Sec. 7. (a) As used in this title and to be eligible to receive the appropriate permit, "fraternal club" means an association or corporation whose membership is comprised of or forms:
(1) a lodge or local chapter or corresponding unit of a fraternal order or of another association of a like nature; or
(2) a body whose membership is comprised of persons who have served in the armed forces of the United States;
and which has been in continual existence on a national scale for more than five (5) years prior to the date the application is filed.
(b) Fraternal clubs and labor organizations need not meet the requirements of section 1 of this chapter, but are considered clubs for all other purposes of this title.