use of post-dated checks for payment of controlled beverages and merchandise;
Wholesaler making delivery to a consumer;
The permittee possessed or knew or reasonably should have known that any agent or employee or patron of the establishment possessed on the permitted premises any illegal drug or narcotic or controlled substance or that any agent or employee while acting on the permittee's behalf knowingly allowed the possession on the permitted premises of any illegal drug or narcotic or controlled substance;
Selling or allowing the consumption of alcoholic beverages on the permitted premises when the permit is suspended or on inactive status;
Selling to minors;
Unauthorized employment of a minor;
1. Disorderly conduct or a breach of the peace by a patron or employee on the permitted premises.
2. As used in subdivision (15)(A) of this section, “disorderly conduct” includes without limitation a fight, brawl, or disturbance that results in bodily injury to a person on the permitted premises;
Violation of § 3-3-218;
Selling to an intoxicated person;
Unauthorized manufacturing, selling, offering, dispensing, or giving away of controlled beverages;
1. Conducting or permitting gambling on premises.
2. Conducting or permitting gambling under subdivision (19)(A) of this section does not include:
  1. Charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
  2. A lottery under the Arkansas Scholarship Lottery Act, § 23-115-101 et seq.;
Violation of legal closing hours; and
1. Possession of a weapon on the permitted premises by a person without a possessory or proprietary interest in the permitted premises.
2. When the permitted premises is a retail liquor store that sells alcoholic beverages for off-premises consumption, an employee of the retail liquor store that is licensed to carry a concealed handgun by the state may possess a handgun on the permitted premises if the possession of the handgun is permitted under state law.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346; Acts 1991, No. 605, § 1; 1993, No. 172, § 2; 2009, No. 294, § 4; 2009, No. 605, § 9; 2009, No. 606, § 9; 2013, No. 760, § 1.

A.C.R.C. Notes. Acts 2009, Nos. 605 and 606, § 9, amended § 3-4-404(21) to add exemptions to the Class B violation of conducting or permitting gambling on premises for charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, § 23-114-01 et seq. and a lottery under the Arkansas Scholarship Lottery Act, § 23-115-101 et seq. However, Acts 2009, No. 294 §§ 4 and 5, transferred the gambling violation from § 3-4-404 to § 3-4-403(19) and made it a Class A violation. As a result, Acts 2009, Nos. 605 and 606, § 9, are codified as § 3-4-403(19)(B).

Amendments. The 2009 amendment by No. 294 added (13) through (21) and made related changes.

The 2009 amendment by identical acts Nos. 605 and 606 inserted (19)(B).

The 2013 amendment added (21)(B) and the (A) designation.

3-4-404. Class B permit violations.

The following acts on the part of the permittee are Class B permit violations:

Pledge, hypothecation, or use of a permit as collateral;
Defacing, destroying, or altering a permit;
Transporting controlled beverages in violation of rules or law;
Manufacturing, selling, offering, dispensing, or giving away, possessing, or transporting controlled beverages upon which tax is not paid;
Failure to maintain proper records by a manufacturer;
Failure by a wholesaler to maintain proper records;
Failure by a wholesaler to register new brands;
Giving samples without authorization;
Sales for anything other than cash or check;
Delivery without an invoice by a wholesaler;
Selling to the insane;
Selling to bootleggers;
Accepting food stamps in payment for controlled beverages;
Unlawful manufacture or sale in a dry area; and
Sale of controlled beverages by vending machine.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346; Acts 1991, No. 605, § 2; 1993, No. 172, § 3; 2009, No. 294, § 5; 2009, No. 605, § 9; 2009, No. 606, § 9; 2019, No. 315, § 49.

Amendments. The 2009 amendment by No. 294 deleted (11), (15) through (19), (21), (22), and (24), redesignated the remaining subdivisions accordingly, and made related changes.

The 2009 amendment by identical acts Nos. 605 and 606 inserted (21)(B), redesignated the remaining text accordingly, and made a related change.

The 2019 amendment substituted “rules” for “regulations” in (3).

3-4-405. Class C permit violations.

The following acts on the part of any permittee are Class C permit violations:
1. Sale of controlled beverages when the permit is not posted;
2. Failure to maintain health, safety, and sanitary standards;
3. Removing or obliterating a container label or mark;
4. Consuming a controlled beverage while on duty;
5. Failure to surrender a permit when the business has been voluntarily inoperative for over thirty (30) days;
6. Storing controlled beverages in unauthorized warehouses, with each day constituting a separate offense after notice;
7. Failure to make proper application and obtain approval for acting as a sales agent for a manufacturer, wholesaler, or rectifier unless duly authorized by the Director of the Alcoholic Beverage Control Division;
8. Use of an unlabeled dispensing faucet;
9. Failure of a retailer to keep and maintain records;
10. Unauthorized sale of broken packages and merchandise;
11. Negligently allowing prostitutes to frequent the premises;
12. Allowing immoral conduct on the premises;
13. Disposing of or receiving samples by a retailer;
14. Negligently selling to users of narcotics;
15. Delivery of controlled beverages by a retailer away from his or her permitted premises;
16. Sale of controlled beverages in a container or of a size other than that approved;
17. Misrepresentation of a brand, or keeping beverages in an unauthorized container, or refilling, diluting, or failing to destroy empty bottles;
18. Failure to maintain membership books or properly maintain guestbooks by a private club;
19. Allowing an unauthorized guest in a private club;
20. Dispensing to nonmembers or nonguests by a private club;
21. Unauthorized purchasing by a private club from other than a retailer;
22. Failure of a private club to maintain financial records;
23. Failure by a private club to furnish the name and address of the authorized public accountant and bookkeeper;
24. Unauthorized advertising by a private club;
25. Unauthorized transportation of alcoholic beverages through a dry area without a permit; and
26. Failure to keep and maintain records or make a report.
Any other act that is determined at an appropriate hearing by the director to be a violation will be considered a Class C permit violation and may be fined accordingly.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346; Acts 1991, No. 605, § 3.

3-4-406. Failure to pay invoices.

The Alcoholic Beverage Control Division is authorized to maintain a list of permit holders who have failed to pay invoices forwarded by persons holding wholesale liquor permits as issued by the division.
Failure to pay an invoice shall not constitute an administrative violation per se, and the list shall be maintained for such purposes as the division shall determine.

History. Acts 1981, No. 790, § 7; A.S.A. 1947, § 48-347.

3-4-407. Violation of local closing hours laws.

The General Assembly, by legislation, and the Alcoholic Beverage Control Division, by rule, have created general closing hours for establishments which sell or dispense alcoholic beverages. However, the General Assembly and the division have also given the power to local city governments or local county quorum courts to adopt hours of operation which are more restrictive than the general hours of operation stated for certain permits issued by the division. It is recognized that it is more convenient for local authorities to change local ordinances on a basis that can be more frequent than the basis with which the General Assembly meets or the division adopts rules. For that reason, local control of these issues, as allowed by Code sections and regulations, is desirable. It is also recognized that when a city or county adopts a more restrictive law in this area it is unnecessary and burdensome for the city or county to notify the division each time that a modification is made to local laws, and for this reason enforcement of more restrictive ordinances should be by local law enforcement personnel who are attached to the jurisdiction which creates the more restrictive hours-of-operations law.
It is hereby provided that when any permittee of the division is cited with a violation of any local closing hour ordinance adopted by a city government or a county government, that violation of an ordinance which is more restrictive than provided for by the state shall be punishable by a fine of one hundred dollars ($100) to five hundred dollars ($500) and that violation shall not be considered to be an administrative violation against the permit issued by the division.
Enforcement of the more restrictive local ordinances and the issuance of citations for violations thereof shall be by local law enforcement officers within the jurisdiction where such ordinance is in effect. Such citations shall be heard only in a local court of competent jurisdiction.

History. Acts 1999, No. 305, § 1; 2019, No. 315, § 50.

Amendments. The 2019 amendment substituted “rule” for “regulations” in the first sentence of (a), and “rules” for “regulations” in the third sentence of (a).

Subchapter 5 — Disposition of Fees and Taxes

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

3-4-501. When fees due — Disposition.

All license taxes provided and levies under this act shall be due and payable on the tenth day of each month succeeding the time when the act is done requiring the license.
It shall be the duty of the person required to pay the license to make a report giving the facts in such form and substance as the Director of the Alcoholic Beverage Control Division shall by rule require. All payments therefor shall be made to the Secretary of the Department of Finance and Administration, payable to the Treasurer of State, and all permit fees shall likewise be made to the secretary and payable to the Treasurer of State.
1. Except for grocery store wine permit fees under § 3-5-1802, all permits or license fees or taxes, penalties, fines, and costs received by the secretary under the provisions of this act shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund.
2. The Treasurer of State shall allocate and transfer the amounts to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by and to be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1935, No. 108, Art. 4, § 5; Pope's Dig., § 14131; Acts 1953, No. 118, § 32(E); A.S.A. 1947, § 48-325; Acts 2017, No. 508, § 2; 2019, No. 910, § 3308.

Amendments. The 2017 amendment redesignated former (c) as (c)(1) and (c)(2); and substituted “Except for grocery store wine permit fees under § 3-5-1802, all” for “All” in (c)(1).

The 2019 amendment substituted “Secretary” for “Director” twice in (b), and in (c)(1).

3-4-502. Fines.

When any fine is levied and collected under subchapter 4 of this chapter, the revenue shall be deposited into the General Revenue Fund Account.

History. Acts 1981, No. 790, § 2; A.S.A. 1947, § 48-346.

3-4-503. Suits to restrain collection — Refunds.

No suit shall be maintained in any court to restrain or delay the collection or payment of any fee or tax levied by this act.
The aggrieved taxpayer or permittee shall pay the tax or fee as and when required and may at any time within two (2) years from the date of payment sue the state through its agent, the Auditor of State, in an action at law in any state or federal court otherwise having jurisdiction of the parties and subject matter for the recovery of the tax or fee paid with legal interest thereon from the date of payment.
1. If it is finally determined that the tax or fee or any part thereof was wrongfully collected, for any reason, it shall be the duty of the Auditor of State to issue his or her warrant on the Treasurer of State for the amount of the tax or fee so adjudged to have been wrongfully collected, together with legal interest thereon.
2. The Treasurer of State shall pay the Auditor of State's warrant at once out of the General Revenue Fund Account of the state in preference to other warrants or claims against the state.
A separate suit need not be filed for each individual payment made by any taxpayer, but a recovery may be had in one (1) suit for as many payments as may have been made.

History. Acts 1935, No. 108, Art. 5, § 2; Pope's Dig., § 14133; A.S.A. 1947, § 48-326.

Publisher's Notes. This section may be affected by the Arkansas Tax Procedure Act, § 26-18-101 et seq.

Meaning of “this act”. See note to § 3-4-501.

Subchapter 6 — Particular Permits

A.C.R.C. Notes. Acts 2009, No. 763, § 2, created a new § 3-4-608. However, pursuant to § 1-2-303, the Arkansas Code Revision Commission reassigned Acts 2009, No. 763, § 2, to § 3-9-239.

Cross References. Vinous, spirituous, and malt liquors defined, § 3-1-102.

Acts 1973, No. 299, § 2: Mar. 12, 1973. Emergency clause provided: “It is found and declared by the General Assembly that this bill is essential to the proper preservation of revenues; an emergency is therefore declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1983, No. 675, § 8: Mar. 22, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Alcoholic Beverage Control Division should be authorized to retain ½ of the application permit fees in instances where the permits are denied in order to partially defray the cost of reviewing the permit application and this act is necessary to authorize the same. Therefore an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

Acts 2017, No. 1117, § 3: Apr. 7, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act is essential to the public interest and operation of the alcohol laws in the State of Arkansas; that this act eliminates conflicting language and allows consistent application of alcohol laws; that this act is immediately necessary due to the substantial growth and continued expansion of the distilling industry in Arkansas; that clear and consistent application of the law to the distilling industry is in the public's immediate interest as is controlling the distribution of alcoholic beverages within the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

3-4-601. Kinds of permits generally.

There shall be various kinds of permits, including without limitation:
1. Distiller's permit;
2. Brewer's permit;
3. Rectifier's permit;
4. Wholesaler's permit;
5. Dispenser's permit;
6. Hotel, restaurant, or club permit;
7. Grocery store wine permit;
8. Layout center permit; and
9. Hard cider manufacturing permit.
Each kind of permit shall be distinctive in color and design so as to be readily distinguishable from each other.

History. Acts 1935, No. 108, Art. 3, § 2; Pope's Dig., § 14105; A.S.A. 1947, § 48-302; Acts 2017, No. 508, § 3; 2017, No. 726, § 1; 2019, No. 691, § 5.

Amendments. The 2017 amendment by No. 508, in the introductory language, added the (a) designation, substituted “various” for “six (6)”, and substituted “including without limitation” for “each of which shall be distinctive in color and design so as to be readily distinguishable from each other, to wit”; added (a)(7); and added (b).

The 2017 amendment by No. 726 substituted “seven (7)” for “six (6)” in the introductory language; and added (7) [now (8)].

The 2019 amendment added (a)(9).

Cross References. Permit to transport, § 3-7-106.

Case Notes

Other Permits Excluded.

Legislative designation of the types of permits which could be issued excluded by implication other types of permits. Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969).

3-4-602. Distillers or manufacturers.

Any person may apply to the Director of the Alcoholic Beverage Control Division for a permit to manufacture, distill, import, transport, store, and sell to a wholesaler, jobber, or distributor spirituous, vinous (except small farm wines), or malt liquors to be used and sold for beverage purposes.
The application shall be in writing and verified and shall set forth in detail such information concerning the applicant for the permit and the premises to be used therefor as the director shall require.
The application shall be accompanied by a certified check, cash, or postal money order for the amount required by this act for the permit.
If the director grants the application, he or she shall issue a permit in such form as shall be determined by rules established by the director.
The permit shall contain a description of the premises to be used by the applicant and in form and in substance shall be a permit to the person therein specifically designated to manufacture, distill, transport, and sell to a wholesaler, jobber, or distributor spirituous, vinous (except small farm wines), or malt liquors in or from the premises therein specifically authorized.
No distiller or manufacturer shall sell or contract to sell any spirituous, vinous (except small farm wines), or malt liquors referred to herein to any wholesaler, distributor, or jobber, or to any other person who is not duly authorized under this act to receive, possess, transport, distribute, or sell those liquors.
Under rules adopted by the director, a distiller or manufacturer may:
1. Sell, deliver, or transport to wholesalers;
2. Sell, deliver, or transport to rectifiers;
3. Export out of the state;
4. Sell for off-premises consumption spirituous or vinous liquors the distiller or manufacturer manufactures on any day of the week;
5. Serve on the premises complimentary samples of liquors produced by the distiller or manufacturer;
6. Sell at retail, by the drink or by the package, spirituous or vinous liquors produced on the premises of the distillery if all sales occur in a wet territory; and
7. Sell for consumption on the premises of the manufacturer:
  1. Liquors produced by the manufacturer or liquors that the manufacturer may purchase from wholesalers licensed by the state;
  2. Wine;
  3. Beer; and
  4. Malt liquor.
1. For the privilege of distilling spirituous liquors or manufacturing malt liquors, each person engaged in distilling spirituous liquors or manufacturing malt liquors shall pay an annual permit fee of three hundred dollars ($300) for each manufacturing or distilling plant.
2. For the privilege of manufacturing vinous liquors (except small farm wines), there is assessed and there shall be paid an annual permit fee of and by every person engaged therein. The permit fee shall be in the sum of five hundred dollars ($500) for each manufacturing plant.
3. However, for the privilege of distilling brandy or spirituous liquors for use only in the fortifying of native wines, which are wines manufactured from the juices of grapes, berries, and other fruits or vegetables grown in this state, there shall be collected an annual permit fee of two hundred fifty dollars ($250) for each manufacturing or distilling plant.
Liquors may be sold for on-premises sale or off-premises sale, or both, for consumption during all legal operating hours in which business is normally and legally conducted on the premises if:
1. The manufacturer provides tours through its facility; and
2. Only sealed containers are removed from the premises.
1. A manufacturer may provide liquor it manufactures to charitable or nonprofit organizations or sell for resale liquor it manufactures to charitable or nonprofit organizations holding valid special event permits issued by the Alcoholic Beverage Control Board.
2. The sale of products under subdivision (j)(1) of this section is limited to the duration of the particular special event.
1. If approved by the Alcoholic Beverage Control Division and if the division receives written notice at least five (5) days before the event, the division may authorize a distiller or manufacturer to conduct a spirituous or vinous liquor tasting event for educational or promotional purposes at any location in a wet area of this state.
2. 1. Before an authorization is issued under subdivision (k)(1) of this section, the division shall receive written notice of the spirituous or vinous liquor tasting event at least two (2) weeks before the event.
  2. A spirituous or vinous liquor tasting event may be held under this subsection in any facility licensed by the division in a wet area of this state.

History. Acts 1935, No. 108, Art. 3, § 3; 1935, No. 108, Art. 4, § 1; Pope's Dig., §§ 14107, 14127; Acts 1939, No. 302, § 1; 1983, No. 675, § 1; A.S.A. 1947, §§ 48-303, 48-321; Acts 2011, No. 827, § 1; 2015, No. 1143, § 1; 2017, No. 1117, §§ 1, 2; 2019, No. 315, § 51; 2019, No. 740, § 1.

Publisher's Notes. Pursuant to § 3-1-103, only wines or vinous liquors manufactured in the State of Arkansas are exempted from the provisions of Acts 1935, No. 108.

Amendments. The 2011 amendment rewrote (g).

The 2015 amendment rewrote the section.

The 2017 amendment added (g)(5) through (7) and (i) through (k).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (d).

The 2019 amendment by No. 740 inserted “small farm” in (a), (f), and (h); substituted “grants” for “shall grant” in (d); inserted “(except small farm wines)” in (e); inserted “or vinous” in (g)(4), (g)(6), (k)(2)(A), and (k)(2)(B); deleted “and every” following “each” in the second sentence of (h)(2); and inserted “or manufacturer” and “or vinous” in (k)(1).

Case Notes

Export.

Export provisions of this act were not repealed by Acts 1939, No. 176 (repealed) which repealed some statutory provisions pertaining to sale of liquors for consumption outside of state. Southwestern Distilled Prods., Inc. v. State ex rel. Butt, 203 Ark. 524, 160 S.W.2d 208 (1941).

Cited: Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969).

3-4-603. Rectifiers.

Any person may apply to the Director of the Alcoholic Beverage Control Division for a permit for the rectifying, purifying, mixing, blending, or flavoring of spirituous liquors or the bottling, warehousing, or other handling or distribution of rectified distilled spirits.
The application shall be in writing and verified and shall set forth in detail such information concerning the applicant for the permit and the premises to be used therefor as the director shall require.
The application shall be accompanied by a certified check, cash, or postal money order for the amount required by this act for the permit.
If the director shall grant the application, he or she shall issue a permit in such form as shall be determined by rules.
The permit shall contain a description of the premises to be used by the applicant and in form and in substance shall be a permit to the person therein specifically designated to purify, mix, blend, or flavor spirituous or vinous liquors or to bottle, warehouse, or otherwise handle or distribute rectified distilled spirits in the premises therein specifically authorized.
The director shall have absolute discretion as to the location of the premises to be used.
Under such rules as may be adopted by the director, any rectifier may sell, deliver, or transport only:
1. To wholesalers;
2. To other rectifiers; and
3. For the purpose of export out of the state.
For the privilege of rectifying, blending, or flavoring spirituous liquors, there is assessed and there shall be paid an annual permit fee of and by every person engaged therein the sum of fifteen hundred dollars ($1,500) for each and every rectifying, blending, or flavoring plant.

History. Acts 1935, No. 108, Art. 3, § 4; 1935, No. 108, Art. 4, § 2; Pope's Dig., §§ 14108, 14128; Acts 1983, No. 675, § 2; A.S.A. 1947, §§ 48-304, 48-322.

Meaning of “this act”. See note to § 3-4-602.

Cross References. Dispensary defined, § 3-1-102.

Case Notes

Construction.

In subsection (a) of this section, the word “or” preceding “the bottling … ” is not used in the sense of “and” and additional tax on liquors sold by rectifier but not rectified by him was not authorized. McCarroll v. Southwest Distilled Prods., Inc., 198 Ark. 729, 131 S.W.2d 5 (1939).

Export.

Form of Permit.

This section leaves no discretion to the Commissioner of Revenues (now Director of the Alcoholic Beverage Control Division) as to the form and substance of a rectifier permit. McCarroll v. Southwest Distilled Prods., Inc., 198 Ark. 729, 131 S.W.2d 5 (1939).

Cited: Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969).

3-4-604. Retailers.

A person, other than a distiller, importer, rectifier, or wholesaler, may apply to the Director of the Alcoholic Beverage Control Division for a permit to sell and dispense vinous or spirituous liquors or hard cider for beverage purposes at retail.
The application shall be in writing and shall set forth in detail such information concerning the applicant for the permit and the premises to be used by the applicant as the director may require.
The application shall be accompanied by a certified check, cash, or postal money order for the amount required by this act for the permit.
If the director shall grant the application, he or she shall issue a permit in such form as shall be determined by the rules of the Alcoholic Beverage Control Division.
The permit shall contain a description of the premises permitted and in form and substance shall be a permit to the person specifically designated in the permit to sell and dispense at retail spirituous or vinous liquors or hard cider.
All such sales shall be in unbroken packages that shall not be opened or the contents or any part consumed on the premises where purchased.
For the privilege of operating a dispensary from which the vinous, spirituous, and malt liquors (except wines) or hard cider are to be dispensed in the manner provided in this act, there is assessed and there shall be paid a permit fee of and by the person engaged therein in the sum of four hundred dollars ($400) per annum payable on or before June 30 of each calendar year for the fiscal year beginning July 1.

History. Acts 1935, No. 108, Art. 3, § 6; 1935, No. 108, Art. 4, § 4; Pope's Dig., §§ 14110, 14130; Acts 1983, No. 420, § 1; 1983, No. 675, § 4; A.S.A. 1947, §§ 48-309, 48-313.1, 48-324; Acts 2019, No. 691, §§ 6, 7.

Publisher's Notes. For exclusion of wines, see Publisher's Notes to § 3-4-602.

Amendments. The 2019 amendment inserted “or hard cider” in (a), (e), and (g); and made stylistic changes.

Meaning of “this act”. See note to § 3-4-602.

Cross References. Additional fee for operation of dispensary, § 3-7-111.

Additional permit fee generally, § 3-7-111.

Retail liquor dealer permitted to sell native wines without additional license, § 3-5-102.

Case Notes

Construction.

The language of § 3-4-206 is obviously applicable to the retail liquor business and complements this section. When the two statutes are read together, it is obvious that the legislature intended to prevent retail “package” stores from operating within 200 yards of a school or church building. Rowell v. Austin, 276 Ark. 445, 637 S.W.2d 531 (1982).

Private Clubs.

The prohibition of § 3-4-206 on the issuance of a new permit to engage in the retail liquor business at a location situated within 200 yards of a church would not apply to the transfer of a private club permit for dispensation of alcoholic beverages by the drink or in broken or unsealed containers for consumption on the premises. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Cited: Carr v. Turner, 238 Ark. 889, 385 S.W.2d 656 (1965).

3-4-605. Wholesalers.

A person other than a distiller, manufacturer, rectifier, or importer may apply to the Director of the Alcoholic Beverage Control Division for a permit to sell spirituous liquor, wine as defined in § 3-9-301(7), beer, hard cider, or malt liquors at wholesale.
The application shall be in writing and shall set forth in detail such information concerning the applicant for the permit and the premises to be used by the applicant as the director may require.
The application shall be accompanied by a certified check, cash, or postal money order for the amount required by this act for the permit.
If the director grants the application, he or she shall issue a permit in a form as determined by the rules of the Alcoholic Beverage Control Division.
The permit shall contain a description of the premises permitted and in form and substance shall be a permit to the person specifically designated in the permit to sell spirituous liquor, wine as defined in § 3-9-301(7), beer, hard cider, or malt liquors for beverage purposes.
A person holding a distiller's or rectifier's permit need not obtain a wholesaler's permit in order to sell at wholesale spirituous liquor or wine as defined in § 3-9-301(7).
1. 1. A person other than a person holding a distiller's, manufacturer's, or rectifier's permit shall not sell spirituous liquor, wine as defined in § 3-9-301(7), hard cider, or malt liquors at wholesale.
  2. A person other than a person holding a wholesaler's permit shall not sell spirituous liquor, wine as defined in § 3-9-301(7), or malt liquors at wholesale.
2. A wholesaler holding a permit shall not sell or buy from another unless he or she holds a permit, but a wholesaler may export from or import into this state liquors under rules promulgated by the division.
A wholesaler shall not sell or contract to sell spirituous liquor, wine as defined in § 3-9-301(7), beer, hard cider, or malt liquors to a dispensary, hotel, restaurant, or club if the dispensary, hotel, restaurant, or club is not authorized under this act to receive, possess, transport, distribute, or sell spirituous liquor, wine as defined in § 3-9-301(7), beer, hard cider, or malt liquors.
Further, a licensed wholesaler in Arkansas of spirituous liquor, beer, hard cider, or wine as defined in § 3-9-301(7) may only purchase spirituous liquor, beer, hard cider, or wine as defined in § 3-9-301(7) from a distiller, importer, rectifier, hard cider manufacturer, or a domestic wine producer. However, this restriction does not apply to the purchase of native wines.
1. For the privilege of storing, transporting, and selling spirituous liquor, wine as defined in § 3-9-301(7), beer, hard cider, or malt liquors at wholesale, there is assessed and there shall be paid an annual permit fee of and by every person engaged therein. The permit fee shall be in the sum of seven hundred dollars ($700) for each separate and distinct establishment.
2. However, this section does not apply to residents of Arkansas who store, transport, and sell wine or hard cider at wholesale manufactured by them in this state.

History. Acts 1935, No. 108, Art. 3, § 5; 1935, No. 108, Art. 4, § 3; Pope's Dig., §§ 14109, 14129; Acts 1973, No. 299, § 1; 1983, No. 675, § 3; A.S.A. 1947, §§ 48-305, 48-323; Acts 2009, No. 294, § 6; 2019, No. 691, §§ 8, 9.

Publisher's Notes. For exclusion of wines, see Publisher's Notes to § 3-4-602.

Amendments. The 2009 amendment inserted “liquor” following “spirituous” in (a), (e), (h), (i), and (j)(1); substituted “wine as defined in § 3-9-301(2)” for “vinous” in (e), (h), and (j)(1), for “vinous (except wines)” in (a) and (g)(1)(A), and for “vinous liquors” in (f) and (i); inserted “beer” in (a), (e), (h), (i), and (j)(1); inserted (g)(1)(B), redesignated (g) accordingly, and deleted “and regulations” following “rules” in (g)(2); and made minor stylistic changes.

The 2019 amendment inserted “hard cider” throughout the section; inserted “hard cider manufacturer” in (i); and made stylistic changes.

Meaning of “this act”. See note to § 3-4-602.

Cross References. Additional permit tax, § 3-7-111.

Brandy, manufacture and sale, § 3-6-102.

Wholesalers, sales of malt liquor of greater than 5% alcohol, § 3-5-101.

Case Notes

Cited: Hinton v. State ex rel. Purcell, 246 Ark. 341, 438 S.W.2d 57 (1969).

3-4-606. Wholesalers — Additional requirements.

In addition to any restriction or requirement now imposed by law or by valid rule promulgated in accordance with law, the following persons shall not be eligible hereafter to receive, obtain, or be granted any wholesale liquor permit:
1. Any individual person who is not a citizen and bona fide resident of the State of Arkansas and who has not been domiciled in the State of Arkansas continuously for at least five (5) years next preceding the date of his or her application for permit;
2. Any corporation in which any officer, director, manager, or stockholder of which would be ineligible as an individual person to obtain a permit by reason of the foregoing provisions of subdivision (a)(1) of this section or by reason of any other existing restriction or provision of law or valid rule promulgated in accordance with law; or
3. Any partnership, any of whose members or manager would be ineligible as an individual to obtain such permit by reason of the provisions of subdivision (a)(1) of this section or of any other provisions of law or valid rule as aforesaid.
1. Any corporation which shall apply for a wholesale liquor permit shall, at the time of filing, attach thereto a list of its stockholders, managers, directors, and officers on such form as may be prescribed by the officer or authority issuing the permit, verified by the president and secretary and showing the names, addresses, and places of residence of all such persons for the five (5) years next preceding the date of application.
2. When the residence or address of any such stockholder, manager, director, or officer is changed, the change shall be reported by the corporation to such officer or authority within ten (10) days thereafter.
3. No stock in any corporation holding a permit shall be issued or transferred to any ineligible individual, except in the case of transfer by reason of death of a stockholder. In that event, the transfer by death to any ineligible individual shall be reported by the corporation to the issuing officer or authority not later than sixty (60) days after the death. If within six (6) months thereafter the stock transferred by death shall not have been transferred by bona fide transaction to an individual otherwise eligible to receive the permit as provided herein, and as provided by existing law or rule, as aforesaid, the permit of the corporation shall immediately be revoked and cancelled.
The provisions of this section shall not apply to any stock owned in any company legally operating in the State of Arkansas on June 7, 1951.
1. Any wholesale liquor permit that may be issued to any individual, partnership, or corporation which shall be found thereafter ineligible as provided in this section, or as otherwise provided by law or rule, shall be cancelled and revoked.
2. If any individual, partnership, or corporation shall not comply fully with the provisions hereof, any permit theretofore issued shall be cancelled and revoked.
This section shall not apply to any person, firm, or corporation which, for a period of at least ten (10) years prior to June 7, 1951, had continuously been the holder of a wholesale liquor permit issued by this state.
This section shall be cumulative to existing restrictions and requirements governing the issuance of wholesale liquor permits.

History. Acts 1951, No. 379, §§ 1-3; A.S.A. 1947, §§ 48-314.1 — 48-314.3; Acts 2019, No. 315, § 52-54.

Amendments. The 2019 amendment substituted “rule” for “regulation” throughout (a); and substituted “rule” for “regulations” in the last sentence of (b)(3) and in (d)(1).

Case Notes

Preexisting Corporations.

If corporation was legally doing business in state under wholesale permit on effective date of this section, its permit could not be revoked on the ground that its stockholders were nonresident, since residence requirements in such case were restricted to officers, managers, and directors of the corporation. Callahan v. Little Rock Distrib. Co., 220 Ark. 443, 248 S.W.2d 97 (1952).

3-4-607. Minimum wholesale liquor permit.

1. A person other than a distiller, manufacturer, rectifier, or importer may apply to the Director of the Alcoholic Beverage Control Division for a minimum wholesale liquor permit that allows the person to sell spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors at wholesale.
2. A minimum wholesale liquor permit holder shall not sell more than a combined total of twenty thousand (20,000) cases of spirituous liquors, wine as defined in § 3-9-301(7), hard cider, or malt liquors.
3. A case is a container that holds nine liters (9 l) of beverages.
The application shall be in writing and shall provide information concerning the applicant for the minimum wholesale liquor permit and the premises to be used by the applicant as the director requires.
The application shall be accompanied by a certified check, cash, or postal money order for the amount required by this section for the minimum wholesale liquor permit.
If the director grants the application, he or she shall issue a minimum wholesale liquor permit in a form as determined by the rules of the Alcoholic Beverage Control Division.
The minimum wholesale liquor permit shall contain a description of the premises permitted and in form and substance shall be a minimum wholesale liquor permit to the person specifically designated to sell spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors for beverage purposes.
1. A person other than a person holding a distiller's, manufacturer's, rectifier's, or minimum wholesale liquor permit shall not sell spirituous liquors, wine as defined in § 3-9-301(7), and malt liquors at wholesale.
2. A wholesaler holding a minimum wholesale liquor permit shall not sell or buy from another person unless the other person holds a minimum wholesale liquor permit, but a wholesaler may export from or import into this state spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors under rules promulgated by the division.
A wholesaler holding a minimum wholesale liquor permit shall not sell or contract to sell any spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors to a dispensary, hotel, restaurant, or club if the dispensary, hotel, restaurant, or club is not authorized under § 3-4-601 to receive, possess, transport, distribute, or sell spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors.
A minimum wholesale liquor permitee of spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors in Arkansas shall purchase spirituous liquors, wine as defined in § 3-9-301(7), hard cider, and malt liquors only from a distiller, importer, rectifier, or a domestic wine producer. However, this restriction does not apply to the purchase of native wines.
1. The minimum wholesale liquor permit fee is two thousand five hundred dollars ($2,500) for each separate establishment.
2. This section does not apply to residents of Arkansas who store, transport, and sell wine at wholesale manufactured by them in this state.
The provisions of § 3-4-606 shall apply to a wholesaler who has a minimum wholesale liquor permit.

History. Acts 2009, No. 294, § 7; 2019, No. 691, §§ 10, 11.

Amendments. The 2019 amendment inserted “hard cider” throughout (a) and (e)-(h); and made stylistic changes.

3-4-608. Spirituous liquor — Vinous liquor — Supplier registration.

As used in this section:
1. “Small farm wine” means the wine produced by a wine-making business that produces two hundred fifty thousand gallons (250,000 gals.) of wine or less per year, the alcohol content of which is not less than one-half percent (0.5%) and not more than twenty-one percent (21%);
2. “Spirituous” means a liquor distilled from the fermented juices of grain, fruits, or vegetables and containing more than twenty-one percent (21%) alcohol by weight, or any other liquids containing more than twenty-one percent (21%) alcohol by weight;
3. “Supplier” means an in-state or out-of-state manufacturer, distiller, rectifier, brewer, importer, or producer of spirituous liquor or vinous liquor; and
4. “Vinous” means the fermented juices of fruits or a mixture containing the fermented juices of fruits, containing more than five percent (5%) and not more than twenty-one percent (21%) alcohol by weight.
1. A supplier of a spirituous or vinous beverage, excluding small farm wine, shall file an application with the Alcoholic Beverage Control Division for a permit.
2. The application shall:
  1. Be in writing;
  2. Be verified; and
  3. Set forth the information in detail as the Director of the Alcoholic Beverage Control Division requires concerning the applicant for the permit and premises to be used.
3. The application shall be accompanied by a permit fee of fifty dollars ($50.00) payable by cash, check, money order, or electronic payment.
4. The permit may be renewed annually.
5. If the director grants the application, he or she shall issue a permit in the form required by the rules established by the division.
A supplier shall not sell a spirituous liquor or a vinous liquor to a wholesaler, distributor, or to any other person who is not legally authorized to receive, possess, transport, distribute, or sell a spirituous liquor or a vinous liquor under this chapter.
Under the rules adopted by the director, a supplier may:
1. Sell, deliver, or transport to a wholesaler, distributor, or rectifier;
2. Ship into the state to a wholesaler, distributor, or rectifier; and
3. Export out of the state.

History. Acts 2013, No. 1105, § 2.

3-4-609. Wholesaler permit — Issuance — Transfer.

1. A wholesaler permit shall not be issued under § 3-4-605 or § 3-4-607 on or after September 1, 2013.
2. However, a holder of a wholesaler permit under § 3-4-605 or § 3-4-607 issued on or before September 1, 2013, may renew the permit before, on, or after September 1, 2013.
A holder of a wholesaler permit issued under § 3-4-605 or § 3-4-607 on or before September 1, 2013, may transfer the wholesaler permit to another wholesaler as permitted under applicable law or regulation of the Alcoholic Beverage Control Division.

History. Acts 2013, No. 1434, § 1.

3-4-610. Layout center permit.

A corporation that is publicly traded on a nationally recognized stock exchange that has its principal place of business in Arkansas and is permitted to sell alcoholic beverages for on-premises or off-premises consumption in Arkansas and other states may apply for a layout center permit.
1. The application shall be in writing and shall provide information concerning the applicant for the layout center permit and the premises to be used by the applicant as the Director of the Alcoholic Beverage Control Division requires.
2. The permitted premises shall:
  1. Be closed to the general public; and
  2. Not be used for retail sales of alcoholic beverages.
3. A manufacturer or wholesaler may provide alcoholic beverages of any type directly to a layout center permittee at the permitted premises.
4. A manufacturer or wholesaler that provides alcoholic beverages under this section need not:
  1. Be authorized to do business in this state; or
  2. Have any type of license or permit to operate in the state.
5. The layout center permittee may also temporarily transport an alcoholic beverage to the permitted premises from a permitted retail outlet operated by the layout center permittee or the affiliates of the layout center permittee within the state.
6. An alcoholic beverage provided under this section need not:
  1. Be available for sale in Arkansas; or
  2. Possess a brand label approved for sale in this state.
7. A layout center permittee may:
  1. Pay a manufacturer or wholesaler for:
    1. The value of an alcoholic beverage; and
    2. The cost of delivering the alcoholic beverage; or
  2. Provide or deliver the alcoholic beverage to the layout center permittee without charge.
8. An alcoholic beverage provided under this section shall:
  1. Be used solely for the purpose of merchandise planning within the permitted premises; and
  2. Not be consumed or sold on the permitted premises.
9. When a layout center permittee is finished using the product for merchandise planning, the layout center permittee:
  1. For an alcoholic beverage received from a manufacturer, shall:
    1. Destroy the alcoholic beverage;
    2. Return the alcoholic beverage to the manufacturer; or
    3. Donate the alcoholic beverage to a charitable organization qualified under the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3);
  2. For an alcoholic beverage received from a wholesaler, shall:
    1. Destroy the alcoholic beverage; or
    2. Donate the alcoholic beverage to a charitable organization qualified under the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3); or
  3. For an alcoholic beverage temporarily transported from a permitted retail outlet operated by the layout center permittee or an affiliate of the layout center permittee, may return the alcoholic beverage to the retail outlet.
10. The layout center permittee shall maintain documentation of the receipt and disposition of all alcoholic beverages within the permitted premises.
Provision of alcoholic beverages by a manufacturer or wholesaler under this section or otherwise assisting the layout center permittee with merchandise planning at the permitted premises is not a gift, gratuity, or inducement to the layout center permittee or an affiliate of the layout center permittee.
An alcoholic beverage provided by a manufacturer or wholesaler under this section is exempt from taxation.
The Alcoholic Beverage Control Division may conduct inspections of the premises permitted under this section.
The division shall assess an annual fee of one hundred dollars ($100) for a layout center permit.
Providing alcoholic beverages to a layout center permittee under this section is not a violation of any statute or regulation, including a regulation requiring a manufacturer or wholesaler to provide the same services to all retailers.
Owning, possessing, or transporting alcoholic beverages furnished or being furnished to a corporation under this section is not an offense under § 3-3-401 et seq.

History. Acts 2017, No. 726, § 2.

3-4-611. Hard cider manufacturing permit.

A person may apply to the Director of the Alcoholic Beverage Control Division for a permit to manufacture, import, transport, store, and sell to a wholesaler, jobber, distributor, or retailer hard cider to be used and sold for beverage purposes as authorized under this section.
An application under this section shall:
1. Be in writing;
2. Be verified;
3. State in detail information concerning the applicant for the permit and the premises to be used by the applicant as required by the director; and
4. Be accompanied by a certified check, cash, or postal money order for the amount required in subsection (f) of this section for the permit.
If the director grants an application under this section, he or she shall issue the permit in a form prescribed by rule.
A permit under this section shall:
1. Contain a description of the premises to be used by the applicant; and
2. Permit the applicant to manufacture, transport, and sell to a wholesaler, jobber, distributor, or retailer hard cider in or from the premises specifically authorized under this section.
A hard cider manufacturer may:
1. Manufacture at its licensed facility no less than thirty-five percent (35%) of its hard cider to be sold in the state and no more than forty-five thousand (45,000) barrels per year;
2. 1. Sell, deliver, or transport hard cider manufactured by the hard cider manufacturer to, including without limitation:
    1. Wholesalers;
    2. Retail license holders;
    3. Small brewery license holders;
    4. Small winery license holders;
    5. Microbrewery-restaurant license holders; and
    6. Distillers.
  2. 1. A hard cider manufacturer may only sell, deliver, or transport hard cider produced on the premises of the hard cider manufacturer under subdivision (e)(2)(A) of this section if the total production of the permitted hard cider manufacturer does not exceed fifteen thousand (15,000) barrels of hard cider per year from all facilities under common ownership with the hard cider manufacturer.
    2. Each permitted hard cider manufacturer shall submit documentation of production each year to renew the permit with the Alcoholic Beverage Control Division.
    3. A hard cider manufacturer may distribute no more than fifteen thousand (15,000) barrels per year.
  3. 1. To sell and transport hard cider under subdivision (e)(2)(A) of this section, the hard cider manufacturing permit holder shall obtain a hard cider manufacturing wholesale permit.
    2. The hard cider manufacturing permit holder shall pay a fee of two hundred fifty dollars ($250) per year for the permit under subdivision (e)(2)(C)(i) of this section;
3. 1. Maintain one (1) separate manufacturing facility for the production or storage of hard cider as needed to meet demand, except that each facility used by the hard cider manufacturer permitee shall not in the aggregate produce more than forty-five thousand (45,000) barrels of hard cider per year.
  2. Hard cider manufactured by a separate manufacturing facility of a hard cider manufacturing permittee shall be:
    1. Sold to a licensed wholesaler; or
    2. Transported:
      1. From the separate manufacturing facility to a facility commonly owned by the owner of the separate manufacturing facility for retail sale for consumption on or off the licensed premises; and
      2. To the separate manufacturing facility from a facility commonly owned by the owner of the separate manufacturing facility for storage, production, or packaging;
4. Export hard cider manufactured by the manufacturer out of the state;
5. Sell for on-premises or off-premises consumption during legal operating hours hard cider manufactured by the manufacturer;
6. Serve on the premises:
  1. Complimentary samples of hard cider manufactured by the manufacturer; and
  2. 1. Spirituous liquors for on-premises consumption in a taproom under the license of a small brewery.
    2. Subdivision (e)(6)(B)(i) of this section authorizing on-premises consumption is effective only in cities and counties, or portions of cities and counties, in which the manufacture or sale of intoxicating liquor is not prohibited as a result of a local option election held under Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, and in which the sale of alcoholic beverages for on-premises consumption has been approved by a majority vote at a referendum election as provided in this chapter;
7. Sell at retail, by the drink or by the package, hard cider manufactured by the manufacturer;
8. Sell for consumption on the premises of the manufacturer:
  1. Hard cider manufactured by the manufacturer;
  2. Hard cider that the manufacturer may purchase from wholesalers licensed by the state;
  3. Wine;
  4. Beer; and
  5. Malt beverages;
9. Store beer, malt beverages, wine, and hard cider legally purchased for resale on the premises; and
10. Sell hard cider manufactured by the manufacturer at fairs and festivals with the permission and the consent of the management of the events if the sale occurs in a wet area and the hard cider sold is for consumption by persons of legal age.
For the privilege of manufacturing hard cider, each person engaged in manufacturing hard cider shall pay an annual permit fee of three hundred dollars ($300) for each manufacturing plant.
Hard cider may be sold for consumption on-premises or off-premises, or both, during all legal operating hours in which business is normally and legally conducted on the premises, if:
1. The manufacturer provides tours through its facility; and
2. Only sealed containers are removed from the premises.
A manufacturer may donate or sell for resale hard cider it manufactures to a charitable or nonprofit organization holding a valid temporary permit issued by the Alcoholic Beverage Control Board.
1. The division may authorize a manufacturer to conduct a hard cider-tasting event for educational or promotional purposes.
2. 1. Before an authorization is issued under subdivision (i)(1) of this section, the manufacturer shall provide written notice of the hard cider-tasting event at least two (2) weeks before the event.
  2. A hard cider-tasting event under this subsection shall be held in any facility licensed by the division in a wet territory of this state.
1. A hard cider manufacturer may transport its hard cider along any highway, road, street, or other thoroughfare of travel.
2. A hard cider manufacturer may ship hard cider it manufactures out of the state by common carrier or other appropriate parcel delivery service, and common carriers and other appropriate parcel delivery services may accept hard cider from Arkansas manufacturers for delivery outside the state.
3. A hard cider manufacturer in this state may ship hard cider it manufactures within the state by common carrier or other appropriate parcel delivery service, and common carriers and other appropriate parcel delivery services may accept hard cider from Arkansas manufacturers for delivery within the state if the hard cider is shipped only to persons holding a wholesale permit to purchase, store, sell, or dispense hard cider.
1. A hard cider manufacturer may include a tap room at its facility and may:
  1. Sell for both on-premises and off-premises consumption hard cider manufactured at the facility; and
  2. Sell for on-premises consumption beer, hard cider, malt beverages, and wine not manufactured at the facility.
2. A hard cider manufacturer may operate a restaurant in conjunction with its tap room.
1. A hard cider manufacturer selling and transporting hard cider manufactured on the premises of the facility is a supplier.
2. A hard cider manufacturer is not subject to § 3-5-1101 et seq. unless the hard cider manufacturer exceeds annual production of hard cider of fifteen thousand (15,000) barrels.
The director shall adopt rules to implement and administer this section.

History. Acts 2019, No. 691, § 1.

Subchapter 7 — Post Exchange Package Permit

3-4-701. Creation — Issuance — Expiration.

1. In addition to all other existing alcoholic beverage permits authorized to be issued by the Alcoholic Beverage Control Division for the retail sale of alcoholic beverages, there is hereby created a “post exchange package permit”, which shall authorize the sales of spirituous, vinous, and malt beverages, light wine, light beer, premixed spirituous liquor, light spirituous liquor, and Arkansas native wine, as such beverages are defined by this title, at post exchange facilities located at Camp Joseph T. Robinson and Fort Chaffee upon property owned or controlled by the State of Arkansas and operated by and under the exclusive control of the militia.
2. The permit created herein shall not be subject to any quota restrictions.
The permits authorized in this section shall be issued by the Alcoholic Beverage Control Division to qualified persons whose application for the permit shall be accompanied by a letter of authorization signed by the Adjutant General of the Arkansas National Guard.
Each permit shall be issued annually for a fee of one thousand dollars ($1,000) and shall expire on June 30 of each year.

History. Acts 1989, No. 617, §§ 1-3; 1997, No. 366, § 1; 2009, No. 294, § 8.

Amendments. The 2009 amendment, in (c), substituted “one thousand dollars ($1,000)” for “one hundred dollars ($100)” and made a minor stylistic change.

3-4-702. Hours of lawful sales — Purchase from wholesale distributors.

The hours of lawful sales under the post exchange package permit shall be the same as those established for military service clubs pursuant to § 3-4-706.
All alcoholic beverages authorized to be sold under this title shall be purchased from wholesale distributors licensed by the Alcoholic Beverage Control Division.

History. Acts 1989, No. 617, § 4; 2005, No. 1020, § 1.

Amendments. The 2005 amendment substituted “military service clubs pursuant to § 3-4-706” for “other classes of off-premises retail permits pursuant to this title” in (a).

3-4-703. Authorized purchasers.

Sales of alcoholic beverages under the post exchange permit shall be limited to those persons over twenty-one (21) years of age who are:

Active or retired members of the Army National Guard and Air National Guard;
Active, retired, and reserve members of the United States Armed Forces;
United States Department of Defense employees;
Full-time employees of the militia;
Students attending training programs at Camp Joseph T. Robinson or Fort Chaffee;
Contractors and their employees performing work pursuant to a contract with the United States or the State of Arkansas on Camp Joseph T. Robinson or Fort Chaffee;
Employees of tenant government agencies located on Camp Joseph T. Robinson or Fort Chaffee; and
Dependents of the above-named persons who hold identification cards evidencing their status as may be found acceptable to the Adjutant General.

History. Acts 1989, No. 617, § 5; 1995, No. 521, § 2; 1997, No. 1201, § 13.

Cross References. Canteen — Inventory and sales — Tax exemptions, § 12-63-406.

Legislative findings of fact, § 12-63-102.

3-4-704. Rules.

The Alcoholic Beverage Control Division is authorized to adopt reasonable rules to carry out the intent and provisions of this subchapter, to establish appropriate application forms, permit forms, and procedures, and to do any and all other things necessary to implement the provisions of this subchapter.

History. Acts 1989, No. 617, § 6; 2019, No. 315, § 55.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading and in the section.

Case Notes

Power.

In a case where an application to operate a retail liquor store was conditionally granted, the Arkansas Alcoholic Beverage Control Board had the statutory authority to enact rules and regulations. Therefore, the board had the authority to impose conditions on the approval of applications. Sheppard v. Ark. ABC Bd., 2014 Ark. App. 604, 447 S.W.3d 614 (2014).

3-4-705. Unauthorized sales — Penalties.

Any unauthorized sales pursuant to the permit created herein shall be subject to the same penalties as established for other off-premises retail permits pursuant to this title.

History. Acts 1989, No. 617, § 7.

3-4-706. Military service club mixed drink permit.

In addition to the post exchange and other post operations authorized to be taken over by the militia pursuant to the provisions of this section, the Adjutant General of the Arkansas National Guard is given further authority to take over operation of all military service clubs on Fort Chaffee.
1. It is recognized that Fort Chaffee has operated under exclusive federal jurisdiction and that such military service clubs have not been required to obtain a license from the State of Arkansas to authorize such operations.
2. However, pursuant to resumption of state jurisdiction over Fort Chaffee, state licenses will be required.
1. Therefore, there is hereby created a military service club mixed drink permit authorizing the sale of alcoholic beverages as defined in § 3-9-202 to be issued to service clubs on military reservations owned or controlled by the State of Arkansas.
2. The Alcoholic Beverage Control Division is authorized to issue such a permit to each military service club operating on Fort Chaffee.
3. 1. The annual fee for each military service club mixed drink permit shall be seven hundred fifty dollars ($750), and the annual fee shall be due and collected in the same manner as all other permit fees collected by the division.
  2. Food service requirements for restaurants, as set out in § 3-9-202 et seq. shall not be applicable.
  3. Hours of operation for such service clubs shall be the same as are now in existence for private clubs licensed pursuant to § 3-9-221 et seq.
4. The division is authorized to adopt reasonable rules to provide for the operation of such service clubs consistent with the intent and purposes of this section.

History. Acts 1997, No. 1201, § 15; 2009, No. 294, § 9; 2019, No. 315, § 56.

Amendments. The 2009 amendment, in (c)(3)(A), substituted “seven hundred fifty dollars ($750)” for “five hundred dollars ($500)” and made minor stylistic changes.

The 2019 amendment deleted “and regulations” following “rules” in (c)(4).

Cross References. Legislative findings of fact, § 12-63-102.

Military service club, § 12-63-501 et seq.

Subchapter 8 — Responsible Permittee Programs

3-4-801. Legislative intent and purpose.

The legislative intent and purpose of this subchapter is to:

Eliminate the sale of alcoholic beverages to and consumption of alcoholic beverages by underage persons;
Reduce intoxication and to reduce accidents, injuries, and deaths in the state which are related to intoxication; and
Encourage alcoholic beverage permit holders to be prudent in the sale and service of alcoholic beverages.

History. Acts 1993, No. 173, § 1.

3-4-802. Definitions.

The following words or phrases or the plural of those words or phrases shall have the meaning ascribed to them in this section unless the context clearly requires otherwise:

“Board” means the Alcoholic Beverage Control Board of the State of Arkansas; and
“Permittee” means a person who is licensed by the board to sell or dispense alcoholic beverages for on-premises consumption or for off-premises consumption, or both.

History. Acts 1993, No. 173, § 2.

3-4-803. Responsible permittee program.

1. The Alcoholic Beverage Control Board shall oversee a server training program designed to encourage permittees and their employees to treat the sale and service of alcoholic beverages in a responsible manner.
2. To that end, the board shall adopt rules which shall implement the intent of this subchapter.
The program shall be entitled “the responsible permittee program”.

History. Acts 1993, No. 173, § 3; 2019, No. 315, § 57.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a)(2).

Case Notes

Minors.

This section and §§ 3-3-202 and 3-3-218 create a duty for licensees to exercise a high standard of care for the protection of minors, and a breach of this duty can lead to a suit for negligence. Shannon v. Wilson, 329 Ark. 143, 947 S.W.2d 349 (1997).

3-4-804. Effect of compliance.

A permittee who seeks to qualify as a responsible permittee must provide to the Alcoholic Beverage Control Board evidence of compliance with the requirements of this subchapter. Upon satisfactory proof that the permittee has complied with the requirements, the board shall certify the permittee as a responsible permittee. Certification as a responsible permittee shall be renewed annually.
The board may revoke or suspend a permittee's certification for noncompliance with this subchapter.

History. Acts 1993, No. 173, § 4.

3-4-805. Certification.

In order to qualify for certification, the permittee shall comply with the following requirements:

Attend a course of instruction approved and certified by the Alcoholic Beverage Control Board which shall include subjects dealing with alcoholic beverages as follows:
1. Education on the dangers of drinking and driving;
2. State laws regarding the sale of alcoholic beverages for on-premises consumption or for off-premises consumption, or both;
3. Methods of recognizing and dealing with underage customers;
4. The development of specific procedures for:
  1. Refusing to sell alcoholic beverages to underage customers;
  2. Assisting employees in dealing with underage customers;
  3. Dealing with intoxicated customers; and
5. Such other matters as may be deemed appropriate by the board;
Require each employee who is authorized to sell alcoholic beverages in the normal course of his or her employment to complete the responsible permittee training course set out in subdivision (1) of this section within thirty (30) days of commencing employment; and
Maintain employment records of the training of its employees required by this section.

History. Acts 1993, No. 173, § 5.

3-4-806. Mitigation of fines or penalties.

The Alcoholic Beverage Control Board shall consider certification of a permittee in the responsible permittee program in mitigation of administrative penalties or fines for a permittee's or employee's violation of state laws and rules relating to the sale of alcoholic beverages.

History. Acts 1993, No. 173, § 6; 2019, No. 315, § 58.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

3-4-807. Fees.

There is imposed on each permittee who applies and is certified as a responsible permittee an annual fee of twenty-five dollars ($25.00).
1. All moneys collected under this subchapter shall be used to fund such server training programs as may be approved by the Alcoholic Beverage Control Board.
2. Permittees attending such approved programs shall not be charged any additional fee by the program provider.

History. Acts 1993, No. 173, § 7.

Subchapter 9 — Caterer's Permit

3-4-901. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Alcoholic beverages” means any alcoholic beverage which is sold at retail in Arkansas;
“Director” means the Director of the Alcoholic Beverage Control Division;
“Off-premise caterer” means an individual or business entity which:
1. Has been in business for more than one (1) year;
2. Sixty percent (60%) or more of whose gross sales for the preceding year have been derived from food sales;
3. Had gross food sales in excess of one hundred thousand dollars ($100,000) for the preceding year;
4. For a fee, prepares food and beverages to be consumed at private parties or other private functions; and
5. Transports the food and beverages from the permitted premises to the premises where the private function is being held; and
“Off-premise caterer's permit” means a license which authorizes the holder thereof to purchase alcoholic beverages from a permitted retail outlet, to transport the alcoholic beverages to a private function which is being catered by the permit holder, and to serve alcoholic beverages to attendees of a private function in conjunction with catered food.

History. Acts 1999, No. 1170, § 1.

3-4-902. Off-premise caterer's permit.

There is hereby created an off-premise caterer's permit which may be issued by the Alcoholic Beverage Control Division to qualified off-premise caterers as defined in this subchapter.
The annual fee for an off-premises caterer's permit shall be five hundred dollars ($500), and the off-premises caterer's permit shall be renewed on an annual basis.
The off-premise caterer's permit shall be posted conspicuously at the caterer's place of business.

History. Acts 1999, No. 1170, § 2; 2009, No. 294, § 10.

Amendments. The 2009 amendment, in (b), substituted “five hundred dollars ($500)” for “two hundred dollars ($200)” and made minor stylistic changes.

3-4-903. Qualifications for permit.

No off-premise caterer's permit shall be issued by the Alcoholic Beverage Control Division until an applicant for the permit provides proof that it has obtained a sales tax permit from the Revenue Division of the Department of Finance and Administration and has received approval of its permitted premises by the Department of Health.
Furthermore, no off-premise caterer's permit shall be issued until the applicant provides proof of general liability insurance providing coverage in an amount of no less than two hundred thousand dollars ($200,000).

History. Acts 1999, No. 1170, § 3.

3-4-904. Gross receipts tax.

Gross receipts tax shall be collected and remitted by the off-premise caterer on the total fee charged for each catered event.

History. Acts 1999, No. 1170, § 2.

3-4-905. Rules and forms.

The Alcoholic Beverage Control Division is authorized to adopt reasonable rules implementing and facilitating the purpose and intent of this subchapter, to establish appropriate application forms, permit forms, and procedures, and to do any and all other things necessary to implement the provisions of this subchapter.

History. Acts 1999, No. 1170, § 4; 2019, No. 315, § 59.

Amendments. The 2019 amendment substituted “Rules” for “Regulations” in the section heading; and deleted “and regulations” following “rules” in the section.

Subchapter 10 — Restaurant Beer and Wine Permit

3-4-1001. Creation — Issuance — Expiration.

1. In addition to all other existing alcoholic beverage permits authorized to be issued by the Alcoholic Beverage Control Division for the retail sale of alcoholic beverages, there is created a restaurant beer and wine permit, which authorizes the sale of beer, hard cider, and wine as defined in § 3-9-301(7) at restaurants as defined in § 3-9-301(6).
2. The restaurant beer and wine permit is not subject to any quota restrictions.
The permit may be issued by the division to a qualified person.
Each restaurant beer and wine permit shall be issued annually for a fee of three hundred and fifty dollars ($350) and shall expire on June 30 of each year.

History. Acts 2009, No. 294, § 11; 2009, No. 763, § 3; 2019, No. 691, § 12.

Amendments. The 2009 amendment deleted “light” preceding “beer” in (a)(1), and made minor stylistic and punctuation changes.

The 2019 amendment inserted “hard cider” in (a)(1).

3-4-1002. Rules.

The Alcoholic Beverage Control Division may adopt rules to carry out this subchapter, to establish appropriate application forms, permit forms, and procedures, and to do all other things necessary to implement this subchapter.

History. Acts 2009, No. 294, § 11.

3-4-1003. Unauthorized sales — Penalties.

An unauthorized sale under the restaurant beer and wine permit created in this subchapter is subject to the same penalties as established for other on-premises retail permits pursuant to this title.

History. Acts 2009, No. 294, § 11.

Chapter 5 Beer and Wine — Manufacture, Sale, and Transportation Generally

Publisher's Notes. This chapter contains provisions which exclusively regulate the manufacture, sale, and transportation of beer and wine. However, beer and wine are also regulated under provisions of this title governing “alcoholic beverages” generally, with the applicability of such provisions frequently dependent upon the alcoholic content of the beverage or, in the case of wine, its place of manufacture. Consequently, the provisions of this chapter must be read in conjunction with the remainder of the title in order to form a complete picture of the regulatory scheme as it applies to beer and wine. Specific provisions governing excise taxes on beer and wine, local option elections for beer, and on-premises consumption of wines are found in chapters 7-9.

Research References

ALR.

Choice of law as to liability of seller for injuries caused by intoxicated person. 2 A.L.R.4th 952.

Intoxicating liquors: products liability. 42 A.L.R.4th 253.

Subchapter 1 — General Provisions

Effective Dates. Acts 1941, No. 304, § 2: approved Mar. 26, 1941. Emergency clause provided: “It is found that there is a great need for industries in the State of Arkansas for the purpose of decreasing unemployment, increasing revenues, and minimizing the consumption of intoxicating liquors, and that the manufacture and sale of native wines will relieve this need. It is therefore declared that an emergency exists, and this act, being necessary for the immediate preservation of the public peace, health, and safety, shall take effect and be in full force from and after its passage.”

Acts 1977, No. 467, § 3: Mar. 17, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that more strict control over the distribution of beer within this state is needed; that the current statutory law in this area is inadequate; and that this act is required to give direction to the Alcoholic Beverage Control Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from the date of its approval.”

Acts 1999, No. 1065, § 6: Emergency clause failed to pass. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that present law is inadequate as it relates to the serving of alcoholic beverages at festivals; that this act clarifies that law; and that this act should go into effect as soon as possible so that the benefits hereof will be available during the upcoming festival season. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

3-5-101. Wholesaler of beer and light wine may sell malt liquor.

A person, firm, or corporation having a permit to sell beer and light wine at wholesale shall be permitted to sell to liquor retailers malt liquor containing greater than five percent (5%) of alcohol by weight.

History. Acts 1965, No. 165, § 1; A.S.A. 1947, § 48-504.3; Acts 2013, No. 527, § 4.

Amendments. The 2013 amendment rewrote the section heading and the section text.

Cross References. Wholesalers, § 3-4-605.

3-5-102. Additional license to sell native wines not required.

Any retail liquor dealer who has been duly licensed as such shall have the right without any additional license fee to sell native wines manufactured from fruits, vegetables, and other products grown in the State of Arkansas.

History. Acts 1941, No. 304, § 1; A.S.A. 1947, § 48-625.

Cross References. Retail permits, § 3-4-604.

3-5-103. Distribution areas.

All beer wholesalers in this state shall notify the Alcoholic Beverage Control Board of the brand name of all beer to be distributed and of the agreement between the applicant and the brewer as to the geographical territory wherein the applicant may distribute beer.
In the event an agreement between a beer wholesaler and a brewer concerning the geographical territory within which the wholesaler may distribute beer is modified or changed as to the geographical territory, then the beer wholesaler shall notify the board of a new agreement or modification of agreement within sixty (60) days of the modification agreement or new agreement.
It shall be unlawful for any wholesale beer distributor to sell beer outside the geographical territory described in the notice given the board.

History. Acts 1977, No. 467, § 1; A.S.A. 1947, § 48-513.1.

3-5-104. Wine tasting events.

1. Native wineries and licensed wine and spirits wholesalers, upon prior approval by the Alcoholic Beverage Control Division, shall be allowed to conduct wine tasting events for educational and promotional purposes at any location in this state without obtaining a wine sampling permit under this section if written notice is given to the division at least ten (10) days prior to the event.
2. Requests for approval to conduct wine tasting events must be received by the division at least ten (10) days prior to the event.
1. A person, other than a native winery, licensed to sell wine, beer, or spirits under a retail liquor permit as defined in § 3-4-604 may conduct tasting events for educational and promotional purposes on the person's premises after obtaining a sampling permit from the division as provided in subsection (f) of this section.
2. 1. Wine, beer, or spirits purchased by the person permitted under this section to conduct a tasting event shall not be exempt from the gross receipts and use taxes.
  2. If the person removes wine, beer, or spirits from his or her inventory for use in a tasting event, the wine, beer, or spirits shall be subject to the gross receipts taxes as a withdrawal from stock.
3. A wholesaler may not:
  1. Offer special discounts on wine, beer, or spirits sold for the purpose of a tasting event; or
  2. Provide wine, beer, or spirits without charge to a person licensed to sell wine at retail for the purpose of a tasting event.
No tasting event may be held pursuant to this section in any facility licensed by the division.
No motor vehicle in which supplies for tasting events are carried and no person shall be subject to arrest nor shall the supplies be subject to seizure for over possession in a dry area.
The criminal penalties for drinking in public as prescribed by § 5-71-212(c) are not applicable to any tasting event approved by the division pursuant to this section.
1. The Director of the Alcoholic Beverage Control Division may issue a sampling permit if the applicant:
  1. Is licensed by the director to sell wine, beer, spirits, or any combination, at retail; and
  2. Pays a license fee of:
    1. Five hundred dollars ($500) for either a wine license, beer license, or spirits license; or
    2. One thousand dollars ($1,000) for a combined wine, beer, and spirits license.
2. 1. The sampling permit allows the person to conduct tasting events on the person's premises during regular hours of operation. A sampling permit shall expire on June 30 of each year.
  2. The samples shall be limited to a total of:
    1. Three (3) one-half ounce (0.5 oz.) wine servings per customer each day for on-premises consumption;
    2. Two (2) two ounce (2 oz.) beer servings per customer each day for on-premises consumption; and
    3. Two (2) one-half ounce (0.5 oz.) spirit servings per customer each day for on-premises consumption.
3. The director may promulgate rules to administer and enforce this section.

History. Acts 1993, No. 1258, §§ 1-4; 2005, No. 1544, § 1; 2007, No. 455, § 1; 2009, No. 548, § 2.

Publisher's Notes. Acts 1993, No. 1258, § 5, provided:

“Arkansas Code §§ 3-8-209, 3-8-311, 3-8-312, and 3-3-306 are repealed to the extent they conflict with this act.”

Amendments. The 2005 amendment, in (a)(1), substituted “licensed wine and spirits” for “licensed and wine spirits,” “without obtaining a wine sampling permit under this section if” for “provided that” and “ten (10)” for “five (5)”; substituted “ten (10) days” for “two (2) weeks” in (a)(2); added present (b) and (f); and redesignated former (b)-(d) as present (c)-(e).

The 2007 amendment deleted “wine” preceding “tasting” and inserted “beer, or spirits” throughout (b), (c) and (d); in (d), deleted “in possession of supplies for wine tasting events approved pursuant to this section” following “person”; rewrote (f)(1) and (f)(2); and made stylistic and related changes.

The 2009 amendment deleted “wine” preceding “tasting” in (b)(3)(A).

3-5-105. Beer festival permit.

1. The Director of the Alcoholic Beverage Control Division may issue a temporary permit to authorize the following:
  1. A festival to be conducted over a period not to exceed three (3) days;
  2. The consumption by persons of legal age of beer and malt beverages, as defined by § 3-5-1202, and hard cider on the festival grounds;
  3. The permittee to charge an entry fee for persons wishing to attend the festival and to distribute beer, malt beverages, and hard cider on any day of the week, including Sunday, as provided for in this section, pursuant to the following conditions:
    1. The distribution of beer, malt beverages, and hard cider, as authorized in this section, shall be limited to the secure area as prescribed in subdivision (a)(1)(D) of this section; and
    2. The distribution of beer, malt beverages, and hard cider on Sunday, as authorized in this section, shall be limited to the hours between 12:00 noon and 10:00 p.m. central time and be limited to those areas where the retail sale and consumption of alcoholic beverages on Sunday has been approved pursuant to Arkansas law;
  4. The festival permittee to designate the permitted area on the festival grounds to be approved by the director, such that it is a secure area which will not allow unsupervised access and egress; and
  5. Participation in this event by any legal brewery, microbrewery, microbrewery-restaurant, distributor, wholesaler, brewpub, small brewery, hard cider manufacturer, or small brewery tap room, whether or not it is currently registered or its product is licensed in the State of Arkansas.
2. 1. The director shall not issue this permit if the proposed location is in a dry area.
  2. The director may issue this permit only to a charitable or nonprofit organization as provided for by the Alcoholic Beverage Control Board, except that this permit may not be issued to a charitable or nonprofit organization holding a private club license.
3. The permittee shall maintain the permit in conjunction with any other legally obtained permit.
1. The permittee shall provide to the board no later than one (1) week prior to the event a complete listing of those nonlicensed participants and the products they will be providing. The list shall include proof of delivery, such as an invoice, from the participant which will denote such product or products being provided to the festival.
2. The permittee may reimburse participants, if so desired, for the cost of the product provided for the licensed event.
3. 1. The permittee shall designate one (1) wholesale distributor currently licensed in Arkansas to act as a temporary warehouse for those nonlicensed products to be stored prior to or following the event.
  2. Those products shall be stored for a period not to exceed one (1) week prior to and following the event.
  3. The designated wholesaler shall not be in violation of § 3-3-216, § 3-5-221, § 3-5-1307, or § 3-7-104.
4. 1. The designated wholesaler shall pay the Miscellaneous Tax Section of the Office of Excise Tax Administration a wholesalers tax of $7.507808 per barrel equal to thirty-one gallons (31 gals.) for each barrel of beer, malt beverage, or hard cider provided for this festival by any participant whose product is not currently licensed or registered in the State of Arkansas.
  2. This tax shall be paid in conjunction with the currently required miscellaneous tax and shall be paid by the same means as are currently required in the normal course of paying the miscellaneous tax.
  3. The designated wholesaler shall be reimbursed for this tax by the permittee and may collect a handling fee for services rendered in warehousing such nonlicensed product for this festival.
Neither the participants in this event nor their products need be registered under § 3-2-409, § 3-5-1303, or § 3-7-106, nor shall they be in violation of § 3-3-216, § 3-3-304 [repealed], § 3-3-305 [repealed], § 3-5-205, § 3-5-210, § 3-5-211, § 3-5-216, § 3-5-217, or § 3-5-221 for this event only.
The festival participants and attendees while on the festival grounds shall not be found to be in violation of § 5-71-212(c) or (d) regarding public consumption. This does not exclude any participant or attendee from being found in violation of § 5-71-212(a) or (b) regarding public intoxication.
The permittee shall pay to the board a fee of two hundred fifty dollars ($250) per event for a temporary permit under this section.
Every provision of this section shall be subject to all beer, malt beverage, and hard cider laws and rules, except that conflicting beer, malt beverage, and hard cider laws and rules shall be inapplicable to any provision of this section to the extent that they conflict herewith.
A small brewery holding a distribution permit and a beer festival permit may accept and hold beers from out-of-state breweries and distributors for the purpose of pouring at beer festivals.

