Arkansas Code of 1987 (2023) › Title 3 - ALCOHOLIC BEVERAGES (§§ 3-1-101 — 3-9-606) › Chapter 5 - BEER AND WINE - MANUFACTURE, SALE, AND TRANSPORTATION GENERALLY (§§ 3-5-101 — 3-5-1909) › Subchapter 12 - MICROBREWERY - RESTAURANTS (§§ 3-5-1201 — 3-5-1208) › Section 3-5-1204 - Licenses - Scope - Restrictions

(a)
The Director of the Alcoholic Beverage Control Division may issue a microbrewery-restaurant license which shall authorize the licensee to do the following:
(1)
(A)
To:
(i)
Operate a microbrewery which shall manufacture one (1) or more varieties of beer, malt beverage, ready-to-drink product, 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
(ii)
Store the manufactured beer, malt beverage, ready-to-drink product, or hard cider and any other beer, malt beverage, ready-to-drink product, 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)(10) of this section.
(B)
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:
(i)
Calculating barrel production; and
(ii)
Transportation of beer, malt beverage, ready-to-drink product, or hard cider produced by one (1) entity among no more than three (3) microbrewery-restaurant facilities of the one (1) entity;
(2)
(A)
To operate a restaurant which shall be the sales outlet for beer, malt beverage, ready-to-drink product, or hard cider manufactured by the microbrewery and which shall sell the beer, malt beverage, ready-to-drink product, or hard cider and any other beer, malt beverage, ready-to-drink product, 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.
(B)
On-premises consumption of a ready-to-drink product shall only be allowed 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 §
3-9-201
et seq.;
(3)
(A)
To sell on the premises beer, malt beverage, ready-to-drink product, 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.
(B)
A ready-to-drink product authorized for sale for off-premises consumption under subdivision (a)(3)(A) of this section shall be sold only from the location where the ready-to-drink product is manufactured;
(4)
To serve on the premises complimentary samples of beer, malt beverages, ready-to-drink product, or hard cider produced by the microbrewery-restaurant;
(5)
(A)
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.
(B)
The sale of those products shall be limited to the duration of the particular special event;
(6)
To sell beer, malt beverages, ready-to-drink product, or hard cider manufactured by the microbrewery-restaurant to a nonprofit corporation leasing space in the microbrewery-restaurant or in an adjoining building;
(7)
(A)
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.
(B)
A sales and use tax permit is required for sales under this subdivision (a)(7);
(8)
To sell beer, malt beverage, ready-to-drink product, 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, ready-to-drink product, and hard cider;
(9)
(A)
To conduct beer-, malt beverage-, ready-to-drink product-, and hard cider-tasting events for educational or promotional purposes at any location in wet areas of this state if:
(i)
A request for approval to conduct a beer-, malt beverage-, ready-to-drink product-, and hard cider-tasting event is received by the Alcoholic Beverage Control Division at least two (2) weeks before the event;
(ii)
The request is approved by the division; and
(iii)
Written notice is given by the division to the permit holder at least five (5) days before the event.
(B)
Only beer, malt beverage, ready-to-drink product, and hard cider produced by the microbrewery-restaurant shall be used for an event approved under this subdivision (a)(9).
(C)
This subdivision (a)(9) does not authorize the conducting of a beer-, malt beverage-, ready-to-drink product-, and hard cider-tasting event at the one (1) separate brewing facility of a microbrewery-restaurant authorized under subdivision (a)(10) of this section;
(10)
(A)
To maintain one (1) separate brewing facility for the production or storage of beer, malt liquor, ready-to-drink product, 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, ready-to-drink product, and hard cider per year.
(B)
Beer, malt beverage, and hard cider produced by a separate brewing facility of a microbrewery-restaurant licensee shall be:
(i)
Sold to a licensed wholesaler; or
(ii)
Transported:
(a)
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
(b)
To the separate brewing facility from a microbrewery-restaurant commonly owned by the owner of the separate brewing facility for storage, production, or packaging.
(C)
Ready-to-drink products produced by a separate brewing facility of a microbrewery-restaurant licensee shall be sold only to a licensed wholesaler; and
(11)
(A)
To sell and transport beer, malt beverage, or hard cider manufactured by the microbrewery-restaurant licensee to licensed retailers in an amount not to exceed five thousand (5,000) barrels per year.
(B)
(i)
To sell and transport under subdivision (a)(11)(A) of this section, the microbrewery-restaurant licensee shall obtain a microbrewery-restaurant wholesale permit.
(ii)
The microbrewery-restaurant licensee shall pay a fee of two hundred fifty dollars ($250) per year for the microbrewery-restaurant wholesale permit under subdivision (a)(11)(B)(i) of this section.
(b)
The director shall not issue a microbrewery-restaurant license if the microbrewery-restaurant premises are in a dry area.
(c)
(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
.
(d)
A microbrewery-restaurant license holder that manufactures a ready-to-drink product shall comply with all federal laws and regulations, including without limitation obtaining a license to distill, warehouse, or process spirituous liquor issued by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury.
Amended by Act 2023, No. 207,§ 1, eff. 8/1/2023.
Amended by Act 2023, No. 169,§ 6, eff. 8/1/2023.
Amended by Act 2023, No. 169,§ 5, eff. 8/1/2023.
Amended by Act 2017, No. 865,§ 1, eff. 8/1/2017.
Amended by Act 2017, No. 308,§ 1, eff. 8/1/2017.
Amended by Act 2015, No. 857,§ 5, eff. 3/31/2015.
Acts 1991, No. 611, § 1; 1995, No. 491, § 3; 1997, No. 916, § 1; 1999, No. 1065, § 2; 2001, No. 805, § 1.