006.02.2-2.13.1. Three-Tier System of Alcohol Distribution Defined; Violations of Prohibitions ...
AR ADC 006.02.2-2.13.1Arkansas Administrative CodeEffective: December 13, 2020
Effective: December 13, 2020
Ark. Admin. Code 006.02.2-2.13.1
006.02.2-2.13.1. Three-Tier System of Alcohol Distribution Defined; Violations of Prohibitions Subject to Penalty.
(1) This Regulation is intended to more clearly delineate the structure of the three-tier system of alcohol distribution established by Arkansas state code provisions and to prohibit ownership and employment interests between the three tiers. Regulation in this area is considered necessary and appropriate for the following reasons:
(2) The three-tier system of alcohol distribution consists of the three broad categories of the marketing chain. Alcoholic beverage manufacturers, including distilleries, breweries, importers or rectifiers, whether or not they hold a permit issued by the Arkansas Alcoholic Beverage Control Division, are considered the first tier of the distribution system. Alcoholic beverage wholesalers, licensed by the State of Arkansas, are considered the second tier of distribution. Alcoholic beverage retailers and casino licensees licensed by the State of Arkansas are considered the third tier of distribution.
The following ownership and employment interest among the three tiers are prohibited:
A. No person, firm or corporation owning any interest in any business involved in the first tier of distribution may own any interest in any business involved in the second or third tiers of distribution, regardless of degree of such interest. Further, no person, firm, or corporation being employed by or serving as an officer of any business involved in the first tier of distribution shall own any interest in nor be employed by any business involved in the second or third tiers of distribution;
B. No person, firm or corporation owning any interest in any business involved in the second tier of distribution may own any interest in any business involved in the first or third tiers of distribution, regardless of degree of such interest. Further, no person, firm, or corporation being employed by or serving as an officer of any business involved in the second tier of distribution shall own any interest in nor be employed by any business involved in the first or third tiers of distribution;
C. No person, firm or corporation owing any interest in any business involved in the third tier of distribution may own any interest in any business involved in the first or second tiers of distribution, regardless of degree of such interest. Further, no person, firm or corporation, being employed by or serving as an officer of any business involved in the third tier of distribution shall own any interest in nor be employed by any business involved in the first or second tier of distribution;
D. Notwithstanding the prohibitions contained in Subparagraphs B. and C. above, permit holders in the second and third tiers of distribution may hold stock in businesses involved in the first tier where that stock is traded on any national stock exchange, not to exceed one percent (1%) of the total outstanding shares of any one company;
F. In addition to any other sanctions or penalties which may be imposed by the Director pursuant to the procedures outlined in Title 3 of the Arkansas Code and Act 434 of 1907, as amended, violation of any provision of this Regulation shall also be considered a Class A permit violation, pursuant to the provisions of Act 790 of 1981, as codified in ACA § 3-4-401, et. seq.
Credits
Amended Aug. 19, 1993; Dec. 13, 2020.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.02.2-2.13.1, AR ADC 006.02.2-2.13.1
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