Senate Bill No. 263
Public Act No. 21-10
AN ACT REESTABLISHIN G CLUB AND NONPROFIT CLUB
PERMITS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section,
"club" means an association of persons, whether incorporated or
unincorporated, (1) (A) that has been in existence as a bona fide
organization for at least three years prior to applying for a permit issued
as provided in chapter 545 of the general statutes, or (B) that has been a
bona fide national or international fraternal or social organization or
affiliation thereof which has been in existence in this state for one year,
(2) for the promotion of some common object, not including associations
organized for any commercial or business purpose the object of which
is money profit, owning, hiring or leasing a building, or space in a
building, or having substantial control of a building or space therein, of
such extent and character as, in the judgment of the department, may be
suitable and adequate for the reasonable and comfortable use and
accommodation of its members and their guests. A club permit shall
allow the retail sale of alcoholic liquor to be consumed on the premises
of a club but only by members or their guests. The annual fee for a club
permit shall be three hundred dollars.
(b) The department shall determine which clubs it finds to be bona Senate Bill No. 263
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fide and for such clubs as the department finds to be bona fide and
which offer facilities and privileges in addition to the privileges of the
club building, such as golf, tennis, bathing or beach facilities, hunting or
riding, the three-year requirement of subdivision (1) of subsection (a) of
this section shall not apply. Any such club shall be required to (1) file
with the department, upon request, within ten days of February first in
each year, a list of the names and residences of its members, and shall
similarly file, within ten days of the election of any additional member,
the member's name and address, (2) have aggregate annual membership
fees or dues and other income, exclusive of any proceeds of the sale of
alcoholic liquor, that is sufficient to defray the annual rental of its leased
or rented premises, or, if such premises are owned by the club, sufficient
to meet the taxes, insurance and repairs and the interest on any
mortgage thereof, and (3) have its affairs and management be conducted
by a board of directors, executive committee or similar body chosen by
the members at their annual meeting. No member or any officer, agent
or employee of the club shall be paid or, directly or indirectly, shall
receive in the form of salary or other compensation any profits from the
disposition or sale of alcoholic liquor to the club or to the members of
the club or its guests introduced by members, beyond the amount of
such salary as may be fixed and voted at annual meetings by the
members or by its directors or other governing body and as reported by
the club to the department, within three months after such annual
meeting, and as, in the judgment of the department, is reasonable and
proper compensation for the services of such member, officer, agent or
employee.
(c) As used in this subsection, "nonprofit club" means a club that is
exempt from federal income tax under Section 501(a) of the Internal
Revenue Code and is described in Section 501(c) of the code. A nonprofit
club permit shall allow the retail sale of alcoholic liquor to be consumed
on the premises of a nonprofit club by members or their guests and by
persons other than members or their guests, provided the total receipts Senate Bill No. 263
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of such club in any year, including receipts from the sale of alcoholic
liquor, derived from making its facilities and services available to such
persons in furtherance of such club's recreational or other nonprofit
purpose, shall not exceed fifteen per cent of such club's gross receipts
for such year. The annual fee for a nonprofit club permit shall be eight
hundred fifteen dollars.
