BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 685 (McGuire) - Alcoholic beverage service: veterans' club
license: beer and wine tasting
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|Version: April 7, 2015 |Policy Vote: G.O. 11 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 28, 2015 |Consultant: Maureen Ortiz |
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SUSPENSE FILE. AS AMENDED.
Bill
Summary: SB 685 authorizes the holder of a veterans' club
license to serve and sell beer and wine to members of the
general public within the licensed establishment as part of a
beer tasting, wine tasting, or beer and wine tasting event.
Fiscal Impact (as approved on May 28,
2015):
Unknown, potentially $95,000 annually for enforcement
activities (Special Fund)
The Department of Alcoholic Beverage Control (ABC) indicates
SB 685 (McGuire) Page 1 of
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that this bill will result in increased enforcement costs
without any increase in fee revenue. Exact costs will be
dependent on the number of wine and beer tasting events held and
the number of complaints received. For instance, in FY 2013/14
the ABC received 23 complaints ranging from allegations such as
gambling, disorderly, obviously intoxicated, sales to minors,
and sales to non-members. Of the 23 complaints, 9 required
extensive investigative and administrative time. The total cost
to handle those 23 complaints was $230,715. SB 685 does not
limit the number of events that each veteran's club can hold.
Background: The Department of Alcoholic Beverage Control currently
provides licenses for several types of clubs and organizations
including a veterans' club, golf club, swimming 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,
and many others.
The existing veterans' club license, Type 52, was first
established during World War 2 and was developed to allow
veterans organizations to operate as a club house for members
and their guests. There are currently 317 of these licensees
which are authorized to sell and serve alcoholic beverages only
to bona fide members of the veterans' organization and their
guests for consumption with the licensed establishment.
Proposed Law:
SB 685 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.
Staff
Comments: Holders of a veterans' club license pay a $100
initial application fee and $100 annually to renew. The Type
SB 685 (McGuire) Page 2 of
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52 licenses have limited privileges and are meant to allow the
operation of a club house, not a restaurant or bar. While the
existing Type 52 license restricts the serving and sale of
alcoholic beverages to members of the veterans' club and their
guests, these organizations are currently able to obtain an
additional catering permit (Type 58) which would allow them to
sell alcoholic beverages at special events. The fee for a
catering permit for a holder of a club license Type 52 ranges
from $572-$876 depending on population. With a catering permit,
holders of a Type 52 license may conduct an unlimited number of
events each year. Another existing option for these clubs to
use as a fundraising tool is to obtain a special one day license
from ABC to fundraise and sell to the general public at their
clubhouse by temporarily surrendering their original license.
Providing an exemption to veterans' clubs could result in
revenue loss to the ABC ranging from $176,337 to $270,881
annually.
SB 685 is intended to provide veterans' organizations with
increased opportunities for fundraising in order to support
programs that provide assistance to veterans.
Author Amendments (as adopted on May 28, 2015): Strike the
provisions authorizing veterans' organizations to serve members
of the general public.
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