BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 685| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 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 vote 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. SB 685 Page 2 Assembly Amendments add clarity with respect to which veterans organizations this bill is applicable to. 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)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 SB 685 Page 3 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 consumption. 3)Declares legislative intent to expand the rights of a holder of a veterans' club license to sell and serve alcoholic beverages. Background SB 685 Page 4 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 Chapters Jewish War Veterans Veterans of Foreign Wars, Department of California Vietnam Veterans of America, California State Council OPPOSITION: (Verified 8/28/15) SB 685 Page 5 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 **** END **** SB 685 Page 6