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Committee approves bill allowing permit-holders to own additional retail liquor permits with limits
Summary
Senate Bill 97 cleared committee after testimony from the sponsor, Walmart and small retail owners. The bill lets existing liquor permit holders own up to three retail permits, subject to county limits and purchase of existing permits; sponsors said it does not increase the total number of permits statewide.
The City, County & Local Affairs Committee voted to advance Senate Bill 97, which allows holders of Arkansas retail liquor permits to own up to three permits, subject to specified county limits and the requirement that additional permits be acquired from existing permit holders.
Senator Hester presented the bill and emphasized what it does not do: "This bill does not expand the amount of, liquor permits, available in the state of Arkansas," he said. He explained the bill allows a current or future permit holder to own up to three retail permits, with a limit of one permit per county in counties with populations of 200,000 or more. At the time of the hearing, those counties were identified as Benton County, Washington County and Pulaski County.
Michael Lindsey, director of public affairs and government relations for Walmart, testified in favor and said the change "doesn't expand alcohol in Arkansas. It just allows companies and individuals to own more than 1 license." Lindsey said neighboring states allow multiple permits per owner and that the bill would bring Arkansas closer to those practices while keeping a county limitation.
John Kelly, a Little Rock liquor-store owner, testified in opposition and warned about enforcement and market leverage. He described concerns about "group purchasing" or chain buying and said he had asked the Alcoholic Beverage Control about whether multiple-store ownership led to buying leverage; he said enforcement and investigative capacity appeared limited in his experience. Kelly also referenced a recent Federal Trade Commission legal action involving Glazer's as an example of chain-discount concerns.
Christy Bjornson, director of the Arkansas Alcoholic Beverage Control and Arkansas Tobacco Control, told the committee that the prohibition on group buying is "in statute and mirrored in rule" and described the agency's enforcement structure, saying the agency has about 46 agents who perform inspections and respond to complaints. She said agents typically review invoices encountered during inspections to verify compliance with rules.
Committee members debated and asked clarifying questions about whether the bill increases the number of permits (it does not) and whether purchased permits must come from the county where they will be used (presenter said yes). A motion to "do pass" was made, seconded and carried by voice vote; the transcript records the motion as passing but does not provide a roll-call tally.
The bill's supporters said it would allow entrepreneurs to expand existing businesses and align Arkansas with other states; opponents cautioned about enforcement of anti-group-buying rules and potential effects on small retailers' purchasing power.
