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1 State of Arkansas As Engrossed: H3/13/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 345
4
5 By: Senator Irvin
6 By: Representative Dalby
7
8 For An Act To Be Entitled
9 AN ACT TO PROMOTE TOURISM AND ECONOMIC DEVELOPMENT BY
10 IMPROVING EFFICIENCY OF THE PRIVATE CLUB PERMITTING
11 PROCESS OF HOTELS, RESTAURANTS, AND LARGE-EVENT
12 FACILITIES; TO REMOVE AN OVERLY BURDENSOME TAX
13 REQUIREMENT; AND FOR OTHER PURPOSES.
14
15
16 Subtitle
17 TO PROMOTE TOURISM AND ECONOMIC
18 DEVELOPMENT BY IMPROVING EFFICIENCY OF
19 THE PRIVATE CLUB PERMITTING PROCESS OF
20 HOTELS, RESTAURANTS, AND LARGE-EVENT
21 FACILITIES; AND TO REMOVE AN OVERLY
22 BURDENSOME TAX REQUIREMENT.
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
25
26 SECTION 1. DO NOT CODIFY. Legislative findings.
27 The General Assembly finds that:
28 (1) Arkansas is known as the Natural State because of its
29 natural beauty and abundant outdoor recreational opportunities;
30 (2)(A) Arkansas has been consistently recognized as one of the
31 top places in the United States to live and in a recent annual study as the
32 most popular state to move to in 2024;
33 (B) Respondents in the study cited job opportunities and
34 affordability as the respondents' primary motivators to move to Arkansas;
35 (3) As a state, Arkansas can recruit sought-after amenities,
36 including major restaurant chains that Arkansans express desire in their
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1 communities to promote continued growth and economic development;
2 (4) Arkansas can recruit and attract hotels, large-event
3 facilities, and restaurants by eliminating the requirement to establish a
4 nonprofit corporation to obtain a private club permit; and
5 (5) The requirement to establish a nonprofit corporation to
6 obtain a private club permit is overly burdensome and results in the
7 necessity of filing multiple tax returns and other business filings for each
8 business location in the same corporation.
9
10 SECTION 2. Arkansas Code � 3-9-202(14), concerning the definition of
11 "private club", is amended to read as follows:
12 (14)(A)(i) "Private club" means, except as provided in
13 subdivision (14)(D) of this section, a nonprofit corporation organized and
14 existing under the laws of this state, no part of the net revenues of which
15 shall inure directly or indirectly to the benefit of any of its members or
16 any other individual, except for the payment of bona fide expenses of the
17 club's operations, and which is conducted for some common recreational,
18 social, patriotic, political, national, benevolent, athletic, community
19 hospitality, professional association, entertainment, or other nonprofit
20 object or purpose other than the consumption of alcoholic beverages.
21 (ii) The nonprofit corporation shall have been in
22 existence for a period of not less than one (1) year before applying for a
23 permit, as prescribed in this subchapter.
24 (iii) At the time of application for the permit, the
25 nonprofit corporation must have not fewer than one hundred (100) members and
26 at the time of application must own or lease, be the holder of a buy-sell
27 agreement or offer and acceptance, or have an option to lease a building,
28 property, or space therein for the reasonable comfort and accommodation of
29 its members and their families and guests and restrict the use of club
30 facilities to those persons.
31 (B) For purposes of this subdivision (14), a person shall
32 be required to become a member of the private club in any wet area of the
33 state only upon ordering an alcoholic beverage as defined under subdivision
34 (1) of this section.
35 (C) Furthermore, where the business entity that holds a
36 private club permit additionally holds a retail beer permit, retail wine for
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1 consumption on the premises permit, or cafe or restaurant wine permit, the
2 hours of operation authorized for the private club shall likewise apply to
3 all permits of the business entity.
4 (D) A corporation, partnership, individual, or limited
5 liability company applying for a hotel, restaurant, or large-event facility
6 private club permit under � 3-9-221(a)(3)(B) is not required to form a
7 nonprofit corporation but shall otherwise comply with all requirements of �
8 3-9-240;
9
10 SECTION 3. Arkansas Code � 3-9-221(a)(3)(B)-(E), concerning counties
11 or parts of counties that have not approved the retail sale of intoxicating
12 liquors but are involved in tourism and promotion of economic development,
13 are amended to read as follows:
14 (B) To ensure that tourism and large-event facilities as
15 well as other associated activities are allowed to exist to promote the
16 economic development in the state, a new hotel, restaurant, or large-event
17 facility private club permit, for use in those places where the public retail
18 sale of intoxicating liquors is not authorized, should be created.
