Wholesale liquor permit bill stalls after wholesalers and ABC debate fees and market impacts

Representative Jay Richardson (House District 49) proposed HB 15 89 to remove a statutory restriction enacted in 2013 that prevented issuance of additional wholesale liquor permits. Richardson said the change would allow dormant permits to be issued to expand distribution opportunities for local businesses, noting there are 15 licenses with 10 active.

Michael Lewis of the Alcoholic Beverage Control (ABC) testified ABC has rules to accept applications and could begin issuing permits on acceptable applications if the statutory restriction were removed. Committee members pressed whether new applicants would be in-state or out-of-state and how many dormant permits exist; Richardson and ABC said some dormant permits exist (about five reported in committee) and ABC could not predict demand.

Robbie Vogel, founder of Arkansas Wine and Spirits Wholesale LLC, testified in opposition, saying small in‑state wholesalers had invested to build portfolios and that an open, uncapped issuance could allow larger out‑of‑state operators to undermine those investments. "This bill ... will undo all of the efforts that we have made so far as wholesalers of wine and spirits," Vogel said and urged delaying action until companion legislation addressing residency for permittees advances.

Committee members questioned statutory $10,000 annual permit fees, whether new permittees would also pay that amount, and fairness to existing holders who paid the fee for years. ABC said the fee level is set in statute and would remain until changed. When the committee called for motions near the end of the calendar, no sustained second was recorded and HB 15 89 died for lack of motion.

The discussion raised concerns about market fairness, statutory fee protections for incumbents and whether a phased reopening or minimum‑permit approach could better protect local businesses.