Untitled California Attorney General Opinion

California Attorney General Reports·Decided April 7, 1987·No. 85-905·Published

Opinion

TO BE PUBLISHED IN THE OFFICIAL REPORTS

OFFICE OF THE ATTORNEY GENERAL

State of California

JOHN K. VAN DE KAMP

Attorney General

_________________________

:

OPINION : No. 85-905

:

of : APRIL 7, 1987 :

JOHN K. VAN DE KAMP :

Attorney General :

:

ANTHONY S. DA VIGO :

Deputy Attorney General :

:

________________________________________________________________________

THE HONORABLE HERSCHEL ROSENTHAL, MEMBER OF THE CALIFORNIA SENATE, has requested an opinion on the following question:

Is the Department of Alcoholic Beverage Control authorized to revoke the license of a private club on the basis of its discriminatory membership practices?

CONCLUSION

The Department of Alcoholic Beverage Control is authorized under the California Constitution to revoke a private club license on the basis of discriminatory membership practices upon an independent determination for good cause that the continuance of such license would be contrary to public welfare or morals.

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ANALYSIS

The present inquiry is whether the Department of Alcoholic Beverage Control ("department", post) is authorized to revoke the license of a private club on the basis of its discriminatory membership practices. It is established that the issuance of such a license does not in itself involve the state in such discriminatory practices as to constitute a violation of the Equal Protection Clause of the Fourteenth Amendment of the United States Constitution. (Moose Lodge No. 107 v. Irvis (1972) 407 U.S. 163, 171- 177.) Similarly, article I, section 7, subdivision (a) of the California Constitution applies to state, not private action. (Garfinkle v. Superior Court (1978) 21 Cal.3d 268, 281-282; and see Gay Law Students Assn. v. Pacific Tel. & Tel. Co. (1979) 24 Cal.3d 458, 468- 469.) While the California Supreme Court's interpretation of the reach of the safeguards of the state equal protection clause is not bound by the federal decisions analyzing the state action requirement of the Fifth and Fourteenth Amendments, the latter decisions will be carefully considered insofar as they are persuasive. (Id., at p. 469.) No state appellate court has held that the issuance of a license per se constitutes such a significant involvement with private conduct as to fall within the state constitutional proscription. Hence, we reiterate our prior opinion that revocation of such a license is not compelled under the state or federal constitutions. (Opn. No. IL 75-70 (1974) unpub.)

There can be little doubt, however, that the state Legislature may provide for the denial of a license to sell alcoholic beverages to a private club which engages in discriminatory membership practices. (B.P.O.E. Lodge No. 2043 of Brunswick v. Ingraham (Supr. Ct. Maine, 1972) 297 A.2d 607, app. dism. 410 U.S. 903.) The sole question now presented is whether the state has so authorized the department. We initiate the examination with article XX, section 22, of the California Constitution:

". . . . . . . . . . . . . . . . . . . . . . .

"All alcoholic beverages may be bought, sold, served, consumed and otherwise disposed of in premises which shall be licensed as provided by the Legislature. In providing for the licensing of premises, the Legislature may provide for the issuance of, among other licenses, licenses for the following types of premises where the alcoholic beverages specified in the licenses may be sold and served for consumption upon the premises:

". . . . . . . . . . . . . . . . . . . . . . .

"(d) Under such conditions as the Legislature may impose, for . . . bona fide clubs after such clubs have been lawfully operated for not less than one year.

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". . . . . . . . . . . . . . . . . . . . . . .

"The Department of Alcoholic Beverage Control shall have the exclusive power, except as herein provided and in accordance with laws enacted by the Legislature, to license the manufacture, importation and sale of alcoholic beverages in this State, and to collect license fees or occupation taxes on account thereof. The department shall have the power, in its discretion, to deny, suspend or revoke any specific alcoholic beverage license if it shall determine for good cause that the granting or continuance of such license would be contrary to public welfare or morals, or that a person seeking or holding a license has violated any law prohibiting conduct involving moral turpitude.

". . . . . . . . . . . . . . . . . . . . . ." (Emphasis added.)

Under subdivision (d), the Legislature may provide for the issuance of a license to "bona fide" clubs under such conditions as it may impose. Further, the department has the exclusive power in accordance with the laws enacted by the Legislature to license the sale of alcoholic beverages.

We first examine those legislative enactments which pertain to discriminatory practices of licensees including alcoholic beverage licensees. The issuance of a license to clubs with discriminatory membership practices is a matter of special legislative cognizance. Section 125.61 provides generally:

"Every person who holds a license under the provisions of this code is subject to disciplinary action under the disciplinary provisions of this code applicable to such person if, because of the applicant's race, color, sex, religion, ancestry, physical handicap, marital status, or national origin, he or she refuses to perform the licensed activity or aids or incites the refusal to perform such licensed activity by another licensee, or if, because of the applicant's race, color, sex, religion, ancestry, physical handicap, marital status, or national origin, he or she makes any discrimination, or restriction in the performance of the licensed activity. Nothing in this section shall be interpreted to apply to discrimination by employers with regard to employees or prospective employees, nor shall this section authorize action against any club license issued pursuant to Article 4 (commencing with Section 23425) of Chapter 3 of Division 9 because of discriminatory membership policy."

1 Undesignated section references herein are to the Business and Professions Code.

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". . . . . . . . . . . . . . . . . . . . . . .

"'Applicant,' as used in this section means a person applying for licensed services provided by a person licensed under this code.

". . . . . . . . . . . . . . . . . . . . . ." (Emphases added.)

Clearly, violation of this section results whether the refusal "to perform the licensed activity" on an equal basis occurs at the point of or following admission to the premises (cf. Easebe Enterprises, Inc. v. Alc. Bev. Cont. App. Bd. (1983) 141 Cal.App.3d 981), and provides a basis for license revocation (id., at p. 986; 60 Ops.Cal.Atty.Gen. 394 (1977)). Thus, where club membership is restricted on the basis of race, color, sex, religion, ancestry, physical handicap, marital status or national origin, and the sale of alcoholic beverages is restricted to members and their guests, the club license is subject to disciplinary action under section 125.6 unless the club is licensed under article 4.

Of the numerous types or categories of licenses issued by the department, many but not all of which are listed in section 23320, five pertain to clubs:

1) section 23320(30)(a) - certain nonprofit social or athletic clubs

2) section 23320.1 - certain other social or athletic clubs

3) section 23320(30)(c) - certain veterans organizations

4) section 24042 - public and private bar on same premises

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