AR
Arkansas Senate Bill SB345

Arkansas 2025 Regular Session

Arkansas Senate Bill SB345 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 421 of the Regular Session
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5-State of Arkansas As Engrossed: H3/13/25 1
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3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 SENATE BILL 345 3
86 4
97 By: Senator Irvin 5
108 By: Representative Dalby 6
119 7
1210 For An Act To Be Entitled 8
1311 AN ACT TO PROMOTE TOURISM AND ECONOMIC DEVELOPMENT BY 9
1412 IMPROVING EFFICIENCY OF THE PRIVATE CLUB PERMITTING 10
1513 PROCESS OF HOTELS, RESTAURANTS, AND LARGE -EVENT 11
1614 FACILITIES; TO REMOVE AN OVERLY BURDENSOME TAX 12
1715 REQUIREMENT; AND FOR OTHER PURPOSES. 13
1816 14
1917 15
2018 Subtitle 16
2119 TO PROMOTE TOURISM AND ECONOMIC 17
2220 DEVELOPMENT BY IMPROVING EFFICIENCY OF 18
2321 THE PRIVATE CLUB PERMITTING PROCESS OF 19
2422 HOTELS, RESTAURANTS, AND LARGE -EVENT 20
2523 FACILITIES; AND TO REMOVE AN OVERLY 21
2624 BURDENSOME TAX REQUIREMENT. 22
2725 23
2826 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2927 25
3028 SECTION 1. DO NOT CODIFY. Legislative findings. 26
3129 The General Assembly finds that: 27
3230 (1) Arkansas is known as the Natural State because of its 28
3331 natural beauty and abundant outdoor recreational opportunities; 29
3432 (2)(A) Arkansas has been consistently recognized as one of the 30
3533 top places in the United States to live and in a recent annual study as the 31
3634 most popular state to move to in 2024; 32
3735 (B) Respondents in the study cited job opportunities and 33
3836 affordability as the respondents' primary motivators to move to Arkansas; 34
3937 (3) As a state, Arkansas can recruit sought -after amenities, 35
40-including major restaurant chains that Arkansans express desire in their 36 As Engrossed: H3/13/25 SB345
38+including major restaurant chains that Arkansans express desire in their 36 SB345
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4541 communities to promote continued growth and economic development; 1
4642 (4) Arkansas can recruit and attract hotels, large -event 2
4743 facilities, and restaurants by eliminating the requirement to establish a 3
4844 nonprofit corporation to obtain a private club permit; and 4
4945 (5) The requirement to establish a nonprofit corporation to 5
5046 obtain a private club permit is overly burdensome and results in the 6
5147 necessity of filing multiple tax returns and other business filings for each 7
5248 business location in the same corporation. 8
5349 9
5450 SECTION 2. Arkansas Code § 3 -9-202(14), concerning the definition of 10
5551 "private club", is amended to read as follows: 11
5652 (14)(A)(i) “Private club” means , except as provided in 12
5753 subdivision (14)(D) of this section, a nonprofit corporation organized and 13
5854 existing under the laws of this state, no part of the net revenues of which 14
5955 shall inure directly or indirectly to the benefit of any of its members or 15
6056 any other individual, except for the payment of bona fide expenses of the 16
6157 club's operations, and which is conducted for some common recreational, 17
6258 social, patriotic, political, national, benevolent, athletic, community 18
6359 hospitality, professional association, entertainment, or other nonprofit 19
6460 object or purpose other than the consumption of alcoholic beverages. 20
6561 (ii) The nonprofit corporation shall have been in 21
6662 existence for a period of not less than one (1) year before applying for a 22
6763 permit, as prescribed in this subchapter. 23
6864 (iii) At the time of application for the permit, the 24
6965 nonprofit corporation must have not fewer than one hundred (100) members and 25
7066 at the time of application must own or lease, be the holder of a buy -sell 26
7167 agreement or offer and acceptance, or have an option to lease a building, 27
7268 property, or space therein for the reasonable comfort and accommodation of 28
7369 its members and their families and guests and restrict the use of club 29
7470 facilities to those persons. 30
7571 (B) For purposes of this subdivision (14), a person shall 31
7672 be required to become a member of the private club in any wet area of the 32
7773 state only upon ordering an alcoholic beverage as defined under subdivision 33
