Membership Up to Clubs, Governor Says

Gov. George Deukmejian said Wednesday that private clubs accused of engaging in discriminatory practices should be allowed to decide for themselves who may join.

“These are decisions that are up to the people who have organized these clubs,” Deukmejian said, but added that it “wouldn’t be a bad idea” for such groups to begin admitting women.

The Republican governor also questioned the legality of a rule adopted Tuesday by the state Franchise Tax Board aimed at cracking down on discriminatory private clubs by prohibiting their members from claiming club expenditures as business deductions.

“I’m not even sure that legally the Franchise Tax Board can take the action it took,” he said.

The Franchise Tax Board rule could apply to dozens of clubs deemed to discriminate on the base of race, sex or religion. Clubs under investigation include the Jonathan Club and the California Club in Los Angeles. Before the regulation takes effect Jan. 1, the tax board must allow 45 days for public comment and ratify it again. Then the rule must be reviewed by the state Office of Administrative Law, which has the power to reject it. Deukmejian said his appointee to the three-member tax board, Finance Director Jesse Huff, received legal opinions questioning the authority of the board to adopt the regulation. Huff abstained from voting on the regulation.