Stricken language would be deleted from and underlined language would be added to present law.
Act 500 of the Regular Session
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State of Arkansas As Engrossed: H3/4/25 H3/12/25 H3/19/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1455 3
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By: Representative Pilkington 5
By: Senator J. Bryant 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW REGARDING PRIVATE CLUBS; TO 9
AUTHORIZE CERTAIN PRIVATE CLUBS TO PURCHASE CERTAIN 10
PRODUCTS DIRECTLY FROM A SMALL BREWERY PERMIT HOLDER 11
UNDER AN EXCLUSIVE AGREEMENT ; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO AUTHORIZE CERTAIN PRIVATE CLUBS TO 16
PURCHASE CERTAIN PRODUCTS DIRECTLY FROM 17
A SMALL BREWERY PERMIT HOLDER UNDER AN 18
EXCLUSIVE AGREEMENT. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code § 3 -4-405(a)(21), concerning Class C permit 23
violations, is amended to read as follows: 24
(21) Unauthorized purchasing by a private club from other than a 25
retailer or small brewery permit holder as provided in § 3-9-221; 26
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SECTION 2. Arkansas Code § 3 -9-221(a) and (b), concerning the private 28
club exception from alcoholic beverage laws, are amended to read as follows: 29
(a) The General Assembly recognizes that: 30
(1) Many individuals in this state serve mixed drinks containing 31
alcoholic beverages to their friends and guests in the privacy of their homes 32
and, in addition, that many individuals associated together in private 33
nonprofit corporations established for fraternal, patriotic, recreational, 34
political, social, or other mutual purposes as authorized by law, established 35
not for pecuniary gain, have provided for their mutual convenience and for 36 As Engrossed: H3/4/25 H3/12/25 H3/19/25 HB1455
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the preparation and serving to themselves and their guests mixed drinks 1
prepared from alcoholic beverages owned by the members individually or in 2
common under a so-called “locker”, “pool”, or “revolving fund” system 3
lawfully purchased; 4
(2) Many individuals travel to this state to assemble at 5
regional meetings and conventions to associate with other individuals who are 6
members of professional and social organizations and that: 7
(A) Many of the restaurants and entertainment facilities 8
used for the meetings and conventions promote the hospitality of the host 9
communities where the restaurants, convention, and entertainment facilities 10
are located; 11
(B) Many of the host organizations plan to serve mixed 12
drinks containing alcoholic beverages to their friends and guests at these 13
meetings and while entertaining and dining during these conventions; and 14
(C) Many of the host communities have individuals who have 15
associated together in private nonprofit corporations established for 16
recreational, social, community hospitality, professional association, 17
entertainment, or other mutual purposes established, not for pecuniary gain, 18
but for their mutual convenience and to provide for the preparation and 19
serving to themselves and their guests mixed drinks prepared from alcoholic 20
beverages owned by the members individually or in common under a so -called 21
locker, pool, or revolving fund system lawfully purchased; and 22
(3)(A)(i) That there are a number of counties or parts of 23
counties where the public retail sale of intoxicating liquors has not been 24
approved by the voters. 25
(ii) However, within those counties or parts of 26
counties there are significant developments of tourism facilities and large -27
event facilities that promote the economic development of the state. 28
(B) To ensure that tourism and large -event facilities as 29
well as other associated activities are allowed to exist to promote the 30
economic development in the state, a new hotel or large -event facility 31
private club permit, for use in those places where the public retail sale of 32
intoxicating liquors is not authorized, should be created. 33
(C) These permits are necessary so that persons visiting 34
hotels or large-event facilities in these areas will be able to enjoy the 35
amenities that a person might find in other states. 36 As Engrossed: H3/4/25 H3/12/25 H3/19/25 HB1455
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(D) This additional permit will enhance the experience of 1
going to hotels or large -event facilities that may display items of historic 2
interest, contain extensive art collections, or host musical or dramatic 3
presentations. 4
(E)(i) Further, since the counties or parts of counties in 5
which these hotels or large -event facilities will be located do not allow the 6
open public retail sale of intoxicating liquors, the nonprofit corporations 7
that have been established to have the hotel facilities or the large -event 8
