BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 685 Hearing Date: 4/14/2015
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|Author: |McGuire |
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|Version: |4/7/2015 |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Alcoholic beverage service: veterans' club license:
beer and wine tasting
DIGEST: This bill adds a new provision to the Alcoholic
Beverage Control (ABC) Act that authorizes a holder of a
veterans' club license, as part of a beer tasting, wine tasting,
or beer and wine tasting event, to sell and serve beer, wine, or
food for consumption within the licensed establishment to
members of the veterans' organization and their guests, as well
as to members of the "general public."
ANALYSIS:
Existing law:
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the ABC Act in accordance with laws enacted by the
Legislature. This involves licensing individuals and
businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection
of license fees for this purpose.
2)For purposes of the ABC Act, defines "club" to mean a
corporation or association which is the owner, lessee, or
occupant of an establishment operated solely for objects of a
social or athletic nature but not for pecuniary gain, having a
bona fide membership list, and the majority of the members of
SB 685 (McGuire) Page 2 of ?
which pay dues at least once in every year, and the property
as well as the advantages of which belong to the members, and
which sells alcoholic beverages only to its members and its
bona fide guests. (B & P Code Section 23037)
3)Provides for the issuance of a "club" license allowing the
sale of alcoholic beverages to a plethora of
clubs/organizations (e.g., golf club, swimming club, tennis
club, horse riding club, beach and athletic club, handball or
racquetball club, nonprofit mobile homeowners social club,
national fraternal organizations, rod and gun club, peace
officers and firefighters associations, nonprofit social and
religious club, National Guard or Air National Guard club,
labor council, American Citizens club, local dental society
club, condominium homeowners' association, Hidalgo Society,
nonprofit lawn bowls club, etc.).
4)Also, authorizes the issuance of a "veterans" club license and
defines veteran to mean any person who has served in the
United States Army, Navy, Air Force, Marine Corps, Coast
Guard, or as an active nurse in the service of the American
Red Cross, or in the Army and Navy Nurse Corps in time of war,
or in any expedition of the Armed Forces of the United States,
or who has served in one of these services during the period
September 16, 1940, to December 7, 1941, and received a
discharge under conditions other than dishonorable. (B & P
Code Section 23450)
5)Provides that the holder of a veterans' club license may
exercise all of the rights and privileges permitted by an
on-sale general license but may sell and serve alcoholic
beverages for consumption within the licensed establishment
only to bona fide members of the veterans' organization and
their bona fide guests. Also, provides that a veterans' club
license is not transferable, as specified.
This bill:
1)Expands the privileges of the holder of a veterans' club
license by creating a new provision in the ABC Act that
authorizes the licensee, as part of a beer tasting, wine
tasting, or beer and wine tasting event, to sell and serve
beer and wine, or food for consumption within the licensed
establishment to members of the general public, as well as to
the members of the veterans' organization and their guests.
SB 685 (McGuire) Page 3 of ?
2)Makes other conforming changes, as specified.
Background
Purpose of SB 685: Over the years numerous "club" licenses have
been added to the ABC Act allowing the license holder to sell
and serve alcoholic beverages for consumption within the
licensed establishment and "only" to members of the club and
their guests.
According to the author's office, existing law pertaining to
club licenses limits the ability for veterans' clubs to
fundraise and support vital programs which provide assistance to
California veterans due to the fact that the club license
authorizes the sale of beverages for consumption within the
licensed establishment and only to members of the veterans'
organization and their guests. This measure is intended to
expand this existing privilege and allow veterans' clubs to
invite the general public on the premises for beer and wine
tastings.
Prior/Related Legislation
AB 2793 (Governmental Organization Committee), Chapter 273,
Statutes of 2010. Among other things, authorized the Department
of ABC to issue a club license to nonprofit lawn bowls' clubs
that do not discriminate or restrict membership, as specified.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: No Local: No
SUPPORT:
AMVETS, Department of California (sponsor)
American Legion, Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
Military Officers Association of America, California Council of
Chapters
Jewish War Veterans
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
SB 685 (McGuire) Page 4 of ?
OPPOSITION:
California Council on Alcohol Problems
ARGUMENTS IN SUPPORT: Proponents note that this measure would
give veteran organization posts which hold a veteran's club
license the opportunity to sell and serve alcohol within the
licensed establishment to members of the public as well as the
members of the post and their guests. Proponents state that SB
685 would "enable posts to not only increase revenues from
non-member patrons, but could also grant them the ability to
utilize their post buildings for non-member community events."
ARGUMENTS IN OPPOSITION: Writing in opposition, the California
Council on Alcohol Problems (CCAP) states that SB 685 "will
increase commute dangers and other safety concerns in
residential neighborhoods, generate additional cost to
taxpayers, and will legally permit community establishments to
morph into bars to peddle drinking as a means of fundraising,
under the guise of tasting events."
DUAL REFERRAL: Senate Appropriations Committee