Stricken language would be deleted from and underlined language would be added to present law.
*CRH277* 03/19/2025 3:03:14 PM CRH277
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 523 3
4
By: Senator Irvin 5
By: Representative Dalby 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW REGARDING ALCOHOLIC 9
BEVERAGES; TO REMOVE THE REQUIREMENT THAT A PRIVATE 10
CLUB BE A NONPROFIT ORGANIZATION; AND FOR OTHER 11
PURPOSES. 12
13
14
Subtitle 15
TO AMEND THE LAW REGARDING ALCOHOLIC 16
BEVERAGES; AND TO REMOVE THE REQUIREMENT 17
THAT A PRIVATE CLUB BE A NONPROFIT 18
ORGANIZATION. 19
20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
22
SECTION 1. Legislative findings. 23
The General Assembly finds that: 24
(1) The regulatory framework governing private clubs in this state 25
needs to be modernized to reflect evolving economic realities; 26
(2) Permitting flexibility in business structures can enhance 27
efficiency and economic viability and encourage broader investment and 28
growth; 29
(3) Allowing private clubs in dry counties to operate through diverse 30
business entities, including without limitation corporations, partnerships, 31
and limited liability companies, will foster competitive fairness, stimulate 32
local economic development, and attract increased investment by offering 33
businesses greater operational flexibility; and 34
(4) Permitting private clubs in dry counties to function through any 35
legally recognized business entity structure, including without limitation 36 SB523
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corporations, partnerships, limited liability companies, or sole 1
proprietorships, aligns regulatory practices with modern business practices 2
and enhances the state's overall economic competitiveness. 3
4
SECTION 2. Arkansas Code § 3 -4-108(b), concerning the selling of 5
alcoholic beverages with a food purchase by a private club, is amended to 6
read as follows: 7
(b) A private club holding a valid alcoholic beverage permit may serve 8
alcoholic beverages in a sealed container during legal operating hours 9
directly to a member or a guest of a member of the private club who is 10
twenty-one (21) years of age or older along with the purchase of a meal as 11
defined in § 3-9-202: 12
(1) At the point of sale to be consumed off -premises; 13
(2) At the drive-through to be consumed off -premises; 14
(3) At the curbside to be consumed off -premises; or 15
(4) Delivered to a consumer at a location off -premises. 16
17
SECTION 3. Arkansas Code § 3 -5-1901(7), concerning the definition of a 18
"microbrewery-restaurant private club" under the law regarding microbrewery -19
restaurant private club permits, is amended to read as follows: 20
(7) “Microbrewery-restaurant private club” means a nonprofit 21
organization, corporation, partnership, limited liability company, or sole -22
propriertorship organized and existing or authorized to do business under the 23
laws of this state that : 24
(A) Is is both a microbrewery and a restaurant ; 25
(B) Has members, which are not directly or indirectly 26
benefitted by the entity's net revenues; 27
(C) Exists for some common recreational, social, 28
patriotic, political, national, benevolent, athletic, community hospitality, 29
professional association, entertainment, or other object or purpose other 30
than the consumption of alcoholic beverages; and 31
(D) Has existed for at least one (1) year ; 32
33
SECTION 4. Arkansas Code § 3 -5-1902 is amended to read as follows: 34
3-5-1902. Microbrewery-restaurant private club. 35
(a) A microbrewery-restaurant private club applicant shall be an 36 SB523
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entity organized and existing or authorized to do business under the laws of 1
this state before applying for a microbrewery -restaurant private club permit 2
as prescribed in this subchapter. 3
(b) The net revenues of the microbrewery -restaurant private club shall 4
not directly or indirectly benefit its members, except for the payment of 5
bona fide expenses of the microbrewery -restaurant private club's operations. 6
(c) Activities at the microbrewery -restaurant private club shall be 7
conducted for some common recreational, social, patriotic, political, 8
national, benevolent, athletic, community hospitality, professional 9
association, entertainment, or other object or purpose and not solely for the 10
consumption of alcoholic beverages. 11
(d)(1) At the time of application for a microbrewery -restaurant 12
private club permit, the entity shall own or lease, be the holder of a buy -13
sell agreement or offer and acceptance, or have an option to lease a 14
building, property, or space for the reasonable comfort and accommodation of 15
its members and the families and guests of its members. 16
(2) The microbrewery -restaurant private club shall restrict the 17
use of club facilities to its members and the families and guests of its 18
members. 19
(e) For purposes of this subchapter, a person is a member of the 20
microbrewery-restaurant private club only upon ordering an alcoholic beverage 21
as defined in § 3-5-1901. 22
(f)(c) If the entity holding a microbrewery -restaurant private club 23
