Arkansas 2025 Regular Session

Arkansas Senate Bill SB523 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 762 of the Regular Session
3		-	CRH277 04-07-2025 10:30:00 CRH277
4		-
5		-	State of Arkansas As Engrossed: H4/7/25 1
	2	+	CRH277 03/19/2025 3:03:14 PM CRH277
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 SENATE BILL 523 3
8	6		4
9	7		By: Senator Irvin 5
10	8		By: Representative Dalby 6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO AMEND THE LAW REGARDING ALCOHOLIC 9
14	12		BEVERAGES; TO REMOVE THE REQUIREMENT THAT A PRIVATE 10
15	13		CLUB BE A NONPROFIT ORGANIZATION; AND FOR OTHER 11
16	14		PURPOSES. 12
17	15		13
18	16		14
19	17		Subtitle 15
20	18		TO AMEND THE LAW REGARDING ALCOHOLIC 16
21	19		BEVERAGES; AND TO REMOVE THE REQUIREMENT 17
22	20		THAT A PRIVATE CLUB BE A NONPROFIT 18
23	21		ORGANIZATION. 19
24	22		20
25	23		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
26	24		22
27		-	SECTION 1. ~~DO NOT CODIFY.~~ Legislative findings. 23
	25	+	SECTION 1. Legislative findings. 23
28	26		The General Assembly finds that: 24
29	27		(1) The regulatory framework governing private clubs in this state 25
30	28		needs to be modernized to reflect evolving economic realities; 26
31	29		(2) Permitting flexibility in business structures can enhance 27
32	30		efficiency and economic viability and encourage broader investment and 28
33	31		growth; 29
34	32		(3) Allowing private clubs in dry counties to operate through diverse 30
35	33		business entities, including without limitation corporations, partnerships, 31
36	34		and limited liability companies, will foster competitive fairness, stimulate 32
37	35		local economic development, and attract increased investment by offering 33
38	36		businesses greater operational flexibility; and 34
39	37		(4) Permitting private clubs in dry counties to function through any 35
40		-	legally recognized business entity structure, including without limitation 36 ~~As Engrossed: H4/7/25~~ SB523
	38	+	legally recognized business entity structure, including without limitation 36 SB523
41	39
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43		-
44		-
	40	+	2 03/19/2025 3:03:14 PM CRH277
45	41		corporations, partnerships, limited liability companies, or sole 1
46	42		proprietorships, aligns regulatory practices with modern business practices 2
47	43		and enhances the state's overall economic competitiveness. 3
48	44		4
49	45		SECTION 2. Arkansas Code § 3 -4-108(b), concerning the selling of 5
50	46		alcoholic beverages with a food purchase by a private club, is amended to 6
51	47		read as follows: 7
52	48		(b) A private club holding a valid alcoholic beverage permit may serve 8
53	49		alcoholic beverages in a sealed container during legal operating hours 9
54	50		directly to a member or a guest of a member of the private club who is 10
55	51		twenty-one (21) years of age or older along with the purchase of a meal as 11
56	52		defined in § 3-9-202: 12
57	53		(1) At the point of sale to be consumed off -premises; 13
58	54		(2) At the drive-through to be consumed off -premises; 14
59	55		(3) At the curbside to be consumed off -premises; or 15
60	56		(4) Delivered to a consumer at a location off -premises. 16
61	57		17
62		-	SECTION 3. Arkansas Code § 3 -~~4-405~~(~~a)(18)-(20~~), concerning ~~certain~~ 18
63		-	~~actions by~~ private ~~clubs that are Class C permit violations, are repealed.~~ 19
64		-	~~(18) Failure~~ to ~~maintain membership books or properly maintain~~ 20
65		-	~~guestbooks by a~~ private club; 21
66		-	~~(19) Allowing an unauthorized guest in a private club;~~ 22
67		-	~~(20) Dispensing~~ to ~~nonmembers or nonguests by a private club;~~ 23
68		-	24
69		-	~~SECTION 4. Arkansas Code § 3 -5-1901(7), concerning the definition of~~ a 25
70		-	~~microbrewery-restaurant private club"~~ ~~under the law regarding microbrewery -~~26
71		-	~~restaurant private club permits,~~ ~~is amended to read as follows:~~ 27
72		-	(7) ~~“Microbrewery-restaurant private club”~~ ~~means a nonprofit~~ 28
73		-	~~organization~~, ~~corporation~~, ~~partnership~~, ~~limited liability company~~, ~~or sole -~~29
74		-	~~propriertorship organized and existing~~ or ~~authorized to do business under the~~ 30
75		-	~~laws~~ of ~~this state that :~~ 31
76		-	(A) ~~Is is both a microbrewery and a restaurant~~ ; 32
77		-	~~(B) Has members, which are not directly or indirectly~~ 33
78		-	~~benefitted by the entity's net revenues;~~ 34
79		-	~~(C) Exists for some common recreational, social,~~ 35
80		-	~~patriotic, political,~~ ~~national, benevolent,~~ ~~athletic, community hospitality,~~ 36 ~~As Engrossed: H4/7/25~~ SB523
	58	+	SECTION 3. Arkansas Code § 3 -5-1901(7), concerning the definition of a 18
	59	+	"microbrewery-restaurant private club" under the law regarding microbrewery -19
	60	+	restaurant private club permits, is amended to read as follows: 20
	61	+	(7) “Microbrewery-restaurant private club” means a nonprofit 21
	62	+	organization, corporation, partnership, limited liability company, or sole -22
	63	+	propriertorship organized and existing or authorized to do business under the 23
	64	+	laws of this state that : 24
	65	+	(A) Is is both a microbrewery and a restaurant ; 25
	66	+	(B) Has members, which are not directly or indirectly 26
	67	+	benefitted by the entity's net revenues; 27
	68	+	(C) Exists for some common recreational, social, 28
	69	+	patriotic, political, national, benevolent, athletic, community hospitality, 29
	70	+	professional association, entertainment, or other object or purpose other 30
	71	+	than the consumption of alcoholic beverages; and 31
	72	+	(D) Has existed for at least one (1) year ; 32
	73	+	33
	74	+	SECTION 4. Arkansas Code § 3 -5-1902 is amended to read as follows: 34
	75	+	3-5-1902. Microbrewery-restaurant private club. 35
	76	+	(a) A microbrewery-restaurant private club applicant shall be an 36 SB523
81	77
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	79	+	entity organized and existing or authorized to do business under the laws of 1
	80	+	this state before applying for a microbrewery -restaurant private club permit 2
	81	+	as prescribed in this subchapter. 3
	82	+	(b) The net revenues of the microbrewery -restaurant private club shall 4
	83	+	not directly or indirectly benefit its members, except for the payment of 5
	84	+	bona fide expenses of the microbrewery -restaurant private club's operations. 6
	85	+	(c) Activities at the microbrewery -restaurant private club shall be 7
	86	+	conducted for some common recreational, social, patriotic, political, 8
	87	+	national, benevolent, athletic, community hospitality, professional 9
	88	+	association, entertainment, or other object or purpose and not solely for the 10
	89	+	consumption of alcoholic beverages. 11
	90	+	(d)(1) At the time of application for a microbrewery -restaurant 12
	91	+	private club permit, the entity shall own or lease, be the holder of a buy -13
	92	+	sell agreement or offer and acceptance, or have an option to lease a 14
	93	+	building, property, or space for the reasonable comfort and accommodation of 15
	94	+	its members and the families and guests of its members. 16
	95	+	(2) The microbrewery -restaurant private club shall restrict the 17
	96	+	use of club facilities to its members and the families and guests of its 18
	97	+	members. 19
	98	+	(e) For purposes of this subchapter, a person is a member of the 20
	99	+	microbrewery-restaurant private club only upon ordering an alcoholic beverage 21
	100	+	as defined in § 3-5-1901. 22
	101	+	(f)(c) If the entity holding a microbrewery -restaurant private club 23
	102	+	permit additionally holds another alcoholic beverage permit, the hours of 24
	103	+	operation authorized for the microbrewery -restaurant private club apply to 25
	104	+	all permits of the entity. 26
	105	+	27
	106	+	SECTION 5. Arkansas Code § 3 -5-1904(a)(4) and (5), concerning the 28
	107	+	selling and serving certain alcoholic beverages on -premises by the holder of 29
	108	+	a microbrewery-restaurant private club permit are amended to read as follows: 30
	109	+	(4) Sell on the premises beer, malt beverage, or hard cider 31