Sec. 2. Subsections (g) to (m), inclusive, of section 30-22a of the
general statutes are repealed and the following is substituted in lieu
thereof (Effective from passage):
(g) For purposes of compliance with this section, "cafe" shall include
the premises and grounds of a golf country club, defined as (1) an
association of persons, whether incorporated or unincorporated, that
has been in existence as a bona fide organization for at least one year
prior to applying for a permit issued as provided by this chapter, or that
at the time of applying for the permit is in existence as a bona fide
organization and has not less than twenty members who have paid
annual membership fees or dues and have signed affidavits of their
intention to remain members of the association for not less than one year
after that time, not including associations organized for any commercial
or business purpose the object of which is money profit, which
maintains a golf course of not less than eighteen holes and a course
length of at least fifty-five hundred yards and a club house with facilities
that include locker rooms, a dining room and a lounge; provided the
club shall file with the department, upon request, within ten days of
February first in each year, a list of the names and residences of its
members, and shall similarly file, within ten days of the election of any
additional member, his name and address, and provided its aggregate
annual membership fees or dues and other income, exclusive of any
proceeds of the sale of alcoholic liquor, shall be sufficient to defray the
annual rental of its leased or rented premises, or, if the premises are
owned by the club, shall be sufficient to meet the taxes, insurance and Senate Bill No. 263
Public Act No. 21-10 4 of 13
repairs and the interest on any mortgage thereof; and provided, further,
its affairs and management shall be conducted by a board of directors,
executive committee or similar body chosen by the members at their
annual meeting, and no member or any officer, agent or employee of the
club shall be paid or, directly or indirectly, shall receive in the form of
salary or other compensation any profits from the disposition or sale of
alcoholic liquor to the club or to the members of the club or its guests
introduced by members, beyond the amount of such salary as may be
fixed and voted at annual meetings by the members or by its directors
or other governing body and as reported by the club to the department,
within three months after the annual meeting, and as is, in the judgment
of the department, reasonable and proper compensation for the services
of such member, officer, agent or employee; or (2) an association of
persons, whether incorporated or unincorporated, which has been in
existence as a bona fide organization for at least one year prior to
applying for a permit issued as provided by this chapter, or which at the
time of applying for the permit is in existence as a bona fide organization
and has not less than twenty members who have paid annual
membership fees or dues and is directly or indirectly wholly owned by
a corporation which is and continues to be nonprofit and to which the
Internal Revenue Service has issued a ruling classifying it as an exempt
organization under Section 501(c) of the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the United
States, as amended from time to time, which maintains a golf course of
not less than eighteen holes and a course length of at least fifty-five
hundred yards and a club house with facilities which include locker
rooms, a dining room and a lounge; provided the club shall file with the
department, upon request, within ten days of February first in each year,
a list of the names and residences of its members, and shall similarly file,
within ten days of the admission of any additional member, his name
and address. The nonprofit corporation shall demonstrate to the
commission an ability to pay any operating deficit of the golf country
club, exclusive of any proceeds of the sale of alcoholic liquor; and Senate Bill No. 263
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provided, further, the affairs and the management of the nonprofit
corporation are conducted by a board of directors, executive committee
or similar body at least forty per cent of the members of which are
chosen by the members of the nonprofit corporation at their annual
meeting and the balance of the members of the board of directors are
professionals chosen for their knowledge of the business of the
nonprofit corporation, and all moneys earned by the golf country club
shall be used to defray its expenses of operation or for charitable
purposes, and any balance shall be directly or indirectly remitted to the
nonprofit corporation.
[(h) For purposes of compliance with this section, "cafe" shall include
the premises of a club but only by members or their guests, a club being
defined as an association of persons, whether incorporated or
unincorporated, which has been in existence as a bona fide organization
for at least three years prior to applying for a permit issued as provided
by this chapter, or has been a bona fide national or international
fraternal or social organization or affiliation thereof which has been in
existence in this state for one year, for the promotion of some common
object, not including associations organized for any commercial or
business purpose the object of which is money profit, owning, hiring or
leasing a building, or space in a building, or having substantial control
of a building or space therein, of such extent and character as, in the
judgment of the department, may be suitable and adequate for the
reasonable and comfortable use and accommodation of its members and
their guests; provided, as to such clubs as the department finds to be
bona fide and which offer facilities and privileges in addition to the
privileges of the club building, such as golf, tennis, bathing or beach
facilities, hunting or riding, the three-year requirement shall not apply;
and provided such club shall file with the department, upon request,
within ten days of February first in each year, a list of the names and
residences of its members, and shall similarly file, within ten days of the
election of any additional member, his name and address, and provided Senate Bill No. 263
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its aggregate annual membership fees or dues and other income,
exclusive of any proceeds of the sale of alcoholic liquor, shall be
sufficient to defray the annual rental of its leased or rented premises, or,
if such premises are owned by the club, shall be sufficient to meet the
taxes, insurance and repairs and the interest on any mortgage thereof;
and provided, further, its affairs and management shall be conducted
by a board of directors, executive committee or similar body chosen by
the members at their annual meeting, and no member or any officer,
agent or employee of the club shall be paid or, directly or indirectly,
shall receive in the form of salary or other compensation any profits
from the disposition or sale of alcoholic liquor to the club or to the
members of the club or its guests introduced by members, beyond the
amount of such salary as may be fixed and voted at annual meetings by
the members or by its directors or other governing body and as reported
by the club to the department, within three months after such annual
meeting, and as, in the judgment of the department, is reasonable and
proper compensation for the services of such member, officer, agent or
employee.
