Researcher: DC Page 1 5/6/21
OLR Bill Analysis
SB 263 (File 6, as amended by House "A" and Senate "A")*
AN ACT CONCERNING CLUB PERMIT AND NONPROFIT CLUB
PERMIT FEES.
SUMMARY
This bill reestablishes the club and nonprofit club alcoholic liquor
permits and eliminates current provisions that allow these permittees
to receive a cafe permit. PA 19-24, among other things, combined
various permits for on-premises alcohol consumption into the cafe
permit, including the club and nonprofit club permits. The bill allows
cafe permittees who were issued their permit for a club or nonprofit
club before July 1, 2021, to continue to hold the permit until it is due
for renewal or until the replacement permit established by the bill
becomes available.
The bill requires the Department of Consumer Protection (DCP)
commissioner to refund a portion of the cafe permit annual fee paid by
prior club and nonprofit club permittees between July 1, 2020, and July
1, 2021. Specifically, the commissioner must refund any amount that a
prior holder of (1) a club permittee paid in excess of $300 and (2) a
nonprofit club permittee paid in excess of $815. Under current law, the
annual fee for a cafe permit is $2,000.
The bill also makes various conforming and technical changes.
*Senate Amendment “A” replaces the underlying bill (File 6), which
reduced the cafe permit annual fees for prior club and nonprofit club
permits.
*House Amendment “A” (1) changes the effective date for the
reestablished permits and conforming and technical changes, from July
1, 2021, to upon passage, and (2) makes additional technical and
conforming changes. 2021SB-00263-R020636-BA.DOCX
Researcher: DC Page 2 5/6/21
EFFECTIVE DATE: Upon passage
CLUB PERMIT
The bill allows a club permittee to sell alcoholic liquor (e.g., spirits,
wine, or beer) at retail for consumption on the premises by members
and their guests. The annual fee for a club permit is $300.
Under the bill, clubs seeking a club permit are subject to the same
requirements that current law provides for clubs seeking a cafe permit.
Among other things, they must:
1. have been in existence for at least three years at the time of
application or, in the case of national or international fraternal
or social organizations, have been in Connecticut for at least one
year;
2. file with DCP (a) upon request and by February 11 each year, a
list of their members’ names and addresses and (b) the names
and addresses of new members within 10 days of their election;
3. have sufficient membership fees, dues, and other income (other
than income derived from selling alcoholic beverages) to pay for
their lease or any taxes, insurance, repairs, and mortgage
interest on property they own; and
4. conduct their affairs through a board of directors, executive
committee, or similar body chosen by members at an annual
meeting.
NONPROFIT CLUB PERMI T
Under the bill, nonprofit club permittees are subject to the same
requirements as under current law for cafe permits. Specifically, they
may sell alcoholic liquor for consumption on the premises by members
and their guests. They may also sell to others so long as the income
they derive from doing so does not exceed 15% of their annual gross
receipts. The annual fee for a nonprofit club permit is $815.
COMMITTEE ACTION 2021SB-00263-R020636-BA.DOCX
Researcher: DC Page 3 5/6/21
General Law Committee
Joint Favorable
Yea 19 Nay 0 (02/02/2021)