In addition to the violation or failure to comply with any of this part or any alcoholic beverage control law of the State of Arkansas, any permit issued pursuant to any alcoholic beverage control law of the State of Arkansas may be cancelled, suspended, revoked, or assessed a monetary fine for any of the following prohibited activities committed by the permittee or any employee, agent, or servant of the permittee:

1. (1)

   1. (A) Failure to comply with federal regulations.
   2. (B) The permittee violated or failed to comply with any advertising, inducements, or packaging regulation issued as a regulation of the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury as promulgated in Title 27 of the Code of Federal Regulations;

2. (2)

   1. (A) Sale of controlled beverages when permit not posted.
   2. (B) The permittee sold, offered for sale, dispensed, gave away, or possessed on the premises any controlled beverages at any time when the permit of said permittee was not posted as required by this part;
3. (3) Failure to Furnish Bond [repealed];

4. (4)

   1. (A) Failure to pay tax, fee, penalty, or child support.
   2. (B) The permittee failed to pay when due any tax or fee required by this part, by any law of the State of Arkansas, or by any political subdivision of the State of Arkansas, or any penalty assessed by the Director of the Alcoholic Beverage Control Division, the Alcoholic Beverage Control Board, any court, or any court-ordered child support.
   3. (C) The permittee’s failure to pay taxes imposed on alcoholic beverages by any state or local gross receipts and compensating use taxes in a timely manner shall be grounds for the nonrenewal of the permittee’s permit or permits by the Alcoholic Beverage Control Board.
   4. (D) Provided further, any permit or permits suspended for nonpayment of the above taxes shall be cancelled if the tax arrearage is not satisfied within six (6) months of the date of suspension;

5. (5)

   1. (A) Giving false information or statements.
   2. (B) The permittee knowingly gave false information or made false statements on any application or in any hearing required by this part or by any alcoholic beverage control law of the State of Arkansas;

6. (6)

   1. (A) Failure to possess qualifications required.
   2. (B) The permittee, if the permittee is an individual, any partner, if the permittee is a partnership, or if the permittee is a corporation, any officer, director, managing agent, or stockholder holding more than five percent (5%) of the stock of the corporation failed to possess at any time any qualifications required by this part or by any alcoholic beverage control law of the State of Arkansas;

7. (7)

   1. (A) Failure to maintain health, safety, and sanitary standards.
   2. (B) The permittee failed to maintain the minimum health, safety, and sanitary standards established by the State of Arkansas and by the rules of the State Board of Health for the permitted premises;

8. (8)

   1. (A) Violation of oath.
   2. (B) The permittee violated any oath required by this part or by any alcoholic beverage control law of the State of Arkansas;

9. (9)

   1. (A) Failure to keep and maintain records or make report.
   2. (B) The permittee failed to keep and maintain any records required to be kept and maintained, or failed to make any report required to be made by this part or by any alcoholic beverage control law of the State of Arkansas;

10. (10)

    1. (A) Failure to furnish access to premises or failure to cooperate.
    2. (B) The permittee failed to furnish reasonable access to the premises to any law enforcement officer of this state or any county or municipality in which the premises is located or to any duly authorized agent of the Alcoholic Beverage Control Division or failed to cooperate or take reasonable action to assist any such law enforcement officers who are on the permitted premises in the performance of their duties;

11. (11)

    1. (A) Failure to allow inspection of books or records.
    2. (B) The permittee failed to allow a reasonable inspection of the books or records of the permitted business to any duly authorized agent of the Alcoholic Beverage Control Division;

12. (12)

    1. (A) Attempt to transfer or assign permit.
    2. (B) The permittee attempted to transfer or assign the permit to any other person or any premises other than the premises described in the permit by any procedure other than that established by this part and the laws of this state;

13. (13)

    1. (A) Pledge, hypothecation, or use of permit as collateral.
    2. (B) The permittee pledged or hypothecated the permit or deposited the permit as collateral security for any loan or upon any other condition;

