2020 Arkansas Code
Title 3 - Alcoholic Beverages
Chapter 5 - Beer and Wine — Manufacture, Sale, and Transportation Generally
Subchapter 14 - Arkansas Small Brewery Act
§ 3-5-1405. Licenses — Scope — Restrictions

(a) The Director of the Alcoholic Beverage Control Division may issue a license for a licensee to operate a small brewery that:

1. (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. (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. (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. (4) Serves on the premises:

   1. (A) Complimentary samples of beer produced by the small brewery; and

   2. (B)

      1. (i) Spirituous liquors for on-premises consumption in a taproom under the license of the small brewery.

      2. (ii) 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. (5) Sells:

   1. (A) 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. (B)

      1. (i) At fairs and food and beer festivals with the permission and the consent of the management of the events.

      2. (ii) A sales and use tax permit also is required for sales under subdivision (a)(5)(B)(i) of this section;

6. (6)

   1. (A)

      1. (i) Sells and transports:

         1. (a) Beer produced on the premises of the small brewery to wholesale and small brewery license holders;

         2. (b) 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. (ii) Each permitted brewery shall submit documentation of production each year to renew the permit with the Alcoholic Beverage Control Division.

      3. (iii) A small brewery may distribute no more than fifteen thousand (15,000) barrels per year.

   2. (B)

      1. (i) 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. (ii) 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. (7) Sells for consumption on the premises of the small brewery:

   1. (A) Beer produced by the small brewery or another small brewery;

   2. (B) Wine; or

   3. (C) Hard cider;

8. (8) Operates no more than two (2) small brewery tap rooms; and

9. (9)

   1. (A) 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. (B) Beer, malt beverage, and hard cider produced by a separate brewing facility of a small brewery licensee shall be:

      1. (i) Sold to a licensed wholesaler; or

      2. (ii) Transported:

         1. (a) 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. (b) To the separate brewing facility from a small brewery commonly owned by the owner of the separate brewing facility for storage, production, or packaging.

            1. (1) The brewery provides tours through its facility; and

            2. (2) Only sealed containers are removed from the premises.

(b) 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:

(c)

1. (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. (2) The sale of those products is limited to the duration of the particular special event.

(d) 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).