F Pamphlet Number 3 March 2013 Updates the 2011 Supplement Prepared Staff ofthe €' LexisNexis Code Arkansas OF 1987 Annotated Prepared by the Editorial Staffofthe Publisher Under the Direction and Supervision ofthe ARKANSAS CODE REVISION COMMISSION Senator David Johnson, Chair Senator David Burnett Representative John Vines Representative Darrin Williams Honorable Bettina E. Brownstein Honorable Don Schnipper Honorable David R. Matthews Honorable Stacy Leeds, Dean, University ofArkansas at Fayetteville, School ofLaw Honorable Paula Casey, Dean, University ofArkansas at Little Rock, School ofLaw Honorable Warren T. Readnour, SeniorAssistant Attorney General Honorable Matthew Miller, Assistant Director for Legal Services of the Bureau ofLegislative Research LexisNexis@ © Copyright 2013 BY The State ofArkansas All Rights Reserved LexisNexis andtheKnowledge Burstlogo are registeredtrademarks, andMichieis atrademark ofReedElsevierPropertiesInc.usedunderlicense. MatthewBenderisaregisteredtrademarkof Matthew BenderProperties Inc. 4079820 ISBN 978-0-7698-5583-7 LexisNexis9 Matthew Bender & Company, Inc. 701 East Water Street, Charlottesville, VA 22902 www.lexisnexis.com (Pub.40795) PREFACE The 2012-2013 Advance Code Service keeps the Arkansas Code of 1987 Annotated as current as possible by providing notes to cases and law reviews, and updated table and index entries, as well as other pertinent information, in the interim period between the publication of Supplements to the Code. Each Advance Code Service pamphlet is cumulative and may be recycled or discarded upon receipt ofthe next pamphlet. Material in the Advance Code Service follows the structure of the Arkansas Code of 1987 Annotated and should be used in conjunction A with the Code and its 2011 Supplement. stylistic change has been made to the note analyses but the content is the same. This pamphlet contains updates to the legislation enacted by the Arkansas GeneralAssembly at the 2011 Regular Session and the 2012 Fiscal Session. Annotations are to the following sources: Arkansas Supreme Court and Arkansas Court ofAppeals Opinions through 2013 Ark. LEXIS 40 (January 31, 2013) and 2013 Ark. App. LEXIS 69 (January 30, 2013). Federal Supplement through November 5, 2012. Federal Reporter 3d Series through December 6, 2012. United States Supreme Court Reports through November 5, 2012. Bankruptcy Reporter through December 3, 2012. Arkansas Law Notes through the 2008 Edition. Arkansas Law Review through Volume 61, p. 787. University ofArkansas at Little Rock Law Review through Volume 30, p. 267. ALR 6th through Volume 74, p. 549. ALR Fed. 2d through Volume 64, p. 255. Visit the LexisNexis website at www.lexisnexis.com for an on-line bookstore, technical support, customer service and other company information. For further information or assistance, please call us toll free at 1-800-833-9844, fax us at 1-800-643-1280, e-mail us at [email protected], or write: Arkansas Code Editor, LexisNexis, 701 East Water Street, Charlottesville, Virginia, 22902. LexisNexis iii , TITLE 1 GENERAL PROVISIONS CHAPTER 2 THE CODE AND REGULATIONS — Subchapter 1 General Provisions 1-2-115. Code classification and organization not to be con- — strued Notes, headings, etc., not part oflaw. CASE NOTES Separate Subchapters Not Determi- was not subjectto ad-valorem assessment native and taxation under § 26-26-1606(b). Fal- Fact that the Code Revision Commis- con Cable—Media LP—v. Ark. PSC, 2012 sion placed the statutes pertaining to Ark. 463, S.W.3d 2012 Ark. LEXIS , cable-television companies in a separate 501 (Dec. 13, 2012). dsiudbcnhoatpmteeradnutrhiantgtthheeicnotdiafnigciabtlieonpeprrsoocneasls IncC.i,t2e0d1:2MAcrMki.l1l6a6n,v—. LiSv.eW.N3adti—on(E2n0t1m2')t., property of cable-television companies — Subchapter 3 Arkansas Code Revision Commission 1-2-303. Powers and duties. CASE NOTES Authority to Change the Code act," as they did prior to changes by the Intangible personal property ofa cable Arkansas CodeRevisionCommission, and television company, including franchise therefore included all companies subject agreements, customer relationships, and totaxationbytheArkansasPublicService gsoeosdsmweinllt, awnads stuabxjaetcitontouandd-evral§ore26m-2a6s-- ACrokm.miPsSsCi,on2.01F2alAcrokn.C4a6b3l,e—MeSd.iWa.3LdP—v. 1606(b). The words "this subchapter" in 2012Ark. LEXIS 501 (Dec. 13, 2012). § 26-26-1606shouldbereadtomean"this 1-5-107 AGRICULTURE 2 CHAPTER 5 HOLIDAYS AND OBSERVANCES 1-5-107. Confederate Flag Day. RESEARCH REFERENCES ALR. Propriety of Prohibition of Dis- play or Wearing of Confederate Flag. 66 A.L.R.6th 493. TITLE 2 AGRICULTURE SUBTITLE LIVESTOCK 3. CHAPTER. 35. MARKETING, SALE,AND TRANSPORTATION. SUBTITLE LIVESTOCK 3. CHAPTER 35 MARKETING, SALE, AND TRANSPORTATION subchapter. 