The proposed bill seeks to amend existing laws governing private clubs in Arkansas by eliminating the requirement that these clubs must be nonprofit organizations. This change is intended to modernize the regulatory framework and enhance operational flexibility, allowing private clubs in dry counties to operate as various business entities, such as corporations, partnerships, and limited liability companies. Key amendments include a revised definition of "microbrewery-restaurant private club," which will now include different business structures, and modifications to the sale of alcoholic beverages, permitting private clubs to serve guests and sell alcoholic beverages for on-premises consumption.

Additionally, the bill introduces a new permit for hotels and large-event facilities in dry counties to offer alcoholic beverages to guests, thereby improving the visitor experience. It also updates the application process for private club permits, requiring detailed information about business ownership and facility capacity, and allows for the transfer of existing permits from nonprofit corporations to other business entities without incurring new application fees. The legislation further imposes a supplemental tax on gross receipts from alcoholic beverage sales to both members and guests, which can be passed on to guests, while repealing outdated restrictions on private club operations. Overall, the bill aims to create a more flexible and accommodating regulatory environment for 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