BILL ANALYSIS                                                                                                                                                                                                    




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          |SENATE RULES COMMITTEE            |                        SB 685|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 685
          Author:   McGuire (D), et al.
          Amended:  6/1/15  
          Vote:     21  

           SENATE GOVERNMENTAL ORG. COMMITTEE:  11-0, 4/14/15
           AYES:  Hall, Berryhill, Block, Gaines, Galgiani, Hernandez,  
            Hill, Hueso, Lara, McGuire, Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Alcoholic beverage service: veterans' club license:  
                     beer and wine tasting


          SOURCE:    AMVETS, Department of California

          DIGEST:    This bill expands the privileges of a holder of a  
          veterans' club license by allowing the licensee to also sell and  
          serve alcoholic beverages to bona fide members of other  
          congressionally chartered veterans organizations, active duty or  
          reserve members of the Armed Forces, or veterans, as defined.

          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.








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          2)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 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)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)Defines "veteran" to mean any person who has served full time  
            in the Armed Forces in time of national emergency or state  
            military emergency or during an expedition of the Armed Forces  
            and who has been discharged or released under conditions other  
            than dishonorable.  (Government Code Section 18540.4)

          6)Provides that the holder of a veterans' club license may  
            exercise all of the rights and privileges permitted by an  








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            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.    

          This bill:

          1)Expands the privileges of the holder of a veterans' club  
            license by allowing such clubs to also serve and sell  
            alcoholic beverages to bona fide members of other  
            congressionally chartered veterans organizations, active duty  
            or reserve members of the Armed Forces, or veterans defined in  
            Section 18540.4 of the Government Code.

          1)Specifies that a bona fide member of a veterans organization,  
            bona fide guest, active duty or reserve member of the Armed  
            Forces, or veteran is not required to sign a roster before  
            purchasing or being served alcoholic beverages for  
            consumption.

          2)Declares legislative intent to expand the rights of a holder  
            of a veterans' club license to serve and sell alcoholic  
            beverages.    

          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. 

          The existing veterans' club license was first established during  
          World War II and was developed to allow veterans organizations  
          to operate as a club house for members and their guests.  There  
          are currently approximately 317 of these licenses which are  
          authorized to sell and serve alcoholic beverages only to bona  
          fide members of the club and their guests for consumption within  
          the licensed establishment. 

          According to the author's office, this bill is intended to  
          broaden the scope of "veterans" that can be served alcoholic  








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          beverages on the club's premises thereby increasing  
          opportunities for fundraising to support programs that provide  
          assistance to veterans. 

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


          According to the Senate Appropriations Committee, there will be  
          unknown costs, potentially $95,000 annually for enforcement  
          activities (Special Fund).



          SUPPORT:  (Verified 5/29/15)

          AMVETS, Department of California (source)
          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
           
          OPPOSITION:  (Verified 5/29/15)

          California Council on Alcohol Problems

          ARGUMENTS IN SUPPORT:    Proponents note that this bill gives  
          veterans organization posts which hold a veteran's club license  
          the opportunity to sell and serve alcohol within the licensed  
          establishment to a greater universe of veterans, as specified.    
             
          
          ARGUMENTS IN OPPOSITION:   Opponents argue that as currently  
          drafted, this bill does not provide any particular format for  
          law enforcement or the Department of ABC to differentiate  
          between a bona fide guest and a private individual who enters  
          the club for purposes of alcohol consumption.  Opponents believe  
          some sort of sign-up sheet or roster identifying guests and the  








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          club member should be required as a condition for alcohol  
          purchase or consumption. 

          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          6/1/15 15:45:52


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