facilities should be allowed to offer alcoholic beverages to members of the 9
nonprofit corporations and their guests. 10
(ii) These nonprofit corporations have been 11
established for the purpose of operating a qualifying hotel or large -event 12
facility private club or other mutual purposes, not for pecuniary gain, but 13
for their mutual convenience and to provide for the preparation and serving 14
to the members and their guests alcoholic beverages owned by the members 15
individually or in common under a locker, pool, or revolving fund system 16
lawfully purchased. 17
(b)(1) In order to clarify the alcoholic beverage control laws of this 18
state and to regulate and prohibit the sale of alcoholic beverages in 19
violation of the provisions of this subchapter and other applicable alcoholic 20
beverage control laws of this state, the General Assembly determines that the 21
preparation, mixing, and serving of mixed drinks, beer, and wine for 22
consumption only on the premises of a private club as defined in § 3 -9-23
202(14) by the members thereof and their guests and the making of a charge 24
for such services shall not be deemed to be a sale or be in violation of any 25
law of this state prohibiting the manufacture, sale, barter, loan, or giving 26
away of intoxicating liquor whenever: 27
(A) The alcoholic beverages, beer, and wine so consumed 28
have been furnished or drawn from private stocks thereof belonging to such 29
members, individually or in common under a so-called locker, pool, or 30
revolving fund system and are replenished only at the expense of such 31
members; and 32
(B) The the private club has acquired a permit from the 33
Alcoholic Beverage Control Board, in such form as the board may appropriately 34
determine. 35
36 As Engrossed: H3/4/25 H3/12/25 H3/19/25 HB1455
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(2)(A) A private club may serve any alcoholic beverage furnished 1
or drawn under the provisions of subdivision (b)(1) of this section on the 2
golf course on which the private club is located when the private club is 3
hosting a professional golf tournament or other charitable golf tournament 4
sponsored by a charitable organization described in 26 U.S.C. § 501(c)(3) and 5
the Director of the Alcoholic Beverage Control Division has been notified by 6
the private club at least sixty (60) calendar days prior to the beginning of 7
the event. 8
(B) Persons attending the event shall be deemed guests of 9
the private club, and the club may serve the alcoholic beverages to the 10
guests for cash. 11
(C) The director may promulgate rules he or she deems 12
necessary to implement this subdivision (b)(2). 13
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SECTION 3. Arkansas Code § 3 -9-221, concerning private club exception 15
from alcoholic beverage laws, is amended to add an additional subsection to 16
read as follows: 17
(d)(1) A private club located in an entertainment district may 18
purchase from a holder of a small brewery permit the alcoholic beverages 19
brewed by the small brewery permit holder if the private club located in the 20
entertainment district and the small brewery permit holder are parties to an 21
exclusive agreement. 22
(2) The private club located in an entertainment district and the small 23
brewery permit holder that enter into an exclusive agreement under 24
subdivision (d)(1) of this section shall be located in adjacent counties. 25
(3) A small brewery permit holder may enter into an exclusive 26
agreement under this section with only one (1) private club at a time. 27
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SECTION 4. Arkansas Code § 3 -9-223(b), concerning the supplemental tax 29
on gross proceeds or gross receipts derived by the private clubs, is amended 30
to read as follows: 31
(b)(1) In addition, there is levied a supplemental tax of ten percent 32
(10%) upon the gross proceeds or gross receipts derived by the private club 33
from the charges to members for the preparation and serving of mixed drinks 34
or for the cooling and serving of beer and wine , drawn from the private 35
stocks of the members as provided in § 3-9-221, for consumption only on the 36 As Engrossed: H3/4/25 H3/12/25 H3/19/25 HB1455
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premises where served. 1
(2) In addition to the tax levied under subdivision (b)(1) of 2
this section, a supplemental tax of four percent (4%) is levied on the gross 3
proceeds or gross receipts derived by the private club from the charges to 4
members for the preparation and serving of mixed drinks drawn from the 5
private stocks of the members as provided in § 3-9-221 for consumption only 6
on the premises where served. 7
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/s/Pilkington 9
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APPROVED: 4/10/25 12
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