Stricken language would be deleted from and underlined language would be added to present law.
Act 421 of the Regular Session
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State of Arkansas As Engrossed: H3/13/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 345 3
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By: Senator Irvin 5
By: Representative Dalby 6
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For An Act To Be Entitled 8
AN ACT TO PROMOTE TOURISM AND ECONOMIC DEVELOPMENT BY 9
IMPROVING EFFICIENCY OF THE PRIVATE CLUB PERMITTING 10
PROCESS OF HOTELS, RESTAURANTS, AND LARGE -EVENT 11
FACILITIES; TO REMOVE AN OVERLY BURDENSOME TAX 12
REQUIREMENT; AND FOR OTHER PURPOSES. 13
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Subtitle 16
TO PROMOTE TOURISM AND ECONOMIC 17
DEVELOPMENT BY IMPROVING EFFICIENCY OF 18
THE PRIVATE CLUB PERMITTING PROCESS OF 19
HOTELS, RESTAURANTS, AND LARGE -EVENT 20
FACILITIES; AND TO REMOVE AN OVERLY 21
BURDENSOME TAX REQUIREMENT. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. DO NOT CODIFY. Legislative findings. 26
The General Assembly finds that: 27
(1) Arkansas is known as the Natural State because of its 28
natural beauty and abundant outdoor recreational opportunities; 29
(2)(A) Arkansas has been consistently recognized as one of the 30
top places in the United States to live and in a recent annual study as the 31
most popular state to move to in 2024; 32
(B) Respondents in the study cited job opportunities and 33
affordability as the respondents' primary motivators to move to Arkansas; 34
(3) As a state, Arkansas can recruit sought -after amenities, 35
including major restaurant chains that Arkansans express desire in their 36 As Engrossed: H3/13/25 SB345
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communities to promote continued growth and economic development; 1
(4) Arkansas can recruit and attract hotels, large -event 2
facilities, and restaurants by eliminating the requirement to establish a 3
nonprofit corporation to obtain a private club permit; and 4
(5) The requirement to establish a nonprofit corporation to 5
obtain a private club permit is overly burdensome and results in the 6
necessity of filing multiple tax returns and other business filings for each 7
business location in the same corporation. 8
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SECTION 2. Arkansas Code § 3 -9-202(14), concerning the definition of 10
"private club", is amended to read as follows: 11
(14)(A)(i) “Private club” means , except as provided in 12
subdivision (14)(D) of this section, a nonprofit corporation organized and 13
existing under the laws of this state, no part of the net revenues of which 14
shall inure directly or indirectly to the benefit of any of its members or 15
any other individual, except for the payment of bona fide expenses of the 16
club's operations, and which is conducted for some common recreational, 17
social, patriotic, political, national, benevolent, athletic, community 18
hospitality, professional association, entertainment, or other nonprofit 19
object or purpose other than the consumption of alcoholic beverages. 20
(ii) The nonprofit corporation shall have been in 21
existence for a period of not less than one (1) year before applying for a 22
permit, as prescribed in this subchapter. 23
(iii) At the time of application for the permit, the 24
nonprofit corporation must have not fewer than one hundred (100) members and 25
at the time of application must own or lease, be the holder of a buy -sell 26
agreement or offer and acceptance, or have an option to lease a building, 27
property, or space therein for the reasonable comfort and accommodation of 28
its members and their families and guests and restrict the use of club 29
facilities to those persons. 30
(B) For purposes of this subdivision (14), a person shall 31
be required to become a member of the private club in any wet area of the 32
state only upon ordering an alcoholic beverage as defined under subdivision 33
(1) of this section. 34
(C) Furthermore, where the business entity that holds a 35
private club permit additionally holds a retail beer permit, retail wine for 36 As Engrossed: H3/13/25 SB345
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consumption on the premises permit, or cafe or restaurant wine permit, the 1
hours of operation authorized for the private club shall likewise apply to 2
all permits of the business entity . 3
(D) A corporation, partnership, individual, or limited 4
liability company applying for a hotel, restaurant, or large -event facility 5
private club permit under § 3-9-221(a)(3)(B) is not required to form a 6
nonprofit corporation but shall otherwise comply with all requirements of § 7
3-9-240; 8
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SECTION 3. Arkansas Code § 3 -9-221(a)(3)(B)-(E), concerning counties 10
or parts of counties that have not approved the retail sale of intoxicating 11
liquors but are involved in tourism and promotion of economic development, 12
are amended to read as follows: 13
(B) To ensure that tourism and large -event facilities as 14