permit additionally holds another alcoholic beverage permit, the hours of 24
operation authorized for the microbrewery -restaurant private club apply to 25
all permits of the entity. 26
27
SECTION 5. Arkansas Code § 3 -5-1904(a)(4) and (5), concerning the 28
selling and serving certain alcoholic beverages on -premises by the holder of 29
a microbrewery-restaurant private club permit are amended to read as follows: 30
(4) Sell on the premises beer, malt beverage, or hard cider 31
manufactured by the microbrewery -restaurant private club or commonly owned 32
facility to a member guest for on-premises consumption during legal operating 33
hours; 34
(5) Serve to a member guest on-premises complimentary samples of 35
beer, malt beverages, or hard cider produced by the microbrewery -restaurant 36 SB523
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private club; 1
2
SECTION 6. Arkansas Code § 3 -5-1904(e)(3), concerning advertising of a 3
social function by a microbrewery -restaurant private club, is amended to read 4
as follows: 5
(3) The advertising for the social function shall be preceded by 6
the words “Notice to Members” and the name of the club or organization 7
sponsoring the social activity. 8
9
SECTION 7. Arkansas Code § 3 -5-1905(a), concerning sales prohibited by 10
a microbrewery-restaurant private club, is amended to read as follows: 11
(a) A microbrewery-restaurant private club permitted under this 12
subchapter shall not sell alcoholic beverages either by the package or by the 13
drink to a guest: 14
(1) Nonmember for on -premises or off-premises consumption; or 15
(2) Member for off-premises consumption. 16
17
SECTION 8. Arkansas Code § 3 -5-1906(1), concerning the permit fee for 18
a microbrewery-restaurant private club, is amended to read as follows: 19
(1) Pay the applicable city or county permit fees and barrelage 20
or taxes and shall pay a state permitting fee to the Alcoholic Beverage 21
Control Division of seven hundred fifty dollars ($750) per fiscal year to 22
manufacture and sell to members guests its beer, malt beverages, and hard 23
cider for on-premises consumption and to sell to members guests other beer, 24
malt beverages, hard cider, and spirituous liquor purchased from a permitted 25
retailer for on-premises consumption; 26
27
SECTION 9. Arkansas Code § 3 -5-1907(a)(3), concerning the information 28
required for an application of an applicant that is reapplying for a 29
microbrewery-restaurant private club permit within two (2) years of denial, 30
is amended to read as follows: 31
(3) The petition on which the signatures are obtained under this 32
section shall state clearly that the purpose of the petition is to obtain an 33
alcoholic beverage permit for a microbrewery -restaurant private club and to 34
serve alcoholic beverages to members guests. 35
36 SB523
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1
SECTION 10. Arkansas Code § 3 -9-202(14), concerning the definition of 2
a private club, is amended to read as follows: 3
(14)(A)(i) “Private club” means an entity that is organized, 4
existing, or authorized to do business under the laws of this state as: a 5
(A) A nonprofit corporation ; or 6
(B) A sole-proprietorship, corporation, partnership, or 7
limited liability company organized and existing under the laws of this 8
state, no part of the net revenues of which shall inure directly or 9
indirectly to the benefit of any of its members or any other individual, 10
except for the payment of bona fide expenses of the club's operations, and 11
which is conducted for some common recreational, social, patriotic, 12
political, national, benevolent, athletic, community hospitality, 13
professional association, entertainment, or other nonprofit object or purpose 14
other than the consumption of alcoholic beverages. 15
(ii) The nonprofit corporation shall have been in 16
existence for a period of not less than one (1) year before applying for a 17
permit, as prescribed in this subchapter. 18
(iii) At the time of application for the permit, the 19
nonprofit corporation must have not fewer than one hundred (100) members and 20
at the time of application must own or lease, be the holder of a buy -sell 21
agreement or offer and acceptance, or have an option to lease a building, 22
property, or space therein for the reasonable comfort and accommodation of 23
its members and their families and guests and restrict the use of club 24
facilities to those persons. 25
(B) For purposes of this subdivision (14), a person shall 26
be required to become a member of the private club in any wet area of the 27
state only upon ordering an alcoholic beverage as defined under subdivision 28
(1) of this section. 29
(C) Furthermore, where the business entity that holds a 30
private club permit additionally holds a retail beer permit, retail wine for 31
consumption on the premises permit, or cafe or restaurant wine permit, the 32
hours of operation authorized for the private club shall likewise apply to 33
all permits of the business entity ; 34
35
SECTION 11. Arkansas Code § 3 -9-221 is amended to read as follows: 36 SB523
