BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        SB 685|
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                                UNFINISHED BUSINESS 

          Bill No:  SB 685
          Author:   McGuire (D)
          Amended:  8/17/15  
          Vote:     21  

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

           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SENATE FLOOR:  40-0, 6/2/15
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner,  
            Stone, Vidak, Wieckowski, Wolk

           ASSEMBLY FLOOR:  78-0, 8/27/15 (Consent) - See last page for  

           SUBJECT:   Alcoholic beverage service: veterans club license

          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  
          veterans' organizations, active duty or reserve members of the  
          Armed Forces, or veterans, as defined.


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          Assembly Amendments add clarity with respect to which veterans  
          organizations this bill is applicable to.


          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)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  


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            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  
            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 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  
            Forces, or veteran is not required to sign a roster before  
            purchasing or being served alcoholic beverages for  

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



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          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  
          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.:YesLocal:   No

          According to the Assembly Appropriations Committee, there will  
          be a potential, though likely minor, increase in enforcement  
          costs to the Department of ABC.

          SUPPORT:  (Verified  8/28/15)

          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  
          Jewish War Veterans
          Veterans of Foreign Wars, Department of California
          Vietnam Veterans of America, California State Council

          OPPOSITION:  (Verified  8/28/15)


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

          ASSEMBLY FLOOR:  78-0, 8/27/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Wood, Atkins
          NO VOTE RECORDED:  Frazier, Williams

          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          8/28/15 16:06:37

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