Title 5, Subtitle D | Conduct of Non-Profit Business of Dispensing Controlled Beverages in Private Clubs

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Section 5.18 Membership.
No person shall be considered a member of a private club holding a permit under the alcoholic beverage control laws of the State of Arkansas unless such person has met the membership requirements as set forth in the by laws of the non-profit corporation. (Amended 8-17-05)

Section 5.19 Minimum Membership.
Every private club must have a minimum of one hundred (100) voting members. Nothing in this Regulation shall prohibit a club from establishing other classes of membership. (Amended 8-17-05)

Section 5.20 Membership Committee. Repealed 8-17-05

Section 5.21 Election of Members. Repealed 8-17-05

Section 5.22 Membership Book.
All private clubs shall maintain and keep current a membership book as defined by these Regulations.

Section 5.23 Resolution of Internal Matters of a Licensed Private Club.
All officers and directors or other members of the governing body of a permitted private club shall be elected in accordance with the Arkansas Non-profit Corporation Act of 1993. The subject of membership voting rights of any permitted private club, including whether or not proxy voting will be allowed or whether cumulative voting will be allowed, shall be governed in accordance with the provisions of the Arkansas Non-profit Corporation Act. Any requirements for notices of meetings of a permitted private club shall also be governed in accordance with the provisions of the Arkansas Non-profit Corporation Act. Any complaint as to whether the above items have been complied with by a permitted private club shall be resolved outside the Alcoholic Beverage Control Division as may be provided for by the Arkansas Non-profit Corporation Act of 1993 or other law. In the event the corporation was created under the Arkansas Non-profit Corporation Act of 1963, and the corporation has not elected to be treated as a non-profit corporation under the provisions of the Arkansas Non-profit Corporation Act of 1993, the resolution of these matters will occur outside the Alcoholic Beverage Control Division as may otherwise be provided by law. (Amended 8-17-05)

Section 5.24 Voting by Proxy Allowed. Repealed 8-17-05

Section 5.25 One Vote for Each Member. Repealed 8-17-05

Section 5.26 Notice of Meeting. Repealed 8-17-05

Section 5.27 Salaries to be Reasonable and Proper and Commensurate With Other Salaries. Repealed 8-17-05

Section 5.28 Net Revenues to be Used Only for Bona Fide Expenses of the Club.
Any net revenues (as defined by these Regulations) of the club shall be used only for payment of bona fide expenses of the club.

Section 5.29 Bond for Payment of Fees Required. Repealed 8-19-99

Section 5.30 Private Club in Dry Area to Dispense Alcoholic Beverages to Members and Guests.
A private club located in a dry area of the state may dispense alcoholic beverages only to members and to guests who are in the physical company of a member. Provided, that an employee of the private club may not act as a host for any guest. (Amended 8-21-13)

Section 5.31 Dispensing Controlled Beverages to or Consumption by Non-member/Non-guest Prohibited.
No private club in a dry area shall allow the dispensing or consumption of controlled beverages on the premises of the club to or by any person other than a bona fide member of the club, one of such member’s family or a bona fide guest of a member of the club.

A private club may serve alcoholic beverages on a golf course on which the private club is located and which is controlled by the private club when the private club is hosting a professional golf tournament or other charitable golf tournament, either of which is sponsored by a charitable organization as described in §501(c)(3) of the Federal Internal Revenue Code and the Director has been notified by the private club at least sixty (60) calendar days prior to the beginning of the event. Persons who attend such event, either as spectators or as participants, shall be deemed to be guests of the private club and the private club may serve alcoholic beverages to the guests for cash. (Amended 8-17-05)

Section 5.32 Controlled Beverages Dispensed by Private Club to be Purchased From Authorized Source of Supply.
All controlled beverages dispensed by a private club must be purchased from a retail liquor store which holds a Federal Basic Wholesaler’s Permit issued by the Alcohol and Tobacco Tax and Trade Bureau. Provided, however, that those private clubs located in wet areas holding a retail beer permit or a retail wine permit must purchase beer and wine from holders of relevant wholesale beer or wine permits in whose designated territory the private club is located. (Amended 8-17-05)

Section 5.33 Private Club Must Designate Managing Agent.
All persons applying for or holding a private club permit shall designate a managing agent as provided in Title 1 of these Regulations.