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3-9-221. Private clubs — Exception from alcoholic beverage laws. 1
(a) The General Assembly recognizes that: 2
(1) Many individuals in this state serve mixed drinks containing 3
alcoholic beverages to their friends and guests in the privacy of their homes 4
and, in addition, that many individuals associated together in private 5
nonprofit corporations established for fraternal, patriotic, recreational, 6
political, social, or other mutual purposes as authorized by law, established 7
not for pecuniary gain, have provided for their mutual convenience and for 8
the preparation and serving to themselves and their guests mixed drinks 9
prepared from alcoholic beverages owned by the members individually or in 10
common under a so-called “locker”, “pool”, or “revolving fund” system; 11
(2) Many individuals travel to this state to assemble at 12
regional meetings and conventions to associate with other individuals who are 13
members of professional and social organizations and that: 14
(A) Many of the restaurants and entertainment facilities 15
used for the meetings and conventions promote the hospitality of the host 16
communities where the restaurants, convention, and entertainment facilities 17
are located; 18
(B) Many of the host organizations plan to serve mixed 19
drinks containing alcoholic beverages to their friends and guests at these 20
meetings and while entertaining and dining during these conventions; and 21
(C) Many of the host communities have individuals who have 22
associated together in private nonprofit corporations established for 23
recreational, social, community hospitality, professional association, 24
entertainment, or other mutual purposes established, not for pecuniary gain, 25
but for their mutual convenience and to provide for the preparation and 26
serving to themselves and their guests mixed drinks prepared from alcoholic 27
beverages owned by the members individually or in common under a so -called 28
locker, pool, or revolving fund system; and 29
(3)(A)(i)(1)(A) That there There are a number of counties or 30
parts of counties where the public retail sale of intoxicating liquors has 31
not been approved by the voters. 32
(ii)(B) However, within those counties or parts of 33
counties there are significant developments of tourism facilities and large -34
event facilities that promote the economic development of the state .; 35
(B)(2) To ensure that tourism and large -event facilities 36 SB523
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as well as other associated activities are allowed to exist to promote the 1
economic development in the state, a new hotel , restaurant, or large-event 2
facility private club permit, for use in those places where the public retail 3
sale of intoxicating liquors is not authorized, should be created .; 4
(C)(3) These permits are necessary so that persons 5
visiting hotels, restaurants, or large-event facilities in these areas will 6
be able to enjoy the amenities that a person might find in other states .; 7
(D)(4) This additional permit will enhance the experience 8
of going to hotels, restaurants, or large-event facilities that may display 9
items of historic interest, contain extensive art collections, or host 10
musical or dramatic presentations .; and 11
(E)(i)(5) Further, since the counties or parts of counties 12
in which these hotels , restaurants, or large-event facilities will be located 13
do not allow the open public retail sale of intoxicating liquors, the 14
nonprofit corporations that have been established to have the hotel 15
facilities, restaurants, or the large-event facilities should be allowed to 16
offer alcoholic beverages to members of the nonprofit corporations and their 17
guests. 18
(ii) These nonprofit corporations have been 19
established for the purpose of operating a qualifying hotel or large -event 20
facility private club or other mutual purposes, not for pecuniary gain, but 21
for their mutual convenience and to provide for the preparation and serving 22
to the members and their guests alcoholic beverages owned by the members 23
individually or in common under a locker, pool, or revolving fund system. 24
(b)(1) In order to clarify the alcoholic beverage control laws of this 25
state and to regulate and prohibit the sale of alcoholic beverages in 26
violation of the provisions of this subchapter and other applicable alcoholic 27
beverage control laws of this state, the General Assembly determines that the 28
preparation, mixing, and serving of mixed drinks, beer, and wine for 29
consumption only on the premises of a private club as defined in § 3 -9-30
202(14) by the members thereof and their guests and the making of a charge 31
for such services shall not be deemed to be a sale or be in violation of any 32
law of this state prohibiting the manufacture, sale, barter, loan, or giving 33
away of intoxicating liquor whenever: 34
(A) The If the private club permittee is a nonprofit, the 35
alcoholic beverages, beer, and wine so consumed have been may be furnished or 36 SB523
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drawn from private stocks thereof belonging to such members, individually or 1