19 (C) These permits are necessary so that persons visiting
20 hotels, restaurants, or large-event facilities in these areas will be able to
21 enjoy the amenities that a person might find in other states.
22 (D) This additional permit will enhance the experience of
23 going to hotels, restaurants, or large-event facilities that may display
24 items of historic interest, contain extensive art collections, or host
25 musical or dramatic presentations.
26 (E)(i) Further, since the counties or parts of counties in
27 which these hotels, restaurants, or large-event facilities will be located do
28 not allow the open public retail sale of intoxicating liquors, the nonprofit
29 corporations that have been established to have the hotel facilities,
30 restaurants, or the large-event facilities should be allowed to offer
31 alcoholic beverages to members of the nonprofit corporations and their
32 guests.
33 (ii) These nonprofit corporations have been
34 established for the purpose of operating a qualifying hotel or large-event
35 facility private club or other mutual purposes, not for pecuniary gain, but
36 for their mutual convenience and to provide for the preparation and serving
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1 to the members and their guests alcoholic beverages owned by the members
2 individually or in common under a locker, pool, or revolving fund system.
3
4 SECTION 4. Arkansas Code � 3-9-222(c)(3)(A), concerning the contents
5 of the notice required to be published by an applicant for a private club
6 permit, is amended to read as follows:
7 (3) The notice shall give the names of the managing agent and
8 the nonprofit corporation or, in the case of a bed and breakfast private
9 club, the name of the business owner, and shall state:
10 (A) That the manager, or in the case of a bed and
11 breakfast private club or a hotel, restaurant, or large-event facility
12 private club, the owner, at least one (1) partner, or the majority
13 stockholder is a citizen of Arkansas;
14
15 SECTION 5. Arkansas Code � 3-9-240 is amended to read as follows:
16 3-9-240. Hotel, restaurant, or large-event facility private club
17 permit.
18 (a)(1) An application for a hotel, restaurant, or large-event facility
19 private club permit shall be in writing and shall provide information
20 concerning the applicant for the hotel, restaurant, or large-event facility
21 private club permit and the premises to be used by the applicant as the
22 Director of the Alcoholic Beverage Control Division requires.
23 (2) A hotel, restaurant, or large-event facility private club
24 permit may be issued only in a county or a territory of a county that does
25 not allow the public retail sale of intoxicating liquors as provided under �
26 3-8-201.
27 (3) A hotel, restaurant, or large-event facility private club
28 permit may be issued to a corporation, partnership, individual, or limited
29 liability company.
30 (b) The application for a hotel, restaurant, or large-event facility
31 private club permit shall be accompanied by a check or money order for the
32 amount required by this section for the hotel, restaurant, or large-event
33 facility private club permit.
34 (c) A hotel, restaurant, or large-event facility private club permit
35 application shall contain a description of the premises permitted and provide
36 proof that the space leased has at least:
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1 (1) Eighty (80) lodging rooms and five thousand square feet
2 (5,000 sq. ft.) of public meeting, banquet, or restaurant space from a hotel;
3 or
4 (2) Ten thousand square feet (10,000 sq. ft.) of interior or
5 exterior public meeting, banquet, exhibit hall, or restaurant space from a
6 large-event facility; or
7 (3) Seating capacity for not fewer than one hundred (100) people
8 in the restaurant that otherwise complies with the requirements of � 3-9-
9 202(16).
10 (d) If the director grants an application for a hotel, restaurant, or
11 large-event facility private club permit, he or she shall issue a hotel,
12 restaurant, or large-event facility private club permit in a form as
13 determined by the rules of the Alcoholic Beverage Control Division.
14 (e)(1) A hotel, restaurant, or large-event facility private club
15 permit authorizes the dispensing, service, and consumption of alcoholic
16 beverages by and to members and their guests on the premises of a hotel,
17 restaurant, or large-event facility private club permittee for on-premises
18 consumption at a hotel or large-event facility leased to a hotel or large-
19 event facility private club permittee.
