Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H3/10/25 H3/31/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 HOUSE BILL 1476
4
5 By: Representative B. McKenzie
6 By: Senator Hester
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE DIRECT SHIPMENT OF VINOUS LIQUOR
10 ACT; TO ESTABLISH A WINE DIRECT SHIPPER LICENSE; AND
11 FOR OTHER PURPOSES.
12
13
14 Subtitle
15 TO AMEND THE DIRECT SHIPMENT OF VINOUS
16 LIQUOR ACT; AND TO ESTABLISH A WINE
17 DIRECT SHIPPER LICENSE.
18
19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
20
21 SECTION 1. Arkansas Code � 3-5-1703 through 3-5-1707 are amended to
22 read as follows:
23 3-5-1703. Registration Wine direct shipper license -- Renewal fee.
24 (a)(1) Unless registered licensed under this subchapter, a winery,
25 supplier, importer, wholesaler, distributor, or retailer licensed by this
26 state or the state where its principal place of business is located shall not
27 ship vinous liquor to an Arkansas consumer.
28 (2) This section does not apply to a small farm winery licensed
29 under � 3-5-1601 et seq.
30 (b) Prior to the winery's first shipment into or within the state In
31 order to obtain a wine direct shipper license, the a winery, supplier, or
32 importer shall:
33 (1) Register File an application for a wine direct shipper
34 license with the Alcoholic Beverage Control Division;
35 (2) Provide the division with a true copy of the winery's
36 applicant's current alcoholic beverage license to manufacture wine issued by:
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1 (A) The state of domicile; and
2 (B) The Alcohol and Tobacco Tax and Trade Bureau of the
3 United States Department of the Treasury; and
4 (3) Pay a registration fee of twenty-five dollars ($25.00) fifty
5 dollars ($50.00).
6 (c) A winery wine direct shipper licensee shall renew its application
7 each year with the division by:
8 (1) Providing the division with a copy of the licenses required
9 under subdivision (b)(2) of this section; and
10 (2) Paying a renewal fee of twenty-five dollars ($25.00).
11 (d) A wine direct shipper licensee may ship vinous liquor that is
12 registered with the division directly to a resident in a wet county as
13 provided in � 3-5-1705.
14 (e) A winery, a supplier, or an importer shall submit to the division
15 an Alcohol and Tobacco Tax and Trade Bureau Certificate of Label Approval
16 for:
17 (1) Each brand of vinous liquor; and
18 (2) Each brand label extension of vinous liquor to be shipped
19 for the first time by the wine direct shipper licensee into or within the
20 state.
21
22 3-5-1704. Purchase -- Payment of taxes -- Reporting -- Consent to
23 jurisdiction.
24 (a) A consumer must:
25 (1) Be physically present at the winery to purchase the vinous
26 liquor to be shipped into or within the state; and
27 (2) Provide identification to the winery proving that he or she
28 is twenty-one (21) years of age or older.
29 (b)(1) A winery wine direct shipper licensee shall collect all sales
30 taxes and excise taxes due on a sale to an individual of this state as if the
31 sale took place on the premises of an Arkansas small farm winery, including
32 without limitation taxes under �� 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
33 (2) Taxes collected by the winery wine direct shipper licensee
34 shall be submitted to the Department of Finance and Administration as
35 directed without limitation under �� 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
36 (3) A winery wine direct shipper licensee shall source the
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1 collection of sales and use taxes to the purchaser's delivery address in
2 accordance with � 26-52-521(b)(2).
3 (b)(1) A wine direct shipper licensee located outside of the state
4 shall report to the Alcoholic Beverage Control Division annually on the
5 amount of vinous liquor the wine direct shipper licensee shipped into the
6 state during the preceding calendar year.
7 (2) A wine direct shipper licensee located inside the state
8 shall provide the division with any requested by the division to ensure
9 compliance with this subchapter.
10 (c) A wine direct shipper licensee:
11 (1) Shall permit the department or division to perform an audit
12 of the records of the wine direct shipper licensee upon request; and
13 (2) Is subject to the jurisdiction of the department or other
14 state agency and the courts concerning enforcement of this subchapter and
15 related laws or rules.
16
17 3-5-1705. Direct shipment.
18 (a) A winery wine direct shipper licensee shall ship only a vinous
19 liquor to a private residence.
