SUBTITLE H - OPERATION OF MICROBREWERY-RESTAURANT PRIVATE
CLUB
Section 5.84 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. 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. 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. 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 the microbrewery-restaurant private club, a person is a member
of the microbrewery-restaurant private club only upon ordering an
alcoholic beverage. 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
applies to all permits of the entity.
Section
5.85
Procedure for Obtaining Permit. A
microbrewery-restaurant private club applicant may apply to obtain a
microbrewery-restaurant private club through the procedures provided under
Section 5.15 and Section 1.20. The application for a microbrewery-restaurant
private club shall be submitted to the division and accompanied by an annual
permit fee of one thousand five hundred dollars ($1,500), 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). 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.
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.
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.
(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.
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.
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
Section 5.88
Separate Facility
Authorized. A microbrewery-restaurant private club may 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.
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.
Section
5.89
Prohibited Sales A microbrewery private club may
not sell alcoholic beverages to nonmembers. A microbrewery private club shall
not sell alcoholic beverages for off-premise consumption, Viotation
of this provision will result in the permit being
revoked.