History. Acts 1999, No. 1065, § 1; 2009, No. 294, § 12; 2017, No. 950, §§ 1, 2; 2019, No. 315, § 60; 2019, No. 691, §§ 13-15.

Amendments. The 2009 amendment, in (e), substituted “two hundred fifty dollars ($250)” for “fifty dollars ($50.00)” and inserted “for a temporary permit under this section.”

The 2017 amendment inserted “small brewery, or small brewery tap room” in (a)(1)(E); and added (g).

The 2019 amendment by No. 315 substituted “rules” for “regulations” twice in (f).

The 2019 amendment by No. 691 inserted “and hard cider” throughout (a) and twice in (f); inserted “hard cider manufacturer” in (a)(1)(E); inserted “or hard cider” in (b)(4)(A); and made stylistic changes.

3-5-106. Cabins and cottages.

For purposes of this section, “cabins and cottages” means corporations, partnerships, individuals, limited liability corporations, and other legal entities whose primary function is to provide overnight accommodations to the public, not exceeding a total of twenty (20) guest rooms on the premises, whether operated by the business owner or not.
Cabins and cottages are authorized to give a complimentary bottle of wine to their guests.

History. Acts 2001, No. 1487, § 1.

3-5-107. Unlawful pricing by brewers and manufacturers.

As used in this section, “discriminate” means the granting of a more favorable price, allowance, rebate, refund, commission, or discount to one (1) Arkansas distributor or wholesaler than to another Arkansas distributor or wholesaler.
It is unlawful for:
1. A brewer, manufacturer, or other person, firm, or corporation engaging in the business of selling beer, ale, or other malt beverage or malt cooler to a distributor or wholesaler to discriminate in price, allowance, rebate, refund, commission, or discount between distributors or wholesalers licensed in Arkansas; or
2. 1. A brewer, manufacturer, or other person, firm, or corporation engaged in the business of selling beer, ale, or other malt beverage or malt cooler to a distributor or wholesaler to sell or deliver beer, ale, or other malt beverage or malt cooler to a licensed distributor or wholesaler unless the brewer, manufacturer, person, firm, or corporation files the brewery or dock price of the beer, ale, or other malt beverage or malt cooler by brand and container size with the Director of the Alcoholic Beverage Control Division.
  2. A brewery or dock price schedule increase shall not take effect until fourteen (14) days after receipt of the brewery or dock price schedule by the director.
  3. A brewery or dock price schedule decrease shall not take effect until two (2) days after receipt of the brewery or dock price schedule by the director.
A violation of this section by a brewer, manufacturer, or other person, firm, or corporation engaging in the business of selling beer, ale, or other malt beverage or malt cooler to a distributor or wholesaler is grounds for denial or suspension of the license of the brewer, manufacturer, or other person, firm, or corporation engaging in the business of selling beer, ale, or other malt beverage or malt cooler to a distributor or wholesaler or other penalties as determined by the director under § 3-2-212.
The director shall adopt rules to implement this section.

History. Acts 2009, No. 783, § 1.

Subchapter 2 — Beer and Light Wine

Publisher's Notes. This subchapter originally applied to beer and light wine of an alcoholic content not in excess of 3.2% by weight. Pursuant to § 3-1-103, this subchapter was made to apply to malt and vinous beverages having an alcoholic content of not more than 5% by weight.

Effective Dates. Acts 1933 (1st Ex. Sess.), No. 7, § 30: approved Aug. 24, 1933. Emergency clause provided: “It is found as a fact that since the Congress of the United States has authorized the manufacture and sale of light wines and beers as herein defined, they are being sold throughout the state, and if operation of this act is delayed they will be generally sold, possessed, transported, and used, with prevention and proper policing impossible; and it is further found that the tax revenues provided for in this act are immediately needed by the state to prevent deficits in the matters that are the objects of the taxes stated herein; an emergency is therefore declared and it is necessary for the preservation of the public peace, health, and safety that this act shall become effective without delay, and this act shall take effect and be in force at once.”

Acts 1937, No. 261, § 3: Mar. 17, 1937. Emergency clause provided: “It is found that a great number of the places throughout the State of Arkansas where wines and beer are licensed to be sold and dispensed are being so operated and conducted as to be inimical to the public peace, health, and safety and that this act is consequently necessary for the preservation of the public peace, health, and safety; therefore, an emergency is hereby declared to exist, and this act shall be effective immediately upon its adoption and approval.”

Acts 2015, No. 857, § 12: Mar. 31, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act is essential to the public interest and operation of the alcohol laws in the State of Arkansas; that this act eliminates conflicting language and allows consistent application of alcohol laws; that this act is immediately necessary due to the substantial growth and continued expansion of the brewing industry in Arkansas; that clear and consistent application of the law to the brewing industry is in the public’s immediate interest as is controlling the distribution of alcoholic beverages within the state. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

Alcoholic Content.

Alcoholic content of a malt beverage controls in determining whether it should be taxed, regulated, and controlled as a “spirituous, vinous, and malt liquor” under Acts 1935, Nos. 108 and 109 or as “beer and light wines” under this subchapter. Scurlock v. Central Distribs., Inc., 223 Ark. 954, 269 S.W.2d 790 (1954).

3-5-201. Purpose.

The purpose of this subchapter is to legalize the manufacture and sale within this state of beer and light wine of an alcoholic content not in excess of five percent (5%) by weight and to so regulate the business of manufacturing and selling such liquors as to prevent the illicit manufacture and consumption of liquors having an alcoholic content in excess of five percent (5%) by weight, the manufacture and sale of which it is not the purpose of this subchapter to legalize.
It is further the purpose of this subchapter to impose certain licenses, fees, and taxes on, and to regulate, such businesses.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 1, 10; Pope's Dig., §§ 14192, 14202; A.S.A. 1947, §§ 48-501, 48-501n.

Publisher's Notes. Acts 1933 (1st Ex. Sess.), No. 7, § 29, provided in part that all local or special laws forbidding the sale of light wines and beer were repealed.

3-5-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Beer” means any fermented liquor made from malt or any substitute therefor and having an alcoholic content not in excess of five percent (5%) by weight;
“Brewery” means any place where beer as defined by this section is manufactured for sale or consumption;
“Consumer” means a person who receives or in any way comes into possession of beer and light wines as defined in this section for the purpose of consuming them, giving them away, or distributing them in any way other than by sale, barter, or exchange;
“Distributor” means any person who receives, either from within or from without this state, light wines and beer as defined by this section for the purpose of distributing them to the dealer either in the original stamped packages as received from the brewery or winery or in bottles as received from the bottler;
1. “Home-brewed beer” means beer, ale, porter, stout, and other similar fermented beverages containing one-half of one percent (0.5%) or more of alcohol by volume brewed or produced from malt, wholly or in part, or from a substitute for malt, for consumption but not for sale.
2. Any manufacturer of home-brewed beer must have attained twenty-one (21) years of age;
“Intoxicating liquor” means vinous, ardent, malt fermented liquor or distilled spirits with an alcoholic content in excess of five percent (5%) by weight;
“Light wine” means the fermented juice of grapes or other small fruits, including berries, and having an alcoholic content not in excess of five percent (5%) by weight;
“Person” means one (1) or more persons, a company, a corporation, a partnership, a syndicate, or an association;
“Rule” or “proper rule” means such reasonable rules authorized by law and made and promulgated by the Director of the Alcoholic Beverage Control Division with the approval of the Alcoholic Beverage Control Board;
“Retail dealer” means any person who sells to the consumer light wines or beer in quantities of less than sixteen gallons (16 gals.);
“Warehouse” means a house or building equipped to maintain such temperature as may be required by the rules promulgated by the director for the storage of beer or wine and a place at which taxes on the beer or wine shall be collected;
“Wholesale dealer and distributor” means any person who sells beer or light wines to retail dealers in quantities of three gallons (3 gals.) or more; and
“Winery” means any place where light wine as defined by this section is manufactured for sale or consumption.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 2; Pope's Dig., § 14194; A.S.A. 1947, § 48-503; Acts 1995, No. 1051, § 1; 2019, No. 315, § 61; 2019, No. 861, § 1.

Publisher's Notes. The printed Acts of 1933 (1st Ex. Sess.) contained an erroneous definition of the term “light wine” which merely duplicated the definition of beer. The definition of “light wine” in this section is that which appears in the enrolled act.

Amendments. The 2019 amendment by No. 315, in (9), substituted “Rule” for “Regulation”, “proper rule” for “proper regulation”, and “rules” for “regulations”.

The 2019 amendment by No. 861 rewrote (5)(A).

Case Notes

Cited: McKeown v. State, 197 Ark. 454, 124 S.W.2d 19 (1939); Leach v. Cook, 211 Ark. 763, 202 S.W.2d 359 (1947); Carter v. Reamey, 232 Ark. 211, 335 S.W.2d 298 (1960).

3-5-203. Penalties.

Any violation of the provisions of this subchapter or of any rule or regulation of the Director of the Alcoholic Beverage Control Division or the violation of any rule or regulation of city legislative bodies relative to the conduct of this business shall be a Class B misdemeanor.
Any person convicted of violating any provision of this subchapter defined as a misdemeanor by this subchapter and for which no specific punishment is provided shall be punished as otherwise provided by law.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 17, 29; Pope's Dig., §§ 14209, 14222; A.S.A. 1947, §§ 48-525, 48-526; Acts 2005, No. 1994, § 371.

Amendments. The 2005 amendment, in (a), inserted “Class B” and deleted the former second sentence in (a), which stated: “The punishment shall be by a fine of not more than five hundred dollars ($500) and imprisonment for not more than six (6) months in the discretion of the court.”

Cross References. Misdemeanors, classification, § 5-1-107.

Misdemeanors, imprisonment and fines, §§ 5-4-201, 5-4-401.

Case Notes

Revocation of License.

The former provisions of this section empowering the convicting court to revoke liquor licenses were repealed by the enactment of § 3-2-212, which vests the same power exclusively in the Director of the Alcoholic Beverage Control Division. State v. Lawrence, 246 Ark. 644, 439 S.W.2d 819 (1969).

Special Acts.

Special acts prohibiting the sale of intoxicating liquors within three miles of the University of Arkansas were expressly repealed by Acts 1933 (1st Ex. Sess.), No. 7, § 29. State ex rel. Trimble v. Kantas, 191 Ark. 22, 82 S.W.2d 847 (1935).

3-5-204. Manufacture, sale, etc., a privilege.

The business of manufacturing, handling, receiving, distributing, or selling the products defined in § 3-5-202 is declared under the Constitution and laws of the State of Arkansas to be a privilege.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 1; Pope's Dig., § 14192; A.S.A. 1947, § 48-501.

Cross References. Exhibition of permit, § 3-4-102.

3-5-205. Privilege tax — Levy and collection — Exception — Definition.

For the privilege of doing business, there shall, each fiscal year beginning July 1, be assessed, levied, and collected from each:
1. 1. Wholesale dealer or broker, or distributor in light wine or beer, a special tax of one thousand dollars ($1,000) for each county in which the broker, distributor, or wholesale dealer operates.
  2. However, the special tax shall not exceed five thousand dollars ($5,000) for any one (1) broker, distributor, or wholesale dealer;
2. Manufacturer of beer, a special tax of seven hundred fifty dollars ($750); and
3. Retail dealer of nonintoxicating liquor, a special tax of three hundred fifty dollars ($350).
The tax shall be due and payable at each place where the business of the wholesale dealer, manufacturer, distributor, or retail dealer, as the case may be, is carried on.
All special taxes shall become due and payable on or before June 30 of each calendar year for the fiscal year beginning July 1 or on commencing business on which the tax is imposed.
The tax shall be levied, assessed, and collected by such methods, within the limitations prescribed in this subchapter, and under such rules as may be regularly provided.
1. However, a grower of grapes and other fruits may manufacture and sell wine upon the premises of the grower in original packages of not less than one-fourth of a gallon (¼ gal.) from grapes and other fruits actually grown by the party so manufacturing wine upon his or her own premises, free from the license fees and taxes provided in this subchapter.
2. A “grower” is defined to be one who actually grows and produces grapes and other fruits upon his or her own premises or upon the premises occupied by him or her as a tenant.
1. However, any person in this state may manufacture home-brewed beer or home-manufactured wine:
  1. Upon his or her own premises free from the license fees and taxes provided in this subchapter;
  2. For consumption by the manufacturer and his or her family and guests, but not for sale; and
  3. In quantities per calendar year not to exceed:
    1. Two hundred gallons (200 gals.) if there are two (2) or more adults in the household; or
    2. One hundred gallons (100 gals.) if there is only one (1) adult in the household.
2. While the manufacture of beer or wine is declared to be a privilege, the home manufacture of beer or wine in quantities not to exceed two hundred gallons (200 gals.) per calendar year shall be exempted from § 3-4-101, § 3-4-602, § 3-5-205(a)-(e), § 3-5-206, and § 3-5-211.
Home-brewed beer may be removed from the manufacturer’s premises for personal or family use, including without limitation, for organized affairs, exhibitions, competitions, and tastings.
A microbrewery-restaurant is exempt from this section.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 4, 11; Pope's Dig., §§ 14196, 14203; Acts 1953, No. 372, § 1; 1957, No. 375, § 1, as added by 1953, No. 118, § 36(F), as added by 1971, No. 585, § 12; 1983, No. 420, § 1; A.S.A. 1947, §§ 48-504, 48-507, 48-313.1; Acts 1993, No. 528, §§ 1, 2; 1995, No. 1051, § 2; 2001, No. 1813, § 1; 2009, No. 294, § 13; 2015, No. 857, § 1; 2019, No. 315, § 62; 2019, No. 861, § 2.

Amendments. The 2009 amendment, in (a), redesignated (a)(1), substituted “one thousand dollars ($1,000) for “two hundred fifty dollars ($250)” in (a)(1)(A), substituted “five thousand dollars ($5,000)” for “one thousand dollars ($1,000)” in (a)(1)(B), substituted “seven hundred fifty dollars ($750)” for “five hundred dollars ($500)” in (a)(2), substituted “three hundred fifty dollars ($350)” for “two hundred dollars ($200)” in (a)(3), and made related and minor stylistic changes.

The 2015 amendment added (g).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (d).

The 2019 amendment by No. 861 added (f)(1)(D) [now (g)].

Cross References. Native brewery, exempt from certain taxes, § 3-5-1408.

Renewal of permits, time of payment, § 3-4-216.

Tax on beer, § 3-7-104.

Case Notes

Wholesalers.

This section has been construed to require each wholesale distributor of light wines and beer to pay a tax of $50.00 for each county in which he operates but a maximum fee of $250 for each warehouse serving five counties or more. Watson v. Harper, 188 Ark. 996, 68 S.W.2d 1019 (1934).

3-5-206. Issuance of state permit.

The payment of the special tax provided in § 3-5-205 shall be evidenced by a permit issued by the Director of the Alcoholic Beverage Control Division.
A permit shall be applied for by the special taxpayer and issued by the director on such forms and under such rules as may be prescribed.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 4; Pope's Dig., § 14196; Acts 1953, No. 372, § 1; 1957, No. 375, § 1, as added by 1953, No. 118, § 36(F), as added by 1971, No. 585, § 12; A.S.A. 1947, § 48-504; Acts 2019, No. 315, § 63.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (b).

3-5-207. Scope of state permit.

Except as provided in subsection (b) of this section, any permit issued under the provisions of § 3-5-206 authorizing the sale of light wines or beer for consumption under the provisions prescribed in the permit shall be construed to authorize the sale of such liquor by the bottle, by the glass or draught, and in or from the original package.
No permit shall be required for the home manufacture of beer or wine in quantities not to exceed two hundred gallons (200 gals.) per calendar year under §§ 3-4-101, 3-4-602, 3-5-206, or 3-5-211 as may otherwise be required of other manufacturers.
Any permit issued under the provisions of § 3-5-206 authorizing the manufacture of beer shall allow an Arkansas beer manufacturer to sell and ship to business entities licensed and qualified in the other states to receive beer products brewed in Arkansas.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 15; Pope's Dig., § 14207; A.S.A. 1947, § 48-520; Acts 1995, No. 1051, § 3; 1997, No. 1061, § 1; 2001, No. 1813, § 2.

3-5-208. Duration of state permits.

Permits issued under the provisions of § 3-5-206 for the privilege of doing business as mentioned in § 3-5-206 shall be for an indeterminate period.
The permit fees levied by § 3-5-205 shall be paid annually as therein provided. So long as the annual permit fees are paid, all permits issued shall remain in full force and effect until revoked or suspended.

History. Acts 1953, No. 247, § 1; A.S.A. 1947, § 48-504.1.

3-5-209. Transfer of permit — Dancing privileges — Inspection fee.

A person that holds an alcoholic beverage control permit may request that certain special applications be made on the permit as follows:
1. A permit holder may request a transfer of location of a permit to a new location subject to any restrictions or qualifications that may apply to the permit;
2. A permit holder requesting the addition of dancing of any kind on the permit may request dancing subject to any restrictions that may apply to the permit;
3. A permit holder may request a change of trade name for the permitted business subject to any restrictions that apply to the permit;
4. A partnership, corporation, or limited liability company may request a change of manager application so that the existing manager of the partnership, corporation, or limited liability company is replaced by a new manager subject to any restrictions that may apply to the permit; and
5. An on-premises consumption permittee which has filed an entertainment activity sheet as required by the Alcoholic Beverage Control Division rules may file a request for permission to amend the entertainment activity sheet that was filed with the permit, subject to any restrictions or qualifications that apply to the permit.
1. The fee for any of the special applications set forth in subsection (a) of this section is fifty dollars ($50.00) for each special application.
2. The special application fee is payable at the time the special application is made.

Amendments. The 2009 amendment rewrote the section.

3-5-210. Sale or manufacture without state permit unlawful.

Except as provided in subsection (b) of this section, any person that shall brew, manufacture, or sell any liquor as defined by this subchapter without first having secured a permit from the Director of the Alcoholic Beverage Control Division authorizing the brewing, manufacturing, or sale of such liquor shall be guilty of a Class B misdemeanor.
Home manufacturers of beer or wine in quantities not to exceed two hundred gallons (200 gals.) per year shall be exempt as provided in § 3-5-205(f)(2) and § 3-5-207(b) from the permit requirements for the manufacture of beer and wine and shall not be prosecuted for brewing or manufacturing beer or wine without a permit.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 12; Pope's Dig., § 14204; A.S.A. 1947, § 48-513; Acts 1995, No. 1051, § 4; 2001, No. 1813, § 3; 2005, No. 1994, § 372.

Amendments. The 2005 amendment, in (a), inserted “Class B” and deleted “and shall be punished as provided in § 3-5-203” from the end.

3-5-211. Local permit required.

It shall be unlawful for any person to sell, distribute, or manufacture the liquors prescribed in this subchapter without first having made application to and obtained a permit from the county or city where the business is to be conducted, and the authority is herein delegated to the counties and cities.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 24; Pope's Dig., § 14216; A.S.A. 1947, § 48-515.

Case Notes

Cited: Brown v. Cheney, 233 Ark. 920, 350 S.W.2d 184 (1961).

3-5-212. County and municipal retailers' permits.

1. Before any person shall be authorized to offer for sale at retail the liquors as prescribed in this subchapter in any county, or if within the incorporated limits of any town or city, then he or she shall apply to and secure a permit or license from the county clerk if outside incorporated limits of a city or town or to the city clerk or town recorder if within the incorporated limits of a city or town, a permit or license.
2. The county clerk or city clerk or recorder shall charge for the permit or license a sum not in excess of:
  1. Fifteen dollars ($15.00) for a retailer whose total gross annual sales do not exceed one thousand dollars ($1,000); and
  2. Twenty dollars ($20.00) for retailers whose total gross annual sales shall not be in excess of two thousand dollars ($2,000).
3. The city clerk or recorder or county clerk shall be empowered to collect from the retailers an additional five dollars ($5.00) for each one thousand dollars ($1,000) gross annual business in excess of two thousand dollars ($2,000).
The permits to retailers shall not be granted or issued by any city clerk or recorder or any county clerk until the retailer shall exhibit the state permit granted or issued to him or her by the Director of the Alcoholic Beverage Control Division or the director's agent.
The state permit shall be prima facie evidence of the retailer's right to apply for and purchase a city or county permit, and it shall be unlawful for any city clerk, recorder, or county clerk to refuse to issue the permit upon proper application by the retailer.
Whenever it shall appear to the city clerk or recorder or to the county clerk that a retail dealer has secured a permit for fifteen dollars ($15.00) when a larger amount should have been paid therefor, he or she require the payment of the difference or cancel the permit.
The tax shall be due and payable at each place where the retail dealer carries on business.
The city clerk or county clerk charged with the duty of collecting the license fees shall notify the director of the identity of retailers failing to comply with the provisions of this section. The director shall then notify wholesale dealers to discontinue sales to delinquent retailers. When the license fee is paid, the appropriate clerk shall notify the director that the retailer has paid the fee. The director shall notify wholesalers to resume sales to the retailers.
Any wholesaler who continues to sell to a retailer after notification from the director to discontinue sales shall be subject upon conviction to a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).

History. Acts 1933 (1st Ex. Sess.), No. 7, § 25; Pope's Dig., § 14217; Acts 1955, No. 353, § 1; A.S.A. 1947, § 48-516.

3-5-213. Cities and towns — Regulation of retailers.

All incorporated cities and towns in the State of Arkansas are authorized to pass proper ordinances governing the issuance and revocation of licenses for the retail sale of the liquors as prescribed in this subchapter, within the corporate limits. Cities and towns may impose additional restrictions, fixing zones and territories and providing hours of opening and closing and such other rules and regulations as will promote public health, morals, and safety which they may by ordinance provide.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 27; Pope's Dig., § 14219; A.S.A. 1947, § 48-517.

3-5-214. Oath by applicant for permit — Prohibited interests.

Before any permit authorized by this subchapter shall be issued and delivered to any applicant therefor, the applicant shall make and subscribe to an oath that:
1. He or she will not allow any intoxicating liquor as defined by this subchapter of any kind or character, including beer, wine, and distilled spirits, having an alcoholic content in excess of five percent (5%) by weight to be kept, stored, or secreted in or upon the premises described in the permit; and
2. The applicant will not otherwise violate any law of this state or knowingly allow any other person to violate any statute while in or upon the premises.
No manufacturer, distributor, or wholesale dealer to whom or to which this subchapter applies shall have any direct or indirect interest in the business of any person, firm, or corporation applying for and securing or holding a permit as a retail dealer, or in the furnishings or fixtures used in his or her or its place of business, or any lien thereon.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 13; Pope's Dig., § 14205; A.S.A. 1947, § 48-514.

Case Notes

Failure to Take Oath.

Failure to take oath provided by this section would be sufficient reason in itself to cancel a permit. Blum v. Ford, 194 Ark. 393, 107 S.W.2d 340 (1937).

3-5-215. Qualifications of retail permittees.

No permit shall be granted to any permittee by the state or any county or municipality to a person who is not a resident of the State of Arkansas on the date of application.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 24; Pope's Dig., § 14216; A.S.A. 1947, § 48-515; Acts 1991, No. 606, § 4.

Publisher's Notes. Acts 1991, No. 606, § 11, provided:

“It is the intent of this law to no longer require citizenship of the United States in order for a person to hold certain ABC licenses and to eliminate the requirement that persons be a resident of the State of Arkansas for two (2) years prior to the time that they make application for an ABC license. It is also the intent of this law that persons no longer be required to be registered voters in the county in which the permit is located and it is further intended that a person must either reside in the county where the premises is located or live within twenty-five (25) miles of the address of the permitted outlet. It is also the intent of this legislation that proof of payment of personal property taxes to the individual counties will no longer be required in order for a person to apply for or renew an ABC license. It is the further intent of this law that various application requirements regarding convicted felon status, status as it relates to violation of liquor laws of this state or any other state and revocation of permits shall be made uniform among various permits issued by the ABC Division. Therefore, any laws that may conflict with this act shall be and the same hereby are repealed.”

Case Notes

Sale of Premises.

Contract for sale of liquor store to nonresident purchasers was not illegal where purchasers knew at the time of the purchase that as nonresidents a liquor permit could not be transferred or issued to them. Smith v. Ferguson, 302 Ark. 388, 790 S.W.2d 162 (1990).

Cited: Brown v. Cheney, 233 Ark. 920, 350 S.W.2d 184 (1961).

3-5-216. Warehousing of beer and light wines.

Light wines or beer upon which the tax prescribed by this subchapter has not been paid may be transported from without this state to a distributor within this state and may be received and kept in storage at a distributor's place of business in this state, upon the execution of such bond as the Director of the Alcoholic Beverage Control Division may by rule prescribe.
The director shall:
1. Require the storage of all beer or wine in state-supervised warehouses, designated and licensed by the director before the sale thereof;
2. Provide for the supervision, inspection, and collection of the costs thereof of the designated warehouses;
3. Declare it to be unlawful to offer for sale any beer or wine not thus warehoused, inspected, and approved; and
4. Confiscate and destroy any beer or wine not thus warehoused, inspected, and approved or which in any manner violates any provision of this subchapter.
The Secretary of the Department of Finance and Administration shall provide for the collection of all fees and taxes imposed by this subchapter upon beer and wine at designated warehouses as provided for in subdivision (b)(1) of this section.
All distributors and wholesalers licensed as provided in § 3-5-206 shall be given a warehouse permit as provided in this section.
Every person otherwise qualified and who can furnish proper bond and a suitable warehouse shall be entitled to a license as a wholesale distributor of beer.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 7; Pope's Dig., § 14199; A.S.A. 1947, § 48-508; Acts 2019, No. 910, § 3309.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (c).

Cross References. Possession, transportation, or importation of beer, rules and regulations, § 3-7-404(c).

Transportation of untaxed liquor prohibited, § 3-3-216.

3-5-217. Transportation of products.

1. It shall be lawful to transport the products defined in § 3-5-202 if the tax upon the products has been paid.
2. It shall be lawful for any brewery in the State of Arkansas to transport and ship beer out of state by common carrier or other appropriate parcel delivery service and for common carriers and other appropriate parcel delivery services to accept beer from Arkansas breweries for delivery outside the State of Arkansas to business entities licensed and qualified in the other states.
It shall be unlawful to transport into, out of, or within this state any light wines or beer upon which the state tax prescribed by this subchapter has not been paid except:
1. Where light wines or beer, having first been ordered by or sold to a distributor within this state, is being shipped in due course of business from a brewer, manufacturer, dealer, or distributor without this state to a bonded distributor within this state; or
2. Unless the shipment is in interstate commerce and is passing from a point of origin outside of this state through this state into another state.
The transportation of such liquor into or within this state in all cases shall be under such rules as may be regularly prescribed.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 1-A, 9; Pope's Dig., §§ 14193, 14201; A.S.A. 1947, §§ 48-502, 48-510; Acts 1997, No. 1061, § 2; 2019, No. 315, § 64.

Publisher's Notes. This section may be affected by § 3-3-216.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (c).

3-5-218. Duplicate bills of lading.

Every railroad company, express company, air transportation company, motor transportation company, steamboat company, or other transportation companies who shall transport into, wholly within, or out of this state, any light wines or beer, whether brewed or manufactured within this state or without this state, when requested by the Director of the Alcoholic Beverage Control Division shall furnish the director a duplicate of the bill of lading covering the receipt for the liquor. This duplicate bill shall show the name of the brewer, manufacturer, or distributor, the name and address of consignor and consignee, the date and place received, and destination and quantity of the liquor received from the manufacturer, brewer, or other consignor for shipment from any point within or without this state to any point within this state.
Any railroad company, express company, air transportation company, motor transportation company, or steamboat company or other transportation companies failing to comply with the requirements of this subchapter shall forfeit and pay to the State of Arkansas the sum of one hundred dollars ($100) for each and every such failure, to be recovered in any court of competent jurisdiction. The director is authorized and empowered to sue in his or her name on the relation and for the use of the State of Arkansas for such recovery.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 18; Pope's Dig., § 14210; A.S.A. 1947, § 48-511.

3-5-219. Records and reports.

Retail and wholesale dealers in light wines or beer, brewers, manufacturers, and distributors shall keep such records and make such reports with respect to the receipt of and the handling of such liquors as the Director of the Alcoholic Beverage Control Division may by regulation prescribe.
The director shall cause a record to be kept of the names and places of business of persons engaged in the brewing or manufacturing and in the sale of beer.
He or she shall also cause a record to be kept of all beer brewed or manufactured and sold, and the amount thereof of each brewer or manufacturer, or sold by every dealer other than a brewer or manufacturer and a record of all forfeitures collected and all expenses incurred in the collection thereof.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 8, 21; Pope's Dig., §§ 14200, 14213; A.S.A. 1947, §§ 48-509, 48-512.

3-5-220. Sale in original, labeled containers.

It shall be unlawful for any person to sell or offer to sell in this state any beer unless the beer shall be sold or offered for sale in the original bottle or original package containing bottles, bearing the original label and the full name of the brewer or manufacturer thereof, both upon the label of the bottle and upon the cap or cork of the bottle. In the case of the sale of beer on draught, the beer shall be drawn from the original container or barrel, having stamped upon the ends thereof the full name of the manufacturer or brewer of the beer therein contained.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 20; Pope's Dig., § 14212; A.S.A. 1947, § 48-521.

Cross References. Labeling of beer involved in fire, wreck, or other casualty, § 3-4-104.

3-5-221. Miscellaneous prohibited practices — Penalties.

1. Any person being either a retail dealer or who knowingly places in his or her stock, who brings upon his or her premises, who has in his or her possession, or who sells or offers for sale any beer or wine on which the tax provided by law has not been paid, in addition to the other fines, penalties, and forfeitures shall be subject to a penalty of twenty-five dollars ($25.00) for each package of untaxed liquor so held or offered for sale.
2. The penalty shall be in the nature of liquidated damages and may be collected by civil action.
It shall be unlawful for any brewer or distributor of light wines or beer to manufacture or knowingly bring upon his or her premises and keep thereon any beer or wine of an alcoholic content in excess of five percent (5%) by weight or any distilled spirits of any alcoholic content whatsoever.
Any person who shall add to or mix with any beer or wine as defined in this subchapter any alcoholic or any other liquid, any alcohol cube or cubes, or any other ingredient or ingredients that will increase or tend to increase the alcoholic content or who shall knowingly offer any such liquor for sale shall be guilty of a violation and shall be fined in any sum not less than one hundred dollars ($100).
1. It shall be unlawful for a licensee or for any agent, servant, or employee of a licensee:
  1. 1. To suffer or permit any dice to be thrown for money or for anything of value or to suffer or permit gambling with cards, dominoes, raffle, or other games of chance or any form of gambling in the place designated by the license or in any booth, room, yard, garden, or other place appurtenant thereto.
    2. Forms of gambling under subdivision (d)(1)(A)(i) of this section do not include:
      1. Charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
      2. A lottery under the Arkansas Scholarship Lottery Act, § 23-115-101 et seq.;
  2. To suffer or permit the licensed premises to become disorderly;
  3. To sell, barter, furnish, or give away to any minor under twenty-one (21) years of age any wine or beer;
  4. To sell, barter, furnish, or possess in the place designated by the license or in any booth, yard, or garden any alcoholic liquors or beverages containing in excess of five percent (5%) of alcohol by weight or to permit any such acts to be done;
  5. To permit any immoral or lascivious conduct on the part of the patrons or others at or in the licensed premises or in any place appurtenant thereto; or
  6. To suffer or permit the use of any profane, violent, abusive, or vulgar language at or in such licensed premises or in any place appurtenant thereto.
2. The acts and conduct of the agents, servants, and employees of a licensee in the conduct of the business shall be deemed the acts and conduct of the licensee.
3. Any violation of the provisions of this subsection shall constitute a Class A misdemeanor, and each day the offense shall be continued shall constitute a separate offense.

History. Acts 1933 (1st Ex. Sess.), No. 7, §§ 16, 19, 26; 1937, No. 261, § 1; Pope's Dig., §§ 14208, 14211, 14218; A.S.A. 1947, §§ 48-522 — 48-524; Acts 2005, No. 1994, § 31; 2009, No. 605, § 10; 2009, No. 606, § 10.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (c); and substituted “Class A misdemeanor” for “misdemeanor and shall be punished by a fine of not more than five hundred dollars ($500) and not more than one (1) year in jail” in (d)(3).

The 2009 amendment by identical acts Nos. 605 and 606 inserted (d)(1)(A)(ii), redesignated the remaining text accordingly, and made a related change.

Case Notes

Minors.

Prohibition against the sale of beer and wine to minors remains in full force and effect since this subchapter was not repealed in its entirety by Alcoholic Control Act which exempts from its provisions malt and vinous beverages containing not more than 5% of alcohol. Digiacomo v. State, 194 Ark. 24, 105 S.W.2d 78 (1937).

Punishment.

Failure of the court to assess any fine or imprisonment against defendant convicted by court of selling beer to a minor was error, since it is beyond the authority of a trial judge, upon a judgment of guilty, to refuse to assess any punishment. State v. Lawrence, 246 Ark. 644, 439 S.W.2d 819 (1969).

Cited: Coburn v. Ark. State ABC Bd., 278 Ark. 514, 647 S.W.2d 445 (1983).

3-5-222. Nudity on premises prohibited — Penalty — Rules.

No person that has received a permit under any law of the State of Arkansas for the sale or dispensing of alcoholic beverages for on-premises consumption shall suffer or permit any person to appear on the permitted premises in such manner or attire as to expose to view any portion of the pubic area, anus, vulva, or genitals or any simulation thereof, nor suffer or permit any female to appear on the premises in such manner or attire as to expose to view any portion of her breast below the top of the areola or any simulation thereof.
Any retail beer permittee violating this section shall be guilty of a Class B misdemeanor.
The Alcoholic Beverage Control Board shall promulgate such rules as it deems necessary for the implementation of this section.

History. Acts 1985, No. 965, §§ 1, 2; A.S.A. 1947, §§ 48-956, 48-957; Acts 2005, No. 1994, § 373; 2019, No. 315, § 65.

Publisher's Notes. Acts 1985, No. 965, §§ 1, 2, are also codified as § 3-9-101.

Amendments. The 2005 amendment substituted “guilty of a Class B misdemeanor” for “subject to the penalties prescribed in § 3-5-203” in (b).

The 2019 amendment substituted “rules” for “regulations” in (c).

3-5-223. Actions to recover taxes.

Where the Secretary of the Department of Finance and Administration finds upon investigation that the state has lost tax on account of the evasion of any provision of law, he or she may bring suit in his or her own name in the proper court for the recovery of such taxes.
Action shall lie against the person evading the tax and against any person who aided, abetted, or assisted in such evasion.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 16; Pope's Dig., § 14208; A.S.A. 1947, § 48-522; Acts 2019, No. 910, § 3310.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

3-5-224. Disposition of funds.

All permits or license fees or taxes, penalties, fines, proceeds of all forfeitures, special inspection fees, and costs received by the Secretary of the Department of Finance and Administration under the provisions of this subchapter shall be general revenues and shall be deposited in the State Treasury to the credit of the State Apportionment Fund. The Treasurer of State shall allocate and transfer those revenues to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by and to be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 6, as added by 1953, No. 118, § 32(F); 1933 (1st Ex. Sess.), No. 7, § 16; Pope's Dig., §§ 14198, 14208; Acts 1957, No. 375, § 1, as added by 1953, No. 118, § 36(F), as added by 1971, No. 585, § 12; A.S.A. 1947, §§ 48-504, 48-505, 48-522; Acts 2019, No. 910, § 3311.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-5-225. Additional administrative personnel.

The Secretary of the Department of Finance and Administration and the Director of the Alcoholic Beverage Control Division are authorized to employ such additional clerks, inspectors, and assistants as may be necessary for the enforcement of this subchapter.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 22; Pope's Dig., § 14214; A.S.A. 1947, § 48-506; Acts 2019, No. 910, § 3312.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-5-226. On-premises sales by brewery.

The brewery may sell to the consumer at the brewery in lots of fewer than sixteen gallons (16 gals.).
1. The Alcoholic Beverage Control Board is hereby authorized to promulgate reasonable rules for the on-premises sale with foods and the off-premises package sale, labeling, and identification of beer sold at beer outlets maintained on the premises and operated in connection with a brewery in this state.
2. Such rules shall include the following minimum requirements:
  1. The brewery shall provide tours through its facilities; and
  2. Only sealed containers may be removed from the brewery premises.

History. Acts 1999, No. 467, §§ 1, 2; 2019, No. 315, § 66.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b)(1); and substituted “rules” for “regulations” in the introductory language of (b)(2).

3-5-227. Registration of beer kegs for off-premises consumption.

As used in this section:
1. “Beer” means any fermented liquor made from malt or any substitute therefor and having an alcoholic content not in excess of five percent (5%) by weight;
2. “Keg” means a vessel which has a liquid capacity of more than five gallons (5 gals.);
3. “Malt beverage” means any liquor brewed from the fermented juices of grain and having an alcoholic content of no less than five percent (5%) nor more than twenty-one percent (21%) by weight; and
4. “Off-premises” means a place other than the licensed retailer's place of business.
All retail dealers that sell a keg of beer or malt beverage for off-premises consumption are required to attach an identification label or tag approved by the Alcoholic Beverage Control Division to the keg prior to the sale.
1. The identification label or tag approved by the Alcoholic Beverage Control Division shall consist of paper within a clear protective coating made of plastic, metal, or another durable material that is not easily damaged or destroyed.
2. The paper shall be of a kind to allow the required information to be copied and retained by the retail dealer.
3. Identification labels used may contain a nonpermanent adhesive material in order to apply the label directly to an outside surface of a keg at the time of sale.
4. Identification tags shall be attached to the kegs at the time of sale with nylon ties or cording, wire ties or other metal attachment devices, or another durable means of tying or attaching the tag to the keg.
5. The identification label or tag shall be designed so that when affixed to a keg, the label or tag will not mar or otherwise physically damage the keg.
6. The identification label or tag shall include:
  1. The name and address of the retail dealer;
  2. The name of the purchaser; and
  3. An individual identification number assigned by the retail dealer that uniquely identifies the keg.
7. Each identification label or tag shall be perforated and of a composition that consistently allows for the full removal of the tag when common external keg cleaning procedures are performed at retail.
1. Before the retail sale of a keg of beer or malt beverage for off-premises consumption, the retail dealer shall require the purchaser to sign a statement promulgated by the Director of the Alcoholic Beverage Control Division attesting under the penalty of perjury:
  1. To the accuracy of the purchaser's name as shown on the identification label or tag;
  2. That the purchaser is aware that giving, procuring, or otherwise furnishing an alcoholic beverage to a person under twenty-one (21) years of age is a criminal offense as provided in §§ 3-3-201 and 3-3-202; and
  3. That the purchaser will not allow any person under twenty-one (21) years of age to consume any of the beer or malt beverage in the keg.
2. The retail dealer shall also record the following:
  1. The name and address of the purchaser;
  2. The identification card or driver's license number from the purchaser's acceptable documentation of age;
  3. The amount of the container deposit of not less than seventy-five dollars ($75.00);
  4. The date and time of the purchase; and
  5. The keg identification number required under subsection (c) of this section.
1. All records and statements required under this section shall be maintained by the retail dealer for a period of ninety (90) days from the date of the return of the keg.
2. The records and statements shall remain open to inspection by authorized agents of the Alcoholic Beverage Control Enforcement Division and law enforcement officers during the retail dealer's normal business hours.
1. The retail dealer shall notify the Director of the Alcoholic Beverage Control Enforcement Division on forms promulgated by the Alcoholic Beverage Control Division within ten (10) days of the forfeiture of a container deposit by a purchaser.
2. The notification form shall consist of:
  1. The name and address of the retail dealer;
  2. The name and address of the purchaser;
  3. The retail dealer's beer permit or license number;
  4. A fee of twenty-five dollars ($25.00) remitted to the Alcoholic Beverage Control Division; and
  5. A statement indicating the reason for forfeiture of the container deposit by the purchaser, including, but not limited to, the following reasons:
    1. The keg was not returned;
    2. The keg was returned more than one hundred twenty (120) days after purchase;
    3. The identification label or tag was removed; or
    4. The identification label or tag was damaged.
3. Any retail dealer that fails to notify the Director of the Alcoholic Beverage Control Enforcement Division within ten (10) days of the forfeiture of a container deposit by a purchaser is guilty of:
  1. A violation of this subchapter; and
  2. A Class B violation, as provided in § 3-4-402, against the retailer's permit.
1. No person other than the retail dealer, a licensed wholesaler, or an agent of the Alcoholic Beverage Control Enforcement Division may knowingly remove an identification label or tag placed on a keg.
2. Any person other than the retail dealer, licensed wholesaler, or an agent of the Alcoholic Beverage Control Enforcement Division that is knowingly in possession of a keg without an identification label or tag or knowingly removes or damages an identification label or tag is guilty of a violation of this subchapter.
1. The Director of the Alcoholic Beverage Control Division may promulgate rules and prescribe forms for the proper enforcement of this section, including an approved identification label or tag for use under this section.
2. The Alcoholic Beverage Control Division shall seek the input of licensed brewers and licensed beer importers in developing the label or tag.

History. Acts 2005, No. 2320, § 1; 2007, No. 254, § 1; 2007, No. 827, § 10; 2009, No. 548, § 3.

Amendments. The 2007 amendment by No. 254 substituted “more than five gallons (5 gals.)” for “four gallons (4 gals.) or more” in (a)(2); inserted “approved by the Alcoholic Beverage Control Division” in (b) and (c)(1); in (c), substituted “copied and retained by the retail dealer” for “automatically produced in triplicate” in (c)(2), and inserted (c)(7); substituted “deposit of not less than seventy-five dollars ($75.00)” for “deposit and registration” in (d)(2)(C); deleted former (f) and redesignated the following subdivisions accordingly; in present (f), substituted “container deposit” for “registration deposit” in (f)(1), (f)(2)(E), and (f)(3), deleted “and remit the Alcoholic Beverage Control Division's portion of the registration deposit” preceding “on forms” and deleted “under subsection (f) of this section” at the end in (f)(1), substituted “A fee of twenty-five dollars ($25.00)” for “The amount of the deposit being” in (f)(2)(D), and substituted “one hundred twenty (120)” for “ninety (90)” in (f)(2)(E)(ii); in present (h), inserted “including an approved identification label or tag for use under this section” in (h)(1), and rewrote (h)(2); and made related changes.

The 2007 amendment by No. 827 substituted “a criminal offense” for “a misdemeanor” in (d)(1)(B)(i).

The 2009 amendment redesignated (d)(1)(B) as (d)(1)(B) and (C), and made minor stylistic changes.

Subchapter 3 — Beer — Licensing of Retailers

Publisher's Notes. This subchapter contains provisions governing the licensing of retailers of beer. Subchapter 2 of this chapter contains provisions specifically regulating the sale of “beer” and “light wines” as defined therein to include only beer and wine with an alcoholic content not in excess of five percent (5%).

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Permits, on-premises consumption of beer, § 3-9-211.

Effective Dates. Acts 1943, No. 244, § 10: approved Mar. 18, 1943. Emergency clause provided: “Whereas the laws of the State of Arkansas regulating the conduct of businesses engaged in the sale of beer at retail are inadequate and it being necessary for the preservation of the public peace, health, and safety that the sale of beer at retail be regulated by the law enforcement officers of this state, an emergency is hereby declared to exist and this bill shall be in full force and effect immediately from and after its passage.”

3-5-301. Subchapter cumulative.

This subchapter shall not be construed to repeal any other laws regulating the sale of beer, but shall be construed as cumulative thereto.

History. Acts 1943, No. 244, § 9; A.S.A. 1947, § 48-536.

3-5-302. Applications — Qualifications of applicant.

A license shall not be issued to any person authorizing the sale of beer at retail unless the person shall file a verified application, accompanied by the fee required by law, and shall state in the application that he or she possesses the following qualifications:
1. 1. The applicant is a person of good moral character, a citizen or resident alien of the United States, and a resident of the county in which the permit will be operated or resides within thirty-five (35) miles of the address of the premises described in the application.
  2. However, the residency requirement under subdivision (a)(1)(A) of this section does not apply to a managing agent of a partnership, corporation, or an association that is an applicant if:
    1. The applicant currently holds at least two (2) permits issued by the Alcoholic Beverage Control Division for the sale of alcoholic beverages; and
    2. The applicant designates with the division a representative who resides within the county of the premises or within thirty-five (35) miles of the address of the premises described in the application;
2. The applicant has not been convicted of a felony or has not been convicted within five (5) years of the date of his or her application of any violation of the laws of this state or the laws of any other state relating to the sale of alcoholic beverages;
3. The applicant has not had revoked, within five (5) years next-preceding his or her application, any license issued to him or her under the laws of this state or any other state to sell alcoholic liquor of any kind;
4. The applicant is the owner of the premises for which the license is sought or the holder of an existing lease, buy-sell agreement, offer and acceptance, or option to lease thereon;
5. If the applicant is a copartnership, all members of the partnership shall be qualified to obtain a license; and
6. 1. 1. If the applicant is a corporation, the president and directors, any stockholder owning more than five percent (5%) of the stock of the corporation who are not exempted under subdivision (a)(6)(A)(ii) of this section, and the person or persons who will conduct and manage the licensed premises for the corporation shall possess all the qualifications required herein for an individual license.
    2. An applicant is not required to state the identity of its shareholders who are not the president or a director when the corporation:
      1. Is publicly traded on a nationally recognized stock exchange; or
      2. Holds at least ten (10) permits issued by the division for the sale of alcoholic beverages.
  2. The requirement as to residence in the United States or citizenship of the United States does not apply to officers, directors, and stockholders of the corporation but does apply to any officer, director, or stockholder who is also the manager of the licensed premises in any capacity in the conduct or operation of the licensed premises.
If a retailer permitted under this section chooses to exercise the exemption to the residency requirements contained in subdivision (a)(1)(A) of this section, the retailer, after the issuance of the second permit issued to the permitted retailer by the division, may:
1. 1. Change the managing agent of each of its permits by completing a form provided by the division.
  2. 1. A managing agent named under subdivision (b)(1)(A) of this section shall be a person of good moral character and a citizen or resident alien of the United States.
    2. A managing agent named under subdivision (b)(1)(A) of this section shall not be required to meet the requirements set forth in subdivision (a)(1)(A) of this section; and
2. Designate a representative for each permitted premises who resides within the county of the premises or within thirty-five (35) miles of the address of the premises stated on the permit.

History. Acts 1943, No. 244, § 1; 1967, No. 239, § 2; 1973, No. 189, § 2; A.S.A. 1947, § 48-528; Acts 1989, No. 295, § 1; 1991, No. 606, § 5; 1995, No. 536, § 1; 1999, No. 948, § 1; 2013, No. 325, § 3; 2015, No. 1044, § 1.

Publisher's Notes. Subdivision (2) of this section may be superseded by § 17-1-103 which provides for the removal of an automatic disqualification for criminal convictions in obtaining permits and licenses for professions, trades, or occupations.

Acts 1991, No. 606, § 11, provided:

Amendments. The 2013 amendment rewrote (6)(A).

The 2015 amendment added designation (a); substituted “A license shall not” for “No license shall” in the introductory language of (a); redesignated former (1) as (a)(1)(A) and added (a)(1)(B); substituted “under” for “pursuant to” in (a)(3); substituted “shall” for “must” in (a)(5); updated the internal reference in (a)(6); substituted “division” for “Alcoholic Beverage Control Division” in (a)(6)(A)(ii) (b) ; added (b); and made stylistic changes.

3-5-303. Applications — Misstatement or concealment of facts.

Any misstatement or concealment of fact in the application shall be grounds for revocation of any license issued pursuant to the application.

History. Acts 1943, No. 244, § 1; 1973, No. 189, § 2; A.S.A. 1947, § 48-528.

Cross References. Suspension or revocations of licenses generally, §§ 3-2-212 — 3-2-217.

3-5-304. Applications — Notice requirements.

1. After filing an acceptable application with the Director of the Alcoholic Beverage Control Division, the applicant shall cause to be published at least once a week for two (2) consecutive weeks in a legal newspaper of general circulation in the city in which the premises are situated or, if the premises are not in a city, in a newspaper of general circulation for the locality where the business is to be conducted, a notice that the applicant has applied for a permit to sell beer at retail.
2. The notice shall be in such form as the director shall prescribe by rule, regulation, or order and shall be verified.
3. The notice shall give the names of the applicant and the business and shall state that the applicant is a resident of Arkansas, that he or she has a good moral character, that he or she has never been convicted of a felony or had a license to sell alcoholic beverages revoked within the five (5) years preceding the date of this notice, whether issued by this state or any other state, and that he or she has not been convicted of violating laws of this state or any other state governing the sale of alcoholic beverages within five (5) years preceding the date of this notice.
1. Within five (5) days after filing an application for a permit to sell beer at retail at any premises, a notice of the application shall be posted in a conspicuous place at the entrance to the premises.
2. The applicant shall notify the director of the date when the notice is first posted.
3. No permit shall be issued to any applicant until proper notice has been so posted on the premises for at least thirty (30) consecutive days.
4. The notice shall be in such form as the director shall prescribe by rule, regulation, or order.
1. Upon receipt by the director of an application for a permit, written notice thereof, which shall include a copy of the application, shall immediately be mailed by the director to the sheriff, chief of police, if located within a city, and prosecuting attorney of the locality in which the premises are situated, and to the city board of directors or other governing body of the city in which the premises are situated, if within an incorporated area.
2. No license shall be issued by the director until at least thirty (30) days have passed from the mailing by the director of the notices required by this section.

History. Acts 1943, No. 244, § 1; 1967, No. 239, § 2; 1973, No. 189, § 2; A.S.A. 1947, § 48-528; Acts 1989, No. 297, § 3; 1991, No. 606, § 6; 1995, No. 652, § 10.

Publisher's Notes. As to legislative intent of Acts 1991, No. 606, see note to § 3-5-302.

3-5-305. Applications — Protests.

Upon receipt by the Director of the Alcoholic Beverage Control Division within the thirty (30) days of a protest against issuance of a permit by a governing official of the city or county to whom the notice of an application for permit has been mailed, the director shall not issue the license until he or she has held a public hearing.

History. Acts 1943, No. 244, § 1; 1973, No. 189, § 2; 1981, No. 790, § 5; A.S.A. 1947, § 48-528.

3-5-306. Applications — Appeals.

Any appeal from an order of the Director of the Alcoholic Beverage Control Division or the Alcoholic Beverage Control Board shall be made to the circuit court of the county in which the premises are situated or the Pulaski County Circuit Court.
Appeals shall be governed by the terms of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1943, No. 244, § 1; 1973, No. 189, § 2; 1981, No. 790, § 5; A.S.A. 1947, § 48-528.

Case Notes

Sufficiency of Evidence.

Evidence was sufficient to support board's denial of permit based upon conclusion that adequate police protection was not available to the premises due to its remoteness. Copeland v. ABC Bd., 4 Ark. App. 143, 628 S.W.2d 588 (1982).

3-5-307. Prohibited practices.

No holder of a license authorizing the sale of beer for consumption on the premises where sold or any servant, agent, or employee of the licensee shall do any of the following upon the licensed premises:

Knowingly sell beer or wine to a minor;
Knowingly sell beer or wine to any person while the person is in an intoxicated condition;
Sell beer or wine upon the licensed premises or permit beer to be consumed thereon, on any day or at any time when the sale or consumption is prohibited by law;
Permit any prostitute to frequent the licensed premises;
1. Permit gambling or games of chance upon the licensed premises.
2. Permitting gambling or games of chance under subdivision (5)(A) of this section does not include:
  1. Charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
  2. A lottery under the Arkansas Scholarship Lottery Act, § 23-115-101 et seq.;
Permit on the licensed premises any disorderly conduct, breach of the peace, or any lewd, immoral, or improper entertainment, conduct, or practices;
Sell, offer for sale, or permit the sale on the licensed premises of any kind of alcoholic liquors, except wine and beer; or
Permit the consumption on the licensed premises of wine or any other kind of alcoholic liquor, except beer.

History. Acts 1943, No. 244, § 2; 1945, No. 119, § 1; A.S.A. 1947, § 48-529; Acts 2009, No. 605, § 11; 2009, No. 606, § 11.

Amendments. The 2009 amendment by identical acts Nos. 605 and 606 inserted (5)(B), redesignated the remaining text accordingly, and made a related change.

Cross References. On premises consumption permits, inapplicability of this section, § 3-9-211.

Case Notes

Sales to Intoxicated Persons.

Testimony by state police officers substantiated by intoximeter tests constituted substantial evidence that licensees violated this section and disciplinary action could be taken against the licensees even if the particular sales were made without their specific knowledge or consent, since this section declares a violation where prohibited sales are made by any employee of the licensee. Jarvis v. ABC Bd., 253 Ark. 724, 488 S.W.2d 709 (1973).

Sales to Minors.

Where there was evidence before the Alcoholic Beverage Control Board that holder of beer permit knowingly sold beer to minor, this evidence justified finding of the Alcoholic Beverage Control Board that license would be suspended for a period of time, regardless of whether sales were made by holder of permit or by his agent. Morley v. Cassinelli, 216 Ark. 175, 224 S.W.2d 828 (1949).

Subchapter 4 — Native Wine Generally

3-5-401 — 3-5-413. [Repealed.]

Publisher's Notes. This subchapter, concerning native wine generally, was repealed by Acts 2007, No. 668, § 3. The subchapter was derived from the following sources:

3-5-401. Acts 1935, No. 69, § 1; Pope's Dig., § 14223; A.S.A. 1947, § 48-601.

3-5-402. Acts 1935, No. 69, § 2; Pope's Dig., § 14224; A.S.A. 1947, § 48-602; Acts 1987, No. 424, §§ 4, 5; 2003, No. 1445, § 1.

3-5-403. Acts 1935, No. 69, § 12; Pope's Dig., § 14234; A.S.A. 1947, § 48-612; Acts 2005, No. 1994, § 374.

3-5-404. Acts 1935, No. 69, § 11; Pope's Dig., § 14233; A.S.A. 1947, § 48-611.

3-5-405. Acts 1935, No. 69, § 3; Pope's Dig., § 14225; Acts 1981, No. 335, § 5; A.S.A. 1947, § 48-603; Acts 2003, No. 1445, § 2.

3-5-406. Acts 1935, No. 69, § 4; Pope's Dig., § 14226; A.S.A. 1947, § 48-604.

3-5-407. Acts 1935, No. 69, § 9; Pope's Dig., § 14231; A.S.A. 1947, § 48-609; Acts 1997, No. 1010, § 2; 1997, No. 1060, § 2.

3-5-408. Acts 1935, No. 69, § 5; Pope's Dig., § 14227; A.S.A. 1947, § 48-605.

3-5-409. Acts 1935, No. 69, § 8; Pope's Dig., § 14230; Acts 1985, No. 1052, § 1; A.S.A. 1947, § 48-608; Acts 1987, No. 424, § 6; 1991, No. 913, § 1.

3-5-410. Acts 1935, No. 69, § 6; Pope's Dig., § 14228; A.S.A. 1947, § 48-606.

3-5-411. Acts 1935, No. 69, § 7; Pope's Dig., § 14229; A.S.A. 1947, § 48-607; Acts 1987, No. 902, § 2; 1991, No. 1013, § 1; 2005, No. 1806, § 2.

3-5-412. Acts 1935, No. 69, § 10, as added by Acts 1953, No. 118, § 32(G); 1983, No. 906, § 1; 1985, No. 1052, § 2; A.S.A. 1947, §§ 48-608.1, 48-610.

3-5-413. Acts 1991, No. 953, §§ 1-3.

Subchapter 5 — Native Wines — Transportation

3-5-501 — 3-5-505. [Repealed.]

Publisher's Notes. This subchapter, concerning transportation of native wines, was repealed by Acts 2007, No. 668, § 3. The subchapter was derived from the following sources:

3-5-501. Acts 1971, No. 441, § 5; A.S.A. 1947, § 48-632.

3-5-502. Acts 1971, No. 441, § 5; A.S.A. 1947, § 48-632; Acts 2005, No. 1994, § 375.

3-5-503. Acts 1971, No. 441, § 5; A.S.A. 1947, § 48-632.

3-5-504. Acts 1971, No. 441, § 5; A.S.A. 1947, § 48-632.

3-5-505. Acts 1971, No. 441, § 5; A.S.A. 1947, § 48-632.

Subchapter 6 — Native Wines — Production and Sale

Effective Dates. Acts 1975, No. 675, § 10: became law without Governor's signature, Mar. 31, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of acute shortages of premium red grapes and other fruits, severe frost and hail damage to grapes for two years in succession, increasing sugar prices with reduction in the supply of available fermentable sugars, and depressed economic conditions which have curtailed new vineyard plantings of needed varietal and generic grape types, that immediate steps must be taken to offer stimulus to the Arkansas native wine industry, thereby preserving a high level of production and employment by farmers in this State who produce fruits and grapes used by wineries, and that the immediate passage of this act is necessary to accomplish this purpose. Therefore, an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after the date of its passage and approval.”

Acts 1979, No. 770, § 3: Apr. 6, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that Acts 1975, No. 675 requires Arkansas wineries to file detailed reports with the Department of Finance and Administration with respect to the importation of natural fruit flavors and herb flavors, and the importation of fruits and vegetables for use in the production of native wine, and the importation of wines for blending with native wines, and that considerable expense could be saved by the department consolidating much of the report information into simplified forms, and with the detailed data to be preserved by the native wineries for departmental inspection and audit, and that the immediate passage of this act is necessary to accomplish such purposes and save funds by the State of Arkansas for other purposes. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2007, No. 668, § 6: Mar. 29, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that lawsuits are currently pending in both Federal Court for the Eastern District of Arkansas and Pulaski County Circuit Court regarding the constitutionality of the laws being amended by this subchapter; that the lawsuits are being defended by the office of the Arkansas Attorney General; and that immediate implementation of this act is necessary because any delay may result in substantial costs to the state. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

3-5-601. Legislative determinations and intent.

1. The General Assembly finds and determines that, due to extremely high prices of cane sugar and in view of the difficulty Arkansas wineries experience in obtaining dependable supplies of liquid corn sugar used as fermentation sugars in the production of native wines in this state and in view of the fact that many fruits such as apples, berries, peaches, and American varieties of grapes such as Concord and Niagara, which are easily produced in Arkansas, are low in sufficient sugar content in many growing seasons to produce sound, stable wine and because of resulting extremely low alcohol content, the addition of sugar is essential to production of quality-consistent, stable wines.
2. It is essential that the rules pertaining to the production of native wines in this state be modified to permit Arkansas wineries to use various other sources of sugar that have been approved for wine production under applicable federal regulations.
1. It is further determined by the General Assembly that in view of federal laws prohibiting the use of artifical flavoring in the production of natural wines it is essential for wineries to use natural fruit flavors and essences, that there is a lack of natural fruit flavor and natural essence produced in Arkansas due to the climatic conditions of this state, for example, vermouth herbs, etc., commonly imported from Europe, and that the lack of natural fruit flavor and natural essence and herbs is causing a severe drop in the sale of Arkansas native wines.
2. More and newer flavors of grape and apple wines are being produced, largely by wineries in the major wine-producing states and foreign countries, making it extremely difficult for Arkansas wineries to increase the exportation of native wine produced in this state into other states.
3. It is in the interest of the fruit and vegetable growers in this state that Arkansas wineries be able to obtain the necessary natural fruit flavors and essences required to flavor and supplement Arkansas native wines produced in this state, thereby permitting Arkansas wineries to offer to the public a broader variety of native wines and, through increased wine production, experience an increasing demand for production of fruits and vegetables in this state which are used in the production of native wines, thereby resulting in gains in employment for the citizens of this state.
1. The General Assembly further determines that it was the purpose and intent of the Native Wine Law to promote the increased marketing and exportation of Arkansas fruits and vegetables in the form of wine and that it was not the intent of the Native Wine Law to curtail the expansion of Arkansas wineries by restricting the supply of raw materials when the supply of any particular raw material within the State of Arkansas is insufficient to sustain a properly aging quality-controlled wine product line.
2. The General Assembly recognizes that acts of God — storms, hail, early spring frost, root bore disease, or other natural factors — or inadequate acreage of fruit needed to sustain the product line may cause an insufficiency in the supply of particular raw materials essential in the production of wine.
3. The General Assembly further recognizes that many farmers in this state tend to overplant more frostproof varieties of grapes which produce heavy tonnages of grapes that, when converted into wine, result in overproduction of a particular type of wine, which is difficult to sell unless blended with other types of wines to make the same easily marketable.
4. These factors and adverse circumstances, coupled with skyrocketing production costs and substantial increases in sugar prices, are causing a decline in the sale of Arkansas wines which may force wineries out of business, with a resulting loss of an established market for the sale of Arkansas grapes and other fruits and vegetables which are produced for sale to wineries.
1. The General Assembly is aware of the laws of other states having native wine laws which have adopted the federal laws and regulations as pertaining to the appellation of origin and the blending and proper labeling of wines, which allow a wine to carry the name of the state in which produced on its label as long as seventy-five percent (75%) of the fruit or materials from which the wine is made is grown within the state designated on the label.
2. Wineries in other states are thereby enjoying greater flexibility in overcoming weather damage which enables them to market and produce nationally with greater ease. The enactment of comparable provisions is essential to assure that Arkansas wineries and fruit and vegetable growers who sell and produce fruits and vegetables to be used in making wine have a fair competitive position with wineries of other states.

History. Acts 1975, No. 675, §§ 2, 4; A.S.A. 1947, §§ 48-634n, 48-635n; Acts 2019, No. 315, § 67.

Publisher's Notes. The Native Wine Law referred to in this section is codified as §§ 3-5-401 — 3-5-412 (repealed by Acts 2007, No. 688, § 3), and 3-5-803.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a)(2).

3-5-602. Rules.

The Secretary of the Department of Finance and Administration is authorized to establish appropriate rules, if he or she deems it advisable, to simplify the furnishing of information to the Department of Finance and Administration as required under the provisions of this subchapter.
The secretary may promulgate forms which are to be filed with the department abbreviating information now required to be furnished under this subchapter or may waive in writing the filing of any information with the department on condition that the information and records will be kept by Arkansas wineries for department inspection and audit.

History. Acts 1979, No. 770, § 1; A.S.A. 1947, § 48-633.1; Acts 2019, No. 315, § 68; 2019, No. 910, § 3313.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (a).

The 2019 amendment by No. 910 substituted “secretary” for “director” in (a) and (b).

3-5-603. Bottling — Tax.

In order to enable Arkansas wineries which produce native wines to sell their products to interstate and intrastate passenger airline companies and to passenger railroads in containers for their convenience and use, the Alcoholic Beverage Control Board is authorized to promulgate rules to permit the bottling of wines produced by wineries in this state in two-fifths (2/5) of a pint or split size wine containers, or other nearest metric size practicable when the metric system of measurement is phased into operation in this country, for sale to airlines and passenger railroads for sale for consumption thereon.
The rules may also authorize the packaging of wines produced in two-fifths (2/5) of a pint or split size containers in the form of cluster sampler packages for sale in package form under such rules as the board shall determine, for sale in this state or for export sale in other states.
The Department of Finance and Administration is authorized to collect the necessary taxes in the same manner as now prescribed by law on the twentieth day of the month, on sales in Arkansas for the month preceding, on wines bottled and packaged under subsections (a) and (b) of this section, which are sold in Arkansas.

History. Acts 1975, No. 675, § 1; A.S.A. 1947, § 48-633; Acts 2019, No. 315, § 69.

Amendments. The 2019 amendment substituted “rules” for “regulations” twice in (b).

3-5-604. Importing natural fruit flavors and herb flavors.

The Alcoholic Beverage Control Division and the Department of Finance and Administration are authorized to permit Arkansas wineries to bring into Arkansas natural fruit flavors and herb flavors which cannot be acquired in Arkansas and to use such flavors according to existing federal regulations regarding natural fruit flavors and formula approval for each blend of wine.
The use of such natural fruit and herb flavors in the production of wines produced from fruits and vegetables grown in this state shall in no way deprive the Arkansas wineries of the benefits of the Native Wine Law with respect to the tax to be levied upon each gallon of native wine produced and sold in this state.

History. Acts 1975, No. 675, § 3; A.S.A. 1947, § 48-634.

Publisher's Notes. The Native Wine Law referred to in this section is codified as §§ 3-5-401 — 3-5-412 (repealed by Acts 2007, No. 688, § 3), and 3-5-803.

3-5-605. Importing fruits and vegetables.

Arkansas wineries are authorized to import into this state, in private or common carriers, fruits and vegetables grown outside the State of Arkansas in various forms so as to facilitate economic transportation and to use the fruits or vegetables in the production of wine according to applicable federal wine regulations, and labeled according to federal wine regulations.
The importation of fruits and vegetables and the use thereof in wine production shall be in accordance with reasonable rules promulgated by the Department of Finance and Administration to assure compliance with this subchapter and prevent abuse thereof.
1. An Arkansas winery importing fruits or vegetables grown outside the State of Arkansas for use in making wines in this state shall pay the seventy-five-cents-per-gallon tax levied on imported wines or wines produced from fruits and vegetables not grown in this state or on wine made from such juices extracted from fruits or vegetables brought into the state if the wine is sold in Arkansas.
2. The tax shall be paid in the same manner as prescribed by law on the twentieth day of the month on sales in Arkansas for the month preceding.
3. Records at the Arkansas winery required by federal law shall be maintained to reflect the ratio of blend of Arkansas-grown wine and the amount of wine in the blend made from the fruits or vegetables grown outside the State of Arkansas.
4. The seventy-five-cents-per-gallon tax shall be required to be paid only on the portion of the blend made from fruits or vegetables grown outside the State of Arkansas which are sold in Arkansas.
5. The tax on the Arkansas-grown portion of the wine blend shall be the same as now required on wines produced from Arkansas-grown fruits and vegetables.
Records of wine blends shall be preserved by the winery for a period of three (3) years from the relevant date of the record. These records shall be available on the premises at all times for the reasonable inspection by authorized agents of the Alcoholic Beverage Control Division and the department.

History. Acts 1975, No. 675, § 5; A.S.A. 1947, § 48-635; Acts 2019, No. 315, § 70.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b).

Cross References. Tax on imported wines and wines produced from fruits and vegetables not grown in Arkansas, § 3-7-104.

3-5-606. Importing wines for blending.

1. Arkansas wineries are authorized to import into Arkansas finished or unfinished wines for blending with Arkansas red or white wines.
2. The wines shall be shipped into this state and blended according to regulations as set forth in federal regulations and labeled according to federal regulations which require that the appellation of origin of “Arkansas Wines” can be used only on those wines which contain seventy-five percent (75%) Arkansas-grown grapes or other materials.
The Arkansas winery shall pay a tax of seventy-five cents (75¢) per gallon on all wines imported into this state if the wines are sold in Arkansas. The seventy-five-cents-per-gallon tax shall be required to be paid only on the portion of the blend not grown and produced in Arkansas. The tax on the Arkansas-grown portion of the wine blend shall be the same as now required for wines produced from Arkansas-produced fruits and vegetables.
The tax shall be paid in the same manner as prescribed on the twentieth day of the month of sale in Arkansas for the month preceding.
The Arkansas winery shall keep records as required by federal law to show the ratio of blend of Arkansas-grown wines and the amount of out-of-state wines used in the blend.
The Department of Finance and Administration shall establish appropriate rules for the reporting and collecting of the tax on imported wines used in such blends.
To facilitate differentiation of taxes to the State of Arkansas on a wine blend under the provisions of this subchapter, a copy of the blend-ratio record which identifies the wine type or class shall accompany tax remittances for shipments made for sale in Arkansas for each particular blend.
Records of the blends shall be preserved by a winery for a period of three (3) years from the relevant date of the record and shall be available on the premises at all times for reasonable inspection by authorized agents of the department.
The Arkansas winery desiring to import wines into Arkansas to be used in blending with Arkansas wines as authorized in this subchapter shall make application for a permit to be issued by the Miscellaneous Tax Section of the Office of Excise Tax Administration, to import wines in the same manner presently required for brandy.