Section 5.34 Managing Agent or Officer of Private Club Not to Hold Retail Off Premises Liquor Permit.
No managing agent of any private club or any officer or member of the board of directors of any private club shall hold a retail liquor permit for off premises consumption. (Amended 5-19-99)

Section 5.35 Financial Statement may be Required.
The Director, at his discretion, may order a private club to prepare a financial statement covering the immediately preceding calendar year of the club’s operations. The financial statement shall be certified by a licensed or registered accountant and shall clearly indicate the amount and source of all club receipts and the amount and purpose of all club disbursements in specific categories consistent with standard accounting practices. In addition, the financial statement must show a balance sheet of the club’s assets and liabilities at the end of the immediately preceding calendar year and must show the following in regard to all salaries and wages paid during the preceding calendar year:

(1) The name of each person receiving a salary or wages paid by the club during the preceding calendar year and such person’s social security number;

(2) The position each such person held with the club; and

(3) The amount paid to each such person in the form of salary, wages or otherwise. (Amended 8-17-05)

Section 5.36 Financial Statement to be Available for Inspection.
The financial statement described in Section 5.35 of these Regulations shall be available for inspection upon reasonable notice to the Director of the Alcoholic Beverage Control Division. (Amended 8-17-05)

Section 5.37 Private Club to Maintain Financial Records.
Each private club shall maintain written records of all club transactions, including all club receipts and disbursements, in a manner consistent with standard business bookkeeping practices. Such records shall be open for inspection upon reasonable notice by the Director of the Alcoholic Beverage Control Division or any authorized agent of the Alcoholic Beverage Control Enforcement Division. (Amended 8-17-05)

Section 5.38 Private Club to File Name and Address of Licensed Accountant and Bookkeeper. Repealed 8-17-05

Section 5.39 Private Club Permit Issued to Qualified Persons Only.
No private club permit shall be issued to any person who, in the judgement of the Director, does not qualify for said permit under these Regulations or under any alcoholic beverage control law of the State of Arkansas.

Section 5.40 Private Club Not to Allow Certain Persons to Serve as Directors or Officers. No private club shall allow any person to serve as a member of the board of directors or other governing body nor as an officer of the club who has been under the sentence, whether suspended or otherwise, of any court for the conviction of a felony within two (2) years preceding the date of the application, has had a permit, license or registration issued to them revoked under any alcoholic beverage control law of the State of Arkansas within five (5) years preceding the date of application, or is not of good moral character.

Section 5.41 Transportation of Controlled Beverages Through “Dry” Area to Private Club.  Repealed 8-15-07

Section 5.42 Director to Issue permit to Transport Through “Dry” Area; Permit to be in Possession of Driver When Controlled Beverages Transported.  Repealed 8-15-07

Section 5.43 Permit to Transport Controlled Beverages to Private Club Valid for One Year From Date of Issuance.  Repealed 8-15-07

Section 5.44 Unloading or Transfer of Controlled Beverages While in Transit Prohibited; Vehicle to be Locked While in Transit.  Repealed 8-15-07

Section 5.45 Hotel-Motel Guest Authorized to Apply for Membership of Private Club. 
In any case where a private club is operating within facilities connected with or leased or rented from a hotel or motel, any person registered as a guest of such hotel or motel may be admitted as a member to such private club only after making the application prescribed by these Regulations for any other applicant for private club membership.  If the manager of the hotel or motel where the separate private club is housed desires to offer free samples of alcoholic beverages to registered hotel guests, the hotel guests must either become a member in conformance with the provisions of this Regulation, or the hotel guests may be admitted to the private club in the physical company of the manager or his or her designee at the time the reception is held.  The manager shall be responsible for all drink charges that are assigned to him/her in order that the revolving fund of the non-profit corporation may be replenished as is required by law.  (Amended 8-19-09)

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