BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 905


                                                                    Page  1





          SENATE THIRD READING


          SB  
          905 (Bates)


          As Amended  August 11, 2016


          Majority vote


          SENATE VOTE:  37-0


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Governmental    |17-0 |Gray, Bigelow, Bonta,  |                     |
          |Organization    |     |Cooley, Cooper, Daly,  |                     |
          |                |     |Gallagher, Cristina    |                     |
          |                |     |Garcia, Eduardo        |                     |
          |                |     |Garcia, Gipson,        |                     |
          |                |     |Jones-Sawyer, Levine,  |                     |
          |                |     |Linder, Salas,         |                     |
          |                |     |Steinorth, Waldron,    |                     |
          |                |     |Wilk                   |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |18-0 |Gonzalez, Bigelow,     |                     |
          |                |     |Bloom, Bonta,          |                     |
          |                |     |Calderon, Chang, Daly, |                     |
          |                |     |Eggman, Gallagher,     |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |








                                                                     SB 905


                                                                    Page  2





          |                |     |Roger Hernández,       |                     |
          |                |     |Holden, Jones,         |                     |
          |                |     |Obernolte, Quirk,      |                     |
          |                |     |Santiago, Wagner,      |                     |
          |                |     |Weber, Wood            |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
           -------------------------------------------------------------------- 


          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,  
            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.


          4)Provides members of the veteran organizations served by the  
            nonprofit umbrella organization shall be deemed to be members  








                                                                     SB 905


                                                                    Page  3





            of the nonprofit umbrella organization regardless of whether  
            they are charged separate dues to hold that membership.


          5)Requires the nonprofit umbrella organization to obtain  
            documentation from the veteran organizations it serves to  
            establish that those veteran organizations meet the  
            requirements of the section.





          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.  


          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  








                                                                     SB 905


                                                                    Page  4





            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 Government Code Section  
            18540.4.    


          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 Assembly Appropriations  








                                                                     SB 905


                                                                    Page  5





          Committee, minor and absorbable costs to ABC.


          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), Chapter 423,  
          Statutes 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 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  








                                                                     SB 905


                                                                    Page  6





          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,  
          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.




          Analysis Prepared by:                                             
                          Eric Johnson / G.O. / (916) 319-2531  FN:  
          0003965