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Committee advances bill raising population cap for retail liquor permits and shortening inactive-status period
Summary
House Bill 1590 would change the population cap that determines retail liquor permits from one per 5,000 people to one per 7,500 and reduce the inactive-permit period from 18 to 12 months; industry witnesses told the committee the change is aimed at stabilizing retail liquor stores facing competition since 2017 wine-and-grocery changes.
Sponsor explained House Bill 1590 would raise the population threshold used to determine the number of retail liquor permits a county may issue from one per 5,000 residents to one per 7,500, and shorten the time a permit can be placed on inactive status from 18 months to 12 months. The sponsor said the bill is intended to help existing retail liquor stores adapt to competition from wine sales in grocery stores enacted in 2017, citing industry data showing revenue declines of 5—20% depending on store location.
John Crow, chair of the legislative committee for the United Beverage Retailers of Arkansas and owner/operator of a Sherwood liquor store, testified in support and described the measure as a two-pronged approach to create a more sustainable market: reduce permit churn by raising the population cap and encourage active permitting by shortening the inactive period. Committee members asked technical questions about market effects and whether the bill's protections would be applied fairly; supporters said the bill had been vetted with the major industry stakeholders and had no known opposition at the hearing.
The committee voted by voice and the chair declared the bill passed the committee.
Committee members asked the sponsor to provide any available data underpinning the 5—20% revenue decline cited in testimony for the committee record before floor consideration.
