Private-club alcohol permit has new step

A newly amended state law now requires an element of local approval when businesses and organizations seek to become private clubs so they can get permits to sell alcoholic beverages.

Sponsored by state Sen. Eddie Joe Williams, R-Cabot, the measure took effect Aug. 2 and applies to the private-club process in both dry and wet counties.

The subsequent step of granting liquor permits to private clubs remains with the state Alcoholic Beverage Control Division. Decisions by its director can still be appealed to the division's board.

The law now requires that organizations such as country clubs or businesses such as restaurants that want to become private clubs petition the local governing body -- either the city council or the county quorum court depending on the operation's location -- for permission. Only after that request is granted can the organization or business then seek a state permit to sell alcoholic beverages.

If the local governing board rejects the initial request, the organization or business can appeal the decision but cannot seek an alcohol permit unless the decision is overturned.

"You just can't have bureaucrats in a building somewhere making decisions," Williams said Thursday.

Rep. Bob Ballinger, R-Hindsville, handled the bill in the House. He did not immediately return a phone message seeking comment Thursday.

"When you start changing the personality of a community ... those [decisions] are best left at least for the initial phase to the city council or" the quorum court for the affected area, Williams said. "I think most people view it as a local decision."

According to employees at the Arkansas Bureau of Legislative Research and the Alcoholic Beverage Control Division, the measure applies to all counties.

The application for an annual permit from the state also requires an annual permit fee of $1,500. An application for a bed-and-breakfast private club permit is less expensive, at $75. Private-club permit applications for dry counties, which can be contentious and time-consuming, require an additional fee of $1,500.

State Desk on 10/06/2017

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