The bill seeks to modernize the regulatory framework governing private clubs in Arkansas by removing the requirement that these clubs must be nonprofit organizations. It allows private clubs to operate as various business entities, such as corporations, partnerships, limited liability companies, or sole proprietorships. The legislation aims to enhance economic viability and encourage investment, particularly in dry counties, by providing flexibility in business structures. Additionally, the bill permits private clubs to serve alcoholic beverages to guests, not just members, and updates the definition of a microbrewery-restaurant private club to reflect these changes.

Moreover, the bill introduces amendments to the tax structure for private clubs, allowing them to pass on taxes to members or guests and establishing a supplemental tax on gross receipts from alcoholic beverage sales. It repeals previous prohibitions on the sale of alcoholic beverages by private clubs and modifies advertising regulations to increase visibility for patrons consuming alcohol. The application process for permits is streamlined, and transitional provisions are included for transferring existing permits from nonprofit corporations to other business entities without incurring new application fees. Overall, the bill aims to align Arkansas's alcoholic beverage laws with contemporary business practices while promoting local economic growth.

Statutes affected:
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
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
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