Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 HOUSE BILL 1163
4
5 By: Representative Maddox
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE LAW REGARDING PRIVATE CLUBS; TO
9 ALLOW PRIVATE CLUBS TO PURCHASE ALCOHOLIC BEVERAGES
10 FROM WHOLESALERS; AND FOR OTHER PURPOSES.
11
12
13 Subtitle
14 TO AMEND THE LAW REGARDING PRIVATE CLUBS;
15 AND TO ALLOW PRIVATE CLUBS TO PURCHASE
16 ALCOHOLIC BEVERAGES FROM WHOLESALERS.
17
18
19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
20
21 SECTION 1. Arkansas Code 3-4-405(a)(21), concerning Class C permit
22 violations, is amended to read as follows:
23 (21) Unauthorized purchasing by a private club from other than a
24 retailer or wholesaler;
25
26 SECTION 2. Arkansas Code 3-5-1904(a)(1)-(3), concerning the
27 microbrewery-restaurant private club permit, are amended to read as follows:
28 (1) Operate a microbrewery-restaurant private club and
29 manufacture one (1) or more varieties of beer, malt beverage, or hard cider
30 in an aggregate quantity not to exceed forty-five thousand (45,000) barrels
31 per year from all facilities under common ownership with the microbrewery;
32 (2)(A) Store beer, malt beverage, and hard cider manufactured by
33 the microbrewery-restaurant private club and any other beer, malt beverage,
34 and hard cider that the microbrewery-restaurant private club permittee may
35 purchase from retailers, wholesalers, and small brewers permitted by this
36 state on the microbrewery-restaurant private club permitted premises and on
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1 the premises of the one (1) separate brewing facility of a microbrewery-
2 restaurant private club authorized under subdivision (a)(8) of this section.
3 (B) Two (2) or more microbrewery-restaurant private clubs
4 sharing common ownership or a brewery of any size sharing common ownership
5 with a microbrewery-restaurant private club shall be considered one (1)
6 entity for purposes of:
7 (i) Calculating barrel production; and
8 (ii) The transportation of beer, malt beverage, or
9 hard cider produced by one (1) entity among no more than three (3)
10 microbrewery-restaurant private clubs of the one (1) entity;
11 (3) Operate a restaurant that is the sales outlet for beer, malt
12 beverage, or hard cider manufactured by the microbrewery-restaurant private
13 club and that sells the beer, malt beverage, or hard cider and any other
14 beer, malt beverage, hard cider, or wine that the microbrewery-restaurant
15 private club permittee may purchase from retailers or wholesalers permitted
16 by this state for consumption on the permitted premises or purchased directly
17 from permitted small brewers allowed to distribute directly to the
18 microbrewery-restaurant private club;
19
20 SECTION 3. Arkansas Code 3-9-221 is amended to read as follows:
21 3-9-221. Private clubs Exception from alcoholic beverage laws.
22 (a) The General Assembly recognizes that:
23 (1) Many individuals in this state serve mixed drinks containing
24 alcoholic beverages to their friends and guests in the privacy of their homes
25 and, in addition, that many individuals associated together in private
26 nonprofit corporations established for fraternal, patriotic, recreational,
27 political, social, or other mutual purposes as authorized by law, established
28 not for pecuniary gain, have provided for their mutual convenience and for
29 the preparation and serving to themselves and their guests mixed drinks
30 prepared from alcoholic beverages owned by the members individually or in
31 common under a so-called locker, pool, or revolving fund system;
32 (2) Many individuals travel to this state to assemble at
33 regional meetings and conventions to associate with other individuals who are
34 members of professional and social organizations and that:
35 (A) Many of the restaurants and entertainment facilities
36 used for the meetings and conventions promote the hospitality of the host
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1 communities where the restaurants, convention conventions, and entertainment
2 facilities are located;
3 (B) Many of the host organizations plan to serve mixed
4 drinks containing alcoholic beverages to their friends and guests at these
5 meetings and while entertaining and dining during these conventions; and
6 (C) Many of the host communities have individuals who have
7 associated together in private nonprofit corporations established for
8 recreational, social, community hospitality, professional association,
9 entertainment, or other mutual purposes established, not for pecuniary gain,
10 but for their mutual convenience and to provide for the preparation and
11 serving to themselves and their guests mixed drinks prepared from alcoholic
12 beverages owned by the members individually or in common under a so-called
13 locker, pool, or revolving fund system; and
14 (3)(A)(i) That there There are a number of counties or parts of
15 counties where the public retail sale of intoxicating liquors has not been
16 approved by the voters.
17 (ii) However, within those counties or parts of
18 counties there are significant developments of tourism facilities and large-
19 event facilities that promote the economic development of the this state.
20 (B) To ensure that tourism and large-event facilities as
21 well as other associated activities are allowed to exist to promote the
22 economic development in the this state, a new hotel or large-event facility
23 private club permit, for use in those places where the public retail sale of
24 intoxicating liquors is not authorized, should be created.
25 (C) These permits are necessary so that persons visiting
26 hotels or large-event facilities in these areas will be able to enjoy the
27 amenities that a person might find in other states.