	110	+	manufactured by the microbrewery -restaurant private club or commonly owned 32
	111	+	facility to a member guest for on-premises consumption during legal operating 33
	112	+	hours; 34
	113	+	(5) Serve to a member guest on-premises complimentary samples of 35
	114	+	beer, malt beverages, or hard cider produced by the microbrewery -restaurant 36 SB523
83	115
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	117	+	private club; 1
	118	+	2
	119	+	SECTION 6. Arkansas Code § 3 -5-1904(e)(3), concerning advertising of a 3
	120	+	social function by a microbrewery -restaurant private club, is amended to read 4
	121	+	as follows: 5
	122	+	(3) The advertising for the social function shall be preceded by 6
	123	+	the words “Notice to Members” and the name of the club or organization 7
	124	+	sponsoring the social activity. 8
	125	+	9
	126	+	SECTION 7. Arkansas Code § 3 -5-1905(a), concerning sales prohibited by 10
	127	+	a microbrewery-restaurant private club, is amended to read as follows: 11
	128	+	(a) A microbrewery-restaurant private club permitted under this 12
	129	+	subchapter shall not sell alcoholic beverages either by the package or by the 13
	130	+	drink to a guest: 14
	131	+	(1) Nonmember for on -premises or off-premises consumption; or 15
	132	+	(2) Member for off-premises consumption. 16
	133	+	17
	134	+	SECTION 8. Arkansas Code § 3 -5-1906(1), concerning the permit fee for 18
	135	+	a microbrewery-restaurant private club, is amended to read as follows: 19
	136	+	(1) Pay the applicable city or county permit fees and barrelage 20
	137	+	or taxes and shall pay a state permitting fee to the Alcoholic Beverage 21
	138	+	Control Division of seven hundred fifty dollars ($750) per fiscal year to 22
	139	+	manufacture and sell to members guests its beer, malt beverages, and hard 23
	140	+	cider for on-premises consumption and to sell to members guests other beer, 24
	141	+	malt beverages, hard cider, and spirituous liquor purchased from a permitted 25
	142	+	retailer for on-premises consumption; 26
	143	+	27
	144	+	SECTION 9. Arkansas Code § 3 -5-1907(a)(3), concerning the information 28
	145	+	required for an application of an applicant that is reapplying for a 29
	146	+	microbrewery-restaurant private club permit within two (2) years of denial, 30
	147	+	is amended to read as follows: 31
	148	+	(3) The petition on which the signatures are obtained under this 32
	149	+	section shall state clearly that the purpose of the petition is to obtain an 33
	150	+	alcoholic beverage permit for a microbrewery -restaurant private club and to 34
	151	+	serve alcoholic beverages to members guests. 35
	152	+	36 SB523
84	153
85		-	professional association, entertainment, or other object or purpose other 1
86		-	than the consumption of alcoholic beverages; and 2
87		-	(D) Has existed for at least one (1) year ; 3
88		-	4
89		-	SECTION 5. Arkansas Code § 3 -5-1902 is amended to read as follows: 5
90		-	3-5-1902. Microbrewery-restaurant private club. 6
91		-	(a) A microbrewery-restaurant private club applicant shall be an 7
92		-	entity organized and existing or authorized to do business under the laws of 8
93		-	this state before applying for a microbrewery -restaurant private club permit 9
94		-	as prescribed in this subchapter. 10
95		-	(b) The net revenues of the microbrewery -restaurant private club shall 11
96		-	not directly or indirectly benefit its members, except for the payment of 12
97		-	bona fide expenses of the microbrewery -restaurant private club's operations. 13
98		-	(c) Activities at the microbrewery -restaurant private club shall be 14
99		-	conducted for some common recreational, social, patriotic, political, 15
100		-	national, benevolent, athletic, community hospitality, professional 16
101		-	association, entertainment, or other object or purpose and not solely for the 17
102		-	consumption of alcoholic beverages. 18
103		-	(d)(1) At the time of application for a microbrewery -restaurant 19
104		-	private club permit, the entity shall own or lease, be the holder of a buy -20
105		-	sell agreement or offer and acceptance, or have an option to lease a 21
106		-	building, property, or space for the reasonable comfort and accommodation of 22
107		-	its members and the families and guests of its members. 23
108		-	(2) The microbrewery -restaurant private club shall restrict the 24
109		-	use of club facilities to its members and the families and guests of its 25
110		-	members. 26
111		-	(e) For purposes of this subchapter, a person is a member of the 27
112		-	microbrewery-restaurant private club only upon ordering an alcoholic beverage 28
113		-	as defined in § 3-5-1901. 29
114		-	(f)(c) If the entity holding a microbrewery -restaurant private club 30
115		-	permit additionally holds another alcoholic beverage permit, the hours of 31
116		-	operation authorized for the microbrewery -restaurant private club apply to 32
117		-	all permits of the entity. 33
118		-	34
119		-	SECTION 6. Arkansas Code § 3 -5-1904(a)(4) and (5), concerning the 35
120		-	selling and serving certain alcoholic beverages on -premises by the holder of 36 As Engrossed: H4/7/25 SB523
	154	+	5 03/19/2025 3:03:14 PM CRH277
	155	+	1
	156	+	SECTION 10. Arkansas Code § 3 -9-202(14), concerning the definition of 2
	157	+	a private club, is amended to read as follows: 3
	158	+	(14)(A)(i) “Private club” means an entity that is organized, 4
	159	+	existing, or authorized to do business under the laws of this state as: a 5
	160	+	(A) A nonprofit corporation ; or 6
	161	+	(B) A sole-proprietorship, corporation, partnership, or 7
	162	+	limited liability company organized and existing under the laws of this 8
	163	+	state, no part of the net revenues of which shall inure directly or 9
	164	+	indirectly to the benefit of any of its members or any other individual, 10
	165	+	except for the payment of bona fide expenses of the club's operations, and 11
	166	+	which is conducted for some common recreational, social, patriotic, 12
	167	+	political, national, benevolent, athletic, community hospitality, 13
	168	+	professional association, entertainment, or other nonprofit object or purpose 14
	169	+	other than the consumption of alcoholic beverages. 15
	170	+	(ii) The nonprofit corporation shall have been in 16
	171	+	existence for a period of not less than one (1) year before applying for a 17
	172	+	permit, as prescribed in this subchapter. 18
	173	+	(iii) At the time of application for the permit, the 19
	174	+	nonprofit corporation must have not fewer than one hundred (100) members and 20
	175	+	at the time of application must own or lease, be the holder of a buy -sell 21
	176	+	agreement or offer and acceptance, or have an option to lease a building, 22
	177	+	property, or space therein for the reasonable comfort and accommodation of 23
	178	+	its members and their families and guests and restrict the use of club 24
	179	+	facilities to those persons. 25
	180	+	(B) For purposes of this subdivision (14), a person shall 26
	181	+	be required to become a member of the private club in any wet area of the 27
	182	+	state only upon ordering an alcoholic beverage as defined under subdivision 28
	183	+	(1) of this section. 29
	184	+	(C) Furthermore, where the business entity that holds a 30
	185	+	private club permit additionally holds a retail beer permit, retail wine for 31
	186	+	consumption on the premises permit, or cafe or restaurant wine permit, the 32
	187	+	hours of operation authorized for the private club shall likewise apply to 33
	188	+	all permits of the business entity ; 34
	189	+	35
	190	+	SECTION 11. Arkansas Code § 3 -9-221 is amended to read as follows: 36 SB523
121	191
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	193	+	3-9-221. Private clubs — Exception from alcoholic beverage laws. 1
	194	+	(a) The General Assembly recognizes that: 2
	195	+	(1) Many individuals in this state serve mixed drinks containing 3
	196	+	alcoholic beverages to their friends and guests in the privacy of their homes 4
	197	+	and, in addition, that many individuals associated together in private 5
	198	+	nonprofit corporations established for fraternal, patriotic, recreational, 6