(i) For purposes of compliance with this section, "cafe" shall include
the retail sale of alcoholic liquor to be consumed on the premises of a
nonprofit club by members or their guests and by persons other than
members or their guests, provided the total receipts of such club in any
year, including receipts from the sale of alcoholic liquor, derived from
making its facilities and services available to such persons in furtherance
of such club's recreational or other nonprofit purpose shall not exceed
fifteen per cent of such club's gross receipts for such year. "Nonprofit
club" means a club that is exempt from federal income tax under Section
501(a) of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as amended
from time to time, and is described in said Section 501(c).]
[(j)] (h) For purposes of compliance with this section, "cafe" shall Senate Bill No. 263
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include the sale and public consumption of alcoholic liquor by
passengers with or without meals upon any one designated boat
engaged in the transportation of passengers for hire to or from any port
in this state.
[(k)] (i) For purposes of compliance with this section, "cafe" shall
include any corporation that operates a railway in this state or that
operates club, parlor, dining, buffet or lounge cars upon the lines of any
such railway in this state. It shall allow the sale and public consumption
of alcoholic liquor in any club, parlor, dining, buffet or lounge car of a
passenger train operated in this state. It shall be subject to all the
privileges, obligations and penalties provided for in this chapter except
that it shall be issued to a corporation instead of to a person and if it is
revoked, another application may be made by the corporation for the
issuance of another railroad permit at any time after the expiration of
one year after such revocation.
[(l)] (j) For purposes of compliance with this section, "cafe" shall
include a facility designed, constructed and used for corporate and
private parties, sporting events, concerts, exhibitions, trade shows,
entertainment presentations, conventions, banquets, meetings, dances,
fund-raising events and similar functions, located on a tract of land of
not less than twenty acres containing an enclosed roofed pavilion
constructed to seat not less than two hundred fifty people, where hot
meals are regularly served in an adequate and sanitary dining area, such
meals having been prepared in an adequate and sanitary kitchen on the
premises, and employing an adequate number of employees who shall
serve only persons who are at such outing facility to attend an event,
function, private party or banquet.
[(m)] (k) For purposes of compliance with this section, "cafe" shall
include a room or building that is subject to the care, custody and control
of The University of Connecticut Board of Trustees, or (2) on land or in
a building situated on or abutting a golf course which is subject to the Senate Bill No. 263
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care, custody and control of an institution offering a program of higher
learning, as defined in section 10a-34, which has been accredited by the
Board of Regents for Higher Education or Office of Higher Education or
otherwise is authorized to award a degree pursuant to section 10a-34.
Sec. 3. (NEW) (Effective from passage) The holder of a cafe permit
issued for a club or nonprofit club prior to July 1, 2021, pursuant to
section 30-22a of the general statutes, as amended by this act, may
continue to hold such permit until such permit becomes due for renewal
or until such time as a replacement permit becomes available for such
permit holder to obtain under section 1 of this act.