7874 (1) of this section. 34
7975 (C) Furthermore, where the business entity that holds a 35
80-private club permit additionally holds a retail beer permit, retail wine for 36 As Engrossed: H3/13/25 SB345
76+private club permit additionally holds a retail beer permit, retail wine for 36 SB345
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8579 consumption on the premises permit, or cafe or restaurant wine permit, the 1
8680 hours of operation authorized for the private club shall likewise apply to 2
8781 all permits of the business entity . 3
8882 (D) A corporation, partnership, individual, or limited 4
8983 liability company applying for a hotel, restaurant, or large -event facility 5
9084 private club permit under § 3 -9-221(a)(3)(B) is not required to form a 6
9185 nonprofit corporation but shall otherwise comply with all requirements of § 7
9286 3-9-240; 8
9387 9
9488 SECTION 3. Arkansas Code § 3 -9-221(a)(3)(B)-(E), concerning counties 10
9589 or parts of counties that have not approved the retail sale of intoxicating 11
9690 liquors but are involved in tourism and promotion of economic development, 12
9791 are amended to read as follows: 13
9892 (B) To ensure that tourism and large -event facilities as 14
9993 well as other associated activities are allowed to exist to promote the 15
10094 economic development in the state, a new hotel , restaurant, or large-event 16
10195 facility private club permit, for use in those places where the public retail 17
10296 sale of intoxicating liquors is not authorized, should be created. 18
10397 (C) These permits are necessary so that persons visiting 19
10498 hotels, restaurants, or large-event facilities in these areas will be able to 20
10599 enjoy the amenities that a person might find in other states. 21
106100 (D) This additional permit will enhance the experience of 22
107101 going to hotels, restaurants, or large-event facilities that may display 23
108102 items of historic interest, contain extensive art collections, or host 24
109103 musical or dramatic presentations. 25
110104 (E)(i) Further, since the counties or parts of counties in 26
111105 which these hotels, restaurants, or large-event facilities will be located do 27
112106 not allow the open public retail sale of intoxicating liquors, the nonprofit 28
113107 corporations that have been established to have the hotel facilities , 29
114108 restaurants, or the large-event facilities should be allowed to offer 30
115109 alcoholic beverages to members of the nonprofit corporations and their 31
116110 guests. 32
117111 (ii) These nonprofit corporations have been 33
118112 established for the purpose of operating a qualifying hotel or large -event 34
119113 facility private club or other mutual purposes, not for pecuniary gain, but 35
120-for their mutual convenience and to provide for the preparation and serving 36 As Engrossed: H3/13/25 SB345
114+for their mutual convenience and to provide for the preparation and serving 36 SB345
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125117 to the members and their guests alcoholic beverages owned by the members 1
126118 individually or in common under a locker, pool, or revolving fund system. 2
127119 3
128120 SECTION 4. Arkansas Code § 3 -9-222(c)(3)(A), concerning the contents 4
129121 of the notice required to be published by an applicant for a private club 5
130122 permit, is amended to read as follows: 6
131123 (3) The notice shall give the names of the managing agent and 7
132124 the nonprofit corporation or, in the case of a bed and breakfast private 8
133125 club, the name of the business owner, and shall state: 9
134126 (A) That the manager, or in the case of a bed and 10
135127 breakfast private club or a hotel, restaurant, or large -event facility 11
136128 private club, the owner, at least one (1) partner, or the majority 12
137129 stockholder is a citizen of Arkansas; 13
138130 14
139131 SECTION 5. Arkansas Code § 3 -9-240 is amended to read as follows: 15
140132 3-9-240. Hotel, restaurant, or large-event facility private club 16
141133 permit. 17
142134 (a)(1) An application for a hotel , restaurant, or large-event facility 18
143135 private club permit shall be in writing and shall provide information 19
144136 concerning the applicant for the hotel , restaurant, or large-event facility 20