	199	+	political, social, or other mutual purposes as authorized by law, established 7
	200	+	not for pecuniary gain, have provided for their mutual convenience and for 8
	201	+	the preparation and serving to themselves and their guests mixed drinks 9
	202	+	prepared from alcoholic beverages owned by the members individually or in 10
	203	+	common under a so-called “locker”, “pool”, or “revolving fund” system; 11
	204	+	(2) Many individuals travel to this state to assemble at 12
	205	+	regional meetings and conventions to associate with other individuals who are 13
	206	+	members of professional and social organizations and that: 14
	207	+	(A) Many of the restaurants and entertainment facilities 15
	208	+	used for the meetings and conventions promote the hospitality of the host 16
	209	+	communities where the restaurants, convention, and entertainment facilities 17
	210	+	are located; 18
	211	+	(B) Many of the host organizations plan to serve mixed 19
	212	+	drinks containing alcoholic beverages to their friends and guests at these 20
	213	+	meetings and while entertaining and dining during these conventions; and 21
	214	+	(C) Many of the host communities have individuals who have 22
	215	+	associated together in private nonprofit corporations established for 23
	216	+	recreational, social, community hospitality, professional association, 24
	217	+	entertainment, or other mutual purposes established, not for pecuniary gain, 25
	218	+	but for their mutual convenience and to provide for the preparation and 26
	219	+	serving to themselves and their guests mixed drinks prepared from alcoholic 27
	220	+	beverages owned by the members individually or in common under a so -called 28
	221	+	locker, pool, or revolving fund system; and 29
	222	+	(3)(A)(i)(1)(A) That there There are a number of counties or 30
	223	+	parts of counties where the public retail sale of intoxicating liquors has 31
	224	+	not been approved by the voters. 32
	225	+	(ii)(B) However, within those counties or parts of 33
	226	+	counties there are significant developments of tourism facilities and large -34
	227	+	event facilities that promote the economic development of the state .; 35
	228	+	(B)(2) To ensure that tourism and large -event facilities 36 SB523
123	229
124		-
125		-	a microbrewery-restaurant private club permit are amended to read as follows: 1
126		-	(4) Sell on the premises beer, malt beverage, or hard cider 2
127		-	manufactured by the microbrewery -restaurant private club or commonly owned 3
128		-	facility to a member guest for on-premises consumption during legal operating 4
129		-	hours; 5
130		-	(5) Serve to a member guest on-premises complimentary samples of 6
131		-	beer, malt beverages, or hard cider produced by the microbrewery -restaurant 7
132		-	private club; 8
133		-	9
134		-	SECTION 7. Arkansas Code § 3 -5-1904(e)(3), concerning advertising of a 10
135		-	social function by a microbrewery -restaurant private club, is amended to read 11
136		-	as follows: 12
137		-	(3) The advertising for the social function shall be preceded by 13
138		-	the words “Notice to Members” and the name of the club or organization 14
139		-	sponsoring the social activity. 15
140		-	16
141		-	SECTION 8. Arkansas Code § 3-5-1905(a), concerning sales prohibited by 17
142		-	a microbrewery-restaurant private club, is amended to read as follows: 18
143		-	(a) A microbrewery-restaurant private club permitted under this 19
144		-	subchapter shall not sell alcoholic beverages either by the package or by the 20
145		-	drink to a guest: 21
146		-	(1) Nonmember for on -premises or off-premises consumption; or 22
147		-	(2) Member for off-premises consumption. 23
148		-	24
149		-	SECTION 9. Arkansas Code § 3 -5-1906(1), concerning the permit fee for 25
150		-	a microbrewery-restaurant private club, is amended to read as follows: 26
151		-	(1) Pay the applicable city or county permit fees and barrelage 27
152		-	or taxes and shall pay a state permitting fee to the Alcoholic Beverage 28
153		-	Control Division of seven hundred fifty dollars ($750) per fiscal year to 29
154		-	manufacture and sell to members guests its beer, malt beverages, and hard 30
155		-	cider for on-premises consumption and to sell to members guests other beer, 31
156		-	malt beverages, hard cider, and spirituous liquor purchased from a permitted 32
157		-	retailer for on-premises consumption; 33
158		-	34
159		-	SECTION 10. Arkansas Code § 3 -5-1907(a)(3), concerning the information 35
160		-	required for an application of an applicant that is reapplying for a 36 As Engrossed: H4/7/25 SB523
161		-
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163		-
164		-
165		-	microbrewery-restaurant private club permit within two (2) years of denial, 1
166		-	is amended to read as follows: 2
167		-	(3) The petition on which the signatures are obtained under this 3
168		-	section shall state clearly that the purpose of the petition is to obtain an 4
169		-	alcoholic beverage permit for a microbrewery -restaurant private club and to 5
170		-	serve alcoholic beverages to members guests. 6
171		-	7
172		-	SECTION 11. Arkansas Code § 3 -9-202(14), as amended by Acts 2025, No. 421, § 8
173		-	3, concerning the definition of a private club, is amended to read as 9
174		-	follows: 10
175		-	(14)(A)(i) “Private club” means , except as provided in 11
176		-	subdivision (14)(D) of this section, a nonprofit corporation , sole-12
177		-	proprietorship, corporation, partnership, or limited liability company 13
178		-	organized and existing or authorized to do business under the laws of this 14
179		-	state, no part of the net revenues of which shall inure directly or 15
180		-	indirectly to the benefit of any of its members or any other individual, 16
181		-	except for the payment of bona fide expenses of the club's operations, and 17
182		-	which is conducted for some common recreational, social, patriotic, 18
183		-	political, national, benevolent, athletic, community hospitality, 19
184		-	professional association, entertainment, or other nonprofit object or purpose 20
185		-	other than the consumption of alcoholic beverages. 21
186		-	(ii) The nonprofit corporation shall have been in 22
187		-	existence for a period of not less than one (1) year before applying for a 23
188		-	permit, as prescribed in this subchapter. 24
189		-	(iii) At the time of application for the permit, the 25
190		-	nonprofit corporation must have not fewer than one hundred (100) members and 26
191		-	at the time of application must own or lease, be the holder of a buy -sell 27
192		-	agreement or offer and acceptance, or have an option to lease a building, 28
193		-	property, or space therein for the reasonable comfort and accommodation of 29
194		-	its members and their families and guests and restrict the use of club 30
195		-	facilities to those persons. 31
196		-	(B) For purposes of this subdivision (14), a person shall 32
197		-	be required to become a member of the private club in any wet area of the 33
198		-	state only upon ordering an alcoholic beverage as defined under subdivision 34
199		-	(1) of this section. 35
200		-	(C) Furthermore, where the business entity that holds a 36 As Engrossed: H4/7/25 SB523
201		-
202		-	6 04-07-2025 10:30:00 CRH277
203		-
204		-
205		-	private club permit additionally holds a retail beer permit, retail wine for 1
206		-	consumption on the premises permit, or cafe or restaurant wine permit, the 2
207		-	hours of operation authorized for the private club shall likewise apply to 3
208		-	all permits of the business entity. 4
209		-	(D) A corporation, partnership, individual, or limited 5
210		-	liability company applying for a hotel, restaurant, or large -event facility 6
211		-	private club permit under § 3 -9-221(a)(3)(B) is not required to form a 7
212		-	nonprofit corporation but shall otherwise comply with all requirements of § 8
213		-	3-9-240; 9
214		-	10
215		-	SECTION 12. Arkansas Code § 3 -9-221, as amended by Acts 2025, No. 421, 11
216		-	§ 3, is amended to read as follows: 12
217		-	3-9-221. Private clubs — Exception from alcoholic beverage laws. 13
