BILL ANALYSIS Ó SB 905 Page 1 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, SB 905 Page 2 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. SB 905 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. 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. SB 905 Page 4 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 SB 905 Page 5 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, SB 905 Page 6 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 SB 905 Page 7 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