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2 | 2 | | HOUSE DOCKET, NO. 1735 FILED ON: 1/18/2023 |
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3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 253 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Daniel Cahill |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to the sale of wines and malt beverages by food stores. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/18/2023 1 of 13 |
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16 | 16 | | HOUSE DOCKET, NO. 1735 FILED ON: 1/18/2023 |
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17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 253 |
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18 | 18 | | By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 253) of Daniel |
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19 | 19 | | Cahill relative to the sale of wines and malt beverages by food stores. Consumer Protection and |
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20 | 20 | | Professional Licensure. |
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21 | 21 | | The Commonwealth of Massachusetts |
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22 | 22 | | _______________ |
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23 | 23 | | In the One Hundred and Ninety-Third General Court |
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24 | 24 | | (2023-2024) |
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25 | 25 | | _______________ |
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26 | 26 | | An Act relative to the sale of wines and malt beverages by food stores. |
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27 | 27 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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28 | 28 | | of the same, as follows: |
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29 | 29 | | 1 SECTION 1. Chapter 138 of the General Laws, as appearing in the 2020 Official Edition, |
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30 | 30 | | 2is hereby amended by inserting, after section 15A, the following:- |
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31 | 31 | | 3 Section 15B. Grant of food store licenses for the sale of wines and malt beverages not to |
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32 | 32 | | 4be consumed on premises; operation of subject premises; regulation of packaging |
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33 | 33 | | 5 (a) Local licensing authorities that have been authorized to grant licenses under section |
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34 | 34 | | 615 of this chapter are hereby authorized to grant an additional class of licenses, known as a food |
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35 | 35 | | 7store license, for the sale of wines and malt beverages not to be consumed on the premises. |
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36 | 36 | | 8 (b) Except as otherwise provided, a food store license shall in every way be treated as a |
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37 | 37 | | 9license granted under section 15 of this chapter and shall be governed by all the statutes and |
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38 | 38 | | 10regulations applicable thereto. 2 of 13 |
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39 | 39 | | 11 (c) No application for the issuance, transfer, or annual renewal of a food store license |
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40 | 40 | | 12shall be granted under this section unless the applicant demonstrates that the subject premises: |
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41 | 41 | | 13 (1) is a permanent non-mobile establishment within the geographic jurisdiction of the |
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42 | 42 | | 14local licensing authority; |
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43 | 43 | | 15 (2) regularly stocks and sells to consumers various types of perishable or nonperishable |
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44 | 44 | | 16foods, not to be consumed on the premises, in at least three of the following four staple food |
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45 | 45 | | 17categories: (i) vegetable or fruit products; (ii) meat, poultry, or fish products; (iii) dairy products |
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46 | 46 | | 18or plant-based substitutes; and (iv) bread or cereal products; |
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47 | 47 | | 19 (3) has adopted an age verification and employee training policy satisfying the minimum |
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48 | 48 | | 20requirements of section 15C of this chapter; and |
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49 | 49 | | 21 (4) dedicates not more than 35% of the total interior selling area accessible to customers, |
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50 | 50 | | 22as measured in square feet of floor space on the horizontal plane, for the display of wines and |
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51 | 51 | | 23malt beverages to be sold under the authority of a food store license, provided that such |
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52 | 52 | | 24dedicated display area need not be contiguous but shall not in any case exceed 10,000 square feet |
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53 | 53 | | 25in the aggregate. |
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54 | 54 | | 26 (d) Notwithstanding section 33 of this chapter and section 5 of chapter 136, the sale of |
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55 | 55 | | 27wines and malt beverages shall be permitted under this section during those hours which the |
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56 | 56 | | 28subject premises may otherwise lawfully conduct business with consumers in that city or town, |
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57 | 57 | | 29provided that a local licensing authority may uniformly prohibit the sale of wines and malt |
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58 | 58 | | 30beverages under this section between the hours of 11:00 p.m. and 8:00 a.m., or may uniformly |
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59 | 59 | | 31require that such sales occurring between said hours shall be made as part of a transaction that 3 of 13 |
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60 | 60 | | 32includes one or more nondurable consumer goods not subject to regulation as alcoholic |
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61 | 61 | | 33beverages under this chapter. |
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62 | 62 | | 34 (e) The commission may uniformly prohibit the sale of some or all types of wines and |
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63 | 63 | | 35malt beverages under this section where any single container within the package holds more than |
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64 | 64 | | 36100 fluid ounces or less than 10 fluid ounces, provided that such sale of wines and malt |