History. Acts 1975, No. 675, § 6; A.S.A. 1947, § 48-636; Acts 2019, No. 315, § 71.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (e).

Cross References. Native wine, gallonage tax, § 3-7-104.

3-5-607. [Repealed.]

Publisher's Notes. This section, concerning tax incentive for export of local wines, was repealed by Acts 2007, No. 668, § 5. The section was derived from Acts 1975, No. 675, § 7; A.S.A. 1947, § 48-637.

Subchapter 7 — Wine Producers Council

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

3-5-701. Creation — Members.

1. There is created the Arkansas Wine Producers Council to be composed of seven (7) members.
2. 1. Four (4) members of the council shall be selected from the state at large, appointed by the Governor, and confirmed by the Senate.
  2. The Governor shall consult the Arkansas Wine Producers Association and the Arkansas State Horticultural Society before making an appointment under subdivision (a)(2)(A) of this section.
3. One (1) member of the council shall be designated by the Board of Trustees of the University of Arkansas and shall be a faculty member or administrator who is knowledgeable in viniculture.
4. One (1) member shall be designated by the State Parks, Recreation, and Travel Commission, and the member shall be either a member or employee of the commission.
All successor members shall be appointed or designated for terms of three (3) years.

History. Acts 1983, No. 912, § 1; A.S.A. 1947, § 48-649; Acts 2015, No. 1100, § 1.

Publisher's Notes. The terms of the members of the Arkansas Wine Producers Council are arranged so that three terms expire every three years and two terms expire in each of the two intervening years.

Amendments. The 2015 amendment rewrote (a)(2); deleted former (a)(3); and redesignated the remaining subdivisions accordingly.

3-5-702. Officers.

At the first meeting of the Arkansas Wine Producers Council, it shall select from its membership a chair and vice-chair and any other officers it may deem necessary or appropriate to effectively carry out its responsibilities.

History. Acts 1983, No. 912, § 2; A.S.A. 1947, § 48-650.

3-5-703. Powers and duties.

The Arkansas Wine Producers Council shall have the authority and responsibility to promote research concerning the production of wine grapes and the manufacture of wine in Arkansas and to take any other action it deems necessary or appropriate to promote and support the Arkansas native wine industry.
The council shall have the exclusive authority to expend any and all funds deposited into the Arkansas Wine Producers Council Fund in the State Treasury for promoting research concerning the production of wine grapes and the manufacture of wine in Arkansas and for promoting the Arkansas native wine industry through the State Parks, Recreation, and Travel Commission.
The council shall consider proposals for research projects submitted by university research institutions relating to the production of wine grapes and the manufacture of wine in Arkansas and proposals which promote the Arkansas native wine industry and tourism related to the industry submitted by the commission.
Upon approval by a majority vote of the council of a proposal for research by a university research institution or for promotion or tourism by the commission, the council shall direct the Chief Fiscal Officer of the State to transfer on the Department of Finance and Administration books, and shall cause to be transferred on the books of the Treasurer of State and the Auditor of State, such amounts as determined by the council from the Arkansas Wine Producers Council Fund to the Department of Commerce Fund Account and to the operating fund or fund accounts of approved research institutions. Use of these funds may be applied as prescribed in this section in the various states of the United States and foreign countries.

History. Acts 1983, No. 912, § 3; A.S.A. 1947, § 48-651; Acts 2019, No. 910, § 127.

Amendments. The 2019 amendment substituted “Department of Commerce Fund Account” for “Department of Parks and Tourism Commerce Fund Account” in the first sentence of (d).

Subchapter 8 — Native Wine Industry Disaster Relief Act

Effective Dates. Acts 1935, No. 69, § 15: Feb. 25, 1935. Emergency clause provided: “It is found as a fact that there are many farmers in this state engaged in the business of growing grapes, berries, and other fruits, and vegetables, and that if said products cannot be converted into wine and sold in this state, said farmers will suffer heavy losses and great damages during the year 1935 and for years to come; and it is further found as a fact that large numbers of aged and destitute citizens in the various counties of this state are in dire need of care and relief, and that the revenues provided for in this act are necessary to afford such care and relief. Now, therefore, an emergency hereby is declared to exist, and this act, being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 335, § 9: Mar. 5, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the acute shortage of grapes, fruits, berries, and/or vegetables due to diminishing cultivation of acreage in crops of grapes, fruits, berries, and vegetables used in the production of wine because of the severe drought, immediate steps must be taken to offer stimulus to the Arkansas native wine industry and thereby provide a high level of production and employment by native wineries in this state, and to stabilize the operation of such wineries during the periods of restoration of vineyards and orchards and other agricultural production facilities which serve the native wine industry, occasioned by severe natural disaster, and that the immediate passage of this act is necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

3-5-801. Title.

This subchapter and § 3-5-405 [repealed] shall be known as the “Native Wine Industry Disaster Relief Act”.

History. Acts 1981, No. 335, § 1; A.S.A. 1947, § 48-642.

3-5-802. Legislative determinations and purpose.

The General Assembly recognizes, by the passage of this subchapter and § 3-5-405 [repealed], the vital contribution of agriculture to the economy of this state and of the hundreds of acres of Arkansas farmlands and of the numerous Arkansas citizens devoted to, and employed in, the production of grapes, berries, fruits, and vegetables grown in this state which are purchased by Arkansas wineries for use in the production of native wine in Arkansas.
The General Assembly further determines that the purpose and intent of the Native Wine Law is to promote the increased marketing and exportation of Arkansas fruits and vegetables in the form of wine and that it was not the intent of the Native Wine Law to curtail the expansion of Arkansas wineries by restricting the supplies of raw materials used in the production of wine when the supply of any particular raw material within the State of Arkansas is insufficient to sustain a properly aged quality-controlled wine product line.
It is further recognized that periodically severe heat, drought, flood, plant disease, or other natural factors may cause significant loss in the production of grapes, berries, fruits, and vegetables grown in this state for sale to the native wineries.
The General Assembly further recognizes, by the passage of this subchapter and § 3-5-405 [repealed], the vital contribution of the native wine industry to the economy of this state because it provides new employment opportunities, additional income, support for existing industries, and an expanding tax base in this state.
Recognition is also given to statistical studies which indicate that investments in grape vineyards require commitments of resources for up to forty (40) years.
It is the purpose of this subchapter and § 3-5-405 [repealed] to establish procedures whereby a native wine industry disaster relief program may be established when conditions created by severe flood, heat, drought, plant disease, or other natural cause may materially affect the production of grapes, fruits, berries, and vegetables used in producing native wine in this state in the future.

History. Acts 1981, No. 335, § 2; A.S.A. 1947, § 48-643.

Publisher's Notes. The Native Wine Law referred to in this section is codified as §§ 3-5-401 — 3-5-412 (repealed by Acts 2007, No. 688, § 3), and 3-5-803.

3-5-803. Acquisition of ingredients from outside state.

Whenever reference is made in this subchapter to the acquisition of grapes, berries, fruits, or vegetables from sources outside this state to be used for the purposes and in the quantities authorized in this subchapter, for the production of native wines, the term shall also be deemed to mean the acquisition of equivalent amounts thereof in the form of juice, pulp, or blendable wines to be used in the manufacture or blending of native wines in this state within the allowable percentages of such products used in the preparation of juices, pulp, or blendable wines as set forth in the order by the Secretary of the Department of Finance and Administration.

History. Acts 1935, No. 69, § 3; Pope's Dig., § 14225; Acts 1981, No. 335, § 5; A.S.A. 1947, § 48-603; Acts 2019, No. 910, § 3314.

Publisher's Notes. Acts 1935, No. 69, § 3, as amended, was also codified as 3-5-405(b)(2) (now repealed).

Amendments. The 2019 amendment deleted “and § 3-5-405 [repealed]” following “subchapter” twice, and substituted “Secretary” for “Director”.

3-5-804. Construction of act with existing laws.

It is the intent of this subchapter and § 3-5-405 [repealed] that the provisions hereof shall be supplemental to the existing laws of this state pertaining to native wineries.
It is also the intent of this subchapter and § 3-5-405 [repealed]:
1. To provide for means of economic relief and stabilization of the native wine industry during periods of curtailed production of grapes, berries, fruits, and vegetables used in native wine production;
2. To serve as an incentive for the restoration of vineyards, orchards, and other production facilities of products used by the native wine industry in this state; and
3. To authorize the importation of products to offset losses of production of products in this state, only in accordance with a native wine industry disaster relief order of the Secretary of the Department of Finance and Administration.
It is not the intent of this subchapter and § 3-5-405 [repealed] to modify or repeal the existing native wine laws of this state except to the extent that the laws may be in specific conflict herewith.
Nothing in this subchapter and § 3-5-405 [repealed] shall be construed to require Arkansas wineries to pay gallonage tax in Arkansas on wines shipped and sold to wholesalers for sale outside of Arkansas.
Nothing in this subchapter and § 3-5-405 [repealed] shall be construed to modify, amend, or repeal the laws of this state which require that the production of native wine shall be in accordance with applicable federal wine regulations with respect to the blending or labelling of wine.

History. Acts 1981, No. 335, §§ 7, 8; A.S.A. 1947, §§ 48-647, 48-648; Acts 2019, No. 910, § 3315.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (b)(3).

3-5-805. Declaration of a relief program — Effect.

Whenever, due to excessive heat, drought, flood, plant disease, or other natural disaster, the production of Arkansas-grown grapes, fruits, berries, or vegetables necessary to sustain the operation of native wineries on a full production basis is severely curtailed, upon petition therefor by one (1) or more native wineries licensed to do business in this state, and upon certification from the University of Arkansas Division of Agriculture Cooperative Extension Service that the production of such products has been curtailed due to natural disaster and outlining the estimated extent of the curtailment, the Secretary of the Department of Finance and Administration shall determine, within thirty (30) days, whether circumstances exist which justify the declaration of a native wine industry disaster relief program. In connection therewith, the secretary shall make independent studies and obtain information as he or she may deem appropriate or necessary to reach a proper decision in regard to the petition.
1. Upon conclusion of the studies, and in no event later than thirty (30) days after the date of the receipt of the petition, the secretary shall issue a ruling.
2. If the secretary shall determine that circumstances justify the invoking of a native wine industry disaster relief program, as authorized in this subchapter, he or she shall state in his or her order the facts which justify the establishment of the program, the anticipated loss in production of Arkansas-grown grapes, fruits, berries, or vegetables, or varieties thereof, to result from the natural disaster, and the duration for which the native wine industry disaster relief program shall extend.
3. Copies of the order shall be filed by the secretary with each licensed native winery in this state and with other interested parties who may request copies of the order.
During the period of the native wine industry disaster relief program, as determined by the secretary, native wineries in this state may acquire from sources outside this state supplies of grapes, fruits, berries, or vegetables within the percentage of their total consumption of such products as set forth by the secretary.

History. Acts 1981, No. 335, § 4; A.S.A. 1947, § 48-645; Acts 2019, No. 910, § 3316.

Amendments. The 2019 amendment substituted “Secretary” for “Director” throughout the section; and deleted “and § 3-5-405 [repealed]” following “subchapter” in (b)(2).

3-5-806. Expanding operations during period of program.

It shall be unlawful during the period of a native wine industry disaster relief order for any existing winery or any new winery in this state to start a branch or new production operation in this state during the period of the order for the sole purpose of abusing the intent of this subchapter and § 3-5-405 [repealed] to stabilize the production of native wine by authorizing the importation of products used in wine production to overcome production losses brought about by natural disasters.

History. Acts 1981, No. 335, § 7; A.S.A. 1947, § 48-647.

3-5-807. Tax on wines produced under program.

During a period of native wine industry disaster relief order issued by the Secretary of the Department of Finance and Administration under the provisions of § 3-5-805, any native wine produced from grapes, berries, fruits, or vegetables within the permissible quantities authorized to be imported from sources of supply outside this state to replace losses in production of such products in this state resulting from natural disaster, within the percentages set forth in the native wine industry disaster relief order of the secretary, shall be subject to the native wine tax imposed under the provisions of § 3-5-409 [repealed]. The provisions of subchapter 6 of this chapter shall be inoperative with respect to wines produced from the grapes, fruits, berries, and vegetables imported from sources of supply outside this state within the quantities set forth in the order of the secretary.
However, if quantities of wine are produced from the grapes, berries, fruits, and vegetables, or juices, pulp, or blendable wines thereof produced outside this state in excess of the percentage of the products authorized in the order of the secretary to offset losses of production in this state resulting from natural disaster, the tax on such excess native wine produced from imported grapes, fruits, berries, and vegetables, or from juices, pulp, or blendable wines derived therefrom, shall be reported and paid as provided in subchapter 6 of this chapter.

History. Acts 1981, No. 335, § 6; A.S.A. 1947, § 48-646; Acts 2019, No. 910, § 3317.

Amendments. The 2019 amendment substituted “secretary” for “director” in (a) three times, and in (b).

Subchapter 9 — Native Wines — Incentive Grants

Publisher's Notes. The provisions of this subchapter may affect the provisions of § 3-5-1001 et seq.

Effective Dates. Acts 1985, No. 681, § 6: Mar. 27, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that the wine industry in this state has provided a market for grapes, fruit, berries, and/or vegetables grown upon farms in Arkansas, and has thereby created employment opportunities and has encouraged the establishment and expansion of industries which support such agricultural activities; that natural disasters brought about by unseasonal climatic conditions during recent years resulted in droughts and below normal freezing conditions which have been destructive to vineyards and orchards used in the production of grapes, fruit, berries, and/or vegetables used in the wine industry; and that in order to provide stability to such industry and to provide continued markets for such agricultural products in this state, the General Assembly determines that grant payments, as provided in this act, are essential to stabilize the operation of wineries in this state; and that the immediate passage of this act is necessary to accomplish such purposes. Therefore, an emergency is hereby declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2003 (1st Ex. Sess.), No. 50, § 116: July 1, 2003. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2003 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2003 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2003.”

Acts 2017, No. 508, § 13(b): Jan. 1, 2018. Effective date clause provided: “Sections 4 and 5 of this act become effective on January 1, 2018.”

3-5-901. Program established.

As a means of providing more stable markets for grapes, fruits, berries, or vegetables used in the production of wine in this state, the General Assembly establishes a program of payments, in the form of grants, to be made to each winery in this state with respect to grapes, fruits, berries, or vegetables grown and produced in Arkansas and used by wineries located in this state in the production of wine.

History. Acts 1985, No. 681, § 2; A.S.A. 1947, § 48-653.

3-5-902. Purpose of incentives.

Through the passage of this subchapter, the General Assembly establishes a financial incentive in the forms of grant payments as authorized in this subchapter for the encouragement of growing of grapes and other fruits used in the production of wine in this state to:

Reduce unemployment and provide new and expanded job opportunities for the people of this state;
Provide expanded markets for grapes, fruits, berries, or vegetables produced in Arkansas thereby providing increased opportunities for the use of productive lands in this state and to stimulate the agricultural economy of this state;
Attract other industries to this state;
Provide stability to the marketing of grapes used in the wine industries of this state thereby providing financial relief to the owners of hundreds of acres of vineyards that have been totally or severely damaged due to extreme drought and freezing conditions resulting from unseasonal weather and climatic changes that are not typical of the climate of this state;
Provide relief to Arkansas wineries which must compete with products imported from foreign countries whose producers are receiving direct government subsidies which enable those producers to sell their products in this country at subsidized prices which gives them a competitive advantage over domestically produced wines, which is destructive of the domestic wine industry and agricultural and employment opportunities of persons who are dependent upon the wine industry for their support; and
Provide relief to the financial community of this state which made investments and loans supporting the growers of grapes, fruits, berries, or vegetables used in the wine industry to provide stability to the marketing of such products thereby enabling the growers to overcome losses suffered due to extreme weather conditions, and as an incentive for additional investments necessary for increased production of such agricultural products in this state.

History. Acts 1985, No. 681, § 1; A.S.A. 1947, § 48-652.

3-5-903. Rules.

The Secretary of the Department of Finance and Administration may establish reasonable rules to be followed by wineries in this state in making application for the subsidy payments and to prevent abuse of the subsidy payments.

History. Acts 1985, No. 681, § 3; A.S.A. 1947, § 48-654; Acts 2019, No. 315, § 72; 2019, No. 910, § 3318.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading and in the section.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”.

3-5-904. Eligibility.

A winery is eligible to receive a grant under this subchapter if the winery:
1. Has been actively involved in the sale of wine as an Arkansas-bonded winery for five (5) years; or
2. Has a federal license;
3. Was licensed by the State of Arkansas as of January 1, 2016;
4. Cultivates and maintains two (2) or more acres of marketable grapes in Arkansas using standard commercial vineyard cultivation practices;
5. Produces by fermentation a minimum of eight hundred gallons (800 gals.) of wine on the winery premises in the previous calendar year; and
6. Received a certification of eligibility under this subsection from the Arkansas Wine Producers Council.
Only those wineries located in this state which use not less than seventy-five percent (75%) of Arkansas-grown and Arkansas-produced grapes, fruits, berries, or vegetables for producing wine shall be eligible to receive grants under the provisions of this subchapter.
However, in any year in which there are losses in production of Arkansas-grown grapes, fruits, berries, or vegetables used in the production of wine resulting from droughts, floods, tornadoes, extreme weather conditions, or other natural causes, the percentage of Arkansas-grown and Arkansas-produced grapes, fruits, berries, or vegetables used in producing wine, as required in this subchapter, shall be reduced in the proportion of the losses in production of the products as determined and set forth in a disaster relief order issued by the Secretary of the Department of Finance and Administration prepared under the same procedures as set forth in the Native Wine Industry Disaster Relief Act, § 3-5-801 et seq.

History. Acts 1985, No. 681, § 2; A.S.A. 1947, § 48-653; Acts 2003 (1st Ex. Sess.), No. 50, § 110; 2017, No. 508, § 4; 2019, No. 910, § 3319; 2019, No. 1050, § 1.

Amendments. The 2003 (1st Ex. Sess.) amendment added present (a) and redesignated former (a) and (b) as present (b) and (c); substituted “Arkansas-produced” for “produced” in (b); and, in (c), substituted “floods” for “flood,” “Arkansas-produced” for “produced,” “the Native Wine Industry Disaster Relief Act, §§ 3-5-405 and 3-5-801 et seq.” for “§§ 3-5-405 and 3-5-801 — 3-5-807” and made a minor stylistic change.

The 2017 amendment rewrote (a).

The 2019 amendment by No. 910, in (c), substituted “Secretary” for “Director”, and deleted “§ 3-5-405 [repealed] and” following “Native Wine Industry Disaster Relief Act”.

The 2019 amendment by No. 1050 substituted “this subsection” for “this section” in (a)(6).

3-5-905. Applications.

Any winery in this state that produces wine from grapes, fruits, berries, or vegetables grown in this state and complies with the provisions of § 3-5-904, that desires to receive the grants authorized in this subchapter with respect to the purchase of such products or with respect to such products produced in vineyards or of other growing facilities in this state belonging to the winery, may make application for grant payments under this subchapter upon forms and in accordance with the rules promulgated by the Secretary of the Department of Finance and Administration.

History. Acts 1985, No. 681, § 2; A.S.A. 1947, § 48-653; Acts 2019, No. 315, § 73; 2019, No. 910, § 3320.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”.

3-5-906. Records.

Any winery seeking grant payments under the provisions of this subchapter shall keep records to establish the quantities of grapes, fruits, berries, or vegetables grown in this state purchased or produced by the winery and used in the making of wine.
The records shall include weight receipts for grapes, fruits, berries, or vegetables used in wine-making, together with proof of purchase of the grapes, fruits, berries, or vegetables from Arkansas producers, or proof of production of the grapes, fruits, berries, or vegetables in production facilities belonging to the winery, a copy of which shall accompany a request for grant payments under this subchapter. Proof of purchase shall consist of a copy of a sales and weight receipt indicating the Arkansas grower's name and address from whom purchased or indicating the weight of the products produced from production facilities belonging to the winery. All weights shall be made upon scales inspected and certified by the Arkansas Bureau of Standards.

History. Acts 1985, No. 681, § 2; A.S.A. 1947, § 48-653.

3-5-907. Payments — Amount.

Grant payments as authorized in this subchapter shall be made by the Secretary of the Department of Finance and Administration from moneys appropriated by the General Assembly for that purpose at each regular session and fiscal session of the General Assembly.
1. Grant funds awarded shall be distributed equally to each winery at a base amount not to exceed five hundred dollars ($500), with any remaining balance of the grant to be divided among each grantee according to the same ratio as the wine taxes paid in the previous calendar year by the grantee not to exceed one hundred twenty-five thousand dollars ($125,000) annually to any one (1) winery, as determined by the Chief Fiscal Officer of the State.
2. If a winery reaches the annual grant limit under subdivision (b)(1) of this section, the remainder of the grant funds shall be distributed among the remaining eligible wineries.
Applications for grants shall be submitted to the Chief Fiscal Officer of the State on or by the 15th of June.

History. Acts 1985, No. 681, §§ 2, 3; A.S.A. 1947, §§ 48-653, 48-654; Acts 2003 (1st Ex. Sess.), No. 50, § 111; 2009, No. 962, § 3; 2017, No. 508, § 5; 2019, No. 910, § 3321; 2019, No. 1050, § 2.

Amendments. The 2003 (1st Ex. Sess.) amendment deleted former (b)-(d); and added present (b) and (c).

The 2009 amendment substituted “regular session and fiscal” for “biennial” in (a).

The 2017 amendment redesignated former (b) as (b)(1); in (b)(1), substituted “five hundred dollars ($500)” for “twenty-five thousand dollars ($25,000)” and inserted “not to exceed one hundred thousand dollars ($100,000) annually to any one (1) winery”; and added (b)(2).

The 2019 amendment by No. 910 substituted “Secretary” for “Director” in (a).

The 2019 amendment by No. 1050 substituted “one hundred twenty-five thousand dollars ($125,000)” for “one hundred thousand dollars ($100,000)” in (b)(1).

3-5-908. Arkansas Agricultural Marketing Grants Fund.

There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State the Arkansas Agricultural Marketing Grants Fund, into which shall be paid the fees specified by § 19-6-839(b) and such moneys as may be provided by law to be used for making payments of grants to eligible Arkansas wineries under this subchapter.

History. Acts 1985, No. 681, § 3; A.S.A. 1947, § 48-654; Acts 2003 (1st Ex. Sess.), No. 50, § 112; 2019, No. 1050, § 3.

Amendments. The 2003 (1st Ex. Sess.) amendment deleted “with respect to the purchase of grapes, fruits, berries, or vegetables produced in this state and purchased for use in this state for the production of wine” from the end of this section.

The 2019 amendment inserted “the fees specified by § 19-6-839(b) and”, deleted “exclusively” preceding “for making payments”, and added “under this subchapter”; and made stylistic changes.

Subchapter 10 — Native Wines — Subsidies

Publisher's Notes. The provisions of this subchapter may be affected by the provisions of § 3-5-901 et seq.

As of the date of publication of this code, no federal legislation of the nature described in this section had been enacted.

3-5-1001. Legislative determinations and intent.

The General Assembly finds and recognizes that the tax incentives of the Native Wine Law of this state have provided incentives to encourage the expansion of the grape wine and other fruit wine industry in Arkansas, have caused the increase in the planting of grapes, berries, and other fruits, and have stimulated the construction, expansion, and operation of native wineries, with resulting benefits of employment, not only in the grape and berry production industry and in the wineries, but also in related industries which furnish cartons, bottles, petroleum products, fertilizer products, farm machinery and equipment, barrels, and related supplies and materials necessary and incidental to the wine industry.
The stimulation of business activity in this state by the Native Wine Law, with resulting employment, is determined by the General Assembly to be essential to the economic welfare of this state.
The General Assembly further notes that a number of states have enacted legislation similar to the Native Wine Law or other means of promoting the growth of fruits and vegetables used in the wine industry and that these laws in other states, as in Arkansas, have been enacted under guarantees of the Twenty-First Amendment to the United States Constitution that granted to states complete control over alcoholic beverages within and shipped into, their boundaries.
1. The General Assembly is further aware of proposed legislation presented in recent sessions of the United States Congress which, if passed, would not only destroy the tax incentive plans such as the Native Wine Law, but will also directly and proportionately destroy those growers of wine grapes, fruits, and berries, and wineries within such states who acted in reliance and good faith upon the benefits of the tax incentive plan to make the initial investments to enter into the wine production business.
2. The enactment of federal legislation prohibiting the continuation of tax incentive plans, such as the Native Wine Law, could not only be disastrous to the fruit and berry growers of this state and to the wineries which have invested funds in plants and equipment, but could also contribute to unemployment not only in these industries, but would substantially reduce the demands for goods and services which support the native fruit and berry production industry and the native winery industry, thereby creating a statewide economic decline.
The General Assembly therefore determines that the enactment of this subchapter is essential to establish a special fruit wine industry-subsidy plan, to be implemented in the event federal legislation is enacted obviating the Native Wine Law, thereby protecting fruit and berry growers from economic collapse and further promoting the high level of employment in this state.

History. Acts 1975, No. 679, § 1; A.S.A. 1947, § 48-638n.

Publisher's Notes. The Native Wine Law referred to in this section is codified as §§ 3-5-401 — 3-5-412 (repealed by Acts 2007, No. 688, § 3), and 3-5-803.

3-5-1002. Implementation dependent on federal legislation.

The provisions of this subchapter shall be effective, and shall be implemented, only in the event the Congress of the United States enacts legislation obviating the Native Wine Law of this state and prohibits the State of Arkansas from granting to native wineries the incentives to purchase Arkansas-produced grapes, berries, fruits, or vegetables used in the production of native wine in this state.
In the event of the enactment of federal legislation, the provisions of this subchapter shall become effective on the effective date of the federal legislation.

History. Acts 1975, No. 679, § 7; A.S.A. 1947, § 48-641n.

Publisher's Notes. As of the date of publication of this code, no federal legislation of the nature described in this section had been enacted.

For Native Wine Law, see Publisher's Notes, § 3-5-1001.

3-5-1003. Program to be established.

In the event the Congress of the United States shall enact legislation which would prohibit the State of Arkansas from taxing wines produced in this state from grapes, berries, or other fruits or vegetables at a rate of tax less than the tax imposed on wines produced in other states, thereby obviating the benefits of the Native Wine Law for Arkansas fruit and berry growers and native wineries, the General Assembly determines that wines produced by native wineries in this state from grapes, berries, and other fruits or vegetables grown in this state shall be taxed at the same rate of tax imposed upon wines produced from materials originating in another state.
In the event of the passage of federal legislation obviating the Native Wine Law and as a means of providing continued inducement for the production of grapes, berries, fruits, and vegetables used in the production of wine in this state, a program of direct subsidies is established for the benefit of Arkansas growers of grapes, berries, fruits, and vegetables used in the production of wine in this state, which will become effective on the date which the federal legislation obviating the native wine tax becomes effective.

History. Acts 1975, No. 679, § 2; A.S.A. 1947, § 48-638.

Publisher's Notes. The effective date and implementation of this section is dependent on federal legislation. See § 3-5-1002.

For Native Wine Law, see Publisher's Notes, § 3-5-1001.

3-5-1004. Eligibility — Payment — Amount.

The subsidy to Arkansas growers of grapes, berries, fruits, or vegetables used in the production of wine in wineries in this state shall be in the form of payments made to each winery in this state with respect to all grapes, berries, fruits, or vegetables grown in this state which are bought by Arkansas wineries and used in the production of wine in this state.
The subsidy shall not be available to wineries in this state with respect to grapes, berries, fruits, or vegetables produced outside the State of Arkansas.
The winery paying the native wine tax shall be allowed to draw the subsidy within thirty (30) days after the wine tax is paid for the previous months' sales.
The subsidy provided in this subchapter shall be computed at the rate of seven cents (7¢) per pound for Arkansas-produced grapes, berries, fruits, and vegetables purchased and used in the production of wine by wineries in this state. However, the aggregate amount of subsidy that any one (1) winery may receive under the provisions of this subchapter shall not exceed an amount in excess of the equivalent of sixty-nine cents (69¢) on each seventy-five cents (75¢) of tax levied in this state upon each gallon of wine sold in this state by the winery produced from Arkansas-grown fruits and vegetables upon which the tax is paid.

History. Acts 1975, No. 679, §§ 3, 4; A.S.A. 1947, §§ 48-639, 48-640.

Publisher's Notes. The effective date and implementation of this section is dependent on federal legislation. See § 3-5-1002.

3-5-1005. Applications.

Any winery in this state which produces wines from grapes, berries, fruits, or vegetables grown in this state, which desires to receive the subsidy authorized in this subchapter with respect to such purchases, may make application for the subsidy with the Department of Finance and Administration upon forms and in accordance with rules promulgated by the Secretary of the Department of Finance and Administration.

History. Acts 1975, No. 679, § 4; A.S.A. 1947, § 48-640; Acts 2019, No. 315, § 74; 2019, No. 910, § 3322.

Publisher's Notes. The effective date and implementation of this section is dependent on federal legislation. See § 3-5-1002.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules”.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”.

3-5-1006. Records.

Each winery in this state shall keep records to establish the quantity of grapes, berries, fruits, or vegetables grown in this state which are purchased and used for the making of wine in this state.
The records shall include weight receipts for fruits and vegetables, together with proof of purchase of the fruits and vegetables from Arkansas producers, a copy of which shall accompany requests for a tax subsidy payment. Proof of purchase shall consist of a copy of the sale weight receipt signed by the weighmaster, indicating the Arkansas grower's name and address from whom purchased. All weights shall be made upon scales inspected and certified by the Bureau of Standards of the State Plant Board.
Wineries shall be allowed to submit weights from the past growing season, or for past years' growing seasons, preceding the sale of wine in order to allow for proper aging of the wine, with the exception of aged vintage year wines, in which case, a copy of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives vintage control production form shall accompany the copy of the weight ticket for the year the vintage was harvested, following federal restrictions on fractional blend allowances.

History. Acts 1975, No. 679, § 4; A.S.A. 1947, § 48-640.

Publisher's Notes. The effective date and implementation of this section is dependent on federal legislation. See § 3-5-1002.

3-5-1007. Establishment of Arkansas Wine Grape, Berry, Fruit, and Vegetable Subsidy Fund.

In order to provide moneys to be used in paying the subsidies to Arkansas grape, berry, fruit, and vegetable producers whose production is sold to wineries in this state for making wine, the Secretary of the Department of Finance and Administration is authorized and directed to cause to be set aside in the State Treasury an amount of sixty-nine cents (69¢) for each seventy-five cents (75¢) gallonage tax collected on wines produced by wineries in this state from grapes, berries, fruits, or vegetables used in the production of wines in this state.
The amounts to be set aside shall be certified to the Treasurer of State during each period of settlement with the Treasurer of State on wine gallonage taxes collected from wineries in this state. The funds shall be deposited in a fund within the State Treasury to be known as the “Arkansas Wine Grape, Berry, Fruit, and Vegetable Subsidy Fund”. The fund shall be used exclusively for payment of subsidies to Arkansas wineries with respect to purchases of grapes, berries, fruits, and vegetables produced in this state used in the production of wine in this state.

History. Acts 1975, No. 679, § 5; A.S.A. 1947, § 48-641; Acts 2019, No. 910, § 3323.

Publisher's Notes. The effective date and implementation of this section is dependent on federal legislation. See § 3-5-1002.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

Subchapter 11 — Beer — Wholesalers and Suppliers

A.C.R.C. Notes. Acts 1991, Nos. 8 and 866, § 15, provided:

“All laws or parts of laws which conflict with this Act or which are inconsistent with this Act as it relates to beer wholesalers are hereby repealed.”

Effective Dates. Acts 1991, Nos. 8 and 866, § 16: Jan. 31, 1991 and Mar. 29, 1991, respectively. Emergency clause provided: “It is hereby found and determined by the General Assembly that present law does not adequately protect wholesalers of beer and light wine from arbitrary actions of suppliers; that this Act provides such protection; and that until this Act goes into effect the Arkansas wholesalers will be susceptible to arbitrary actions of the suppliers. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 192 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 425 et seq.

3-5-1101. Legislative intent and purpose.

The legislative intent and purpose of this subchapter is to provide a structure for the business relations between a wholesaler and a supplier of beer.
Regulation in this area is considered necessary for the following reasons:
1. To maintain stability and healthy competition in the beer industry in this state;
2. To promote and maintain a sound, stable, and viable three-tier system of distribution of beer to the public; and
3. To promote the public health, safety, and welfare.

History. Acts 1991, No. 8, § 1; 1991, No. 866, § 1.

3-5-1102. Definitions.

The following words or phrases, or the plural thereof, whenever they appear in this subchapter shall have, unless the context clearly requires otherwise, the meanings ascribed to them in this section:
1. “Agreement” means any agreement between a wholesaler and a supplier, whether oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands of beer sold by a supplier;
2. “Ancillary business” means:
  1. A business owned by the wholesaler, by a substantial stockholder of a wholesaler, or by a substantial partner of a wholesaler the primary business of which is directly related to the transporting, storing, or marketing of the brand or brands of beer of a supplier with whom the wholesaler has an agreement; or
  2. A business owned by a wholesaler, a substantial stockholder of a wholesaler, or a substantial partner of a wholesaler which recycles empty beverage containers of the supplier;
3. “Beer” includes light wine and shall carry the same definitions as set forth in § 3-5-202(1) and (7);
4. “Designated member” means and includes:
  1. The spouse, child, grandchild, parent, brother, or sister of a deceased individual who owned an interest, including a controlling interest, in a wholesaler;
  2. Any person who inherits under the deceased individual's will or under the laws of intestate succession of this state;
  3. Any person or entity which has through a valid testamentary device by the deceased individual succeeded the deceased individual's ownership interest in the wholesaler pursuant to a written contract or instrument which has been previously approved by a supplier;
  4. The appointed and qualified personal representative and the testamentary trustee of a deceased individual owning an ownership interest in a wholesaler; and
  5. The person appointed by a court as the guardian or conservator of the property of an incapacitated individual owning an ownership interest in a wholesaler;
5. “Director” means the Director of the Alcoholic Beverage Control Division;
6. “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade, as defined in and interpreted under the Uniform Commercial Code, § 4-1-101 et seq.;
7. “Reasonable qualifications” means the standard of the reasonable criteria established and consistently used by the respective supplier for similarly situated wholesalers that entered into, continued, or renewed an agreement with the supplier during a period of twenty-four (24) months prior to the proposed transfer of the wholesaler's business, or for similarly situated wholesalers who have changed managers or designated managers during a period of twenty-four (24) months prior to the proposed change in the manager or successor manager of the wholesaler's business;
8. “Retaliatory action” means the refusal to continue an agreement, or a material reduction in the quality of service or quantity of products available to a wholesaler under an agreement, which refusal or reduction is not made in good faith;
9. “Sales territory” means an area of exclusive sales responsibility for the brand or brands of beer sold by a supplier as designated by an agreement;
10. “Similarly situated wholesalers” means wholesalers of a supplier that are of a generally comparable size, and operate in markets with similar demographic characteristics, including population size, density, distribution, and vital statistics, as well as reasonably similar economic and geographic conditions;
11. “Substantial stockholder or substantial partner” means a stockholder of or partner in the wholesaler who owns an interest of ten percent (10%) or more of the partnership or of the capital stock of a corporate wholesaler;
12. “Successor” means a person who replaces a supplier with regard to the right to manufacture, sell, or import beer;
13. “Supplier” means a manufacturer or importer of beer and light wine brands as registered with the director;
14. “Transfer of wholesaler's business” means the voluntary sale, assignment, or other transfer of ten percent (10%) or more or control of the business or all or substantially all of the assets of the wholesaler, or ten percent (10%) or more or control of the capital stock of the wholesaler, including, without limitation, the sale or other transfer of capital stock or assets by merger, consolidation, or dissolution, or of the capital stock of the parent corporation, or of the capital stock or beneficial ownership of any other entity owning or controlling the wholesaler; and
15. “Wholesaler” means a wholesaler of beer and light wine as licensed by the Alcoholic Beverage Control Board and as defined in § 3-5-202(12).
Other words and phrases used in this subchapter shall have the meanings ascribed to them in §§ 3-1-102 and 3-5-202, as amended, and any acts amendatory thereof, supplementary thereto, or substituted therefor unless the context clearly requires otherwise.

History. Acts 1991, No. 8, § 2; 1991, No. 866, § 2; 2011, No. 982, § 1; 2015, No. 857, §§ 2, 3.

Amendments. The 2011 amendment inserted present (a)(12)(B).

The 2015 amendment, in the definition of “Supplier”, deleted (B); and added the definition of “Successor”.

3-5-1103. Applicability of subchapter to future agreements — Transferee continues under agreement.

This subchapter shall apply to agreements entered into or renewed after January 31, 1991.
1. A transferee of a wholesaler that continues in business as a wholesaler shall have the benefit of and be bound by all terms and conditions of the agreement with the supplier in effect on the date of the transfer.
2. However, a transfer of a wholesaler's business which requires the supplier's consent or approval but is disapproved by the supplier shall be null and void.

History. Acts 1991, No. 8, § 9; 1991, No. 866, § 9.

3-5-1104. Subchapter cumulative.

This subchapter is cumulative, and supplements and is in addition to Title 3 of this Code and the Arkansas Franchise Practices Act, § 4-72-201 et seq., as amended.

History. Acts 1991, No. 8, § 12; 1991, No. 866, § 12.

3-5-1105. Waiver of rights.

1. A wholesaler may not waive any of the rights granted in any provision of this subchapter, and the provisions of any agreement which would have such an effect shall be null and void.
2. Nothing in this subchapter shall be construed to limit or prohibit good faith dispute settlements voluntarily entered into by the parties.
No right or cause of action authorized by Arkansas law shall be waived by the supplier or wholesaler unless specifically waived in the agreement.

History. Acts 1991, No. 8, §§ 8, 11; 1991, No. 866, §§ 8, 11.

3-5-1106. Civil action for violations — Damages — Venue.

If a supplier or wholesaler engages in conduct prohibited under this subchapter, a wholesaler with which the supplier has an agreement may maintain a civil action against the supplier to recover actual damages reasonably incurred as the result of the prohibited conduct.
A supplier or wholesaler that violates any provision of this subchapter shall be liable for all actual damages and all court costs and, in the court's discretion, reasonable attorney's fees incurred by a wholesaler as a result of that violation.
A supplier or wholesaler may bring an action for declaratory judgment for determination of any controversy arising pursuant to this subchapter.
Upon proper application to the court, a supplier or wholesaler may obtain injunctive relief against any violation of this subchapter.
Any legal action taken under this subchapter or in a dispute over the provisions of an agreement, shall be filed in a court, state or federal, located in Arkansas, which state court is located in or which federal court has jurisdiction and venue of the county in which the wholesaler maintains its principal place of business in this state.

History. Acts 1991, No. 8, § 10; 1991, No. 866, § 10.

3-5-1107. Prohibited acts by supplier.

A supplier shall not do the following:
1. Fail to provide to each wholesaler of the supplier's brand or brands with a written agreement which contains, in total, the supplier's agreement with each wholesaler and designates a specific exclusive sales territory. Any agreement which is in existence on January 31, 1991, shall be renewed consistent with this subchapter, provided that this subchapter may be incorporated by reference in the agreement. Provided, however, nothing contained herein shall prevent a supplier from appointing, one (1) time for a period not to exceed ninety (90) days, a wholesaler to temporarily service a sales territory not designated to another wholesaler, until such time as a wholesaler is appointed by the supplier; and such wholesaler who is designated to service the sales territory during this period of temporary service shall not be in violation of this subchapter, and, with respect to the temporary service territory, shall not have any of the rights provided under §§ 3-5-1108 and 3-5-1111;
2. Fix, maintain, or establish the price at which a wholesaler shall sell any beer;
3. Enter into an additional agreement with any other wholesaler for, or to sell to any other wholesaler, the same brand or brands of beer in the same territory or any portion thereof, or to sell directly to any retailer in this state;
4. Require any wholesaler to accept delivery of any beer or other commodity which has not been ordered by the wholesaler. Provided, however, a supplier may impose reasonable inventory requirements upon a wholesaler if the requirements are made in good faith and are generally applied to other similarly situated wholesalers who have an agreement with the supplier;
5. Require any wholesaler to accept delivery of any beer or other commodity ordered by a wholesaler if the order was properly cancelled by the wholesaler in accordance with the supplier's procedures;
6. Require any wholesaler to do any illegal act or to violate any law or regulation by threatening to amend, modify, cancel, terminate, or refuse to renew any agreement existing between the supplier and wholesaler;
7. Require a wholesaler to assent to any condition, stipulation, or provision limiting the wholesaler's right to sell the brand or brands of beer of any other supplier unless the acquisition of the brand or brands of another supplier would materially impair or adversely affect the wholesaler's quality of service, sales, or ability to compete effectively in representing the brand or brands of the supplier presently being sold by the wholesaler; provided the supplier shall have the burden of proving that such acquisition of such other brand or brands would have such effect;
8. Require a wholesaler to purchase one (1) or more brands of beer products in order for the wholesaler to purchase another brand or brands of beer for any reason. Provided, however, a wholesaler that has agreed to distribute a brand or brands before January 31, 1991, shall continue to distribute the brand or brands in conformance with this subchapter;
9. Require a wholesaler to submit audited profit and loss statements, balance sheets, or financial records as a condition of renewal or continuation of an agreement;
10. Withhold delivery of beer ordered by a wholesaler, or change a wholesaler's quota of a brand or brands if the withholding or change is not made in good faith;
11. Require a wholesaler by any means directly to participate in or contribute to any local or national advertising fund controlled directly or indirectly by a supplier;
12. Take any retaliatory action against a wholesaler that files a complaint in good faith regarding an alleged violation by the supplier of federal, state, or local law or an administrative rule as a result of that complaint;
13. Require or prohibit any change in the manager or successor of any wholesaler who has been approved by the supplier as of or subsequent to January 31, 1991, unless the supplier acts in good faith. Should a wholesaler change an approved manager or successor manager, a supplier shall not require or prohibit the change unless the person selected by the wholesaler fails to meet the nondiscriminatory, material, and reasonable standards and qualifications for managers consistently applied to similarly situated wholesalers by the supplier. Provided, however, the supplier shall have the burden of proving that such person fails to meet such standards and qualifications;
14. Upon written notice of intent to transfer the wholesaler's business, interfere with, prevent, or unreasonably delay, not to exceed thirty (30) days, the transfer of the wholesaler's business if the proposed transferee is a designated member;
15. Upon written notice of intent to transfer the wholesaler's business other than to a designated member, withhold consent to or approval of, or unreasonably delay, not to exceed thirty (30) days after receipt of all material information reasonably requested, a response to a request by the wholesaler for any transfer of a wholesaler's business if the proposed transferee meets the nondiscriminatory, material, and reasonable qualifications and standards required by the supplier for similarly situated wholesalers; or
16. Restrict or inhibit the right of free association among wholesalers for any lawful purpose.
A successor becomes obligated under this section and under the terms and conditions of the agreement in effect on the date of succession regardless of the character or form of the succession.

History. Acts 1991, No. 8, § 3; 1991, No. 866, § 3; 2015, No. 857, § 4.

Amendments. The 2015 amendment added (b).

3-5-1108. Compensation upon supplier's violation — Arbitration.

Except as provided for in this subchapter, a supplier that has amended, modified, cancelled, terminated, or refused to renew any agreement; or caused a wholesaler to resign from an agreement; or has interfered with, prevented, or unreasonably delayed, or, where required by this subchapter, has withheld or unreasonably delayed consent to or approval of, any assignment or transfer of a wholesaler's business, shall pay the wholesaler reasonable compensation for the diminished value of the wholesaler's business including any ancillary business which has been negatively affected by the act of the supplier. The value of the wholesaler's business or ancillary business shall include, but not be limited to, its good will. Provided, however, nothing contained in this subchapter shall give rise to a claim against the supplier or wholesaler by any proposed purchaser of a wholesaler's business.
1. 1. Should either party, at any time, determine that mutual agreement on the amount of reasonable compensation cannot be reached, the supplier or the wholesaler may send by certifed mail, return receipt requested, written notice to the other party declaring its intention to proceed with arbitration.
  2. Arbitration shall proceed only by mutual agreement of both parties.
2. 1. Not more than ten (10) business days after the notice to enter into arbitration has been delivered, the other party shall send written notice to the requesting party declaring its intention either to proceed or not to proceed with arbitration.
  2. Should the other party fail to respond within ten (10) business days, it shall be conclusively presumed that said party shall have agreed to arbitration.
3. The matter of determining the amount of compensation may, by agreement of the parties, be submitted to a three-member arbitration panel consisting of one (1) representative selected by the supplier but unassociated with the affected supplier, one (1) wholesaler representative selected by the wholesaler but unassociated with the wholesaler; and an impartial arbitrator.
4. 1. 1. Not more than ten (10) business days after mutual agreement of both parties has been reached to arbitrate, each party shall designate, in writing, its one (1) arbitrator representative, and the party initiating arbitration shall request, in writing, a list of five (5) arbitrators from the American Arbitration Association or its successor and request that the list be mailed to each party by certified mail, return receipt requested.
    2. Not more than ten (10) business days after the receipt of the list of five (5) choices, the wholesaler arbitrator and the supplier arbitrator shall strike and disqualify up to two (2) names each from the list.
  2. Should either party fail to respond within the ten (10) business days or should more than one (1) name remain after the strikes, the American Arbitration Association shall make the selection of the impartial arbitrator from the names not stricken from the list.
5. 1. Not more than thirty (30) days after the final selection of the arbitration panel is made, the arbitration panel shall convene to decide the dispute.
  2. The panel shall conclude the arbitration within twenty (20) days after the arbitration panel convenes and shall render a decision by majority vote of the arbitrators within twenty (20) days from the conclusion of the arbitration.
  3. The award of the arbitration panel shall be final and binding on the parties as to the amount of compensation for the diminished value.
6. The cost of the impartial arbitrator, the stenographer, and the meeting site shall be equally divided between the wholesaler and the supplier. All other costs shall be paid by the party incurring them.
7. 1. 1. After both parties have agreed to arbitrate, should either party, except by mutual agreement, fail to abide by the time limitations as prescribed in subdivisions (b)(2), (4), and (5) of this section, or fail or refuse to make the selection of any arbitrators, or fail to participate in the arbitration hearings, the other party shall make the selection of its arbitrators and proceed to arbitration.
    2. The party who has failed or refused to comply as prescribed in this section shall be considered to be in default.
  2. Any party considered to be in default pursuant to this subsection shall have waived any and all rights the party would have had in the arbitration and shall be considered to have consented to the determination of the arbitration panel.

History. Acts 1991, No. 8, § 7; 1991, No. 866, § 7.

Case Notes

Applicability.

Distributor's claim under the Arkansas Franchise Practices Act, § 4-72-201 et seq., was not a claim against the company by a proposed purchaser of a wholesaler's business but, rather, by its own franchisee; the company's alleged interference with the potential purchase of another franchise was merely evidence used to support the distributor's claim and, thus, the distributor's claim was not preempted by this section. Miller Brewing Co. v. Ed Roleson, Jr., Inc., 365 Ark. 38, 223 S.W.3d 806 (2006).

Transfer.

Brewing company's obligation under § 3-5-1101 et seq., to approve a transfer of the wholesaler's business was conditioned upon the distributor's submitting written notice of intent to transfer; without this written notice, the company had no duty to approve a transfer. Southeastern Distrib. Co. v. Miller Brewing Co., 366 Ark. 560, 237 S.W.3d 63 (2006).

3-5-1109. Prohibited acts by wholesaler.

A wholesaler shall not do any of the following:

Fail to devote such efforts and resources to the sale and distribution of all the supplier's brands of beer which the wholesaler has been granted the right to sell or distribute as are required in the wholesaler's agreement with the supplier;
1. Sell or deliver beer to a retail licensee located outside the sales territory designated to the wholesaler by the supplier of a particular brand or brands of beer.
2. 1. Provided, however, during periods of temporary service interruptions impacting a particular sales territory, a supplier may appoint another wholesaler to service the sales territory during the period of temporary service interruption.
  2. A wholesaler who is designated to service the impacted sales territory during the period of temporary service interruption shall not be in violation of this subchapter and shall not have any of the rights provided under §§ 3-5-1108 and 3-5-1111 with respect to the temporary service territory.
1. Transfer the wholesaler's business without giving the supplier written notice of intent to transfer the wholesaler's business and, where required by this subchapter, receiving the supplier's approval for the proposed transfer.
2. Provided, consent or approval of the supplier shall not be required of any transfer of the wholesaler's business to a designated member, or of any transfer of less than ten percent (10%) of the wholesaler's business unless such transfer results in a change in control.
3. Provided, however, that the wholesaler shall give the supplier written notice of any change in ownership of the wholesaler.

History. Acts 1991, No. 8, § 4; 1991, No. 866, § 4.

3-5-1110. Transfer of wholesaler's business — Interference prohibited.

1. 1. Upon written notice of intent to transfer the wholesaler's business, any individual owning or deceased individual who owned an interest in a wholesaler may transfer the wholesaler's business to a designated member or to any other person who meets the nondiscriminatory, material, and reasonable qualifications and standards required by the supplier for similarly situated wholesalers.
  2. The consent or approval of the supplier shall not be required of any transfer of the wholesaler's business, including the assignment of the wholesaler's rights under the agreement, to a designated member shall not be withheld or unreasonably delayed to a proposed transferee who meets such nondiscriminatory, material, and reasonable qualifications and standards.
2. Provided, such designated member or transferee shall in no event be qualified as a transferee without the written approval or consent of the supplier where such proposed transferee shall have been involved in any of the following:
  1. Insolvency, filing of any voluntary or involuntary petition under any bankruptcy or receivership law, or execution of an assignment for the benefit of creditors;
  2. Revocation or suspension of an alcoholic beverage license by the regulatory agency of the United States Government or any state, whereby service was interrupted for more than thirty-one (31) days;
  3. Conviction of the proposed transferee or any owner thereof of a felony under the United States Code or the laws of any state which reasonably may adversely affect the good will or interest of the wholesaler or supplier; or
  4. Had an agreement involuntarily terminated, cancelled, not renewed, or discontinued by a supplier for good cause.
The supplier shall not interfere with, prevent, or unreasonably delay the transfer of the wholesaler's business, including an assignment of wholesaler's rights under the agreement, if the proposed transferee is a designated member or if the transferee other than a designated member meets such nondiscriminatory, material and reasonable qualifications and standards required by the supplier for similarly situated wholesalers. Where the transferee is other than a designated member, the supplier may in good faith and for good cause related to the reasonable qualifications refuse to accept the transfer of the wholesaler's business or the assignment of the wholesaler's rights under the agreement.

History. Acts 1991, No. 8, § 6; 1991, No. 866, § 6.

A.C.R.C. Notes. As enacted in (b), the language “if the proposed transferee is other than a designated member” immediately preceded “or if the transferee other than a designated member meets such nondiscriminatory, material, and reasonable qualifications.”

Case Notes

In General.

3-5-1111. Conditions for modification of agreement.

Notwithstanding any agreement and except as otherwise provided for in this subchapter, a supplier shall not amend or modify an agreement, cause a wholesaler to resign from an agreement, or cancel, terminate, fail to renew, or refuse to continue under an agreement, unless the supplier has complied with all of the following:
1. Has satisfied the applicable notice requirements of this section;
2. Has acted in good faith; and
3. Has good cause for the amendment, modification, cancellation, termination, nonrenewal, discontinuance, or forced resignation.
For each amendment, modification, termination, cancellation, nonrenewal, or discontinuance, the supplier shall have the burden of proving:
1. That it has acted in good faith;
2. That the notice requirements under this section have been complied with; and
3. That there was good cause for the amendment, modification, termination, cancellation, nonrenewal, or discontinuance.
1. Notwithstanding any agreement and except as otherwise provided in this section, and in addition to the time limits set forth in subdivision (d)(4) of this section, the supplier shall furnish written notice of the amendment, modification, termination, cancellation, nonrenewal, or discontinuance of an agreement to the wholesaler not less than thirty (30) days before the effective date of the amendment, modification, termination, cancellation, nonrenewal, or discontinuance.
2. The notice shall be by certified mail and shall contain all of the following:
  1. A statement of intention to amend, modify, terminate, cancel, not renew, or discontinue the agreement;
  2. A statement of the reason for the amendment, modification, termination, cancellation, nonrenewal, or discontinuance; and
  3. The date on which the amendment, modification, termination, cancellation, nonrenewal, or discontinuance takes effect.
Notwithstanding any agreement, good cause shall exist for the purposes of a termination, cancellation, nonrenewal, or discontinuance under subdivision (a)(3) of this section when all of the following occur:
1. There is a failure by the wholesaler to comply with a provision of the agreement which is both reasonable and of material significance to the business relationship between the wholesaler and the supplier;
2. The supplier first acquired knowledge of the failure described in subdivision (d)(1) of this section not more than twenty-four (24) months before the date notification was given pursuant to subsection (c) of this section;
3. The wholesaler was given notice by the supplier of failure to comply with the agreement; and
4. The wholesaler has been afforded thirty (30) days in which to submit a plan of corrective action to comply with the agreement and an additional ninety (90) days to cure such noncompliance in accordance with the plan.
Notwithstanding subsections (a) and (c) of this section, a supplier may terminate, cancel, fail to renew, or discontinue an agreement immediately upon written notice given in the manner and containing the information required by subsection (c) of this section, if any of the following occur:
1. Insolvency of the wholesaler, the filing of any petition by or against the wholesaler under any bankruptcy or receivership law, or the assignment for the benefit of creditors or dissolution or liquidation of the wholesaler which materially affects the wholesaler's ability to remain in business;
2. Revocation or suspension of the wholesaler's state or federal license by the appropriate regulatory agency whereby the wholesaler cannot service the wholesaler's sales territory for more than thirty-one (31) days;
3. The wholesaler, or a partner or an individual who owns ten percent (10%) or more of the partnership or stock of a corporate wholesaler, has been convicted of a felony under the United States Code or the laws of any state which reasonably may adversely affect the good will or interest of the wholesaler or supplier. However, an existing stockholder or stockholders, or partner or partners, or a designated member or members, shall have, subject to the provisions of this subchapter, the right to purchase the partnership interest or the stock of the offending partner or stockholder prior to the conviction of the offending partner or stockholder, and if the sale is completed prior to conviction the provisions of this subdivision (e)(3) shall not apply;
4. There was fraudulent conduct relating to a material matter on the part of the wholesaler in dealings with the supplier or its product. Provided, however, the supplier shall have the burden of proving fraudulent conduct relating to a material matter on the part of the wholesaler in any legal action challenging such termination;
5. 1. The wholesaler failed to confine to the designated sales territory its sales of a brand or brands to retailers.
  2. Subdivision (e)(5)(A) of this section does not apply if there is a dispute between two (2) or more wholesalers as to the boundaries of the assigned territory and the boundaries cannot be determined by a reading of the description contained in the agreements between the supplier and the wholesalers;
6. A wholesaler has failed to pay for beer ordered and delivered in accordance with established terms and the wholesaler fails to make full payment within two (2) business days after receipt of written notice of the delinquency and demand for immediate payment from the supplier;
7. A wholesaler intentionally has made a transfer of the wholesaler's business, other than a transfer to a designated member without prior written notice to the supplier, and has failed, within thirty (30) days from the receipt of written notice from the supplier of its intent to terminate on the ground of such transfer, to reverse said transfer of the wholesaler's business;
8. A wholesaler intentionally has made a transfer of the wholesaler's business, other than a transfer to a designated member, although the wholesaler has prior to the transfer received from the supplier a timely notice of disapproval of the transfer in accordance with this subchapter; or
9. The wholesaler intentionally ceases to carry on business with respect to any of the supplier's brand or brands previously serviced by a wholesaler in its territory designated by the supplier, unless such cessation is due to force majeure or to labor dispute and the wholesaler has made good faith efforts to overcome such events. Provided, however, this shall affect only that brand or brands with respect to which the wholesaler ceased to carry on business.
1. Notwithstanding subsections (a), (c), and (e) of this section, a supplier may terminate, cancel, not renew, or discontinue an agreement upon not less than thirty (30) days' prior written notice if the supplier discontinues production or discontinues distribution in this state of all the brands sold by the supplier to the wholesaler.
2. Provided, however, nothing in this section shall prohibit a supplier from:
  1. Upon not less than thirty (30) days' notice, discontinuing the distribution of any particular brand or package of beer; or
  2. Conducting test marketing of a new brand of beer which is not currently being sold in this state, provided that the supplier has notified the Director of the Alcoholic Beverage Control Division in writing of its plans to test market, which notice shall describe the market area in which the test shall be conducted, the name or names of the wholesaler or wholesalers who will be selling the beer, the name or names of the brand of beer being tested, and the period of time, not to exceed eighteen (18) months, during which the testing will take place.

History. Acts 1991, No. 8, § 5; 1991, No. 866, § 5.

Subchapter 12 — Microbrewery-Restaurants

Effective Dates. Acts 1999, No. 1065, § 6: Emergency clause failed to pass. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that present law is inadequate as it relates to the serving of alcoholic beverages at festivals; that this act clarifies that law; and that this act should go into effect as soon as possible so that the benefits hereof will be available during the upcoming festival season. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 95 et seq.

3-5-1201. Legislative determinations and intent.

The General Assembly reaffirms the policy of this state of strict enforcement of laws and rules applicable to the manufacture or sale of beer including, but not limited to, those establishing the three-tier distribution system with prohibitions against ownership and employment interests between the three (3) tiers, or the “three-tier system”.
The General Assembly determines:
1. That the tourist and the convention industries contribute substantially to the revenues of business enterprises in this state and that income from the tourist trade, conventions, and allied industries is essential to the continued well-being and prosperity of this state;
2. That there is extreme competition among states throughout the nation for the tourist and convention business; and
3. That all reasonable steps should be taken to retain, foster, and encourage this business and to create favorable competitive conditions therefor in this state.
In order to encourage tourists and conventions to come to Arkansas, it is essential that visitors to the state be provided accommodations, services, and facilities of a nature to which they are accustomed and competitive with those offered in other states and areas.
It is the intent and purpose of this subchapter to authorize the legal operation of microbrewery-restaurants as herein provided as a limited exception to the three-tier system.

History. Acts 1991, No. 611, § 1; 2019, No. 315, § 75.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

3-5-1202. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Barrel” means thirty-one gallons (31 gals.);
“Beer” means any fermented liquor made from malt or any substitute therefor and having an alcoholic content not in excess of five percent (5%) by weight;
“Beer, malt beverage, and hard cider law or rule” means any law of this state, or any rule promulgated and adopted with respect thereto, that is:
1. Applicable to a person applying for or holding a license to manufacture beer, malt beverage, or hard cider; or
2. Applicable to a person applying for or holding a license to sell beer, malt beverage, or hard cider in a restaurant for consumption on or off the licensed premises;
“Board” means the Alcoholic Beverage Control Board of this state, or its successor agency;
“Conflicting beer, malt beverage, or hard cider law or rule” means any beer, malt beverage, or hard cider law or rule that prohibits or conflicts with the otherwise legal licensing and operation of microbrewery-restaurants, as authorized in this subchapter, by requiring any brewer to sell only to a licensed wholesaler, or requiring any licensed retailer to sell only beer, malt beverage, or hard cider purchased from a licensed wholesaler, or prohibiting any brewer or retailer from having any ownership or employment interest in the business of the other or the premises of the other, or requiring that the excise and enforcement tax on beer, malt beverage, or hard cider manufactured by a brewer be paid by a licensed wholesaler, or any beer, malt beverage, or hard cider law or rule of similar direct or indirect effect;
“Director” means the Director of the Alcoholic Beverage Control Division of this state, or its successor agency;
“Dry area” means any area in this state in which the manufacture or sale of beer is prohibited by a local-option election heretofore or hereafter held pursuant to applicable laws of this state;
“Federal regulations” means regulations adopted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives applicable to and consistent with a microbrewery-restaurant operation as authorized in this subchapter, incorporated herein by this reference, including, but not limited to, 27 C.F.R. Part 25, § 25.25;
“Malt beverage” means any liquor brewed from the fermented juices of grain and having an alcoholic content of not less than five percent (5%) nor more than twenty-one percent (21%) by weight;
“Person” means any natural person, partnership, association, or corporation; and
“Restaurant” means any public or private place which is kept, used, maintained, advertised, and held out to the public or to a private or restricted membership as a place where complete meals are actually and regularly served, such place being provided with adequate and sanitary kitchen and dining equipment and a seating capacity of at least fifty (50) people and having employed a sufficient number and kind of employees to prepare, cook, and serve suitable food for its guests or members. At least one (1) meal per day shall be served, and the place shall be open a minimum of five (5) days per week, with the exception of holidays, vacations, and periods of redecorating.

History. Acts 1991, No. 611, § 1; 1995, No. 491, § 1; 2019, No. 315, §§ 76, 77.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2019 amendment substituted “rule” for “regulation” twice in the introductory language of (3) and three times in (5).

3-5-1203. Effect on other laws.

Every provision of this subchapter shall be subject to all beer, malt beverage, and hard cider laws and rules, except that conflicting beer, malt beverage, and hard cider laws and rules shall be inapplicable to any provision of this subchapter to the extent that they conflict herewith.

History. Acts 1991, No. 611, § 1; 1995, No. 491, § 2; 2019, No. 315, § 78.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2019 amendment substituted “rules” for “regulations” twice.

3-5-1204. Licenses — Scope — Restrictions.

The Director of the Alcoholic Beverage Control Division may issue a microbrewery-restaurant license which shall authorize the licensee to do the following:
1. 1. To:
    1. Operate a microbrewery which shall manufacture one (1) or more varieties of beer, malt beverage, or hard cider in an aggregate quantity not to exceed forty-five thousand (45,000) barrels per year from all facilities under common ownership with the microbrewery; and
    2. Store the manufactured beer, malt beverage, or hard cider and any other beer, malt beverage, or hard cider which the microbrewery-restaurant licensee may purchase from wholesalers and small brewers licensed by this state on the microbrewery-restaurant licensed premises and on the premises of the one (1) separate brewing facility of a microbrewery-restaurant authorized under subdivision (a)(9) of this section.
  2. Two (2) or more microbrewery-restaurants sharing common ownership or a brewery of any size sharing common ownership with a microbrewery-restaurant shall be considered one (1) entity for purposes of:
    1. Calculating barrel production; and
    2. Transportation of beer, malt beverage, or hard cider produced by one (1) entity among no more than three (3) microbrewery- restaurant facilities of the one (1) entity;
2. To operate a restaurant which shall be the sales outlet for beer, malt beverage, or hard cider manufactured by the microbrewery and which shall sell the beer, malt beverage, or hard cider and any other beer, malt beverage, hard cider, or wine which the microbrewery-restaurant licensee may purchase from wholesalers licensed by this state for consumption on the licensed premises or purchased directly from licensed small brewers allowed to distribute directly to the microbrewery-restaurant;
3. 1. To sell on the premises beer, malt beverage, or hard cider manufactured by the microbrewery or commonly owned facility in brewery-sealed packages at retail directly to the consumer for off-premises consumption on any day of the week; and
  2. To serve on the premises complimentary samples of beer, malt beverages, or hard cider produced by the microbrewery-restaurant;
4. 1. To provide products it manufactures to charitable or nonprofit organizations or sell for resale products it manufactures to charitable or nonprofit organizations holding valid special-event permits as provided for by the Alcoholic Beverage Control Board, except that the microbrewery-restaurant licensee may not sell to nonprofit organizations holding private club licenses.
  2. The sale of those products shall be limited to the duration of the particular special event;
5. To sell beer, malt beverages, or hard cider manufactured by the microbrewery-restaurant to a nonprofit corporation leasing space in the microbrewery-restaurant or in an adjoining building;
6. 1. To sell at retail by the drink or by the package beer produced on the premises of the microbrewery-restaurant if all sales occur in a wet territory and at fairs and food and beer festivals, with the permission and the consent of the management of events.
  2. A sales and use tax permit is required for sales under this subdivision (a)(6);
7. Sell beer, malt beverage, or hard cider of its own manufacture to a wholesale dealer licensed by this state for the purpose of resale to other retail license holders as set forth by §§ 3-4-605 and 3-5-101, dealing with wholesale distribution of beer, malt beverage, and hard cider;
8. 1. Conduct beer-, malt beverage-, and hard cider-tasting events for educational or promotional purposes at any location in wet areas of this state if:
    1. A request for approval to conduct a beer-, malt beverage-, and hard cider-tasting event is received by the Alcoholic Beverage Control Division at least two (2) weeks before the event;
    2. The request is approved by the division; and
    3. Written notice is given by the division to the permit holder at least five (5) days before the event.
  2. Only beer, malt beverage, and hard cider produced by the microbrewery-restaurant shall be used for an event approved under this subdivision (a)(8).
  3. This subdivision (a)(8) does not authorize the conducting of a beer-, malt beverage-, and hard cider-tasting event at the one (1) separate brewing facility of a microbrewery-restaurant authorized under subdivision (a)(9) of this section; and
9. 1. Maintain one (1) separate brewing facility for the production or storage of beer, malt liquor, or hard cider as needed to meet demand, except that each facility used by the microbrewery-restaurant licensee shall not in the aggregate produce more than forty-five thousand (45,000) barrels of beer, malt beverage, and hard cider per year; and
  2. Beer, malt beverage, and hard cider produced by a separate brewing facility of a microbrewery-restaurant licensee shall be:
    1. Sold to a licensed wholesaler; or
    2. Transported:
      1. From the separate brewing facility to a microbrewery-restaurant commonly owned by the owner of the separate brewing facility for retail sale for consumption on or off the licensed premises; and
      2. To the separate brewing facility from a microbrewery-restaurant commonly owned by the owner of the separate brewing facility for storage, production, or packaging.
The director shall not issue a microbrewery-restaurant license if the microbrewery-restaurant premises are in a dry area.
1. After July 31, 2017, the director shall not issue a microbrewery-restaurant license to a person or entity having more than five percent (5%) common ownership with a person or entity holding a license under the Arkansas Small Brewery Act, § 3-5-1401 et seq., or qualifying as a supplier under § 3-5-1102.
2. However, the director may issue an additional microbrewery-restaurant license after July 31, 2017, to a person or entity holding a microbrewery-restaurant license as of July 31, 2017, and having more than five percent (5%) common ownership with a person or entity if the person or entity holds a license under the Arkansas Small Brewery Act, § 3-5-1401 et seq., or qualifies as a supplier under § 3-5-1102.

History. Acts 1991, No. 611, § 1; 1995, No. 491, § 3; 1997, No. 916, § 1; 1999, No. 1065, § 2; 2001, No. 805, § 1; 2015, No. 857, § 5; 2017, No. 308, § 1; 2017, No. 865, § 1.

A.C.R.C. Notes. Prior to the 2001 amendment, § 3-5-1204(b) contained additional language as follows:

“(2) Any beer and malt beverage produced by the microbrewery-restaurant licensee for sale to a licensed wholesaler shall not be considered as on-premises sales for the purpose of determining Sunday sales eligibility of the restaurant as set forth by the board. (3) Any permittee licensed under this subsection (b) may transport and ship its beer and malt beverages out of state by common carrier or other appropriate parcel delivery service, and any common carriers or other appropriate parcel delivery services may accept beer and malt beverages manufactured by the licensee for delivery outside the State of Arkansas to business entities licensed and qualified to accept such products in their respective states.”

The above language was neither set out in nor specifically deleted by Act 805. Because of the omission of subdivisions (2) and (3), the remaining language has been redesignated as (b)(1) and (2).

Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment rewrote the section and made stylistic changes.