218		-	(a) The General Assembly recognizes that: 14
219		-	(1) Many individuals in this state serve mixed drinks containing 15
220		-	alcoholic beverages to their friends and guests in the privacy of their homes 16
221		-	and, in addition, that many individuals associated together in private 17
222		-	nonprofit corporations established for fraternal, patriotic, recreational, 18
223		-	political, social, or other mutual purposes as authorized by law, established 19
224		-	not for pecuniary gain, have provided for their mutual convenience and for 20
225		-	the preparation and serving to themselves and their guests mixed drinks 21
226		-	prepared from alcoholic beverages owned by the members individually or in 22
227		-	common under a so-called “locker”, “pool”, or “revolving fund” system; 23
228		-	(2) Many individuals travel to this state to assemble at 24
229		-	regional meetings and conventions to associate with other individuals who are 25
230		-	members of professional and social organizations and that: 26
231		-	(A) Many of the restaurants and entertainment facilities 27
232		-	used for the meetings and conventions promote the hospitality of the host 28
233		-	communities where the restaurants, convention, and entertainment facilities 29
234		-	are located; 30
235		-	(B) Many of the host organizations plan to serve mixed 31
236		-	drinks containing alcoholic beverages to their friends and guests at these 32
237		-	meetings and while entertaining and dining during these conventions; and 33
238		-	(C) Many of the host communities have individuals who have 34
239		-	associated together in private nonprofit corporations established for 35
240		-	recreational, social, community hospitality, professional association, 36 As Engrossed: H4/7/25 SB523
241		-
242		-	7 04-07-2025 10:30:00 CRH277
243		-
244		-
245		-	entertainment, or other mutual purposes established, not for pecuniary gain, 1
246		-	but for their mutual convenience and to provide for the preparation and 2
247		-	serving to themselves and their guests mixed drinks prepared from alcoholic 3
248		-	beverages owned by the members individually or in common under a so -called 4
249		-	locker, pool, or revolving fund system; and 5
250		-	(3)(A)(i)(1)(A) That there There are a number of counties or 6
251		-	parts of counties where the public retail sale of intoxicating liquors has 7
252		-	not been approved by the voters. 8
253		-	(ii)(B) However, within those counties or parts of 9
254		-	counties there are significant developments of tourism facilities and large -10
255		-	event facilities that promote the economic development of the state .; 11
256		-	(B)(2) To ensure that tourism and large -event facilities 12
257		-	as well as other associated activities are allowed to exist to promote the 13
258		-	economic development in the state, a new hotel , restaurant, or large-event 14
259		-	facility private club permit, for use in those places where the public retail 15
260		-	sale of intoxicating liquors is not authorized, should be created .; 16
261		-	(C)(3) These permits are necessary so that persons 17
262		-	visiting hotels, restaurants, or large-event facilities in these areas will 18
263		-	be able to enjoy the amenities that a person might find in other states .; 19
264		-	(D)(4) This additional permit will enhance the experience 20
265		-	of going to hotels, restaurants, or large-event facilities that may display 21
266		-	items of historic interest, contain extensive art collections, or host 22
267		-	musical or dramatic presentations .; and 23
268		-	(E)(5) Further, since the counties or parts of counties in 24
269		-	which these hotels, restaurants, or large-event facilities will be located do 25
270		-	not allow the open public retail sale of intoxicating liquors, the hotel 26
271		-	facilities, restaurants, or large-event facilities should be allowed to offer 27
272		-	alcoholic beverages to guests. 28
273		-	(b)(1) In order to clarify the alcoholic beverage control laws of this 29
274		-	state and to regulate and prohibit the sale of alcoholic beverages in 30
275		-	violation of the provisions of this subchapter and other applicable alcoholic 31
276		-	beverage control laws of this state, the General Assembly determines that the 32
277		-	preparation, mixing, and serving of mixed drinks, beer, and wine for 33
278		-	consumption only on the premises of a private club as defined in § 3-9-34
279		-	202(14) § 3-9-202 by the members thereof and their guests and the making of a 35
280		-	charge for such services shall not be deemed to be a sale or be in violation 36 As Engrossed: H4/7/25 SB523
281		-
282		-	8 04-07-2025 10:30:00 CRH277
283		-
284		-
285		-	of any law of this state prohibiting the manufacture, sale, barter, loan, or 1
286		-	giving away of intoxicating liquor whenever: 2
287		-	(A) The If the private club permittee is a nonprofit 3
288		-	organization, the alcoholic beverages, beer, and wine so consumed have been 4
289		-	may be furnished or drawn from private stocks thereof belonging to such the 5
290		-	members, individually or in common under a so -called locker, pool, or 6
291		-	revolving fund system and are that is replenished only at the expense of such 7
292		-	the members; and 8
293		-	(B) The private club has acquired a permit from the 9
294		-	Alcoholic Beverage Control Board, in such the form as the board may 10
295		-	appropriately determine. 11
296		-	(2)(A) A private club may serve any alcoholic beverage furnished 12
297		-	or drawn under the provisions of subdivision (b)(1) of this section on the 13
298		-	golf course on which the private club is located when the private club is 14
299		-	hosting a professional golf tournament or other charitable golf tournament 15
300		-	sponsored by a charitable organization described in 26 U.S.C. § 501(c)(3) and 16
301		-	the Director of the Alcoholic Beverage Control Division has been notified by 17
302		-	the private club at least sixty (60) calendar days prior to the beginning of 18
303		-	the event. 19
304		-	(B) Persons attending the event may purchase alcoholic 20
305		-	beverages from the private club shall be deemed guests of the private club, 21
306		-	and the club may serve the alcoholic beverages to the guests for cash . 22
307		-	(C) The director may promulgate rules he or she deems 23
308		-	necessary to implement this subdivision (b)(2). 24
309		-	(c) In order to clarify the alcoholic beverage control laws of this 25
	230	+	7 03/19/2025 3:03:14 PM CRH277
	231	+	as well as other associated activities are allowed to exist to promote the 1
	232	+	economic development in the state, a new hotel , restaurant, or large-event 2
	233	+	facility private club permit, for use in those places where the public retail 3
	234	+	sale of intoxicating liquors is not authorized, should be created .; 4
	235	+	(C)(3) These permits are necessary so that persons 5
	236	+	visiting hotels, restaurants, or large-event facilities in these areas will 6
	237	+	be able to enjoy the amenities that a person might find in other states .; 7
	238	+	(D)(4) This additional permit will enhance the experience 8
	239	+	of going to hotels, restaurants, or large-event facilities that may display 9
	240	+	items of historic interest, contain extensive art collections, or host 10
	241	+	musical or dramatic presentations .; and 11
	242	+	(E)(i)(5) Further, since the counties or parts of counties 12
	243	+	in which these hotels , restaurants, or large-event facilities will be located 13
	244	+	do not allow the open public retail sale of intoxicating liquors, the 14
	245	+	nonprofit corporations that have been established to have the hotel 15
	246	+	facilities, restaurants, or the large-event facilities should be allowed to 16
	247	+	offer alcoholic beverages to members of the nonprofit corporations and their 17
	248	+	guests. 18
	249	+	(ii) These nonprofit corporations have been 19
	250	+	established for the purpose of operating a qualifying hotel or large -event 20
	251	+	facility private club or other mutual purposes, not for pecuniary gain, but 21
	252	+	for their mutual convenience and to provide for the preparation and serving 22
