BILL ANALYSIS Ó SB 685 Page 1 Date of Hearing: July 8, 2015 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair SB 685 (McGuire) - As Amended June 25, 2015 SENATE VOTE: 40-0 SUBJECT: Alcoholic beverage service: veterans' club license. SUMMARY: Authorizes a holder of a veterans' club license to sell and serve alcoholic beverages for consumption within the licensed establishment to members of other veterans' organizations, active duty or reserve members of the Armed Forces, or veterans, as well as to the members of the veterans' organization and their guests. Specifically, 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 veterans' organizations, active duty or reserve members of the Armed Forces, or veterans defined in Section 18540.4 of the Government Code. 2)Specifies that a bona fide member of a veterans' organization, bona fide guest, active duty or reserve member of the Armed SB 685 Page 2 Forces, or veteran is not required to sign a roster before purchasing or being served alcoholic beverages for consumption. 3)Declares legislative intent to expand the rights of a holder of a veterans' club license to serve and sell alcoholic beverages. EXISTING LAW: 1)Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the 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)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) SB 685 Page 3 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) SB 685 Page 4 6)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. FISCAL EFFECT: Unknown COMMENTS: Purpose of the bill . Over the years, numerous "club" licenses have been added to the 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 clubhouse for members and their guests. There are currently approximately 317 of these licenses that 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 SB 685 Page 5 beverages on the club's premises thereby increasing opportunities for fundraising to support programs that provide assistance to veterans. 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. In opposition : Opponents argue that as currently drafted, this bill does not provide any particular format for law enforcement or the 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 club member should be required as a condition for alcohol purchase or consumption. REGISTERED SUPPORT / OPPOSITION: Support AMVETS, Department of California American Legion, Department of California SB 685 Page 6 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 California Council on Alcohol Problems Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531 SB 685 Page 7