14. (14)

    1. (A) Posting permit on unauthorized premises.
    2. (B) The permittee posted or knowingly allowed any other person to post the permit upon premises other than the permitted premises described in the permit;

15. (15)

    1. (A) Defacing, destroying, or altering permit.
    2. (B) The permittee maliciously defaced or destroyed the permit, knowingly altered the permit, or knowingly allowed any other person to maliciously deface or destroy or knowingly alter the permit in any respect;

16. (16)

    1. (A) Transporting controlled beverages in violation of rule or law.
    2. (B) The permittee transported or caused to be transported any controlled beverage in violation of this part or any alcoholic beverage control law of the State of Arkansas;

17. (17)

    1. (A) Manufacture or possession of controlled beverage with excess alcohol content.
    2. (B) The permittee manufactured or possessed on the permitted premises any controlled beverage having an alcohol content as measured by weight in excess of that prescribed by Arkansas Code § 3-1-102 and by this part for such beverages;

18. (18)

    1. (A) Removing or obliterating label, mark, or stamp.
    2. (B) The permittee removed or obliterated any label, mark, or stamp affixed to any bottle or container of controlled beverages offered for sale or delivered or sold the contents of any bottles or containers upon which the label, mark, or stamp had been removed or obliterated;

19. (19)

    1. (A) Consuming and/or under the influence of controlled beverages while on duty.
    2. (B) The owner or permittee was under the influence of alcoholic beverages or any employee consumed alcoholic beverages or was under the influence of alcoholic beverages while on duty on the permitted premises.

    3. (C)

       1. (i) “Duty” shall include the sale or service of alcoholic beverages and/or crowd control.

       2. (ii) In determining whether the permittee or any agent, server, or employee is otherwise on duty, the Director of the Alcoholic Beverage Control Division or Alcoholic Beverage Control Board may consider, among other factors:

          1. (a) (a) The size of the permitted establishment;
          2. (b) (b) The number of employees working at the time; and
       3. (c) (c) Whether the permittee has a manager on the premises;

20. (20)

    1. (A) Unauthorized manufacture, sale, offer, dispensing, gift, or possession of controlled beverage.
    2. (B) The permittee manufactured, sold, offered for sale, dispensed, gave away, or possessed any controlled beverage not authorized to be manufactured, sold, offered for sale, dispensed, given away, or possessed under the permit held by the permittee or allowed any of the foregoing on the permitted premises by any employee or patron.
    3. (C) Nothing under this section shall prohibit “home brewed beer”, as defined in accordance with Arkansas Code § 3-5-202(5)(A), to be allowed on a permitted premises for organized affairs, exhibitions, competitions, and tastings, but not for sale, if tastings or samplings are allowed under the permittee’s permit;

21. (21)

    1. (A) Manufacture or sale in dry area.
    2. (B) The permittee manufactured, sold, offered for sale, solicited, or took orders for any controlled beverage in any area in which the manufacture or sale of such beverage is prohibited by law;

22. (22)

    1. (A) Manufacture, sale, offer, dispensing, gift, possession, or transportation of controlled beverage upon which tax not paid.
    2. (B) The permittee manufactured, sold, offered for sale, dispensed, gave away, possessed, or knowingly transported in this state any controlled beverage of any kind upon which any tax required by this part or by any alcoholic beverage control law of the State of Arkansas has not been paid;

23. (23)

    1. (A) Storing controlled beverages on unauthorized premises.
    2. (B) The permittee stored or caused to be stored controlled beverages manufactured, purchased, or possessed by the permittee by virtue of the permit at any location other than on the premises described in the permit or in a warehouse approved in accordance with this chapter;

24. (24)