	253	+	to the members and their guests alcoholic beverages owned by the members 23
	254	+	individually or in common under a locker, pool, or revolving fund system. 24
	255	+	(b)(1) In order to clarify the alcoholic beverage control laws of this 25
310	256		state and to regulate and prohibit the sale of alcoholic beverages in 26
311	257		violation of the provisions of this subchapter and other applicable alcoholic 27
312	258		beverage control laws of this state, the General Assembly determines that the 28
313		-	preparation, mixing, and serving of ~~wine~~ and ~~beer~~ for ~~consumption only by the~~ 29
314		-	~~lodging guests~~ on the premises of a ~~bed and breakfast~~ private club as defined 30
315		-	~~in § 3-9-~~202(2)~~§ 3-9-202~~ and the making of a charge ~~for such the services~~ 31
316		-	shall not be deemed to be a sale or to be in violation of any ~~law of this~~ 32
317		-	state prohibiting the manufacture, sale, barter, loan, or giving ~~away of~~ 33
318		-	intoxicating liquor whenever: 34
319		-	(1) The ~~wine and beer so consumed have been furnished or drawn~~ 35
320		-	~~from private stocks belonging to an owner of the bed~~ and ~~breakfast private~~ 36 ~~As Engrossed: H4/7/25~~ SB523
	259	+	preparation, mixing, and serving of mixed drinks, beer, and wine for 29
	260	+	consumption only on the premises of a private club as defined in § 3 -9-30
	261	+	202(14) by the members thereof and their guests and the making of a charge 31
	262	+	for such services shall not be deemed to be a sale or be in violation of any 32
	263	+	law of this state prohibiting the manufacture, sale, barter, loan, or giving 33
	264	+	away of intoxicating liquor whenever: 34
	265	+	(A) The If the private club permittee is a nonprofit, the 35
	266	+	alcoholic beverages, beer, and wine so consumed have been may be furnished or 36 SB523
321	267
322		-	9 04-07-2025 10:30:00 CRH277
	268	+	8 03/19/2025 3:03:14 PM CRH277
	269	+	drawn from private stocks thereof belonging to such members, individually or 1
	270	+	in common under a so -called locker, pool, or revolving fund system and that 2
	271	+	are replenished only at the expense of such members; and 3
	272	+	(B) The private club has acquired a permit from the 4
	273	+	Alcoholic Beverage Control Board, in such form as the board may appropriately 5
	274	+	determine. 6
	275	+	(2)(A) A private club may serve any alcoholic beverage furnished 7
	276	+	or drawn under the provisions of subdivision (b)(1) of this section on the 8
	277	+	golf course on which the private club is located when the private club is 9
	278	+	hosting a professional golf tournament or other charitable golf tournament 10
	279	+	sponsored by a charitable organization described in 26 U.S.C. § 501(c)(3) and 11
	280	+	the Director of the Alcoholic Beverage Control Division has been notified by 12
	281	+	the private club at least sixty (60) calendar days prior to the beginning of 13
	282	+	the event. 14
	283	+	(B) Persons attending the event may purchase alcoholic 15
	284	+	beverages from the private club shall be deemed guests of the private club, 16
	285	+	and the club may serve the alcoholic beverages to the guests for cash . 17
	286	+	(C) The director may promulgate rules he or she deems 18
	287	+	necessary to implement this subdivision (b)(2). 19
	288	+	(c) In order to clarify the alcoholic beverage control laws of this 20
	289	+	state and to regulate and prohibit the sale of alcoholic beverages in 21
	290	+	violation of the provisions of this subchapter and other applicable alcoholic 22
	291	+	beverage control laws of this state, the General Assembly determines that the 23
	292	+	preparation, mixing, and serving of wine and beer for consumption only by the 24
	293	+	lodging guests on the premises of a bed and breakfast private club as defined 25
	294	+	in § 3-9-202(2)§ 3-9-202 and the making of a charge for such services shall 26
	295	+	not be deemed to be a sale or to be in violation of any law of this state 27
	296	+	prohibiting the manufacture, sale, barter, loan, or giving away of 28
	297	+	intoxicating liquor whenever: 29
	298	+	(1) The wine and beer so consumed have been furnished or drawn 30
	299	+	from private stocks belonging to an owner of the bed and breakfast private 31
	300	+	club and are replenished only at the expense of such owner; 32
	301	+	(2) The wine and beer consumed must have been purchased in an 33
	302	+	Arkansas licensed retail alcoholic beverage store, as authorized by the 34
	303	+	director; 35
	304	+	(3)(2) The average annual volume of wine and beer consumed shall 36 SB523
323	305
	306	+	9 03/19/2025 3:03:14 PM CRH277
	307	+	not exceed three gallons (3 gals.) per month per guest room; and 1
	308	+	(4)(3) The bed and breakfast private club has acquired a permit 2
	309	+	from the board in such form as the board may appropriately determine. 3
	310	+	4
	311	+	SECTION 12. Arkansas Code § 3 -9-222(c)(3), concerning the contents of 5
	312	+	the notice required to be published by an applicant for a private club 6
	313	+	permit, is amended to read as follows: 7
	314	+	(3) The notice shall give the names of the managing agent and 8
	315	+	the nonprofit corporation or, in the case of a bed and breakfast private club 9
	316	+	or a hotel, restaurant, or large -event facility private club , the name of the 10
	317	+	business owner, and shall state: 11
	318	+	(A) That the manager , or in the case of a bed and 12
	319	+	breakfast private club , the owner, at least one (1) partner, or the majority 13
	320	+	stockholder is a citizen of Arkansas; 14
	321	+	(B) That he or she is of good moral character; 15
	322	+	(C) That he or she has never been convicted of a felony or 16
	323	+	had a license to sell or dispense alcoholic beverages revoked within the five 17
	324	+	(5) years preceding the date of the notice; and 18
	325	+	(D) That he or she has never been convicted of violating 19
	326	+	the laws of this state or of any other state governing the sale or dispensing 20
	327	+	of alcoholic beverages. 21
	328	+	22
	329	+	SECTION 13. Arkansas Code § 3 -9-223(b), concerning a supplemental tax 23
	330	+	on gross receipts for private clubs, is amended to read as follows: 24
	331	+	(b)(1) In addition, there is levied a supplemental tax of ten percent 25
	332	+	(10%) upon the gross proceeds or gross receipts derived by the private club 26
	333	+	from the charges to members or guests for the preparation and serving of 27
	334	+	mixed drinks or for the cooling and serving of beer and wine , drawn from the 28
	335	+	private stocks of the members as provided in § 3 -9-221, for consumption only 29
	336	+	on the premises where served. 30
	337	+	(2) In addition to the tax levied under subdivision (b)(1) of 31
	338	+	this section, a supplemental tax of four percent (4%) is levied on the gross 32
	339	+	proceeds or gross receipts derived by the private club from the charges to 33
	340	+	members or guests for the preparation and serving of mixed drinks drawn from 34
	341	+	the private stocks of the members as provided in § 3 -9-221 for consumption 35
	342	+	only on the premises where served. 36 SB523
324	343
325		-	club and are replenished only at the expense of such owner; 1
326		-	(2) The wine and beer consumed must have been purchased in an 2
327		-	Arkansas licensed retail alcoholic beverage store, as authorized by the 3
328		-	director; 4
329		-	(3)(2) The average annual volume of wine and beer consumed shall 5
330		-	not exceed three gallons (3 gals.) per month per guest room; and 6
331		-	(4)(3) The bed and breakfast private club has acquired a permit 7
332		-	from the board in such form as the board may appropriately determine. 8
333		-	9
334		-	SECTION 13. Arkansas Code § 3 -9-222(c)(3), as amended by Acts 2025, 10
335		-	No. 421, § 4, concerning the contents of the notice required to be published 11
336		-	by an applicant for a private club permit, is amended to read as follows: 12
337		-	(3) The notice shall give the names of the managing agent and 13
338		-	the nonprofit corporation or, in the case of a bed and breakfast private 14
339		-	club, the name of the business owner , and shall state: 15