28 (D) This additional permit will enhance the experience of
29 going to hotels or large-event facilities that may display items of historic
30 interest, contain extensive art collections, or host musical or dramatic
31 presentations.
32 (E)(i) Further, since the counties or parts of counties in
33 which these hotels or large-event facilities will be located do not allow the
34 open public retail sale of intoxicating liquors, the nonprofit corporations
35 that have been established to have the hotel facilities hotels or the large-
36 event facilities should be allowed to offer alcoholic beverages to members of
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1 the nonprofit corporations and their guests.
2 (ii) These nonprofit corporations have been
3 established for the purpose of operating a qualifying hotel or large-event
4 facility private club or other mutual purposes, not for pecuniary gain, but
5 for their mutual convenience and to provide for the preparation and serving
6 to the members and their guests alcoholic beverages owned by the members
7 individually or in common under a locker, pool, or revolving fund system.
8 (b)(1) In order to clarify the alcoholic beverage control laws of this
9 state and to regulate and prohibit the sale of alcoholic beverages in
10 violation of the provisions of this subchapter and other applicable alcoholic
11 beverage control laws of this state, the General Assembly determines that the
12 preparation, mixing, and serving of mixed drinks, beer, and wine for
13 consumption only on the premises of a private club as defined in 3-9-
14 202(14) by the members thereof and their guests and the making of a charge
15 for such services shall not be deemed to be a sale or be in violation of any
16 law of this state prohibiting the manufacture, sale, barter, loan, or giving
17 away of intoxicating liquor whenever:
18 (A) The alcoholic beverages, beer, and wine so consumed
19 have been furnished or drawn from private stocks thereof belonging to such
20 members, individually or in common under a so-called locker, pool, or
21 revolving fund system and are replenished only at the expense of such
22 members; and
23 (B) The private club has acquired a permit from the
24 Alcoholic Beverage Control Board, in such form as the board may appropriately
25 determine; and
26 (B) The private club purchases the alcoholic beverages,
27 beer, and wine consumed by its members from a licensed retailer or
28 wholesaler.
29 (2)(A) A private club may serve any alcoholic beverage furnished
30 or drawn under the provisions of subdivision (b)(1) of this section on the
31 golf course on which the private club is located when the private club is
32 hosting a professional golf tournament or other charitable golf tournament
33 sponsored by a charitable organization described in 26 U.S.C. 501(c)(3) and
34 the Director of the Alcoholic Beverage Control Division has been notified by
35 the private club at least sixty (60) calendar days prior to the beginning of
36 the event.
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1 (B) Persons attending the event shall be deemed guests of
2 the private club, and the private club may serve the alcoholic beverages to
3 the guests for cash.
4 (C) The director may promulgate rules he or she deems
5 necessary to implement this subdivision (b)(2).
6 (c) In order to clarify the alcoholic beverage control laws of this
7 state and to regulate and prohibit the sale of alcoholic beverages in
8 violation of the provisions of this subchapter and other applicable alcoholic
9 beverage control laws of this state, the General Assembly determines that the
10 preparation, mixing, and serving of wine and beer for consumption only by the
11 lodging guests on the premises of a bed and breakfast private club as defined
12 in 3-9-202(2) and the making of a charge for such services shall not be
13 deemed to be a sale or to be in violation of any law of this state
14 prohibiting the manufacture, sale, barter, loan, or giving away of
15 intoxicating liquor whenever:
16 (1) The wine and beer so consumed have been furnished or drawn
17 from private stocks belonging to an owner of the bed and breakfast private
18 club and are replenished only at the expense of such owner;
19 (2) The wine and beer consumed must have been must be purchased
20 in by the owner of the bed and breakfast private club from an Arkansas
21 licensed retail alcoholic beverage store or licensed wholesaler, as
22 authorized by the director;
23 (3)(2) The average annual volume of wine and beer consumed shall
24 not exceed three gallons (3 gals.) per month per guest room; and
25 (4)(3) The bed and breakfast private club has acquired a permit
26 from the board in such form as the board may appropriately determine.
27
28 SECTION 4. Arkansas Code 3-9-223(b), concerning the supplemental tax
29 on gross proceeds or gross receipts derived by the private clubs, is amended
30 to read as follows:
31 (b)(1) In addition, there is levied a supplemental tax of ten percent
32 (10%) upon the gross proceeds or gross receipts derived by the private club
33 from the charges to members for the preparation and serving of mixed drinks
34 or for the cooling and serving of beer and wine, drawn from the private
35 stocks of the members as provided in 3-9-221, for consumption only on the
36 premises where served.
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1 (2) In addition to the tax levied under subdivision (b)(1) of this
2 section, a supplemental tax of four percent (4%) is levied on the gross
3 proceeds or gross receipts derived by the private club from the charges to
4 members for the preparation and serving of mixed drinks drawn from the
5 private stocks of the members as provided in 3-9-221 for consumption only
6 on the premises where served.
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Statutes affected: HB 1163: 3-4-405(a), 3-5-1904(a), 3-9-221, 3-9-202(2), 3-9-223(b)