The 2017 amendment by No. 308 substituted “forty-five thousand (45,000) barrels per year from all facilities under common ownership with the microbrewery” for “twenty thousand (20,000) barrels per year” in (a)(1)(A)(i); inserted “and on the premises of the one (1) separate brewing facility of a microbrewery-restaurant authorized under subdivision (a)(9) of this section” in (a)(1)(A)(ii); redesignated (a)(1)(B) as the present introductory language of (a)(1)(B) and (a)(1)(B)(i); added “for purposes of” in the introductory language of (a)(1)(B); added (a)(1)(B)(ii); inserted “or commonly owned facility” in (a)(3)(A); added (a)(8)(C); and added (a)(9).

The 2017 amendment by No. 865 added (c).

3-5-1205. Fees and taxes.

A microbrewery-restaurant licensee shall:

Pay any applicable city or county license or permit fees and barrelage or taxes and shall pay a state licensing fee to the Alcoholic Beverage Control Division of seven hundred fifty dollars ($750) per fiscal year to manufacture and sell its beer, malt beverages, and hard cider for consumption both on and off the premises and to sell any other beer, malt beverages, and hard cider purchased from a licensed wholesaler for consumption on the premises;
Measure beer, malt beverages, and hard cider manufactured by the microbrewery, otherwise comply with applicable rules respecting excise and enforcement tax determination of the beer, malt beverages, and hard cider, and pay any applicable bond or deposit and the amount of the state excise tax and enforcement tax to this state, but free from the fees and taxes provided in § 3-5-205, and as required by §§ 3-7-104 and 3-7-111; and
Pay a tax at the rate of seven dollars and fifty cents ($7.50) per barrel, and proportionately for larger and smaller gallonages per barrel, on all beer, malt beverages, and hard cider in quantities of up to forty-five thousand (45,000) barrels per year produced and sold or offered for sale in the state.

History. Acts 1991, No. 611, § 1; 1995, No. 491, § 4; 1997, No. 916, § 2; 1999, No. 319, § 2; 2009, No. 294, § 15; 2015, No. 857, § 6; 2017, No. 308, § 2; 2019, No. 315, § 79.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2009 amendment, in (3), substituted “two hundred dollars ($200)” for “one hundred fifty dollars ($150)” and made minor stylistic changes.

The 2015 amendment inserted “but free from the fees and taxes provided in § 3-5-205, and” in (2); and rewrote (3).

The 2017 amendment substituted “forty-five thousand (45,000)” for “twenty thousand (20,000)” in (3).

The 2019 amendment substituted “rules” for “regulations” in (2).

3-5-1206. Licenses — Application.

No microbrewery-restaurant license shall be issued unless the applicant shall file with the Director of the Alcoholic Beverage Control Division a verified application, in such form and with such content as the director shall require, accompanied by payment of the applicable fee.

History. Acts 1991, No. 611, § 1.

3-5-1207. Operation without license prohibited.

It shall be unlawful and constitute a Class A misdemeanor for any person not holding a valid microbrewery-restaurant license to operate as a microbrewery-restaurant as herein provided.

History. Acts 1991, No. 611, § 1; 2005, No. 1994, § 193.

Amendments. The 2005 amendment inserted “Class A”.

3-5-1208. Rules.

The Director of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Board, and the Secretary of the Department of Finance and Administration, and any other applicable agency of this state, shall promulgate and adopt such rules as they deem necessary for the implementation of this subchapter, which rules may consist in whole or in part of the federal regulations.

History. Acts 1991, No. 611, § 1; 2019, No. 315, § 80; 2019, No. 910, § 3324.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and substituted “rules” for “regulations” twice.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”; and made stylistic changes.

Subchapter 13 — Nonresident Beer Seller's Permits

Effective Dates. Acts 1995, No. 537, § 15: July 1, 1995.

Acts 1999, No. 96, § 11: Feb. 16, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that economic development and the creation of additional jobs for citizens of Arkansas preserves the public peace, health and safety of the State; that the establishment of wholesaler support centers in the State will create additional jobs that would go to other states that are competing for the establishment of such centers, thereby creating the need for our state's business entities to be able to compete for such centers immediately. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Research References

Am. Jur. 48 Am. Jur. 2d, Intoxicating Liquors, §§ 125,137.

3-5-1301. Short title.

This subchapter shall be known as the “Nonresident Beer Seller's Permit Act of 1995”.

History. Acts 1995, No. 537, § 1.

3-5-1302. Definitions.

As used in this subchapter:

“Beer” shall have the meaning set forth in § 3-5-202;
“Brewery” shall have the meaning set forth in § 3-5-202;
“Division” shall mean the Alcoholic Beverage Control Division of the Department of Finance and Administration of the State of Arkansas;
“Malt liquor” shall have the meaning set forth in § 3-1-102;
“Manufacturer” shall have the meaning set forth in § 3-1-102;
“Supplier” shall have the meaning set forth in § 3-5-1102;
“Wholesale dealer and distributor” shall have the meaning set forth in § 3-5-202; and
“Wholesaler support center” means a facility located within a wholesaler's premises at which beer and malt are stored by a manufacturer for resale to wholesalers or distributors within or without the state.

History. Acts 1995, No. 537, § 2; 1999, No. 96, § 1.

3-5-1303. When permit required.

A nonresident seller's permit is required of any manufacturer, brewery, supplier, or other such person who sells or distributes beer or malt to any wholesale dealer and distributor, regardless of whether the sale is consummated inside or outside this state.
1. The holder of a nonresident seller's permit may also apply for and receive a wholesaler support center permit.
2. An applicant for a wholesaler support center permit must also be the holder of a nonresident seller's permit.

History. Acts 1995, No. 537, § 3; 1999, No. 96, § 2.

3-5-1304. Authorized transactions.

The holder of a nonresident seller's permit is authorized to:
1. Solicit and take orders for beer or malt from a wholesale dealer and distributor; and
2. Ship or cause to be shipped into this state beer or malt in consummation of a sale made to a wholesale dealer or distributor.
Any other provisions of this title notwithstanding, the holder of a wholesaler support center permit is also authorized to:
1. Solicit and take orders for beer or malt from a wholesaler dealer and distributor;
2. Ship or cause to be shipped into this state to the premises of the wholesaler support center non-tax paid beer or malt for storage and resale to a wholesale dealer or distributor within or without this state;
3. Fill orders for beer or malt from in-state wholesale dealers or distributors provided that the receiving in-state wholesaler or distributor pays all applicable state taxes in the same manner as would apply had the wholesaler purchased from an out-of-state nonresident seller permit holder;
4. Pay to or compensate a wholesaler or distributor for rented or leased space within the wholesaler's premises for the storage of beer or malt within the confines of the wholesaler support center; and
5. Compensate a wholesaler or distributor for the loading, unloading and handling of beer or malt and for administrative and other expenses associated with operating the wholesaler support center on the wholesaler's premises.

History. Acts 1995, No. 537, § 4; 1999, No. 96, § 3.

3-5-1305. Prohibited actions.

No holder of a nonresident seller's permit or wholesaler support center permit nor any officer, director, agent, or employee of the holder nor any affiliate of the holder, regardless of whether the affiliation is corporate or by management, direction, or control, may do any of the following:

Fail to make or file a report with the Alcoholic Beverage Control Division as required by rules of the division;
Advertise any beer or malt contrary to the laws of this state or to the rules of the division or sell beer or malt for resale in this state in violation of advertising or labeling rules of the division;
Sell beer or malt for resale inside this state or cause it to be brought into this state in a size of container prohibited by this subchapter or by a rule of the division;
Solicit or take orders for beer or malt from a person not authorized to import beer or malt into this state for the purpose of resale. Provided, however, a nonresident beer seller permittee also holding a wholesaler support center permit may engage in those activities set forth in § 3-5-1304(b);
Induce, persuade, or influence or attempt to induce, persuade, or influence a person to violate this subchapter or a rule of the division or conspire with a person to violate this subchapter or a rule of the division;
Exercise a privilege granted by a nonresident seller's permit while an order or suspension against the permit is in effect;
Take or fail to take any action that would cause any type of fixing of wholesale or retail prices in the state. Suggestion of wholesale or retail prices will not be considered to be a violation of this provision;
Do any other act by a supplier in violation of § 3-5-1107;
Hold any wholesaler's permit under § 3-5-206; or
Do any other act that violates any regulation adopted by the division.

History. Acts 1995, No. 537, § 5; 1999, No. 96, § 4.

3-5-1306. Application for permit.

Any manufacturer, importer, or other person desiring to obtain a nonresident seller's permit or wholesaler support center permit may make application for such to the Alcoholic Beverage Control Division on forms provided by the division.
1. 1. In addition, every applicant for a nonresident seller's permit shall pay to the division an annual permit fee of three hundred fifty dollars ($350) if the applicant shipped, sold, or otherwise distributed fewer than two hundred (200) barrels, as defined for excise tax purposes under this Code, of any beer or malt in this state in the year immediately preceding the application.
  2. If the applicant shipped, sold, or otherwise distributed in this state from two hundred (200) to one thousand (1,000) barrels in the year immediately preceding application, the applicant shall pay an annual permit fee of one thousand dollars ($1,000).
  3. If the applicant shipped, sold, or otherwise distributed in this state more than one thousand (1,000) barrels in the year immediately preceding application, the applicant shall pay an annual permit fee of two thousand dollars ($2,000).
2. Each holder of a nonresident seller's permit shall pay the permit fee based on the previous calendar year's shipments into the state.
1. 1. Each permit shall be valid for one (1) fiscal year which shall run from the first day of July to the last day of June.
  2. Any applicant receiving a permit during the course of any fiscal year shall not be relieved of the obligation to pay the full amount of the annual permit fee.
2. 1. As long as a permit has not been revoked or cancelled, it shall be renewable for successive years upon the payment of the appropriate annual permit fee on or before June 30 of each calendar year.
  2. Any person not renewing the permit described in subsection (b) of this section on or before June 30 shall be subject to the penalties and provisions provided for in § 3-4-216.
An applicant for a wholesaler support center permit shall pay an annual permit fee of two thousand dollars ($2,000).

History. Acts 1995, No. 537, § 6; 1999, No. 96, § 5; 2009, No. 294, § 16, 17.

Amendments. The 2009 amendment, in (b), substituted “three hundred fifty dollars ($350)” for “one hundred dollars ($100)” in (b)(1)(A), substituted “one thousand dollars ($1,000)” for “five hundred dollars ($500)” in (b)(1)(B), substituted “two thousand dollars ($2,000)” for “one thousand dollars ($1,000)” in (b)(2); substituted “two thousand dollars ($2,000)” for “one thousand dollars ($1,000)” in (d); and made related and minor stylistic changes.

3-5-1307. Wholesale dealers and distributors to import from nonresident seller permittees only.

No wholesale dealer and distributor licensed under § 3-5-206 may purchase or order any malt beverage for importation into the state from any source other than one possessed of a nonresident seller's permit.
No such wholesale dealer and distributor may purchase or order any beer or malt liquor for importation into this state from any permittee whose permit has been revoked or suspended after such wholesaler has received notice of the revocation or suspension.

History. Acts 1995, No. 537, § 7.

3-5-1308. Nonresident seller to be primary American source of supply — Definition.

No holder of a nonresident seller's permit or wholesaler support center permit may solicit, accept, or fill an order for beer or malt from a holder of any type of wholesaler's permit unless the nonresident seller or wholesaler support center permittee is the primary American source of supply for the brand of beer or malt which is ordered.
1. In this section, “primary American source of supply” shall mean:
  1. 1. The producer;
    2. The owner of the commodity at the time it becomes a marketable product; or
    3. The bottler; or
  2. The exclusive agent of any of those.
2. To be the “primary American source of supply”, the nonresident seller or wholesaler support center permittee must be the first source, that is, the closest source to the manufacturer, in the channel of commerce from whom the product can be secured by persons conducting business in Arkansas.

History. Acts 1995, No. 537, § 8; 1999, No. 96, § 6.

3-5-1309. Investigation of permittees.

If a representative of the Alcoholic Beverage Control Division or the Revenue Division of the Department of Finance and Administration wishes to examine the book accounts, records, minutes, letters, memoranda, documents, checks, telegrams, constitution and bylaws, or other records of a nonresident seller's permittee or wholesaler support center permittee, he or she shall make a written request to the permittee or his or her duly authorized manager or representative or, if the permittee is a corporation, to any officer of the corporation.
When a request for an examination is made, the person to whom it is directed shall immediately allow the representative to conduct the examination.
The representative may investigate the organization, conduct, and management of any nonresident seller's permittee or wholesaler support center permittee and may make copies of any records which in the judgment of the representative may show or tend to show that the permittee has violated the law, a regulation, or the terms of his or her permit.
A representative may not make public any information obtained under this section except to a law enforcement officer of this state or in connection with an administrative or judicial proceeding in which the state or the Alcoholic Beverage Control Division is a party concerning the cancellation or suspension of a nonresident seller's permit or wholesaler support center permit, the collection of taxes due under state law, or the violation of state law.
The Alcoholic Beverage Control Division may revoke or suspend a nonresident seller's permit or wholesaler support center permit in accordance with this title if the permittee or his or her authorized representative fails or refuses to permit an examination authorized by this section or to permit the making of copies of any documents as provided by this section, without regard to whether the document is inside or outside the state, or if the permittee or his or her authorized representative fails or refuses to answer a question of an officer incident to an examination or investigation in progress.

History. Acts 1995, No. 537, § 9; 1999, No. 96, § 7.

3-5-1310. Administrative sanctions.

The Director of the Alcoholic Beverage Control Division and the Alcoholic Beverage Control Board are empowered to administer the full range of penalties available for other administrative proceedings before it, including, but not limited to, fines, suspension, cancellation, or revocation of such permits which have been found to be in violation of the provisions of this subchapter.
Any violation of this subchapter shall be classified as a Class A permit violation pursuant to the terms of § 3-4-402.

History. Acts 1995, No. 537, § 10.

Subchapter 14 — Arkansas Small Brewery Act

3-5-1401. Title.

This subchapter shall be known and may be cited as the “Arkansas Small Brewery Act”.

History. Acts 2003, No. 1805, § 1; 2015, No. 857, § 7.

3-5-1402. Legislative determinations and intent.

The General Assembly finds that:
1. The creation and long-term success of small businesses in this state is vital to the continued economic well-being and prosperity of the State of Arkansas; and
2. All reasonable steps should be taken to retain, foster, and encourage small business and to create favorable conditions for small business in this state.
It is the intent and purpose of this subchapter to authorize the legal operation of native breweries in order to assure that these favorable conditions exist in this state.

History. Acts 2003, No. 1805, § 2.

3-5-1403. Definitions.

As used in this subchapter:

“Barrel” means thirty-one gallons (31 gals.);
“Beer” means any fermented liquor made from malt or any substitute having an alcoholic content of not more than five percent (5%) by weight;
“Brewery” means a small brewery or contract brewing company;
“Contract brewing company” means any licensed brewery that hires another company to produce a portion of its beer, malt beverage, or hard cider;
“Front-of-house employee” means an employee of a small brewery not involved in the production or transportation of brewery beer or wholesale activities of the brewery, including without limitation:
1. A bartender;
2. A host;
3. Kitchen staff;
4. Janitorial staff; and
5. Servers;
“Hard cider” means liquor brewed from the fermented juices of fruit and containing more than three percent (3%) and not more than twenty-one percent (21%) alcohol by weight;
“Malt beverage” means any liquor brewed from the fermented juices of grain and having an alcoholic content of no less than five percent (5%) nor more than twenty-one percent (21%) by weight;
“Person” means any natural person, partnership, association, or corporation;
“Restaurant” means a public or private place that:
1. Is kept, used, maintained, advertised, and held out to the public or to a private or restricted membership as a place where complete meals are actually and regularly served;
2. Provides adequate and sanitary kitchen and dining equipment;
3. Has a seating capacity of at least fifty (50) persons;
4. Employs a sufficient number and variety of employees to prepare, cook, and serve suitable food for its guests or members;
5. Serves at least one (1) meal per day; and
6. Is open a minimum of five (5) days per week, with the exception of holidays, vacations, and periods of redecorating;
1. “Small brewery” means any licensed facility located in Arkansas that manufactures fewer than forty-five thousand (45,000) barrels of beer, malt beverage, and hard cider per year for sale or consumption.
2. “Small brewery” does not include a microbrewery-restaurant; and
“Small brewery tap room” means a small brewery off-premises retail site located in a wet territory holding a small brewery license.

History. Acts 2003, No. 1805, § 3; 2009, No. 1459, § 1; 2015, No. 857, § 8; 2015, No. 1237, § 2; 2017, No. 950, § 3.

Amendments. The 2009 amendment deleted former (3), which defined “board,” and redesignated the subsequent subdivisions accordingly; and substituted “thirty thousand (30,000)” for “60,000” in present (13).

The 2015 amendment by No. 857 deleted the definitions for “Director”, “Microbrewery-restaurant”, “Native brewer”, “Producer brewer”, and “Restaurant”; rewrote the definition of “Small brewery”; and made stylistic changes.

The 2015 amendment by No. 1237 inserted the definition of “Hard cider”; inserted “and hard cider” after “malt beverages” throughout the section, and made stylistic changes.

The 2017 amendment added the definitions for “Front-of-house employee”, “Restaurant”, “Small brewery tap room”; and redesignated the subdivisions accordingly.

3-5-1404. Effect on other laws.

Every provision of this subchapter is subject to all beer, malt beverage, and hard cider laws and rules not in conflict with the provisions of this subchapter.

History. Acts 2003, No. 1805, § 4; 2019, No. 315, § 81.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

3-5-1405. Licenses — Scope — Restrictions.

The Director of the Alcoholic Beverage Control Division may issue a license for a licensee to operate a small brewery that:
1. Manufactures at its licensed facility no less than thirty-five percent (35%) of its beer, malt beverages, and hard cider to be sold in the state and no more than forty-five thousand (45,000) barrels per year;
2. Sells to wholesale or to the consumer at the small brewery premises for consumption, either on or off the premises, brand name products of the licensed facility;
3. Stores any beer, malt beverages, and hard cider legally purchased for resale on the premises and on the premises of the one (1) separate brewing facility of a small brewery authorized under subdivision (a)(9) of this section;
4. Serves on the premises:
  1. Complimentary samples of beer produced by the small brewery; and
  2. 1. Spirituous liquors for on-premises consumption in a taproom under the license of the small brewery.
    2. Subdivision (a)(4)(B)(i) of this section authorizing on-premises consumption is effective only in cities and counties, or portions of cities and counties, in which the manufacture or sale of intoxicating liquor is not prohibited as a result of a local option election held under Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, and in which the sale of alcoholic beverages for on-premises consumption has been approved by a majority vote at a referendum election as provided in this chapter;
5. Sells:
  1. At retail, by the drink or by the package, beer produced on the premises of the small brewery if all sales occur in a wet territory; or
  2. 1. At fairs and food and beer festivals with the permission and the consent of the management of the events.
    2. A sales and use tax permit also is required for sales under subdivision (a)(5)(B)(i) of this section;
6. 1. 1. Sells and transports:
      1. Beer produced on the premises of the small brewery to wholesale and small brewery license holders;
      2. Beer, malt beverages, and hard cider produced on the premises of the small brewery to retail license holders and small brewery license holders if the total production of the permitted brewery does not exceed fifteen thousand (15,000) barrels per year from all facilities under common ownership with the small brewery.
    2. Each permitted brewery shall submit documentation of production each year to renew the permit with the Alcoholic Beverage Control Division.
    3. A small brewery may distribute no more than fifteen thousand (15,000) barrels per year.
  2. 1. To sell and transport beer under subdivision (a)(6)(A) of this section, the small brewery license holder shall obtain a small brewery wholesale permit.
    2. The small brewery license holder shall pay a fee of two hundred fifty dollars ($250) per year for the permit under subdivision (a)(6)(B)(i) of this section;
7. Sells for consumption on the premises of the small brewery:
  1. Beer produced by the small brewery or another small brewery;
  2. Wine; or
  3. Hard cider;
8. Operates no more than two (2) small brewery tap rooms; and
9. 1. Maintains one (1) separate brewing facility for the production or storage of beer, malt liquor, or hard cider as needed to meet demand, except that each facility used by the small brewery licensee shall not in the aggregate produce more than forty-five thousand (45,000) barrels of beer, malt beverage, and hard cider per year.
  2. Beer, malt beverage, and hard cider produced by a separate brewing facility of a small brewery licensee shall be:
    1. Sold to a licensed wholesaler; or
    2. Transported:
      1. From the separate brewing facility to a small brewery commonly owned by the owner of the separate brewing facility for retail sale for consumption on or off the licensed premises; and
      2. To the separate brewing facility from a small brewery commonly owned by the owner of the separate brewing facility for storage, production, or packaging.
Notwithstanding the provisions of any other law to the contrary, beer, malt beverages, and hard cider may be sold for on-premises or off-premises consumption during all legal operating hours in which business is normally and legally conducted on the premises, if:
1. The brewery provides tours through its facility; and
2. Only sealed containers are removed from the premises.
1. A small brewery may provide beer, malt beverages, and hard cider it manufactures to charitable or nonprofit organizations or sell for resale beer, malt beverages, and hard cider it manufactures to charitable or nonprofit organizations holding valid special event permits issued by the Alcoholic Beverage Control Board.
2. The sale of those products is limited to the duration of the particular special event.
After July 31, 2017, the director shall not issue a small brewery license to a person or entity having more than five percent (5%) common ownership with a person or entity holding a license under this subchapter or qualifying as a supplier under § 3-5-1102, except as permitted under § 3-5-1204(c).

History. Acts 2003, No. 1805, § 5; 2009, No. 1459, § 2; 2015, No. 857, § 9; 2015, No. 1237, § 3; 2017, No. 865, § 2; 2017, No. 950, § 4; 2019, No. 691, § 16.

Amendments. The 2009 amendment subdivided (a)(1)(A), inserted “and no more than thirty thousand (30,000) barrels per year” in (a)(1)(A)(i), inserted (a)(1)(D) through (a)(1)(G) and (a)(2)(D), and made related changes.

The 2015 amendment by No. 857 rewrote the section.

The 2015 amendment by No. 1237 rewrote the section.

The 2017 amendment by No. 865 added (d).

The 2017 amendment by No. 950 inserted “and on the premises of the one (1) separate brewing facility of a small brewery authorized under subdivision (a)(9) of this section” in (a)(3); redesignated part of former (a)(4) as (a)(4)(A) and added (a)(4)(B); inserted “from all facilities under common ownership with the small brewery” in (a)(6)(A)(i) (b) ; and added (a)(8) and (a)(9).

The 2019 amendment added (a)(7)(C).

3-5-1406. Additional license to sell small brewery beer, malt beverages, and hard cider not required.

Any wholesale or retail dealer that is licensed to sell beer, malt beverages, and hard cider may sell beer, malt beverages, and hard cider produced by small brewers without any additional license fee.
Any retail dealer not licensed to sell beer, malt beverages, and hard cider may sell beer, malt beverages, and hard cider produced by small brewers and microbrewery-restaurants licensed under § 3-5-1204 if the retailer pays a retail dealer’s license fee of fifteen dollars ($15.00) to the Alcoholic Beverage Control Division.

History. Acts 2003, No. 1805, § 6; 2015, No. 857, § 9.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment rewrote the section.

3-5-1407. Transportation.

A small brewery may transport its beer, malt beverages, and hard cider along any highway, road, street, or other thoroughfare of travel.
A small brewery may ship its products out of the state by common carrier or other appropriate parcel delivery service, and common carriers and other appropriate parcel delivery services may accept beer, malt beverages, and hard cider from Arkansas small brewers for delivery outside the state.
A small brewery in this state may ship its products within the state by common carrier or other appropriate parcel delivery service, and common carriers and other appropriate parcel delivery services may accept beer, malt beverages, and hard cider from Arkansas small breweries for delivery within the state if the beer, malt beverages, and hard cider are only shipped to persons holding a wholesale permit to purchase, store, sell, or dispense beer, malt beverages, and hard cider.

History. Acts 2003, No. 1805, § 7; 2015, No. 857 § 9.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment replaced “native” with “small” throughout the section, and made stylistic changes.

3-5-1408. Fees and taxes.

A small brewer shall:

Pay any applicable city or county license or permit fees and barrelage or taxes and shall pay a state licensing fee to the Alcoholic Beverage Control Division of three hundred dollars ($300) per fiscal year to:
1. Manufacture and sell its beer, malt beverages, and hard cider for consumption, both on and off the premises; and
2. Sell any other beer, malt beverages, and hard cider purchased from a licensed dealer for consumption on or off the premises;
Measure beer, malt beverages, and hard cider manufactured by the small brewer or purchased from a contract brewery, or otherwise comply with applicable rules respecting excise and enforcement tax determination of the beer, malt beverages, and hard cider, and pay any applicable bond or deposit and the amount of the state excise tax and enforcement tax to this state as required, but is free from the fees and taxes provided in § 3-5-205 and as required by §§ 3-7-104 and 3-7-111; and
Pay a tax at the rate of seven dollars and fifty cents ($7.50) per barrel, and proportionately for larger and smaller gallonages per barrel, on all beer, malt beverages, and hard cider in quantities of up to forty-five thousand (45,000) barrels per year and sold or offered for sale in the state.

History. Acts 2003, No. 1805, § 8; 2009, No. 1459, § 3; 2015, No. 857 § 9; 2019, No. 315, § 82.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2009 amendment substituted “three hundred dollars ($300)” for “two hundred fifty dollars ($250)” in the introductory language of (1); substituted “small brewer” for “native brewer” in (2); and substituted “thirty thousand (30,000)” for “sixty thousand (60,000)” in (3).

The 2015 amendment rewrote the section.

The 2019 amendment substituted “rules” for “regulations” in (2).

3-5-1409. Beer, malt beverage, and hard cider education.

1. A small brewer may be allowed to conduct beer-, malt beverage-, and hard cider-tasting events for educational or promotional purposes at any location in a wet area of this state if approved by the Alcoholic Beverage Control Division and if written notice is given by the division to the small brewer at least five (5) days before the event.
2. Requests for approval to conduct beer-, malt beverage-, and hard cider-tasting events must be received by the division at least two (2) weeks before the event.
Beer-, malt beverage-, and hard cider-tasting events may be held in any facility licensed by the division if written notice is given by the division under subsection (a) of this section.

History. Acts 2003, No. 1805, § 9; 2015, No. 857, § 9.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment rewrote the section.

3-5-1410. Licenses — Application.

A small brewers' license shall not be issued unless the applicant files with the Director of the Alcoholic Beverage Control Division a verified application in a form and content that the director requires, accompanied by payment of the applicable fee.

History. Acts 2003, No. 1805, § 10; 2015, No. 857, § 9.

3-5-1411. Operation without license prohibited.

It is a Class C misdemeanor for any person not holding a valid small brewers' license to operate as a small brewer.

History. Acts 2003, No. 1805, § 11; 2015, No. 857, § 9.

Amendments. The 2015 amendment substituted “small” for “native” twice.

3-5-1412. Dry areas prohibited.

It is unlawful for the Director of the Alcoholic Beverage Control Division to issue a small brewers' license in any city, county, township, or other area in this state if the sale or possession of beer, malt beverages, and hard cider is unlawful.

History. Acts 2003, No. 1805, § 12; 2015, No. 857, § 9.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment substituted “small” for “native” and made stylistic changes.

3-5-1413. Rules.

The Director of the Alcoholic Beverage Control Board and the Secretary of the Department of Finance and Administration may adopt rules for the implementation of this subchapter.

History. Acts 2003, No. 1805, § 13; 2019, No. 910, § 3325.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-5-1414. Construction.

This subchapter is supplemental to all other laws concerning alcoholic beverages and repeals only those laws or parts of laws in direct conflict with it.

History. Acts 2003, No. 1805, § 14.

3-5-1415. Sales on any day of week.

Small brewery beer, malt beverages, and hard cider may be sold at any small brewery located in this state for on-premises or off-premises consumption on any day of the week.

History. Acts 2009, No. 1459, § 4.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

3-5-1416. Small brewery is a supplier.

A small brewery selling and transporting beer, malt beverages, and hard cider produced on the premises of the small brewery is a supplier.
A small brewery is not subject to § 3-5-1101 et seq. unless the small brewery exceeds annual production of beer, malt beverages, and hard cider of fifteen thousand (15,000) barrels.

History. Acts 2009, No. 1459, § 4; 2015, No. 857, § 10.

A.C.R.C. Notes. Pursuant to § 1-2-207, the amendment by Acts 2015, No. 1237, is incorporated into this section.

Amendments. The 2015 amendment rewrote the section.

3-5-1417. Exemption for front-of-house employees.

A front-of-house employee may be employed simultaneously by another holder of a permit or license issued by the Director of the Alcoholic Beverage Control Division.

History. Acts 2017, No. 950, § 5.

3-5-1418. Small brewery tap room.

A small brewery tap room may:
1. For beer and hard cider produced by the small brewery, sell for both on-premises and off-premises consumption; and
2. For beer, hard cider, and wine not produced by the licensed small brewery, sell for on-premises consumption.
A small brewery tap room may operate a restaurant.

History. Acts 2017, No. 950, § 5.

Subchapter 15 — Temporary Wine Charitable Auction Permit

3-5-1501. Temporary wine charitable auction permit.

There is established a temporary wine charitable auction permit.
The Alcoholic Beverage Control Division shall issue the permit to qualifying charitable nonprofit organizations that are exempt from taxation under § 501 of the Internal Revenue Code of 1986, as it existed on January 1, 2005, and that have received tax exempt status from the Internal Revenue Service pursuant to § 501(c)(3) or (4) of the Internal Revenue Code of 1986, as it existed on January 1, 2005.
The permit shall authorize the qualifying charitable nonprofit organization to sell wine for the purpose of raising funds for the charitable organization during a live or silent auction conducted by the charitable organization.

History. Acts 2005, No. 1157, § 1.

U.S. Code. Sections 501 and 501(c)(3) and (4) of the Internal Revenue Code of 1986, referred to in this section, are codified as 26 U.S.C. §§ 501 and 501(c)(3) and (4), respectively.

3-5-1502. Authorized location of auction.

The holder of a temporary wine charitable auction permit may conduct an auction in any area of the State of Arkansas where the sale of the wine is authorized.
The holder of a permit may conduct an auction at a premises of another on-premises permit that is licensed to sell or dispense the wine if:
1. The wine to be auctioned is kept separate from the wine sold, stored, or served at the permitted premises; and
2. The wine, whether sold or unsold, is removed from the premises immediately following the auction.

History. Acts 2005, No. 1157, § 1.

3-5-1503. Disposition of auction proceeds.

The proceeds from the sale of wine sold at a charitable auction as authorized by this subchapter shall be deposited into the account of the charitable organization that holds the temporary wine charitable auction permit.

History. Acts 2005, No. 1157, § 1.

3-5-1504. Origination of wine to be auctioned.

The wine to be auctioned shall be obtained by:
1. Donation from any person or an out-of-state winery, if the laws of the out-of-state winery allow the donation;
2. Donation or purchase from a licensed winery within the state; or
3. Donation or purchase from a licensed Arkansas wholesaler.
If wine to be auctioned is obtained as provided in this subchapter, the provisions of § 3-3-216 shall not apply to any person who, for purposes of sale of the wine at a charitable auction:
1. Ships or transports the wine into Arkansas;
2. Stores or possesses the wine in Arkansas; or
3. Purchases the wine at a charitable auction as provided for in this subchapter.

History. Acts 2005, No. 1157, § 1.

3-5-1505. Prohibited activities.

The holder of a temporary wine charitable auction permit shall not:

Auction any wine that has not been obtained as provided for in this subchapter;
Conduct more than two (2) auctions during any calendar year;
When the auction is conducted on a premises that holds a permit for the sale or dispensing of wine, allow the auctioned wine to be consumed on the permitted premises; and
Pay a commission or promotional fee to:
1. Any person to arrange or conduct an auction authorized under this subchapter; or
2. Arrange for the donation of wine to be auctioned by the charitable organization.

History. Acts 2005, No. 1157, § 1.

3-5-1506. Permit duration, fees, and gross receipts.

The temporary wine charitable auction permit shall be issued for a period of not more than five (5) days.
The fee for the permit shall be fifty dollars ($50.00).
The gross receipts from the sale of wine at a charitable auction under this section shall not be subject to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., nor shall the taxes imposed under title 3 of the Arkansas Code be applicable.

History. Acts 2005, No. 1157, § 1.

3-5-1507. Administrative rules.

The Alcoholic Beverage Control Division shall adopt rules governing the application, issuance, and use of a temporary wine charitable auction permit.
1. The division shall also adopt rules establishing penalties for violation of this subchapter or rules adopted pursuant to this subchapter.
2. However, penalties adopted by the division shall not exceed penalties which may be imposed on charitable organizations holding other types of temporary permits.

History. Acts 2005, No. 1157, § 1; 2019, No. 315, § 83.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (a).

Subchapter 16 — Free Trade Among Small Wineries

A.C.R.C. Notes. Acts 2007, No. 668, § 4, provided: “In the event that this act, or any part thereof, is determined by a court to be unconstitutional, this act shall become void and all wines, including native wines, distributed for sale in the State of Arkansas shall be distributed under § 3-2-401 et seq. and sold by licensed retailers under § 3-4-201 et seq.”

3-5-1601. Definition.

As used in this subchapter, “small farm winery” means a wine-making establishment that sells no more than two hundred fifty thousand gallons (250,000 gals.) of wine, the alcoholic content of which does not exceed twenty-one percent (21%) annually as reported on the federal tax report form TTB F 5120-17, as it existed on January 1, 2007. For the purposes of this subchapter, a winery or a group of wineries consisting of at least fifty percent (50%) common ownership is to be considered one (1) small farm winery.

History. Acts 2007, No. 668, § 1.

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

3-5-1602. Licensing of small farm wineries.

An in-state or out-of-state small farm winery may apply to the Alcoholic Beverage Control Board for a small farm winery license.
1. A small farm winery may be licensed by the board.
2. The license shall:
  1. Show the registration number and location of the small farm winery;
  2. Show the name of the person that owns or operates the small farm winery; and
  3. Be conspicuously posted at the small farm winery.
1. The small farm winery license authorizes the licensee to perform the following functions without the small farm winery having to obtain a separate license:
  1. Manufacture wines and bottle wines produced by that small farm winery;
  2. Bottle wines produced by another small farm winery;
  3. Serve on the premises or at small farm winery off-premises retail sites complimentary samples of wine produced by the small farm winery or another licensed small farm winery, if the small farm winery or its off-premises retail site is located in a wet territory;
  4. Sell at retail by the drink or by the package wine produced on the premises of the small farm winery or produced by another small farm winery, if all sales occur in a wet territory and at:
    1. The small farm winery off-premises retail sites; or
    2. Fairs and food and wine festivals, with the permission and the consent of the management of the events. A sales and use tax permit is also required;
  5. 1. Sell and transport wine produced on the premises of the small farm winery or of another small farm winery to wholesale and retail license holders and small farm winery license holders.
    2. To exercise the privileges of subdivision (c)(1)(E)(i) of this section, the small farm winery shall obtain a wine wholesale permit or sell to a licensed small farm winery wholesaler;
  6. Sell for consumption on the premises wine produced by the small farm winery or another small farm winery and purchased by the drink or by the package at the licensed premises, if the small farm winery is located in a wet territory;
  7. Receive shipments of sparkling wine or champagne in bottles with or without a label from other in-state or out-of-state small farm wineries; and
  8. Sell for on-premises or off-premises consumption hard cider manufactured by a hard cider manufacturer, if all sales occur in a wet territory.
2. A small farm winery off-premises retail site shall be separately licensed under § 3-5-1605(a)(3) before performing the operations listed in subdivision (c)(1) of this section at the off-premises retail site.
An applicant for a small farm winery license shall submit with its application to the board a copy of the small farm winery's federal basic permit and proof documenting its annual wine production.

History. Acts 2007, No. 668, § 1; 2009, No. 1195, § 1; 2013, No. 1001, § 1; 2019, No. 691, § 17.

Amendments. The 2009 amendment subdivided (c)(1)(E); and in (c)(1)(E)(i), substituted “subdivision (c)(1)(E)(i) of this section” for “this subdivision,” inserted “or sell to a licensed small farm winery wholesaler,” and made a minor stylistic change.

The 2013 amendment added (c)(1)(G).

The 2019 amendment added (c)(1)(H).

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

3-5-1603. Restaurant wine license — Retail malt beverage license.

The Alcoholic Beverage Control Board may issue a restaurant wine license and a retail malt beverage license to a small farm winery license holder, if the issuance of the restaurant wine license and the retail malt beverage license are in connection with the establishment and operation of a restaurant, hotel, inn, bed and breakfast, museum, conference center, or any similar business enterprise for the purpose of promoting viticulture, enology, and tourism.
The retail malt beverage license issued under this section shall limit the license to the sale of malt beverages for consumption on the premises only.

History. Acts 2007, No. 668, § 1.

3-5-1604. Existing native winery licenses.

A person that holds a license as a native winery issued under this chapter before March 29, 2007, may conduct business as a small farm winery until the native wine license expires.
Upon the expiration of a native wine license issued under this chapter before March 29, 2007, the Alcoholic Beverage Control Board may issue a small farm winery license as part of the renewal process if the winery:
1. Meets the criteria under § 3-5-1602(c)(1);
2. Is in good standing; and
3. Submits the winery's federal basic permit and proof of annual wine production to the board.

History. Acts 2007, No. 668, § 1.

3-5-1605. License fees generally.

For the privilege of doing business respectively, as indicated in this section, there shall be imposed, assessed, levied, and collected each fiscal year beginning July 1, the following license fees:
1. 1. For the privilege of manufacturing wine in quantities not to exceed five thousand gallons (5,000 gals.), a license fee of two hundred dollars ($200) shall be paid by the manufacturer.
  2. However, a person in this state may manufacture wine from fruits or vegetables in quantities not to exceed two hundred gallons (200 gals.) for consumption in the person's home by the person and the person's guests but not for sale free from the license fee under subdivision (a)(1)(A) of this section;
2. For the privilege of manufacturing small farm wine in excess of five thousand gallons (5,000 gals.), a license fee of four hundred dollars ($400) shall be paid by the manufacturer;
3. 1. For the privilege of selling small farm winery wine except by a manufacturer for consumption at the manufacturer's winery, there shall be paid for each retail dealer's license a fee of one hundred dollars ($100).
  2. 1. This subdivision (a)(3) applies to all retail licenses for grocery stores, convenience stores, liquor stores, and package stores that sell malt beverages and wine.
    2. A retail liquor store may sell small farm winery wine without the small farm winery wine retail permit;
4. 1. For the privilege of selling small farm wine except by a manufacturer at the manufacturer's winery, there shall be paid for each wholesale dealer's license a fee of one hundred dollars ($100).
  2. This subdivision (a)(4) applies to all alcoholic beverage wholesale distributors;
5. For the privilege of selling small farm winery wine at the small farm winery or in this state, there is imposed, assessed, and levied a tax of seventy-five cents (75¢) per gallon upon all the small farm winery wine manufactured and sold in this state under this subchapter; and
6. For the privilege of selling small farm winery light wine at the small farm winery or in this state, there is imposed, assessed, and levied a tax of twenty-five cents (25¢) per gallon upon all small farm winery light wine manufactured and sold in this state under the provisions of this subchapter.
For existing licenses:
1. A person that holds a license for the sale of native wine issued under this chapter before March 29, 2007, may conduct business as a small farm winery wholesaler or retailer until the native wine license expires; and
2. Upon the expiration of a native wine license issued under this chapter on or before March 29, 2007, the Alcoholic Beverage Control Board may issue a new license as part of the renewal process if the wholesaler or retailer:
  1. Meets the criteria under this section; and
  2. Is in good standing.
Tax on wine shall be based on the amount sold.

History. Acts 2007, No. 668, § 1; 2009, No. 294, § 18; 2009, No. 548, §§ 4–6; 2009, No. 763, § 4.

A.C.R.C. Notes. Acts 2009, No. 294, § 29, provided: “The permit fees increased or established in this act shall become effective beginning with the 2010 – 2011 renewal and new permit period.”

Amendments. The 2009 amendment by No. 294, in (a), substituted “two hundred dollars ($200)” for “one dollar ($1.00) per one thousand (1,000) gallons” in (a)(1)(A), rewrote (a)(1)(B), substituted “four hundred dollars ($400)” for “two hundred fifty dollars ($250)” in (a)(2), redesignated (a)(3), substituted “one hundred dollars ($100)” for “fifteen dollars ($15.00)” in (a)(3)(A), redesignated (a)(4), substituted “one hundred dollars ($100)” for “fifty dollars ($50.00)” in (a)(4)(A), and made related and minor stylistic changes.

The 2009 amendment by No. 548, in (a), rewrote the introductory language of (a)(1)(B), and substituted “alcoholic beverage” for “beverage alcohol” in (a)(4); and made minor stylistic changes in (a) and (b).

The 2009 amendment by No. 763 inserted “liquor stores, and package stores” in (a)(3)(B)(i), inserted (a)(3)(B)(ii), and made related changes.

3-5-1606. Rules.

The Alcoholic Beverage Control Board shall promulgate rules to implement this subchapter.

History. Acts 2007, No. 668, § 1.

3-5-1607. Sales on any day of the week.

Notwithstanding any law to the contrary, small farm winery wine may be sold at any winery located in this state for on-premises or off-premises consumption on any day of the week.

History. Acts 2007, No. 668, § 1.

Research References

Ark. L. Rev.

Comment, Arkansas's Response to Granholm v. Heald: The Small Farm Winery Law Provides an Appropriate Remedy for Commerce Clause Violations, 61 Ark. L. Rev. 487.

Case Notes

Constitutionality.

Because there was no actual or prospective competition between in-state and out-of-state wineries in the area of direct-shipment sales to Arkansas consumers, there could be no local preference, whether by express discrimination against interstate commerce or undue burden upon it, to which the dormant Commerce Clause could apply; thus, this section neither discriminates against nor unduly burdens interstate commerce. Beau v. Moore, No. 4:05CV000903 SWW, 2007 U.S. Dist. LEXIS 83659 (E.D. Ark. Nov. 1, 2007).

3-5-1608. Bond.

By consent of the Secretary of the Department of Finance and Administration, the small farm winery may file a bond with the secretary, the bond to be approved by him or her, which will entitle the small farm winery to the privilege of making settlement of its taxes every thirty (30) days, the time to be set by the secretary.

History. Acts 2007, No. 668, § 1; 2019, No. 910, § 3326.

Amendments. The 2019 amendment substituted “secretary” for “director” three times.

3-5-1609. Penalty.

Upon conviction, a person who violates this subchapter or any reasonable rule adopted under this subchapter by the Director of the Alcoholic Beverage Control Division or the Secretary of the Department of Finance and Administration is guilty of a Class B misdemeanor.

History. Acts 2007, No. 668, § 1; 2009, No. 548, § 7; 2019, No. 910, § 3327.

Amendments. The 2009 amendment inserted “Upon conviction,” deleted “or regulation” following “rule,” inserted “under this subchapter,” and made related and minor stylistic changes.

The 2019 amendment substituted “Secretary” for “Director”.

Subchapter 17 — Direct Shipment of Vinous Liquor Act

Effective Dates. Acts 2015, No. 236, § 2: July 1, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Streamlined Sales and Use Tax Agreement requires that the tax base for local taxes be identical to state taxes unless otherwise prohibited by law. Current Arkansas law creates a different tax base for state sales tax as compared to local sales tax. If Arkansas is determined to be out of compliance with the agreement, the state could lose approximately ten million dollars annually in state and local sales tax collections from businesses that have voluntarily registered to report and pay tax under the agreement. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2015.”

Acts 2017, No. 313, § 4: Mar. 1, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act calls for public notice of a drawing for the issuance of small farm winery private-resident shipping permits to small farm winery licensees holding wine wholesale permits; that the drawing will require the actual presence in the state of persons from various states; that sufficient notice must be available to all potential participants in the drawing; and that this act is immediately necessary because the Alcoholic Beverage Control Board requires time to make public notice, to prepare the drawing operations, and to ensure that all interested persons have the opportunity to seek eligibility for the drawing. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 848, § 2: Apr. 3, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act amends Acts 2017, No 313, § 3, that became effective March 2, 2017, as a result of an emergency clause; Act 313 of 2017 requires immediate action by the Alcoholic Beverage Control Board, the Director of the Alcoholic Beverage Control Division, and small farm winery license holders; the language of this bill alters the timelines imposed by Act 313 of 2017 and the procedure by which permits are issued; without the immediate enactment of this act, confusion will exist as to the procedures to be implemented for issuing permits under Act 313 of 2017 and unnecessary costs will be incurred to comply with Act 313 of 2017. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

3-5-1701. Title.

This subchapter shall be known and may be cited as the “Direct Shipment of Vinous Liquor Act”.

History. Acts 2013, No. 483, § 1.

3-5-1702. Definitions.

As used in this subchapter:

“Small farm winery” means a wine-making establishment that:
1. Is licensed under § 3-5-1601 et seq.; and
2. Produced by fermentation at least eight hundred gallons (800 gals.) of wine in the previous calendar year, as reported on the winery’s TTB F 5120-17 Report of Wine Premises Operations;
“Vinous liquor” means the fermented juices of fruits containing more than five percent (5%) and not more than twenty-one percent (21%) of alcohol by weight; and
“Winery” means an establishment that makes vinous liquor.

History. Acts 2013, No. 483, § 1; 2017, No. 313, § 1.

Amendments. The 2017 amendment inserted (1) and redesignated the remaining subdivisions accordingly.

3-5-1703. Registration — Renewal fee.

1. Unless registered under this subchapter, a winery licensed by this state or the state where its principal place of business is located shall not ship vinous liquor to an Arkansas consumer.
2. This section does not apply to a small farm winery licensed under § 3-5-1601 et seq.
Prior to the winery's first shipment into or within the state, the winery shall:
1. Register with the Alcoholic Beverage Control Division;
2. Provide the division with a copy of the winery's current license to manufacture wine issued by:
  1. The state of domicile; and
  2. The Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury; and
3. Pay a registration fee of twenty-five dollars ($25.00).
A winery shall renew its application each year with the division by:
1. Providing the division with a copy of the licenses required under subdivision (b)(2) of this section; and
2. Paying a renewal fee of twenty-five dollars ($25.00).

History. Acts 2013, No. 483, § 1; 2017, No. 313, § 2.

Amendments. The 2017 amendment added (a)(2).

3-5-1704. Purchase — Payment of taxes.

A consumer must:
1. Be physically present at the winery to purchase the vinous liquor to be shipped into or within the state; and
2. Provide identification to the winery proving that he or she is twenty-one (21) years of age or older.
1. A winery shall collect all sales taxes and excise taxes due on a sale to an individual of this state as if the sale took place on the premises of an Arkansas small farm winery, including without limitation taxes under §§ 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
2. Taxes collected by the winery shall be submitted to the Department of Finance and Administration as directed without limitation under §§ 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
3. A winery shall source the collection of sales and use taxes to the purchaser’s delivery address in accordance with § 26-52-521(b)(2).

History. Acts 2013, No. 483, § 1; 2015, No. 236, § 1; 2017, No. 673, § 1.

Amendments. The 2015 amendment deleted former (b)(1)(B); and deleted the (b)(1)(A) designation.

The 2017 amendment added (b)(3).

3-5-1705. Direct shipment.

A winery shall ship only a vinous liquor to a private residence.
A winery may only ship one (1) case of vinous liquor per consumer in any calendar quarter.
1. A shipment of a vinous liquor shall have a shipping label provided by the Alcoholic Beverage Control Division affixed to the shipping package.
2. The fee for each label for a shipment shall not exceed ten dollars ($10.00).

History. Acts 2013, No. 483, § 1.

3-5-1706. Delivery.

A winery shall have the vinous liquor delivered to an Arkansas consumer during the hours of the day that alcoholic beverages may be purchased in the state.

History. Acts 2013, No. 483, § 1.

3-5-1707. Rules.

The Director of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Board, the Secretary of the Department of Finance and Administration, and any other affected agency of this state may adopt rules to implement this subchapter.

History. Acts 2013, No. 483, § 1; 2019, No. 910, § 3328.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-5-1708. Disposition of funds.

Permit fees or taxes, label fees, penalties, fines, proceeds of all forfeitures, special inspection fees, and costs received by the Secretary of the Department of Finance and Administration under this subchapter shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund.
The Treasurer of State shall allocate and transfer those revenues to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by and to be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 2013, No. 483, § 1; 2019, No. 910, § 3329.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

3-5-1709. Small farm winery shipment.

1. A small farm winery licensee with a wine wholesale permit under § 3-5-1602(c)(1)(E) may ship small farm winery wine under this subchapter to a private resident without the private resident having been physically present or having made an in-person purchase at the small farm winery if the shipment includes only small farm winery wine.
2. Additional shipping registration of a small farm winery is not required for a shipment under subdivision (a)(1) of this section.
A private resident shall provide identification to the small farm winery proving that he or she is twenty-one (21) years of age or older.
A small farm winery may ship only one (1) case of small farm winery wine per private resident in any month.
A small farm winery shipping under this subchapter shall ensure that all containers of small farm winery wine delivered within this state are conspicuously labeled as follows:
1. A small farm winery shall collect all sales taxes and excise taxes due on a sale to an individual of this state as if the sale took place on the premises of the small farm winery, including without limitation taxes under §§ 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
2. Taxes collected by the small farm winery shall be submitted to the Department of Finance and Administration as directed without limitation under §§ 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
3. A small farm winery shall source the collection of sales and use taxes to the purchaser’s delivery address in accordance with § 26-52-521(b)(2).
A small farm winery that makes a direct shipment of small farm winery wine under this section shall maintain records regarding each shipment of small farm winery wine that include the:
1. Name and address of the person to whom the small farm winery wine is:
  1. Sold; and
  2. Billed; and
2. Date of shipment.

“CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY”.

History. Acts 2017, No. 313, § 3; 2017, No. 848, § 1.

Publisher's Notes. Acts 2017, No. 848, § 1 specifically amended this section as enacted by Acts 2017, No. 313, § 3.

Amendments. The 2017 amendment by No. 848 made no change in this section.

3-5-1710. Permits — Drawing — Issuance.

1. Within sixty (60) days after April 3, 2017, the Alcoholic Beverage Control Board shall notify by mail all small farm wineries licensed under § 3-5-1602 and holding a small farm wine wholesale permit under § 3-5-1602(c)(1)(E) issued on or before April 15, 2017, that they are eligible for a small farm winery private-resident shipping permit if the winery produced by fermentation at least eight hundred gallons (800 gals.) of wine in the previous calendar year as shown on the winery's TTB F 5120-17.
2. The board shall issue a small farm winery private-resident shipping permit to a small farm winery holding a small farm wine wholesale permit under § 3-5-1602(c)(1)(E) issued on or before April 15, 2017, upon receipt of the following:
  1. Proof that the winery produced by fermentation at least eight hundred gallons (800 gals.) of wine in the previous calendar year as shown on the winery's TTB F 5120-17; and
  2. Payment of a licensing fee of twenty-five dollars ($25.00).
1. In each subsequent year, the board may issue up to five (5) small farm winery private-resident shipping permits to small farm wineries licensed under § 3-5-1602 and holding a small farm wine wholesale permit under § 3-5-1602(c)(1)(E) issued after April 15, 2017, if the winery produced by fermentation at least eight hundred gallons (800 gals.) of wine in the previous calendar year as shown on the winery's TTB F 5120-17.
2. The board shall notify the public at large by legal notice and internet posting that the board will accept applications for small farm winery private-resident shipping permits.
3. The notice required under subdivision (b)(2) of this section shall include:
  1. The number of permits to be issued;
  2. The last date applications will be accepted; and
  3. The date of a drawing to determine which applicants will be awarded a permit if the number of applicants exceeds the number of permits authorized by the board.
4. The board shall not accept an application more than ninety (90) days after the date of publication of the notice required under subdivision (b)(2) of this section.
5. 1. If the number of applicants for a permit exceeds the number of permits authorized by the board, the Director of the Alcoholic Beverage Control Division shall conduct a drawing not earlier than one hundred twenty (120) days after the publication of the notice specified in subdivision (b)(2) of this section, nor later than one hundred eighty (180) days after publication of the notice.
  2. 1. On the date of the drawing, each applicant for a permit or his or her agent shall draw a number between one (1) and a number equal to the number of permits to be granted of applications filed.
    2. Position numbers shall not be transferred or assigned.
6. Upon payment of a licensing fee of twenty-five dollars ($25.00), the director shall issue a permit to each eligible licensee that draws a number one (1) through the number authorized by the board for the drawing.
A small farm winery shall renew its small farm winery private-resident shipping permit each year with the division by paying a renewal fee of twenty-five dollars ($25.00).

History. Acts 2017, No. 313, § 3; 2017, No. 848, § 1.

A.C.R.C. Notes. This section is set out above as amended by Acts 2017, No. 848, § 1. This section was added by Acts 2017, No. 313, § 3, effective from March 1, 2017 until April 3, 2017, to read as follows:

“Permits — Drawing.

“(a)(1) Within sixty (60) days after March 1, 2017, the Alcoholic Beverage Control Board shall issue thirty (30) small farm winery private-resident shipping permits to ship small farm winery wine under § 3-5-1709.

“(2) In each subsequent year, the board may issue up to five (5) small farm winery private-resident shipping permits to ship small farm winery wine as provided in this section.

“(b)(1) The Alcoholic Beverage Control Division shall notify the public at large by public notice that a drawing shall be held in Little Rock, Arkansas, to determine which of the small farm winery licensees holding a wine wholesale permit are eligible to receive a small farm winery private-resident shipping permit under this section.

“(2) The public notice under subdivision (b)(1) of this section shall include without limitation:

“(A) Internet notification; and

“(B) Notice by mail to each licensee who holds both a small farm winery license and a wine wholesale permit under § 3-5-1602.

“(c)(1)(A) No later than fifteen (15) days before the scheduled drawing for the small farm winery private-resident shipping permit, a licensee holding both a small farm winery license and a wine wholesale permit who wishes to be entered into the drawing shall certify to the Alcoholic Beverage Control Division that the winery has produced by fermentation at least one thousand gallons (1,000 gals.) of wine in the previous calendar year by providing the winery's TTB F 5120-17.

“(B) A licensee that fails to submit proof of production by the date provided for in subdivision (c)(1)(A) of this section is not eligible for the drawing under this section.

“(2) On the date of the drawing, each licensee holding both a small farm winery license and wine wholesale permit who has met the requirements specified in subdivision (c)(1) of this section shall draw a number between one (1) and the number of eligible licensees.

“(3) The drawing shall be conducted by the Director of the Alcoholic Beverage Control Division.

“(4) The individual of record with the division designated as the permit holder for the eligible small farm winery shall be present for the drawing at the location chosen by the director to be awarded a small farm winery private-resident shipping permit if selected by the drawing.

“(5) Position numbers may not be assigned or transferred.

“(d)(1) The director shall issue the small farm winery private-resident shipping permits authorized through the drawing under this section to those eligible licensees drawing numbers one (1) through thirty (30) upon payment of a licensing fee of fifty dollars ($50.00).

“(2) In a subsequent year, if the Alcoholic Beverage Control Board authorizes additional permits, the director shall issue permits authorized under this section to those eligible licensees drawing numbers one (1) through the number authorized by the board for the drawing upon payment of a licensing fee of fifty dollars ($50.00).

“(e) A small farm winery shall renew its small farm winery private-resident shipping permit each year with the division by paying a renewal fee of fifty dollars ($50.00).”

Amendments. The 2017 amendment by No. 848 rewrote this section.

Subchapter 18 — Wine Sales in Grocery Stores

Effective Dates. Acts 2017, No. 508, § 13(a): Oct. 1, 2017. Effective date clause provided: “Sections 1, 2, 3, 6, 7, 8, 9, 10, 11, and 12 of this act become effective on October 1, 2017.”

3-5-1801. Definitions.

As used in this subchapter:

“Grocery store” means a single physical establishment that:
1. Has an inventory of human-consumable items; and
2. Is located in a wet territory;
“Slotting allowance” means an allowance paid by a manufacturer to a grocery store for making room for a product on the grocery store's shelves; and
“Wine” means port, wine, sherry wine, vermouth wine, or other wines manufactured within or without the State of Arkansas or hard cider, the alcoholic content of which does not exceed twenty-one percent (21%).

History. Acts 2017, No. 508, § 6; 2019, No. 691, § 18.

Amendments. The 2019 amendment inserted “or hard cider” in (3).

3-5-1802. Grocery store wine permit — Fees.

A grocery store may apply to the Alcoholic Beverage Control Board for a grocery store wine permit.
1. A grocery store wine permit allows a permittee to purchase and sell wine and hard cider for off-premises consumption at a single location.
2. Wine and hard cider inventory orders or purchases, or both, shall be made only by a permittee for delivery to a single permitted location.
3. An order of wine and hard cider inventory for one location shall not be combined with an order for another location in a manner that would result in a cumulative discount or quantity discount, or both.
A grocery store seeking a grocery store wine permit shall meet the criteria for the holder of an off-premises retail beer permit in addition to the criteria established in this section.
1. For the privilege of selling wine and hard cider in a grocery store, each grocery store shall pay a grocery store wine permit fee based on the size of the permitted building space.
2. The fee shall be:
  1. One thousand dollars ($1,000) for a permitted building space containing less than thirty-five thousand one square feet (35,001 sq. ft.);
  2. Two thousand five hundred dollars ($2,500) for a permitted building space containing between thirty-five thousand one square feet (35,001 sq. ft.) and fifty thousand square feet (50,000 sq. ft.);
  3. Three thousand five hundred dollars ($3,500) for a permitted building space containing between fifty thousand one square feet (50,001 sq. ft.) and seventy-five thousand square feet (75,000 sq. ft.); and
  4. Five thousand dollars ($5,000) for a permitted building space containing more than seventy-five thousand square feet (75,000 sq. ft.).
One hundred percent (100%) of the fee shall be paid into the Arkansas Wine Grants Fund.
A grocery store wine permittee may conduct tasting events for educational and promotional purposes on the permittee's premises after obtaining a wine sampling permit from the Alcoholic Beverage Control Division under § 3-5-104.
1. A grocery store seeking a grocery store wine permit may derive no more than twenty percent (20%) of its gross sales from the sale of alcoholic beverages.
2. However, the requirement under subdivision (g)(1) of this section does not apply to an otherwise qualifying grocery store that, as of January 1, 2017, derives more than twenty percent (20%) of its gross sales from the sale of alcoholic beverages.
A grocery store wine permittee shall offer for sale small farm winery wine as defined in § 3-5-1601 et seq.
A grocery store wine permit shall be available for issue only in a county in which the retail sale of alcohol under § 3-4-604 was authorized as of January 1, 2017.

History. Acts 2017, No. 508, § 6; 2019, No. 691, §§ 19, 20.

Amendments. The 2019 amendment inserted “and hard cider” throughout (b) and in (d)(1).

Cross References. Arkansas Wine Grants Fund, § 19-6-839.

3-5-1803. Slotting allowances prohibited.

Slotting allowances, as defined by 27 C.F.R. § 6.152(b), are prohibited.
A grocery store shall not require payment of a slotting allowance for products sold under this subchapter by a small farm winery, including without limitation:
1. Juice;
2. Low alcohol wine; and
3. Vinegar.

History. Acts 2017, No. 508, § 6.

Subchapter 19 — Microbrewery-Restaurant Private Club Permit

3-5-1901. Definitions.

As used in this subchapter:

“Alcoholic beverage” means a beverage containing more than five-tenths percent (0.5%) of alcohol by weight;
“Barrel” means thirty-one gallons (31 gals.);
“Beer” means a fermented liquor made from malt or a substitute and having an alcoholic content not in excess of five percent (5%) by volume;
“Dry area” means an area in this state in which the manufacture or sale of beer is prohibited by a local option election held pursuant to applicable laws of this state;
“Malt beverage” means a liquor brewed from the fermented juices of grain and having an alcoholic content of at least five percent (5%) but not more than twenty-one percent (21%) by weight;
“Microbrewery” means a brewery that manufactures one (1) or more varieties of beer, malt beverage, or hard cider in an aggregate quantity not to exceed forty-five thousand (45,000) barrels per year from all facilities under common ownership with the microbrewery;
“Microbrewery-restaurant private club” means a nonprofit organization organized and existing under the laws of this state that:
1. Is both a microbrewery and a restaurant;
2. Has members, which are not directly or indirectly benefitted by the entity's net revenues;
3. Exists for some common recreational, social, patriotic, political, national, benevolent, athletic, community hospitality, professional association, entertainment, or other object or purpose other than the consumption of alcoholic beverages; and
4. Has existed for at least one (1) year; and
“Restaurant” means a public or private place that:
1. Is kept, used, maintained, advertised, and held out to the public or to a private or restricted membership as a place where complete meals are actually and regularly served;
2. Has adequate and sanitary kitchen and dining equipment;
3. Has seating capacity for at least fifty (50) people;
4. Has sufficient number and type of employees to prepare, cook, and serve suitable food for its guests or members;
5. Serves at least one (1) meal per day; and
6. Is open for business a minimum of five (5) days per week, with the exception of holidays, vacations, and periods of redecorating.

History. Acts 2019, No. 681, § 1.

3-5-1902. Microbrewery-restaurant private club.

A microbrewery-restaurant private club applicant shall be an entity organized and existing under the laws of this state before applying for a microbrewery-restaurant private club permit as prescribed in this subchapter.
The net revenues of the microbrewery-restaurant private club shall not directly or indirectly benefit its members, except for the payment of bona fide expenses of the microbrewery-restaurant private club's operations.
Activities at the microbrewery-restaurant private club shall be conducted for some common recreational, social, patriotic, political, national, benevolent, athletic, community hospitality, professional association, entertainment, or other object or purpose and not solely for the consumption of alcoholic beverages.
1. At the time of application for a microbrewery-restaurant private club permit, the entity shall own or lease, be the holder of a buy-sell agreement or offer and acceptance, or have an option to lease a building, property, or space for the reasonable comfort and accommodation of its members and the families and guests of its members.
2. The microbrewery-restaurant private club shall restrict the use of club facilities to its members and the families and guests of its members.
For purposes of this subchapter, a person is a member of the microbrewery-restaurant private club only upon ordering an alcoholic beverage as defined in § 3-5-1901.
If the entity holding a microbrewery-restaurant private club permit additionally holds another alcoholic beverage permit, the hours of operation authorized for the microbrewery-restaurant private club apply to all permits of the entity.

History. Acts 2019, No. 681, § 1.

3-5-1903. Microbrewery-restaurant private club — Procedure for obtaining permit.

A microbrewery-restaurant private club applicant may apply to obtain a microbrewery-restaurant private club through the procedures provided under § 3-9-222.
1. The application for a microbrewery-restaurant private club shall be submitted to the Alcoholic Beverage Control Division and accompanied by an annual permit fee of one thousand five hundred dollars ($1,500).
2. In an area in which the sale of alcoholic beverages is not authorized by local option under § 3-8-201 et seq., the application for a microbrewery-restaurant private club permit shall be accompanied by an additional application fee of one thousand five hundred dollars ($1,500).
1. After filing an acceptable application with the Director of the Alcoholic Beverage Control Division, the applicant shall publish at least one (1) time each week for four (4) consecutive weeks in a legal newspaper of general circulation in the city in which the premises are situated or, if the premises are not in a city, in a newspaper of general circulation for the locality where the business is to be conducted, a notice that the applicant has applied for a permit to dispense alcoholic beverages on the premises.
2. The notice shall be:
  1. In such form as the director prescribes; and
  2. Verified.
3. The notice shall list the name of the business owner and the managing agent, as applicable, and shall state:
  1. That the manager, owner, at least one (1) partner, or the majority stockholder is a resident of Arkansas;
  2. That he or she is of good moral character;
  3. That he or she has never been convicted of a felony;
  4. That he or she has never had a permit to sell or dispense alcoholic beverages revoked within the five (5) years preceding the date of the notice; and
  5. That he or she has never been convicted of violating the laws of this state or of any other state governing the sale or dispensing of alcoholic beverages.
1. Within five (5) days after filing an application for a permit to dispense alcoholic beverages on the premises, a notice of the application shall be posted in a conspicuous place at the entrance to the planned premises.
2. The applicant shall notify the director of the date when the notice is first posted.
3. A permit shall not be issued to an applicant until proper notice has been posted on the premises for at least thirty (30) consecutive days.
4. The notice shall be in such form as the director shall prescribe and shall be:
  1. At least eleven inches (11") in width and seventeen inches (17") in height; and
  2. Printed in black lettering on a yellow background.
1. Upon receipt of an application for a permit and notification of the posted notice as required under subsection (d) of this section, the director shall immediately mail a copy of the application to the sheriff, chief of police, if located within a city, prosecuting attorney of the locality in which the premises are situated, and city board of directors or other governing body of the city in which the premises are located.
2. A permit shall not be issued by the director under this section until at least thirty (30) days have passed from the mailing of the notices required by this section.
3. If the director receives notification of an objection to the issuance of a permit from a governing official of the city or county within the thirty (30) days required under subdivision (d)(3) of this section, the director shall not issue the permit until he or she has held a public hearing.
The director may issue a permit as authorized in this section upon determination that the applicant is qualified and that the application is in the public interest.

History. Acts 2019, No. 681, § 1.

3-5-1904. Permit — Scope — Restrictions.

The Director of the Alcoholic Beverage Control Division may issue a microbrewery-restaurant private club permit that authorizes the permittee to:
1. Operate a microbrewery-restaurant private club and manufacture one (1) or more varieties of beer, malt beverage, or hard cider in an aggregate quantity not to exceed forty-five thousand (45,000) barrels per year from all facilities under common ownership with the microbrewery;
2. 1. Store beer, malt beverage, and hard cider manufactured by the microbrewery-restaurant private club and any other beer, malt beverage, and hard cider that the microbrewery-restaurant private club permittee may purchase from retailers and small brewers permitted by this state on the microbrewery-restaurant private club permitted premises and on the premises of the one (1) separate brewing facility of a microbrewery-restaurant private club authorized under subdivision (a)(8) of this section.
  2. Two (2) or more microbrewery-restaurant private clubs sharing common ownership or a brewery of any size sharing common ownership with a microbrewery-restaurant private club shall be considered one (1) entity for purposes of:
    1. Calculating barrel production; and
    2. The transportation of beer, malt beverage, or hard cider produced by one (1) entity among no more than three (3) microbrewery-restaurant private clubs of the one (1) entity;
3. Operate a restaurant that is the sales outlet for beer, malt beverage, or hard cider manufactured by the microbrewery-restaurant private club and that sells the beer, malt beverage, or hard cider and any other beer, malt beverage, hard cider, or wine that the microbrewery-restaurant private club permittee may purchase from retailers permitted by this state for consumption on the permitted premises or purchased directly from permitted small brewers allowed to distribute directly to the microbrewery-restaurant private club;
4. Sell on the premises beer, malt beverage, or hard cider manufactured by the microbrewery-restaurant private club or commonly owned facility to a member for on-premises consumption during legal operating hours;
5. Serve to a member on-premises complimentary samples of beer, malt beverages, or hard cider produced by the microbrewery-restaurant private club;
6. Sell beer, malt beverage, or hard cider of its own manufacture to a wholesale dealer permitted by this state for the purpose of resale to other retail permit holders under §§ 3-4-605 and 3-5-101, dealing with wholesale distribution of beer, malt beverage, and hard cider;
7. 1. Conduct beer-tasting, malt beverage-tasting, and hard cider-tasting events for educational or promotional purposes at any location in wet areas of this state if:
    1. A request for approval to conduct a beer-tasting, malt beverage-tasting, and hard cider-tasting event is received by the Alcoholic Beverage Control Division at least two (2) weeks before the event;
    2. The request is approved by the division; and
    3. Written notice is given by the division to the permit holder at least five (5) days before the event.
  2. The microbrewery-restaurant private club shall use only beer, malt beverage, and hard cider produced by the microbrewery-restaurant private club for an event approved under subdivision (a)(7)(A) of this section.
  3. Subdivision (a)(7)(A) of this section does not authorize the conducting of a beer-tasting, malt beverage-tasting, and hard cider-tasting event at a separate brewing facility of a microbrewery-restaurant private club authorized under subdivision (a)(8) of this section; and
8. 1. Maintain one (1) separate brewing facility for the production or storage of beer, malt liquor, and hard cider as needed to meet demand, except that each facility used by the microbrewery-restaurant private club permittee shall not in the aggregate produce more than forty-five thousand (45,000) barrels of beer, malt beverage, and hard cider per year.
  2. Beer, malt beverage, and hard cider produced by a separate brewing facility of a microbrewery-restaurant private club permittee shall be:
    1. Sold to a permitted wholesaler; or
    2. Transported:
      1. From the separate brewing facility to a microbrewery-restaurant private club commonly owned by the owner of the separate brewing facility for retail sale for consumption on the permitted premises; or
      2. To the separate brewing facility from a microbrewery-restaurant private club commonly owned by the owner of the separate brewing facility for storage, production, or packaging.
The director may issue a microbrewery-restaurant private club permit if the microbrewery-restaurant private club premises are in a dry area and the governing body has approved an applicant under § 3-5-1903.
1. Except as provided in subdivision (c)(2) of this section, after October 1, 2019, the director shall not issue a microbrewery-restaurant private club permit to a person or entity having more than five percent (5%) common ownership with a person or entity holding a permit under the Arkansas Small Brewery Act, § 3-5-1401 et seq., or qualifying as a supplier under § 3-5-1102.
2. The director may issue an additional microbrewery-restaurant private club permit after October 1, 2019, to a person or entity holding a microbrewery-restaurant private club permit as of October 1, 2019, and having more than five percent (5%) common ownership with a person or entity if the person or entity holds a permit under the Arkansas Small Brewery Act, § 3-5-1401 et seq., or qualifies as a supplier under § 3-5-1102.