145137 private club permit and the premises to be used by the applicant as the 21
146138 Director of the Alcoholic Beverage Control Division requires. 22
147139 (2) A hotel, restaurant, or large-event facility private club 23
148140 permit may be issued only in a county or a territory of a county that does 24
149141 not allow the public retail sale of intoxicating liquors as provided under § 25
150142 3-8-201. 26
151143 (3) A hotel, restaurant, or large -event facility private club 27
152144 permit may be issued to a corporation, partnership, individual, or limited 28
153145 liability company. 29
154146 (b) The application for a hotel , restaurant, or large-event facility 30
155147 private club permit shall be accompanied by a check or money order for the 31
156148 amount required by this section for the hotel , restaurant, or large-event 32
157149 facility private club permit. 33
158150 (c) A hotel, restaurant, or large-event facility private club permit 34
159151 application shall contain a description of the premises permitted and provide 35
160-proof that the space leased has at least: 36 As Engrossed: H3/13/25 SB345
152+proof that the space leased has at least: 36 SB345
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165155 (1) Eighty (80) lodging rooms and five thousand square feet 1
166156 (5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; 2
167157 or 3
168158 (2) Ten thousand square feet (10,000 sq. ft.) of interior or 4
169159 exterior public meeting, banquet, exhibit hall, or restaurant space from a 5
170160 large-event facility; or 6
171161 (3) Seating capacity for not fewer than one hundred (100) people 7
172162 in the restaurant that otherwise complies with the requirements of § 3 -9-8
173163 202(16). 9
174164 (d) If the director grants an application for a hotel , restaurant, or 10
175165 large-event facility private club permit, he or she shall issue a hotel , 11
176166 restaurant, or large-event facility private club permit in a form as 12
177167 determined by the rules of the Alcoholic Beverage Control Division. 13
178168 (e)(1) A hotel, restaurant, or large-event facility private club 14
179169 permit authorizes the dispensing, service, and consumption of alcoholic 15
180170 beverages by and to members and their guests on the premises of a hotel , 16
181171 restaurant, or large-event facility private club permittee for on-premises 17
182172 consumption at a hotel or large-event facility leased to a hotel or large -18
183173 event facility private club permittee . 19
184174 (2) The areas of a hotel , restaurant, or large-event facility 20
185175 that may be leased to utilized by a hotel, restaurant, or large-event 21
186176 facility private club permittee for purposes of a hotel , restaurant, or 22
187177 large-event facility private club permit include without limitation: 23
188178 (A) Sleeping rooms; 24
189179 (B) Pool-side bars; 25
190180 (C) Banquet facilities; 26
191181 (D) Restaurants; 27
192182 (E) Lobbies; 28
193183 (F) Exhibit halls; 29
194184 (G) Patios; and 30
195185 (H) Outdoor gardens. 31
196186 (3) Members Guests of the hotel or large -event facility private 32
197187 club permittee that holds a hotel , restaurant, or large-event facility 33
198188 private club permit may move from one area to another area designated under 34
199189 subdivision (e)(2) of this section while consuming alcoholic beverages. 35
200- (f)(1) A hotel or large-event facility that leases all or a portion of 36 As Engrossed: H3/13/25 SB345
190+ (f)(1) A hotel or large-event facility that leases all or a portion of 36 SB345
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205193 its premises to a hotel or large -event facility private club permittee shall 1
206194 clearly identify the areas of the hotel or large -event facility that are 2
207195 leased to the hotel or large -event facility private club permittee. 3
208196 (2)(A) Areas leased by a hotel or large -event facility private 4
209197 club permittee that contain articles of historic interest or art or dramatic 5
210198 or musical presentations shall be open to members of the hotel or large -event 6
211199 facility private club permittee and to nonmembers of the hotel or large -event 7
212200 facility private club permittee. 8
213201 (B) However, a A person must be a member or the guest of a 9
214202 member of the hotel, restaurant, or large-event facility private club 10