Sec. 4. (Effective from passage) Notwithstanding the provisions of
subsection (f) of section 21a-4 of the general statutes, the Commissioner
of Consumer Protection shall refund to any prior holder of (1) a club
permit issued pursuant to section 30-23 of the general statutes, the
portion of the annual fee paid by such permittee in excess of three
hundred dollars to obtain a cafe permit under section 30-22a of the
general statutes, as amended by this act, and (2) a nonprofit club permit
issued pursuant to section 30-23 of the general statutes, the portion of
the annual fee paid by such permittee in excess of eight hundred fifteen
dollars to obtain a cafe permit under section 30-22a of the general
statutes, as amended by this act, if such excess amount was paid by such
permittee on or after July 1, 2020, until July 1, 2021.
Sec. 5. Section 30-23a of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
No person shall be construed to be a guest of a member of a club
within the intent of section [30-23] 1 of this act or of a golf country club
within the intent of section 30-24a until such person's name and address
has been entered in the guest book maintained for such purposes on the
club or golf country club premises, together with the signature of the
member and the date of introduction, provided neither the permittee Senate Bill No. 263
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nor any person employed to dispense alcoholic beverages on such
premises, during his working hours on such premises, shall enter such
person's name in such book. The requirement of this section (1) shall not
apply to a member of any nationally chartered veterans' service
organization when such member enters a club run by such organization
that is not such member's home club, but is affiliated with the same
organization, provided such member shall show a membership, travel
card or similar identification as a member of such organization upon
entry to such club, and (2) may be waived by the Department of
Consumer Protection on special occasions upon written application.
Sec. 6. Section 30-1 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
For the interpretation of this chapter and section 1 of this act, unless
the context indicates a different meaning:
(1) "Airline" means any United States airline carrier, holding a
certificate of public convenience and necessity from the Civil
Aeronautics Board under Section 401 of the Federal Aviation Act of
1958, as amended, or any foreign flag carrier, holding a permit under
Section 402 of such act.
(2) "Alcohol" means the product of distillation of any fermented
liquid, rectified either once or more often, whatever may be the origin
thereof, and includes synthetic ethyl alcohol which is considered
nonpotable.
(3) "Alcoholic liquor" or "alcoholic beverage" includes the four
varieties of liquor defined in subdivisions (2), (5), [(16)] (18) and [(17)]
(19) of this section (alcohol, beer, spirits and wine) and every liquid or
solid, patented or not, containing alcohol, spirits, wine or beer and
capable of being consumed by a human being for beverage purposes.
Any liquid or solid containing more than one of the four varieties so Senate Bill No. 263
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defined is considered as belonging to that variety which has the higher
percentage of alcohol, according to the following order: Alcohol, spirits,
wine and beer, except as provided in subdivision [(20)] (19) of this
section. The provisions of this chapter shall not apply to any liquid or
solid containing less than one-half of one per cent of alcohol by volume.
(4) "Backer" means, except in cases where the permittee is himself the
proprietor, the proprietor of any business or club, incorporated or
unincorporated, engaged in the manufacture or sale of alcoholic liquor,
in which business a permittee is associated, whether as employee, agent
or part owner.
(5) "Beer" means any beverage obtained by the alcoholic fermentation
of an infusion or decoction of barley, malt and hops in drinking water.
(6) (A) "Case price" means the price of a container of cardboard, wood
or other material, containing units of the same size and class of alcoholic
liquor, and (B) a case of alcoholic liquor, other than beer, cordials,
cocktails, wines and prepared mixed drinks, shall be in the number and
quantity, or fewer, with the permission of the Commissioner of
Consumer Protection, of units or bottles as follows: (i) Six one thousand
seven hundred fifty milliliter bottles; (ii) twelve one liter bottles; (iii)
twelve seven hundred fifty milliliter bottles; (iv) twenty-four three
hundred seventy-five milliliter bottles; (v) forty-eight two hundred
milliliter bottles; (vi) sixty one hundred milliliter bottles; or (vii) one
hundred twenty fifty milliliter bottles, except a case of fifty milliliter
bottles may be in a number and quantity as originally configured,
packaged and sold by the manufacturer or out-of-state shipper prior to
shipment, provided such number of bottles does not exceed two
hundred. The commissioner shall not authorize fewer numbers or
quantities of units or bottles as specified in this subdivision for any one
person or entity more than eight times in any calendar year. For the
purposes of this subdivision, "class" has the same meaning as defined in
27 CFR 5.22 for spirits, as defined in 27 CFR 4.21 for wine, and as defined Senate Bill No. 263
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in 27 CFR 7.24 for beer.