well as other associated activities are allowed to exist to promote the 15
economic development in the state, a new hotel , restaurant, or large-event 16
facility private club permit, for use in those places where the public retail 17
sale of intoxicating liquors is not authorized, should be created. 18
(C) These permits are necessary so that persons visiting 19
hotels, restaurants, or large-event facilities in these areas will be able to 20
enjoy the amenities that a person might find in other states. 21
(D) This additional permit will enhance the experience of 22
going to hotels, restaurants, or large-event facilities that may display 23
items of historic interest, contain extensive art collections, or host 24
musical or dramatic presentations. 25
(E)(i) Further, since the counties or parts of counties in 26
which these hotels, restaurants, or large-event facilities will be located do 27
not allow the open public retail sale of intoxicating liquors, the nonprofit 28
corporations that have been established to have the hotel facilities , 29
restaurants, or the large-event facilities should be allowed to offer 30
alcoholic beverages to members of the nonprofit corporations and their 31
guests. 32
(ii) These nonprofit corporations have been 33
established for the purpose of operating a qualifying hotel or large -event 34
facility private club or other mutual purposes, not for pecuniary gain, but 35
for their mutual convenience and to provide for the preparation and serving 36 As Engrossed: H3/13/25 SB345
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to the members and their guests alcoholic beverages owned by the members 1
individually or in common under a locker, pool, or revolving fund system. 2
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SECTION 4. Arkansas Code § 3 -9-222(c)(3)(A), concerning the contents 4
of the notice required to be published by an applicant for a private club 5
permit, is amended to read as follows: 6
(3) The notice shall give the names of the managing agent and 7
the nonprofit corporation or, in the case of a bed and breakfast private 8
club, the name of the business owner, and shall state: 9
(A) That the manager, or in the case of a bed and 10
breakfast private club or a hotel, restaurant, or large -event facility 11
private club, the owner, at least one (1) partner, or the majority 12
stockholder is a citizen of Arkansas; 13
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SECTION 5. Arkansas Code § 3 -9-240 is amended to read as follows: 15
3-9-240. Hotel, restaurant, or large-event facility private club 16
permit. 17
(a)(1) An application for a hotel , restaurant, or large-event facility 18
private club permit shall be in writing and shall provide information 19
concerning the applicant for the hotel , restaurant, or large-event facility 20
private club permit and the premises to be used by the applicant as the 21
Director of the Alcoholic Beverage Control Division requires. 22
(2) A hotel, restaurant, or large-event facility private club 23
permit may be issued only in a county or a territory of a county that does 24
not allow the public retail sale of intoxicating liquors as provided under § 25
3-8-201. 26
(3) A hotel, restaurant, or large -event facility private club 27
permit may be issued to a corporation, partnership, individual, or limited 28
liability company. 29
(b) The application for a hotel , restaurant, or large-event facility 30
private club permit shall be accompanied by a check or money order for the 31
amount required by this section for the hotel , restaurant, or large-event 32
facility private club permit. 33
(c) A hotel, restaurant, or large-event facility private club permit 34
application shall contain a description of the premises permitted and provide 35
proof that the space leased has at least: 36 As Engrossed: H3/13/25 SB345
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(1) Eighty (80) lodging rooms and five thousand square feet 1
(5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; 2
or 3
(2) Ten thousand square feet (10,000 sq. ft.) of interior or 4
exterior public meeting, banquet, exhibit hall, or restaurant space from a 5
large-event facility; or 6
(3) Seating capacity for not fewer than one hundred (100) people 7
in the restaurant that otherwise complies with the requirements of § 3 -9-8
202(16). 9
(d) If the director grants an application for a hotel , restaurant, or 10
large-event facility private club permit, he or she shall issue a hotel , 11
restaurant, or large-event facility private club permit in a form as 12
determined by the rules of the Alcoholic Beverage Control Division. 13
(e)(1) A hotel, restaurant, or large-event facility private club 14
permit authorizes the dispensing, service, and consumption of alcoholic 15
beverages by and to members and their guests on the premises of a hotel , 16
restaurant, or large-event facility private club permittee for on-premises 17
consumption at a hotel or large-event facility leased to a hotel or large -18
event facility private club permittee . 19
(2) The areas of a hotel , restaurant, or large-event facility 20
that may be leased to utilized by a hotel, restaurant, or large-event 21