History. Acts 2019, No. 681, § 1.

3-5-1905. Microbrewery-restaurant private clubs — Sales prohibited.

A microbrewery-restaurant private club permitted under this subchapter shall not sell alcoholic beverages either by the package or by the drink to a:
1. Nonmember for on-premises or off-premises consumption; or
2. Member for off-premises consumption.
If a permittee sells, barters, loans, or gives away an alcoholic beverage in violation of this subchapter or other alcoholic beverage control laws of this state, the permit of the club shall be revoked.

History. Acts 2019, No. 681, § 1.

3-5-1906. Fees and taxes.

A microbrewery-restaurant private club permittee shall:

Pay the applicable city or county permit fees and barrelage or taxes and shall pay a state permitting fee to the Alcoholic Beverage Control Division of seven hundred fifty dollars ($750) per fiscal year to manufacture and sell to members its beer, malt beverages, and hard cider for consumption on the premises and to sell to members other beer, malt beverages, and hard cider purchased from a permitted wholesaler for consumption on the premises;
Measure beer, malt beverages, and hard cider manufactured by the microbrewery-restaurant private club, otherwise comply with applicable excise and enforcement tax determinations of the beer, malt beverages, and hard cider, and pay any applicable bond or deposit and the amount of the state excise tax and enforcement tax to this state, except the fees and taxes provided in § 3-5-205, and as required by §§ 3-7-104 and 3-7-111; and
Pay a tax at the rate of seven dollars and fifty cents ($7.50) per barrel, and proportionately for larger and smaller gallonages per barrel, on all beer, malt beverages, and hard cider in quantities of up to forty-five thousand (45,000) barrels per year produced and sold or offered for sale in the state.

History. Acts 2019, No. 681, § 1.

3-5-1907. Microbrewery-restaurant private clubs — Reapplication for permit.

An entity that is denied upon application to the Director of the Alcoholic Beverage Control Division for a permit to operate as a microbrewery-restaurant private club in a dry territory may reapply by following the procedures stated in § 3-5-1903 and the additional procedures provided for in subsection (b) of this section.
1. If the applicant is reapplying within two (2) years from the date an application was denied by the director, the application shall be accompanied by certification from the county clerk of the county in which the microbrewery-restaurant private club is to be located certifying that the applicant obtained signatures from at least twenty-five percent (25%) of the registered voters in the county.
2. The application under this section shall be filed no later than twenty (20) days from the date that the county clerk certifies the petition.
3. The petition on which the signatures are obtained under this section shall state clearly that the purpose of the petition is to obtain an alcoholic beverage permit for a microbrewery-restaurant private club and to serve alcoholic beverages to members.
4. The person obtaining signatures shall verify the signatures by affidavit that shall be filed with the county clerk at the time of filing the petition for certification.

History. Acts 2019, No. 681, § 1.

3-5-1908. Collection of taxes.

The Secretary of the Department of Finance and Administration shall assess and collect delinquent state and local taxes from the owner or owners of the microbrewery-restaurant private club, file claims for unpaid taxes against bonds or other security required to be posted by the permittee, and enforce liens against assets held by the owner or owners.
The Alcoholic Beverage Control Division may suspend or refuse to renew a permit held by a nonpartner if the microbrewery-restaurant private club owner fails to remit state or local taxes.

History. Acts 2019, No. 681, § 1.

3-5-1909. Inspection of premises — Records of permitted premises and private clubs.

A permit shall not be issued under this subchapter unless the permittee has consented in writing that the permitted premises and its books and records are open at all times to all law enforcement and tax officials and officials of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Enforcement Division, and the Secretary of the Department of Finance and Administration without requirement of warrant or other legal process.
An entity holding a permit under this subchapter shall not market, sell, or otherwise furnish the names of its members or other information pertaining to its members to another public or private entity, except as provided in subsection (a) of this section.

History. Acts 2019, No. 681, § 1.

Chapter 6 Native Brandy Law

Publisher's Notes. This chapter contains provisions which exclusively regulate the manufacture, sale, and transportation of native brandy. However, native brandy is also regulated under provisions of this title governing “alcoholic beverages” generally. Consequently, the provisions of this chapter must be read in conjunction with the remainder of the title in order to form a complete picture of the regulatory scheme as it applies to native brandy.

Effective Dates. Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits for which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Research References

ALR.

Intoxicating liquors: products liability. 42 A.L.R.4th 253.

3-6-101. Title.

This chapter shall be known and may be cited as the “Native Brandy Law”.

History. Acts 1953, No. 163, § 1; A.S.A. 1947, § 48-706.

3-6-102. Manufacture and sale authorized.

It shall be lawful for any person under the terms and provisions hereof to manufacture and to sell within the State of Arkansas, and to export without the state, brandy, cordials, or other distillates, or their components, which are made from agricultural or horticultural products such as peaches, apples, cherries, plums, grapes, boysenberries, blackberries, and other fruits produced solely within the state, when such person shall have become qualified to do so under the provisions of this chapter.

History. Acts 1953, No. 163, § 2; A.S.A. 1947, § 48-707.

3-6-103. Administration by Alcoholic Beverage Control Division.

The Alcoholic Beverage Control Division or its successor shall have the right to regulate the manufacture and sale of the products authorized in § 3-6-102 and shall make reasonable rules governing the manufacture and sale thereof. Except as otherwise specifically provided in this chapter, all other laws now in effect governing the manufacture and sale of intoxicating liquors shall be deemed applicable.

History. Acts 1953, No. 163, § 7; A.S.A. 1947, § 48-712; Acts 2019, No. 315, § 84.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the first sentence.

3-6-104. Permits.

Upon application by any qualified person, the Alcoholic Beverage Control Division or any successor thereof performing its functions as now defined by law shall issue to the person a manufacturer's permit which shall authorize and permit the person to manufacture and sell, under the terms and provisions hereof, brandy, cordials, or other distillates or component parts thereof manufactured solely from agricultural or horticultural products produced within the State of Arkansas.
However, no permit shall be granted to any person, firm, or corporation who shall not have been or whose members or all the stockholders thereof shall not have been a citizen and resident maintaining bona fide residence and domicile within the state for a continuous period of five (5) years next preceding the date of making such application.
A permit application shall be accompanied by a permit fee of two hundred fifty dollars ($250) for the issuance of such permit.
When the permit is issued, it shall be without an expiration date.
So long as the permit shall remain in full force and effect, the holder shall pay an annual permit fee of two hundred fifty dollars ($250).
The permit shall be cancelled only upon reasonable cause after hearing in the manner now provided by law.
The permit shall not be transferable.
The holder of a permit shall be authorized to manufacture the products defined in § 3-6-102 and to sell them without the necessity of obtaining any further license or permit to the holders of bona fide wholesale or retail liquor permits issued in the manner now provided by law and may sell the products to the holders of permits to manufacture native wines in this state. Manufacturers shall be authorized to sell such products at retail on the premises of the authorized place of manufacture.

History. Acts 1953, No. 163, §§ 3-5; A.S.A. 1947, §§ 48-708 — 48-710; Acts 1993, No. 1028, § 1.

Cross References. Causes for revocation, generally, § 3-4-301.

Payment of renewal fees, § 3-4-216.

Revocation and suspension proceedings generally, §§ 3-2-212 — 3-2-217.

3-6-105. Tax on sales.

The holder of a permit shall pay a tax of one dollar ($1.00) per gallon, payable and collectible in the manner as in the case of other taxes on intoxicating liquors now provided on all of the products sold for consumption within the State of Arkansas to the holders of wholesale or retail liquor permits within the state.
The manufacturer may sell the products for export without the state, or to the manufacturers of native wine in this state for use in the fortification of the wine, free of payment of the taxes, under rules and regulations as may be provided pursuant to the authority of this chapter.

History. Acts 1953, No. 163, § 6; A.S.A. 1947, § 48-711.

Cross References. Tax collection procedure, §§ 3-7-107, 3-7-201.

3-6-106. Collection of fees and taxes.

The permit fees and the tax herein provided shall be collected in the same manner as all other liquor taxes and under such reasonable rules as the Secretary of the Department of Finance and Administration or his or her successor may provide.
The permit fees and taxes shall be deposited into the State Treasury as general revenues to the credit of the State Apportionment Fund, there to be allocated to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by law and be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1953, No. 163, § 8, as added by 1953, No. 118, § 36(A), as added by 1971, No. 585, § 12; A.S.A. 1947, § 48-713; Acts 2019, No. 910, § 3330.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

Chapter 7 Excise Taxes

Publisher's Notes. The tax collection procedures of this chapter may be superseded by the Arkansas Tax Procedure Act, § 26-18-101 et seq.

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 167 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 400 et seq.

Subchapter 1 — General Provisions

Effective Dates. Acts 1935, No. 109, § 15: approved Mar. 16, 1935. Emergency clause provided: “Whereas, the present state revenue does not meet the needs for maintenance and development of the State Government, and its agencies and the state's credit is threatened with impairment, an emergency is declared to exist and this Act shall become a law and be effective on its passage and approval or nonaction by the Governor.”

Acts 1941, No. 356, § 7: Mar. 26, 1941. Emergency clause provided: “Whereas, it has been ascertained that large quantities of ‘moonshine’ intoxicating liquors are being manufactured and sold in the State of Arkansas and large quantities of intoxicating liquors upon which the state tax has not been paid are also being sold in the State of Arkansas and the state is losing great sums of money in the form of revenue by reason thereof, an emergency is hereby declared and this act shall be in full force and effect immediately from and after its passage and approval.”

Acts 1947, No. 108, § 5: approved Feb. 22, 1947. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that existing laws providing for the distribution of state revenues are such that a moderate diminution of certain of the revenues would have the effect of curtailing the activities of certain necessary agencies of the State Government, and that only the provisions of this act will correct a situation which otherwise may deprive the citizens of this state from receiving the benefits which the operation of the State Government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1949, No. 282, § 17: Mar. 18, 1949. Emergency clause provided: “Whereas, there is at this time discrimination between wholesale and retail dealers and among themselves; and whereas, such discriminatory practices are detrimental to the welfare of the state, and it being immediately necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage and approval.”

Acts 1969, No. 169, § 5: Mar. 5, 1969. Emergency clause provided: “The General Assembly finds that the State of Arkansas is in immediate need of additional funds for general revenue purposes. Accordingly, an emergency is declared to exist, and this act being necessary for the preservation of the public health, peace, and safety shall be effective from and after its passage and approval.”

Acts 1969, No. 271, § 7: Mar. 18, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the alcoholic beverage laws of this state are not being adequately enforced; that there is a pressing need for additional personnel for the proper enforcement of these laws; and that only by the immediate passage of this act can the additional revenues be raised to employ the necessary additional personnel to properly enforce the alcoholic beverage laws of this state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall become effective from and after the passage and approval of this act.”

Acts 1983, No. 826, § 5: July 1, 1983. Emergency clause provided: “It is hereby found and determined by the General Assembly that tax stamps are now required for malt liquor, causing an undue burden on taxpayers, and unnecessary expense for the administration of the malt liquor tax by the State of Arkansas, and the passage of this act is necessary to provide for the preservation of the public peace, health, and safety. Therefore, an emergency is hereby declared to exist and this act shall be in full force and effect from and after July 1, 1983.”

Acts 1983, No. 844, § 7: May 1, 1983. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the collection of state general revenues during the current fiscal year has diminished to such extent that the activities of certain necessary agencies of the state government are being and will continue to be curtailed, and that the provisions of this act will aid in the correction of a situation which otherwise will deprive the citizens of this state from receiving benefits which the operation of state government contemplates. Therefore, this act being necessary for the preservation of the public health and safety shall take effect and be in full force effective May 1, 1983.”

Acts 1987, No. 424, § 10: July 1, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the State of Arkansas is in serious danger of losing revenues which are necessary to provide adequate funding for schools and other essential services required by the citizens of this state and the provisions of this act are necessary to avoid a substantial reduction in state revenues. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect on and after July 1, 1987.”

Acts 1995, No. 537, § 15: July 1, 1995.

Acts 2007, No. 1203, § 2: Apr. 4, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that beer and malt beverage manufacturers and wholesalers are an important component of the state economy; that in order to be competitive, beer and malt beverage manufacturers are in urgent need of immediate tax relief; that failure to provide immediate tax relief to beer and malt beverage manufacturers could cause irreparable harm to these manufacturers and the state economy; and that this act is immediately necessary to enable the manufacturers to continue operations and contribute to the state economy. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on the first day of the calendar month after: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2017, No. 671, § 2: Sept. 1, 2017. Effective date clause provided: “Section 1 of this act becomes effective on the first day of the first month following the effective date of this act.”

Case Notes

Construction.

Sections 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 and Acts 1935, No. 108, providing for issuance of permits and licenses for the manufacture, sale, transportation, possession or other disposition of intoxicating liquors should be read together. Southwestern Distilled Prods., Inc. v. State ex rel. Butt, 203 Ark. 524, 160 S.W.2d 208 (1941).

3-7-101. Purpose.

It is declared not to be the purpose of §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 to impose a duplicate or double license tax on the manufacturing, selling, blending, rectifying, or mixing in this state, or transporting in this state of spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages, as measured by the quantity of spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages, manufactured, sold, blended, rectified, mixed, or transported in or into this state in conformity thereto, and any other license tax imposed by law heretofore passed is declared to be a privilege tax or permit fee.

History. Acts 1935, No. 109, § 7; Pope's Dig., § 14179; A.S.A. 1947, § 48-405.

3-7-102. Definition.

As used in §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110, unless the context otherwise requires, “person” means every corporation, association, copartnership, limited liability company, or individual.

History. Acts 1935, No. 109, § 1; Pope's Dig., § 14173; A.S.A. 1947, § 48-401; Acts 1995, No. 1160, § 23.

3-7-103. Penalty — Revocation.

Any person who shall violate any of the provisions of §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 shall be guilty of a violation and upon conviction be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000).

History. Acts 1935, No. 109, § 11; Pope's Dig., § 14183; A.S.A. 1947, § 48-409; Acts 2005, No. 1994, § 32.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor”.

Cross References. Penalty for selling, transporting, or possessing untaxed liquor, § 3-3-216.

Revocation procedure generally, §§ 3-2-212 — 3-2-217.

3-7-104. Rate of tax.

There is levied and there shall be collected as provided by law and rule the following taxes:

1. A tax at the rate of two dollars and fifty cents ($2.50) on each gallon of spirituous liquor sold or offered for sale in the State of Arkansas.
2. “Spirituous liquor”, as used in this section, means liquor distilled from the fermented juices of grain, fruits, or vegetables and any mixture containing liquor distilled from the fermented juices of grain, fruits, or vegetables, with an alcoholic content of twenty-one percent (21%) or more alcohol by weight;
1. A tax at the rate of one dollar ($1.00) on each gallon of premixed spirituous liquor sold or offered for sale in the State of Arkansas.
2. 1. “Premixed spirituous liquor”, as used in this section, means liquor distilled from the fermented juices of grain, fruits, or vegetables, having an alcoholic content of less than twenty-one percent (21%) alcohol by weight but more than five percent (5%) alcohol by weight.
  2. “Premixed spirituous liquor”, as used in this section, does not mean hard cider;
1. A tax at the rate of fifty cents (50¢) on each gallon of light spirituous liquor sold or offered for sale in the State of Arkansas.
2. 1. “Light spirituous liquor”, as used in this section, means liquor distilled from the fermented juices of grain, fruits, or vegetables and any mixture containing liquor distilled from the fermented juices of grain, fruits, or vegetables, having an alcoholic content between one-half of one percent (0.5%) and five percent (5%) alcohol by weight.
  2. “Light spirituous liquor”, as used in this section, does not mean hard cider;
1. A tax at the rate of seventy-five cents (75¢) on each gallon of vinous liquor, except wines fermented and manufactured within the State of Arkansas from grapes, berries, or other fruits grown in Arkansas sold or offered for sale in the State of Arkansas.
2. 1. “Vinous liquor”, as used in this section, means the fermented juices of grapes, berries, or other fruits and any other mixture containing the fermented juices of grapes, berries, or other fruits, having an alcoholic content of more than five percent (5%) alcohol by weight.
  2. “Vinous liquor”, as used in this section, does not mean hard cider;
1. A tax at the rate of twenty-five cents (25¢) on each gallon of light wine except light wine fermented and manufactured within the State of Arkansas from grapes, berries, or other fruits grown in Arkansas, as sold or offered for sale in the State of Arkansas.
2. 1. “Light wine”, as used in this section, means the fermented juices of grapes, berries, or fruits and any other mixture containing the fermented juices of grapes, berries, or fruits, having an alcoholic content of between one-half of one percent (0.5%) and five percent (5%) alcohol by weight.
  2. “Light wine”, as used in this section, does not mean hard cider;
1. A tax at the rate of seven dollars and fifty cents ($7.50) per barrel of thirty-two gallons (32 gals.), and proportionately for larger and smaller gallonages per barrel, on all beer having an alcoholic content of five percent (5%) or less by weight and hard cider sold or offered for sale in the State of Arkansas.
2. This tax shall be paid in the manner prescribed by § 3-7-401 et seq.; and
A tax at the rate of twenty cents (20¢) on each gallon of malt liquor sold or offered for sale in the State of Arkansas.

History. Acts 1935, No. 109, § 3, as added by Acts 1947, No. 108, § 1; 1959, No. 113, § 1; 1963, No. 196, § 1; 1969, No. 169, § 1; 1983, No. 826, § 1; 1983, No. 844, §§ 3-5; A.S.A. 1947, § 48-402, 48-402n; Acts 1987, No. 424, §§ 1-3; 1993, No. 403, § 1; 2017, No. 671, § 1.

Publisher's Notes. This section formerly required the affixation of tax stamps to spirituous, vinous, and malt liquors. Acts 1983, No. 826, § 1, deleted that requirement in its entirety, while § 2 of the same act specifically provided that on and after July 1, 1983, the purchase and affixation of tax stamps would no longer be required for malt liquors under Acts 1935, No. 109.

Amendments. The 2017 amendment substituted “rule” for “regulation” following “law and” in the introductory language; added (2)(B)(ii), (3)(B)(ii), (4)(B)(ii) and (5)(B)(ii); deleted “as authorized by §§ 3-5-401 — 3-5-412 [repealed]” preceding “sold or offered” in (4)(A); deleted “authorized by §§ 3-5-401 — 3-5-412 [repealed]” preceding “sold or offered” in (5)(A); and inserted “and hard cider” in (6)(A).

Cross References. Native brewery, exemption from tax, § 3-5-1408.

Case Notes

Constitutionality.

Former similar section did not impose a burden on interstate commerce in violation of federal constitutional provisions. McCarroll v. Clyde Collins Liquors, Inc., 198 Ark. 896, 132 S.W.2d 19 (1939) (decision under prior law).

Revocation of License.

The Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) had power to cancel retail liquor license where licensee sold liquor for consumption in the state upon which the export tax only had been paid instead of the regular retail tax, without the necessity of a conviction through prosecution in the courts for such violations. Whitmore v. McCarroll, 198 Ark. 211, 128 S.W.2d 244 (1939) (decision under prior law).

3-7-105. Malt liquor tax — Reporting and payments.

The excise tax levied on malt liquors by § 3-7-104 shall be reported and paid to the Secretary of the Department of Finance and Administration on or before the fifteenth day of the month following the month in which the wholesaler or other person authorized to sell malt liquors obtains delivery of such malt liquors from the supplier.
The secretary shall provide forms necessary for reporting the tax due and shall enforce the tax pursuant to the Arkansas Tax Procedure Act, § 26-18-101 et seq.

History. Acts 1983, No. 826, § 3; A.S.A. 1947, § 48-402.2; Acts 2019, No. 910, § 3331.

Amendments. The 2019 amendment substituted “secretary” for “director” in (a) and (b).

3-7-106. Shipping permits.

1. It shall be unlawful for any person to ship or transport or cause to be shipped or transported into the State of Arkansas any spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages from points without the state without first having obtained a permit from the Director of the Alcoholic Beverage Control Division.
2. A railroad company, express company, or bonded truck company or truck line operating under a certificate or permit issued by the Arkansas Department of Transportation, or a river transportation company shall not receive for shipment or ship into this state any package or receptacle containing distilled spirits unless a copy of the permit showing that payment of the taxes required by law has been made accompanies the shipment.
3. The permit shall be in such form as may be prescribed by the director, and all such shipments into the state shall be governed by such rules as may be promulgated by the director.
4. However, the railroad or express company or river transportation company shall not be required to obtain any permit to transport distilled spirits but shall be subject to all rules promulgated by the director.
1. It shall be unlawful for any person who is permitted by law to manufacture, sell, or transport spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages to transport or cause spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages to be transported by any means of transportation except as may be prescribed by the rules of the director.
2. However, spirits may be transported by truck or wagon from and to freight or express depots, to and from the place or places of business of the permittees and upon the premises of the permittees, from and to one (1) place of business to another place of business of the permittee, provided that the owner of trucks or wagons transporting distilled liquor as aforesaid, excepting trucks and wagons owned and operated by a railroad or express company, or bonded truck company or truck line operating under a certificate or permit issued by the Arkansas Department of Transportation, or a river transportation company, or by the person permitted by law to manufacture, sell, or transport spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages shall procure a permit to engage in transportation and shall execute a bond satisfactory in amount, form, and as to surety, to be approved by the director, conditioned upon the lawful transportation of spirituous liquors, vinous liquors, wines other than Arkansas wines, or beer or malt beverages.

History. Acts 1935, No. 109, § 5; Pope's Dig., § 14177; Acts 1941, No. 356, § 5; A.S.A. 1947, § 48-404; Acts 2017, No. 707 §§ 1, 2; 2019, No. 315, §§ 85, 86.

Publisher's Notes. As to regulations requiring reports rather than transportation permits for beer, see § 3-7-401.

Amendments. The 2017 amendment substituted “Department of Transportation” for “State Highway and Transportation Department” in (a)(2) and (b)(2); and made stylistic changes in (a)(2).

The 2019 amendment deleted “and regulations” following “rules” in (a)(3), (a)(4), and (b)(1).

Cross References. Reports in lieu of permits, § 3-7-401.

Spirituous, vinous, and malt liquors defined, § 3-1-102.

Case Notes

Constitutionality.

In the absence of action by Congress, the state has the right to require those engaged in interstate transportation of liquors and using state facilities and receiving its police protection while engaged in such commercial pursuit to procure from the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) a permit conforming to regulations harmonious with this section, though no revenue fee may be exacted for the permit. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

This section is not unconstitutional as imposing an unreasonable burden upon interstate commerce. Chambless v. Cannon, 81 F. Supp. 885 (W.D. Ark. 1949).

Seizure of truckload of whiskey being transported through Arkansas where driver did not have a permit did not violate due process clause of Ark. Const., Art. 2, § 8, or the interstate commerce clause of U.S. Const., Art. 1, § 8, since U.S. Const. Amend. 21 prohibits transportation of intoxicating liquor into any state in violation of state law. Welborn v. Morley, 219 Ark. 569, 243 S.W.2d 635 (1951).

Construction.

The term “into” as used in this section includes shipments entering the state, but consigned to points within or beyond. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

Failure to Secure Permit.

Transportation of whiskey through the state without a permit was a violation of this section warranting conviction. Jones v. State, 198 Ark. 354, 129 S.W.2d 249 (1939).

Trucker transporting liquor through Arkansas without an Arkansas permit was subject to arrest for violation of this section. Chambless v. Cannon, 81 F. Supp. 885 (W.D. Ark. 1949).

Where vehicle permit had not been secured from authorities for transportation of alcoholic beverages through the state, the shipment did not enjoy exempt passage, and the driver of the truck was properly apprehended and fined for being in possession of liquor in a dry county. Cactus Distrib. Co. v. State, 249 Ark. 113, 458 S.W.2d 149 (1970).

Judicial Review.

The refusal of the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) in reasonable circumstances to issue permit for interstate transportation of liquor would be subject to judicial review and immediate compulsion through mandamus. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

Regulations.

Regulation requiring those proposing to transport liquor through the state to procure a permit was not in excess of authority conferred by the legislature. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) has the power to designate at what times, from what places, and over what highways he will permit cargoes of spirituous liquors to leave the state, but the power must be exercised in a reasonable manner and shipper should be afforded a reasonable opportunity to conform to and to comply with regulations. Hardin v. Spiers, 202 Ark. 804, 152 S.W.2d 1010 (1941).

Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) has power to issue regulations pertaining to transportation of liquors through the state, to require that persons appointed by and responsible to him should make inspections and to ignore inspections otherwise made, but regulations must receive a reasonable interpretation and application in order not to impose unnecessary burdens on interstate commerce intended to be regulated. Hardin v. Spiers, 202 Ark. 804, 152 S.W.2d 1010 (1941).

—Compliance.

Testimony showing attempt in good faith to comply with regulations pertaining to inspection at point of exit justified decree enjoining cancelation of permit. Hardin v. Spiers, 202 Ark. 804, 152 S.W.2d 1010 (1941).

Cited: Morley v. Fifty Cases of Whiskey, 216 Ark. 528, 226 S.W.2d 344 (1950).

3-7-107. Enforcement of rules.

Sections 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 shall be administered and enforced by the Director of the Alcoholic Beverage Control Division and the Secretary of the Department of Finance and Administration.
The Director of the Alcoholic Beverage Control Division and the Secretary of the Department of Finance and Administration are authorized and directed to issue permits as provided for in §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110, for the manufacture, sale, and transportation of distilled spirits and to enforce the license tax provisions of §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 and the collection of the license taxes imposed hereby and to promulgate reasonable rules for those purposes.

History. Acts 1935, No. 109, § 8; Pope's Dig., § 14180; A.S.A. 1947, § 48-406; Acts 2019, No. 315, § 87; 2019, No. 910, § 3332.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (b).

The 2019 amendment by No. 910 substituted “Secretary” for “Director” in (a) and (b).

Case Notes

Judicial Review.

Refusal of the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) in reasonable circumstances to issue permit for interstate transportation of liquor would be subject to judicial review and immediate compulsion through mandamus. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

Regulations.

Regulation of the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) requiring those proposing to transport liquor through the state to procure a permit was not in excess of authority conferred by the legislature. Duckworth v. State, 201 Ark. 1123, 148 S.W.2d 656, aff'd, 314 U.S. 390, 62 S. Ct. 311, 86 L. Ed. 294 (1941).

—Compliance with Regulations.

Testimony showing attempt in good faith to comply with regulations of the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) pertaining to inspection at point of exit justified decree enjoining cancelation of permit. Hardin v. Spiers, 202 Ark. 804, 152 S.W.2d 1010 (1941).

Cited: Leach v. Cook, 211 Ark. 763, 202 S.W.2d 359 (1947).

3-7-108. Disposition of funds.

All taxes, penalties, and costs collected by the Secretary of the Department of Finance and Administration under the provisions of §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund. The Treasurer of State, on or before the fifth day of the month next following the month during which such funds shall have been received by him or her, shall allocate and transfer the funds to the various State Treasury funds in the proportions to each as provided by law, after first transferring to the General Revenue Fund Account of the State Apportionment Fund an amount equivalent to the cost of collection and other charges as also provided by law.

History. Acts 1935, No. 109, § 9, as added by 1947, No. 108, § 2; A.S.A. 1947, § 48-407; Acts 2019, No. 910, § 3333.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in the first sentence; and inserted “Account” in the second sentence.

3-7-109. Delinquent taxes.

On the failure of any person, liable therefor, to pay the taxes imposed by §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110 within fifteen (15) days after the taxes have become due, he or she shall be deemed delinquent. A penalty of twenty percent (20%) on the amount of license tax due shall attach. The Auditor of State shall at once cause proceedings to be instituted for the collection of the license tax, with such interest and penalties as may be provided by law for the collection of other taxes.

History. Acts 1935, No. 109, § 10; Pope's Dig., § 14182; A.S.A. 1947, § 48-408.

Case Notes

Prosecuting Attorneys.

Prosecuting attorneys have concurrent authority with the Auditor of State and the Commissioner of Revenues (now the Director of the Alcoholic Beverage Control Division) to enforce the liquor laws of the state, and prosecuting attorney was within his authority when he proceeded by proper action to seize alcoholic liquors for the purpose of collecting past due taxes thereon. Southwestern Distilled Products, Inc. v. Trimble, 198 Ark. 970, 132 S.W.2d 196 (1939).

3-7-110. Wrongful tax collections.

No suit shall be maintained in any court to restrain or delay the collection or payment of the tax levied by §§ 3-7-101 — 3-7-104 and 3-7-106 — 3-7-110.
The aggrieved taxpayer shall pay with or without protest the tax as and when required and may at any time within two (2) years from the date of the payment sue the state through its agent, the Auditor of State, in an action at law in any state or federal court otherwise having jurisdiction of the parties and subject matter for the recovery of the tax paid with legal interest thereon from the date of payment.
If it is finally determined that the tax or any part thereof was wrongfully collected, for any reason, it shall be the duty of the Auditor of State to issue a warrant on the Treasurer of State for the amount of the tax so adjudged to have been wrongfully collected together with legal interest thereon. The Treasurer of State shall pay the warrant amount at once, in preference to other warrants or claims against the state.
A separate suit need not be filed for each individual payment made by any taxpayer, but a recovery may be had in one (1) suit for as many payments as may have been made.

History. Acts 1935, No. 109, § 12; Pope's Dig., § 14184; A.S.A. 1947, § 48-410.

3-7-111. Additional taxes.

1. In addition to all other fees and taxes now imposed by law, there are levied and shall be collected the following additional fees and taxes:
  1. An additional tax of five cents (5¢) per case on each case of native wine produced and sold in this state, including light wines, wine coolers, and any other mixture containing the fermented juices of grapes, berries, fruits, or vegetables regardless of the percentage of alcoholic content, the tax to be paid by the manufacturer of the wine;
  2. A consumer enforcement tax of twenty-five cents (25¢) per thirty-two-gallon barrel of beer that may be passed on by the retailer to the consumer or may be absorbed by the retailer, the tax to be collected by the beer wholesalers acting as agent for the state;
  3. In addition to the fee imposed for the privilege of operating a dispensary under § 3-4-604, an additional fee of four hundred fifty dollars ($450) for the issuance of each permit; and
  4. In addition to the permit fee now imposed under § 3-4-605 for the privilege of storing, transporting, and selling at wholesale spirituous, vinous, or malt liquors, an additional tax of nine thousand three hundred dollars ($9,300).
2. All additional permit fees and taxes imposed under subdivisions (a)(1)(B)-(D) of this section shall be levied and collected in the same manner as now provided by law.
3. The tax imposed by subdivision (a)(1)(A) of this section shall be reported monthly by the manufacturer on all sales made in the State of Arkansas to Arkansas wholesalers, retailers, or consumers, and the manufacturer shall remit the tax with each report.
4. All additional permit fees and taxes levied by subdivisions (a)(1)(A)-(D) of this section shall be deposited into the State Treasury as general revenues and credited to the State Apportionment Fund. These amounts shall be allocated and transferred to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by law and shall be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.
1. There are levied and there shall be collected as provided by law and rule:
  1. A tax at the rate of twenty cents (20¢) per case on liquor, cordials, liqueurs, premixed spirituous liquors, and specialties having an alcoholic content of twenty-one percent (21%) or more by weight;
  2. A tax at the rate of five cents (5¢) per case on liquor, cordials, liqueurs, premixed spirituous liquors, light spirituous liquors, and specialties having an alcoholic content of less than twenty-one percent (21%) alcohol by weight; and
  3. A tax at the rate of five cents (5¢) per case on sparkling and still wines, including light wines, regardless of alcoholic content.
2. These taxes shall be paid by the wholesaler and shall not be passed on by the wholesaler to the retailer or the public. These taxes shall be paid on all such merchandise sold or offered for sale in the State of Arkansas and shall be in addition to any and all other taxes heretofore or hereafter levied and collected on that merchandise.
3. All taxes, penalties, fines, and costs received by the Secretary of the Department of Finance and Administration under the provisions of this subsection shall be deposited into the State Treasury as general revenues to the credit of the State Apportionment Fund. There those amounts shall be allocated to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by law and shall be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.
4. Any person who violates any of the provisions of this subsection shall be guilty of a violation and upon conviction shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500).

History. Acts 1949, No. 282, §§ 13, 15; 1949, No. 282, § 14, as added by 1953, No. 118, § 36(B), as added by 1971, No. 585, § 12; 1953, No. 385, § 1; 1969, No. 271, § 1; 1969, No. 271, § 2, as added by 1953, No. 118, § 36(C), as added by 1971, No. 585, § 12; A.S.A. 1947, §§ 48-418, 48-419, 48-1213 — 48-1215; Acts 1987, No. 424, §§ 7, 8; 2005, No. 1994, § 33; 2009, No. 294, § 19; 2019, No. 910, § 3334.

Amendments. The 2005 amendment substituted “violation” for “misdemeanor” in (b)(4).

The 2009 amendment, in (a)(1), substituted “four hundred fifty dollars ($450)” for “one hundred dollars ($100)” in (a)(1)(C), and substituted “nine thousand three hundred dollars ($9,300)” for “three hundred dollars ($300)” in (a)(1)(D).

The 2019 amendment substituted “Secretary” for “Director” in the first sentence of (b)(3).

Cross References. Native brewery, exemption from tax, § 3-5-1408.

Retailers and wholesalers permit fees, §§ 3-4-604, 3-4-605.

Revocation procedure, generally, §§ 3-2-212 — 3-2-217.

3-7-112. Methods of identifying imported liquors.

The Department of Finance and Administration shall, by regulation, establish a method of identifying each case of spirituous liquors to be shipped into Arkansas, prior to such shipment, either by stamps affixed to the cases or by printed evidence of the destination.

History. Acts 1975, No. 447, § 2; A.S.A. 1947, § 48-437.

3-7-113. Distillers and wholesalers — Records.

Distilleries and wholesalers of spirituous liquors shall furnish records as may be required to determine and protect the tax interests of the state.

History. Acts 1975, No. 447, § 3; A.S.A. 1947, § 48-438.

3-7-114. Wholesalers and retailers — Obtaining liquor illegally — Nonpayment of taxes.

Failure of any wholesaler or retailer to obtain spirituous liquors from sources approved by the state for sale or to pay all taxes due on such liquors shall result in revocation of any alcoholic beverage permit held by the licensee.
Further, such action shall be deemed to constitute fraud and shall be punishable as such.

History. Acts 1975, No. 447, § 4; A.S.A. 1947, § 48-439.

3-7-115. Sacramental wine.

All wines sold in the State of Arkansas for use as sacramental wine shall be exempt from all taxes levied on wine by the State of Arkansas.
1. Each container of sacramental wine sold in the state shall have attached to it a decal containing the words “Sacramental Wine”.
2. The decal shall be provided and attached to the containers by wineries selling sacramental wine in this state.

History. Acts 1987, No. 902, § 1.

3-7-116. Tax rebate for qualified manufacturers — Definitions.

For purposes of this section:
1. “Barrel” means thirty-one gallons (31 gals.) of liquid;
2. “Beer” means any fermented liquor made from malt or any substitute and having an alcoholic content of not more than five percent (5%) by weight;
3. “Malt beverage” means any liquor brewed from the fermented juices of grain and having an alcoholic content of not less than five percent (5%) or more than twenty-one percent (21%) by weight;
4. 1. 1. “Qualified manufacturer” means a person that manufactures a combined total of less than twenty-five thousand (25,000) barrels of beer and malt beverage during the twelve-month period immediately preceding the twelve-month period for which the rebate under this section is claimed.
    2. “Qualified manufacturer” includes a person licensed under § 3-5-1201 et seq. or the Arkansas Small Brewery Act, § 3-5-1401 et seq.
  2. 1. The maximum quantity of less than twenty-five thousand (25,000) barrels of beer and malt beverage shall be computed by combining all brands and labels of beer and malt beverage manufactured at all manufacturing facilities owned or controlled by the qualified manufacturer.
    2. 1. The person shall validate its eligibility by furnishing copies of the following forms:
        
        Brewers Report of Operations (monthly or quarterly) TTB Form (OMB Number 1512-0052); or
        
        Its equivalent form as submitted to the United States Department of the Treasury.
      2. The forms shall demonstrate that the combined manufactured barrels of beer and malt beverage are less than twenty-five thousand (25,000) barrels of beer; and
5. “Wholesaler” means a person licensed by the Alcoholic Beverage Control Division as a wholesaler that purchases beer or malt beverage from a qualified manufacturer.
1. 1. A qualified manufacturer is entitled to a tax rebate equal to seven dollars and fifty cents ($7.50) per barrel of beer, malt beverage, or hard cider sold or offered for sale in Arkansas each calendar year by the qualified manufacturer or sold through its appointed wholesalers if the qualified manufacturer or its wholesaler is required to report and pay tax under § 3-5-1205(3), § 3-5-1408(3), or § 3-7-104 on the beer, malt beverage, or hard cider first sold or offered for sale in this state.
  2. The tax rebate claimed each year by the qualified manufacturer under this section shall not exceed the annual tax liability of the qualified manufacturer and its wholesalers under § 3-5-1205(3), § 3-5-1408(3), or § 3-7-104 during the year requested.
2. The first twelve-month period for which a qualified manufacturer may claim a rebate under this section begins January 1, 2007, for the year ending December 31, 2006.
1. If a qualified manufacturer under this section expands to produce a combined twenty-five thousand (25,000) barrels or more of beer and malt beverage during a twelve-month period, the qualified manufacturer shall submit a form to the division acknowledging that production has exceeded the limit amount for qualification as a qualified manufacturer.
2. A qualified manufacturer that has filed the form required in subdivision (c)(1) of this section may continue to claim the tax rebate under subsection (b) of this section on the first twenty-four thousand nine hundred and ninety-nine (24,999) barrels of beer or malt beverage manufactured during the twelve-month period immediately preceding the twelve-month period for which the rebate under this section is claimed as validated under subdivision (a)(4)(B)(ii) of this section.

History. Acts 2007, No. 1203, § 1; 2015, No. 857, § 11; 2017, No. 614, § 1.

Amendments. The 2015 amendment inserted “§ 3-5-1205(3)” in (b)(1)(A) and (b)(1)(B).

The 2017 amendment added (c).

Subchapter 2 — Special Retail Tax

Effective Dates. Acts 1951, No. 252, § 4: approved Mar. 19, 1951. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that the collection of state general revenues during the current fiscal year has diminished to such extent that the activities of certain necessary agencies of the State Government are being and will continue to be curtailed, and that only the provisions of this act will correct a situation which otherwise will deprive the citizens of this state from receiving benefits which the operation of State Government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1957, No. 410, § 2: Mar. 28, 1957. Emergency clause provided: “Whereas an efficient method should be provided for the collection of 3% excise tax set forth in Act 252 of 1951 and Act 118 of 1953, (Section 48-411, Ark. Stat. Official Edition) and it being essential that such collection be sufficient to supply the funds for the proper operation of the State Government, it being necessary for the public peace, welfare, and safety, an emergency is hereby declared and this act shall be in full force and effect immediately after its passage and approval.”

Acts 2003, No. 272, § 2: Feb. 28, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the excise tax on beer levied under Arkansas Code § 3-7-201(a)(3) will expire; that Arkansas Code § 3-7-201(a)(3) should be extended until June 30, 2005, to ensure that low-income families may continue to receive quality early care and education, and to support the Arkansas Better Chance Program of the Department of Education; that the stream of special revenue should be continued; and that this act is immediately necessary to prevent the tax from expiring by operation of law. Therefore, an emergency is declared to exist and this act, being immediately necessary for the preservation of the public peace, health, and safety, shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 2188, § 2: June 30, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the current retail beer tax will expire on June 30, 2005; that in order to eliminate a period of time in which the retail beer tax would not exist this act must become effective on June 30, 2005; that the citizens of Arkansas are in need of the revenues generated by the retail beer tax; and that these revenues are necessary to continue funding essential programs such as subsidized child care for low-income families, the Arkansas Better Chance Program of the Department of Education, and the Child Care Development Fund. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on June 30, 2005.”

Acts 2007, No. 869, § 2: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the current excise tax on beer expires on June 30, 2007 and that in order to maintain continuity with the state fiscal year this act must become effective on July 1, 2007. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2007.”

3-7-201. Tax imposed — Collection.

1. There is levied a special alcoholic beverage excise tax of three percent (3%) upon all retail receipts or proceeds derived from the sale of liquor, cordials, liqueurs, specialties, and sparkling and still wines. The tax shall be and is in addition to all other taxes now imposed and cumulative to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq.
2. Native wine sold at retail in this state shall be subject to the special alcoholic beverage excise tax levied upon all retail receipts or proceeds derived from the sale of liquor, cordials, liqueurs, specialties, and sparkling and still wines under the provisions of this section.
It shall be the duty of every retailer in this state to collect the tax from the consumer in addition to the established retail price of beer, liquor, cordials, liqueurs, specialties, and sparkling and still wines and to file a return and remittance with the Secretary of the Department of Finance and Administration on or before the twentieth day of each calendar month for the preceding month.
Failure to file the return and remittance on the due date shall be cause for the secretary to enter an assessment for the return and remittance and add as a penalty ten percent (10%) of the amount of tax found to be due.
Returns shall be filed upon forms prescribed by the secretary in accordance with such rules as the secretary may promulgate hereunder.
The State Board of Education and the Division of Elementary and Secondary Education shall fully budget, fund, and expend or commit to expend the general revenue replacing the revenue derived from the previously imposed special alcoholic beverage excise tax on beer in addition to any other funding provided by law for essential programs such as subsidized child care for low-income families, the Arkansas Better Chance Program, and the Child Care and Early Childhood Education Fund Account in an amount equal to the appropriation level for the Arkansas Better Chance Program.
1. There is levied a special alcoholic beverage excise tax of one percent (1%) upon all retail receipts or proceeds derived from the sale of beer.
2. The revenues derived from the excise tax on beer levied under subdivision (f)(1) of this section shall be deposited into the General Revenue Fund Account of the State Apportionment Fund to be distributed as general revenue.

History. Acts 1951, No. 252, § 3; 1953, No. 118, § 32(D); 1985, No. 1052, § 3; A.S.A. 1947, §§ 48-411, 48-608.2; Acts 2001, No. 1841, § 1; 2003, No. 272, § 1; 2005, No. 2188, § 1; 2007, No. 869, § 1; 2011, No. 982, § 2; 2019, No. 315, § 88; 2019, No. 910, § 3335.

Amendments. The 2005 amendment redesignated former (e)(4) as present (e)(4)(A); substituted “not extend past June 30, 2007” for “expire on June 30, 2005” in present (e)(4)(A); and added (e)(4)(B).

The 2007 amendment added (f).

The 2011 amendment deleted former (a)(3); deleted former (e) through (e)(4)(A) and redesignated former (e)(4)(B) as (e); in present (e), deleted “After June 30, 2007” at the beginning, and “replacement” following “expend the,” inserted “replacing the revenue derived from the previously imposed special alcoholic beverage excise tax on beer” and the last occurrence of “Arkansas”; and deleted “Beginning July 1, 2007” at the beginning of (f)(1).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (d).

The 2019 amendment by No. 910 substituted “secretary” for “director” in (b), (c), and twice in (d); and substituted “Division of Elementary and Secondary Education” for “Department of Education” in (e).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Alcoholic Beverages, 26 U. Ark. Little Rock L. Rev. 349.

Case Notes

Waiver.

Where purchaser of liquor store paid taxes known to be due from seller prior to sale, the state did not waive its right to enforce its claim for sales and special excise tax deficiencies of seller discovered after transfer of the business to the new owner. Comm'r of Revenues v. Belote, 226 Ark. 295, 289 S.W.2d 665 (1956).

3-7-202. Lien — Procedure for obtaining.

If the taxpayer fails to demand a hearing before the Secretary of the Department of Finance and Administration within twenty (20) days after an assessment of the tax due the state has been made under this subchapter or, if the taxpayer shall fail to pay the tax assessed by the secretary after a hearing and an order by the secretary establishing the tax, as hereinbefore provided, then the secretary may as soon as practicable thereafter issue to the circuit clerk of any county of the state a certificate certifying that the person therein named is indebted to the state for the tax established by the secretary to be due.
The circuit clerk shall immediately enter upon the circuit court judgment docket the name of the delinquent taxpayer, the amount certified as being due, a short name of the tax, and the date of the entry upon the judgment docket.
The entry shall have the same force and effect as an entry on the judgment docket of a judgment rendered by the circuit court of the county and shall constitute and be evidence of the state's lien upon the title to any interest in any real property of the taxpayer named in the certificate.
The entry of the certificate as a judgment shall constitute, in addition to the force and effect above described, a lien also upon all personal property of the taxpayer named therein from the time of the entry of the certificate.
The lien shall be in addition to any and all other liens existing in favor of the state to secure the payment of the unpaid tax, penalty, interest, and costs. The lien shall be paramount and superior to all other liens of whatever kind and character attaching to any of the property subsequent to the date of the entry upon judgment docket.

History. Acts 1957, No. 410, § 1; A.S.A. 1947, § 48-411.1; Acts 2019, No. 910, § 3336.

Amendments. The 2019 amendment substituted “secretary” for “director” throughout (a).

3-7-203. Lien — Execution.

On the entry of the certificate of the Secretary of the Department of Finance and Administration, the circuit clerk shall issue an execution directed to the sheriff of the county, commanding him or her to levy upon and against all real and personal property of the taxpayer, which execution shall be by the clerk placed in the hands of the sheriff for levying thereon. The secretary shall thereby have all the remedies and may take all the proceedings for the collection of the tax which may be had or taken upon the recovery of a judgment at law.
The execution shall be issued and be served or executed in the same manner as now provided for the issuance and service of executions upon judgments rendered by the circuit courts of this state.
The circuit clerks and the sheriffs shall be entitled to receive the same fees now provided for by law in such matters. The fees shall be collected from the taxpayer by the sheriff in addition to the tax, penalties, and interest included in the certificate of indebtedness.
However, in the event the sheriff is unable, after diligent effort, to effect collection of the tax, interest, penalties, and costs, the secretary shall be empowered and authorized to pay such fees as are properly shown to be due to the clerk and sheriff out of the Miscellaneous Tax Refund Account.

History. Acts 1957, No. 410, § 1; A.S.A. 1947, § 48-411.1; Acts 2019, No. 910, §§ 3337, 3338.

Amendments. The 2019 amendment substituted “secretary” for “director” in (a) twice, and in (d).

3-7-204. Alternative remedies.

Nothing in this subchapter shall preclude the Secretary of the Department of Finance and Administration from resorting to any other legal means of collecting taxes as may now be provided by law. The issuance of a certificate of indebtedness, the entry thereof by the clerk, and the levy of execution, as provided herein, shall not constitute an election of remedies in respect to the collection of the tax.

History. Acts 1957, No. 410, § 1; A.S.A. 1947, § 48-411.1; Acts 2019, No. 910, § 3339.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-7-205. Disposition of funds.

All taxes, interest, penalties, and costs received by the Secretary of the Department of Finance and Administration under the provisions of this subchapter shall be general revenues and shall be deposited in the State Treasury to the credit of the State Apportionment Fund. The Treasurer of State shall allocate and transfer the revenues to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by and to be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1951, No. 252, § 3; 1953, No. 118, § 32(D); A.S.A. 1947, § 48-411; Acts 2019, No. 910, § 3340.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in the first sentence.

Subchapter 3 — Payment by Wholesalers and Importers

Effective Dates. Acts 1971, No. 296, § 12: July 1, 1971.

3-7-301. Due date.

Each licensed wholesale distributor and importer of spirituous liquors shall pay the excise tax required by law on the beverages on or before the fifteenth day of the month following the calendar month in which they are first received within this state by the wholesale distributor and importer.

History. Acts 1971, No. 296, § 2; A.S.A. 1947, § 48-423.

3-7-302. Monthly report and payment.

Each licensee responsible for the payment of excise tax shall file on or before the fifteenth day of each month a verified report on forms provided by the Secretary of the Department of Finance and Administration showing, for the preceding calendar month, the exact quantity of spirituous liquor:
1. Constituting the beginning and ending inventory for the month;
2. Shipped to him or her from outside this state and received by him or her in this state;
3. Sold or disposed of by him or her in this state;
4. Sold by him or her in this state to an agency of the United States Armed Forces, to which sale the excise tax is not applicable and for which the wholesaler would be entitled to credit for taxes previously paid; and
5. Returned to the manufacturer, to which transfer the excise tax is not applicable and for which the wholesaler would be entitled to credit for taxes previously paid.
The report on forms prescribed by the secretary shall also show the amount of excise tax payable after allowance for all proper deductions for all spirituous liquors received by him or her in this state and shall include such additional information as the secretary may require for the proper administration of this subchapter.
Payment of the excise tax levied by law in the amount disclosed by the report shall accompany the report and shall be paid to the secretary.

History. Acts 1971, No. 296, § 3; A.S.A. 1947, § 48-424; Acts 2019, No. 910, §§ 3341, 3342.

Amendments. The 2019 amendment substituted “secretary” for “director” throughout the section.

3-7-303. Records — Penalties.

Each wholesale distributor and importer of spirituous liquors required to file a return shall keep such complete and accurate books, papers, invoices, and other records as may be necessary to substantiate the accuracy of his or her report and the amount of excise tax due and shall retain the records for not less than three (3) years, subject to the use and inspection of the Secretary of the Department of Finance and Administration or his or her agents.
Any person required by this subchapter to retain books, papers, invoices, and other records who fails to produce them upon demand by the secretary or his or her agent or agents of the Alcoholic Beverage Control Division or its successor agency, unless the failure to produce is due to providential or other causes beyond his or her control, shall be guilty of a Class A misdemeanor.

History. Acts 1971, No. 296, §§ 3, 4; A.S.A. 1947, §§ 48-424, 48-425; Acts 2005, No. 1994, § 335; 2019, No. 910, § 3343.

Amendments. The 2005 amendment inserted “or her” twice in (a) and (b); and, in (b), inserted “Class A” and deleted “and upon conviction shall be fined not more than one thousand dollars ($1,000) or imprisoned not more than thirty (30) days, or punished by both the fine and imprisonment, in the discretion of the court” from the end.

The 2019 amendment substituted “secretary” for “director” in (a) and (b).

3-7-304. Delinquent tax penalties.

If the excise tax due the State of Arkansas is not paid when due by the wholesale distributor or importer of spirituous liquors responsible therefor, there shall be added to the amount of the tax a penalty on unpaid excise tax equivalent to five percent (5%) thereof.
If the delinquency continues for more than thirty (30) days, the licensee or permittee shall be subject to the revocation or suspension of his or her permit, in addition to recovery of the taxes or penalty through his or her bond.

History. Acts 1971, No. 296, § 6; A.S.A. 1947, § 48-427.

Cross References. Revocation and suspension procedure generally, §§ 3-2-212 — 3-2-217.

3-7-305. [Repealed.]

Publisher's Notes. This section, concerning bonds of wholesale distributors and importers of spirituous liquors, was repealed by Acts 1991, No. 261, § 1. The section was derived from Acts 1971, No. 296, § 8; A.S.A. 1947, § 48-429.

3-7-306. Right to contract.

To strengthen enforcement of this subchapter, the wholesalers, importers, manufacturers, and suppliers to whom this subchapter is applicable shall have the right to contract with each other to provide a distribution system best adapted, under proper rules, to ensure payment of the taxes provided by law and to minimize the possibility of tax loss to this state.

History. Acts 1971, No. 296, § 9; A.S.A. 1947, § 48-430; Acts 2019, No. 315, § 89.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

3-7-307. Rules — Sales to the military.

The Secretary of the Department of Finance and Administration shall continue the present, and if necessary promulgate additional rules to relieve wholesale distributors and importers from the liability of paying the excise tax levied and imposed on beverages covered by this subchapter which are sold to agencies of the United States Armed Forces.

History. Acts 1971, No. 296, § 5; A.S.A. 1947, § 48-426; Acts 2019, No. 315, § 90; 2019, No. 910, § 3344.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading and in the section.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”.

Subchapter 4 — Beer

Effective Dates. Acts 1953, No. 179, § 5: approved Mar. 2, 1953. Emergency clause provided: “Whereas, a reporting method for paying excise tax on beer will reduce the cost of collecting such taxes; and, whereas, it is imperative that every possible step be taken to reduce the cost of State Government; now, therefore, this act being necessary for the preservation of the public peace, health, and safety, an emergency is hereby declared to exist and this act shall be in full force and effect from and after its passage.”

Acts 1953, No. 373, § 5: approved Mar. 28, 1953. Emergency clause provided: “Whereas, it is necessary for the Revenue Commissioner to have full authority to collect the revenues derived from the excise tax on beer; and whereas, it is necessary for the rules and regulations required by Acts 1953, No. 179 to be promulgated by the Revenue Commissioner; now therefore, an emergency is hereby deemed to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage.”

3-7-401. Reports and payments.

The Director of the Alcoholic Beverage Control Division is authorized and directed to adopt and issue rules to protect the revenue of this state, prescribing a reporting method for paying and collecting the excise tax on beer.
The rules shall require the reports to be filed with the Alcoholic Beverage Control Division on or before the fifteenth day of the month following the month in which the wholesaler acquired possession of or title to the beer.
The reports required by the rules shall be in lieu of those provisions of § 3-7-106 relating to the necessity to obtain transportation permits for beer.
The reporting method and payment thereunder, within the time prescribed by this section and in the manner prescribed by the director, shall constitute a compliance as to sale, purchase, import, warehousing, transporting, and handling of beer, the transportation of beer in this state, and the obtaining of a permit prior to the transportation of beer into this state pursuant to § 3-7-106.

History. Acts 1953, No. 179, § 2; A.S.A. 1947, § 48-413; Acts 2019, No. 315, § 91.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a) and (b); and substituted “rules” for “regulations” in (c).

3-7-402. [Repealed.]

Publisher's Notes. This section, concerning bonds of wholesalers, was repealed by Acts 1991, No. 261, § 1. The section was derived from Acts 1953, No. 179, § 2; A.S.A. 1947, § 48-413.

3-7-403. Penalty for noncompliance.

If any licensee or permittee fails to file a report on the fifteenth day of each month as provided in § 3-7-401, the sum of five dollars ($5.00) for each day the licensee or permittee is in default shall be added to and become a part of the tax as an additional tax.
If any licensee or permittee fails to pay the excise tax within the time prescribed for payment by the Alcoholic Beverage Control Board, a penalty of five percent (5%) of the amount of the excise tax due shall be added to the tax.

History. Acts 1953, No. 179, § 3; A.S.A. 1947, § 48-414.

3-7-404. Rules.

The rules required by § 3-7-401 pertaining to a reporting method for paying and collecting excise tax on beer shall be adopted and promulgated by the Secretary of the Department of Finance and Administration.
The rules shall be jointly enforced by both the secretary and the Alcoholic Beverage Control Board.
The Director of the Alcoholic Beverage Control Division shall have authority to promulgate rules pertaining to the possession, transportation, or importation of beer into the State of Arkansas.
The express purpose of this section is to carry out the intention of §§ 3-7-401 — 3-7-403 to provide authority for protecting the state against loss of revenues derived from the levy of the excise tax on beer. The secretary shall have full authority to adopt whatever rules he or she may deem necessary to this end.

History. Acts 1953, No. 373, §§ 1-3; A.S.A. 1947, §§ 48-415 — 48-417; Acts 2019, No. 315, § 92; 2019, No. 910, § 3345.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules” throughout the section.

The 2019 amendment by No. 910 substituted “Secretary” for “Director” in (a), (b), and (d).

Cross References. Alcoholic Beverage Control Division, powers and duties, § 3-2-205.

Subchapter 5 — Wine

Cross References. Wine, tax rate, § 3-7-104.

Effective Dates. Acts 1969, No. 271, § 7: Mar. 18, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the alcoholic beverage laws of this state are not being adequately enforced; that there is a pressing need for additional personnel for the proper enforcement of these laws; and that only by the immediate passage of this act can the additional revenues be raised to employ the necessary additional personnel to properly enforce the alcoholic beverage laws of this state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall become effective from and after the passage and approval of this act.”

3-7-501. Rules generally.

The Secretary of the Department of Finance and Administration is authorized and directed to adopt and issue rules to protect the revenues of this state by prescribing a reporting method for paying and collecting the tax on wines.
Rules shall provide a method of tax credit for wines sold to United States military installations or returned to the manufacturer, on which excise taxes are not required.
There will be no change in the present system of reporting the tax on native Arkansas wines.

History. Acts 1971, No. 310, §§ 2-4; A.S.A. 1947, §§ 48-432 — 48-434; Acts 2019, No. 315, § 93; 2019, No. 910, § 3346.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “Rules” in the section heading and in (a); and substituted “Rules” for “Regulations” in (b).

The 2019 amendment by No. 910 substituted “Secretary” for “Director” in (a).

3-7-502. Reports and payment.

The rules shall require reports to be filed with the Secretary of the Department of Finance and Administration on or before the fifteenth day of the month following the month in which the wholesaler or importer of wines shall obtain delivery of wines from the supplier. The tax due shall accompany this report.

History. Acts 1971, No. 310, § 2; A.S.A. 1947, § 48-432; Acts 2019, No. 315, § 94; 2019, No. 910, § 3347.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in the first sentence.

The 2019 amendment by No. 910 substituted “Secretary” for “Director”.

3-7-503. [Repealed.]

Publisher's Notes. This section, concerning bonds of wholesalers or importers of wine, was repealed by Acts 1991, No. 261, § 1. The section was derived from Acts 1971, No. 310, § 2; A.S.A. 1947, § 48-432.

3-7-504. Penalties for noncompliance.

If any licensee or permittee shall fail to file the report and pay the taxes required by § 3-7-502 within the time provided herein, a penalty of five percent (5%) shall be added to the tax.
If the delinquency continues for more than thirty (30) days, the licensee or permittee shall be subject to the revocation or suspension of his or her permit, in addition to recovery of the taxes and penalty through his or her bond.

History. Acts 1971, No. 310, § 5; A.S.A. 1947, § 48-435.

Cross References. Revocation and suspension procedure generally, §§ 3-2-212 — 3-2-217.

3-7-505. Joint enforcement.

The Secretary of the Department of Finance and Administration and the Alcoholic Beverage Control Division or its successor agency shall jointly enforce the provisions of this subchapter.

History. Acts 1971, No. 310, § 6; A.S.A. 1947, § 48-436; Acts 2019, No. 910, § 3348.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

Research References

U. Ark. Little Rock L.J.

Stafford, Separation of Powers and Arkansas Administrative Agencies: Distinguishing Judicial Power and Legislative Power, 7 U. Ark. Little Rock L.J. 279.

3-7-506. Native wines.

All producers and manufacturers of native Arkansas wine shall report monthly on all sales made in Arkansas to Arkansas wholesalers, retailers, or consumers and shall remit the gallonage tax provided by law with the report. However, wine manufactured in Arkansas for export from the state shall not be subject to the gallonage tax upon domestic wine.
It shall not be necessary for producers or manufacturers to affix a tax stamp to individual bottles or containers, but they must indicate on the manufacturer's label on each bottle or container in an appropriate manner that the gallonage tax thereon has been paid.
All such gallonage tax shall continue to be general revenues and shall be deposited into the State Treasury and shall be credited to the respective funds and used for the respective purposes provided in the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1969, No. 271, §§ 3, 4; A.S.A. 1947, §§ 48-420, 48-421.

Chapter 8 Local Option

Research References

Am. Jur. 45 Am. Jur. 2d, Intoxicating Liquors, § 55 et seq.

C.J.S. 48 C.J.S., Intoxicating Liquors, § 92 et seq.

Subchapter 1 — General Provisions

Cross References. Enforcement of local option laws, § 3-3-301 et seq.

Effective Dates. Acts 1955, No. 15, § 4: Jan. 28, 1955. Emergency clause provided: “Whereas, under the present laws local option elections can be called and held at special elections; and, whereas these elections can be held on regular biennial general election days and thereby save the counties the expense of these elections; now, therefore it is determined by the General Assembly that an emergency is hereby declared to exist, and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after its passage and approval.”

3-8-101. When elections held.

Local option elections to determine the legality or illegality of the manufacture, sale, bartering, loaning, or giving away of intoxicating liquors shall be held only on the regular biennial November general election days.

History. Acts 1955, No. 15, § 1; A.S.A. 1947, § 48-824.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

Case Notes

Construction.

This section and Acts 1955, No. 15, § 2 prohibit special local option elections, but they do not repeal any part of Initiated Act No. 1 of 1942 or change local option elections into initiative acts. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956).

Cited: Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956); Countz v. Roe, 231 Ark. 108, 328 S.W.2d 353 (1959); Armstrong v. Sturch, 235 Ark. 571, 361 S.W.2d 77 (1962); Glover v. Russell, 260 Ark. 609, 542 S.W.2d 751 (1976).

3-8-102. Effect of dry vote — Retail dealers — Definition.

Retail dealers in alcoholic beverages shall be allowed a period of sixty (60) days in which to dispose of stock after the final determination of the results of local option election by which the political subdivision in which the dealer is located shall have voted against the manufacture and sale of alcoholic beverages.
During the sixty-day period defined in subsection (a) of this section, the retailer may not purchase any alcoholic beverages, but must restrict his or her business to the sale of those items on hand as of the date the election results are finally determined.
As used in this section, “final determination” means the date of certification of the results of an uncontested election or, if contested, the date of the issuance of the mandate by the court finally determining an election contest.

History. Acts 1957, No. 212, §§ 1-3; A.S.A. 1947, §§ 48-826 — 48-828.

Case Notes

Contest of Election.

Under §§ 3-8-301 — 3-8-310, 3-8-311 [repealed by Acts 2005, No. 1964], and 3-8-313 — 3-8-317, a contest of a local option election suspends the effective operation of the election, not only by the withholding of the certificate from the public records but also by the authorization of writs of supersedeas on appeal and there is nothing expressly or by implication in this section which repeals that contest procedure. Parker v. Hendriks, 239 Ark. 667, 393 S.W.2d 251 (1965).

Where the period allowed for appeal from dismissal of local option election contest had not expired, there was no “final determination” and chancery court lacked jurisdiction to determine effects of the election during that period and would be prohibited from doing so. Parker v. Rowan, 239 Ark. 929, 395 S.W.2d 338 (1965).

3-8-103. Effect of dry vote — Wholesalers and manufacturers.

It shall be lawful for any warehousing and office facility used by an authorized wholesaler of alcoholic beverages or manufacturing facility of a producer of native wines, or the manufacturing facility of a producer of beer, or the facilities of an alcoholic beverage distiller, blender, or rectifier, to continue in operation and to sell or give away, where previously authorized by law, such products in the facilities or existing restaurants appurtenant thereto, and utilized to promote the word-of-mouth advertising of such products, after the political subdivision in which such facility is located votes against the manufacture or sale of alcoholic beverages, provided that the facilities were in use or under construction for use prior to the filing of the petitions for local option election.
Sales from the establishment shall be limited to sales to authorized retailers or native wine wholesalers for resale in areas where the sale of alcoholic beverages is lawful.

History. Acts 1961, No. 206, §§ 1, 2; 1965, No. 492, § 1; 1979, No. 145, § 1; 1979, No. 1056, § 1; A.S.A. 1947, §§ 48-829, 48-830.

Publisher's Notes. Acts 1979, No. 1056, § 2, provided that § 1 of that act was amendatory to Initiated Act No. 1 of 1942, to the extent of permitting manufacturing facilities used to produce native wines or beer or to distill, blend, or rectify alcoholic beverages to continue to manufacture these products and to sell or serve the products produced at the facility to customers in any restaurant or other eating facility located on the premises in the event that the facility is located in an area which is voted dry in a local option election. However, the section further provided that this permission to continue business extended only to those facilities where the sale or service of the products was engaged in by the manufacturer at the time the initiated petitions calling for the local option election were filed.

Subchapter 2 — Proceedings Pursuant to Initiated Act

Cross References. Dry territories, § 3-3-301 et seq.

Effective Dates. Init. Meas. 1942, No. 1, § 8, Acts 1943, p. 998: Jan. 1, 1943.

Acts 1993, No. 826, § 5: Apr. 1, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly that prior to the effective date of Act 418 of 1983, county clerks were not required by law to officially notify the Alcoholic Beverage Control Division of the results of local option contests; thus, the Alcoholic Beverage Control Division was required to rely upon unofficial information prior to the effective date of Act 418 of 1983; that immediate passage of this act is necessary to eliminate confusion regarding permits issued by the Alcoholic Beverage Control Division. Therefore, an emergency is declared to exist and this act, being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effective from and after the date of its passage and approval.”

Case Notes

Constitutionality.

Sections 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209 are not an unconstitutional delegation of executive or legislative authority to the judiciary. Yarbrough v. Beardon, 206 Ark. 553, 177 S.W.2d 38 (1944).

Sections 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209 were not violative of the due process clause of the federal Constitution in that they make no provision for notice to interested parties so that they may appear and be heard, since sale of intoxicating liquors is a mere license or privilege granted by the state. Yarbrough v. Beardon, 206 Ark. 553, 177 S.W.2d 38 (1944).

Sections 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209 are not unconstitutional against contention that they were adopted when many electors were in the armed forces. Lienhart v. Burton, 207 Ark. 536, 181 S.W.2d 468 (1944).

In General.

Section 3-9-201 et seq. does not, either expressly, by implication, or by operable effect, amend or violate this subchapter. Morris v. Torch Club, Inc., 295 Ark. 461, 749 S.W.2d 319 (1988).

Failed Amendment.

Acts 1957, No. 359 did not receive the required two-thirds vote of all elected members of each house to amend Initiated Act No. 1 of 1942 so as to allow a municipality in a dry county to have a separate vote on the sale of beer in such municipality. Carter v. Reamey, 232 Ark. 211, 335 S.W.2d 298 (1960).

Implied Repeals.

Subchapter 3 of this chapter was not impliedly repealed by §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209. Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955).

Section 3-8-101 and Acts 1955, No. 15, § 2 prohibits special local option elections but do not repeal any part of Initiated Act No. 1 of 1942 or change local option elections into initiative acts. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956).

Local Option Elections.

Local liquor option elections are in the nature of referendum measures not initiated measures within the meaning of Ark. Const. Amend. 7. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956).

3-8-201. Definition.

As used in this subchapter, unless the context otherwise requires, “intoxicating liquor” includes any beverage containing more than one-half of one percent (0.5%) of alcohol by weight.

History. Init. Meas. 1942, No. 1, § 2, Acts 1943, p. 998; A.S.A. 1947, § 48-802.

Case Notes

Beer.