(7) "Charitable organization" means any nonprofit organization
organized for charitable purposes to which has been issued a ruling by
the Internal Revenue Service classifying it as an exempt organization
under Section 501(c)(3) of the Internal Revenue Code.
(8) "Club" has the same meaning as provided in section 1 of this act.
[(8)] (9) "Coliseum" means a coliseum, as defined in section 30-33a.
[(9)] (10) "Commission" means the Liquor Control Commission. [and
"department" means the Department of Consumer Protection.]
(11) "Department" means the Department of Consumer Protection.
[(10)] (12) "Mead" means fermented honey, with or without adjunct
ingredients or additions, regardless of alcohol content, regardless of
process, and regardless of being sparkling, carbonated or still.
[(11)] (13) "Minor" means any person under twenty-one years of age.
[(12)] (14) "Person" means natural person including partners but shall
not include corporations, limited liability companies, joint stock
companies or other associations of natural persons.
[(13)] (15) "Proprietor" [shall include] includes all owners of
businesses or clubs, included in subdivision (4) of this section, whether
such owners are individuals, partners, joint stock companies,
fiduciaries, stockholders of corporations or otherwise, but [shall] does
not include persons or corporations who are merely creditors of such
businesses or clubs, whether as note holders, bond holders, landlords or
franchisors.
[(14)] (16) "Dining room" means a room or rooms in premises
operating under a hotel permit, hotel beer permit, restaurant permit, Senate Bill No. 263
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restaurant permit for beer, where meals are customarily served, within
the room or rooms, to any member of the public who has means of
payment and proper demeanor.
[(15)] (17) "Restaurant" means a restaurant, as defined in section 30-
22.
[(16)] (18) "Spirits" means any beverage that contains alcohol
obtained by distillation mixed with drinkable water and other
substances in solution, including brandy, rum, whiskey and gin.
[(17)] (19) "Wine" means any alcoholic beverage obtained by the
fermentation of the natural sugar content of fruits, such as grapes or
apples or other agricultural products, containing sugar, including
fortified wines such as port, sherry and champagne.
[(18)] (20) "Nonprofit public television corporation" means a
nonprofit public television corporation, as defined in section 30-37d.
(21) "Nonprofit club" has the same meaning as provided in section 1
of this act.
Sec. 7. Subsection (b) of section 30-37f of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(b) Sections 30-9 to 30-13a, inclusive, section [30-23] 1 of this act,
subdivision (2) of subsection (b) of section 30-39, subsection (c) of section
30-39 and sections 30-44, 30-46, 30-48a and 30-91a shall not apply to any
class of airport permit.
Sec. 8. Section 30-38 of the general statutes is repealed and the
following is substituted in lieu thereof (Effective from passage):
Each permit granted under the provisions of section 30-16, 30-17, 30-
20, 30-20a, 30-21, 30-21b, 30-22, 30-22a, as amended by this act, [30-23] 1 Senate Bill No. 263
Public Act No. 21-10 13 of 13
of this act, 30-24a, 30-26, 30-28, 30-28a, 30-29, 30-33a, 30-33b, 30-36, 30-
37c or 30-37e, shall also, under the regulations of the Department of
Consumer Protection, allow the storage, on the premises and at one
other secure location registered with and approved by the department,
of sufficient quantities of alcoholic liquor respectively allowed to be sold
under such permits as may be necessary for the business conducted by
the respective permittees or their backers; but no such permit shall be
granted under the provisions of section 30-16 or 30-17 unless such
storage facilities are provided and the place of storage receives the
approval of the department as to suitability, and thereafter no place of
storage shall be changed nor any new place of storage utilized without
the approval of the department.
Approved May 13, 2021