BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 905|
          |Office of Senate Floor Analyses   |                              |
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                                      CONSENT 


          Bill No:  SB 905
          Author:   Bates (R) 
          Amended:  4/7/16  
          Vote:     21 

           SENATE GOVERNMENTAL ORG. COMMITTEE:  12-0, 4/12/16
           AYES:  Hall, Berryhill, Block, Gaines, Galgiani, Glazer,  
            Hernandez, Hill, Hueso, Lara, McGuire, Vidak
           NO VOTE RECORDED:  Runner

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Alcoholic beverage control:  club licenses


          SOURCE:    Veterans Association of North County
          
          DIGEST:    This bill authorizes the Department of Alcoholic  
          Beverage Control (ABC) to issue a club license to a nonprofit  
          umbrella organization consisting of multiple veteran  
          organizations established to provide a central meeting location,  
          resources, and services for veterans and does not discriminate  
          or restrict membership, as specified.

          ANALYSIS:
          
          Existing law:
          
          1)Establishes the Department of 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", for purposes of the ABC Act, 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, bona fide members of other veterans'  
            organizations, active duty or reserve members of the Armed  
            Forces or veteran's as defined in Section 18540.4 of the  
            Government Code.    
          
          This bill establishes a new "club" license in the ABC Act that  
          authorizes the Department of ABC to issue an alcoholic beverage  
          license to a nonprofit umbrella organization that serves at  
          least six veteran organizations, as specified and does not  
          discriminate or restrict membership on account of the person's  
          color, race, religion, ancestry, national origin, sex, or age.  

          Background

          Purpose of SB 905.  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 author's office states that recent legislation, SB 685  
          (McGuire, Chapter 423, Statutes of 2015), which expanded the  
          authority of a veterans' club to serve and sell alcoholic  
          beverages for consumption within the club premises to specified  
          members inadvertently did not address nonprofit umbrella  
          organizations consisting of multiple veteran service  
          organizations such as the Veterans Association of North County  
          (VANC) in San Diego.  This bill is intended to fix this  
          oversight and make VANC and other similar associations eligible  
          for the same privileges as their constituent member  
          organizations.

          The author's office notes that VANC was established as a  
          non-profit in 2007 to provide a central meeting place for North  
          County veterans' organizations and their members, as well as to  
          provide training, counseling, job placement, housing assistance  
          and other services to veterans.  VANC worked with the City of  
          Oceanside to establish a long-term lease of an abandoned police  
          station that they have refurbished and is awaiting its grand  








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          opening.  

          In addition to providing a meeting facility, the training that  
          VANC hopes to offer its members and community is security guard  
          training and certification, truck driver training, fiber optics  
          training and certification, as well as, a culinary arts training  
          and certification program utilizing the kitchen facilities.   
          VANC would also like to use the facility for a variety of  
          receptions and dinners.  

          Prior/Related Legislation
          
          SB 685 (McGuire, Chapter 423, Statutes of 2015) expanded the  
          privileges of a holder of a veterans' club license by allowing  
          the licensee to also 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.

          AB 2793 (Governmental Organization Committee, Chapter 273,  
          Statutes of 2010) among other things, authorized the Department  
          of ABC to issue a club license to nonprofit lawn bowls' clubs  
          that do not discriminate or restrict membership, as specified.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified4/25/16)


          Veterans Association of North County (source)


          OPPOSITION:   (Verified4/25/16)


          None received










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          Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
          4/27/16 15:57:15


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