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House approves narrow exemption for fraternal and religious clubs amid debate over discrimination
Summary
The House passed substitute SB 72, which exempts certain fraternal, sororal and religious organizations from being classified as business enterprises regulated by the state, in a close vote (39-35) after a heated floor debate about discrimination and liquor licensing.
Representative Bishop introduced substitute Senate Bill 72, a narrowly written measure intended to exempt fraternal, sororal, charitable and religious organizations from classification as business enterprises regulated by the state. Bishop said the bill preserves "free association" for groups that carry out philanthropic and civic activities and argued the measure protects longstanding civic institutions such as Elks lodges.
Opponents on the floor contested that the exemption would sanction discriminatory membership practices and could create legal and regulatory problems tied to the state's control over liquor licenses. Representative Shepherd called the proposal "patently offensive," saying, "To suggest that we need this law in order to protect sororities ... is patently offensive." Representative Carlson warned the measure could open "a whole new can of worms" because state liquor licenses are limited by population and granting private liquor privileges to exclusionary clubs could spur litigation.
Supporters emphasized local civic contributions by fraternal organizations and urged a narrow reading of the bill's intent. The House recorded multiple conflict-of-interest disclosures from members with affiliations to fraternal groups. After suspension-of-rules votes and extended debate, the House approved SB 72 by a recorded vote of 39 in favor and 35 opposed. The bill will proceed in the legislative process per the House journal.
Speakers quoted here are drawn from the House floor transcript.
