This bill establishes a new "Veterans Service Organization License" that permits certain veteran organizations, such as the American Legion and Veterans of Foreign Wars, to sell alcoholic beverages for immediate consumption on their premises. The license is limited to bona fide members of the organization, their guests, affiliated members of other veteran organizations, and members of auxiliary organizations. Importantly, affiliated and auxiliary members are prohibited from hosting private events or inviting guests unless they are bona fide members. A bona fide member can invite up to nine guests and is allowed to host private events, but they must provide all alcoholic beverages purchased off the premises for such events.

The bill also sets the licensing fee between $63 and $188, as determined by the local governing body, and clarifies that existing restrictions on the number of retail consumption licenses in a municipality do not apply to this new veterans service organization license. Additionally, it prohibits license holders from selling alcoholic beverages or charging fees for their consumption during private events, although they may sell food and non-alcoholic beverages. These provisions aim to enhance the rights of veteran organizations in serving alcohol while ensuring responsible consumption and adherence to membership policies.