2010 Arkansas Code
Title 3 - Alcoholic Beverages
Chapter 4 - Alcoholic Beverages Generally -- permits
Subchapter 2 - Issuance and Terms
§ 3-4-201 - Number of permits restricted.

3-4-201. Number of permits restricted.

(a) It is declared to be the public policy of the state that the number of permits in this state to dispense vinous (except wines), spirituous, or malt liquor shall be restricted.

(b) (1) The Alcoholic Beverage Control Board is empowered to determine whether public convenience and advantage will be promoted by issuing the permits and by increasing or decreasing the number thereof.

(2) In order to further carry out the policy hereinbefore declared, the number of permits so issued shall be restricted.

(c) The board is further given 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 to determine the location thereof and the persons to whom they shall be issued, under the following conditions:

(1) (A) The number of permits allowing the off-premises sale of vinous (except wines), spirituous, or malt liquor in any county or political subdivision which permits the sale shall not exceed a ratio of one (1) permit for every four thousand (4,000) population residing in that county or subdivision.

(B) Population of the area involved shall be determined by the most recent population figures established in a census by the Bureau of the Census of the United States Department of Commerce or other appropriate governmental subdivision;

(2) New permits which may be issued in a county or subdivision thereof following a regular census shall be issued under the following restrictions:

(A) Additional permits may be issued on a ratio of one (1) for every additional four thousand (4,000) population within the area;

(B) Any qualified applicant may apply for a permit. Qualifications are to be set from time to time by the board and its determination of the public convenience and advantage;

(3) (A) If it is determined that a county or political subdivision thereof is entitled to additional permits when warranted by a census, the board will announce prior to the last date for applications the number of new permits, if any, which may be issued therein.

(B) In the event that such regular census population figures decline in a given county or political subdivision thereof, no existing permits shall be cancelled or revoked for that reason, and the quota ratio shall not be applied thereto until the population in the county or political subdivision thereof reaches a number equalling one (1) permit to every four thousand (4,000) population therein, nor shall any new permit be issued therein until the population warrants.

(C) No transfer of locations from one county to another county shall be allowed.

(D) In the event that any holder of a permit for the sale of vinous (except wines), spirituous, or malt liquor surrenders a permit in a county or municipality thereof where the ratio no longer meets the one to four thousand (1:4,000) requirement, no new applications will be accepted until that ratio is reestablished at an approved census;

(4) (A) (i) In the event a permit holder does not conduct business under any permit issued for a period of more than thirty (30) days, the permit shall be surrendered to the director and shall be placed on inactive status.

(ii) The permit may remain inactive for six (6) months or until the permit holder notifies the director that he or she is ready to resume business, whichever is longer.

(B) To secure the return of the permit, the permit holder shall file with the director a written statement showing:

(i) That all taxes and fees owing to the state have been paid;

(ii) The reason for the suspension of business activities; and

(iii) The date business activity will resume.

(C) (i) The permit holder may petition the board for an extension of inactive status for an additional six-month period.

(ii) The board may grant an initial extension upon a showing by the permit holder and a finding by the board that business circumstances exist to justify an extension, that the delay to return to business was not due to mere deferral or inattention on the part of the permit holder, and that the inactive status should be extended.

(iii) (a) 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.

(b) "Emergency circumstances" are those delays in return to business which are beyond the control, planning, or foresight of the permit holder, including, but not limited to, delays due to natural disasters, pending court actions, building construction problems, and contested insurance claims.

(D) Any permit remaining on inactive status for a period of more than eighteen (18) months or which has not been granted an extension under the provisions of this subdivision shall expire; and

(5) Nothing in this section and 3-4-202 and 3-4-208, except a permit on inactive status for more than eighteen (18) months after the provisions of subdivision (c)(4) of this section become effective or which has expired in accordance with subdivision (c)(4) of this section, shall be construed as to divest any permit holder holding the permit on July 1, 1991, regardless of the quota ratio, of his permit. In counties or municipalities which have a ratio lower than the quota ratio established herein, the permit holder shall be allowed to continue under subdivision (3)(B) of this subsection.

(d) 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 1, 1991.