(b) (1) Subject to paragraphs (2) and (3) of this subsection, the license authorizes the license holder to sell beer at retail to members of a club and their guests at the place described in the license for on-premises consumption.

(2) A license may be issued to a local unit of a nationwide nonprofit organization or club that:

(i) is composed solely of members who served in the armed forces of the United States in a war in which the United States has engaged;

(ii) has a charter from a national veterans’ organization before applying for the license; and

(iii) operates only for the use of its members and their guests, when the guests are accompanied by members.

(3) A license may be issued to a yacht club, golf club, fraternal club or order, country club, or social or recreational club that:

(i) is not operated for profit;

(ii) for 1 year immediately preceding the year for which the license is issued, has had at least 50 adult members who paid annual dues of at least $25;

(iii) owns or operates a clubhouse that has, or meeting rooms that have, facilities for preparing and serving food on the premises;

(iv) is principally used for members and their guests, when the guests are accompanied by members; and

(v) is not directly or indirectly owned or operated as a public business.

(c) The annual license fee is $50.