in common under a so -called locker, pool, or revolving fund system and that 2
are replenished only at the expense of such members; and 3
(B) The private club has acquired a permit from the 4
Alcoholic Beverage Control Board, in such form as the board may appropriately 5
determine. 6
(2)(A) A private club may serve any alcoholic beverage furnished 7
or drawn under the provisions of subdivision (b)(1) of this section on the 8
golf course on which the private club is located when the private club is 9
hosting a professional golf tournament or other charitable golf tournament 10
sponsored by a charitable organization described in 26 U.S.C. § 501(c)(3) and 11
the Director of the Alcoholic Beverage Control Division has been notified by 12
the private club at least sixty (60) calendar days prior to the beginning of 13
the event. 14
(B) Persons attending the event may purchase alcoholic 15
beverages from the private club shall be deemed guests of the private club, 16
and the club may serve the alcoholic beverages to the guests for cash . 17
(C) The director may promulgate rules he or she deems 18
necessary to implement this subdivision (b)(2). 19
(c) In order to clarify the alcoholic beverage control laws of this 20
state and to regulate and prohibit the sale of alcoholic beverages in 21
violation of the provisions of this subchapter and other applicable alcoholic 22
beverage control laws of this state, the General Assembly determines that the 23
preparation, mixing, and serving of wine and beer for consumption only by the 24
lodging guests on the premises of a bed and breakfast private club as defined 25
in § 3-9-202(2)§ 3-9-202 and the making of a charge for such services shall 26
not be deemed to be a sale or to be in violation of any law of this state 27
prohibiting the manufacture, sale, barter, loan, or giving away of 28
intoxicating liquor whenever: 29
(1) The wine and beer so consumed have been furnished or drawn 30
from private stocks belonging to an owner of the bed and breakfast private 31
club and are replenished only at the expense of such owner; 32
(2) The wine and beer consumed must have been purchased in an 33
Arkansas licensed retail alcoholic beverage store, as authorized by the 34
director; 35
(3)(2) The average annual volume of wine and beer consumed shall 36 SB523
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not exceed three gallons (3 gals.) per month per guest room; and 1
(4)(3) The bed and breakfast private club has acquired a permit 2
from the board in such form as the board may appropriately determine. 3
4
SECTION 12. Arkansas Code § 3 -9-222(c)(3), concerning the contents of 5
the notice required to be published by an applicant for a private club 6
permit, is amended to read as follows: 7
(3) The notice shall give the names of the managing agent and 8
the nonprofit corporation or, in the case of a bed and breakfast private club 9
or a hotel, restaurant, or large -event facility private club , the name of the 10
business owner, and shall state: 11
(A) That the manager , or in the case of a bed and 12
breakfast private club , the owner, at least one (1) partner, or the majority 13
stockholder is a citizen of Arkansas; 14
(B) That he or she is of good moral character; 15
(C) That he or she has never been convicted of a felony or 16
had a license to sell or dispense alcoholic beverages revoked within the five 17
(5) years preceding the date of the notice; and 18
(D) That he or she has never been convicted of violating 19
the laws of this state or of any other state governing the sale or dispensing 20
of alcoholic beverages. 21
22
SECTION 13. Arkansas Code § 3 -9-223(b), concerning a supplemental tax 23
on gross receipts for private clubs, is amended to read as follows: 24
(b)(1) In addition, there is levied a supplemental tax of ten percent 25
(10%) upon the gross proceeds or gross receipts derived by the private club 26
from the charges to members or guests for the preparation and serving of 27
mixed drinks or for the cooling and serving of beer and wine , drawn from the 28
private stocks of the members as provided in § 3 -9-221, for consumption only 29
on the premises where served. 30
(2) In addition to the tax levied under subdivision (b)(1) of 31
this section, a supplemental tax of four percent (4%) is levied on the gross 32
proceeds or gross receipts derived by the private club from the charges to 33
members or guests for the preparation and serving of mixed drinks drawn from 34
the private stocks of the members as provided in § 3 -9-221 for consumption 35
only on the premises where served. 36 SB523
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1
SECTION 14. Arkansas Code § 3 -9-223(e), concerning the passing on of 2
taxes prescribed on a private club, is amended to read as follows: 3
(e) The taxes herein prescribed may be passed on to the members or 4
guests. 5
6
SECTION 15. Arkansas Code § 3 -9-224 is repealed. 7
3-9-224. Private clubs — Sales prohibited. 8
(a) No private club permitted hereunder shall sell alcoholic beverages 9
either by the package or drink. 10
(b) Alcoholic beverages, beer, and wine owned by members may be stored 11