20 (b) A winery wine direct shipper licensee may only ship one (1) case
21 of vinous liquor per consumer in any calendar quarter up to twenty-four (24)
22 nine-liter cases of wine annually only to a recipient who:
23 (1) Is twenty-one (21) years of age or older;
24 (2) Resides in a wet county where the manufacture or retail sale
25 of alcoholic beverages is permitted; and
26 (3) Is receiving the vinous liquor directly for personal use and
27 not for resale.
28 (c)(1) A shipment of a vinous liquor shall have a shipping label
29 provided by the Alcoholic Beverage Control Division affixed to the shipping
30 package that conspicuously states "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE
31 21 OR OLDER REQUIRED FOR DELIVERY".
32 (2) The fee for each label for a shipment shall not exceed ten
33 dollars ($10.00).
34
35 3-5-1706. Delivery -- Enforcement -- Penalties.
36 (a) A winery wine direct shipper licensee shall have the vinous liquor
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1 delivered to an Arkansas consumer during the hours of the day that alcoholic
2 beverages may be purchased in the state.
3 (b) A wine direct shipper licensee shall not ship vinous liquor to a
4 resident located in a dry territory.
5 (c) The Alcoholic Beverage Control Division shall verify compliance
6 with this subchapter by the following audit methods, including without
7 limitation:
8 (1) Reviewing quarterly reports submitted by wine direct shipper
9 licensees to confirm shipments are made only to wet counties;
10 (2) Investigating any suspected shipments to dry territories;
11 and
12 (3) Issuing cease and desist orders to wine direct shipper
13 licensees that fail to comply with this subchapter.
14 (d) A wine direct shipper licensee who violates this subchapter is
15 subject to the following penalties:
16 (1) For the first violation, written notice of noncompliance
17 issued by the division to the wine direct shipper licensee;
18 (2) For the second violation, a fine of five hundred dollars
19 ($500);
20 (3) For the third violation, a fine of one thousand dollars
21 ($1,000); and
22 (4) For the fourth and subsequent violations:
23 (A) Suspension of the wine direct shipper licensee for up
24 to one (1) year; and
25 (B) Additional fines up to five thousand dollars ($5,000)
26 per violation.
27 (e) A winery, an importer, or a supplier that knowingly ships to a dry
28 territory is subject to immediate suspension of the wine direct shipper
29 license pending an investigation by the division.
30 (f) The division, in coordination with state and local law
31 enforcement, may seize and hold an illegal shipment of wine until a final
32 order for destruction is obtained from the Alcoholic Beverage Control Board.
33 3-5-1707. Rules.
34 The Director of the Alcoholic Beverage Control Division, the Alcoholic
35 Beverage Control Board, the Secretary of the Department of Finance and
36 Administration, and any other affected agency of this state may shall adopt
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1 rules to implement this subchapter.
2
3 SECTION 2. Arkansas Code �� 3-5-1709 - 3-5-1710 are repealed.
4 3-5-1709. Small farm winery shipment.
5 (a)(1) A small farm winery licensee with a wine wholesale permit under
6 � 3-5-1602(c)(1)(E) may ship small farm winery wine or mead under this
7 subchapter to a private resident without the private resident having been
8 physically present or having made an in-person purchase at the small farm
9 winery if the shipment includes only small farm winery wine or mead.
10 (2) Additional shipping registration of a small farm winery is
11 not required for a shipment under subdivision (a)(1) of this section.
12 (b) A private resident shall provide identification to the small farm
13 winery proving that he or she is twenty-one (21) years of age or older.
14 (c) A small farm winery may ship only one (1) case of small farm
15 winery wine and one (1) case of mead per private resident in any month.
16 (d) A small farm winery shipping under this subchapter shall ensure
17 that all containers of small farm winery wine or mead delivered within this
18 state are conspicuously labeled as follows:
19 "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED
20 FOR DELIVERY".
21 (e)(1) A small farm winery shall collect all sales taxes and excise
22 taxes due on a sale to an individual of this state as if the sale took place
23 on the premises of the small farm winery, including without limitation taxes
24 under �� 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
25 (2) Taxes collected by the small farm winery shall be submitted
26 to the Department of Finance and Administration as directed without
27 limitation under �� 3-5-1605, 3-7-104, 3-7-111, and 3-7-201.
28 (3) A small farm winery shall source the collection of sales and
29 use taxes to the purchaser's delivery address in accordance with � 26-52-
30 521(b)(2).
31 (4) A small farm winery shipping mead under this section shall
32 collect all taxes due on the mead in the same manner as required for wine.
