BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 905


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          Date of Hearing:  June 8, 2016


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          SB  
          905 (Bates) - As Amended April 7, 2016


          SENATE VOTE:  37-0


          SUBJECT:  Alcoholic beverage control:  club licenses


          SUMMARY:  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.  Specifically, this bill:  





          1)  Defines "club" to  also mean a nonprofit umbrella  
          organization established to provide a central meeting location,  
          resources, and services specifically for veterans, including  
          those on active duty, and that owns or leases, operates, and  
          maintains a facility for these purposes. 


          2)  States the nonprofit umbrella organization shall serve at  
          least six veteran organizations, composed solely of veterans,  








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          that have been chartered by the Congress of the United States  
          for patriotic, fraternal, or benevolent purposes and which post,  
          chapter, camp, or other local unit has operated as such for not  
          less than one year.


          3)  Provides it shall be unlawful for any club licensed, as  
          defined, to make any discrimination, distinction, or restriction  
          against any person on account of the person's color, race,  
          religion, ancestry, national origin, sex, or age.


          EXISTING LAW:   


          1)Establishes 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)For purposes of the Act, 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.  












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          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.  





          5)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, 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.    








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          6)  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.  





          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          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.  





          According to the author's office, SB 685 (McGuire of 2015)  
          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 (VSOs) such as the Veterans Association of North  
          County (VANC) in San Diego.  SB 905 is intended to fix this  








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          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  
          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 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,  








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          as well as to the members of the veterans' organization and  
          their guests.





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


          REGISTERED SUPPORT / OPPOSITION:




          Support


          American G.I. Forum of California


          American Legion-Department of California


          AMVETS-Department of California


          California Association of County Veterans Service Officers


          California Council of Chapters


          California State Commanders Veterans Council










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          Military Officers Association of America


          Veterans Association of North County


          VFW-Department of California


          Vietnam Veterans of America-California State Council




          Opposition


          None on file




          Analysis Prepared by:Eric Johnson / G.O. / (916)  
          319-2531