facility private club permittee for purposes of a hotel , restaurant, or 22
large-event facility private club permit include without limitation: 23
(A) Sleeping rooms; 24
(B) Pool-side bars; 25
(C) Banquet facilities; 26
(D) Restaurants; 27
(E) Lobbies; 28
(F) Exhibit halls; 29
(G) Patios; and 30
(H) Outdoor gardens. 31
(3) Members Guests of the hotel or large -event facility private 32
club permittee that holds a hotel , restaurant, or large-event facility 33
private club permit may move from one area to another area designated under 34
subdivision (e)(2) of this section while consuming alcoholic beverages. 35
(f)(1) A hotel or large-event facility that leases all or a portion of 36 As Engrossed: H3/13/25 SB345
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its premises to a hotel or large -event facility private club permittee shall 1
clearly identify the areas of the hotel or large -event facility that are 2
leased to the hotel or large -event facility private club permittee. 3
(2)(A) Areas leased by a hotel or large -event facility private 4
club permittee that contain articles of historic interest or art or dramatic 5
or musical presentations shall be open to members of the hotel or large -event 6
facility private club permittee and to nonmembers of the hotel or large -event 7
facility private club permittee. 8
(B) However, a A person must be a member or the guest of a 9
member of the hotel, restaurant, or large-event facility private club 10
permittee to consume or possess alcoholic beverages dispensed by the hotel , 11
restaurant, or large-event facility private club permittee. 12
(3)(2) Persons under twenty -one (21) years of age may be allowed 13
on the premises of the hotel , restaurant, or large-event facility private 14
club permittee. 15
(4)(A)(3)(A) A hotel holding a hotel , restaurant, or large-event 16
facility private club permit under this section may lease a sleeping room to 17
a hotel or large-event facility private club permittee for the service of 18
alcoholic beverages. 19
(B) The hotel holding a hotel or large -event facility 20
private club permit may use room service to serve the alcoholic beverage. 21
(C)(B) The hotel holding a hotel , restaurant, or large-22
event facility private club permit may stock the leased a sleeping room with 23
alcoholic beverages, and the hotel or large -event facility private club 24
permittee through the hotel's employees shall inventory the alcoholic 25
beverages in the leased sleeping room. 26
(D)(C) Sleeping rooms that are solely occupied by persons 27
twenty (20) years of age and under shall not receive alcoholic beverages 28
through room service or be stocked with alcoholic beverages. 29
(5) A hotel or large -event facility that leases space to a hotel 30
or large-event facility private club permittee shall provide a means of 31
entering the hotel or large -event facility to allow a person to knowingly 32
decide if he or she would like to become a member of the hotel or large -event 33
facility private club permittee. 34
(g)(1) A hotel leasing its premises to a hotel or large -event facility 35
private club permittee may include a membership application to the hotel or 36 As Engrossed: H3/13/25 SB345
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large-event facility private club permittee as part of its registration 1
materials. 2
(2) A guest of a hotel becoming a member of the hotel or large -3
event facility private club permittee shall receive a membership card. 4
(3) A hotel that includes a membership application to the hotel 5
or large-event facility private club permittee as part of its registration 6
materials shall retain the registration materials as required by the 7
division. 8
(4) A hotel or large -event facility private club permittee may 9
refuse a membership or revoke a membership of a person that does not abide by 10
the hotel or large-event facility private club permittee rules. 11
(h)(1)(A)(g)(1)(A) For a hotel and a restaurant, the application and 12
renewal fee for a hotel , restaurant, or large-event facility private club 13
permit is one thousand five hundred dollars ($1,500) per year payable on or 14
before June 30 of each calendar year for the fiscal year beginning July 1. 15
(B) In an area in which the sale of intoxicating liquor 16
has not been authorized by local option as provided under § 3 -8-201 et seq., 17
the application for a hotel , restaurant, or large-event facility private club 18
permit shall be accompanied by an additional application fee of one thousand 19
five hundred dollars ($1,500). 20
(2) The application and renewal fee for a large -event facility 21
for a hotel, restaurant, or large-event facility private club permit is two 22
thousand five hundred dollars ($2,500) per year payable on or before June 30 23
of each calendar year for the fiscal year beginning July 1. 24
(i)(h) The director shall promulgate rules to enforce this section. 25
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/s/Irvin 27
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APPROVED: 3/25/25 30
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