Directors now have to give nod to private clubs

Law puts control in local hands

The Texarkana, Ark., Board of Directors has a new responsibility, pre-approving permit applications for businesses wanting to operate as private clubs.

The Arkansas Legislature last year amended the private club permitting law to add a layer of local control. Now the state Alcoholic Beverage Control Division can issue private club permits—necessary for liquor sales—only if a city or county governing body first OKs the application.

The Texarkana board twice has had to decide whether to do so. In November 2017, the board approved allowing transfer of a private club permit from the former Electric Cowboy to Shooters. And Monday, directors voted to approve an application from Crazy Horse Saloon.

“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, the bill’s sponsor, state Sen. Eddie Joe Williams, R-Cabot, told the Arkansas Democrat-Gazette. “I think most people view it as a local decision.”

Getting a private club permit is a necessary step toward getting a hard liquor permit, but once a private club is established, getting a liquor permit is a separate process.

The Alcoholic Beverage Control Division charges an annual permit fee of $1,500 for private clubs in places that have elected to allow alcohol sales. For a permit to operate a private club in a dry county, the division charges an additional $1,500.