20 (2) The areas of a hotel, restaurant, or large-event facility
21 that may be leased to utilized by a hotel, restaurant, or large-event
22 facility private club permittee for purposes of a hotel, restaurant, or
23 large-event facility private club permit include without limitation:
24 (A) Sleeping rooms;
25 (B) Pool-side bars;
26 (C) Banquet facilities;
27 (D) Restaurants;
28 (E) Lobbies;
29 (F) Exhibit halls;
30 (G) Patios; and
31 (H) Outdoor gardens.
32 (3) Members Guests of the hotel or large-event facility private
33 club permittee that holds a hotel, restaurant, or large-event facility
34 private club permit may move from one area to another area designated under
35 subdivision (e)(2) of this section while consuming alcoholic beverages.
36 (f)(1) A hotel or large-event facility that leases all or a portion of
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1 its premises to a hotel or large-event facility private club permittee shall
2 clearly identify the areas of the hotel or large-event facility that are
3 leased to the hotel or large-event facility private club permittee.
4 (2)(A) Areas leased by a hotel or large-event facility private
5 club permittee that contain articles of historic interest or art or dramatic
6 or musical presentations shall be open to members of the hotel or large-event
7 facility private club permittee and to nonmembers of the hotel or large-event
8 facility private club permittee.
9 (B) However, a A person must be a member or the guest of a
10 member of the hotel, restaurant, or large-event facility private club
11 permittee to consume or possess alcoholic beverages dispensed by the hotel,
12 restaurant, or large-event facility private club permittee.
13 (3)(2) Persons under twenty-one (21) years of age may be allowed
14 on the premises of the hotel, restaurant, or large-event facility private
15 club permittee.
16 (4)(A)(3)(A) A hotel holding a hotel, restaurant, or large-event
17 facility private club permit under this section may lease a sleeping room to
18 a hotel or large-event facility private club permittee for the service of
19 alcoholic beverages.
20 (B) The hotel holding a hotel or large-event facility
21 private club permit may use room service to serve the alcoholic beverage.
22 (C)(B) The hotel holding a hotel, restaurant, or large-
23 event facility private club permit may stock the leased a sleeping room with
24 alcoholic beverages, and the hotel or large-event facility private club
25 permittee through the hotel's employees shall inventory the alcoholic
26 beverages in the leased sleeping room.
27 (D)(C) Sleeping rooms that are solely occupied by persons
28 twenty (20) years of age and under shall not receive alcoholic beverages
29 through room service or be stocked with alcoholic beverages.
30 (5) A hotel or large-event facility that leases space to a hotel
31 or large-event facility private club permittee shall provide a means of
32 entering the hotel or large-event facility to allow a person to knowingly
33 decide if he or she would like to become a member of the hotel or large-event
34 facility private club permittee.
35 (g)(1) A hotel leasing its premises to a hotel or large-event facility
36 private club permittee may include a membership application to the hotel or
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1 large-event facility private club permittee as part of its registration
2 materials.
3 (2) A guest of a hotel becoming a member of the hotel or large-
4 event facility private club permittee shall receive a membership card.
5 (3) A hotel that includes a membership application to the hotel
6 or large-event facility private club permittee as part of its registration
7 materials shall retain the registration materials as required by the
8 division.
9 (4) A hotel or large-event facility private club permittee may
10 refuse a membership or revoke a membership of a person that does not abide by
11 the hotel or large-event facility private club permittee rules.
12 (h)(1)(A)(g)(1)(A) For a hotel and a restaurant, the application and
13 renewal fee for a hotel, restaurant, or large-event facility private club
14 permit is one thousand five hundred dollars ($1,500) per year payable on or
15 before June 30 of each calendar year for the fiscal year beginning July 1.
16 (B) In an area in which the sale of intoxicating liquor
17 has not been authorized by local option as provided under � 3-8-201 et seq.,
18 the application for a hotel, restaurant, or large-event facility private club
19 permit shall be accompanied by an additional application fee of one thousand
20 five hundred dollars ($1,500).
21 (2) The application and renewal fee for a large-event facility
22 for a hotel, restaurant, or large-event facility private club permit is two
23 thousand five hundred dollars ($2,500) per year payable on or before June 30
24 of each calendar year for the fiscal year beginning July 1.
25 (i)(h) The director shall promulgate rules to enforce this section.
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27 /s/Irvin
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7 03-13-2025 10:18:01 CRH192Every fact on this page links to its source, starting with the official bill record.