on the premises of the club. 12
(c) If any permittee shall sell, barter, loan, or give away any 13
intoxicating liquor in violation of this subchapter or other alcoholic 14
beverage control laws of this state, the permit of the club shall be revoked. 15
16
SECTION 16. Arkansas Code § 3 -9-226(c)(3), concerning the requirement 17
that advertising by a private club for a social function contain a "notice to 18
members", is repealed. 19
(3) The advertising for the social function shall be preceded by 20
the words “Notice to Members” and the name of the club or organization 21
sponsoring such social activity. 22
23
SECTION 17. Arkansas Code § 3 -9-226, concerning advertising by a 24
private club, is amended to add an additional subdivision to read as follows: 25
(d) This section shall not apply to a private club permit holder 26
operating under substantially the same trade name in both wet and dry 27
territories provided that the advertising is: 28
(1) Not directed exclusively toward a dry territory; and 29
(2) Otherwise compliant with applicable law. 30
31
SECTION 18. Arkansas Code § 3 -9-240 is amended to read as follows: 32
3-9-240. Hotel, restaurant, or large-event facility private club 33
permit. 34
(a)(1) An application for a hotel , restaurant, or large-event facility 35
private club permit shall be in writing and shall provide information 36 SB523
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concerning the applicant for the hotel , restaurant, or large-event facility 1
private club permit and the premises to be used by the applicant as the 2
Director of the Alcoholic Beverage Control Division requires. 3
(2) A hotel, restaurant, or large-event facility private club 4
permit may be issued only in a county or a territory of a county that does 5
not allow the public retail sale of intoxicating liquors as provided under § 6
3-8-201. 7
(3) A hotel, restaurant, or large -event facility private club 8
permit may be issued to a nonprofit corporation, corporation, partnership, 9
individual, or limited liability company. 10
(b) The application for a hotel , restaurant, or large-event facility 11
private club permit shall be accompanied by a check or money order for the 12
amount required by this section for the hotel , restaurant, or large-event 13
facility private club permit. 14
(c) A hotel, restaurant, or large-event facility private club permit 15
application shall contain a description of the premises permitted and provide 16
proof that the space leased has at least: 17
(1) Eighty (80) lodging rooms and five thousand square feet 18
(5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; 19
or 20
(2) Ten thousand square feet (10,000 sq. ft.) of interior or 21
exterior public meeting, banquet, exhibit hall, or restaurant space from a 22
large-event facility; or 23
(3) Seating capacity for not fewer than one hundred (100) people 24
in a restaurant as defined in § 3 -9-202. 25
(d) If the director grants an application for a hotel , restaurant, or 26
large-event facility private club permit, he or she shall issue a hotel , 27
restaurant, or large-event facility private club permit in a form as 28
determined by the rules of the Alcoholic Beverage Control Division. 29
(e)(1) A hotel, restaurant, or large-event facility private club 30
permit authorizes the dispensing, service, and consumption of alcoholic 31
beverages by and to members and their guests on the premises of a hotel , 32
restaurant, or large-event facility private club permittee for on-premises 33
consumption at a hotel or large-event facility leased to a hotel or large -34
event facility private club permittee . 35
(2) The areas of a hotel , restaurant, or large-event facility 36 SB523
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that may be leased to utilized by a hotel, restaurant, or large-event 1
facility private club permittee for purposes of a hotel , restaurant, or 2
large-event facility private club permit include without limitation: 3
(A) Sleeping rooms; 4
(B) Pool-side bars; 5
(C) Banquet facilities; 6
(D) Restaurants; 7
(E) Lobbies; 8
(F) Exhibit halls; 9
(G) Patios; and 10
(H) Outdoor gardens. 11
(3) Members Guests of the hotel or large -event facility private 12
club permittee that holds a hotel , restaurant, or large-event facility 13
private club permit may move from one area to another area designated under 14
subdivision (e)(2) of this section while consuming alcoholic beverages. 15
(f)(1) A hotel or large-event facility that leases all or a portion of 16
its premises to a hotel or large -event facility private club permittee shall 17
clearly identify the areas of the hotel or large -event facility that are 18
leased to the hotel or large -event facility private club permittee. 19
(2)(A) Areas leased by a hotel or large -event facility private 20
club permittee that contain articles of historic interest or art or dramatic 21
or musical presentations shall be open to members of the hotel or large -event 22
facility private club permittee and to nonmembers of the hotel or large -event 23
facility private club permittee. 24
(B) However, a A person must be a member or the guest of a 25
