This bill amends existing laws in Arkansas concerning the operation of private clubs, particularly in relation to the sale and service of alcoholic beverages. A key change is the elimination of the requirement for private clubs to be nonprofit organizations, allowing them to operate as various business entities such as corporations, partnerships, and limited liability companies. The bill aims to modernize the regulatory framework to enhance economic viability and attract investment in private clubs, especially in dry counties. It also introduces legislative findings that underscore the benefits of increased operational flexibility and competitive fairness.

In addition to the structural changes, the bill modifies several provisions regarding the sale of alcoholic beverages. It permits private clubs to serve alcoholic drinks to guests without the previous restrictions that mandated guests to be members or guests of members. The bill also allows private clubs to serve alcoholic beverages on golf courses during professional or charitable tournaments, and it clarifies that serving wine and beer at bed and breakfast private clubs will not violate state laws against the sale of intoxicating liquor. Furthermore, 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, promoting greater flexibility in marketing for private clubs. Overall, the bill seeks to create a more adaptable and economically viable environment for private clubs in Arkansas.

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