    1. (A) Possession of illegal drugs or narcotics.
    2. (B) The permittee possessed, knew, or reasonably should have known that any agent or employee or patron of the establishment possessed on the permitted premises any illegal drug, narcotic, controlled substance, or drug paraphernalia, as defined in the Uniform Controlled Substance Act, Arkansas Code § 5-64-101 et seq., § 5-64-201 et seq., § 5-64-301 et seq., § 5-64-401 et seq., and § 5-64-501 et seq.
    3. (C) Further, no agent or employee of the permittee shall knowingly allow the possession on the permitted premises of any illegal drug, narcotic, controlled substance, or drug paraphernalia;
25. (25) Employing a Convicted Felon [repealed];

26. (26)

    1. (A) Failure to file timely change of manager or replacement application.
    2. (B) The permittee of any retail outlet sold or leased the permitted business and the purchaser/lessee of such business failed to file an acceptable replacement application within thirty (30) days of such sale or lease or the managing agent of any incorporated retail outlet or private club became unqualified to serve as such for any reason and such corporate permittee or private club failed to file an acceptable change of manager application within thirty (30) days of such disqualification.
    3. (C) In the event that any replacement or change of manager application required by this section is finally denied, such permit will be presumed abandoned in violation of this section and the Director of the Alcoholic Beverage Control Division may hold a hearing on such permit and make appropriate findings;

27. (27)

    1. (A) (27)(A) Allowing alcoholic beverages to be carried from any on-premises alcoholic beverage outlet or private club.
    2. (B) The permittee allowed any patron to exit the permitted premises carrying any open container of alcoholic beverages or allowed any patron to exit any on-premises retail beer outlet carrying sealed alcoholic beverages in any combination not authorized by the Director of the Alcoholic Beverage Control Division for off-premises sales, unless otherwise authorized by this part.

    3. (C)

       1. (i) Private club permitted outlets are not allowed to sell any alcoholic beverages to be taken off the permitted premises.

       2. (ii) Provided:

          1. (a) (a) Those establishments holding an on-premises wine restaurant or café permit, a combined restaurant beer and wine permit, hotel-motel-restaurant mixed drink permit, or private club permit may allow a customer who purchases an unsealed package of wine in conjunction with a food purchase and consumes a portion of the wine on the premises with the meal to replace the cork and remove the partially filled package from the premises;
          2. (b) (b) Patrons may walk back and forth with an alcoholic beverage between a private club permitted premises and another contiguous permitted premises when both premises are a part of the same business operation and the alcoholic beverage is a type permitted by both premises; and
       3. (c) (c) Patrons may walk back and forth with an alcoholic beverage between an on-premises permitted outlet and a contiguous outlet issued a casino license by the Arkansas Racing Commission as long as the casino licensee is in operation.

    4. (D)

       1. (i) It is further provided that any on-premises outlet in a valid entertainment district may allow patrons to leave the permitted premises with alcoholic beverages.
       2. (ii) A city, municipality, or incorporated town that has designated an entertainment district shall notify the Alcoholic Beverage Control Division within ten (10) days of issuance or removal of a district.

       3. (iii)

          1. (a) (a) Notification for issuance of an entertainment district shall include:
28. (1) (1) Whether the district is temporary or permanent;
29. (2) (2) The days and hours of operation of the entertainment district; and

30. (3) (3) Any other regulations within the entertainment district, as well as any on-premises outlets that elect to opt out of the entertainment district.

    1. (b) (b) Any on-premises permit within an entertainment district that opts out of the entertainment district may not permit patrons to leave the premises with alcoholic beverages;

31. (28)

    1. (A) Advertising, selling, or dispensing alcoholic beverages on a two-or-more-for-the-price-of-one basis.
    2. (B) The permittee advertised, sold, dispensed, or served any alcoholic beverages for on-premises consumption on the basis of two (2) or more drinks for the price of one (1).
    3. (C) Further, the permittee advertised, sold, dispensed, or served alcoholic beverages without a limit to any person on the basis of a flat fee or cover charge.
    4. (D) Further, distilled spirits may not be sold by the bottle to patrons for self-pouring at on-premises consumption permitted outlets.
    5. (E) Provided, a fee charged for wine tastings, where such tastings are served in containers of two ounces (2 oz.) or less and each patron is limited to a maximum of four (4) servings per charge, shall not be deemed in violation of this section;