340		-	(A) That the manager, or in the case of a bed and 16
341		-	breakfast private club or a hotel, restaurant, or large -event facility 17
342		-	private club, the owner, at least one (1) partner, or the majority 18
343		-	stockholder is a citizen of Arkansas; 19
344		-	(B) That he or she is of good moral character; 20
345		-	(C) That he or she has never been convicted of a felony or 21
346		-	had a license to sell or dispense alcoholic beverages revoked within the five 22
347		-	(5) years preceding the date of the notice; and 23
348		-	(D) That he or she has never been convicted of violating 24
349		-	the laws of this state or of any other state governing the sale or dispensing 25
350		-	of alcoholic beverages. 26
351		-	27
352		-	SECTION 14. Arkansas Code § 3 -9-223(b), concerning a supplemental tax 28
353		-	on gross receipts for private clubs, is amended to read as follows: 29
354		-	(b)(1) In addition, there is levied a supplemental tax of ten percent 30
355		-	(10%) upon the gross proceeds or gross receipts derived by the private club 31
356		-	from the charges to members or guests for the preparation and serving of 32
357		-	mixed drinks or for the cooling and serving of beer and wine , drawn from the 33
358		-	private stocks of the members as provided in § 3 -9-221, for consumption only 34
359		-	on the premises where served. 35
360		-	(2) In addition to the tax levied under subdivision (b)(1) of 36 As Engrossed: H4/7/25 SB523
	344	+	10 03/19/2025 3:03:14 PM CRH277
	345	+	1
	346	+	SECTION 14. Arkansas Code § 3 -9-223(e), concerning the passing on of 2
	347	+	taxes prescribed on a private club, is amended to read as follows: 3
	348	+	(e) The taxes herein prescribed may be passed on to the members or 4
	349	+	guests. 5
	350	+	6
	351	+	SECTION 15. Arkansas Code § 3 -9-224 is repealed. 7
	352	+	3-9-224. Private clubs — Sales prohibited. 8
	353	+	(a) No private club permitted hereunder shall sell alcoholic beverages 9
	354	+	either by the package or drink. 10
	355	+	(b) Alcoholic beverages, beer, and wine owned by members may be stored 11
	356	+	on the premises of the club. 12
	357	+	(c) If any permittee shall sell, barter, loan, or give away any 13
	358	+	intoxicating liquor in violation of this subchapter or other alcoholic 14
	359	+	beverage control laws of this state, the permit of the club shall be revoked. 15
	360	+	16
	361	+	SECTION 16. Arkansas Code § 3 -9-226(c)(3), concerning the requirement 17
	362	+	that advertising by a private club for a social function contain a "notice to 18
	363	+	members", is repealed. 19
	364	+	(3) The advertising for the social function shall be preceded by 20
	365	+	the words “Notice to Members” and the name of the club or organization 21
	366	+	sponsoring such social activity. 22
	367	+	23
	368	+	SECTION 17. Arkansas Code § 3 -9-226, concerning advertising by a 24
	369	+	private club, is amended to add an additional subdivision to read as follows: 25
	370	+	(d) This section shall not apply to a private club permit holder 26
	371	+	operating under substantially the same trade name in both wet and dry 27
	372	+	territories provided that the advertising is: 28
	373	+	(1) Not directed exclusively toward a dry territory; and 29
	374	+	(2) Otherwise compliant with applicable law. 30
	375	+	31
	376	+	SECTION 18. Arkansas Code § 3 -9-240 is amended to read as follows: 32
	377	+	3-9-240. Hotel, restaurant, or large-event facility private club 33
	378	+	permit. 34
	379	+	(a)(1) An application for a hotel , restaurant, or large-event facility 35
	380	+	private club permit shall be in writing and shall provide information 36 SB523
361	381
362		-	10 04-07-2025 10:30:00 CRH277
	382	+	11 03/19/2025 3:03:14 PM CRH277
	383	+	concerning the applicant for the hotel , restaurant, or large-event facility 1
	384	+	private club permit and the premises to be used by the applicant as the 2
	385	+	Director of the Alcoholic Beverage Control Division requires. 3
	386	+	(2) A hotel, restaurant, or large-event facility private club 4
	387	+	permit may be issued only in a county or a territory of a county that does 5
	388	+	not allow the public retail sale of intoxicating liquors as provided under § 6
	389	+	3-8-201. 7
	390	+	(3) A hotel, restaurant, or large -event facility private club 8
	391	+	permit may be issued to a nonprofit corporation, corporation, partnership, 9
	392	+	individual, or limited liability company. 10
	393	+	(b) The application for a hotel , restaurant, or large-event facility 11
	394	+	private club permit shall be accompanied by a check or money order for the 12
	395	+	amount required by this section for the hotel , restaurant, or large-event 13
	396	+	facility private club permit. 14
	397	+	(c) A hotel, restaurant, or large-event facility private club permit 15
	398	+	application shall contain a description of the premises permitted and provide 16
	399	+	proof that the space leased has at least: 17
	400	+	(1) Eighty (80) lodging rooms and five thousand square feet 18
	401	+	(5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; 19
	402	+	or 20
	403	+	(2) Ten thousand square feet (10,000 sq. ft.) of interior or 21
	404	+	exterior public meeting, banquet, exhibit hall, or restaurant space from a 22
	405	+	large-event facility; or 23
	406	+	(3) Seating capacity for not fewer than one hundred (100) people 24
	407	+	in a restaurant as defined in § 3 -9-202. 25
	408	+	(d) If the director grants an application for a hotel , restaurant, or 26
	409	+	large-event facility private club permit, he or she shall issue a hotel , 27
	410	+	restaurant, or large-event facility private club permit in a form as 28
	411	+	determined by the rules of the Alcoholic Beverage Control Division. 29
	412	+	(e)(1) A hotel, restaurant, or large-event facility private club 30
	413	+	permit authorizes the dispensing, service, and consumption of alcoholic 31
	414	+	beverages by and to members and their guests on the premises of a hotel , 32
	415	+	restaurant, or large-event facility private club permittee for on-premises 33
	416	+	consumption at a hotel or large-event facility leased to a hotel or large -34
	417	+	event facility private club permittee . 35
	418	+	(2) The areas of a hotel , restaurant, or large-event facility 36 SB523
363	419
	420	+	12 03/19/2025 3:03:14 PM CRH277
	421	+	that may be leased to utilized by a hotel, restaurant, or large-event 1
	422	+	facility private club permittee for purposes of a hotel , restaurant, or 2
	423	+	large-event facility private club permit include without limitation: 3
	424	+	(A) Sleeping rooms; 4
	425	+	(B) Pool-side bars; 5
	426	+	(C) Banquet facilities; 6
	427	+	(D) Restaurants; 7
	428	+	(E) Lobbies; 8
	429	+	(F) Exhibit halls; 9
	430	+	(G) Patios; and 10
	431	+	(H) Outdoor gardens. 11
	432	+	(3) Members Guests of the hotel or large -event facility private 12
	433	+	club permittee that holds a hotel , restaurant, or large-event facility 13
	434	+	private club permit may move from one area to another area designated under 14
	435	+	subdivision (e)(2) of this section while consuming alcoholic beverages. 15
	436	+	(f)(1) A hotel or large-event facility that leases all or a portion of 16
	437	+	its premises to a hotel or large -event facility private club permittee shall 17
	438	+	clearly identify the areas of the hotel or large -event facility that are 18
	439	+	leased to the hotel or large -event facility private club permittee. 19
	440	+	(2)(A) Areas leased by a hotel or large -event facility private 20
	441	+	club permittee that contain articles of historic interest or art or dramatic 21
	442	+	or musical presentations shall be open to members of the hotel or large -event 22
	443	+	facility private club permittee and to nonmembers of the hotel or large -event 23
	444	+	facility private club permittee. 24
	445	+	(B) However, a A person must be a member or the guest of a 25
	446	+	member of the hotel, restaurant, or large-event facility private club 26
	447	+	permittee to consume or possess alcoholic beverages dispensed by the hotel , 27
	448	+	restaurant, or large-event facility private club permittee. 28
	449	+	(3)(2) Persons under twenty -one (21) years of age may be allowed 29
