All Roll Calls
Yes: 130 • No: 13
ArkansasSB5232025 Regular SessionSenateWALLET
TO AMEND THE LAW REGARDING ALCOHOLIC BEVERAGES; AND TO REMOVE THE REQUIREMENT THAT A PRIVATE CLUB BE A NONPROFIT ORGANIZATION.
Sponsored By: Carol Dalby (Republican), Missy Irvin (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 5 benefits, 1 costs, 3 mixed.
Brewery clubs gain sales with fees
Microbrewery-restaurant clubs can manufacture beer, malt beverages, and hard cider on-site. They can sell products made by the club or a commonly owned facility to guests for on-site consumption during legal hours. They can also offer free samples. These activities carry a $750 state permit fee per fiscal year, payable to the Alcoholic Beverage Control Division. Applicable local fees and barrelage taxes also apply.
Club guests gain takeout drink options
Permitted private clubs can sell sealed alcoholic drinks with a meal for off-site consumption during legal operating hours. Guests must be at least 21, but need not be members or a member's guest. Pickup, drive-through, curbside service, and delivery are allowed. The law also removes the blanket ban on club sales by the package or drink and the related storage and revocation rules. Permitted clubs can charge for on-site mixed drink, beer, and wine service without treating it as a sale; nonprofit clubs must use members' private stocks, replenished only at members' expense.
Golf clubs can sell tournament drinks
Private clubs can sell alcohol to attendees at professional golf tournaments held on the golf course where the club is located. Charity tournaments also qualify when sponsored by a nonprofit organization covered by federal 501(c)(3) rules. The club must notify the state alcohol-control director at least 60 calendar days before the event. The director can regulate these events and must adopt implementing rules.
Nonprofit clubs can transfer permits cheaply
A nonprofit club's board can request a permit transfer in writing from both state alcohol-control divisions. The successor must be a corporation, partnership, individual, or limited liability company operating at the same location and organized or authorized in Arkansas. The successor and its owners must follow application procedures, but no new permit or application fee is required. After approval, the board can transfer all assets, including alcohol inventory, equipment, and property. For five years from the law's effective date, the Secretary of State waives all dissolution fees when an authorized transfer makes the nonprofit unnecessary.
More businesses qualify for club permits
Private clubs no longer have to be nonprofit organizations. Eligible businesses include corporations, partnerships, limited liability companies, sole proprietorships, and nonprofits organized or authorized to operate in Arkansas. The law removes the one-year existence, 100-member, nonprofit-purpose, revenue, and member-use restrictions for general private clubs. Microbrewery-restaurant clubs also gain broader business eligibility and lose the former one-year and nonprofit restrictions. They must still operate as both a microbrewery and a restaurant.
Private clubs face fewer operating restrictions
Private clubs no longer need to block outside views of patrons drinking alcohol. The law repeals specified Class C violations for missing membership or guest books, unauthorized guests, and serving nonmembers or nonguests. Clubs, including microbrewery-restaurant clubs, no longer need “Notice to Members” and the sponsor's name on social-function ads. Clubs using substantially the same trade name in wet and dry areas are exempt from the cited club advertising rules. Those ads cannot target only dry areas and must follow other applicable law.
Drink service taxes can reach guests
A 10% supplemental tax applies to club charges for preparing and serving mixed drinks or cooling and serving beer and wine on-site. Mixed drink service carries an additional 4% tax, for a combined 14% supplemental rate on those charges. The covered charges are no longer limited to drinks from members' private stocks. Clubs can pass these taxes to guests as well as members.
Bed-and-breakfasts must buy retail beer and wine
The bed-and-breakfast private club exception replaces private-stock sourcing with purchases from Arkansas-licensed retail alcohol stores. The state alcohol-control director must authorize the purchases. Lodging guests can consume the wine and beer only on-site. Consumption is capped at three gallons per month per guest room.
Hotel and event permits have limits
Corporations, partnerships, individuals, and limited liability companies can hold hotel or large-event private club permits in areas without public retail liquor sales. Restaurants no longer qualify under this category, and its former 100-person seating test is removed. Hotels need at least 80 lodging rooms and 5,000 square feet of public meeting, banquet, or restaurant space. Event facilities need at least 10,000 square feet of indoor or outdoor public meeting, banquet, exhibit, or restaurant space. Annual application or renewal fees are $1,500 for hotels and $2,500 for event facilities; hotels also face a $1,500 application fee in areas without public retail liquor sales. Annual fees are due by June 30 for the fiscal year beginning July 1. Hotel permits allow service in designated areas, including room service and stocked sleeping rooms, but not rooms occupied solely by people under 21. Guests can carry drinks between designated areas, and the state alcohol-control director must adopt implementing rules.
Sponsors & Cosponsors
Sponsors
Carol Dalby
Republican • House
Missy Irvin
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/14/2025
Senate Vote - Monday, April 14, 2025 11:27:04 AM
Yes: 29 • No: 4 • Other: 2
House vote • 4/8/2025
House Vote - Tuesday, April 8, 2025 4:25:26 PM
Yes: 70 • No: 8 • Other: 8
Senate vote • 4/2/2025
Senate Vote - Wednesday, April 2, 2025 3:48:34 PM
Yes: 31 • No: 1 • Other: 1
Actions Timeline
Notification that SB523 is now Act 762
4/18/2025SenateDELIVERED TO GOVERNOR.
4/15/2025SenateReported correctly enrolled and ordered delivered to the Governor.
4/15/2025SenateORDERED ENROLLED
4/14/2025SenateRead the third time and passed.
4/14/2025SenateRules suspended.
4/14/2025SenateHouse Amendment No. 1 read first time, rule suspended, read second time and concurred in.
4/14/2025SenatePlaced on second reading for purpose of amendment.
4/14/2025SenateReturned by the Committee with the recommendation that it Do Pass concur in House Amendment No. 1
4/10/2025SenateRe-referred to CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE
4/8/2025SenateReturned from the House as passed as amended # 1 .
4/8/2025SenateReturned to Senate as passed, as amended # 1
4/8/2025HouseRead the third time and passed and ordered transmitted to the Senate.
4/8/2025HouseREPORTED CORRECTLY ENGROSSED
4/7/2025HouseAmendment No. 1 read and adopted and the bill ordered engrossed.
4/7/2025HousePlaced on second reading for the purpose of amendment.
4/7/2025HouseReturned by the Committee with the recommendation that it do pass as amended 1
4/3/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on HOUSE RULES
4/2/2025HouseRECEIVED FROM THE SENATE
4/2/2025HouseOrdered immediately transmitted to the House.
4/2/2025SenateRead the third time and passed.
4/2/2025SenateReturned by the Committee, with the recommendation that it Do Pass
4/1/2025SenateRead first time, rules suspended, read second time, referred to CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE
3/19/2025SenateFiled
3/19/2025Senate
Bill Text
SB523 - Introduced
3/19/2025
Act Version
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