Sale of beer containing not more than 5% alcohol by weight in territory voting dry under this subchapter is a violation of § 3-3-208. Joy v. State, 211 Ark. 185, 199 S.W.2d 745 (1947).

Cited: McCurry v. Wilson, 226 Ark. 860, 294 S.W.2d 485 (1956); Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956); Baker v. Boone, 230 Ark. 843, 327 S.W.2d 85 (1959); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983); ABC Div. v. Barnett, 285 Ark. 189, 685 S.W.2d 511 (1985); E-Z Mart Stores, Inc. v. Kirksey, 885 F.2d 476 (8th Cir. 1989).

3-8-202. Sections 3-8-201 — 3-8-203, 3-8-205 — 3-8-209 cumulative — Construction.

It is expressly declared that §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209 shall be cumulative to the liquor laws now in force in this state. These sections shall at all times be construed so as to permit, upon petition of fifteen percent (15%) of the qualified electors in any area to be affected, the qualified voters therein at one (1) election to determine whether or not all alcoholic beverages, including all kinds and types of whiskey, beer, and wine, shall be manufactured or sold, bartered, loaned, or given away therein.

History. Init. Meas. 1942, No. 1, § 6, Acts 1943, p. 998; A.S.A. 1947, § 48-806.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

Case Notes

Cited: Taylor v. Spence, 224 Ark. 223, 272 S.W.2d 437 (1954); Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955).

3-8-203. Applicability of §§ 3-8-201 — 3-8-203, 3-8-205 — 3-8-209.

Nothing in §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209 is to be construed to affect manufacturers who sell their product exclusively to wholesalers.

History. Init. Meas. 1942, No. 1, § 2, Acts 1943, p. 998; Acts 1985, No. 266, § 2; A.S.A. 1947, § 48-802.

Case Notes

3-8-204. [Repealed.]

Publisher's Notes. This section, concerning petition procedure, was repealed by Acts 2013, No. 1432, § 1. The section was derived from Acts 1977, No. 341, §§ 1-3; A.S.A. 1947, §§ 48-801.1 — 48-801.3; Acts 1997, No. 449, § 1.

3-8-205. Determination of sufficiency of petition — Calling of election.

If the petition is determined to be sufficient under § 3-8-801 et seq., the county clerk shall certify that finding to the county board of election commissioners, and the question shall be placed on the ballot in the county, township, municipality, ward, or precinct at the next biennial general election as provided in § 3-8-101.
1. If an appeal is taken from the certification of the county clerk, it shall be taken within ten (10) days and shall be considered by the circuit court within ten (10) days, or as soon as practicable, after the appeal is lodged with the court.
2. The circuit court shall render its decision within thirty (30) days thereafter.
If an appeal is taken, the election shall be had no sooner than sixty-five (65) days after the appeal is determined, if the decision is in favor of the petitioners.
1. 1. The decision shall be certified immediately to the county board of election commissioners, and the day for the election shall be fixed by the county board of election commissioners for not earlier than sixty-five (65) days nor later than ninety (90) days after the certification of the decision of the circuit court.
  2. Any appeal from the final decision of the circuit court shall be taken within ten (10) days and shall be advanced and immediately determined by the Supreme Court.
2. In that event, the county board of election commissioners may, in its discretion, delay the election until after the final decision of the Supreme Court.
3. If the decision is in favor of the petitioners, then the county board of election commissioners shall set the day for the election, which shall be not earlier than sixty-five (65) days nor later than ninety (90) days after the final decision of the Supreme Court.
Except as provided in this section, a petition for local option election shall be governed by § 7-9-101 et seq. and the Disclosure Act for Initiative Proceedings, § 3-8-701 et seq.

History. Init. Meas. 1942, No. 1, §§ 1, 4, Acts 1943, p. 998; Acts 1985, No. 266, § 1; A.S.A. 1947, §§ 48-801, 48-804; Acts 1993, No. 243, § 1; 1997, No. 449, § 2; 1999, No. 637, § 1; 2007, No. 1049, § 2; 2013, No. 1432, § 2; 2015, No. 1251, § 1.

Amendments. The 2007 amendment substituted “no sooner than sixty-five (65)” for “within thirty (30)” in (d); and in (e), substituted “sixty-five (65)” for “twenty (20)” and “ninety (90)” for “thirty (30)” in (1)(A) and (3).

The 2013 amendment added (f).

The 2015 amendment deleted former (a) and redesignated the remaining subsections accordingly; and substituted “If the petition is determined to be sufficient under § 3-8-801 et seq.” for “If it is found that thirty-eight percent (38%) of the qualified electors have signed the petition” in present (a).

Research References

U. Ark. Little Rock L.J.

Heller and Sallings, Survey of Public Law, 3 U. Ark. Little Rock L.J. 296.

Case Notes

In General.

Proceeding for calling an election does not partake of the nature of an adversary proceeding such as is involved in an ordinary law suit but merely provides a method to determine the sentiment of the voters on the liquor question. Gocio v. Harkey, 211 Ark. 410, 200 S.W.2d 977 (1947).

Appeals.

Filing of motion to set aside order of county court calling a local option election in a township would neither interrupt nor toll the time allowed for appeal. Van Gundy v. Caudle, 206 Ark. 781, 177 S.W.2d 740 (1944).

Neither certiorari nor prohibition were proper writs to review order of county court calling a local option election, and filing of notice to apply for certiorari and prohibition would not extend time for taking appeal. Van Gundy v. Caudle, 206 Ark. 781, 177 S.W.2d 740 (1944).

The 10 day appeal period allowed by the statute is not unreasonable nor is it an infringement on due process of law. Covington v. Shackelford, 222 Ark. 374, 259 S.W.2d 676 (1953).

An appeal from a county court order for a local option election is not timely where filed more than 10 days after the judgment becomes final. Covington v. Shackelford, 222 Ark. 374, 259 S.W.2d 676 (1953).

The requirement of this section that an appeal be filed within 10 days with regard to the sufficiency of the number of signatures on a petition on a local option issue is not superseded by the 30-day period for an appeal contained in Rule 4(a) of the Rules of Appellate Procedure — Civil. Citizens for a Safer Carroll County v. Epley, 338 Ark. 61, 991 S.W.2d 562 (1999).

Supreme Court of Arkansas had appellate jurisdiction over an appeal of a circuit court order affirming the county clerk's determination that a local-option petition was insufficient to place on the ballot; the 10-day appeal period in subsection (b) of this section only applied when the county clerk had certified a petition and indicated that it would be placed on the ballot, and appellants had timely appealed under § 14-14-915. Keep Our Dollars in Independence Cnty. v. Mitchell, 2017 Ark. 154, 518 S.W.3d 64 (2017).

Disqualification of Court.

Where county judge and relatives within fourth degree of consanguinity sign petition for local option, remonstrators waive disqualification of the court under the constitutional provisions prohibiting any judge from presiding over a trial in which he is interested, if they proceed to trial without filing a motion for disqualification of the court. Nowlin v. Kreis, 213 Ark. 1027, 214 S.W.2d 221 (1948).

Local Option Elections.

Local liquor option elections are in the nature of referendum measures not initiated measures within the meaning of Ark. Const., Amend. 7. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956).

Petition.

—Certification.

Suit against county clerk and county board of election commissioners to compel certification of petitions for local option election which were filed more than 90 days before the election to be held in November should prevail since the initiative and referendum amendment to the Arkansas Constitution did not control the time within which petitions must be filed. Armstrong v. Sturch, 235 Ark. 571, 361 S.W.2d 77 (1962). But see Glover v. Russell, 260 Ark. 609, 542 S.W.2d 751 (1976).

—Signatures.

Written verification by the canvasser is not the only way of establishing the fact of signing. Tollett v. Knod, 210 Ark. 781, 197 S.W.2d 744 (1946).

Circuit court clearly erred by refusing to consider 720 signatures in its review of the county clerk's certification of a ballot-question committee's local-option petition; a circuit court is called upon to determine whether the petition is sufficient, meaning whether thirty-eight percent of the registered voters signed the petition, and, in that review, a circuit court has to consider the entire petition, which includes all of the signatures submitted to a county clerk with the petition. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

—Sufficiency.

Failure of signers of a local option election petition for a township to state their voting precinct was not a fatal defect where the township was not so large as to create doubt as to each signer's identity, and since there is no provision requiring signers to state their voting precincts. Taylor v. Spence, 224 Ark. 223, 272 S.W.2d 437 (1954).

Procedural deficiencies by the county clerk upon the proper filing of a local liquor option petition are not fatal when there is yet time in which the clerk may correct such deficiencies. Brown v. Davis, 226 Ark. 843, 294 S.W.2d 481 (1956).

A local liquor option petition is sufficient if it complies with this section and need not be in the form of an initiated county measure. McCurry v. Wilson, 226 Ark. 860, 294 S.W.2d 485 (1956).

Where local option election petition poses an issue on having hard liquor or complete prohibition in a county already committed to modified prohibition allowing sale of beer and light wines, it is not invalid because it offers no opportunity to vote for the current modified prohibition. McCurry v. Wilson, 226 Ark. 860, 294 S.W.2d 485 (1956).

Portion of petition setting out that it was “An act to legalize the manufacture, sale, bartering, lending, and giving away of intoxicating liquors within Bradley County, Arkansas,” was invalid due to the fact that there is a general state law which governs the manufacture and sale of intoxicating liquors and a county may not pass a local law while a general law covering the same subject matter is in effect. Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956).

Variance in language of petition by use of the word “lending” where this section says “loaning” did not affect the legality of the petition. Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956).

The inadequacy of petitions for election was cured by the verifications of the petition circulator which were added to the signatures after the petitions were filed, and by the circulator's testimony at trial. Lawson v. St. Francis County Election Comm'n, 309 Ark. 135, 827 S.W.2d 159 (1992).

Time of Elections.

This section and § 3-8-206 purposely omitted requirement that election should not be held within 30 days preceding or following regular political election. Mondier v. Medlock, 207 Ark. 790, 182 S.W.2d 869 (1944).

Cited: Eoff v. State, 218 Ark. 109, 234 S.W.2d 521 (1950); Glover v. Russell, 260 Ark. 609, 542 S.W.2d 751 (1976); Henard v. St. Francis Election Comm., 301 Ark. 459, 784 S.W.2d 598 (1990); Reichenbach v. Serio, 309 Ark. 274, 830 S.W.2d 847 (1992).

3-8-206. Conduct of election.

1. The county board of election commissioners of the particular county shall cause the question to be placed on the ballot at the general election in the following form:
2. Each elector shall be instructed on the ballot to vote FOR or AGAINST the question by placing an appropriate mark.
The county board of election commissioners shall count the votes cast on the question of the manufacture and sale of alcoholic beverages in the designated area and shall deliver its certificate declaring the result of the election, together with the election returns, within three (3) days after the date of the election, to the county clerk of the county.
Upon petition of twenty-five (25) interested legal voters in the territory affected, within ten (10) days after the date of the election, the county board of election commissioners shall immediately recount the votes and declare the result of the election as determined by such recount.
Within twenty (20) days after the election, the county court shall make and have entered of record its order declaring the result of the election.
The costs of any elections held under the provisions of this subchapter shall be paid by the county in the same manner as other costs of general elections.

“[ ] FOR the Manufacture or Sale of Intoxicating Liquors

[ ] AGAINST the Manufacture or Sale of Intoxicating Liquors”.

History. Init. Meas. 1942, No. 1, § 2, Acts 1943, p. 998; Acts 1985, No. 266, § 2; A.S.A. 1947, § 48-802; Acts 1997, No. 449, § 3.

Cross References. General election laws, § 7-1-101 et seq.

Case Notes

Certification of Results.

Certification of local option election returns by two commissioners instead of three, since one commissioner was away on personal business, did not invalidate certification. Bonds v. Rogers, 219 Ark. 319, 241 S.W.2d 371 (1951).

County court could not defeat the will of the voters by neglecting to timely declare the election results since the contestants were not prejudiced in any way by the court's neglect. Countz v. Roe, 231 Ark. 108, 328 S.W.2d 353 (1959).

Contest.

Where all of the alleged irregularities in local option liquor election contest were not sufficient to change the result of the election, the election would not be voided because of such alleged irregularities. Baker v. Hedrick, 225 Ark. 778, 285 S.W.2d 910 (1956).

Election Contests.

The county court has jurisdiction in contests of local option elections on the liquor question, and Acts 1955, No. 15, § 2 (superseded) did not have the effect of transferring such jurisdiction to the chancery court. Ward v. Boone, 231 Ark. 655, 331 S.W.2d 875 (1960).

The complaint stated a cause of action where it alleged that the returns as certified show there was a majority of only 41 votes in favor of the manufacture and sale of intoxicating liquors; that the returns as canvassed and certified contained errors in the canvass from four townships, sufficient to overcome the 41 vote majority. Ward v. Boone, 231 Ark. 655, 331 S.W.2d 875 (1960).

Failure to Open Polls.

Failure of one township in county-wide election on local option to open polls did not make election void where it was not shown that anyone was deprived of right to vote, or opening of polls was suppressed by force or fraud. Bonds v. Rogers, 219 Ark. 319, 241 S.W.2d 371 (1951).

Petition.

Circuit court did not err in finding substantial compliance with the statute and by not decertifying a local-option petition based on the absence of an enacting clause; local-option petition is not the sort of measure that requires the inclusion of an enacting clause, and such a proposal is demonstrably not an ordinance to which § 7-9-104(a) would strictly apply. Our Cmty., Our Dollars v. Bullock, 2014 Ark. 457, 452 S.W.3d 552 (2014).

Recount.

Absence of one commissioner during recount or appointment of another individual to assist in recount did not invalidate recount. Bonds v. Rogers, 219 Ark. 319, 241 S.W.2d 371 (1951).

Where the county election commissioners failed to recount the votes, even though contestants requested a recount in accordance with this section, contestants' remedy was by an action for mandamus against the county election commissioners, not by using such failure as a ground to contest the election in the courts. Countz v. Roe, 231 Ark. 108, 328 S.W.2d 353 (1959).

Time of Election.

This section and § 3-8-205 purposely omitted requirement that election should not be held within 30 days preceding or following regular political election. Mondier v. Medlock, 207 Ark. 790, 182 S.W.2d 869 (1944).

Vote Count.

Provision regulating voting at local option election that “The election commissioners shall count the votes” means that commissioners shall canvass the result as is done in general elections. Bonds v. Rogers, 219 Ark. 319, 241 S.W.2d 371 (1951) (decision prior to 1985 amendment).

Counting of ballots by judges and clerks before forwarding same to county election commissioners was proper since this section governing local option election stipulates that election shall be conducted in conformity with general election law, which provides for counting by judges and clerks. Bonds v. Rogers, 219 Ark. 319, 241 S.W.2d 371 (1951) (decision prior to 1985 amendment).

Cited: McCurry v. Wilson, 226 Ark. 860, 294 S.W.2d 485 (1956); Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956); Baker v. Boone, 230 Ark. 843, 327 S.W.2d 85 (1959); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983); ABC Div. v. Barnett, 285 Ark. 189, 685 S.W.2d 511 (1985); Doty v. Payne, 337 Ark. 326, 989 S.W.2d 159 (1999).

3-8-207. Mandamus of county officials.

Upon petition of ten (10) interested legal voters in the territory affected, filed with the circuit clerk of the county in which proceedings are pending, the circuit court shall immediately by mandamus compel the county court or other officials to perform the duties imposed upon them under the provisions of this subchapter. The circuit court shall be open at all times for the purposes of this subchapter.

History. Init. Meas. 1942, No. 1, § 5, Acts 1943, p. 998; A.S.A. 1947, § 48-805.

Case Notes

Applicability.

This section is intended to apply to matters relating to local option elections, such as the petition for an election, its conduct, and the certification of its results, and not to a mandamus proceeding seeking to void and rescind permits granted to private clubs under Acts 1969, No. 132. Kemp-Bradford VFW Post 4764 v. Wood, 262 Ark. 168, 554 S.W.2d 344 (1977).

Certification of Petition.

Suit against county clerk and county board of election commissioners to compel certification of petitions for local option election which were filed more than 90 days before the election to be held in November should prevail since the initiative and referendum amendment to the Arkansas Constitution had nothing to do with local option elections on the liquor question. Armstrong v. Sturch, 235 Ark. 571, 361 S.W.2d 77 (1962).

Recount.

Where the county election commissioners failed to recount the votes, even though contestants requested a recount in accordance with § 3-8-206, contestants' remedy was by an action for mandamus against the county election commissioners, not by using such failure as a ground to contest the election in the courts. Countz v. Roe, 231 Ark. 108, 328 S.W.2d 353 (1959).

3-8-208. Election results — Effects.

If the majority of the electors voting on the issue at the election vote for the manufacture or sale of intoxicating liquors, then it shall be lawful for the Director of the Alcoholic Beverage Control Division to continue to issue licenses or permits for such manufacture or sale within the designated territory as if no election had been held.
If a majority of the electors voting at the election vote against the manufacture or sale of intoxicating liquors, then it shall be unlawful for the director or any county or municipal official to issue any license or permit for the manufacture, sale, barter, loan, or giving away of any intoxicating liquor as defined in this subchapter unless and until the prohibition shall be repealed by a majority vote as provided for in §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209.
In either case, a period of at least four (4) years shall elapse before another election on the same subject may be held in the territory affected.
If a majority of electors voting on the issue at any such election vote against the manufacture or sale of intoxicating liquors, any license or permit which has already been issued, authorizing the manufacturing or sale or the bartering, loaning, or giving away of intoxicating liquor within the territory affected shall be immediately cancelled, and the unearned part of the license or permit fee shall be returned. It shall then be unlawful for any person, firm, or corporation to manufacture, sell, barter, loan, or give away any intoxicating liquor within the territory covered by the petition.

History. Init. Meas. 1942, No. 1, § 2, Acts 1943, p. 998; Acts 1985, No. 266, § 2; A.S.A. 1947, § 48-802.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

Case Notes

Effect of Vote.

General state law which governs the manufacture and sale of intoxicating liquors is held in abeyance when a county votes dry and is reactivated when a county votes wet. Grubbs v. Rowland, 226 Ark. 874, 296 S.W.2d 201 (1956).

Election Laws.

Petition.

Repeal of Prohibition.

The words “the prohibition” in subsection (b) of this section must be construed to be the prohibition voted in the designated territory; consequently, where a county-wide prohibition exists, only a county-wide election can repeal the prohibition. Denniston v. Riddle, 210 Ark. 1039, 199 S.W.2d 308 (1947).

Subsequent Elections.

The county was not precluded from holding an election within two years from local option election held in one township in the county. Yarbrough v. Beardon, 206 Ark. 553, 177 S.W.2d 38 (1944) (decision prior to 1985 amendment).

Where the petition filed with the county court was sufficient to require an election on the liquor issue and the county as a whole voted dry, no subdivision of the county could thereafter have a separate vote on the liquor question. Tabor v. O'Dell, 212 Ark. 902, 208 S.W.2d 430 (1948).

When an entire county has voted dry there can be no election in a city in such county to permit the sale, and Acts 1957, No. 359, which was not passed by the necessary two-thirds vote, could not authorize the holding of such an election contrary to the provisions of this section. Carter v. Reamey, 232 Ark. 211, 335 S.W.2d 298 (1960).

The interval of two (now four) years between local option elections required by this section superseded the three-year interval formerly required by Acts 1935, No. 108, Art. 7, § 12. Jones v. Etheridge, 242 Ark. 907, 416 S.W.2d 306 (1967) (decision prior to 1985 amendment).

Cited: McCurry v. Wilson, 226 Ark. 860, 294 S.W.2d 485 (1956); Baker v. Boone, 230 Ark. 843, 327 S.W.2d 85 (1959); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983); ABC Div. v. Barnett, 285 Ark. 189, 685 S.W.2d 511 (1985); E-Z Mart Stores, Inc. v. Kirksey, 885 F.2d 476 (8th Cir. 1989); Bryant v. Ruff, 303 Ark. 330, 798 S.W.2d 417 (1990).

3-8-209. Sales or furnishing place for sale in dry territory prohibited — Penalty.

Except as provided in § 3-5-1901 et seq., it is unlawful for a person, firm, or corporation to manufacture, sell, barter, loan, or give away intoxicating liquor in a county, township, municipality, ward, or precinct in which the manufacture or sale of intoxicating liquor is prohibited under Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209.
1. Upon a first conviction, any person or officers of any firm or corporation that shall manufacture, sell, barter, loan, or give away any intoxicating liquor in any territory which has been made dry under the provisions of this subchapter shall be guilty of a violation and shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
2. For a second conviction, he or she shall be guilty of a violation and fined not less than two hundred dollars ($200) nor more than two thousand dollars ($2,000), and for any subsequent conviction shall be guilty of a Class D felony.
Any person or officers of a firm or corporation that knowingly furnishes or rents a house, room, wagon, vehicle, or any conveyance or thing in which intoxicating liquor is manufactured or sold, bartered, loaned, or given away in violation of prohibition secured under the provisions of this subchapter is declared to be a particeps criminis and upon conviction shall be subject to the same punishment as the principal. The house, room, wagon, vehicle, conveyance, or other thing in which the intoxicating liquor is manufactured or sold, bartered, loaned, or given away shall be liable for all fines adjudged against either the principal or the particeps criminis, or both, as defined in this subsection.

History. Init. Meas. 1942, No. 1, § 3, Acts 1943, p. 998; A.S.A. 1947, § 48-803; Acts 2005, No. 1964, § 6; 2005, No. 1994, § 419; 2019, No. 681, § 2.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 2005, No. 1994. Subsection (b) of this section was also amended by Acts 2005, No. 1964, § 6, to read as follows:

“(b) Any person who or officers of any firm or corporation which shall manufacture, sell, barter, loan, or give away any intoxicating liquor in any territory which has been made dry under the provisions of this subchapter shall, upon first conviction, be deemed guilty of a violation and shall be fined not less than four hundred dollars ($400) or more than four thousand dollars ($4,000). For a second conviction, he or she shall be fined not less than eight hundred dollars ($800) or more than eight thousand dollars ($8,000); and for any subsequent conviction shall be guilty of a felony and shall be sentenced to not less than one (1) year nor more than five (5) years in the Department of Corrections.”

Publisher's Notes. Acts 1993, No. 1258, § 5, provided:

“Arkansas Code §§ 3-8-209, 3-8-311, 3-8-312, and 3-3-306 are repealed to the extent they conflict with this act.”

Amendments. The 2005 amendment, in (b), substituted “guilty of a violation” for “deemed guilty of a misdemeanor,” and “he or she shall be guilty of a violation and fined” for “he shall be fined,” inserted “Class D” and deleted “and shall be sentenced to not less than one (1) year nor more than five (5) years in the Department of Corrections. If any person so convicted is punished by a fine only, if such fine is not paid immediately, he shall be confined in the Department of Corrections at hard labor until such fine and costs are paid at the rate of two dollars ($2.00) per day” from the end.

The 2019 amendment, in (a), substituted “Except as provided in § 3-5-1901 et seq., it is” for “It shall be”, substituted “prohibited under” for “or shall be prohibited under the provisions of”; and made stylistic changes.

Cross References. Wine tasting events, § 3-5-104.

Case Notes

Beer.

Sale of beer containing not more than 5% alcohol by weight in territory voting dry under this subchapter is a violation of § 3-3-208. Joy v. State, 211 Ark. 185, 199 S.W.2d 745 (1947).

Election Contests.

During pendency of election contest wherein previously dry county had voted wet, the sale of beer was unlawful. Graham v. State, 240 Ark. 307, 399 S.W.2d 272 (1966).

Felony Convictions.

Defendant charged with committing third offense under this section is charged with a felony, which is a higher offense than that charged for first and second offense. Robbins v. State, 219 Ark. 376, 242 S.W.2d 640 (1951).

Information charging defendant with commission of felony in that he sold liquor for third time in dry territory must charge defendant generally with commission of two prior offenses, and conviction of defendant of a felony for third offense in selling liquor in dry territory was erroneous where information did not do so since defendant was convicted of higher offense than alleged as mere misdemeanor was charged. Robbins v. State, 219 Ark. 376, 242 S.W.2d 640 (1951).

A conviction upon a plea of guilty for the felony of the third offense of selling intoxicating liquor in a dry territory not based in the information on a charge of third offense or prior conviction or other allegation to notify the defendant exceeds the court's jurisdiction so that certiorari will lie to quash the judgment. Switzer v. Golden, 224 Ark. 543, 274 S.W.2d 769 (1955).

Instructions pertaining to felony provisions of this section were not improperly given. Wimberly v. State, 240 Ark. 345, 399 S.W.2d 274 (1966).

Where defendant had two previous convictions for illegal sale of intoxicating liquor, the requirement of statute making subsequent conviction a felony was met and conviction as “second offender” was not required before felony provision applied. Wimberly v. State, 240 Ark. 345, 399 S.W.2d 274 (1966).

Habeas Corpus.

Writ of habeas corpus was not the proper remedy where prisoner was convicted under § 3-3-205 for selling liquor in a dry territory covered by this section, since proper remedy was by appeal. Goodman v. Storey, 221 Ark. 308, 254 S.W.2d 63 (1952).

Penalties.

Imposition of fine and imprisonment was erroneous where language of indictment indicated offense was for selling liquor in dry territory instead of selling liquor without a license; hence defendant was subject only to a fine. Robbins v. State, 219 Ark. 664, 244 S.W.2d 156 (1951).

Cited: E-Z Mart Stores, Inc. v. Kirksey, 885 F.2d 476 (8th Cir. 1989).

3-8-210. Authority to continue to issue sale permits.

The Alcoholic Beverage Control Division shall have the authority to continue to issue permits for the sale of beer and of vinous, spirituous, and malt liquors in any political subdivision of the State of Arkansas of the same kind and type issued prior to July 4, 1996, provided that the electorate of such political subdivision has not since July 4, 1996, held an election under the provisions of Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209.

History. Acts 1993, No. 826, § 1; 1999, No. 632, § 1.

Subchapter 3 — Proceedings Pursuant to 1935 Act

Publisher's Notes. Initiated Act No. 1 of 1942 established a procedure for initiating and conducting local option elections which was different from that established in Acts 1935, No. 108, Art. 7. Section 6 of the 1942 act specifically provided that the act was cumulative to the liquor laws then in force in the state. Additionally, in Denniston v. Riddle, 210 Ark. 1039, 199 S.W.2d 308 (1947), Acts 1935, No. 108, was referred to in the construction of an election held under Initiated Act No. 1 of 1942.

Cross References. Dry territories, § 3-3-301 et seq.

Sale, etc., in dry territory, § 3-8-312.

Vinous, spirituous, and malt liquors defined, § 3-1-102.

Case Notes

Constitutionality.

This subchapter is not in conflict with constitutional provision setting forth procedure for initiated acts, since a petition for submission to the legal voters of the county of the question of the sale of liquor is in the nature of a referendum rather than an initiative petition. Johnston v. Bramlett, 193 Ark. 71, 97 S.W.2d 631 (1936).

This subchapter did not delegate the power to make a law but merely the power to ascertain certain facts upon which the law makes its action depend. Johnston v. Bramlett, 193 Ark. 71, 97 S.W.2d 631 (1936).

Where objectors appeared and filed objections to local option petitions, they could not contend this subchapter was unconstitutional in that it deprived them of their property without due process of law. Bennett v. Moore, 203 Ark. 511, 157 S.W.2d 515 (1942).

In General.

This subchapter was not repealed by subchapter 2 of this chapter. Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955).

Abatement of Nuisances.

State was not precluded from proceeding to abate defendant's liquor store as a public nuisance because other methods outlined under the Alcoholic Control Act, such as the revocation of the defendant's liquor license or holding of a local option election, might have been followed. Click v. State, 206 Ark. 648, 176 S.W.2d 920 (1944).

3-8-301. Exceptions from act.

The provisions of this act shall not apply to any manufacturer or wholesale dealer who, in good faith and in the usual course of trade, sells, by the wholesale, in quantities of not less than five gallons (5 gals.), delivered at one (1) time, not to be drunk on the premises. The provisions of this act shall not apply to dispensaries, hotels, restaurants, or clubs unless it is written in the petition, notice, and order for the election that provisions of this law and prohibition shall apply to dispensaries, hotels, restaurants, or clubs; if not so written, then licensed dispensaries, hotels, restaurants, or clubs may sell for medicinal purposes in the manner provided in this act.

History. Acts 1935, No. 108, Art. 7, § 7; Pope's Dig., § 14153; A.S.A. 1947, § 48-813.

3-8-302. [Repealed.]

Publisher's Notes. This section, concerning petition and order for election, was repealed by Acts 2013, No. 1432, § 3. The section was derived from Acts 1935, No. 108, Art. 7, § 1; Pope's Dig., § 14147; A.S.A. 1947, § 48-807.

3-8-303. Election costs deposited.

The county court shall not make the order for the election until the persons signing the petition have deposited with the county judge, in money, an amount sufficient to pay for printing or posting advertisements as provided for, and the fees of the clerk making entries in the order book.

History. Acts 1935, No. 108, Art. 7, § 9; Pope's Dig., § 14156; A.S.A. 1947, § 48-815.

3-8-304. [Repealed.]

Publisher's Notes. This section, concerning notice and conduct of election, was repealed by Acts 2013, No. 1432, § 4. The section was derived from Acts 1935, No. 108, Art. 7, § 2; Pope's Dig., § 14148; A.S.A. 1947, § 48-808.

3-8-305. Elections for entire county, district, or city — Effect.

1. No election in any town, city, district, or precinct of a county shall be held under this subchapter on the same day on which an election for the entire county is held.
2. When an election is held in an entire county and a majority of the legal votes cast at the election are against the sale, barter, or loan of spirituous, vinous, malt, or other intoxicating liquors, then it shall not be lawful to sell, barter, or loan any liquors in any portion of the county.
3. If, at an election for the entire county, the majority of the legal votes cast are in favor of the sale, barter, or loan of any liquors, the election shall not operate to make it legal to grant license to sell, barter, or loan such liquors in any territorial division of the county from which the sale, barter, or loan has been excluded by an election held under this subchapter, but the status of the territorial division shall remain as if no election had been held.
1. No election shall be held in any election precinct under this act on the same day on which an election is held for the district or city of which the precinct is a part.
2. If, at an election held for the entire district or city, the majority of legal votes cast shall be in favor of the sale, barter, or loan of spirituous, vinous, malt, or other liquors, then the status in the several precincts thereof shall remain as it was before the election.
3. If the majority should be against the sale, then the sale, barter, or loan of such liquors shall be unlawful in every portion of the district or city.

History. Acts 1935, No. 108, Art. 7, § 10; Pope's Dig., § 14157; A.S.A. 1947, § 48-816.

Meaning of “this act”. See note to § 3-8-301.

Case Notes

Contemporaneous Elections.

A violation of this section might void the precinct election held contemporaneously with a county-wide election, but it would have no effect on the validity of a county-wide election. Countz v. Roe, 231 Ark. 108, 328 S.W.2d 353 (1959).

Proof of Status.

Where challengers failed to offer any proof of the status of county liquor law at the time of the local option election, they did not establish that the absence of a countywide election entitled them to relief. Bates v. Mikles, 309 Ark. 551, 832 S.W.2d 225 (1992).

Subsequent Elections.

Once a county votes “dry,” no part of the county can have a separate local option election independent of the entire county. Denniston v. Riddle, 210 Ark. 1039, 199 S.W.2d 308 (1947); Bates v. Mikles, 309 Ark. 551, 832 S.W.2d 225 (1992).

In a “wet” county, an enumerated subdivision of the county may vote itself “dry,” and only a subsequent vote by that subdivision can affect the status of the subdivision's liquor law. Bates v. Mikles, 309 Ark. 551, 832 S.W.2d 225 (1992).

3-8-306. Certificate of election results.

If it shall be found that a majority of the legal votes cast at any election provided for in this subchapter were given for or against the manufacture, sale, barter, loan, or giving away of any intoxicating liquors in the county, city, town, district, or precinct, it shall be the duty of the county board of election commissioners to certify that fact. The certificate shall be delivered to the clerk of the county court with a map or plat of the area covered by the election results and safely kept by him or her until the next regular term of the county court.
At the next regular term, the judge of the county court shall have the certificate spread upon the record of his or her court.
The entry of the certificate in the record or a certified copy thereof shall be prima facie evidence in any or all proceedings under this act.
When the local option results have been spread of record by the county clerk, the county clerk shall notify the Alcoholic Beverage Control Division of the results of the local option elections within thirty (30) days after the certificate has been spread of record. The notification submitted to the division shall include a certified copy of the election results and a map or plat of the area covered by the election results.

History. Acts 1935, No. 108, Art. 7, § 3; Pope's Dig., § 14149; Acts 1983, No. 418, § 1; A.S.A. 1947, § 48-809.

Meaning of “this act”. See note to § 3-8-301.

Research References

ALR.

Validity, Construction and Application of State Statutory Limitations Periods Governing Election Contests. 60 A.L.R.6th 481.

Case Notes

Delivery to Clerk.

The statutes do not require county judge approval to effect certification of election results but only delivery to the county clerk. Lawson v. St. Francis County Election Comm'n, 309 Ark. 135, 827 S.W.2d 159 (1992).

Cited: Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955); Parker v. Hendriks, 239 Ark. 667, 393 S.W.2d 251 (1965); Armstrong v. Sims, 715 F. Supp. 1440 (E.D. Ark. 1989).

3-8-307. Effect of vote against sale.

If, at any election provided for in this act, a majority of the legal votes cast are against the sale, barter, or loan of spirituous, vinous, or malt liquors, then the sale, barter, or loan of any such liquors shall be unlawful in such county, city, town, district, or precinct, as the case may be, except as provided, unless at a subsequent election held under this act, a majority of the legal votes cast shall be in favor of the sale of the liquors.

History. Acts 1935, No. 108, Art. 7, § 11; Pope's Dig., § 14158; A.S.A. 1947, § 48-817.

Meaning of “this act”. See note to § 3-8-301.

Case Notes

Subsequent Election.

Once an entire county has voted to be “dry,” no portion of the county may hold an independent local option election. Bates v. Mikles, 309 Ark. 551, 832 S.W.2d 225 (1992).

3-8-308. Applicability of election laws — Violations.

If, at any election provided for in this act, any person shall vote who is not entitled to vote under the laws of this state at elections for county officers, he or she shall be punished as for a violation of the general laws on elections.
All general laws to protect the purity of elections shall be applicable to this act.

History. Acts 1935, No. 108, Art. 7, § 11; Pope's Dig., § 14158; A.S.A. 1947, § 48-817.

Meaning of “this act”. See note to § 3-8-301.

3-8-309. Contests of elections.

Any election held under this act may be contested as provided for in this section.
1. Any number of the citizens and legal voters, but not less than ten (10), of the county, city, town, district, or precinct in which the elections have been held, shall have the right to contest any election held under this act and shall be designated the contestants.
2. The contestants shall file, within ten (10) days after the final action of the examining board, in the office of the clerk of the county court a written statement of the grounds of the contest. They shall cause a copy of the statement to be served on the county judge and shall give notice thereof by written or printed notice to be posted at the courthouse door of the county, and in three (3) or more public places in the county, city, town, district, or precinct in which the election has been held. They shall cause the notice to be published in some newspaper of the county, when possible, for two (2) consecutive issues, commencing not later than the first issue of the paper after filing the statement.
3. When a notice of the contest shall be executed on the county judge, the certificate shall not be recorded.
Any number of the citizens and legal voters, not less than ten (10), of the county, city, town, district, or precinct in which the election has been held, may resist the contest by filing in the office of the clerk of the county court a statement controverting the grounds of the contestants and may state any additional grounds to sustain the election, and they shall be designated as the contestees.
The contest shall be heard and determined by the same board which, by law, is authorized and empowered to hear and determine a contest of an election for county officers. The same provisions of the statutes shall apply to the contest of any election held under this act as are provided for the contest of any election for county officers, except as provided in this section.
Notice for the taking of depositions or other proceedings in the contest may be executed on the person whose name appears first as contestant or contestee, which shall be deemed notice to all his or her associates.
In case the required number shall fail to appear as contestees, ex parte testimony shall be competent before the contesting board.
The trial of the case shall be on the fourth Monday after the filing in the county clerk's office of the grounds of the contest; however, the board, for good cause, may allow further time.
The decision of the board shall be given in writing and signed in triplicate. One (1) copy shall be delivered to the contestants and one (1) copy to the contestees, and the other shall be delivered to the county clerk of the county in which the contest is pending, which shall be entered on the record of the county court.
If the decision of the board is that a majority of the legal votes cast at the election were against the sale of such liquors, the entry of the decision shall have the same effect as the recording of the certificates of the examining board as provided in § 3-8-306.
The contestants or contestees shall have the right to appeal from the decision of the board to the circuit court of the county where the contest is pending, in the same way as appeals are taken from the lower courts to the circuit court. An appeal from the circuit court may be taken as provided by law.
The cost of the contest shall be adjudged against the unsuccessful parties.

History. Acts 1935, No. 108, Art. 7, §§ 14-16; Pope's Dig., §§ 14161-14169; A.S.A. 1947, §§ 48-820 — 48-822.

Meaning of “this act”. See note to § 3-8-301.

Research References

ALR.

Validity, Construction and Application of State Statutory Limitations Periods Governing Election Contests. 60 A.L.R.6th 481.

Case Notes

Appeal.

The effect of the election was suspended upon appeal from contest of local option election. Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955).

Evidence.

This section contemplates proof even where there are no contestees. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Jurisdiction.

Contest of the result of local option election came under statutes providing for contest of any election and should have been brought in circuit court instead of county court. Henderson v. Anderson, 251 Ark. 724, 475 S.W.2d 508 (1972).

Subsection (d) of this section provides that local option election contest is to be heard by same “board” that is authorized by law to hear a contest of an election for county officers; “board” now means circuit court. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Nature of Proceedings.

Local option election contest is a special proceeding; it is not necessary that all of the rules of civil procedure be applied. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Standing.

Election commissioner had standing to resist election contest. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Sufficiency of Petition.

A petition for contest of local option election which contained conclusions of law that illegal votes were cast but did not specifically identify any allegedly illegal vote or voter was insufficient. Craig v. Barron, 225 Ark. 433, 283 S.W.2d 127 (1955).

Time of Filing.

Where petition for contest of local option liquor election was filed with county board of election commissioners within the statutory period after the declaration of the results of the election but supplementary petition asking the county court to take jurisdiction of the case was not filed until after the expiration of the period, the petition was not properly filed within the time allowed by law. Craig v. Barron, 225 Ark. 433, 283 S.W.2d 127 (1955).

An election contest petition may not be amended by setting out more specifically the illegal votes complained of after the expiration of the time limit for the filing of the petition. Jones v. Etheridge, 242 Ark. 907, 416 S.W.2d 306 (1967).

Phrase “within 10 days after the final action of the examining board” in subdivision (b)(2) of this section means within 10 days after the certification of vote. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Trial court erred in refusing to dismiss complaint due to its untimely filing. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

—Answer.

This section does not set a specific number of days for the filing of an answer; trial court may permit an answer at any time between prompt filing and expedited trial. Garrett v. Andrews, 294 Ark. 160, 741 S.W.2d 257 (1987), cert. denied, 487 U.S. 1219, 108 S. Ct. 2873, 101 L. Ed. 2d 908 (1988).

Cited: Ward v. Boone, 231 Ark. 655, 331 S.W.2d 875 (1960); Parker v. Hendriks, 239 Ark. 667, 393 S.W.2d 251 (1965); Parker v. Rowan, 239 Ark. 929, 395 S.W.2d 338 (1965); Wurst v. Lowery, 286 Ark. 474, 695 S.W.2d 378 (1985); Lawson v. St. Francis County Election Comm'n, 309 Ark. 135, 827 S.W.2d 159 (1992).

3-8-310. Effect of voting for or against sale — Penalty for unlawful sales.

1. Whenever a local option election shall be held in any county, city, town, district, or precinct in this state and a majority of the votes cast at the election shall be in favor of prohibiting the sale of liquor in the territory in which the election shall have been held, the law prohibiting the sale shall be in full force and effect at the expiration of sixty (60) days from the date of the entry of the certificate of the canvassing board in the record of the county court.
2. After the expiration of sixty (60) days, no liquor license theretofore issued in the territory under the laws of this state shall be of any force or effect whatever, but the owner of the license shall be entitled to recover from the county, city, town, district, or precinct to which the license money was paid, the proportional part thereof as the unexpired period of license bears to the whole of the year.
1. Upon conviction, any person who shall sell, barter, or loan directly or indirectly any such liquors in the city, county, town, district, or precinct after sixty (60) days shall be guilty of a Class C misdemeanor.
2. Upon conviction, any person who knowingly furnishes or rents a house, room, wagon, or any conveyance or thing in which spirituous, vinous, or malt liquors are sold, bartered, or loaned, in violation of this act, shall be guilty of a violation and fined not less than sixty dollars ($60.00) nor more than one hundred dollars ($100). The house, wagon, vehicle, or other thing in which the liquors were sold, bartered, or loaned shall be liable for all fines adjudged against the person selling, bartering, or loaning the same.
In the event that a majority of the votes cast at the election shall be in favor of the sale of liquors, then no license shall be granted to any person, firm, or corporation to sell such liquors in the territory until after the expiration of the aforesaid sixty (60) days, if the issuing of the liquor license was in that territory prohibited by law prior to the holding of the election.

History. Acts 1935, No. 108, Art. 7, § 4; Pope's Dig., § 14150; A.S.A. 1947, § 48-810; Acts 2005, No. 1964, § 7; 2005, No. 1994, § 406.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 2005, No. 1994. This section was also amended by Acts 2005, No. 1964, § 7, to read as follows:

“Effect of voting for or against sale.

(a)(1) Whenever a local option election shall be held in any county, city, town, district, or precinct in this state and a majority of the votes cast at the election shall be in favor of prohibiting the sale of liquor in the territory in which the election shall have been held, the law prohibiting the sale shall be in full force and effect at the expiration of sixty (60) days from the date of the entry of the certificate of the canvassing board in the record of the county court.

“(2) After the expiration of sixty (60) days, no liquor license previously issued in the territory under the laws of this state shall be of any force or effect, but the owner of the license shall be entitled to recover from the county, city, town, district, or precinct to which the license money was paid, the proportional part of the money as the unexpired period of license bears to the whole of the year.

“(b) In the event that a majority of the votes cast at the local option election shall be in favor of the sale of liquors, then no license shall be granted to any person, firm, or corporation to sell the liquors in the territory until after the expiration of the sixty-day period under subsection (a) of this section, if the issuing of the liquor license was in that territory prohibited by law prior to the holding of the election.”

Amendments. The 2005 amendment substituted “guilty of a Class C misdemeanor” for “fined not less than sixty dollars ($60.00) nor more than one hundred dollars ($100) and be confined in the county jail for not less than twenty (20) nor more than forty (40) days for each offense” in (b)(1); and inserted “guilty of a violation and” in (b)(2).

Meaning of “this act”. See note to § 3-8-301.

Case Notes

Beer.

Where city voted dry, the sale of beer with an alcoholic content of not more than 5% was also prohibited, notwithstanding the definitions contained in § 3-1-102. McKeown v. State, 197 Ark. 454, 124 S.W.2d 19 (1939).

Cited: Hedrick v. Hickman, 225 Ark. 273, 280 S.W.2d 406 (1955); Parker v. Hendriks, 239 Ark. 667, 393 S.W.2d 251 (1965).

3-8-311. [Repealed.]

Publisher's Notes. This section, concerning the penalties for sale, barter or loan in dry territory, was repealed by Acts 2005, No. 1964, § 8. The section was derived from Acts 1935, No. 108, Art. 7, §§ 5, 6; Pope's Dig., §§ 14151, 14152; A.S.A. 1947, §§ 48-811, 48-812.

The amendment to this section by Acts 2005, No. 1994, § 407 was superseded by the repeal of this section by Acts 2005, No. 1964, § 8. As amended by Acts 2005, No. 1994, § 407, this section read:

“(a)(1) It shall be unlawful for anyone to sell, barter, or loan, directly or indirectly, any beverage containing any alcohol or any liquid mixture or decoction of any kind which produces or causes intoxication in any county, city, town, district, or precinct in which the sale, barter, or loan of spirituous, vinous, or malt liquors is or shall be prohibited in accordance with the local option law.

“(2) Any sale, barter, or loan of any article with the agreement, expressed or implied, that the right or title to or possession of any such beverage, liquid mixture, or decoction shall also pass, shall be considered a sale, barter, or loan within the terms of this subsection.

“(3) Any person who shall sell, barter, or loan, directly or indirectly, any such beverage, liquid mixture, or decoction in any such county, city, town, or precinct, shall, upon conviction, be guilty of a violation and fined the sum of not less than twenty dollars ($20.00) nor more than one hundred dollars ($100) for each offense.

“(b) It shall be unlawful for any person to sell, lend, give, procure for, or furnish to another, any spirituous, vinous, or malt liquors, or to have in his or her possession spirituous, vinous, or malt liquors, for the purpose of selling them in any territory where this act is in force. Any person so offending shall be guilty of a Class C misdemeanor.

“(c) The possession of a United States special tax stamp commonly called United States license for carrying on the business of a retail dealer in spirituous, vinous, or malt liquors, or the having of the tax permit issued by the Director of the Department of Finance and Administration or license at the place of business in the territory shall be prima facie evidence of guilt under this section.

“(d) Nothing herein shall prohibit the sale, barter, loan, or having in the custody or possession of any person any beverage, liquid mixture, or decoction for the sale of which the United States does not require the payment of the special tax on retail liquor dealers.”

3-8-312. Sale, barter, or possession for sale or barter in dry area — Penalties.

It shall be unlawful for any person, firm, or corporation to sell or barter, or possess for purposes of sale or barter, any intoxicating liquor or beverage in any county, township, municipality, ward, or precinct in which the sale or barter of intoxicating liquor or beverage is or shall be prohibited by law.
1. Upon first conviction, any person or officers of any firm or corporation that shall do so shall be guilty of a violation and shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000).
2. The person or officers of a firm or corporation for a second conviction shall be guilty of a violation and fined not less than two hundred dollars ($200) nor more than two thousand dollars ($2,000).
3. For any subsequent conviction, the person or officers of a firm or corporation shall be guilty of a Class D felony.
The defendant shall be specifically charged with violating the felony provision of this section.
Bond forfeitures under this section or any statute or municipal ordinance of this state prohibiting the unlawful sale or barter or possession for sale or barter of any intoxicating liquor or beverage shall be considered as a conviction in determining whether or not the defendant is properly charged with a second offense or a felony as set out in this section.

History. Acts 1953, No. 395, § 1; A.S.A. 1947, § 48-811.1; Acts 2005, No. 1964, § 9; 2005, No. 1994, § 420.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 2005, No. 1994. Subsection (b) of this section was also amended by Acts 2005, No. 1964, § 9, to read as follows:

“Any person, or officers of any firm or corporation, who violates subsection (a) of this section shall upon first conviction be deemed guilty of a violation and shall be fined not less than four hundred dollars ($400) or more than four thousand dollars ($4,000). The person or officers of a firm or corporation for a second conviction shall be fined not less than eight hundred dollars ($800) or more than eight thousand dollars ($8,000). For any subsequent conviction, the person or officers of a firm or corporation shall be deemed guilty of a felony and shall be sentenced to not less than one (1) year nor more than five (5) years in the Department of Corrections.”

Publisher's Notes. This section may affect §§ 3-3-205(a) and 3-3-301 et seq.

This section may be affected by § 3-8-103.

Acts 1993, No. 1258, § 5, provided:

“Arkansas Code §§ 3-8-209, 3-8-311, 3-8-312, and 3-3-306 are repealed to the extent they conflict with this act.”

Amendments. The 2005 amendment substituted “violation” for “misdemeanor,” in (b)(1); inserted “guilty of a violation and” in (b)(2); inserted “Class D” and deleted “and shall be sentenced to not less than one (1) year nor more than five (5) years in the Department of Corrections” from the end.

Cross References. Wine tasting events, § 3-5-104.

Case Notes

Evidence.

Evidence given by the arresting officers that they determined from the smell of the alleged liquor that it was intoxicating liquor, was competent and its weight a question for the jury. Burke v. State, 235 Ark. 882, 362 S.W.2d 695 (1962), cert. denied, 373 U.S. 922, 83 S. Ct. 1523, 10 L. Ed. 2d 421 (1963).

Felony Convictions.

Defendant whose prior convictions preceded passage of this section held properly charged under the felony provisions of this section. Burke v. State, 235 Ark. 882, 362 S.W.2d 695 (1962), cert. denied, 373 U.S. 922, 83 S. Ct. 1523, 10 L. Ed. 2d 421 (1963).

Search and Seizure.

In answer to defendant's contention that evidence was obtained by illegal search in that it was obtained by search without a warrant, the testimony of the arresting officers added up to probable cause for the search. Burke v. State, 235 Ark. 882, 362 S.W.2d 695 (1962), cert. denied, 373 U.S. 922, 83 S. Ct. 1523, 10 L. Ed. 2d 421 (1963).

Cited: Mann v. Heber Springs, 239 Ark. 969, 395 S.W.2d 557 (1965); Stewart v. State, 240 Ark. 701, 402 S.W.2d 116 (1966); Clark v. State, 246 Ark. 1151, 442 S.W.2d 225 (1969).

3-8-313. Indictment.

In an indictment for a violation of any provision of this act or for a violation of any act amendatory hereof, it shall not be necessary to allege that a vote was taken or any election held, or any other step relative thereto.
It may be simply stated that the act or acts charged were committed in a territory where this act was in force, and in the indictment it shall be sufficient to designate this act as the local option law.

History. Acts 1935, No. 108, Art. 7, § 6; Pope's Dig., § 14152; A.S.A. 1947, § 48-812.

Meaning of “this act”. See note to § 3-8-301.

3-8-314. Bond for multiple violations.

On the second or any subsequent conviction for a violation of this act or any of its amendments, the court shall require the defendant to execute bond in the sum of two hundred dollars ($200) to be of good behavior for the period of twelve (12) months.
The court may, in its discretion, increase the amount of the bond. If the bond is not given, the defendant shall be committed to the county jail for a period not exceeding ninety (90) days, to be fixed by the court.

History. Acts 1935, No. 108, Art. 7, § 6; Pope's Dig., § 14152; A.S.A. 1947, § 48-812.

Publisher's Notes. Section 3-3-103 also requires bonds for multiple offenses.

Meaning of “this act”. See note to § 3-8-301.

3-8-315. C.O.D. shipments.

All the shipments of spirituous, vinous, or malt liquors to be paid for on delivery, commonly called “C.O.D. shipments”, into any county, city, town, district, or precinct where this act is in force shall be unlawful and shall be deemed sales of such liquors at the place where the money is paid or the goods delivered.
The carrier and his or her agents selling or delivering such goods shall be liable jointly with the vendor thereof.

History. Acts 1935, No. 108, Art. 7, § 6; Pope's Dig., § 14152; A.S.A. 1947, § 48-812.

Meaning of “this act”. See note to § 3-8-301.

3-8-316. Act given in charge to grand jury.

It shall be the duty of the judges of the circuit courts to give this act in charge to the grand juries of the counties within their jurisdiction.

History. Acts 1935, No. 108, Art. 7, § 13; Pope's Dig., § 14160; A.S.A. 1947, § 48-819.

Meaning of “this act”. See note to § 3-8-301.

Research References

Ark. L. Rev.

Gingerich, The Arkansas Grand Jury, etc., 40 Ark. L. Rev. 55.

3-8-317. Wholesale of intoxicating liquor in prohibited territory.

1. It shall be unlawful to sell by wholesale any spirituous, vinous, malt, or other intoxicating liquor, regardless of the name by which it is called, except manufacturers selling liquor of their own make at the place of manufacture to a wholesale dealer or a licensed retail dealer, in any county, city, town, district, or precinct where the sale of liquor has been prohibited by vote of the people under the local option law.
2. 1. A licensed wholesaler may maintain an alcoholic beverage storage facility in a county, city, town, district, or precinct where the sale of liquor has been prohibited when the storage facility is located in the same county as the wholesaler's licensed distributorship.
  2. A storage facility permitted under subdivision (a)(2)(A) of this section is subject to inspection and approval of the Alcoholic Beverage Control Division.
Any person violating this act shall be deemed guilty of violating the local option law and shall be subject to trial and punishment according to the provisions of the local option law and its amendments.

History. Acts 1935, No. 108, Art. 7, § 8; Pope's Dig., § 14154; A.S.A. 1947, § 48-814; Acts 2013, No. 305, § 1.

Amendments. The 2013 amendment added (a)(2).

Meaning of “this act”. See note to § 3-8-301.

Subchapter 4 — Beer and Light Wine

3-8-401. Beer and light wine.

At each general election for state and county offices, there may be submitted to the qualified electors of any county in the State of Arkansas so desiring, in the manner provided for the submission in a county of the question under the initiative and referendum provisions of the Constitution and laws of the State of Arkansas, the question as to whether the sale of beer and light wine containing alcohol not in excess of five percent (5%) by weight shall or shall not be permitted within the county for two (2) years in case the matter is voted on at a general election.
In voting upon the question, the electors shall have printed or written upon their ballot, “FOR the sale of beer and light wines” or “AGAINST the sale of beer and light wines”.
The election shall be held at the same time and place and in the same manner as other elections. All returns shall be canvassed, sealed, and forwarded by the officers of the election to the county board of election commissioners of the county voting thereon.
The board shall canvass the votes and certify the results thereof to the clerk of the circuit court of the county to be by him or her filed in his or her office, which certificate shall be prima facie evidence of the legal or illegal sale of beer and light wine in the county.
Each and every county voting against the sale of beer and light wine shall not participate in any revenue for school purposes levied and collected under § 3-5-205 during the time the county or counties prohibited the sale of the beer and light wine.
The expense of the election shall be borne by the petitioners calling the election.

History. Acts 1933 (1st Ex. Sess.), No. 7, § 27-A; Pope's Dig., § 14220; A.S.A. 1947, § 48-518.

Publisher's Notes. This section originally applied to beer and light wines of an alcoholic content not in excess of 3.2% by weight. Pursuant to § 3-1-103, this section was made to apply to malt and vinous beverages having an alcoholic content of not more than 5% by weight.

Case Notes

Cited: McKeown v. State, 197 Ark. 454, 124 S.W.2d 19 (1939).

Subchapter 5 — Petition for Local Option Elections

3-8-501. Definitions.

As used in this subchapter:

“Dry” means that the manufacture, sale, barter, loan, or giving away of intoxicating liquors is unlawful in a prescribed area;
“Intoxicating liquors” means all beverages containing more than one-half of one percent (0.5%) of alcohol by weight; and
“Wet” means that the manufacture, sale, barter, loan, or giving away of intoxicating liquors is lawful in a prescribed area.

History. Acts 2005, No. 1258, § 1.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

3-8-502. Local option elections in certain annexed areas.

1. 1. If an area meets the qualifications provided in subdivision (a)(1)(B) of this section, the residents of the area may petition the county clerk of the county for a local option election to determine whether off-premises retail beer permits and off-premises Arkansas native wine retail permits shall be issued within the annexed area.
  2. An area qualifies to hold a local option election under this subchapter if:
    1. The area has been annexed from a dry township into a wet contiguous and adjoining city or incorporated town;
    2. The annexed area is separated from the remainder of the dry township by a four-lane divided highway; and
    3. A nonbinding election was held between November 1, 2004, and January 1, 2005, in the annexed area on the issue of whether intoxicating liquors may be manufactured, sold, bartered, loaned, or given away within the annexed area.
2. The petition requesting a local option election shall be prepared in the manner provided by § 3-8-205.
3. 1. When thirty-eight percent (38%) of the qualified electors of the annexed area, as shown on county voter registration records, sign a petition requesting a local option election, the county clerk shall determine the sufficiency of the petition within ten (10) days of the filing of the petition.
  2. If the county clerk verifies that thirty-eight percent (38%) of the qualified electors of the annexed area have signed the petition, the county clerk shall certify that finding to the county board of election commissioners.
  3. The question shall be placed upon the ballot in the annexed area at the next biennial November general election, as provided in § 3-8-101.
  4. Any appeal of the order of the county court shall be taken in the manner provided by § 3-8-205(c)-(e).
4. 1. The election shall be conducted in the manner provided by § 3-8-206(a) and (b).
  2. Upon petition of fifteen percent (15%) of the interested legal voters in the annexed area, within ten (10) days after the date of the election, the county board of election commissioners shall immediately recount the votes and declare the result of the election as determined by the recount.
  3. Within twenty (20) days after the election, the county court shall make and enter of record its order declaring the result of the election.
  4. The costs of any elections held under this subchapter shall be paid by the county in the same manner as other costs of general elections.
5. Upon petition of fifteen percent (15%) of the interested legal voters in the annexed area filed with the circuit clerk of the county in which proceedings are pending, the circuit court shall immediately by mandamus compel the county court or other officials to perform the duties imposed upon them under this section.
1. If, at the local option election, a majority of the electors of the annexed area vote for the issuance of off-premises retail beer permits and off-premises Arkansas native wine retail permits within the annexed area, the Director of the Alcoholic Beverage Control Division may issue off-premises retail beer permits and off-premises Arkansas native wine retail permits within the annexed area.
2. If a majority of the electors of the annexed area vote against the issuance of off-premises retail beer permits and off-premises Arkansas native wine retail permits, it shall be unlawful for the director or any county or municipal officer to issue any off-premises retail beer permit or off-premises Arkansas native wine retail permit until the prohibition shall be repealed by a majority vote as provided in this section.
3. At least four (4) years shall elapse before another local option election may be held in the annexed area.
Except as provided in this section, a petition for local option election shall be governed by § 7-9-101 et seq. and § 3-8-801 et seq.

History. Acts 2005, No. 1258, § 1; 2013, No. 1432, §§ 5, 6.

Amendments. The 2013 amendment substituted “3-8-205” for “3-8-204” in (a)(2); and added (c).

Subchapter 6 — Local Option Elections

Effective Dates. Acts 2013, No. 1018, § 2: Apr. 9, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability of a territorial subdivision located in a defunct voting district to permit the sale of alcoholic beverages would improve the economic status of local businesses. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

3-8-601. Definitions.

As used in this subchapter:

“Beer” means a fermented liquor made from malt or a malt substitute and containing not more than five percent (5%) alcohol by weight;
“Defunct voting district” means a voting district that:
1. Existed at the time its qualified voters voted to be dry;
2. Is no longer recognized by the state or the county in which it was located; and
3. Is currently located in a wet county;
“Dry” means a county or territorial subdivision that voted to prohibit the manufacture or sale of intoxicating liquor under Initiated Act No. 1 of 1942, as amended, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, or § 3-8-302 [repealed], § 3-8-303, § 3-8-304 [repealed], § 3-8-305, and § 3-8-306;
“Malt beverage” means a liquor brewed from the fermented juices of grain and having an alcoholic content of not less than five percent (5%) and not more than twenty-one percent (21%) of alcohol by weight;
“Spirituous liquor” means a liquor distilled from the fermented juices of grain, fruits, or vegetables and containing more than twenty-one percent (21%) alcohol by weight or any other liquids containing more than twenty-one percent (21%) alcohol by weight;
“Territorial subdivision” means a township, municipality, ward, or precinct of a county of the state;
“Vinous beverage” means the fermented juices of fruits or a mixture containing the fermented juices of fruits containing more than five percent (5%) and not more than twenty-one percent (21%) alcohol by weight;
“Voting district” means a geographical area of qualified voters of a county in this state; and
“Wet” means a county or territorial subdivision that voted to permit the manufacture or sale of intoxicating liquor under Initiated Act No. 1 of 1942, as amended, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, or § 3-8-302 [repealed], § 3-8-303, § 3-8-304 [repealed], § 3-8-305, and § 3-8-306.

History. Acts 2013, No. 1018, § 1.

3-8-602. Local option election — Defunct voting district — On-premises consumption only.

1. Under subsection (b) of this section, an area within the boundaries of a defunct voting district may conduct an election to permit the sale of alcoholic beverages identified in subdivision (a)(2) of this section.
2. The sale of alcoholic beverages under this section shall be limited to beer, malt beverages, vinous beverages, and spirituous liquor for on-premises consumption within the corporate limits of a city of the first class or a city of the second class.
An election for an area within the boundaries of a defunct voting district to permit the sale of the alcoholic beverages identified in subdivision (a)(2) of this section shall be held as follows:
1. 1. A registered voter who resides in a county that contains a defunct voting district may request in writing or a city council of a city of the first class that includes a defunct voting district may request by ordinance that the county board of election commissioners issue a resolution to identify the boundaries of a territorial subdivision located in a defunct voting district in which qualified voters may reside.
  2. The county board of election commissioners shall issue a resolution within thirty (30) days.
  3. The resolution shall identify the:
    1. Territorial subdivisions that are located wholly or partially within borders of any defunct voting districts in the county;
    2. Formal and informal name or designation of any defunct voting districts in the county as of the last date the defunct voting district held the election resulting in its dry status;
    3. Date on which any defunct voting district held the last local option election that resulted in the defunct voting district's becoming dry; and
    4. 1. Boundaries of any defunct voting district at the time of the last local option election that resulted in the defunct voting district's becoming dry.
      2. The boundaries of the defunct voting district shall be based on state, county, or municipal records or other records publicly identified in the resolution.
  4. The resolution shall include a map of the boundaries of the defunct voting district from which qualified electors residing within the defunct voting district can be identified and verified for purposes of obtaining signatures and conducting the local option election.
  5. In preparing the resolution and the map, the county board of election commissioners may consult with the county clerk, the State Board of Election Commissioners, the Secretary of State, or any other entity able to provide assistance in confirming the data and preparing the map required by subdivision (b)(1)(D) of this section and the precise boundaries of the defunct voting district.
  6. The resolution shall be filed with the county clerk and published one (1) time a week for two (2) weeks as soon as practicable in a newspaper of general circulation in the county;
2. 1. 1. A petition procedure for a local option election for a defunct voting district shall be conducted under § 3-8-201 et seq.
    2. The city council of a city of the first class that includes a defunct voting district may adopt an ordinance to hold a local option election to be conducted under § 3-8-201 et seq.
  2. Signatures shall be obtained from fifteen percent (15%) of the qualified electors residing within the boundaries of a defunct voting district, as identified by the resolution and corresponding map.
  3. When fifteen percent (15%) of the qualified voters have filed petitions with the county clerk under this subdivision (b)(2), the county clerk shall determine within ten (10) days the sufficiency of the petitions under § 3-8-205;
3. 1. 1. The election process for a special local option election for a defunct voting district shall be conducted pursuant to § 3-8-201 et seq.
    2. The county clerk shall issue a resolution calling for a special local option election for a defunct voting district for which the requisite number of signatures has been certified under subdivision (b)(2) of this section when:
      1. The requisite number of qualified electors sign petitions filed with the county clerk; and
      2. The county clerk certifies those signatures to the county board of election commissioners.
    3. The resolution calling the special local option election shall be filed with the county clerk, and the county clerk shall immediately transmit the document to the county board of election commissioners.
    4. The resolution calling the special local option election shall state:
      1. The date of the special election;
      2. The full text of the measure for which the election is called; and
      3. The ballot title for the measure for which the special local option election is called.
    5. The county board of election commissioners shall publish the resolution calling the special local option election one (1) time a week for two (2) weeks as soon as practicable in a newspaper of general circulation in the county.
  2. The ballot title shall be in substantially the following form: “TO DETERMINE WHETHER OR NOT ALCOHOLIC BEVERAGES MAY BE SOLD AS AUTHORIZED BY ARKANSAS CODE § 3-8-602 WITHIN (popular name of the defunct voting district)”.
  3. The ballot shall be in substantially the following form:
  4. The special local option election shall be called on a Tuesday and shall not be held less than sixty (60) days following the date the resolution calling the special election is filed with the county clerk.
  5. The map of the defunct voting district created by the county board of election commissioners shall be placed at each polling site.
  6. A majority vote of the qualified electors residing within the boundaries of the defunct voting district shall determine whether or not alcoholic beverages may be sold or manufactured under subdivision (a)(2) of this section within the boundaries of the defunct voting district; and
4. The precincts and polling sites to be utilized for conducting elections under this section shall be established by the county board of election commissioners.
If a defunct voting district is located entirely within the boundaries of a larger defunct voting district, a vote shall be held only for the larger defunct voting district.
1. If two (2) defunct voting districts overlap, then the overlapping area will only be included in the boundaries of the defunct voting district that first held the local option election that resulted in its dry status to determine whether or not alcoholic beverages may be sold or manufactured under subdivision (a)(2) of this section.
2. 1. The local option elections for more than one (1) defunct voting district may be held simultaneously or on different dates.
  2. If local option elections for more than one (1) defunct voting district are held on the same date, the majority vote of all the voters residing within the boundaries of the defunct voting district shall determine the local option status of only the geographic area located within the boundaries of that particular defunct voting district.
If the majority of the qualified voters in the special local option election vote:
1. For the sale of alcoholic beverages as described under subdivision (a)(2) of this section, then it shall be lawful for the Director of the Alcoholic Beverage Control Division to issue the relevant licenses or permits within the defunct voting district immediately after the certification of the results of an election permitting the sale or manufacture of alcoholic beverages under this section, as required by § 3-8-206; or
2. Against the sale or manufacture of alcoholic beverages as described under subdivision (a)(2) of this section, then it shall be unlawful for the Alcoholic Beverage Control Division to issue licenses or permits for the sale of alcoholic beverages within the defunct voting district.
A subsequent election under this section shall not be held in the same defunct voting district until a period of two (2) years has elapsed since the last special local option election conducted under this section.
The cost of a local option election under this section shall be paid by the county in the same manner as the cost of a general election, or in any other manner as properly determined by the quorum court.
1. The boundaries of a defunct voting district as identified by the county board of election commissioners under subdivision (b)(1) of this section shall be deemed final and valid unless clearly erroneous or arbitrary.
2. Any challenge to or appeal of the boundaries established by the resolution of the county board of election commissioners shall be made to the county court within eleven (11) days of the first publication of the resolution described in subdivision (b)(1)(F) of this section.
To the extent any of the provisions of this section conflict with § 3-8-201 et seq., the provisions of this section control.

“[ ] FOR the Sale of Alcoholic Beverages, As Authorized by Arkansas Code § 3-8-602.

[ ] AGAINST the Sale of Alcoholic Beverages, As Authorized by Arkansas Code § 3-8-602.”.

History. Acts 2013, No. 1018, § 1; 2015, No. 564, §§ 1, 2; 2017, No. 144, § 1.

Amendments. The 2015 amendment deleted “manufacture and” preceding “sale” in (a)(1) and the introductory language of (b); rewrote (a)(2); substituted “under” for “pursuant to” in (b)(2)(A); rewrote (b)(2)(B) and added (b)(2)(C); deleted “OR MANUFACTURED” following “MAY BE SOLD” in (b)(3)(B); and deleted “or manufacture” following “sale” near the beginning of (e)(1) and following the second occurrence of “sale” in (e)(2).

The 2017 amendment inserted “or a city council of a city of the first class that includes a defunct voting district may request by ordinance” in (b)(1)(A); added (b)(2)(A)(ii); and substituted “the sale of alcoholic beverages” for “such sale” in (e)(2).

Subchapter 7 — Disclosure Act for Initiative Proceedings

3-8-701. Title.

This subchapter shall be known and may be cited as the “Disclosure Act for Initiative Proceedings”.

History. Acts 2013, No. 1432, § 7.

3-8-702. Definitions.

