Bill > SB523

This bill modernizes Arkansas' private club regulations by removing the requirement that private clubs must be nonprofit organizations and expanding the types of business entities that can operate private clubs. The legislation allows private clubs to be structured as corporations, partnerships, limited liability companies, or sole proprietorships, instead of being limited to nonprofit corporations. Key changes include eliminating previous restrictions such as membership requirements, membership books, and rules about guest access. The bill removes several existing regulations, such as the requirement that club activities be conducted for non-alcoholic purposes and the limitation that club revenues cannot benefit members. The legislation aims to enhance economic flexibility for private clubs, particularly in dry counties, by allowing more diverse business structures and operational approaches. The bill provides a transitional process for existing nonprofit private clubs to transfer their permits to new business entities, including waiving certain fees for dissolution of the original nonprofit corporations. The changes are intended to modernize regulatory practices, foster economic development, and provide businesses with greater operational flexibility in serving alcoholic beverages.

Government Affairs

https://arkleg.state.ar.us/Bills/Detail?id=sb523&ddBienniumSession=2025%2F2025R