	450	+	on the premises of the hotel , restaurant, or large-event facility private 30
	451	+	club permittee. 31
	452	+	(4)(A)(3)(A) A hotel holding a hotel , restaurant, or large-event 32
	453	+	facility private club permit under this section may lease a sleeping room to 33
	454	+	a hotel or large-event facility private club permittee for the service of 34
	455	+	alcoholic beverages. 35
	456	+	(B) The hotel holding a hotel or large -event facility 36 SB523
364	457
365		-	this section, a supplemental tax of four percent (4%) is levied on the gross 1
366		-	proceeds or gross receipts derived by the private club from the charges to 2
367		-	members or guests for the preparation and serving of mixed drinks drawn from 3
368		-	the private stocks of the members as provided in § 3 -9-221 for consumption 4
369		-	only on the premises where served. 5
	458	+	13 03/19/2025 3:03:14 PM CRH277
	459	+	private club permit may use room service to serve the alcoholic beverage. 1
	460	+	(C)(B) The hotel holding a hotel , restaurant, or large-2
	461	+	event facility private club permit may stock the leased a sleeping room with 3
	462	+	alcoholic beverages, and the hotel or large -event facility private club 4
	463	+	permittee through the hotel's employees shall inventory the alcoholic 5
	464	+	beverages in the leased a sleeping room. 6
	465	+	(D)(C) Sleeping rooms that are solely occupied by persons 7
	466	+	twenty (20) years of age and under shall not receive alcoholic beverages 8
	467	+	through room service or be stocked with alcoholic beverages. 9
	468	+	(5) A hotel or large -event facility that leases space to a hotel 10
	469	+	or large-event facility private club permittee shall provide a means of 11
	470	+	entering the hotel or large -event facility to allow a person to knowingly 12
	471	+	decide if he or she would like to become a member of the hotel or large -event 13
	472	+	facility private club permittee. 14
	473	+	(g)(1) A hotel leasing its premises to a hotel or large -event facility 15
	474	+	private club permittee may include a membership application to the hotel or 16
	475	+	large-event facility private club permittee as part of its registration 17
	476	+	materials. 18
	477	+	(2) A guest of a hotel becoming a member of the hotel or large -19
	478	+	event facility private club permittee shall receive a membership card. 20
	479	+	(3) A hotel that includes a membership application to the hotel 21
	480	+	or large-event facility private club permittee as part of its registration 22
	481	+	materials shall retain the registration materials as required by the 23
	482	+	division. 24
	483	+	(4) A hotel or large -event facility private club permittee may 25
	484	+	refuse a membership or revoke a membership of a person that does not abide by 26
	485	+	the hotel or large-event facility private club permittee rules. 27
	486	+	(h)(1)(A)(g)(1)(A) For a hotel and a restaurant, the application and 28
	487	+	renewal fee for a hotel , restaurant, or large-event facility private club 29
	488	+	permit is one thousand five hundred dollars ($1,500) per year payable on or 30
	489	+	before June 30 of each calendar year for the fiscal year beginning July 1. 31
	490	+	(B) In an area in which the sale of intoxicating liquor 32
	491	+	has not been authorized by local option as provided under § 3 -8-201 et seq., 33
	492	+	the application for a hotel , restaurant, or large-event facility private club 34
	493	+	permit shall be accompanied by an additional application fee of one thousand 35
	494	+	five hundred dollars ($1,500). 36 SB523
	495	+
	496	+	14 03/19/2025 3:03:14 PM CRH277
	497	+	(2) The application and renewal fee for a large -event facility 1
	498	+	for a hotel, restaurant, or large-event facility private club permit is two 2
	499	+	thousand five hundred dollars ($2,500) per year payable on or before June 30 3
	500	+	of each calendar year for the fiscal year beginning July 1. 4
	501	+	(i) The director shall promulgate rules to enforce this section. 5
370	502		6
371		-	SECTION 15. Arkansas Code § 3 -9-223(e), concerning the passing on of 7
372		-	taxes prescribed on a private club, is amended to read as follows: 8
373		-	(e) The taxes herein prescribed may be passed on to the members or 9
374		-	guests. 10
375		-	11
376		-	SECTION 16. Arkansas Code § 3 -9-224 is repealed. 12
377		-	3-9-224. Private clubs — Sales prohibited. 13
378		-	(a) No private club permitted hereunder shall sell alcoholic beverages 14
379		-	either by the package or drink. 15
380		-	(b) Alcoholic beverages, beer, and wine owned by members may be stored 16
381		-	on the premises of the club. 17
382		-	(c) If any permittee shall sell, barter, loan, or give away any 18
383		-	intoxicating liquor in violation of this subchapter or other alcoholic 19
384		-	beverage control laws of this state, the permit of the club shall be revoked. 20
385		-	21
386		-	SECTION 17. Arkansas Code § 3 -9-226(b)(2), concerning the prohibition 22
387		-	on advertising or promoting the consumption of alcoholic beverages by private 23
388		-	clubs, is amended to read as follows: 24
389		-	(2) The prohibition on advertising or promoting the consumption 25
390		-	of alcoholic beverages under subdivision (b)(1) of this section does not 26
391		-	require a private club to block visibility through the private club's 27
392		-	windows, or doors, or barriers to prevent the general public from viewing 28
393		-	patrons consuming alcoholic beverages, including without limitation through 29
394		-	the use of window tinting. 30
395		-	31
396		-	SECTION 18. Arkansas Code § 3 -9-226(c)(3), concerning the requirement 32
397		-	that advertising by a private club for a social function contain a "notice to 33
398		-	members", is repealed. 34
399		-	(3) The advertising for the social function shall be preceded by 35
400		-	the words “Notice to Members” and the name of the club or organization 36 As Engrossed: H4/7/25 SB523
401		-
402		-	11 04-07-2025 10:30:00 CRH277
403		-
404		-
405		-	sponsoring such social activity. 1
406		-	2
407		-	SECTION 19. Arkansas Code § 3 -9-226, concerning advertising by a 3
408		-	private club, is amended to add an additional subdivision to read as follows: 4
409		-	(d) This section shall not apply to a private club permit holder 5
410		-	operating under substantially the same trade name in both wet and dry 6
411		-	territories provided that the advertising is: 7
412		-	(1) Not directed exclusively toward a dry territory; and 8
413		-	(2) Otherwise compliant with applicable law. 9
414		-	10
415		-	SECTION 20. Arkansas Code § 3 -9-240, as amended by Acts 2025, No. 421, 11
416		-	§ 5, is amended to read as follows: 12
417		-	3-9-240. Hotel, restaurant, or large-event facility private club 13
418		-	permit. 14
419		-	(a)(1) An application for a hotel , restaurant, or large-event facility 15
420		-	private club permit shall be in writing and shall provide information 16
421		-	concerning the applicant for the hotel , restaurant, or large-event facility 17
422		-	private club permit and the premises to be used by the applicant as the 18
423		-	Director of the Alcoholic Beverage Control Division requires. 19
424		-	(2) A hotel, restaurant, or large-event facility private club 20
425		-	permit may be issued only in a county or a territory of a county that does 21
426		-	not allow the public retail sale of intoxicating liquors as provided under § 22
427		-	3-8-201. 23
428		-	(3) A hotel, restaurant, or large-event facility private club 24
429		-	permit may be issued to a corporation, partnership, individual, or limited 25
430		-	liability company. 26
431		-	(b) The application for a hotel , restaurant, or large-event facility 27
432		-	private club permit shall be accompanied by a check or money order for the 28
433		-	amount required by this section for the hotel , restaurant, or large-event 29
434		-	facility private club permit. 30
435		-	(c) A hotel, restaurant, or large-event facility private club permit 31
436		-	application shall contain a description of the premises permitted and provide 32
437		-	proof that the space has at least: 33