As used in this subchapter:

1. “Contribution” means, whether direct or indirect, advances, deposits, transfers of funds, contracts, or obligations, whether or not legally enforceable, payments, gifts, subscriptions, assessments, payments for services, dues, advancements, forbearance, loans, pledges, or promises of money or anything of value, whether or not legally enforceable, to a person for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question.
2. “Contribution” includes the purchase of tickets for events such as dinners, luncheons, rallies, and similar fundraising events and the granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all persons for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question.
3. “Contribution” does not include:
  1. Noncompensated, nonreimbursed volunteer personal services or travel;
  2. Activities designed solely to encourage individuals to vote or to register to vote; or
  3. Any communication by a bona fide church or religious denomination to its own members or adherents for the sole purpose of protecting the right to practice the religious tenets of the church or religious denomination;
“Disqualification of a local-option ballot question” means any action or process, legal or otherwise, that seeks to prevent a local-option ballot question from being on the ballot at an election;
“Elected official” means any person holding an elective office of any governmental body, whether elected or appointed to the office;
1. “Expenditure” means a purchase, payment, distribution, gift, loan, or advance of money or anything of value, and a contract, promise, or agreement to make an expenditure for goods, services, materials, or facilities for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question.
2. “Expenditure” does not include an expenditure made for communication by a person strictly with the person's paid members or shareholders;
“Governmental body” means any office, department, commission, council, board, committee, legislative body, agency, or other establishment of the executive, judicial, or legislative branch of the state, municipality, county, school district, improvement district, or any political district or subdivision thereof;
“Local-option ballot question” means a question in the form of a local-option initiative that is submitted or intended to be submitted to a popular vote at an election, whether or not it qualifies for the ballot;
1. “Local-option ballot question committee” means any person, located within or outside Arkansas, that receives contributions for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question or any person, other than an elected official expending public funds, or an individual, located within or outside Arkansas, that makes expenditures for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question.
2. A person other than an individual or an approved political action committee as defined in § 7-6-201, located within or outside Arkansas, also qualifies as a local-option ballot question committee if two percent (2%) or more of the committee's annual revenues, operating expenses, or funds are used to make a contribution or contributions to another ballot question committee and if the contribution or contributions exceed ten thousand dollars ($10,000) in value;
1. “Person” means any individual, business, proprietorship, firm, partnership, joint venture, syndicate, business trust, labor organization, company, corporation, association, committee, or any other organization or group of persons acting in concert.
2. “Person” includes a public servant or governmental body using public funds to expressly advocate the qualification, disqualification, passage, or defeat of a local-option ballot question; and
“Qualification of a local-option ballot question” means any action or process, legal or otherwise, through which a local-option ballot question obtains certification to be on the ballot at an election.

History. Acts 2013, No. 1432, § 7; 2015, No. 226, § 1.

Amendments. The 2015 amendment inserted present (3) and redesignated former (3) as (4); inserted (5) and redesignated the remaining subdivisions accordingly; and substituted “an elected official” for “a public servant, a governmental body” in (7)(A).

3-8-703. Filing deadlines.

1. 1. A local-option ballot question committee shall file a Local-Option Ballot Question Committee Statement of Organization with the Arkansas Ethics Commission within five (5) days of receiving contributions or making expenditures in excess of five hundred dollars ($500) for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question.
  2. The commission shall maintain the statement of organization until notified of the committee's dissolution.
2. A local-option ballot question committee failing to file a statement of organization required by this section shall be subject to a late filing fee not to exceed fifty dollars ($50.00) for each day the statement remains not filed.
The statement of organization for a local-option ballot question committee as defined in § 3-8-702(7)(A) shall include the following information:
1. 1. The name, the street address, and if available, the telephone number of the committee.
  2. A committee address and telephone number may be that of the residence of an officer or a director of the committee;
2. The name, street address, and if available, the telephone number of the treasurer and other principal officers and directors of the committee;
3. The name and address of each financial institution in which the committee deposits money or anything else of monetary value;
4. The name of each person who is a member of the committee. A person that is not an individual may be listed by its name without also listing its own members, if any; and
5. A brief statement identifying the substance of each ballot question, the qualification, disqualification, passage, or defeat of which the committee seeks to influence or of each legislative question, the passage or defeat of which the committee seeks to influence, and if known, the date each ballot or legislative question shall be presented to a popular vote at an election.
The statement of organization for a local-option ballot question committee as defined in § 3-8-702(7)(B) shall include the following information:
1. 1. The name, the street address, and if available, the telephone number of the committee.
  2. A committee's address and telephone number may be that of the residence of an officer or a director of the committee;
2. The name, street address, and where available, the telephone number of the treasurer and the other principal officers and directors of the committee;
3. The name and address of each financial institution in which the committee deposits money or anything else of monetary value;
4. The name of each person who is a member of the committee. A person that is not an individual may be listed by its name without also listing its own members, if any; and
5. A brief statement identifying the substance of each ballot question, the qualification, disqualification, passage, or defeat of which the committee seeks to influence, and if known, the date each ballot or legislative question shall be presented to a popular vote at an election.
Rules regarding dissolution shall be governed by the rule of the commission.
1. Upon dissolution, a local-option ballot question committee shall notify the commission of the dissolution in writing.
2. Any remaining funds on hand at the time of dissolution shall be turned over to:
  1. The Treasurer of State for the benefit of the General Revenue Fund Account of the State Apportionment Fund;
  2. An organized political party as defined in § 7-1-101 or a political party caucus of the General Assembly, the Senate, or the House of Representatives;
  3. A nonprofit organization that is exempt from taxation under the Internal Revenue Code, 26 U.S.C. § 501(c)(3);
  4. Cities of the first class, cities of the second class, or incorporated towns; or
  5. The contributors to the local-option ballot question committee.

History. Acts 2013, No. 1432, § 7; 2015, No. 226, § 2; 2017, No. 721, § 1.

Amendments. The 2015 amendment added (d).

The 2017 amendment, in (a)(1)(A), inserted “Local-Option” and “disqualification”; rewrote (b); and inserted (c) and redesignated the remaining subsections accordingly.

3-8-704. Contributions and expenditures limited.

No local-option ballot question committee shall accept any contribution in cash, meaning currency or coin, that exceeds one hundred dollars ($100).
No local-option ballot question committee shall accept any contribution from a prohibited political action committee as defined in § 7-6-201.
No local-option ballot question committee or individual shall make an expenditure in cash that exceeds fifty dollars ($50.00) to influence the qualification, disqualification, passage, or defeat of a local-option ballot question.
No contributions shall be made, directly or indirectly, by any person in a name other than the name by which the person is identified for legal purposes.
1. No person shall make an anonymous contribution totaling fifty dollars ($50.00) or more to a local-option ballot question committee.
2. Any anonymous contribution actually received by a local-option ballot question committee shall be promptly paid by the recipient to the Secretary of State for deposit into the State Treasury as general revenues.

History. Acts 2013, No. 1432, § 7.

3-8-705. Financial reports — Requirement.

A local-option ballot question committee that either receives contributions or makes expenditures in excess of five hundred dollars ($500) for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question shall file with the Arkansas Ethics Commission a Ballot Question Committee Financial Report as required by §§ 7-9-407 — 7-9-409.
An individual person who on his or her own behalf expends in excess of five hundred dollars ($500), excluding contributions, for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question shall file with the commission financial reports as required by §§ 7-9-407 — 7-9-409.
An elected official expending public funds in excess of five hundred dollars ($500) for the purpose of expressly advocating the qualification, disqualification, passage, or defeat of a local-option ballot question shall file with the commission financial reports as required by §§ 7-9-407 — 7-9-409.
Except as provided in subsection (e) of this section, a report required by this subchapter shall be deemed timely filed if it is:
1. Hand-delivered to the commission on or before the date due;
2. Mailed to the commission, properly addressed, postage prepaid, bearing a postmark indicating that it was received by the post office or common carrier on or before the date due;
3. Received via facsimile by the commission on or before the date due, provided that the original is received by the commission within ten (10) days of the transmission; or
4. Received by the commission in a readable electronic format that is approved by the commission.
Whenever a report under this subchapter becomes due on a day that is a Saturday, Sunday, or legal holiday, the report shall be due the next day that is not a Saturday, Sunday, or legal holiday.
A preelection report is timely filed if it is received by the commission no later than seven (7) days prior to the election for which it is filed.

History. Acts 2013, No. 1432, § 7; 2015, No. 226, § 3.

Amendments. The 2015 amendment inserted present (b) and redesignated the remaining subsections accordingly; and substituted “An elected official” for “A public servant or governmental body” in (c).

3-8-706. Financial report — Information.

In addition to the information required under §§ 7-9-407 — 7-9-409, a financial report of a local-option ballot question committee, individual person, or elected official shall contain the following information:

The name, address, and telephone number of the local-option ballot question committee, individual person, or elected official filing the report;
1. For a local-option ballot question committee as defined in § 3-8-702(7)(A):
  1. The total amount of contributions received during the period covered by the financial report;
  2. The total amount of expenditures made by the local-option ballot question committee or on behalf of the local-option ballot question committee by an advertising agency, public relations firm, or political consultant during the period covered by the financial report;
  3. The cumulative amount of contributions and expenditures reported under subdivision (2)(A) of this section for each local-option ballot question committee;
  4. The balance of cash and cash equivalents on hand at the beginning and the end of the period covered by the financial report;
  5. The total amount of contributions received during the period covered by the financial report from persons who contributed less than fifty dollars ($50.00) and the cumulative amount of that total for each local-option ballot question committee;
  6. The total amount of contributions received during the period covered by the financial report from persons who contributed fifty dollars ($50.00) or more and the cumulative amount of that total for each local-option ballot question committee;
  7. The name and street address of each person who contributed fifty dollars ($50.00) or more during the period covered by the financial report, together with the amount contributed, the date of receipt, and the cumulative amount contributed by that person for each local-option ballot question committee;
  8. For each person listed under subdivision (2)(A) of this section, the contributor's principal place of business, employer, occupation, the amount contributed, the date the contribution was accepted by the local-option ballot question committee, and the cumulative amount contributed for each local-option ballot question;
  9. The name and address of each person who contributed a nonmoney item, together with a description of the item, the date of receipt, and the value, not including volunteer service by individuals;
  10. A list of all expenditures by category, including without limitation the following:
    1. Advertising;
    2. Direct mail;
    3. Office supplies;
    4. Travel;
    5. Expenses; and
    6. Telephone; and
  11. The total amount of nonitemized expenditures made during the period covered by the financial report.
2. For a local-option ballot question committee as defined in § 3-8-702(7)(B):
  1. The total amount of contributions made by the committee to another ballot or legislative question committee reported during the period covered by the financial report; and
  2. The cumulative amount of contributions under subdivision (2)(B)(i) of this section.
3. For an individual person:
  1. The total amount of expenditures made by the individual person or on behalf of the individual person by an advertising agency, public relations firm, or political consultant during the period covered by the financial report; and
  2. The cumulative amount of expenditures for each local-option ballot question.
4. For an elected official using public funds:
  1. The total amount of expenditures made by the elected official using public funds or on behalf of the elected official using public funds by an advertising agency, public relations firm, or political consultant during the period covered by the financial report; and
  2. The cumulative amount of expenditures for each local-option ballot question; and
The name and street address of each person to whom expenditures totaling one hundred dollars ($100) or more were made by the local-option ballot question committee, individual person, or elected official using public funds or on behalf of the local-option ballot question committee, individual person, or elected official using public funds by an advertising agency, public relations firm, or political consultant, together with the date and amount of each separate expenditure to each person during the period covered by the financial report and the purpose of each expenditure.

History. Acts 2013, No. 1432, § 7; 2015, No. 226, § 4; 2017, No. 721, §§ 2-4.

Amendments. The 2015 amendment inserted “individual person, or elected official” in the introductory language and in (1); redesignated former (2) as present (2)(A) and redesignated subdivisions accordingly; added (2)(B) and (C); and rewrote (3).

The 2017 amendment added “as defined in § 3-8-702(7)(A)” at the end of (2)(A); repealed (2)(A)(x); and inserted (2)(B) and redesignated the remaining subdivisions accordingly.

3-8-707. Financial reports — Verification.

The financial reports identified in § 3-8-706 shall be verified by affidavit by the person filing them to the effect that to the best of his or her knowledge and belief the information disclosed is a complete, true, and accurate financial statement of contributions or expenditures.

History. Acts 2013, No. 1432, § 7.

3-8-708. Financial reports — Time to file — Late fee.

1. The first financial reports shall be filed no later than fifteen (15) days following the month in which the threshold of five hundred dollars ($500) under § 3-8-706 is met and thereafter no later than fifteen (15) days after the end of each month until the election is held. However, for any month in which certain days of that month are included in a preelection financial report required under subdivision (a)(2) of this section, no monthly report for that month shall be due, but those days of that month shall be carried forward and included in the final financial report.
2. Additionally, a preelection financial report shall be filed no less than seven (7) days prior to any election on the ballot question or legislative question, such statement to have a closing date of ten (10) days prior to the election.
3. Furthermore, a final financial report shall be filed no later than thirty (30) days after the election.
A local-option ballot question committee, individual person, or elected official who files a late financial report shall be subject to a late filing fee not to exceed fifty dollars ($50.00) for each day the report remains unfiled.

History. Acts 2013, No. 1432, § 7; 2015, No. 226, § 5.

Amendments. The 2015 amendment inserted “or elected official” in (b).

3-8-709. Public inspection — Record retention.

All statements of organization and financial reports required by this subchapter shall be open to public inspection at the office of the Arkansas Ethics Commission during regular office hours.
All records supporting the reports filed under this subchapter shall be:
1. Made available to the commission; and
2. Retained by the filer for a period of four (4) years after the date of filing the report.

History. Acts 2013, No. 1432, § 7.

3-8-710. Enforcement.

The Arkansas Ethics Commission shall have the same power and authority to enforce the provisions of this subchapter as are provided the commission under §§ 7-6-217 and 7-6-218 for the enforcement of campaign finance laws.

History. Acts 2013, No. 1432, § 7.

3-8-711. Reporting the use of state funds to oppose or support ballot measure.

Any funds appropriated to any state agency, board, or commission that are expended for the purpose of opposing or supporting a local-option ballot question that is submitted or intended to be submitted to a popular vote at an election, whether or not it qualifies for the ballot, shall be reported to the Legislative Council if the amount exceeds one hundred dollars ($100).

History. Acts 2013, No. 1432, § 7; 2017, No. 249, § 1.

Amendments. The 2017 amendment deleted “as prescribed in § 7-9-413” following “expended”.

3-8-712. Use of state funds to oppose or support a local-option ballot measure.

The use of state funds under this subchapter includes expenditures for:

Newspaper, television, radio, and other forms of communication;
Publication materials;
Travel expenses relative to reimbursement;
Surveys;
Private contracts; and
Postage.

History. Acts 2013, No. 1432, § 7.

3-8-713. Applicability of §§ 3-8-711 and 3-8-712.

This subchapter does not apply to state funds appropriated to any elected officials.

History. Acts 2013, No. 1432, § 7.

3-8-714. Scope.

Nothing in this subchapter may limit, waive, or abrogate the scope of any statutory or common law privilege, including, but not limited to, the work product doctrine and the attorney-client privilege.

History. Acts 2013, No. 1432, § 7.

3-8-715. Penalty.

Upon conviction, any person who knowingly fails to comply with this subchapter shall be fined an amount not to exceed one thousand dollars ($1,000) or be imprisoned for not more than one (1) year, or both.

History. Acts 2013, No. 1432, § 7.

Subchapter 8 — Circulation of Petition for Local Option Election

Case Notes

Constitutionality.

Rational-basis test applied to a county resident's constitutional challenge to the local-option framework set forth in this subchapter, as the holding of a liquor license is a privilege, not a fundamental right; further, the rational-basis test is used when a statute falls within the legislature's police powers to regulate an industry of general public interest, and the regulation of alcohol is of general public interest. Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

County resident failed to show that the local-option framework set forth in this subchapter was not rationally related to achieving any legitimate governmental objective given the correlation between alcohol misuse and detrimental effects on a person's health. Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

County resident's challenge to the effectiveness of the local-option framework set forth in this subchapter was rejected, as effectiveness in furthering the government interest is not a factor in determining a statute's constitutionality under the rational-basis test. Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

The exemption for private clubs in § 3-9-221 had not rendered the local-option framework set forth in this subchapter, § 3-8-801 et seq., irrational as the statutes could be read in harmony. Brennan v. White Cty., 2019 Ark. App. 146, 573 S.W.3d 577, cert. denied, 205 L. Ed. 2d 220 (U.S. 2019).

3-8-801. Definitions.

As used in this subchapter:

“Canvasser” means a person who circulates a local option election petition or a part or parts of a local option election petition to obtain the signatures of petitioners thereto;
“Intoxicating liquor” means any beverage containing more than one-half of one percent (0.5%) of alcohol by weight;
“Paid canvasser” means a person who is paid or with whom there is an agreement to pay money or anything of value before or after a signature on a local option election petition is solicited in exchange for soliciting or obtaining a signature on a petition;
“Petition part” means a petition signature sheet containing the information required under this subchapter;
“Petitioner” means a person who signs a petition requesting a local option election;
“Registered voter” means a person who is registered at the time of signing the petition pursuant to Arkansas Constitution, Amendment 51; and
“Sponsor” means a person who arranges for the circulation of a local option election petition or who files a local option election petition with the official charged with verifying the signatures.

History. Acts 2013, No. 1432, § 8; 2015, No. 1251, § 3.

Amendments. The 2015 amendment inserted present (2), (4), and (6); and redesignated the remaining subdivisions accordingly.

3-8-802. Hiring and training of paid canvassers.

1. A person shall not provide money or anything of value to another person for obtaining signatures on a local option election petition unless the person receiving the money or item of value meets the requirements of this section.
2. Before a signature is solicited by a paid canvasser, the sponsor shall:
  1. Explain the Arkansas law applicable to obtaining signatures on a local option election petition to the canvasser; and
  2. 1. Provide a complete list of all paid canvassers' names and current residential addresses to the county clerk.
    2. If additional paid canvassers agree to solicit signatures on behalf of a sponsor after the complete list is provided, the sponsor shall provide an updated list of all paid canvassers' names and current residential addresses to the county clerk.
Before obtaining a signature on a local option election petition as a paid canvasser, a person shall submit in person or by mail to the sponsor:
1. The full name and any assumed name of the person;
2. The current residence address of the person and the person's permanent domicile address if the person's permanent domicile address is different from the person's current residence address;
3. A signed statement taken under oath or solemn affirmation that states that the person has not pleaded guilty or nolo contendere to or been found guilty of a criminal offense involving a violation of the election laws, fraud, forgery, or identification theft in any state;
4. A signed statement that the person has read and understands the Arkansas law applicable to obtaining signatures on a local option election petition; and
5. A photograph of the person taken within ninety (90) days of the submission of the information required under this section.
A sponsor shall maintain the information required under this section for each paid canvasser for three (3) years after the general election.

History. Acts 2013, No. 1432, § 8; 2015, No. 1251, § 4.

Amendments. The 2015 amendment deleted former (a)(2)(A), and redesignated the remaining subdivisions accordingly; substituted “county clerk” for “Secretary of State” in (a)(2)(B)(i) and (a)(2)(B)(ii); and deleted former (b)(5) and redesignated former (b)(6) as (b)(5).

3-8-803. Petition to determine granting of licenses for manufacture or sale or bartering, loaning, or giving away of intoxicating liquor.

An election to determine whether licenses will be granted for the manufacture or sale or the bartering, loaning, or giving away of intoxicating liquor shall be called by a petition signed by registered voters in the designated county, township, municipality, ward, or precinct in a number equal to thirty-eight percent (38%) of the registered voters.
The petition shall be filed with the county clerk.
The county clerk shall verify the signatures on the petition and determine the sufficiency of the petition no later than ten (10) days after the petition is submitted.
The total number of voters registered as certified by the county clerk to the Secretary of State by June 1 of each year pursuant to Arkansas Constitution, Amendment 51, shall be the basis upon which the number of signatures of qualified electors on petitions shall be computed.

History. Acts 2015, No. 1251, § 5.

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

3-8-804. Duties of election officers — Penalty for failure to perform.

The duties imposed by this subchapter upon members of the State Board of Election Commissioners, members of the county boards of election commissioners, election officials, and other officers expressly named in this subchapter shall be performed:
1. In good faith;
2. Within the time provided by this subchapter; and
3. In the manner provided by this subchapter.
If a member of a board, an election official, or another officer charged with a duty under this subchapter knowingly fails to perform that duty, he or she shall be upon conviction:
1. Fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000); and
2. Removed from his or her office.

History. Acts 2015, No. 1251, § 5.

3-8-805. Signing of petition — Penalty for falsification — Notice of suspected forgery.

1. A person signing a petition under this subchapter shall:
  1. Be a registered voter; and
  2. Sign his or her own name and print his or her own name, address, birthdate, and the date of signing on a petition in his or her own handwriting.
2. If a person signing a petition under subdivision (a)(1) of this section requires assistance due to disability, another person:
  1. May print the name, address, birthdate, and the date of signing; and
  2. Shall sign and print his or her name in the margin of the petition.
3. A person who is under eighteen (18) years of age shall not act as a canvasser.
A person commits a Class A misdemeanor if the person, acting as a canvasser, notary, sponsor, or agent of a sponsor knowingly:
1. Signs a name other than his or her own to a petition;
2. Prints a name, address, or birthdate other than his or her own on a petition unless the signer requires assistance due to disability and the person complies with this section;
3. Solicits or obtains a signature to a petition knowing that the person signing is not qualified to sign the petition;
4. Pays a person any form of compensation in exchange for signing a petition as a petitioner;
5. Accepts or pays money or anything of value for obtaining signatures on a petition when the person acting as a canvasser, sponsor, or agent of a sponsor knows that the person acting as canvasser's name or address is not included on the sponsor's list filed with the county clerk; or
6. As a sponsor, files a petition part with the official charged with verifying the signatures knowing that the petition part contains one (1) or more false or fraudulent signatures unless each false or fraudulent signature is clearly stricken by the sponsor before filing.
When the official charged with verifying the signatures has reasonable grounds to believe that one (1) or more signatures on a petition is forged, excluding signatures apparently signed by one spouse for another, the official shall report the suspected forgery and basis for suspecting forgery to:
1. The Department of Arkansas State Police, in the case of a statewide petition; or
2. The prosecuting attorney of the county, in the case of a local petition.

History. Acts 2015, No. 1251, § 5.

3-8-806. Form of initiative petition — Sufficiency of signatures.

The petition for an ordinance, act, or amendment proposed by initiative shall be on substantially the following form:
The information on the petition provided by the person may be used as evidence of the validity or invalidity of the signature. However, if a signature of a registered voter on the petition is sufficient to verify the voter's name, then it shall not be adjudged invalid for failure to sign the name or write the residence and city or town of residence exactly as it appears on voter registration records, for failure to print the name in the space provided, for failure to provide the correct date of birth, nor for failure to provide the correct date of signing the petition, all the information being an aid to verification rather than a mandatory requirement to perfect the validity of the signature.
No additional sheets of voter signatures shall be attached to any petition unless the sheets contain the full language of the petition.
1. The signature section of the petition shall be formatted and shall contain the number of signature lines prescribed by the county clerk.
2. Before the circulation of a petition for signatures, the sponsor shall file a printed petition part with the county clerk in the exact form that will be used for obtaining signatures.

“PETITION FOR LOCAL OPTION ELECTION

To the Honorable ,

County Clerk or City Clerk

We, the undersigned registered voters of the State of Arkansas, or County, Arkansas, or City or Incorporated Town of , Arkansas, respectfully request that an election be held to determine whether licenses will be granted for the manufacture or sale or the bartering, loaning, or giving away of intoxicating liquor in the district described below, to the end that the same may be adopted, enacted, or rejected by the vote of the registered voters of said district. Each of us for himself or herself says:

I have personally signed this petition; I am a registered voter of County, Arkansas, or City or Incorporated Town of , Arkansas, and my printed name, date of birth, residence, city or town of residence, and date of signing this petition are correctly written after my signature.

(Here insert a description of the district in which the election shall be held.)”

History. Acts 2015, No. 1251, § 5.

3-8-807. Procedure for circulation of petition.

1. Each petition under this subchapter for an election to be held in a district that includes more than one (1) county shall be prepared and circulated in a petition part, and each petition part shall be an exact copy of all other such petition parts upon which signatures of petitioners are to be solicited.
2. When a sufficient number of petition parts are signed by a requisite number of qualified electors and are filed and duly certified by the county clerk, they shall be treated and considered as one (1) petition.
Each petition part shall have attached to it the affidavit of the canvasser stating that:
1. The canvasser's current residence address appearing on the verification is correct;
2. All signatures appearing on the petition part were made in the presence of the affiant; and
3. To the best of the affiant's knowledge and belief each signature is genuine and each person signing is a registered voter.
No petition part under this section shall contain signatures of petitioners from more than one (1) county.

History. Acts 2015, No. 1251, § 5.

3-8-808. Form of verification — Penalty for false statement.

Each petition containing signatures shall be verified in substantially the following form by the canvasser's affidavit thereon as a part thereof:
1. If the form under this section is substantially followed in a petition, it is sufficient.
2. The form shall not be held insufficient for clerical and merely technical errors.
1. Petitions shall not be disqualified due to clerical or technical errors made by a clerk, notary, judge, or justice of the peace when verifying the canvasser's signature.
2. Petitions shall not be disqualified for failure of a clerk, notary, judge, or justice of the peace to sign exactly as his or her name appears on his or her seal if the signature of a clerk, notary, judge, or justice of the peace is sufficient to verify his or her name.
A canvasser or paid canvasser who knowingly makes a false statement on a petition verification form required by this section shall be deemed guilty of a Class D felony.

“State of Arkansas, County of

I, (print name of canvasser) , being duly sworn, state that each of the foregoing persons signed his or her own name to this sheet of the petition in my presence. To the best of my knowledge and belief, each signature is genuine and each signer is a registered voter of County, or City or Incorporated Town of . At all times during the circulation of this signature sheet, an exact copy of the popular name, ballot title, and text was attached to the signature sheet. My current residence address is correctly stated below.

Signature

Residence

Indicate one: Paid Canvasser Volunteer/Unpaid Canvasser

Subscribed and sworn to before me this day of , 20

Signature

Clerk, Notary, Judge, or Justice of the Peace

Seal

History. Acts 2015, No. 1251, § 5.

3-8-809. Failure to act on petition — Mandamus — Injunction.

If the county clerk does not examine and certify a petition under this chapter within the time prescribed in § 3-8-803, the sponsors may apply to the circuit court with jurisdiction for appropriate relief.
If the court decides that the petition is legally sufficient, it shall order the county clerk to certify the sufficiency of the petition and set an election date.
On a proper showing that any petition is not sufficient, the court may enjoin the county clerk from:
1. Certifying its sufficiency; or
2. Setting an election date.

History. Acts 2015, No. 1251, § 5.

3-8-810. Preservation of records.

All petitions, notices, certificates, or other documentary evidence of procedural steps taken under this subchapter shall be filed and preserved.
Petitions with signatures shall be retained for two (2) years after submission to the county clerk.

History. Acts 2015, No. 1251, § 5.

3-8-811. Count of signatures.

Upon the initial filing of a petition under this subchapter, the official charged with verifying the signatures shall:
1. Perform an initial count of the signatures; and
2. Determine whether the petition contains, on its face and before verification of the signatures of registered voters, the designated number of signatures required by the Arkansas Constitution and statutory law in order to call an election.
A petition part and all signatures appearing on the petition part shall not be counted for any purpose by the official charged with verifying the signatures, including the initial count of signatures, if one (1) or more of the following is true:
1. The petition is not an original petition, including without limitation a petition that is photocopied or is a facsimile transmission;
2. The petition lacks the signature, printed name, and residence address of the canvasser or is signed by more than one (1) canvasser;
3. 1. The canvasser is a paid canvasser whose name and the information required under § 3-8-802 were not submitted by the sponsor to the county clerk before the petitioner signed the petition.
  2. A canvasser is a paid canvasser if he or she is paid money or anything of value for soliciting signatures before or after the signatures are obtained;
4. The canvasser verification is not notarized, is notarized by more than one (1) notary, or lacks a notary signature or a notary seal;
5. The canvasser verification is dated earlier than the date on which a petitioner signed the petition;
6. The petition part clearly and unmistakably contains signatures of petitioners from more than one (1) county unless each signature of a petitioner from another county is clearly stricken before the filing of the petition with the county clerk; or
7. The petition part has a material defect that, on its face, renders the petition part invalid.
The following signatures shall not be counted for any purpose by the official charged with verifying the signatures, including the initial count of signatures:
1. A signature that is not an original signature;
2. A signature that is obviously not that of the purported petitioner;
3. A signature that is illegible and is accompanied by no personally identifying information;
4. A signature for which the corresponding printed name, address, or birthdate is written by someone other than the signer except under circumstances of disability of the signer; and
5. A signature that has any other material defect that, on its face, renders the signature invalid.

History. Acts 2015, No. 1251, § 5.

Chapter 9 On-premises Consumption

Research References

ALR.

Choice of law as to liability of seller for injuries caused by intoxicated person. 2 A.L.R.4th 952.

Tavernkeeper's liability to patron for third person's assault. 43 A.L.R.4th 281.

Subchapter 1 — General Provisions

3-9-101. Nudity on premises prohibited — Penalty — Rules.

No person who has received a permit under any law of the State of Arkansas for the sale or dispensing of alcoholic beverages for on-premises consumption shall suffer or permit any person to appear on the permitted premises in such manner or attire as to expose to view any portion of the pubic area, anus, vulva, or genitals or any simulation thereof, nor suffer or permit any female to appear on the premises in such manner or attire as to expose to view any portion of her breast below the top of the areola or any simulation thereof.
Any hotel-motel-restaurant mixed drink permittee or private club permittee violating this section shall be subject to the penalties prescribed in §§ 3-9-201 — 3-9-214, 3-9-221 — 3-9-225, and 3-9-232 — 3-9-237 for the violation of those sections.
The Alcoholic Beverage Control Board shall promulgate such rules as it deems necessary for the implementation of this section.

History. Acts 1985, No. 965, §§ 1, 2; A.S.A. 1947, §§ 48-956, 48-957; Acts 2019, No. 315, § 95.

Publisher's Notes. Acts 1985, No. 965, §§ 1, 2, are also codified as § 3-5-222.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (c).

3-9-102. Posting of warning signs relating to drinking alcoholic beverages during pregnancy.

1. A person who has received a permit under the law of this state for the sale or dispensing of alcoholic beverages, beer, or wine for on-premises consumption in a private club that does not hold itself out to be a food service establishment shall post in a conspicuous place a printed sign at least eight and one-half inches by eleven inches (8 ½" x 11") in size with letters at least one inch (1") high that reads “Warning: Drinking alcoholic beverages during pregnancy may cause birth defects”.
2. The poster shall be printed in English, Spanish, and any other language mandated by the Voting Rights Act of 1965, 42 U.S.C. § 1973, as it existed on January 1, 2013, in the county where the poster will be posted.
1. The Alcoholic Beverage Control Board shall make a sign meeting the requirements of this section available to a person who has received a permit under the law of this state for the sale or dispensing of alcoholic beverages, beer, or wine for on-premises consumption in a private club that does not hold itself out to be a food service establishment.
2. The sign shall be available on the website of the Alcoholic Beverage Control Division where documents associated with obtaining a liquor license or alcoholic beverage license are customarily located.
3. To obtain a copy of the sign required to be posted under this section, the owners or operators of an establishment required to post the sign under this section shall:
  1. Print the poster from the website under subdivision (b)(3) of this section; or
  2. Request that the sign be mailed for the cost of printing and first-class postage.
1. If the board finds that the establishment has failed to post the information required under this section, the owner or operator shall receive:
  1. For a first violation, a warning; and
  2. For a second or subsequent violation, a fine not to exceed five hundred dollars ($500).
2. The violation of or noncompliance with this section and each day's continuance thereof shall constitute a separate and distinct violation.
The board shall promulgate rules to implement this section.
The board may enter into an interagency agreement with the Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services regarding the funding necessary to implement this section.

History. Acts 2013, No. 1300, § 1; 2017, No. 913, § 9.

Amendments. The 2017 amendment substituted “Division of Aging, Adult, and Behavioral Health Services” for “Division of Behavioral Health Services” in (e).

U.S. Code. 42 U.S.C. § 1973, referred to in subdivision (a)(2) of this section, has been transferred to 52 U.S.C. § 10301.

Subchapter 2 — Alcoholic Beverages Generally

Publisher's Notes. Acts 1969, No. 132, § 20 provided that nothing in this subchapter (excluding § 3-9-226) should be construed to authorize the sale of alcoholic liquors or beer, or to allow the issuance of any permit therefor, in any ward or portion of a city, or in any county, or portion thereof, in which the sale of alcoholic liquors or beer is prohibited pursuant to local option election held under Initiated Act No. 1 of 1942. The section further provided that nothing in this subchapter (excluding § 3-9-226) should be deemed to amend or repeal any of the provisions of Initiated Act No. 1 of 1942.

Acts 1999, No. 910, § 4, provided: “This Act shall be effective on or after July 1, 1999.”

Cross References. Permit renewals generally, § 3-4-216.

Acts 1969, No. 132, § 21: Feb. 28, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that additional general revenues are urgently required for the State Apportionment Fund to support programs vital to the health, education, welfare, and safety of the people of this state and that unless such funds are provided, curtailment of such programs will be necessary; that the expanded economic growth of this state is essential to providing the sources of tax revenue to support such program; that the provisions of this act will stimulate the tourist and convention business in this state and will provide increased revenues from existing taxes; that the revenues to be collected under this act are essential to continuing existing levels of governmental services; that the immediate passage of this act is essential, not only to provide vitally needed revenues, but also to clarify and modernize the laws of this state regarding the sale, dispensing, and serving of alcoholic beverages for on-premises consumption and to strengthen the enforcement of the alcoholic beverage laws of this state; and, that the immediate passage of this act is necessary to accomplish the purposes stated herein. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety, shall be in full force and effect from and after the date of its passage and approval.”

Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1973, No. 387, § 3: Mar. 19, 1973. Emergency clause provided: “It is hereby found and determined by the General Assembly that a situation of uncertainty exists in which there is a need for clarification of the existing governing powers of municipalities, and that such uncertainty should be resolved immediately in such way as to encourage the attraction of tourists to the State of Arkansas, safeguard the morals of our citizenry, and confirm the principal of local autonomy, and that this act is designed to accomplish this purpose and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1975, No. 137, § 3: became law without Governor's signature, Feb. 10, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that in counties of this state having a population of not less than 53,000 nor more than 58,000 there are hotels and restaurants which are licensed to dispense alcoholic beverages for consumption on the premises, and that there is some confusion as to what agency or body has the authority to regulate the closing hours of said licensed premises; that the law is clear that when such hotels or restaurants are located within the municipality, the governing body of such municipality may regulate the closing hours of the premises, but there are no specific provisions with respect to the closing hours of such licensed premises located within such county and outside the boundaries of any municipal corporation; that this act is designed to vest the county court of the county with the authority to establish closing hours for such licensed premises located in such counties outside the boundaries of municipalities, and that the act should be given effect immediately to clarify such confusion and to specifically vest such authority in the county court. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1985, No. 384, § 3: Mar. 18, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly that only nonprofit corporations organized under the laws of this state should be eligible to obtain private club permits; that it is essential to the effective and efficient enforcement of the alcoholic beverage laws that such restrictions be given effect at the earliest possible date; that this act is designed to establish such restrictions and to clarify the laws relating to the qualifications of nonprofit corporations to obtain such permits, and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 949, § 3: Apr. 13, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1016 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1989, No. 837, § 5: Mar. 22, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the term ‘restaurant’ as used in the laws relating to the service of alcoholic beverages for on premises consumption is in urgent need of clarification to assure the effective administration of such laws; that this act is designed to provide such clarification and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 563, § 10: emergency failed to pass. Emergency clause provided: “It is hereby found and determined by the General Assembly that although the sale of alcoholic beverages on Sunday is permitted in some cities of this State, even in those cities the sale of beer and wine is not permitted on Sunday; that it is fundamentally unfair to authorize the Sunday sale of mixed drinks but to prohibit the Sunday sale of beer and wine; that this act would provide equal protection to the purveyors of beer and wine; that to give immediate effect to this act will lessen the possibility of a challenge to the present law allowing the Sunday sale of mixed drinks, and thereby save the taxpayers the cost involved in defending the challenge and the cost of an unsuccessful defense; and that, therefore, this act should go into effect immediately. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1995, No. 600, § 5: Mar. 13, 1995. Emergency clause provided: “It is hereby found and determined by the General Assembly that under conditions prescribed by the Alcoholic Beverage Control Division persons permitted to serve alcoholic beverages on the premises of a hotel, motel or restaurant should be authorized to serve alcoholic beverages at a large meeting or attendance facility; that this act so provides; and this act should go into effect as soon as possible in order to make more efficient the convention planning process in this state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1999, No. 910, § 4: effective on and after July 1, 1999.

Acts 1999, No. 910, § 8: July 1, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that the mixed drink tax bonding requirement is putting unnecessary hardship on the taxpayers in this state; that the current ABC renewal system prevents taxpayers from renewing their liquor permits if all tax obligations have not been fully satisfied; that the bonding requirement only serves to increase taxpayers' cost of doing business without providing any significant benefit to the state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on July 1, 1999.”

Acts 1999, No. 1371, § 5: Apr. 12, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-Second General Assembly that the provisions of this Act are of critical importance to the State of Arkansas and its business community. The State of Arkansas is losing businesses to other states due to the restrictions imposed on selling liquor in wet counties. The provisions of this Act are necessary to ensure that the restaurant industry in Arkansas stays in Arkansas and expands its business in this state. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2005, No. 445, § 2: Mar. 2, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the ability of a professional baseball facility to operate efficiently and effectively is hindered by existing laws governing the sale and purchase of alcoholic beverages; that baseball season will begin in a very short period of time; and that this act is immediately necessary to enable professional baseball facilities to immediately begin preparation for baseball season. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 1274, § 1: effective by its own terms Jan. 1, 2006.

Acts 2009, No. 1480, § 117: Apr. 10, 2009. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act makes various revisions to Arkansas election laws that are designed to improve the administration of elections and special elections and that these revisions should be implemented as soon as possible so that the citizens of this state may benefit from improved election procedures. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1008, § 2: emergency failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that an affected city, county, or political subdivision needs to be permitted to begin converting the purpose of an alcoholic beverage permit during the renewal period to avoid additional costs and the interruption of business. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2013, No. 1100, § 5: Apr. 11, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the law regarding the definition of ‘restaurant’ is necessary to avoid ambiguity in state law and the Arkansas Beverage Control Division's rules. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Case Notes

Applicability.

This subchapter does not, either expressly, by implication, or by operable effect, amend or violate § 3-8-201 et seq.Morris v. Torch Club, Inc., 295 Ark. 461, 749 S.W.2d 319 (1988).

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-9-201. Legislative determinations and intent.

The General Assembly reaffirms the policy of this state of strict enforcement of alcoholic beverage control laws and further reaffirms the policy of this state that the qualified electors of any city, county, or political subdivision thereof shall have the right of local option pursuant to Initiated Act No. 1 of 1942, as amended, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, to prohibit the manufacture or sale of intoxicating liquor therein.
The General Assembly further declares and recognizes the principle of freedom of choice of the people in any city or county in which the manufacture or sale of alcoholic beverages has not been prohibited to determine by a local referendum whether the sale of alcoholic beverages for on-premises consumption shall be authorized in the manner herein provided.
The General Assembly authorizes and directs all law enforcement officials to enforce strictly the alcoholic beverage laws of this state.
The General Assembly determines:
1. That the tourist and convention industries contribute substantially to the revenues of business enterprises in this state and that income from the tourist trade, conventions, and allied industries is essential to the continued well-being and prosperity of this state;
2. That there is extreme competition among states throughout the nation for the tourist and convention business; and
3. That all reasonable steps should be taken to retain, foster, and encourage this business and to create favorable competitive conditions therefor in this state.
In order to encourage tourists and conventions to come to Arkansas, it is essential that visitors to the state be provided accommodations, services, and facilities of a nature to which they are accustomed and competitive with those offered in other states and areas and especially states adjacent to Arkansas.
It is the intent and purpose of this subchapter to authorize the qualified electors of cities and counties in which the sale of alcoholic beverages is not prohibited by law to approve, by referendum election, the legal sale of alcoholic beverages for consumption on the premises of restaurants, hotels, and motels as defined herein.

History. Acts 1969, No. 132, § 1; A.S.A. 1947, § 48-1401.

Case Notes

Applicability of Other Laws.

A policy declaration that liquor laws should be strictly enforced is not a legislative declaration requiring the application of all existing statutes governing intoxicating liquor permits to the “on-premises consumption” type of permit. The General Assembly's directive that the board, in adopting rules and regulations governing qualifications for permits and otherwise implementing and effectuating the purposes of the acts, be guided by rules and regulations applicable to retail liquor licenses “insofar as pertinent” does not require application of the laws governing liquor permits generally. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Cited: Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983); Henard v. St. Francis Election Comm., 301 Ark. 459, 784 S.W.2d 598 (1990).

3-9-202. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Alcoholic beverages” means all intoxicating liquors of any sort, other than beer and wine as described and regulated in §§ 3-5-301 — 3-5-307, and 3-9-301 et seq., respectively;
“Bed and breakfast private club” means a corporation, partnership, individual, or limited liability corporation whose primary function is to provide overnight accommodations to the public, not exceeding a total of twenty (20) guest rooms on the premises, whether operated by the business owner or not, where the owner or a person representing the owner lives on the premises, where a breakfast meal is served to the lodging guest, and where no restaurant on the premises is open to the public except for the lodging guest;
“Board” means the Alcoholic Beverage Control Board of this state, or its successor agency;
“City” means any city of the first class or city of the second class in this state;
“Director” means the Director of the Alcoholic Beverage Control Division;
“Dry area” means any area in which the manufacture or sale of intoxicating liquor is prohibited by a local option election heretofore or hereafter held pursuant to the Initiated Act;
“Guest” means a person who orders and is served a meal inside a restaurant during regular hours;
“Hotel” means every building or other structure commonly referred to as a hotel, motel, motor hotel, motor lodge, or by similar name, which is kept, used, maintained, advertised, and held out to the public to be a place where food is actually served and consumed and sleeping accommodations are offered for adequate pay to travelers or guests, whether transient, permanent, or residential, in which fifty (50) or more rooms are used for the sleeping accommodations of such guests, and having one (1) or more public dining rooms with adequate and sanitary kitchen facilities, and a seating capacity for at least fifty (50) persons, where meals are regularly served to such guests, such sleeping accommodations and dining room being conducted in the same building or in separate buildings or structures used in connection therewith that are on the same premises and are a part of the hotel operation;
“Initiated Act” means Initiated Act No. 1 of 1942, as amended, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, which establishes the procedure for local option elections to prohibit the manufacture or sale of intoxicating liquor;
“Large event facility” means a facility that houses convention center activity, tourism activity, trade show and product display and related meeting activity, or any other similar large meeting or attendance activity and that either itself or through one (1) or more independent contractors complies with all of the following:
1. Serves full and complete meals and food on the premises;
2. Has one (1) or more places for food service on the premises with a seating capacity for not fewer than five hundred (500) people; and
3. Employs a sufficient number and kind of employees to serve meals and food on the premises capable of handling at least five hundred (500) people;
“Meal” means the usual assortment of food commonly ordered at various hours of the day;
“On-premises consumption” means the sale of alcoholic beverages by the drink or in broken or unsealed containers for consumption on the premises where sold;
“Person” means any natural person, partnership, association, or corporation;
1. 1. “Private club” means a nonprofit corporation organized and existing under the laws of this state, no part of the net revenues of which shall inure directly or indirectly to the benefit of any of its members or any other individual, except for the payment of bona fide expenses of the club's operations, and which is conducted for some common recreational, social, patriotic, political, national, benevolent, athletic, community hospitality, professional association, entertainment, or other nonprofit object or purpose other than the consumption of alcoholic beverages.
  2. The nonprofit corporation shall have been in existence for a period of not less than one (1) year before applying for a permit, as prescribed in this subchapter.
  3. At the time of application for the permit, the nonprofit corporation must have not fewer than one hundred (100) members and at the time of application must own or lease, be the holder of a buy-sell agreement or offer and acceptance, or have an option to lease a building, property, or space therein for the reasonable comfort and accommodation of its members and their families and guests and restrict the use of club facilities to those persons.
2. For purposes of this subdivision (14), a person shall be required to become a member of the private club in any wet area of the state only upon ordering an alcoholic beverage as defined under subdivision (1) of this section.
3. Furthermore, where the business entity that holds a private club permit additionally holds a retail beer permit, retail wine for consumption on the premises permit, or cafe or restaurant wine permit, the hours of operation authorized for the private club shall likewise apply to all permits of the business entity;
“Referendum election” means an election held as provided in this subchapter, at which the electors of a city or county shall vote on the question of authorizing, as provided herein, the sale of alcoholic beverages for on-premises consumption in those areas of the city or county in which the lawful sale of alcoholic beverages has not been prohibited by a local option election held pursuant to the Initiated Act; and
“Restaurant” means any public or private place:
1. 1. That is primarily engaged in the business of serving a meal for consumption on the premises to a guest and has a suitable kitchen facility to serve the entire menu approved by the Alcoholic Beverage Control Division.
  2. The menu shall contain a selection of food and shall not be limited to sandwiches or salads.
  3. The kitchen shall:
    1. Have adequate refrigeration to preserve the food on the menu;
    2. Be kept in a sanitary condition; and
    3. Comply with the rules of the Department of Health.
  4. Food from the menu shall be available from opening time until two (2) hours before closing time; or
2. 1. That qualifies as a “large meeting or attendance facility”, which is defined, without limitation, as a facility housing convention center activity, tourism activity, trade show and product display and related meeting activity, or any other similar large meeting or attendance activity and which either itself or through one (1) or more independent contractors complies with all of the following:
    1. Actually serves full and complete meals and food on the premises;
    2. Has one (1) or more places for food service on the premises with a seating capacity for not fewer than five hundred (500) people;
    3. Employs a sufficient number and kind of employees to serve meals and food on the premises capable of handling at least five hundred (500) people; and
    4. Serves alcoholic beverages on the premises at one (1) or more places only on days that meals and food are served at one (1) or more places on the premises.
  2. 1. Any on-premises restaurant permittee as licensed by subdivision (16)(A) of this section and any hotel or motel on-premises permittee as licensed by subdivision (8) of this section shall be allowed to serve alcoholic beverages purchased under its permit at any large meeting or attendance facility which is licensed under this subdivision (16)(B). Hotel, motel, and restaurant permittees may serve alcoholic beverages purchased under their permits only when they have first secured written permission from the permittee of the large meeting or attendance facility. Otherwise, alcoholic beverage service at the large meeting or attendance facility shall be from inventory purchased by the large meeting or attendance facility permittee.
    2. Written permission shall not be granted for more than a five-day period. The Alcoholic Beverage Control Division shall be given a copy of any such written agreement. Any violations which occur while such permission is being used shall lie against the hotel, motel, or restaurant using such permission.
    3. Any hotel, motel, or restaurant that serves its alcoholic beverages at a large meeting or attendance facility shall only do so pursuant to a satellite catering permit to be issued by the division for an annual fee of five hundred dollars ($500) per fiscal year or part thereof. The permit shall be applied for on forms as prescribed by the board.
    4. The board shall promulgate such rules as it deems necessary to implement subdivisions (16)(B)(ii)(a) -(c) of this section.
  3. When a large attendance facilities permit has been issued to a government-owned facility located in a county that has a population of more than one hundred fifty-five thousand (155,000) according to the 2000 Federal Decennial Census, Arkansas-licensed beer wholesalers shall be allowed to pay for advertising devices used at the government-owned facility. Such advertising devices shall include items such as inside or outside signs, scoreboards, programs, scorecards, and the like. Provided, if such advertising by the beer wholesaler results in the formation or existence of an exclusive buying arrangement by the large attendance facilities permittee and the wholesaler who furnishes such items, then such an exclusive buying arrangement will be a violation of the large attendance facilities permit and the wholesale beer permit involved even if the arrangements are caused by third parties. To the extent that § 3-5-214 or any other law could be interpreted to preclude such advertising arrangements allowed in this subdivision (16)(B)(iii), they are held inapplicable.
  4. 1. When a large attendance facilities permit has been issued to a facility owned or operated by the owner of a professional sports team franchised by Minor League Baseball and within a county that has a population of more than one hundred fifty-five thousand (155,000) according to the 2000 Federal Decennial Census, the operator of the facility may accept sponsorship funds, advertising items, or promotional items from licensed beer wholesalers. Promotional items shall include items used by the facility to promote attendance.
    2. However, if the use of sponsorship funds, advertising items, or promotional items by the beer wholesaler results in the formation or existence of an exclusive buying arrangement by the large attendance facilities permittee and the wholesaler who furnishes the sponsorship funds, advertising items, or promotional items, then the exclusive buying arrangement will be a violation of the large attendance facilities permit and the wholesaler's wholesale beer permit even if the arrangements are caused by third parties.
    3. Section 3-5-214 or any other law that could be interpreted to preclude arrangements to use the sponsorship funds, advertising items, or promotional items allowed in this subdivision (16)(B)(iv) shall not apply to this subdivision (16)(B)(iv).

History. Acts 1969, No. 132, § 2; 1985, No. 384, § 1; A.S.A. 1947, § 48-1402; Acts 1989, No. 295, § 3; 1989, No. 837, § 1; 1989, No. 953, § 1; 1993, No. 403, § 2; 1995, No. 536, § 2; 1995, No. 600, § 1; 1999, No. 1063, § 1; 1999, No. 1371, § 1; 1999, No. 1597, § 1; 2003, No. 369, § 1; 2003, No. 1813, § 1; 2005, No. 445, § 1; 2007, No. 642, § 1; 2011, No. 1194, § 2; 2013, No. 1100, §§ 1, 2; 2019, No. 315, §§ 96, 97.

A.C.R.C. Notes. Since the 1989 amendments to present subdivision (8)(A) of this section were substantively the same and varied only in style, the subdivision as amended by Acts 1989, No. 837, § 1 has been set out.

Amendments. The 2005 amendment substituted “§ 3-5-214” for “§ 3-5-314” in (8)(B)(iii); and added (8)(B)(iv).

The 2007 amendment, in (8)(B), substituted “one hundred fifty-five thousand (155,000)” for “three hundred thousand (300,000)” in (iii) and (iv)(a), and substituted “2000” for “1999” in (iii).

The 2011 amendment added present (9).

The 2013 amendment redesignated and rewrote former (14) as (16); and inserted present (7) and (11) and redesignated the remaining subdivisions accordingly.

The 2019 amendment substituted “rules” for “regulations” in (16)(A)(iii) (c) and (16)(B)(ii) (d)

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Alcoholic Beverages, 26 U. Ark. Little Rock L. Rev. 349.

Case Notes

Foreign Wines.

Foreign wines are included within the meaning of “alcoholic beverages” as stated in this section since it is obvious that the term embraces all intoxicating liquors of any sort except beer and native wine. Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983).

Private Clubs.

The prohibition of § 3-4-206 would not apply to the transfer of a private club permit for dispensation of alcoholic beverages by the drink or in broken or unsealed containers for consumption on the premises. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Where an applicant was not a non-profit organization with requisite number of dues-paying members which had been in existence for statutory period but had obtained a two year old charter from another county, amended it to change the address, and sold prospective memberships with no definite immediate purpose other than the consumption of alcoholic beverages, the applicant was not eligible to obtain a permit to sell alcoholic beverages in a dry county. Lassiter v. Kesterson, 284 Ark. 498, 683 S.W.2d 613 (1985).

Approval of a private-club permit was proper because a club established that it had a nonprofit purpose other than the consumption of alcohol under subdivision (14)(A)(i) of this section where it operated in conjunction with a restaurant and was designed to enhance the dining experience. Moreover, the Arkansas Alcoholic Beverage Control Division Board's interpretation of subdivision (14)(A)(i) was entitled to deference, and arguments relating to nonprofit status that were not fully developed before the Board were not preserved for appellate review. Barnes v. Ark. Dep't of Fin. & Admin., 2012 Ark. App. 237, 419 S.W.3d 20 (2012).

Cited: Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982); Fontana v. Gunter, 11 Ark. App. 214, 669 S.W.2d 487 (1984).

3-9-203. Applicability — Purpose and effect of referendum election.

The provisions of this subchapter authorizing on-premises consumption shall be effective only in cities and counties, or portions thereof, in which the manufacture or sale of intoxicating liquor is not prohibited as a result of a local option election held pursuant to Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, and in which the sale of alcoholic beverages for on-premises consumption has been approved by a majority vote at a referendum election as herein provided.
A favorable vote at a referendum election shall authorize on-premises consumption in licensed premises, as provided in this subchapter, in only those areas of the city or county which are not dry areas.
1. A referendum election held in a city shall be for the purpose of determining whether the sale of alcoholic beverages for on-premises consumption shall be authorized in the portions of the city in which the sale of alcoholic beverages is not otherwise prohibited by law.
2. A referendum election held in a county shall be for the purpose of determining whether the sale of alcoholic beverages for on-premises consumption shall be authorized in all areas of the county, including cities of the first class and second class and incorporated towns therein, in which the sale of alcoholic beverages is not otherwise prohibited by law.
1. A property owner's association with a population of five thousand (5,000) or more or a county, city, or town may authorize by ordinance the sale of alcoholic beverages for on-premises consumption under this subchapter if the property owner's association or the county, city, or town is located in or is a county that authorized the manufacture and sale of intoxicating liquor.
2. The authority of a county quorum court under subdivision (d)(1) of this section applies only to unincorporated areas of the county.

History. Acts 1969, No. 132, § 3; A.S.A. 1947, § 48-1403; Acts 2013, No. 1008, § 1; 2015, No. 383, § 1; 2017, No. 875, § 1.

Amendments. The 2013 amendment added (d).

The 2015 amendment added “property owner’s association with a population of five thousand (5,000) or more or a” to the beginning of (d); redesignated (d)(1) as part of (d) and deleted (d)(2); and inserted “the property owner’s association or a” preceding “city or town is located” in (d).

The 2017 amendment redesignated former (d) as (d)(1) and added (d)(2); in (d)(1), substituted “a county, city, or town” for “a city or town” following “(5,000) or more or”, substituted “the county, city, or town” for “a city or town” following “association or”, inserted “or is”, and deleted “after November 1, 2012” at the end.

3-9-204. Penalties.

Any person who shall violate any provision of §§ 3-9-201 — 3-9-214, 3-9-221 — 3-9-225, and 3-9-232 — 3-9-237 shall be guilty of a Class A misdemeanor.
Each violation shall constitute a separate offense.
The Director of the Department of Finance and Administration shall have the authority to suspend, cancel, or revoke the permit of any permittee so convicted.

History. Acts 1969, No. 132, § 16; A.S.A. 1947, § 48-1416; Acts 2005, No. 1994, § 336.

Amendments. The 2005 amendment, in (a), inserted “Class A” and deleted “and upon conviction may be fined not more than one thousand dollars ($1,000) and, in the discretion of the court, imprisoned for not more than six (6) months” from the end.

3-9-205. Rules — Police power of state and local governments.

The Alcoholic Beverage Control Board is authorized to adopt and enforce reasonable rules governing the qualifications for permits hereunder, the operation of licensed premises, and otherwise implementing and effectuating the provisions and purposes of this subchapter and, in so doing, shall be guided, insofar as pertinent, by rules now or hereafter applicable to retail liquor outlets.
Nothing in this subchapter, however, shall be construed as limiting the power of other proper state or local governmental bodies to regulate the operation of establishments under this subchapter as may be necessary for the protection of public health, welfare, safety, and morals.

History. Acts 1969, No. 132, § 12; 1973, No. 387, § 1; 1975, No. 137, § 1; A.S.A. 1947, § 48-1412; Acts 2019, No. 315, § 98.

Amendments. The 2019 amendment deleted “and regulations” following “rules” twice in (a).

Case Notes

Applicability of Other Laws.

The policy declaration of § 3-9-201 that liquor laws should be strictly enforced is not a legislative declaration requiring the application of all existing statutes governing intoxicating liquor permits to the “on-premises consumption” type of permit, and the General Assembly's directive that the board, in adopting rules and regulations governing qualifications for permits and otherwise implementing and effectuating the purposes of the acts, be guided by rules and regulations applicable to retail liquor licenses, “insofar as pertinent,” does not require application of the laws governing liquor permits generally. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Hours of Operation.

A city had the authority to enact an ordinance regulating the sale or consumption of mixed drinks at private clubs during certain hours of the day, since the state had not preempted the subject by statute or regulation, and this section provides that nothing in this section shall be construed to limit the power of local governmental bodies to regulate the operation of private clubs. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

The mere fact that the Alcoholic Beverage Control Board had never exercised its regulatory authority under this section by adopting specific operating hours for private clubs did not mean that private clubs had the right to remain open and serve or permit consumption of alcohol 24 hours a day; accordingly, a city ordinance prohibiting private clubs from serving or allowing consumption of mixed drinks between certain hours was enacted for the protection of public health, welfare, safety, and morals, and was not in conflict with the general law of the state. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

3-9-206. Referendum elections — Conduct.

A referendum election hereunder shall be conducted in accordance with the following:
1. A referendum election may be called in a city by resolution adopted by a majority vote of the governing body of the city or by petition filed with the city clerk signed by qualified electors of the city numbering not less than fifteen percent (15%) of the votes cast in the city for the office of Governor in the last general election in which the office appeared on the ballot; or
2. A referendum election may be called in a county by resolution adopted by a majority vote of the quorum court at any annual or special session thereof, or by petition filed with the county clerk signed by qualified electors of the county numbering not less than fifteen percent (15%) of the votes cast in the county for the office of Governor in the last general election in which the office appeared on the ballot.
1. The election shall be called by order of the quorum court in accordance with § 7-11-201 et seq. and held and conducted in accordance with § 7-11-201 et seq. and the results certified under the supervision of the county board of election commissioners in the manner provided by the election laws of this state.
2. The order of the quorum court shall fix the date of the election not more than ninety (90) days from the date of the order and give notice thereof by publication in a newspaper of general circulation in the city or county by at least two (2) insertions, the last being not less than ten (10) days prior to the election.
3. The county board shall tabulate the votes and certify the results to the county clerk within ten (10) days after the election.
The election shall be conducted on a citywide or countywide basis. All qualified electors within the city or county, as the case may be, shall be eligible to vote even though they reside in a dry area thereof.
On the ballot for the election shall be printed substantially the following:
The results of the election may be contested within the time and in the manner provided by law.
All matters concerning the sufficiency of the petitions and the conduct of the election not specifically provided for herein shall be determined in accordance with the initiative and referendum laws of this state applicable to cities and counties, respectively.

“FOR THE SALE OF ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION IN (NAME OF CITY OR COUNTY), ARKANSAS, AS AUTHORIZED IN ARKANSAS CODE § 3-9-201 ET SEQ. AGAINST THE SALE OF ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION IN (NAME OF CITY OR COUNTY), ARKANSAS, AS AUTHORIZED IN ARKANSAS CODE § 3-9-201 ET SEQ.”.

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History. Acts 1969, No. 132, § 4; A.S.A. 1947, § 48-1404; Acts 1997, No. 1010, § 5; 1997, No. 1060, § 5; 2001, No. 1475, § 5; 2005, No. 2145, § 2; 2007, No. 1049, § 3; 2009, No. 1480, § 2.

Amendments. The 2005 amendment added (b)(2)(B).

The 2007 amendment rewrote (b).

The 2009 amendment substituted “§ 7-11-201 et seq.” for “§ 7-5-103(b)” twice in (b)(1).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2001 Arkansas General Assembly, Election Law, 24 U. Ark. Little Rock L. Rev. 465.

3-9-207. Referendum elections — Effect.

In the event a majority of those voting in a referendum election under this subchapter shall vote for on-premises consumption, then permits may be issued by the Alcoholic Beverage Control Board to eligible hotels and to restaurants located in other than dry areas of the city or county and which otherwise comply with the provisions of this subchapter.
In the event a majority of those voting in a referendum election under this subchapter shall vote against on-premises consumption, an election shall not be held again on the issue in the same voting district for a period of one (1) year. However, an adverse vote in a countywide election shall not prohibit the calling of an election in a city in such county, nor shall an adverse vote in a city election prohibit the calling of an election in the county.
Successive referendum elections may be held in the same city or county to reverse the result of a previous election. However, there shall be a period of not less than one (1) year between each such election.
After a referendum election has initially been held, subsequent elections in the same city or county shall be held at the regular biennial November general election.

History. Acts 1969, No. 132, § 4; A.S.A. 1947, § 48-1404.

3-9-208. Subsequent local option elections.

If a dry city or county shall subsequently vote at a local option election held pursuant to the Initiated Act No. 1 of 1942, §§ 3-8-201 — 3-8-203 and 3-8-205 — 3-8-209, for the manufacture or sale of intoxicating liquors, a referendum election under this subchapter may not be held in such city or county for a period of six (6) months thereafter.
If a city or county has approved the sale of alcoholic beverages for on-premises consumption and dry areas within the city or county thereafter vote for the manufacture or sale of intoxicating liquors at a local option election pursuant to the Initiated Act, a referendum election under this subchapter need not be held again in the formerly dry areas, but permits may not be issued for on-premises consumption in such areas for a period of one (1) year thereafter.
If permits are issued hereunder in a city or county which subsequently prohibits the manufacture or sale of intoxicating liquors at a local option election pursuant to the Initiated Act, then all permits shall be deemed automatically revoked and shall be returned to the Alcoholic Beverage Control Board forthwith.

History. Acts 1969, No. 132, § 4; A.S.A. 1947, § 48-1404.

3-9-209. Sales without permit prohibited.

It shall be unlawful and constitute a Class A misdemeanor for any person not holding a valid permit issued hereunder to sell alcoholic beverages for on-premises consumption.

History. Acts 1969, No. 132, § 15; A.S.A. 1947, § 48-1415; Acts 2005, No. 1994, § 194.

Amendments. The 2005 amendment inserted “Class A.”

3-9-210. Permit to sell beverages — Issuance.

1. Any hotel or restaurant as defined in § 3-9-202 desiring to sell alcoholic beverages for on-premises consumption shall make application to the Director of the Alcoholic Beverage Control Division for a permit upon forms prescribed and furnished by the director and in accordance with the rules of the Alcoholic Beverage Control Board.
2. 1. If the hotel or restaurant is owned by a partnership, whether regular or limited, a nonpartner manager or operator may be issued the permit provided that he or she meets the other qualifications required by this section.
  2. The failure of one (1) or more partners to be residents of this state shall not be grounds for denial of the permit.
No applicant shall be authorized to make any such sales until a permit is approved and issued by the director.
The board shall have authority to require an applicant, under oath, to disclose the following information:
1. The name of the applicant;
2. Location of the hotel or restaurant;
3. Sufficient data to establish that the applicant meets the requirements of § 3-9-202;
4. The names and addresses of all owners of the hotel or restaurant;
5. That the applicant is a citizen or resident alien of the United States and a resident of Arkansas on the date of application, and if a corporation, duly qualified to do business in this state;
6. That neither the applicant nor any person to be employed in the serving of beverages authorized herein shall be a person who has been convicted within five (5) years of the date of his or her employment of any violation of the laws against possession, sale, manufacture, or transportation of intoxicating liquor, or convicted of a felony;
7. That the manager or operator of the hotel or restaurant seeking the permit is of good moral character and not a convicted felon; and
8. Such other relevant information as may be required.
Every permit issued under this subchapter shall be for an indeterminate period, subject to compliance with the annual renewal requirements herein prescribed and shall not be transferable or assignable, as to owner or premises, except upon the written approval of the director.

History. Acts 1969, No. 132, § 5; A.S.A. 1947, § 48-1405; Acts 1991, No. 606, § 7; 1997, No. 222, § 1; 2019, No. 315, § 99.

Publisher's Notes. Acts 1991, No. 606, § 11, provided:

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (a)(1).

3-9-211. Permit to sell beverages — Scope — Effect on other laws.

Any permit to sell alcoholic beverages for on-premises consumption shall include authority to sell beer for consumption on the same premises, and the provisions of § 3-5-307(7) and (8) shall not apply to premises covered by a permit issued under this subchapter.
An on-premises consumption permit shall not authorize the selling or dispensing of alcoholic beverages by the package or bottle.
1. Any permit to sell alcoholic beverages for on-premises consumption shall also include authority to sell native and imported wine by the drink.
2. However, nothing in this subchapter shall repeal subchapter 3 of this chapter regarding the licensing of restaurants to sell wines as authorized in those sections.
3. It is the intent hereof that a permit issued under this subchapter for sale of alcoholic beverages for on-premises consumption shall include authority to sell native or imported wines by the drink on the licensed premises, but any restaurant not wishing to obtain a license under this subchapter may obtain a license under subchapter 3 of this chapter to sell wines as authorized therein.
A permit to sell alcoholic beverages for on-premises consumption includes the authority to sell hard cider.

History. Acts 1969, No. 132, § 17; A.S.A. 1947, § 48-1417; Acts 2019, No. 691, § 21.

Amendments. The 2019 amendment added (d).

Case Notes

Cited: Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983).

3-9-212. Permit to sell beverages — Fees.

Each application for a permit to sell alcoholic beverages for on-premises consumption shall be accompanied by a permit fee in the following applicable amount:
An annual renewal fee in the same amount as provided in subsection (a) of this section shall be paid to the Director of the Alcoholic Beverage Control Division on or before June 30 of each calendar year for the fiscal year beginning July 1.
The fee for a permit issued between January 1 and July 1 shall be one-half (½) of the applicable amount specified in subsection (a) of this section.

Hotel, having fewer than 100 rooms $ 750 Hotel, having 100 or more rooms 1,500 Restaurant, having a seating capacity of less than 100 persons 750 Restaurant, having a seating capacity of 100 or more persons 1,500 Large meeting or attendance facility as defined in § 3-9-202(16)(B) 2,500.

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History. Acts 1969, No. 132, § 7; 1983, No. 420, § 1; A.S.A. 1947, §§ 48-313.1, 48-1407; Acts 2009, No. 294, § 20.

Amendments. The 2009 amendment, in (a), substituted “750” for “”500” twice, substituted “1,500” for “1,000” twice, and inserted “Large meeting or attendance facility as defined in § 3-9-202(8)(B)” and “2,500.”

3-9-213. Gross receipts and supplemental taxes on sale of alcoholic beverages.

The sale of alcoholic beverages pursuant to this subchapter shall be subject to the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., as amended.
1. In addition, there is levied a supplemental tax of ten percent (10%) upon the gross proceeds or gross receipts from the sale of alcoholic beverages pursuant to this subchapter.
2. 1. In addition to the tax levied under subdivision (b)(1) of this section, a supplemental tax of four percent (4%) is levied on the gross proceeds or gross receipts from the sale of alcoholic beverages under this subchapter.
  2. However, the tax levied under subdivision (b)(2)(A) of this section shall not apply to gross proceeds or gross receipts from the sale of beer or wine.
1. The supplemental tax shall be reported and paid to the Secretary of the Department of Finance and Administration in the same manner and at the same time as the gross receipts tax and shall be subject to such reasonable rules as the secretary may prescribe, including the maintenance of permanent records showing all purchases and sales of alcoholic beverages.
2. 1. The tax levied under subdivision (b)(2) of this section shall be credited as special revenues to the University of Arkansas Medical Center Fund.
  2. 1. The funds credited under subdivision (c)(2)(A) of this section shall be used exclusively for making loan repayments for construction projects authorized by Acts 1989 (1st Ex. Sess.), No. 261, until the loan is paid in full.
    2. After the Chancellor of the University of Arkansas for Medical Sciences certifies in writing to the Chief Fiscal Officer of the State that the loan has been repaid in full, then revenue from the tax collected under subdivision (b)(2) of this section may be used for any purpose authorized by law.
The taxes herein prescribed may be passed on to the consumer and shall be in lieu of all other special taxes at the retail level.
Wine shall not be defined as a mixed drink for the purposes of §§ 3-9-221 — 3-9-225 and shall not be subject to the supplemental tax of twelve percent (12%).
1. The Department of Finance and Administration shall notify the city or county of an audit for the supplemental tax on the sale of alcoholic beverages consumed on the premises if:
  1. The department audits a taxpayer;
  2. The department makes an assessment related to the audit against the taxpayer; and
  3. The taxpayer operates in a city or county that imposes a supplemental tax on the sale of alcoholic beverages consumed on the premises under § 3-9-214.
2. The city or county may use this information to administer its supplemental tax on the sale of alcoholic beverages consumed on the premises.
3. A city or county provided information under this subsection is subject to all of the confidentiality requirements of § 26-18-303.

History. Acts 1969, No. 132, § 8; 1983, No. 844, §§ 1, 5; A.S.A. 1947, §§ 48-1408, 48-1408n; Acts 1999, No. 910, § 1; 2003, No. 335, § 1; 2005, No. 1274, § 1; 2019, No. 315, § 100; 2019, No. 910, § 3349.