32. (29)

    1. (A) Conviction of any permittee of second or subsequent DWI or unlawful sale of alcohol.
    2. (B) The permittee or any managing agent for any corporate permittee, after the effective date hereof, has been convicted of a second or subsequent driving while intoxicated (DWI) offense or has been convicted for a second or subsequent time for any unlawful sale of alcoholic beverages where such second conviction occurs within five (5) years of the prior conviction;

33. (30)

    1. (A) Strict liability on the part of the permittee for any prohibited advertising.
    2. (B) The permittee, partnership, or corporation holding any permit issued by the Alcoholic Beverage Control Division may be held strictly liable for any type of advertising that is prohibited for such permittee by this part or by code provisions.

    3. (C)

       1. (i) When such advertising is promoting any event or activity on a permitted premises it is irrelevant, for the purposes of administrative liability, whether or not the permittee had prior actual knowledge of the contents of the prohibited advertisement.
       2. (ii) However, lack of actual knowledge may be taken into consideration by the Director of the Alcoholic Beverage Control Division, along with all other relevant circumstances, in determining the administrative penalty to be levied for this violation;

34. (31)

    1. (A) Failure of permittee to maintain on file Server Awareness Form for each employee as required by this part.
    2. (B) The permittee failed to have each employee acknowledge by signature the Server Awareness Form promulgated by the Director of the Alcoholic Beverage Control Division and to be maintained in the personnel file of each employee;

35. (32)

    1. (A) Failure to be a good neighbor.

    2. (B)

       1. (i) The policy of the General Assembly per Acts 1989, No. 695, and the Alcoholic Beverage Control Board which is empowered to adopt rules thereunder, is that every holder of an Alcoholic Beverage Control Division permit shall be held to a high duty of care and will operate their business where beverages are sold or dispensed in a manner which is in the public interest and which does not endanger the public health, welfare, or safety.
       2. (ii) Failure to maintain this duty of care shall be a violation of Acts 1989, No. 695, and shall constitute grounds for the application of the full range of administrative sanctions and penalties against the subject permit.

    3. (C)

       1. (i) Any inquiry made under the provisions of this section or Acts 1989, No. 695, shall be whether or not the outlet, as operated, promotes the public convenience and advantage or whether the continuation of the operation of the outlet would promote the public interest and whether or not the outlet’s operation endangers the public health, welfare, or safety in the area of a community in which it is located.
       2. (ii) It is specifically provided that during any hearing called under the provisions of this section or Acts 1989, No. 695, the permitted outlet may be viewed as if it were a new application and all factors involved in the processing of the application may be redetermined as if the application was being made for the first time.
    4. (D) As to all violations occurring inside the permitted premises, the standard of proof shall be by substantial evidence.
    5. (E) As to all violations occurring outside the permitted premises, the standard of proof shall be by clear and convincing evidence.
    6. (F) In addition to all factors which may be used on an initial application, inquiry may be made upon the control, or lack thereof, that the permittee exercises over parking lots and other areas adjacent to the permitted outlet which are under the direct control of the permittee.
    7. (G) In addition, the permittee may be held accountable under this section for disorderly conduct, excessive noise, or loud music from his or her outlet and which is of such volume and such degree as to constitute a disturbance of the public peace;

36. (33)