438		-	(1) Eighty (80) lodging rooms and five thousand square feet 34
439		-	(5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel; 35
440		-	or 36 As Engrossed: H4/7/25 SB523
441		-
442		-	12 04-07-2025 10:30:00 CRH277
443		-
444		-
445		-	(2) Ten thousand square feet (10,000 sq. ft.) of interior or 1
446		-	exterior public meeting, banquet, exhibit hall, or restaurant space from a 2
447		-	large-event facility; or 3
448		-	(3) Seating capacity for not fewer than one hundred (100) people 4
449		-	in the restaurant that otherwise complies with the requirements of § 3 -9-5
450		-	202(16). 6
451		-	(d) If the director grants an application for a hotel , restaurant, or 7
452		-	large-event facility private club permit, he or she shall issue a hotel , 8
453		-	restaurant, or large-event facility private club permit in a form as 9
454		-	determined by the rules of the Alcoholic Beverage Control Division. 10
455		-	(e)(1) A hotel, restaurant, or large-event facility private club 11
456		-	permit authorizes the dispensing, service, and consumption of alcoholic 12
457		-	beverages by and to guests on the premises of a hotel , restaurant, or large-13
458		-	event facility for on -premises consumption. 14
459		-	(2) The areas of a hotel , restaurant, or large-event facility 15
460		-	that may be utilized by a hotel , restaurant, or large-event facility private 16
461		-	club permittee for purposes of a hotel , restaurant, or large-event facility 17
462		-	private club permit include without limitation: 18
463		-	(A) Sleeping rooms; 19
464		-	(B) Pool-side bars; 20
465		-	(C) Banquet facilities; 21
466		-	(D) Restaurants; 22
467		-	(E) Lobbies; 23
468		-	(F) Exhibit halls; 24
469		-	(G) Patios; and 25
470		-	(H) Outdoor gardens. 26
471		-	(3) Guests of the hotel or large -event facility private club 27
472		-	permittee that holds a hotel , restaurant, or large-event facility private 28
473		-	club permit may move from one area to another area designated under 29
474		-	subdivision (e)(2) of this section while consuming alcoholic beverages. 30
475		-	(f)(1) A person must be a guest of the hotel , restaurant, or large-31
476		-	event facility private club permittee to consume or possess alcoholic 32
477		-	beverages dispensed by the hotel , restaurant, or large-event facility private 33
478		-	club permittee. 34
479		-	(2) Persons under twenty -one (21) years of age may be allowed on 35
480		-	the premises of the hotel , restaurant, or large-event facility private club 36 As Engrossed: H4/7/25 SB523
481		-
482		-	13 04-07-2025 10:30:00 CRH277
483		-
484		-
485		-	permittee. 1
486		-	(3)(A) A hotel holding a hotel , restaurant, or large-event 2
487		-	facility private club permit under this section may use room service to serve 3
488		-	the alcoholic beverage. 4
489		-	(B) The hotel holding a hotel , restaurant, or large-event 5
490		-	facility private club permit may stock a sleeping room with alcoholic 6
491		-	beverages, and the hotel or large -event facility private club permittee 7
492		-	through the hotel's employees shall inventory the alcoholic beverages in the 8
493		-	sleeping room. 9
494		-	(C) Sleeping rooms that are solely occupied by persons 10
495		-	twenty (20) years of age and under shall not receive alcoholic beverages 11
496		-	through room service or be stocked with alcoholic beverages. 12
497		-	(g)(1)(A) For a hotel and a restaurant, the application and renewal 13
498		-	fee for a hotel, restaurant, or large-event facility private club permit is 14
499		-	one thousand five hundred dollars ($1,500) per year payable on or before June 15
500		-	30 of each calendar year for the fiscal year beginning July 1. 16
501		-	(B) In an area in which the sale of intoxicating liquor 17
502		-	has not been authorized by local option as provided under § 3 -8-201 et seq., 18
503		-	the application for a hotel , restaurant, or large-event facility private club 19
504		-	permit shall be accompanied by an additional application fee of one thousand 20
505		-	five hundred dollars ($1,500). 21
506		-	(2) The application and renewal fee for a large -event facility 22
507		-	for a hotel, restaurant, or large-event facility private club permit is two 23
508		-	thousand five hundred dollars ($2,500) per year payable on or before June 30 24
509		-	of each calendar year for the fiscal year beginning July 1. 25
510		-	(h) The director shall promulgate rules to enforce this section. 26
511		-	27
512		-	SECTION 21. DO NOT CODIFY. Transitional language. 28
513		-	(a) Upon the effective date of this act, a private club permit 29
514		-	currently held by a nonprofit corporation shall, upon written request by the 30
515		-	board of directors of the nonprofit corporation to the Alcoholic Beverage 31
516		-	Control Division and the Alcoholic Beverage Control Enforcement Division, be 32
517		-	transferred to a corporation, partnership, individual, or limited liability 33
518		-	company organized and existing under or authorized to do business under the 34
519		-	laws of this state operating at the same location. 35
520		-	(b) The successor entity and the entity's owners under a transfer 36 As Engrossed: H4/7/25 SB523
521		-
522		-	14 04-07-2025 10:30:00 CRH277
523		-
524		-
525		-	under subsection (a) of this section shall comply with all applicable private 1
526		-	club permit application procedures under existing law, except that a new 2
527		-	private club permit fee or application fee shall not be required. 3
528		-	(c) Upon approval of a transfer to the new entity, the board of 4
529		-	directors of a nonprofit corporation holding a private club permit may 5
530		-	transfer all assets of the nonprofit corporation, including without 6
531		-	limitation all alcoholic beverage inventories, equipment, and property, to 7
532		-	the successor business entity identified under subsection (a) of this 8
533		-	section. 9
534		-	(d) For a period of five (5) years from the effective date of this 10
535		-	act, the Secretary of State shall waive all fees associated with the 11
536		-	dissolution of nonprofit corporations currently holding private club permits 12
537		-	that become unnecessary due to the transfer authorized by this act. 13
538		-	14
539		-	/s/Irvin 15
540		-	16
541		-	17
542		-	APPROVED: 4/17/25 18
543		-	19
544		-	20
545		-	21
546		-	22
547		-	23
548		-	24
549		-	25
550		-	26
551		-	27
552		-	28
	503	+	SECTION 19. DO NOT CODIFY. Transitional language. 7
	504	+	(a) Upon the effective date of this act, a private club permit 8
	505	+	currently held by a nonprofit corporation shall, upon written request by the 9
	506	+	board of directors of the nonprofit corporation to the Alcoholic Beverage 10
	507	+	Control Division and the Alcoholic Beverage Control Enforcement Division, be 11
	508	+	transferred to a corporation, partnership, individual, or limited liability 12
	509	+	company organized and existing under or authorized to do business under the 13
	510	+	laws of this state operating at the same location. 14
	511	+	(b) The successor entity and the entity's owners under a transfer 15
	512	+	under subsection (a) of this section shall comply with all applicable private 16
	513	+	club permit application procedures under existing law, except that a new 17
	514	+	private club permit fee or application fee shall not be required. 18
	515	+	(c) Upon approval of a transfer to the new entity, the board of 19
	516	+	directors of a nonprofit corporation holding a private club permit may 20
	517	+	transfer all assets of the nonprofit corporation, including without 21
	518	+	limitation all alcoholic beverage inventories, equipment, and property, to 22
	519	+	the successor business entity identified under subsection (a) of this 23
	520	+	section. 24
	521	+	(d) For a period of five (5) years from the effective date of this 25
	522	+	act, the Secretary of State shall waive all fees associated with the 26
	523	+	dissolution of nonprofit corporations currently holding private club permits 27
	524	+	that become unnecessary due to the transfer authorized by this act. 28
553	525		29
554	526		30
555	527		31
556	528		32
557	529		33
558	530		34
559	531		35
560	532		36