A.C.R.C. Notes. Acts 2005, No. 1274, § 1, amended subsection (b) of this section to change the supplemental tax from twelve percent (12%) to ten percent (10%) without also amending the reference to the twelve percent (12%) tax in subsection (e).

Amendments. The 2005 amendment redesignated former (b) and (c) as present (b)(1) and (c)(1); in present (b)(1), substituted “ten percent (10%)” for “twelve percent (12%)” and deleted the former last sentence; and added (b)(2) and (c)(2).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (c)(1).

The 2019 amendment by No. 910 substituted “secretary” for “director” twice in (c)(1).

Case Notes

Special Taxes.

No additional special tax, such as a hospitality tax, can be added to the mixed drink tax. City of Hot Springs v. Vapors Theatre Restaurant, 298 Ark. 444, 769 S.W.2d 1 (1989).

Wines.

Sales of foreign wines were not subject to the state and city supplemental taxes authorized by § 3-9-214 and this section, where the seller held both a wine permit and a mixed drink permit. Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983) (decision prior to 1983 amendment).

Cited: Faull v. Heath, 259 Ark. 145, 532 S.W.2d 164 (1976).

3-9-214. Supplemental tax or fee on sales levied by political subdivisions.

An additional fee or supplemental tax as levied under §§ 3-9-212 and 3-9-213 may also be levied upon any permittee under this subchapter by a city or incorporated town in which the licensed premises are located, or by the county if located outside the limits of a city or incorporated town.
However, in no event shall the fee or tax exceed the amount or rate provided in §§ 3-9-212 and 3-9-213.
All fees and taxes levied hereunder shall be collected by the city or county and shall be used for city or county general purposes as authorized by law.

History. Acts 1969, No. 132, § 9; A.S.A. 1947, § 48-1409.

Case Notes

Foreign Wines.

Sales of foreign wines were not subject to the state and city supplemental taxes authorized by § 3-9-213 and this section, where the seller held both a wine permit and a mixed drink permit. Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983) (decision prior to 1983 amendment to § 3-9-213).

Special Taxes.

No additional special tax, such as a hospitality tax, can be added to the mixed drink tax. City of Hot Springs v. Vapors Theatre Restaurant, 298 Ark. 444, 769 S.W.2d 1 (1989).

3-9-215. Authorization of Sunday sales on December 31.

When a Sunday falls on December 31 of any year, licensed restaurants and hotels authorized to sell alcoholic beverages under § 3-3-210 may automatically sell alcoholic beverages for on-premises consumption between the hours of 10:00 a.m. on Sunday and 2:00 a.m. on the following Monday unless the city, town, or county establishes by ordinance a lesser period of time within which alcoholic beverages may be sold for on-premises consumption by the licensed restaurants and hotels.

History. Acts 1987, No. 115, §§ 1-3; 1995, No. 192, § 1; 1995, No. 563, §§ 1, 2; 1997, No. 1010, § 4; 1997, No. 1060, § 4; 2009, No. 294, § 21.

Publisher's Notes. Acts 1995, No. 192 became law without the Governor's signature.

Acts 1997, No. 1010 became law without the Governor's signature.

Amendments. The 2009 amendment deleted all the text of the section except (b)(2), which was redesignated as (a), inserted “authorized to sell alcoholic beverage under § 3-3-210,” substituted “10:00 a.m.” for “12:00 noon,” inserted “town,” and made related and minor stylistic changes.

Research References

U. Ark. Little Rock L.J.

Survey—Miscellaneous, 10 U. Ark. Little Rock L.J. 593.

3-9-216. Authorization of sales for certain large attendance facilities and restaurants.

A large attendance facility under § 3-9-202(16)(B) in which pari-mutuel wagering has been authorized and which has a valid and current license or permit to sell alcoholic beverages for on-premises consumption may sell alcoholic beverages for on-premises consumption on any day of the week during hours in which the large attendance facility is open for business except on:
1. Christmas Day under § 3-3-211; and
2. 1. Easter Sunday.
  2. However, the large attendance facility may sell alcoholic beverages on Easter Sunday between the hours of 12:00 midnight and 2:00 a.m.
A restaurant under § 3-9-202(16)(A) may sell alcoholic beverages for on-premises consumption on Sundays between the hours of 12:00 midnight and 2:00 a.m. and on Sundays between the hours of 12:00 noon and 2:00 a.m. on the following Monday in addition to other times authorized by law for selling alcoholic beverages for on-premises consumption if the restaurant:
1. Is located in the same city as a large attendance facility authorized to sell alcoholic beverages for on-premises consumption on Sundays under subsection (a) of this section; and
2. Has a valid and current license or permit to sell alcoholic beverages for on-premises consumption.
This section does not:
1. Authorize the sale of alcoholic beverages in any city or county or in any portion of a city or county in which the sale of alcoholic beverages is prohibited by law; or
2. Repeal or modify any law that prohibits the sale of intoxicating alcoholic liquor, beer, or wine on Sunday unless the law specifically conflicts with this section.

History. Acts 2007, No. 1017, § 2; 2009, No. 7, § 1; 2009, No. 790, § 1; 2011, No. 982, § 3.

Amendments. The 2009 amendment by No. 7 inserted (b), and redesignated the following subsection accordingly.

The 2009 amendment by No. 790 rewrote (a); and made a minor stylistic change in (c).

The 2011 amendment substituted “alcoholic beverages” for “liquor” in (b)(1).

3-9-217 — 3-9-220. [Reserved.]

The General Assembly recognizes that:
1. Many individuals in this state serve mixed drinks containing alcoholic beverages to their friends and guests in the privacy of their homes and, in addition, that many individuals associated together in private nonprofit corporations established for fraternal, patriotic, recreational, political, social, or other mutual purposes as authorized by law, established not for pecuniary gain, have provided for their mutual convenience and for the preparation and serving to themselves and their guests mixed drinks prepared from alcoholic beverages owned by the members individually or in common under a so-called “locker”, “pool”, or “revolving fund” system;
2. Many individuals travel to this state to assemble at regional meetings and conventions to associate with other individuals who are members of professional and social organizations and that:
  1. Many of the restaurants and entertainment facilities used for the meetings and conventions promote the hospitality of the host communities where the restaurants, convention, and entertainment facilities are located;
  2. Many of the host organizations plan to serve mixed drinks containing alcoholic beverages to their friends and guests at these meetings and while entertaining and dining during these conventions; and
  3. Many of the host communities have individuals who have associated together in private nonprofit corporations established for recreational, social, community hospitality, professional association, entertainment, or other mutual purposes established, not for pecuniary gain, but for their mutual convenience and to provide for the preparation and serving to themselves and their guests mixed drinks prepared from alcoholic beverages owned by the members individually or in common under a so-called locker, pool, or revolving fund system; and
3. 1. 1. That there are a number of counties or parts of counties where the public retail sale of intoxicating liquors has not been approved by the voters.
    2. However, within those counties or parts of counties there are significant developments of tourism facilities and large-event facilities that promote the economic development of the state.
  2. To ensure that tourism and large-event facilities as well as other associated activities are allowed to exist to promote the economic development in the state, a new hotel or large-event facility private club permit, for use in those places where the public retail sale of intoxicating liquors is not authorized, should be created.
  3. These permits are necessary so that persons visiting hotels or large-event facilities in these areas will be able to enjoy the amenities that a person might find in other states.
  4. This additional permit will enhance the experience of going to hotels or large-event facilities that may display items of historic interest, contain extensive art collections, or host musical or dramatic presentations.
  5. 1. Further, since the counties or parts of counties in which these hotels or large-event facilities will be located do not allow the open public retail sale of intoxicating liquors, the nonprofit corporations that have been established to have the hotel facilities or the large-event facilities should be allowed to offer alcoholic beverages to members of the nonprofit corporations and their guests.
    2. These nonprofit corporations have been established for the purpose of operating a qualifying hotel or large-event facility private club or other mutual purposes, not for pecuniary gain, but for their mutual convenience and to provide for the preparation and serving to the members and their guests alcoholic beverages owned by the members individually or in common under a locker, pool, or revolving fund system.
1. In order to clarify the alcoholic beverage control laws of this state and to regulate and prohibit the sale of alcoholic beverages in violation of the provisions of this subchapter and other applicable alcoholic beverage control laws of this state, the General Assembly determines that the preparation, mixing, and serving of mixed drinks, beer, and wine for consumption only on the premises of a private club as defined in § 3-9-202(14) by the members thereof and their guests and the making of a charge for such services shall not be deemed to be a sale or be in violation of any law of this state prohibiting the manufacture, sale, barter, loan, or giving away of intoxicating liquor whenever:
  1. The alcoholic beverages, beer, and wine so consumed have been furnished or drawn from private stocks thereof belonging to such members, individually or in common under a so-called locker, pool, or revolving fund system and are replenished only at the expense of such members; and
  2. The private club has acquired a permit from the Alcoholic Beverage Control Board, in such form as the board may appropriately determine.
2. 1. A private club may serve any alcoholic beverage furnished or drawn under the provisions of subdivision (b)(1) of this section on the golf course on which the private club is located when the private club is hosting a professional golf tournament or other charitable golf tournament sponsored by a charitable organization described in 26 U.S.C. § 501(c)(3) and the Director of the Alcoholic Beverage Control Division has been notified by the private club at least sixty (60) calendar days prior to the beginning of the event.
  2. Persons attending the event shall be deemed guests of the private club, and the club may serve the alcoholic beverages to the guests for cash.
  3. The director may promulgate rules he or she deems necessary to implement this subdivision (b)(2).
In order to clarify the alcoholic beverage control laws of this state and to regulate and prohibit the sale of alcoholic beverages in violation of the provisions of this subchapter and other applicable alcoholic beverage control laws of this state, the General Assembly determines that the preparation, mixing, and serving of wine and beer for consumption only by the lodging guests on the premises of a bed and breakfast private club as defined in § 3-9-202(2) and the making of a charge for such services shall not be deemed to be a sale or to be in violation of any law of this state prohibiting the manufacture, sale, barter, loan, or giving away of intoxicating liquor whenever:
1. The wine and beer so consumed have been furnished or drawn from private stocks belonging to an owner of the bed and breakfast private club and are replenished only at the expense of such owner;
2. The wine and beer consumed must have been purchased in an Arkansas licensed retail alcoholic beverage store, as authorized by the director;
3. The average annual volume of wine and beer consumed shall not exceed three gallons (3 gals.) per month per guest room; and
4. The bed and breakfast private club has acquired a permit from the board in such form as the board may appropriately determine.

History. Acts 1969, No. 132, § 10; A.S.A. 1947, § 48-1410; Acts 1999, No. 1063, § 2; 2001, No. 584, § 1; 2003, No. 1813, § 2; 2011, No. 1194, § 1; 2019, No. 315, § 101.

Amendments. The 2003 amendment inserted the subdivision (a)(1) designation; in (a)(1), deleted “associations or” following “nonprofit,” deleted “of” preceding “mixed drinks” and made minor stylistic changes; and added (a)(2).

The 2011 amendment inserted (a)(3).

The 2019 amendment substituted “rules” for “regulations” in (b)(2)(C).

Research References

U. Ark. Little Rock L. Rev.

Justin Wayne Harper, Note: A Spirited Revolution: Local Option Elections and the Impending Death of Prohibition in Arkansas, 38 U. Ark. Little Rock L. Rev. 527 (2016).

Case Notes

Mandamus.

Mandamus was not the proper remedy where a petitioner was seeking an order for the Alcoholic Beverage Control Board to rescind and void all permits issued to private clubs pursuant to this subchapter because the constitutionality of this subchapter could be determined in a proceeding for declaratory judgment and because the petitioner was attempting to enforce an alleged duty which was not a plain ministerial duty for which a writ of mandamus could issue. Kemp-Bradford VFW Post 4764 v. Wood, 262 Ark. 168, 554 S.W.2d 344 (1977).

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983); Green House, Inc. v. Ark. ABC Div., 29 Ark. App. 229, 780 S.W.2d 347 (1989).

3-9-222. Private clubs — Procedure for obtaining permit.

1. Application for a permit to operate as a private club may be made to the governing body of the county or municipality in which the private club seeks to be located.
2. If the governing body of the county or municipality approves by ordinance an application for a permit to operate as a private club under subdivision (a)(1) of this section, the Alcoholic Beverage Control Division may issue a permit to operate as a private club to the applicant for the proposed location.
1. The application for a private club shall be submitted to the division and accompanied by an annual permit fee of one thousand five hundred dollars ($1,500).
2. The application for a bed and breakfast private club shall be submitted to the division and accompanied by an annual permit fee of seventy-five dollars ($75.00).
3. In an area in which the sale of intoxicating liquor has not been authorized by local option as provided under § 3-8-201 et seq., the application for a private club permit shall be submitted to the division and accompanied by an additional application fee of one thousand five hundred dollars ($1,500).
1. After filing an acceptable application with the Director of the Alcoholic Beverage Control Division, the applicant shall cause to be published at least one (1) time each week for four (4) consecutive weeks in a legal newspaper of general circulation in the city in which the premises are situated or, if the premises are not in a city, in a newspaper of general circulation for the locality where the business is to be conducted, a notice that the applicant has applied for a permit to dispense alcoholic beverages on the premises.
2. The notice shall be in such form as the director shall prescribe by rule or order and shall be verified.
3. The notice shall give the names of the managing agent and the nonprofit corporation or, in the case of a bed and breakfast private club, the name of the business owner, and shall state:
  1. That the manager, or in the case of a bed and breakfast private club, the owner, at least one (1) partner, or the majority stockholder is a citizen of Arkansas;
  2. That he or she is of good moral character;
  3. That he or she has never been convicted of a felony or had a license to sell or dispense alcoholic beverages revoked within the five (5) years preceding the date of the notice; and
  4. That he or she has never been convicted of violating the laws of this state or of any other state governing the sale or dispensing of alcoholic beverages.
1. Within five (5) days after filing an application for a permit to dispense alcoholic beverages on the premises, a notice of the application shall be posted in a conspicuous place at the entrance to the premises.
2. The applicant shall notify the director of the date when the notice is first posted.
3. No permit shall be issued to any applicant until proper notice has been so posted on the premises for at least thirty (30) consecutive days.
4. 1. The notice shall be in such form as the director shall prescribe by rule or order.
  2. The notice shall be:
    1. At least eleven inches (11") in width and seventeen inches (17") in height; and
    2. Printed in black lettering on a yellow background.
1. Upon receipt by the director of an application for a permit, written notice thereof, which shall include a copy of the application, the application shall immediately be mailed by the director to the sheriff, chief of police, if located within a city, prosecuting attorney of the locality in which the premises are situated, and city board of directors or other governing body of the city in which the premises are situated if within an incorporated area. The provisions of this section shall be retroactive to July 28, 1995.
2. No license shall be issued by the director until at least thirty (30) days have passed from the mailing by the director of the notices required by this section.
3. Upon receipt by the director within the thirty (30) days of a protest against the issuance of a permit by a governing official of the city or county to whom the notice of an application for permit has been mailed, the director shall not issue the license until he or she has held a public hearing.
Upon the director's determining that the applicant is qualified hereunder and that the application is in the public interest, a permit may be issued as authorized in this section.

History. Acts 1969, No. 132, § 10; 1975 (Extended Sess., 1976), No. 1016, § 1; A.S.A. 1947, § 48-1410; reen. Acts 1987, No. 949, § 1; 1989, No. 297, § 1; 1997, No. 1010, § 3; 1997, No. 1060, § 3; 1999, No. 1063, § 3; 2007, No. 735, § 3; 2009, No. 294, § 22; 2009, No. 763, § 5; 2017, No. 1112, § 1.

Amendments. The 2007 amendment deleted “and regulations” following “rules” in (a); substituted “four (4)” for “two (2)” in (c)(1); deleted “regulation” following “rule” in (c)(2) and (d)(4)(A); added (d)(4)(B); inserted “the application” preceding “shall” in (e)(1); and made related changes.

The 2009 amendment by No. 294, in (b), substituted “one thousand five hundred dollars ($1,500)” for “five hundred dollars ($500)” in (b)(1), and inserted (b)(3).

The 2009 amendment by No. 763 substituted “an area” for “a county” and ”additional application” for “annual permit” in (b)(3).

The 2017 amendment redesignated former (a) as (a)(1); substituted “governing body of the county or municipality in which the private club seeks to be located” for “Director of the Alcoholic Beverage Control Division in accordance with the rules of the Alcoholic Beverage Control Board” in (a)(1); added (a)(2); inserted “submitted to the division and” in (b)(1) through (b)(3).

Case Notes

Appeal.

A finding that a private club permit is not in the public interest is not supported by substantial evidence if that finding is based solely on the number, or official position of, the persons who oppose it. Green House, Inc. v. Ark. ABC Div., 29 Ark. App. 229, 780 S.W.2d 347 (1989).

On appeal from circuit court's affirmance of board's denial of permit, appellate court will review the decision of the board, not the decision of the circuit court. Green House, Inc. v. Ark. ABC Div., 29 Ark. App. 229, 780 S.W.2d 347 (1989).

Where the board has merely recited the testimony rather than translating that testimony into findings of fact, an appellate court will be unable to determine the board's view of the facts, or the theory of law on which the denial of permit was based, and will remand the case. Green House, Inc. v. Ark. ABC Div., 29 Ark. App. 229, 780 S.W.2d 347 (1989).

On appeal, the decision of the trial court was reversed and the Board's decision affirmed, where the trial court overturned the Board's decision on grounds not raised in the hearing below, and thereby improperly substituted its decision for that of the agency. Moore v. King, 328 Ark. 639, 945 S.W.2d 358 (1997).

Burden of Proof.

The burden is on the applicant for a permit under this section, to show that he is qualified to hold the permit and that the issuance of the permit is in the public interest, whereupon the board may issue the permit. Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982).

Denial of Permit.

The board's finding that proposed private club would be a detrimental influence on large numbers of children in the area was neither arbitrary nor capricious and was supported by substantial evidence. Ark. ABC Bd. v. King, 275 Ark. 308, 629 S.W.2d 288 (1982).

Factors Considered.

Factors to be considered by the alcoholic beverage control board before issuing a permit to operate a private club include: (1) the number and types of alcoholic permits in the area; (2) economic impact; (3) traffic hazards; (4) remoteness of the area; (5) degree of law enforcement available; (6) input from law enforcement or other public officials in the area; and (7) comments from area residents in opposition or support of the permit. Moore v. King, 56 Ark. App. 21, 937 S.W.2d 677 (1997).

Grant of Permit.

The board did not err in granting a private club permit. Department of Fin. & Admin. v. Samuhel, 51 Ark. App. 76, 909 S.W.2d 656 (1995).

Permit improperly granted to an applicant lodge where one of its members knowingly provided false information at the hearing and where another of its members had been convicted of illegally selling alcoholic beverages on lodge premises. Moore v. King, 56 Ark. App. 21, 937 S.W.2d 677 (1997).

Mandamus.

Transfers.

Cited: Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983); Barnes v. Ark. Dep't of Fin. & Admin., 2010 Ark. App. 436 (2010).

3-9-223. Private clubs — Permit renewal fees — Taxes.

1. A permit shall be renewed on or before June 30 of each calendar year for the fiscal year beginning July 1.
2. Any permit issued between January and July 1 of any year shall be at one-half (½) of the amount of the fee provided in § 3-9-222.
1. In addition, there is levied a supplemental tax of ten percent (10%) upon the gross proceeds or gross receipts derived by the private club from the charges to members for the preparation and serving of mixed drinks or for the cooling and serving of beer and wine, drawn from the private stocks of the members as provided in § 3-9-221, for consumption only on the premises where served.
2. In addition to the tax levied under subdivision (b)(1) of this section, a supplemental tax of four percent (4%) is levied on the gross proceeds or gross receipts derived by the private club from the charges to members for the preparation and serving of mixed drinks drawn from the private stocks of the members as provided in § 3-9-221 for consumption only on the premises where served.
1. The supplemental tax shall be reported and paid to the Secretary of the Department of Finance and Administration in the same manner and at the same time as the gross receipts tax under the Arkansas Gross Receipts Act of 1941, § 26-52-101 et seq., and shall be in addition to the tax.
2. 1. The tax levied under subdivision (b)(2) of this section shall be credited as special revenues to the University of Arkansas Medical Center Fund.
  2. 1. The funds credited under subdivision (c)(2)(A) of this section shall be used exclusively for making loan repayments for construction projects authorized by Acts 1989 (1st Ex. Sess.), No. 261, until the loan is paid in full.
    2. After the Chancellor of the University of Arkansas for Medical Sciences certifies in writing to the Chief Fiscal Officer of the State that the loan has been repaid in full, then revenue from the tax collected under subdivision (b)(2) of this section may be used for any purpose authorized by law.
The secretary shall promulgate reasonable rules for the enforcement and collection of the tax levied herein, including a requirement that each permittee maintain records showing all such charges made.
The taxes herein prescribed may be passed on to the members.
1. In addition to the fee or supplemental tax as levied herein, any city or incorporated town or any county in which the permitted premises are located, if located outside the limits of a city or incorporated town, may levy an additional permit fee or supplemental tax or both additional permit fee and supplemental tax not to exceed one-half (½) of the amount of the fee or rate provided in this section.
2. All fees and taxes levied hereunder by any city or county shall be used for city or county general purposes or for city or county economic development purposes.
Holders of a bed and breakfast private club permit are exempt from the supplemental taxes in subsections (b) and (f) of this section.
1. The Department of Finance and Administration shall notify the city or county of an audit for the supplemental tax on the sale of alcoholic beverages consumed on the premises if:
  1. The department audits a private club;
  2. The department makes an assessment related to the audit against the private club; and
  3. The private club operates in a city or county that imposes a supplemental tax on the sale of alcoholic beverages consumed on the premises under § 3-9-223(f).
2. The city or county may use this information to administer its supplemental tax on the sale of alcoholic beverages consumed on the premises.
3. A city or county provided information under this subsection is subject to all of the confidentiality requirements of § 26-18-303.

History. Acts 1969, No. 132, § 10; 1975 (Extended Sess., 1976), No. 1016, § 1; 1983, No. 420, § 1; 1983, No. 844, §§ 2, 5; A.S.A. 1947, §§ 48-313.1, 48-1410, 48-1410n; reen. Acts 1987, No. 949, § 1; 1995, No. 372, § 1; 1995, No. 405, § 1; 1997, No. 546, § 1; 1999, No. 1063, § 4; 2003, No. 335, § 2; 2005, No. 1274, § 2; 2019, No. 315, § 102; 2019, No. 910, §§ 3350, 3351.

Amendments. The 2003 amendment added (h).

The 2005 amendment substituted “ten percent (10%)” for “twelve percent (12%)” in (b)(1); rewrote (b)(2); redesignated former (c) as present (c)(1); and added (c)(2).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (d).

The 2019 amendment by No. 910 substituted “secretary” for “director” in (c)(1) and (d).

Case Notes

Purpose.

There is nothing ambiguous or unclear in the provisions of this subchapter since the intent and purpose as to private clubs clearly is to levy a supplemental tax on the gross proceeds or gross receipts from alcoholic beverages dispensed but not sold by the private clubs to its members and guests in the same percentage amount as is levied on the gross proceeds or gross receipts from the sale of alcoholic beverages through hotels, cafes, and other lawful channels where such sales are lawfully conducted. Faull v. Heath, 259 Ark. 145, 532 S.W.2d 164 (1976).

County or Municipal Fee or Tax.

Cities and incorporated towns have the authority to levy a permit fee “and/or” supplemental tax in addition to the fee and tax levied by the state pursuant to subsection (f) of this section. Cox v. City of Caddo Valley, 305 Ark. 155, 806 S.W.2d 6 (1991).

Substitution of “or” for “and/or” following “permit fee” in subsection (f) of this section upon codification was not authorized by the laws or the Constitution of Arkansas in effect at the time of the omission, change or modification, and thus the “and/or” language of former A.S.A. § 48-1410 is still controlling. Cox v. City of Caddo Valley, 305 Ark. 155, 806 S.W.2d 6 (1991).

Mandamus.

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983).

3-9-224. Private clubs — Sales prohibited.

No private club permitted hereunder shall sell alcoholic beverages either by the package or drink.
Alcoholic beverages, beer, and wine owned by members may be stored on the premises of the club.
If any permittee shall sell, barter, loan, or give away any intoxicating liquor in violation of this subchapter or other alcoholic beverage control laws of this state, the permit of the club shall be revoked.

History. Acts 1969, No. 132, § 10; A.S.A. 1947, § 48-1410.

Case Notes

Mandamus.

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983).

3-9-225. Private clubs — Rules.

The Alcoholic Beverage Control Board is authorized and directed to establish rules with respect to permits issued under the provisions of § 3-9-222 to assure compliance with the provisions hereof and to prohibit any permittee from engaging in the unlawful sale of alcoholic beverages.

History. Acts 1969, No. 132, § 10; A.S.A. 1947, § 48-1410; Acts 2019, No. 315, § 103.

Amendments. The 2019 amendment deleted “and regulations” following “Rules” in the section heading; and deleted “and regulations” following “rules”.

Case Notes

Local Regulations.

A city ordinance which prohibited private clubs from serving or allowing consumption of mixed drinks between certain hours was not contrary to § 3-2-205(b)(4), since the ordinance was not concerned with retail sales but with consumption on the premises of private clubs; nor was the penalty provision of the ordinance in conflict with §§ 3-3-206 — 3-3-210, since consumption at a private club is not a “sale.” Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

Mandamus.

Cited: Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979); Morris v. Torch Club, 278 Ark. 285, 645 S.W.2d 938 (1983).

3-9-226. Private clubs — Advertising — Definition.

As used in this section, “intoxicating liquor” means a beverage containing more than one-half of one percent (0.5%) of alcohol by weight.
It shall be unlawful for a private club, as defined in § 3-9-202, to use the advertising media to promote the consumption and use of alcoholic beverages or to advertise or announce the price of service of alcoholic beverages for on-premises consumption in a county where its voters have not authorized the sale of intoxicating liquor in a local option election under Initiated Act No. 1 of 1942, as amended, §§ 3-8-201 — 3-8-203, and 3-8-205 — 3-8-209.
1. A private club, regardless of whether or not the voters in the county authorized the sale of intoxicating liquor in a local option election, shall be entitled to use the advertising media to advertise or announce social functions of general interest, including without limitation:
  1. A golf tournament;
  2. A charity ball;
  3. An entertainment event; or
  4. A similar activity.
2. The social function shall be held within the confines of club property.
3. The advertising for the social function shall be preceded by the words “Notice to Members” and the name of the club or organization sponsoring such social activity.

History. Acts 1975, No. 901, § 1; A.S.A. 1947, § 48-955; Acts 2013, No. 527, § 5.

Amendments. The 2013 amendment rewrote the section.

Case Notes

Cited: Singleton v. Smith, 289 Ark. 577, 715 S.W.2d 437 (1986).

3-9-227. Large attendance facility mixed drink permit.

1. There is hereby created a large attendance facility mixed drink permit which is to be issued for any large attendance facility, as defined by § 3-9-202(16)(B), in which pari-mutuel wagering has been authorized by law.
2. Such permits may only be issued in cities of the first class in which the sale of alcoholic beverages is authorized by law.
1. The attendance qualifications for the large attendance facility mixed drink permit are the same as those currently provided for large attendance facilities as set out in § 3-9-202(16)(B).
2. The annual fee for the large attendance facility mixed drink permit is three thousand dollars ($3,000) per fiscal year.

History. Acts 1993, No. 1247, §§ 1, 2; 2009, No. 294, § 23.

Amendments. The 2009 amendment, in (b), inserted (b)(2), redesignated the remaining text accordingly, deleted “permit fees and” preceding “attendance qualifications” in (b)(1), and made a minor stylistic change.

3-9-228. Private clubs — Reapplication for permit.

Any person who has applied to the Director of the Alcoholic Beverage Control Division for a permit to operate as a private club in an area which has not elected to allow the sale of alcoholic beverages, and that application was denied, may reapply by following the procedures set forth in § 3-9-222 and the additional procedures provided for in subsection (b) of this section.
1. If the applicant is reapplying within two (2) years from the date an application was denied by the director, the application shall be accompanied by certification from the county clerk of the county where the private club is to be located certifying that the applicant obtained signatures from not less than twenty-five percent (25%) of the registered voters in the county.
2. The application shall be filed no later than twenty (20) days from the date that the county clerk certifies the petitions.
3. The signatures must be obtained on petitions which clearly state that the purpose of the petitions is to obtain an alcoholic beverage permit for a private club and to serve alcoholic beverages.
4. The person obtaining signatures shall verify the signatures by affidavit which is to be filed with the county clerk at the time of filing the petitions for certification.

History. Acts 1995, No. 1212, §§ 1, 2; 2005, No. 1245, § 1.

Amendments. The 2005 amendment substituted “two (2)” for “five (5)” in (b)(1).

3-9-229. Collection of taxes.

The Secretary of the Department of Finance and Administration may assess and collect delinquent state and local taxes from the owner or owners of the hotel or restaurant, file claims for unpaid taxes against bonds or other security required to be posted by the permittee, and enforce liens against assets held by the owner or owners. The Alcoholic Beverage Control Division may suspend or refuse to renew a permit held by a nonpartner if the hotel or restaurant owner fails to remit state taxes.

History. Acts 1997, No. 222, § 2; 2019, No. 910, § 3352.

Amendments. The 2019 amendment substituted “Secretary” for “Director”.

3-9-230, 3-9-231. [Reserved.]

No permit shall be issued under this subchapter unless the permittee has consented in writing that the licensed premises and its books and records shall be open at all times to all law enforcement and tax officials and officials of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Enforcement Division, and the Secretary of the Department of Finance and Administration without requirement of warrant or other legal process.
No organization holding a permit under this subchapter shall market, sell, or otherwise furnish the names of its members or any other information pertaining to its members to any other public or private entity, except as provided in subsection (a) of this section.

History. Acts 1969, No. 132, § 6; A.S.A. 1947, § 48-1406; Acts 2003, No. 654, § 1; 2019, No. 910, § 3353.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (a).

3-9-233. Closing hours.

The rules of the Alcoholic Beverage Control Board and existing laws with respect to the closing hours of licensed premises under this subchapter shall be applicable to all such licensed premises in the state, except that:
1. The governing body of a city in which hotel and restaurant licensed premises are located may fix by ordinance later closing hours for such hotel and restaurant licensed premises than are prescribed by state law or rules of the board for licensed premises generally. In that case, the closing hours for such hotel and restaurant licensed premises as provided by ordinance of the governing body of the city shall govern with respect to the licensed premises in the city; and
2. In any county of this state having a population of not less than fifty-three thousand (53,000) and not more than fifty-eight thousand (58,000) in which hotel and restaurant licensed premises are located outside the corporate limits of any municipality, the county court of the county may fix by order of the court later closing hours for the hotel and restaurant licensed premises than are prescribed by state law or rules of the board for licensed premises generally. In that case, the closing hours for the hotel and restaurant licensed premises located in the county outside of municipal limits shall be governed by the order of the county court.
However, under no circumstances may any licensed premises remain open more than two (2) hours after 12:00 midnight on Saturday night.

History. Acts 1969, No. 132, § 12; 1973, No. 387, § 1; 1975, No. 137, § 1; A.S.A. 1947, § 48-1412; Acts 2019, No. 315, § 104.

Amendments. The 2019 amendment substituted “rules” for “regulations” throughout (a).

Case Notes

City Ordinances.

The fact that the Alcoholic Beverage Control Board had never exercised its regulatory authority under this section by adopting specific operating hours for private clubs did not mean that private clubs had the right to remain open and serve or permit consumption of alcohol 24 hours a day; accordingly, a city ordinance prohibiting private clubs from serving or allowing consumption of mixed drinks between certain hours was enacted for the protection of public health, welfare, safety, and morals, and was not in conflict with the general law of the state. Tompos v. City of Fayetteville, 280 Ark. 435, 658 S.W.2d 404 (1983).

3-9-234. Failure to pay renewal fees or taxes.

If any permittee shall fail to remit any fee levied in this subchapter for the annual renewal of a permit within the time provided in § 3-9-223, the permit shall be revoked.
If any permittee shall fail to remit the supplemental tax upon gross receipts within the time provided in § 3-9-223, a penalty of twenty-five percent (25%) shall be due and payable. If such taxes plus penalty are not paid within thirty (30) days from the due date, the Director of the Alcoholic Beverage Control Division shall revoke the permit of the permittee, and the Secretary of the Department of Finance and Administration shall seek recovery of the amount of such taxes and penalties due from the permittee.

History. Acts 1969, No. 132, § 11; A.S.A. 1947, § 48-1411; Acts 1999, No. 910, § 2; 2019, No. 910, § 3354.

Amendments. The 2019 amendment substituted “Secretary” for “Director” in (b).

3-9-235. Suspension, cancellation, and revocation of permits.

Upon his or her own complaint or that of any law enforcement agency having jurisdiction over the permitted premises, the Director of the Alcoholic Beverage Control Division may suspend, cancel, or revoke any permit granted hereunder for violation by the permittee of any provision of this subchapter or any rule, regulation, or order of the Alcoholic Beverage Control Board.
Permits may be suspended, cancelled, or revoked for the following causes:
1. Conviction of the permittee for violating any of the provisions of this subchapter;
2. Willful failure or refusal by any permittee to comply with any of the provisions of this subchapter or of any rule or regulation adopted pursuant thereto;
3. The making of any materially false statement in any application for a permit;
4. The possession for sale on the permitted premises of any alcoholic beverages upon which applicable taxes have not been paid;
5. The willful failure of any permittee to keep any records or make any reports required by this subchapter or by any rule or regulation adopted thereunder or to allow an inspection of such records by any duly authorized person; and
6. The suspension or revocation of a permit issued to the permittee by the federal government or conviction of violating any federal law relating to alcoholic beverages.
No permit shall be suspended, cancelled, or revoked except after a hearing by the director with reasonable notice to the permittee and an opportunity for him or her to appear and defend as provided in § 3-2-212.
1. Appeals to the board from an order by the director of suspension, cancellation, or revocation may be had as provided by § 3-2-213.
2. Appeals from a decision of the board may be had as provided in § 3-2-216.

History. Acts 1969, No. 132, § 13; A.S.A. 1947, § 48-1413; Acts 1999, No. 910, § 3.

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Revocation and suspension procedure generally, §§ 3-2-212 — 3-2-217.

Case Notes

Appeals.

This section applies only to appeals from an order of the director suspending, cancelling, or revoking a permit issued under this subchapter. It has nothing to do with appeals from orders of the board granting a transfer of the location of an outstanding permit. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

Scope of Authority.

Although this section gives the director the power to suspend, cancel, or revoke a permit granted under the act for violation of this subchapter or any rule, regulation, or order of the board, it does not authorize any law enforcement agency having jurisdiction over the permitted premises to do so. Jones v. Reed, 267 Ark. 237, 590 S.W.2d 6 (1979).

3-9-236. Permittees — Miscellaneous unlawful practices.

It shall be unlawful and constitute a Class A misdemeanor for any person holding a permit hereunder or his or her agents, servants, or employees knowingly to do any of the following acts:

Serve any alcoholic beverage to a person who is under twenty-one (21) years of age;
Serve any alcoholic beverage to an intoxicated person, to any person who is known to be insane or mentally defective, to any person who is known to habitually drink alcoholic beverages to excess, or to any person who is known to be an habitual user of narcotics or other habit-forming drugs;
Sell alcoholic beverages at any prohibited time;
Place any sign of any description on the exterior of the permitted premises indicating that alcoholic beverages are sold for consumption therein;
Misrepresent the brand of any alcoholic beverage sold or offered for sale;
Keep any alcoholic beverage otherwise than in the bottle or container in which it was purchased;
Refill or partly refill any bottle or container of alcoholic beverage;
Dilute or otherwise tamper with the contents of any bottle or container of alcoholic beverage;
Fail to break and destroy by the close of each business day all empty bottles or containers;
Remove or obliterate any label, mark, or stamp affixed to any bottle or container of alcoholic beverage offered for sale;
Deliver or sell the contents of any bottles or containers, the label, mark, or stamp upon which has been removed or obliterated;
1. Employ any person less than twenty-one (21) years of age in the mixing or serving of alcoholic beverages.
2. Provided, that any permittee that has obtained a permit under the provisions of § 3-9-202(8) or § 3-9-202(16) may employ persons nineteen (19) years of age or older in the serving of alcoholic beverages.
3. Nothing herein shall prohibit a minor eighteen (18) years of age or older to be employed as a musician or to be employed in the preparation or serving of food or in the housekeeping department of any establishment authorized to dispense mixed drinks under this subchapter;
Allow any immoral, lewd, obscene, indecent, or profane conduct, language, literature, pictures, or materials on the permitted premises;
Consume or allow the consumption by any employee of intoxicating beverages while on duty;
1. Keep on the permitted premises a slot machine or any gambling or gaming device, machine, or apparatus, except as provided in subdivisions (15)(B) and (C) of this section.
2. 1. An event held by a nonprofit organization that is exempt from taxation under 26 U.S.C. § 501(c)(3) shall be exempt from subdivision (15)(A) of this section if:
    1. The nonprofit organization registers the event with the Alcoholic Beverage Control Division at least sixty (60) days before the event;
    2. All proceeds of the event are for the benefit of the nonprofit organization;
    3. The games in the event do not use money but may use some form of play money;
    4. No cash or any other item of value is won or awarded as a prize; and
    5. The event is for amusement and not for gambling purposes in violation of Arkansas law or Arkansas Constitution, Article 19, § 14.
  2. 1. This subdivision (15)(B) shall apply to only one (1) event held by a nonprofit organization during a calendar year.
    2. No licensed premises shall be allowed more than ten (10) events under this subdivision (15)(B) per calendar year.
  3. 1. A violation of this subdivision (15)(B) by a nonprofit organization is a violation and is punishable by a fine of one thousand dollars ($1,000).
    2. If a nonprofit organization commits a second violation of this subdivision (15)(B), the nonprofit organization shall be ineligible to sponsor an event under this subdivision (15)(B).
  4. The division may promulgate appropriate rules to carry out the intent of this subdivision (15)(B).
3. A gambling or a gaming device, machine, or apparatus under subdivision (15)(A) of this section does not include:
  1. Charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
  2. A lottery under the Arkansas Scholarship Lottery Act, § 23-115-101 et seq.;
Sell any alcoholic beverage unless the beverage is owned outright by the permittee;
1. Employ a person to serve an alcoholic beverage who has pleaded guilty or nolo contendere to or has been found guilty of:
  1. A violation of a law concerning possession, sale, manufacture, or transportation of intoxicating liquor; or
  2. A felony and is on probation or serving a suspended sentence as a result of the felony, except as provided under subdivisions (17)(B) and (C) of this section.
2. A person who has pleaded guilty or nolo contendere to or has been found guilty of a felony and who is on probation or serving a suspended sentence as a result of the felony may be employed by an on-premise permittee if:
  1. The person works only in a kitchen; and
  2. Alcoholic beverages are not served out of the kitchen.
3. A person who has pleaded guilty or nolo contendere to or has been found guilty of a felony and who is not on probation or serving a suspended sentence as a result of the felony may be employed by an on-premise permittee in any capacity;
Violate any rule, regulation, or order of the Alcoholic Beverage Control Board;
Fail to report all taxes applicable to the sale of alcoholic beverages for on-premises consumption; or
Possess on the permitted premises or sell or dispense any alcoholic beverages upon which the federal or state taxes have not been paid.

History. Acts 1969, No. 132, § 14; 1971, No. 467, § 1; A.S.A. 1947, § 48-1414; Acts 2003, No. 1807, § 2; 2005, No. 1170, § 1; 2005, No. 1994, § 195; 2009, No. 605, § 12; 2009, No. 606, § 12; 2013, No. 527, § 5[6].

Amendments. The 2003 amendment redesignated former (12) as present (12)(A) and (12)(C), and inserted (12)(B).

The 2005 amendment by No. 1170 redesignated former (15) as present (15)(A); inserted “except as provided in subdivision (15)(B) of this section” in present (15)(A); and added (15)(B)-(E).

The 2005 amendment by No. 1994 inserted “Class A” in the introductory language.

The 2009 amendment by identical acts Nos. 605 and 606 substituted “subdivisions (15)(B)-(C)” for “subdivision (15)(B)” in (15)(A); redesignated (15)(B); substituted “this subdivision (15)(B)” for “this section” or “this subdivision” throughout (15)(B); redesignated former (15)(C)-(E); substituted “by a nonprofit organization is a violation” for “is a misdemeanor” in (15)(B)(iii) (a) ; and inserted (15)(C).

The 2013 amendment rewrote (17).

Research References

U. Ark. Little Rock L. Rev.

Survey of Legislation, 2003 Arkansas General Assembly, Alcoholic Beverages, 26 U. Ark. Little Rock L. Rev. 349.

Survey of Legislation, 2005 Arkansas General Assembly, Alcoholic Beverages, 28 U. Ark. Little Rock L. Rev. 319.

3-9-237. Disposition of funds.

All permit fees and supplemental gross receipts taxes collected for the state pursuant to this subchapter shall be remitted monthly to the Treasurer of State as general revenues and be credited to the State Apportionment Fund. There the fees and taxes shall be allocated and transferred to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by, and shall be used for the respective purposes set forth in, the Revenue Stabilization Law, § 19-5-101 et seq.

History. Acts 1935, No. 108, Art. 4, § 5; 1953, No. 118, § 36(E); 1969, No. 132, § 18, as amended by Acts 1953, No. 118, § 36 as added by 1971, No. 585, § 12; A.S.A. 1947, § 48-1418.

3-9-238. Pari-mutuel mixed drink permit.

1. There is hereby created a pari-mutuel mixed drink permit which is to be issued for any restaurant, as defined by § 3-9-202, in any county where pari-mutuel wagering has been authorized by law.
2. The permits may be issued only in cities of the first class in which the sale of alcoholic beverages is authorized by law.
The permit fees and qualifications for the permits are the same as those currently provided for restaurants as set out in § 3-9-202. However, the seating capacity of these restaurants must be at least one hundred (100) seats.

History. Acts 1995, No. 1288, § 1; 2001, No. 804, § 1.

Publisher's Notes. Acts 1995, No. 1288 became law without the Governor's signature.

3-9-239. Small restaurant permit.

A restaurant that purchases five hundred sixty liters (560 l) of spirituous liquors or less from an entity holding a wholesale liquor permit may apply to the Director of the Alcoholic Beverage Control Division for a small restaurant permit.
1. If the small restaurant permit holder purchases more than five hundred sixty liters (560 l) of spirituous liquors in a fiscal year, the small restaurant permit holder shall apply for a permit under § 3-9-212.
2. A small restaurant permit holder shall pay the difference between the small restaurant permit fee and the permit fee authorized under § 3-9-212 for the current fiscal year.
3. The small restaurant permit holder shall submit documentation from the wholesalers itemizing the amount of spirituous liquors purchased from each wholesaler.
The annual fee for the small restaurant permit is three hundred dollars ($300) per fiscal year.

History. Acts 2009, No. 763, § 2.

A.C.R.C. Notes. Acts 2009, No. 763, § 2, assigned this section as § 3-4-608. However, pursuant to § 1-2-303, the Arkansas Code Revision Commission reassigned Acts 2009, No. 763, § 2, to § 3-9-239.

3-9-240. Hotel or large-event facility private club permit.

1. An application for a hotel or large-event facility private club permit shall be in writing and shall provide information concerning the applicant for the hotel or large-event facility private club permit and the premises to be used by the applicant as the Director of the Alcoholic Beverage Control Division requires.
2. A hotel or large-event facility private club permit may be issued only in a county or a territory of a county that does not allow the public retail sale of intoxicating liquors as provided under § 3-8-201.
The application for a hotel or large-event facility private club permit shall be accompanied by a check or money order for the amount required by this section for the hotel or large-event facility private club permit.
A hotel or large-event facility private club permit application shall contain a description of the premises permitted and provide proof that the space leased has at least:
1. Eighty (80) lodging rooms and five thousand square feet (5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; or
2. Ten thousand square feet (10,000 sq. ft.) of interior or exterior public meeting, banquet, exhibit hall, or restaurant space from a large-event facility.
If the director grants an application for a hotel or large-event facility private club permit, he or she shall issue a hotel or large-event facility private club permit in a form as determined by the rules of the Alcoholic Beverage Control Division.
1. A hotel or large-event facility private club permit authorizes the dispensing, service, and consumption of alcoholic beverages by and to members and their guests on the premises of a hotel or large-event facility private club permittee for on-premises consumption at a hotel or large-event facility leased to a hotel or large-event facility private club permittee.
2. The areas of a hotel or large-event facility that may be leased to a hotel or large-event facility private club permittee for purposes of a hotel or large-event facility private club permit include without limitation:
  1. Sleeping rooms;
  2. Pool-side bars;
  3. Banquet facilities;
  4. Restaurants;
  5. Lobbies;
  6. Exhibit halls;
  7. Patios; and
  8. Outdoor gardens.
3. Members of the hotel or large-event facility private club permittee that holds a hotel or large-event facility private club permit may move from one area to another area designated under subdivision (e)(2) of this section while consuming alcoholic beverages.
1. A hotel or large-event facility that leases all or a portion of its premises to a hotel or large-event facility private club permittee shall clearly identify the areas of the hotel or large-event facility that are leased to the hotel or large-event facility private club permittee.
2. 1. Areas leased by a hotel or large-event facility private club permittee that contain articles of historic interest or art or dramatic or musical presentations shall be open to members of the hotel or large-event facility private club permittee and to nonmembers of the hotel or large-event facility private club permittee.
  2. However, a person must be a member or the guest of a member of the hotel or large-event facility private club permittee to consume or possess alcoholic beverages dispensed by the hotel or large-event facility private club permittee.
3. Persons under twenty-one (21) years of age may be allowed on the premises of the hotel or large-event facility private club permittee.
4. 1. A hotel holding a hotel or large-event facility private club permit under this section may lease a sleeping room to a hotel or large-event facility private club permittee for the service of alcoholic beverages.
  2. The hotel holding a hotel or large-event facility private club permit may use room service to serve the alcoholic beverage.
  3. The hotel holding a hotel or large-event facility private club permit may stock the leased sleeping room with alcoholic beverages, and the hotel or large-event facility private club permittee through the hotel's employees shall inventory the alcoholic beverages in the leased sleeping room.
  4. Sleeping rooms that are solely occupied by persons twenty (20) years of age and under shall not receive alcoholic beverages through room service or be stocked with alcoholic beverages.
5. A hotel or large-event facility that leases space to a hotel or large-event facility private club permittee shall provide a means of entering the hotel or large-event facility to allow a person to knowingly decide if he or she would like to become a member of the hotel or large-event facility private club permittee.
1. A hotel leasing its premises to a hotel or large-event facility private club permittee may include a membership application to the hotel or large-event facility private club permittee as part of its registration materials.
2. A guest of a hotel becoming a member of the hotel or large-event facility private club permittee shall receive a membership card.
3. A hotel that includes a membership application to the hotel or large-event facility private club permittee as part of its registration materials shall retain the registration materials as required by the division.
4. A hotel or large-event facility private club permittee may refuse a membership or revoke a membership of a person that does not abide by the hotel or large-event facility private club permittee rules.
1. 1. For a hotel, the application and renewal fee for a hotel or large-event facility private club permit is one thousand five hundred dollars ($1,500) per year payable on or before June 30 of each calendar year for the fiscal year beginning July 1.
  2. In an area in which the sale of intoxicating liquor has not been authorized by local option as provided under § 3-8-201 et seq., the application for a hotel or large-event facility private club permit shall be accompanied by an additional application fee of one thousand five hundred dollars ($1,500).
2. The application and renewal fee for a large-event facility for a hotel or large-event facility private club permit is two thousand five hundred dollars ($2,500) per year payable on or before June 30 of each calendar year for the fiscal year beginning July 1.
The director shall promulgate rules to enforce this section.

History. Acts 2011, No. 1194, § 3; 2013, No. 1123, §§ 2, 3.

Amendments. The 2013 amendment inserted “holding a hotel or large-event facility private club permit” in (f)(4)(B) and (f)(4)(C); in (h)(1)(A), substituted “the renewal fee for” for “by” and “is” for “shall be accompanied by an annual permit fee of” and inserted “per year payable on or before June 30 of each calendar year for the fiscal year beginning July 1”; and deleted (h)(1)(C) and redesignated the remaining subdivisions accordingly.

3-9-241. Posting information about the National Human Trafficking Resource Center hotline.

An entity governed by this subchapter shall post information about the National Human Trafficking Resource Center hotline as required under § 12-19-102.

History. Acts 2013, No. 1157, § 1.

Subchapter 3 — Wine

Effective Dates. Acts 1971, No. 585, § 34: approved Apr. 6, 1971. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to establish an orderly procedure which will insure the monthly and quarterly distribution of funds for the necessary services and operations of the state government, as provided for in this act, it is necessary that the provisions of this act become effective immediately; that under the provisions of this act seriously needed improvements for many of our public institutions are contemplated, and only the provisions of this act will provide such funds which will be adequate to alleviate this situation; and that only the provisions of this act will correct many of our financial difficulties, and which otherwise may deprive the citizens of this state from receiving the benefits which the operation of state government contemplates. Therefore, an emergency is hereby declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage.”

Acts 1979, No. 141, § 3: Mar. 23, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to selling and serving wine with meals in restaurants is unduly restrictive; that it is unfair and discriminatory to deny persons in smaller cities and other areas an opportunity to have wine service with their meals in restaurants; that this act is designed to alleviate this situation and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 545, § 3: Feb. 16, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law relating to selling and serving wine with meals in restaurants is unduly restrictive in that it permits the same only in restaurants located in cities having a population of 15,000 or more; that it is unfair and discriminatory to deny persons in smaller cities located in said counties an opportunity to have wine service with their meals in restaurants while permitting the same in larger cities; that this act is designed to alleviate this situation and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 2013, No. 1100, § 5: Apr. 11, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the law regarding the definition of “restaurant” is necessary to avoid ambiguity in state law and the Arkansas Beverage Control Division's rules. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.

3-9-301. Definitions.

As used in this subchapter, unless the context otherwise requires:

“Director” means the Director of the Alcoholic Beverage Control Division;
“Guest” means a person who orders and is served a meal inside a restaurant during regular hours;
1. “License” means a license to sell wine in a restaurant or cafe.
2. An annual fee of three hundred dollars ($300) shall be paid for each license or renewal of a license.
3. All moneys derived from the annual fees shall be deposited into the State Treasury as general revenues to the credit of the State Apportionment Fund, to be allocated and transferred to the various funds, fund accounts, and accounts participating in general revenues in the respective proportions to each as provided by law, and to be used for the respective purposes set forth in the Revenue Stabilization Law, § 19-5-101 et seq.;
“Meal” means food commonly ordered at various hours of the day;
“Person” means any person, firm, partnership, association, or corporation;
1. “Restaurant” or “cafe” means a place of business that is regularly used to serve a meal to a guest for compensation and has a suitable kitchen facility to serve an entire menu approved by the Alcoholic Beverage Control Division.
2. The menu shall contain a selection of food and shall not be limited to sandwiches or salads.
3. The kitchen shall:
  1. Have adequate refrigeration to preserve the food on the menu;
  2. Be kept in a sanitary condition; and
  3. Comply with the rules of the Department of Health.
4. 1. The Alcoholic Beverage Control Board is authorized and directed to establish appropriate rules defining “established eating places” to the extent that licenses granted under the provisions of this subchapter shall be issued only to those business establishments whose principal business is serving food for consumption on the premises.
  2. However, a drive-in shall not be classified as an established eating place; and
“Wine” or “wines” means any port wine, sherry wine, vermouth wine, or other wines, the alcoholic content of which does not exceed twenty-one percent (21%), regardless of whether the wines are manufactured within or without the State of Arkansas.

History. Acts 1965, No. 120, § 1; 1971, No. 441, § 2; 1971, No. 585, § 12; A.S.A. 1947, § 48-626; Acts 2005, No. 1247, § 1; 2009, No. 294, § 24; 2013, No. 1100, §§ 3, 4; 2019, No. 315, §§ 105, 106.

Amendments. The 2005 amendment substituted “twenty-one percent (21%)” for “fourteen percent (14%)” in (2).

The 2009 amendment redesignated (3), deleted “as defined herein” following “cafe” in (3)(A), substituted “three hundred dollars ($300)” for “fifty dollars ($50.00)” in (3)(B), and made minor stylistic changes.

The 2013 amendment redesignated former (4)(A) as (6)(A) and rewrote it; inserted present (2), (4), (6)(B), and (6)(C) and redesignated the remaining subdivisions accordingly; and substituted “Alcoholic Beverage Control Board” for “board” in (6)(D)(i).

The 2019 amendment substituted “rules” for “regulations” in (6)(C)(iii); and deleted “and regulations” following “rules” in (6)(D)(i).

Case Notes

Cited: Tiffany's Restaurants, Inc. v. City of Little Rock, 280 Ark. 402, 658 S.W.2d 394 (1983).

3-9-302. Penalties.

If any cafe or restaurant licensed to sell wine as authorized in this subchapter shall violate any of the provisions of this subchapter or any of the provisions of other laws of this state regarding the sale of wine at retail, the owner or operator of the cafe or restaurant shall be guilty of a Class B misdemeanor.

History. Acts 1965, No. 120, § 6; 1971, No. 441, § 4; A.S.A. 1947, § 48-631; Acts 2005, No. 1994, § 376.

Amendments. The 2005 amendment inserted “Class B” and deleted the former second sentence, which stated: “Upon conviction, the owner or operator shall be fined in the sum of not less than one hundred dollars ($100) nor more than five hundred dollars ($500) or imprisoned in the county jail not less than ten (10) days nor more than thirty (30) days, or be both so fined and imprisoned.”

3-9-303. Sale by licensed cafe or restaurant authorized — Restrictions.

It shall be lawful for a cafe or restaurant, as defined in § 3-9-301, in this state to sell wines, as defined in § 3-9-301, or hard cider, for consumption with food served in the cafe or restaurant upon obtaining a license, and paying the fee therefor, from the Director of the Alcoholic Beverage Control Division as provided in this subchapter.
However, it shall be unlawful for the director to issue a license to a cafe or restaurant for sales of wine or hard cider served with food in a city, county, township, or other area in this state wherein the sale and possession of wines or hard cider is unlawful.
All licenses shall be renewed annually in the manner provided by law.
The holder of a license to sell wine or hard cider in a restaurant or cafe, as defined in § 3-9-301, which is located in any city having a population of less than six hundred (600) persons and in a county having a population of less than seventeen thousand five hundred (17,500) persons according to the 1990 Federal Decennial Census and within three (3) miles of a river which serves as a common boundary between that county and another state shall be entitled, in addition to other privileges inherent under the permit, to sell wine or hard cider in unopened containers from such restaurant for off-premises consumption.

History. Acts 1965, No. 120, § 2; 1971, No. 441, § 3; 1979, No. 141, § 1; 1979, No. 545, § 1; A.S.A. 1947, § 48-627; Acts 1989, No. 299, § 1; 1999, No. 1064, § 1; 2019, No. 691, § 22.

Amendments. The 2019 amendment inserted “or hard cider” in (a), twice in (b), and twice in (d); and made stylistic changes.

3-9-304. Sale by restaurant located near certain cities.

A restaurant, as defined in § 3-9-301, that is located within two (2) miles of a city having a population of at least fifty-five thousand (55,000) but not more than sixty thousand (60,000) persons according to the 1970 Federal Decennial Census, and in an area in which the sale of alcoholic beverages is lawful, shall be entitled to make application for and obtain a permit to serve wine or hard cider, or both, with food in such restaurants in the manner prescribed in this subchapter.

History. Acts 1979, No. 687, § 1; A.S.A. 1947, § 48-627.1; Acts 2019, No. 691, § 23.

Amendments. The 2019 amendment inserted “or hard cider, or both”; and made stylistic changes.

3-9-305. License applications — Qualifications.

A license shall not be issued to a person authorizing the sale of wine or hard cider, or both, at retail for consumption on the premises with food served in any cafe or restaurant unless the person files with the Director of the Alcoholic Beverage Control Division a verified application therefor, accompanied by the fee required by law, and shall state in the application that he or she possesses the following qualifications:
1. The applicant is a person of good moral character, a citizen or resident alien of the United States, and a resident of the county in which the permit will be operated, or resides within thirty-five (35) miles of the address of the premises described in the application;
2. The applicant has not been convicted of a felony or has not been convicted within five (5) years of the date of his or her application of any violation of the laws of this state or any other state relating to alcoholic beverages;
3. The applicant has not had revoked within five (5) years next preceding his or her application any license issued to him or her pursuant to the laws of this state or any other state to sell alcoholic liquor of any kind;
4. The applicant shall be the owner of the premises for which the license is sought or the holder of an existing lease, buy-sell agreement, offer and acceptance, or option to lease thereon;
5. If the applicant is a copartner, all members of the copartnership must be qualified to obtain a license;
6. 1. 1. If the applicant is a corporation, the president and directors thereof, any stockholder owning more than five percent (5%) of the stock of such corporation who is not exempted under subdivision (6)(A)(ii) of this section, and the person or persons who shall conduct and manage the licensed premises for the corporation shall possess all the qualifications required herein for an individual license.
    2. An applicant is not required to state the identity of its shareholders who are not the president or the director when the corporation:
      1. Is publicly traded on a nationally recognized stock exchange; or
      2. Holds at least ten (10) permits issued by the Alcoholic Beverage Control Division for the sale of alcoholic beverages.
  2. The requirement as to residence in the United States or citizenship of the United States shall not apply to officers, directors, and stockholders of the corporation, but the requirement shall apply to any officer, director, or stockholder who is also the manager of the licensed premises in any capacity in the conduct or operation of the licensed premises; and
7. The cafe or restaurant making application for the license is primarily engaged in the business of serving foods to the public prepared for consumption on the premises and must be an established eating place within the rules promulgated by the Alcoholic Beverage Control Board as provided in § 3-9-301(6).
Any misstatement or concealment of fact in the application shall be grounds for the revocation of any license issued pursuant to the application.

History. Acts 1965, No. 120, § 3; A.S.A. 1947, § 48-628; Acts 1989, No. 295, § 2; 1991, No. 606, § 8; 1995, No. 536, § 3; 1999, No. 948, § 2; 2013, No. 325, § 4; 2019, No. 315, § 107; 2019, No. 691, § 24.

Publisher's Notes. Subdivision (a)(2) of this section may be superseded by § 17-1-103 which provides for the removal of an automatic disqualification for criminal convictions in obtaining permits and licenses for professions, trades, or occupations.

Acts 1991, No. 606, § 11, provided:

Amendments. The 2013 amendment rewrote (a)(6)(A).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (a)(7).

The 2019 amendment by No. 691 inserted “or hard cider, or both” and substituted “files” for “shall file” in the introductory language of (a); and made stylistic changes.

3-9-306. Prohibited acts.

A holder of a license authorizing the sale of wine or hard cider, or both, for consumption with food served on the premises where sold, or a servant, agent, or employee of the licensee, shall not do any of the following upon the licensed premises:

Knowingly sell wine or hard cider to a minor;
Knowingly sell wine or hard cider to a person while the person is in an intoxicated condition;
Sell wine or hard cider upon the licensed premises or permit wine or hard cider to be consumed thereon on any day or at any time when the sale or consumption is prohibited by law; or
Permit on the licensed premises any disorderly conduct, breach of peace, or any lewd, immoral, or improper entertainment, conduct, or practices.

History. Acts 1965, No. 120, § 4; A.S.A. 1947, § 48-629; Acts 2019, No. 691, § 25.

Amendments. The 2019 amendment inserted “or hard cider” throughout the section; inserted “or both” in the introductory language; and made stylistic changes.

Cross References. Sales on Christmas Day, § 3-3-211.

Sale on Sunday, § 3-3-210.

3-9-307. Revocation or suspension of license.

Proceedings for the revocation or suspension of any license issued pursuant to the provisions of this subchapter shall be in the same manner as provided by law for revocation or suspension of licenses for sale of beer for consumption on the premises.

History. Acts 1965, No. 120, § 5; A.S.A. 1947, § 48-630.

Cross References. Revocation or suspension of licenses generally, §§ 3-2-212 — 3-2-217.

Subchapter 4 — Sunday Sales

A.C.R.C. Notes. For current laws authorizing on-premises sales of alcoholic beverages on Sundays, see §§ 3-3-210, 3-9-215, and 3-9-216.

3-9-401 — 3-9-413. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 2009, No. 294, § 25. The subchapter was derived from the following sources:

3-9-401. Acts 1987, No. 766, § 1.

3-9-402. Acts 1987, No. 766, § 2; 1989, No. 837, § 2; 1989, No. 868, § 1.

3-9-403. Acts 1987, No. 766, § 11; 2005, No. 1994, § 337.

3-9-404. Acts 1987, No. 766, § 3; 1995, No. 563, § 3; 2007, No. 1017, § 3.

3-9-405. Acts 1987, No. 766, § 4; 1991, No. 606, § 9.

3-9-406. Acts 1987, No. 766, § 5.

3-9-407. Acts 1987, No. 766, § 6; 1995, No. 563, § 4; 1999, No. 319, § 3.

3-9-408. Acts 1987, No. 766, § 7.

3-9-409. Acts 1987, No. 766, § 8.

3-9-410. Acts 1987, No. 766, § 9; 1995, No. 563, § 5.

3-9-411. Acts 1987, No. 766, § 10; 1995, No. 563, § 6.

3-9-412. Acts 1987, No. 766, § 12.

3-9-413. Acts 1989, No. 868, § 3.

Subchapter 5 — Sunday Beer and Wine Permit

A.C.R.C. Notes. For current laws authorizing on-premises sales of alcoholic beverages on Sundays, see §§ 3-3-210, 3-9-215, and 3-9-216.

3-9-501 — 3-9-507. [Repealed.]

Publisher's Notes. This subchapter was repealed by Acts 2009, No. 294, § 26. The subchapter was derived from the following sources:

3-9-501. Acts 1995, No. 715, § 1; 2005, No. 1247, § 2.

3-9-502. Acts 1995, No. 715, § 5.

3-9-503. Acts 1995, No. 715, § 2.

3-9-504. Acts 1995, No. 715, § 3.

3-9-505. Acts 1995, No. 715, § 4.

3-9-506. Acts 1995, No. 715, § 6.

3-9-507. Acts 1995, No. 715, § 7.

Subchapter 6 — Wine and Beer On-Premises License

3-9-601. Definitions.

As used in this subchapter:

“Director” means the Director of the Alcoholic Beverage Control Division;
1. “License” means a license to sell wine for consumption on the premises.
2. 1. An annual fee of five hundred dollars ($500) shall be paid for each license or renewal.
  2. All moneys derived from such fees shall be deposited in the State Treasury as general revenues to the credit of the State Apportionment Fund;
“Person” means any person, firm, partnership, association, or corporation; and
“Wine” or “wines” means any port, sherry, vermouth, or other wine, the alcoholic content of which does not exceed twenty-one percent (21%) by weight, regardless of whether the wines are manufactured within or without the State of Arkansas.

History. Acts 1999, No. 856, § 1; 2005, No. 1247, § 3; 2009, No. 294, § 27.

Amendments. The 2005 amendment substituted “twenty-one percent (21%)” for “fourteen percent (14%)” in (4).

The 2009 amendment substituted “five hundred dollars ($500)” for “three hundred dollars ($300)” in (2)(B)(i).

3-9-602. Sale by licensed facility authorized — Restrictions.

It is lawful for a facility in this state to sell wines or hard cider for consumption on the premises upon obtaining a license from the Director of the Alcoholic Beverage Control Division and paying the fee therefor, as provided in this subchapter.
However, it shall be unlawful for the director to issue a license to a facility for sales of wine or hard cider, or both, for consumption on the premises in a city, county, township, or other area in this state wherein the sale and possession of wines or hard cider is unlawful.
All licenses shall be renewed annually in the manner as is provided by law.

History. Acts 1999, No. 856, § 3; 2019, No. 691, § 26.

Amendments. The 2019 amendment inserted “or hard cider” in (a) and twice in (b); inserted “or both” in (b); and made stylistic changes.

3-9-603. License applications — Qualifications.

A license shall not be issued to a person authorizing the sale of wine or hard cider, or both, at retail for consumption on the premises unless the person files with the Director of the Alcoholic Beverage Control Division a verified application therefor accompanied by the fee required by law and states in the application that he or she possesses the following qualifications:
1. The applicant is a person of good moral character, a citizen or resident alien of the United States, and a resident of the county in which the permit will be operated or resides within thirty-five (35) miles of the address of the premises described in the application;
2. The applicant must be a resident of the State of Arkansas on the date of the application and maintain such residency within the state as a continuing qualification to hold the permit issued by the Director of the Alcoholic Beverage Control Division;
3. The applicant has never been convicted of a felony or has not been convicted within five (5) years of the date of his or her application of any violation of the laws of this state or any other state relating to alcoholic beverages;
4. The applicant has not had revoked within five (5) years immediately preceding his or her application any license issued to him or her pursuant to the laws of this state or any other state to sell alcoholic liquor of any kind;
5. The applicant must be the owner of the premises for which the license is sought or the holder of an existing lease, buy-sell agreement, offer and acceptance, or option to lease thereon;
6. If the applicant is a copartner, all members of the copartnership must be qualified to obtain a license; and
7. 1. 1. If the applicant is a corporation, the president and directors thereof, any stockholder owning more than five percent (5%) of the stock of such corporation who is not exempted under subdivision (a)(7)(A)(ii) of this section, and the person or persons who shall conduct and manage the licensed premises for the corporation shall possess all the qualifications required herein for an individual license.
    2. An applicant is not required to state the identity of its shareholders who are not the president or the director when a corporation:
      1. Is publicly traded on a nationally recognized stock exchange; or
      2. Holds at least ten (10) permits issued by the Alcoholic Beverage Control Division for the sale of alcoholic beverages.
  2. The requirement as to residence shall not apply to officers, directors, and stockholders of the corporation, but the requirement shall apply to any officer, director, or stockholder who is also the manager of the licensed premises in any capacity in the conduct or operation of the licensed premises.
Any misstatement or concealment of fact in the application shall be grounds for the revocation of any license issued pursuant to the application.

History. Acts 1999, No. 856, § 4; 2013, No. 325, § 5; 2019, No. 691, § 27.

Amendments. The 2013 amendment rewrote (a)(7)(A).

The 2019 amendment inserted “or hard cider, or both” in the introductory language of (a); and made stylistic changes.

3-9-604. Prohibited acts.

A holder of a license authorizing the sale of wine or hard cider, or both, for consumption on the premises where sold or a servant, agent, or employee of the licensee shall not do any of the following upon the licensed premises:

Knowingly sell wine or hard cider to a minor;
Knowingly sell wine or hard cider to a person while the person is in an intoxicated condition;
Sell wine or hard cider upon the licensed premises or permit wine or hard cider to be consumed thereon on any day or at any time when the sale or consumption is prohibited by law; or
Permit on the licensed premises any disorderly conduct, breach of the peace, or any lewd, immoral, or improper entertainment, conduct, or practices.

History. Acts 1999, No. 856, § 5; 2019, No. 691, § 28.

Amendments. The 2019 amendment inserted “or hard cider” throughout the section; inserted “or both” in the introductory language; and made stylistic changes.

3-9-605. Penalties.

If a facility licensed under this subchapter to sell wine or hard cider, or both, for consumption on the premises violates this subchapter or the other laws of this state regarding the sale of wine or hard cider at retail, the owner or operator of the facility is guilty of a Class B misdemeanor.

History. Acts 1999, No. 856, § 2; 2005, No. 1994, § 377; 2019, No. 691, § 29.

Amendments. The 2005 amendment inserted “Class B”; and deleted former (b) and made related changes.

The 2019 amendment inserted “or hard cider” twice; inserted “or both”; and made stylistic changes.

3-9-606. Revocation or suspension of license.

Proceedings for the revocation or suspension of any license issued pursuant to the provisions of this subchapter shall be in the same manner as is provided by law for revocation or suspension of licenses for the sale of beer for consumption on the premises.

History. Acts 1999, No. 856, § 6.