member of the hotel, restaurant, or large-event facility private club 26
permittee to consume or possess alcoholic beverages dispensed by the hotel , 27
restaurant, or large-event facility private club permittee. 28
(3)(2) Persons under twenty -one (21) years of age may be allowed 29
on the premises of the hotel , restaurant, or large-event facility private 30
club permittee. 31
(4)(A)(3)(A) A hotel holding a hotel , restaurant, or large-event 32
facility private club permit under this section may lease a sleeping room to 33
a hotel or large-event facility private club permittee for the service of 34
alcoholic beverages. 35
(B) The hotel holding a hotel or large -event facility 36 SB523
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private club permit may use room service to serve the alcoholic beverage. 1
(C)(B) The hotel holding a hotel , restaurant, or large-2
event facility private club permit may stock the leased a sleeping room with 3
alcoholic beverages, and the hotel or large -event facility private club 4
permittee through the hotel's employees shall inventory the alcoholic 5
beverages in the leased a sleeping room. 6
(D)(C) Sleeping rooms that are solely occupied by persons 7
twenty (20) years of age and under shall not receive alcoholic beverages 8
through room service or be stocked with alcoholic beverages. 9
(5) A hotel or large -event facility that leases space to a hotel 10
or large-event facility private club permittee shall provide a means of 11
entering the hotel or large -event facility to allow a person to knowingly 12
decide if he or she would like to become a member of the hotel or large -event 13
facility private club permittee. 14
(g)(1) A hotel leasing its premises to a hotel or large -event facility 15
private club permittee may include a membership application to the hotel or 16
large-event facility private club permittee as part of its registration 17
materials. 18
(2) A guest of a hotel becoming a member of the hotel or large -19
event facility private club permittee shall receive a membership card. 20
(3) A hotel that includes a membership application to the hotel 21
or large-event facility private club permittee as part of its registration 22
materials shall retain the registration materials as required by the 23
division. 24
(4) A hotel or large -event facility private club permittee may 25
refuse a membership or revoke a membership of a person that does not abide by 26
the hotel or large-event facility private club permittee rules. 27
(h)(1)(A)(g)(1)(A) For a hotel and a restaurant, the application and 28
renewal fee for a hotel , restaurant, or large-event facility private club 29
permit is one thousand five hundred dollars ($1,500) per year payable on or 30
before June 30 of each calendar year for the fiscal year beginning July 1. 31
(B) In an area in which the sale of intoxicating liquor 32
has not been authorized by local option as provided under § 3 -8-201 et seq., 33
the application for a hotel , restaurant, or large-event facility private club 34
permit shall be accompanied by an additional application fee of one thousand 35
five hundred dollars ($1,500). 36 SB523
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(2) The application and renewal fee for a large -event facility 1
for a hotel, restaurant, or large-event facility private club permit is two 2
thousand five hundred dollars ($2,500) per year payable on or before June 30 3
of each calendar year for the fiscal year beginning July 1. 4
(i) The director shall promulgate rules to enforce this section. 5
6
SECTION 19. DO NOT CODIFY. Transitional language. 7
(a) Upon the effective date of this act, a private club permit 8
currently held by a nonprofit corporation shall, upon written request by the 9
board of directors of the nonprofit corporation to the Alcoholic Beverage 10
Control Division and the Alcoholic Beverage Control Enforcement Division, be 11
transferred to a corporation, partnership, individual, or limited liability 12
company organized and existing under or authorized to do business under the 13
laws of this state operating at the same location. 14
(b) The successor entity and the entity's owners under a transfer 15
under subsection (a) of this section shall comply with all applicable private 16
club permit application procedures under existing law, except that a new 17
private club permit fee or application fee shall not be required. 18
(c) Upon approval of a transfer to the new entity, the board of 19
directors of a nonprofit corporation holding a private club permit may 20
transfer all assets of the nonprofit corporation, including without 21
limitation all alcoholic beverage inventories, equipment, and property, to 22
the successor business entity identified under subsection (a) of this 23
section. 24
(d) For a period of five (5) years from the effective date of this 25
act, the Secretary of State shall waive all fees associated with the 26
dissolution of nonprofit corporations currently holding private club permits 27
that become unnecessary due to the transfer authorized by this act. 28
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35
36