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 19 - MICROBREWERY-RESTAURANT PRIVATE CLUB PERMIT (§§ 3-5-1901 — 3-5-1909) › Section 3-5-1904 - Permit - Scope - Restrictions - Definition

(a)
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)
(A)
Store beer, malt beverage, and hard cider manufactured by the microbrewery-restaurant private club and any other beer, malt beverage, hard cider, and spirituous liquor 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.
(B)
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:
(i)
Calculating barrel production; and
(ii)
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:
(A)
Is the sales outlet for beer, malt beverage, or hard cider manufactured by the microbrewery-restaurant private club; and
(B)
Sells the beer, malt beverage, or hard cider and any other beer, malt beverage, hard cider, wine, or spirituous liquor that the microbrewery-restaurant private club permittee may purchase:
(i)
From retailers permitted by this state for on-premises consumption; or
(ii)
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)
(A)
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:
(i)
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;
(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)
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.
(C)
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)
(A)
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.
(B)
Beer, malt beverage, and hard cider produced by a separate brewing facility of a microbrewery-restaurant private club permittee shall be:
(i)
Sold to a permitted wholesaler; or
(ii)
Transported:
(a)
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
(b)
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.
(b)
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
.
(c)
(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
.
(d)
(1)
Except as provided in subdivision (d)(2) of this section, a microbrewery-restaurant private club, as described in this subchapter, shall not use 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 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
.
(2)
The prohibition on advertising or promoting the consumption and use of alcoholic beverages under subdivision (d)(1) of this section does not apply to a microbrewery-restaurant private club advertisement consisting solely of the name of the microbrewery-restaurant private club.
(e)
(1)
A microbrewery-restaurant 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 advertising media to advertise or announce social functions of general interest, including without limitation:
(A)
A golf tournament;
(B)
A charity ball;
(C)
An entertainment event; or
(D)
A similar activity.
(2)
The social function shall be held within the confines of the microbrewery-restaurant private 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 the social activity.
(f)
A microbrewery-restaurant private club located in a wet county or area is not prohibited from advertising under this section.
(g)
As used in this section, "intoxicating liquor" means a beverage containing more than five-tenths of one percent (0.5%) of alcohol by weight.
Amended by Act 2023, No. 334,§ 3, eff. 8/1/2023.
Amended by Act 2023, No. 334,§ 2, eff. 8/1/2023.
Amended by Act 2021, No. 885,§ 1, eff. 7/28/2021.
Added by Act 2019, No. 681,§ 1, eff. 7/24/2019.