    1. (A) Allowing possession of weapons on premises.
    2. (B) That the permittee, or any employee of the permittee, allowed, knew, or reasonably should have known that any person without a possessory or proprietary interest in the permitted outlet was in possession of a weapon on the permitted premises.
    3. (C) As used in this subdivision (33), “weapon” means any firearm that is designed, made, or adapted to be fired, or any knife or club as defined by Arkansas Code § 5-73-120.
    4. (D) Any weapon authorized to be in the permitted outlet pursuant to this section must be kept out of sight and inaccessible to patrons and others who have no legal right to possess a weapon in the outlet.
    5. (E) This section excludes any law enforcement officer, any duly authorized agent of the Alcoholic Beverage Control Enforcement Division, and any licensed security guard while acting in the course and scope of their official duties.
    6. (F) Provided, that any person with a permit issued by the Director of the Division of Arkansas State Police may carry a concealed handgun, as such is defined in Arkansas Code § 5-73-301 into a restaurant, as such is defined in Arkansas Code § 3-9-202(16).
    7. (G) Provided further, that an employee of a retail liquor store who is licensed to carry a concealed handgun by the state may possess a handgun on the permitted premises;

37. (34)

    1. (A) Sale while permit suspended or on inactive status.
    2. (B) That the permittee or any agent or employee of the permittee sold, offered for sale, dispensed, gave away, or allowed the consumption of any controlled beverages upon the permitted premises at any time the permit is suspended or on inactive status;

38. (35)

    1. (A) Sale of tobacco to minor.
    2. (B) That the permittee or any agent or employee of the permittee sold tobacco in any form or cigarette papers to a minor under eighteen (18) years of age;

39. (36)

    1. (A) Allowing open containers of alcoholic beverages in off-premises permitted outlet.
    2. (B) That the permittee, or any employee of the permittee, allowed, knew, or reasonably should have known that open containers of alcoholic beverages were present in an off-premises permitted outlet;

40. (37)

    1. (A) Duty of permittee to provide certain information to Alcoholic Beverage Control Enforcement Division agents or law enforcement officers.
    2. (B) That the permittee failed to provide to the Alcoholic Beverage Control Division, any Alcoholic Beverage Control Division Enforcement agent, or law enforcement officer, when requested, access to information pertaining to the employment of any person employed by the permittee or gave fraudulent information regarding such employee;

41. (38)

    1. (A) Allowing alcoholic beverages to be removed from permitted outlet when sale or dispensing prohibited.
    2. (B) That the permittee, or any employee or agent, removed or allowed to be removed alcoholic beverages from a retail or private club permitted outlet at any time the sale or dispensing of alcoholic beverages is prohibited by law;

42. (39)

    1. (A) Sale of alcoholic beverages to persons under twenty-one (21) years.
    2. (B) That the permittee or any employee, agent, or servant of the permittee sold to, offered for sale, dispensed, gave away, or allowed the possession or consumption of any controlled beverage by any person under twenty-one (21) years of age; and

43. (40)

    1. (A) Alcohol vaporizers prohibited.
    2. (B) That the permittee or any employee, agent, or servant of the permittee allowed the use or possession on the permitted premises of any alcohol vaporizing device, as such is defined by Acts 2009, No. 466.

Codification Notes: The introductory language of this section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(Amended 8-18-99)” Prior to codification into the Code of Arkansas Rules, subdivision (3) contained the following: "Repealed 8-18-99" Subdivision (4) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-17-05)" Subdivision (10) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 12-23-86)" Subdivision (17) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-19-93)" Subdivision (19) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-17-05)" Subdivision (22) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-19-3)" Subdivision (24) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-19-93)" Prior to codification into the Code of Arkansas Rules, subdivision (25) contained the following: "Repealed 8-21-13" Subdivision (26) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 7-19-84)" Subdivision (27) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 10-21-20)" Subdivision (28) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-17-05)" Subdivision (29) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-19-93)" Subdivision (30) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 12-23-86)" Subdivision (31) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 12-15-89)" Subdivision (32) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-17-05)" Subdivision (33) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Amended 8-21-13)" Subdivision (34) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-19-93)" Subdivision (35) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-19-93)" Subdivision (36) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 7-19-95)" Subdivision (37) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 7-19-95)" Subdivision (38) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-20-97)" Subdivision (39) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-18-99)" Subdivision (40) as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Adopted 8-19-09)"