33 (f) A small farm winery that makes a direct shipment of small farm
34 winery wine or mead under this section shall maintain records regarding each
35 shipment of small farm winery wine or mead that include the:
36 (1) Name and address of the person to whom the small farm winery
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1 wine or mead is:
2 (A) Sold; and
3 (B) Billed; and
4 (2) Date of shipment.
5
6 3-5-1710. Permits -- Drawing -- Issuance.
7 (a)(1) Within sixty (60) days after April 3, 2017, the Alcoholic
8 Beverage Control Board shall notify by mail all small farm wineries licensed
9 under � 3-5-1602 and holding a small farm wine wholesale permit under � 3-5-
10 1602(c)(1)(E) issued on or before April 15, 2017, that they are eligible for
11 a small farm winery private-resident shipping permit if the winery produced
12 by fermentation at least eight hundred gallons (800 gals.) of wine in the
13 previous calendar year as shown on the winery's TTB F 5120-17.
14 (2) The board shall issue a small farm winery private-resident
15 shipping permit to a small farm winery holding a small farm wine wholesale
16 permit under � 3-5-1602(c)(1)(E) issued on or before April 15, 2017, upon
17 receipt of the following:
18 (A) Proof that the winery produced by fermentation at
19 least eight hundred gallons (800 gals.) of wine in the previous calendar year
20 as shown on the winery's TTB F 5120-17; and
21 (B) Payment of a licensing fee of twenty-five dollars
22 ($25.00).
23 (b)(1) In each subsequent year, the board may issue up to five (5)
24 small farm winery private-resident shipping permits to small farm wineries
25 licensed under � 3-5-1602 and holding a small farm wine wholesale permit
26 under � 3-5-1602(c)(1)(E) issued after April 15, 2017, if the winery produced
27 by fermentation at least eight hundred gallons (800 gals.) of wine in the
28 previous calendar year as shown on the winery's TTB F 5120-17.
29 (2) The board shall notify the public at large by legal notice
30 and internet posting that the board will accept applications for small farm
31 winery private-resident shipping permits.
32 (3) The notice required under subdivision (b)(2) of this section
33 shall include:
34 (A) The number of permits to be issued;
35 (B) The last date applications will be accepted; and
36 (C) The date of a drawing to determine which applicants
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1 will be awarded a permit if the number of applicants exceeds the number of
2 permits authorized by the board.
3 (4) The board shall not accept an application more than ninety
4 (90) days after the date of publication of the notice required under
5 subdivision (b)(2) of this section.
6 (5)(A) If the number of applicants for a permit exceeds the
7 number of permits authorized by the board, the Director of the Alcoholic
8 Beverage Control Division shall conduct a drawing not earlier than one
9 hundred twenty (120) days after the publication of the notice specified in
10 subdivision (b)(2) of this section, nor later than one hundred eighty (180)
11 days after publication of the notice.
12 (B)(i) On the date of the drawing, each applicant for a
13 permit or his or her agent shall draw a number between one (1) and a number
14 equal to the number of permits to be granted of applications filed.
15 (ii) Position numbers shall not be transferred or
16 assigned.
17 (6) Upon payment of a licensing fee of twenty-five dollars
18 ($25.00), the director shall issue a permit to each eligible licensee that
19 draws a number one (1) through the number authorized by the board for the
20 drawing.
21 (c) A small farm winery shall renew its small farm winery private-
22 resident shipping permit each year with the division by paying a renewal fee
23 of twenty-five dollars ($25.00).
24
25 SECTION 3. DO NOT CODIFY. Rules.
26 (a) When adopting the rules required to implement this act, the
27 Alcoholic Beverage Control Division shall file the final rules with the
28 Secretary of State for adoption under � 25-15-204(f):
29 (1) On or before one hundred eighty (180) days from the
30 effective date of this act; or
31 (2) If approval under � 10-3-309 has not occurred by one hundred
32 eighty (180) days from the effective date of this act, as soon as practicable
33 after approval under � 10-3-309.
34 (b) The department shall file the proposed rules with the Legislative
35 Council under � 10-3-309(c) sufficiently in advance of one hundred eighty
36 (180) days from the effective date of this act, so that the Legislative
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1 Council may consider the rules for approval before one hundred eighty (180)
2 days from the effective date of this act.
3
4 /s/B. McKenzie
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8 03-31-2025 13:26:24 CRH078Every fact on this page links to its source, starting with the official bill record.