3. Arkansas Beef Council. — Subchapter 3 Arkansas Beef Council section. — — 2-35-303. Creation Members Orga- nization. — — 2-35-303. Creation Members Organization. (a) The Arkansas BeefCouncil is created. (b)(1) The council shall be composed ofseven (7) members appointed by the Governor and confirmed by the Senate as follows: (A) Three (3) cattle producer members shall represent the Arkan- sas Farm Bureau Federation and shall be appointed from a list of names submitted by the board ofdirectors ofthat organization; (B) Three (3) cattle producer members shall represent the Arkan- sas Cattlemen's Association and shall be appointed from a list of names submitted by the board ofdirectors ofthat organization; and (C) One (1) member shall be an active Arkansas livestock market operator who shall be appointed from the state at large. (2) Each year, not less than thirty (30) days prior to the expiration of the terms of the current council members whose terms expire in that — 3 BEERAND WINE MANUFACTURE, SALE, ETC. 3-5-1102 year, the organizations named shall submit to the Governor two (2) nominees for each position to be filled on the council from the respective organizations. The Governor shall appoint a succeeding member to the council from each organization's list ofnominees. (3) Eachmemberselected shall serve foraterm ofthree (3)years and until his or her successor is duly selected as provided in this section. (4) Vacancies in any unexpired term shall be filled by the Governor for the remainder ofthe unexpired term. The member appointed to fill the vacancy shall represent the same organization as the person whose term is unexpired. (c) Members of the council shall meet and organize immediately after their appointment and shall elect a chair, a vice chair, and a secretary-treasurer from the membership of the council whose duties shall be those customarily exercised by those officers or specifically designated by the council. (d) The council may establish rules and regulations for its own government and for the administration ofthe affairs ofthe council. History.Acts 1983,No. 160, § 2;A.S.A. Publisher's Notes. This section is be- 1947, § 78-1902. ing set out to reflect a correction in (b)(1). TITLE 3 ALCOHOLIC BEVERAGES CHAPTER. — 5. BEER AND WINE MANUFACTURE, SALE, AND TRANSPORTATION GENERALLY. ON-PREMISES CONSUMPTION. 9. CHAPTER 5 — BEER AND WINE MANUFACTURE, SALE, AND TRANSPORTATION GENERALLY subchapter. — 11. Beer Wholesalersand Suppliers. — — Subchapter 11 Beer Wholesalers and Suppliers section. 3-5-1102. Definitions. 3-5-1102. Definitions. (a) The following words or phrases, or the plural thereof, whenever they appear in this subchapter shall have, unless the context clearly requires otherwise, the meanings ascribed to them in this section: 3-5-1102 ALCOHOLIC BEVERAGES 4 (1) "Agreement" means any agreement between a wholesaler and a supplier, whether oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands ofbeer sold by a supplier; (2) "Ancillary business" means: (A) A business owned by the wholesaler, by a substantial stock- holder ofa wholesaler, orby a substantial partner ofawholesalerthe primary business of which is directly related to the transporting, storing, or marketingofthe brand orbrands ofbeerofa supplierwith whom the wholesaler has an agreement; or (B) Abusiness owned by a wholesaler, a substantial stockholder of a wholesaler, or a substantial partner ofa wholesaler which recycles empty beverage containers ofthe supplier; (3) "Beer" includes light wine and shall carry the same definitions as set forth in § 3-5-202(3) and (4); (4) "Designated member" means and includes: (A) The spouse, child, grandchild, parent, brother, or sister of a deceased individual who owned an interest, including a controlling interest, in a wholesaler; (B) Any person who inherits under the deceased individual's will or under the laws ofintestate succession ofthis state; (C) Any person or entity which has through a valid testamentary device bythe deceased individual succeededthe deceasedindividual's ownership interest in the wholesaler pursuant to a written contract or instrument which has been previously approved by a supplier; (D) The appointed and qualified personal representative and the testamentary trustee ofa deceased individual owning an ownership interest in a wholesaler; and (E) The person appointedby a court as the guardianorconservator ofthe property of an incapacitated individual owning an ownership interest in a wholesaler; (5) "Director" means the Director ofthe Alcoholic Beverage Control Division; (6) "Good faith" means honesty in fact and the observance ofreason- able commercial standards offairdealinginthe trade, as definedin and interpreted under the Uniform Commercial Code, § 4-1-201; (7) "Reasonable qualifications" means the standard ofthe reasonable criteria established and consistently used by the respective supplier for similarly situated wholesalers that entered into, continued, or renewed an agreement with the supplier during a period of twenty-four (24) months prior to the proposed transfer ofthe wholesaler's business, or for similarly situated wholesalers who have changed managers or designated managers during a period oftwenty-four (24) months prior to the proposed change in the manager or successor manager of the wholesaler's business; (8) "Retaliatory action" means the refusal to continue an agreement, or a material reduction in the quality ofservice or quantity ofproducts available to a wholesaler under an agreement, which refusal or reduc- tion is not made in good faith;