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HB 1173

INC TX-INSTRUCTIONAL MATERIALS

104th Regular Session Introduced by Rita Mayfield

House Bill 1173 aimed to raise beer's alcohol limit from 5% to 14% and include malt beverages up to 21%, modernizing Arkansas' alcohol regulations for consumers and manufacturers.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1173

Summary of House Bill 1173

Bill Number: HB 1173
Title: To Amend the Definition of "Beer" to Change the Allowable Alcoholic Content and to Include Malt Beverages
Status: Died on House Calendar at Sine Die adjournment
Introduced: January 17, 2025
Sponsors: Rep. M. Brown and Sen. Flippo

Purpose and Intent

House Bill 1173 aimed to amend the Arkansas Alcoholic Control Act (AACA) by redefining "beer" and "malt beverages" to allow for higher alcoholic content. The bill sought to increase the permissible alcohol by weight in beer from 5% to 14% and to include malt beverages with an alcohol content of up to 21%. This change was intended to modernize the state's alcohol regulations and align them with current market trends.

Key Provisions

  1. Definition Changes:

    • Malt: The bill proposed to redefine "malt" to mean liquor brewed from fermented grain juices with an alcohol content of more than 14% by weight.
    • Malt Beverages: Introduced a new definition for "malt beverage" as liquor brewed from fermented grain juices with an alcohol content between 5% and 21% by weight.

  2. Alcohol Content Adjustments:

    • Increased the allowable alcohol content in beer from 5% to 14% by weight.
    • Clarified that beer containing not more than 14% alcohol by weight would be included in the definition of "malt beverages."

  3. Amendments to Existing Laws:

    • Various sections of the AACA were amended to reflect these changes, including provisions related to excise tax rates and tax rebates for manufacturers.

  4. Implementation and Training:

    • The Alcoholic Beverage Control Division (ABC) would require time to amend its rules and train staff on the new regulations.

Impact

  • Consumers: The bill would have allowed consumers to purchase beer and malt beverages with higher alcohol content in grocery and convenience stores.
  • Manufacturers: Qualified manufacturers of beer and malt beverages would have benefited from updated tax provisions and potential rebates.
  • Regulatory Changes: The ABC and Department of Finance and Administration (DFA) would need to update their systems and train staff on the new definitions and regulations.

Procedural Timeline

  • January 17, 2025: Bill filed.
  • January 21, 2025: Read for the first time; rules suspended and referred to the Committee on House Rules.
  • January 29, 2025: Returned by the Committee with a recommendation to pass as amended.
  • January 30, 2025: Amendment No. 1 adopted; bill ordered engrossed.
  • February 3, 2025: Read a third time and failed.
  • May 5, 2025: Died on House Calendar at Sine Die adjournment.

Fiscal Impact

The fiscal impact statement indicated that there would be no significant financial implications for taxpayers, although the Arkansas Integrated Revenue System (AIRS) would require programming estimated at $6,000 for implementation.

This summary provides an overview of House Bill 1173, detailing its intent, key provisions, potential impacts, and procedural history. The bill ultimately did not pass, reflecting the complexities of legislative processes and public policy discussions surrounding alcohol regulation.

Compiled from official sources — confirm details with the bill’s official record.

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