215203 permittee to consume or possess alcoholic beverages dispensed by the hotel , 11
216204 restaurant, or large-event facility private club permittee. 12
217205 (3)(2) Persons under twenty -one (21) years of age may be allowed 13
218206 on the premises of the hotel , restaurant, or large-event facility private 14
219207 club permittee. 15
220208 (4)(A)(3)(A) A hotel holding a hotel , restaurant, or large-event 16
221209 facility private club permit under this section may lease a sleeping room to 17
222210 a hotel or large-event facility private club permittee for the service of 18
223211 alcoholic beverages. 19
224212 (B) The hotel holding a hotel or large -event facility 20
225213 private club permit may use room service to serve the alcoholic beverage. 21
226214 (C)(B) The hotel holding a hotel , restaurant, or large-22
227215 event facility private club permit may stock the leased a sleeping room with 23
228216 alcoholic beverages, and the hotel or large -event facility private club 24
229217 permittee through the hotel's employees shall inventory the alcoholic 25
230218 beverages in the leased sleeping room. 26
231219 (D)(C) Sleeping rooms that are solely occupied by persons 27
232220 twenty (20) years of age and under shall not receive alcoholic beverages 28
233221 through room service or be stocked with alcoholic beverages. 29
234222 (5) A hotel or large -event facility that leases space to a hotel 30
235223 or large-event facility private club permittee shall provide a means of 31
236224 entering the hotel or large -event facility to allow a person to knowingly 32
237225 decide if he or she would like to become a member of the hotel or large -event 33
238226 facility private club permittee. 34
239227 (g)(1) A hotel leasing its premises to a hotel or large -event facility 35
240-private club permittee may include a membership application to the hotel or 36 As Engrossed: H3/13/25 SB345
228+private club permittee may include a membership application to the hotel or 36 SB345
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245231 large-event facility private club permittee as part of its registration 1
246232 materials. 2
247233 (2) A guest of a hotel becoming a member of the hotel or large -3
248234 event facility private club permittee shall receive a membership card. 4
249235 (3) A hotel that includes a membership application to the hotel 5
250236 or large-event facility private club permittee as part of its registration 6
251237 materials shall retain the registration materials as required by the 7
252238 division. 8
253239 (4) A hotel or large -event facility private club permittee may 9
254240 refuse a membership or revoke a membership of a person that does not abide by 10
255241 the hotel or large-event facility private club permittee rules. 11
256242 (h)(1)(A)(g)(1)(A) For a hotel and a restaurant, the application and 12
257243 renewal fee for a hotel , restaurant, or large-event facility private club 13
258244 permit is one thousand five hundred dollars ($1,500) per year payable on or 14
259245 before June 30 of each calendar year for the fiscal year beginning July 1. 15
260246 (B) In an area in which the sale of intoxicating liquor 16
261247 has not been authorized by local option as provided under § 3 -8-201 et seq., 17
262248 the application for a hotel , restaurant, or large-event facility private club 18
263249 permit shall be accompanied by an additional application fee of one thousand 19
264250 five hundred dollars ($1,500). 20
265251 (2) The application and renewal fee for a large -event facility 21
266252 for a hotel, restaurant, or large-event facility private club permit is two 22
267253 thousand five hundred dollars ($2,500) per year payable on or before June 30 23
268254 of each calendar year for the fiscal year beginning July 1. 24
269- (i)(h) The director shall promulgate rules to enforce this section. 25
270- 26
271-/s/Irvin 27
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255+ (h) A restaurant holding a hotel, restaurant, or large -event facility 25
256+private club permit may not generate more than thirty -five percent (35%) of 26
257+the restaurant's revenue from the sale of alcohol. 27
258+ (i) The director shall promulgate rules to enforce this section. 28
273259 29
274-APPROVED: 3/25/25 30
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