The proposed bill seeks to amend existing laws governing alcoholic beverages by eliminating the requirement that private clubs must be nonprofit organizations. It introduces new legal language that allows private clubs to operate as various business entities, such as corporations, partnerships, and limited liability companies. This change aims to enhance economic viability and promote competitive fairness, particularly in dry counties, where private clubs can now function under diverse business structures. Additionally, the bill allows private clubs to serve alcoholic beverages to guests without the previous membership restrictions and repeals certain Class C permit violations related to membership and guest policies.

Further amendments include provisions for private clubs to serve alcoholic beverages on golf courses during professional or charitable tournaments, with prior notification to the Alcoholic Beverage Control Division. The bill also clarifies that bed and breakfast private clubs can prepare and serve wine and beer for guests without violating state laws. It introduces a supplemental tax on gross receipts from mixed drinks, which can be passed on to members or guests, and repeals certain advertising prohibitions to promote flexibility for private clubs in both wet and dry areas. Transitional provisions are included for the transfer of private club permits from nonprofit corporations to other business entities, ensuring compliance with existing application procedures without incurring new fees. Overall, the bill aims to modernize and clarify the regulations surrounding private clubs in Arkansas.

Statutes affected:
Old version SB523 Original - 3-19-2025 03:24 PM: 3-4-108(b), 3-5-1901(7), 3-5-1902, 3-5-1901, 3-5-1904(a), 3-5-1904(e), 3-5-1905(a), 3-5-1906(1), 3-5-1907(a), 3-9-202(14), 3-9-221, 3-9-202(2), 3-9-202, 3-9-222(c), 3-9-223(b), 3-9-223(e), 3-9-224, 3-9-226(c), 3-9-226
Old version SB523 V2 - 4-7-2025 10:30 AM: 3-4-108(b), 3-4-405(a), 3-5-1901(7), 3-5-1902, 3-5-1901, 3-5-1904(a), 04-07-2025, 3-5-1904(e), 3-5-1905(a), 3-5-1906(1), 3-5-1907(a), 3-9-202(14), 3-9-221, 3-9-222(c), 3-9-223(b), 3-9-223(e), 3-9-224, 3-9-226(b), 3-9-226(c), 3-9-226, 3-9-240
SB 523: 3-4-108(b), 3-5-1901(7), 3-5-1902, 3-5-1901, 3-5-1904(a), 3-5-1904(e), 3-5-1905(a), 3-5-1906(1), 3-5-1907(a), 3-9-202(14), 3-9-221, 3-9-202(2), 3-9-202, 3-9-222(c), 3-9-223(b), 3-9-223(e), 3-9-224, 3-9-226(c), 3-9-226
Act 762: 3-4-108(b), 3-4-405(a), 3-5-1901(7), 3-5-1902, 3-5-1901, 3-5-1904(a), 04-07-2025, 3-5-1904(e), 3-5-1905(a), 3-5-1906(1), 3-5-1907(a), 3-9-202(14), 3-9-221, 3-9-222(c), 3-9-223(b), 3-9-223(e), 3-9-224, 3-9-226(b), 3-9-226(c), 3-9-226, 3-9-240