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65 | 65 | | 37beverages shall otherwise be permitted where the package consists or is comprised of: |
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66 | 66 | | 38 (1) one or more manufacturer-sealed containers meeting the standards set forth at section |
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67 | 67 | | 395.47a of title 27 of the code of federal regulations; or |
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68 | 68 | | 40 (2) any refillable and re-sealable container commonly known as a growler, which |
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69 | 69 | | 41container may be refilled on the premises by a duly authorized and trained employee, provided |
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70 | 70 | | 42that such container once refilled shall be re-sealed by said employee and shall remain sealed |
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71 | 71 | | 43while on the premises. |
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72 | 72 | | 44 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such |
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73 | 73 | | 45regulations as are necessary to implement this section. |
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74 | 74 | | 46 Section 15C. Age verification and employee training policy; adoption and enforcement |
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75 | 75 | | 47by subject premises as condition of food store license |
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76 | 76 | | 48 (a) Every premises licensed under section 15B of this chapter shall adopt and enforce an |
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77 | 77 | | 49age verification and employee training policy for the prevention of the unlawful sale of alcoholic |
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78 | 78 | | 50beverages to persons under 21 years of age, which policy shall require the presentation of a |
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79 | 79 | | 51reliable form of identification by all customers for all purchases of alcoholic beverages, |
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80 | 80 | | 52regardless of the actual or apparent age of the customer. 4 of 13 |
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81 | 81 | | 53 (b) For purposes of this section, a reliable form of identification shall mean such forms of |
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82 | 82 | | 54identification for which the subject premises has implemented reasonable measures by which to |
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83 | 83 | | 55verify the validity and authenticity thereof with respect to the presenting customer, consistent |
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84 | 84 | | 56with the preceding subsection, and shall include without limitation those forms of identification |
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85 | 85 | | 57that may be reasonably relied upon for purposes of the second paragraph of section 34B of this |
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86 | 86 | | 58chapter, provided that the scope and effect of said paragraph shall not in any way be modified or |
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87 | 87 | | 59expanded by the requirements of this section. |
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88 | 88 | | 60 (c) Nothing in this section shall prohibit the subject premises from adopting and |
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89 | 89 | | 61enforcing additional age verification and employee training policies beyond the requirements of |
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90 | 90 | | 62this section, nor in any way limit the applicability of section 69 of this chapter, nor otherwise be |
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91 | 91 | | 63construed as affirmatively requiring the sale of an alcoholic beverage to any customer. |
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92 | 92 | | 64 (d) The commission shall, after notice and hearing under chapter 30A, promulgate such |
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93 | 93 | | 65regulations as are necessary to implement this section. |
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94 | 94 | | 66 Section 15D. Form of application for food store licenses; collection and disposition of |
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95 | 95 | | 67application fees |
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96 | 96 | | 68 (a) Applications for the issuance, transfer, or annual renewal of a food store license under |
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97 | 97 | | 69section 15B of this chapter shall be made to the local licensing authority upon standard forms |
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98 | 98 | | 70issued and maintained by the commission, provided that each such application granted by the |
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99 | 99 | | 71local licensing authority shall be subject to approval by the commission to ensure compliance |
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100 | 100 | | 72with this chapter before the license may be issued, transferred, or annually renewed. |
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101 | 101 | | 73 (b) At the discretion of the commission, and as reflected by the form of application issued |
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102 | 102 | | 74and maintained under the preceding subsection, an applicant may be required to demonstrate that 5 of 13 |
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103 | 103 | | 75the subject premises complies with subsection (c) of said section 15B through such manner of |
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104 | 104 | | 76commonly available documentary evidence as may be specified by the commission, provided |
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105 | 105 | | 77that, in the alternative to any such discretionary requirement, a rebuttable presumption of such |
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106 | 106 | | 78compliance sufficient for the submission of a facially complete application shall arise: |
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107 | 107 | | 79 (1) in the case of an application for the issuance or transfer of a food store license, if the |
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108 | 108 | | 80applicant submits: |
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109 | 109 | | 81 (i) with respect to paragraphs (c)(1) and (c)(4) of said section 15B, a sufficiently detailed |
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110 | 110 | | 82floorplan of the subject premises; |
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111 | 111 | | 83 (ii) with respect to paragraph (c)(2) of said section 15B, evidence that the subject |
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112 | 112 | | 84premises is an authorized “retail food store” under section 3(o)(1) of the federal Food and |
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113 | 113 | | 85Nutrition Act of 2008, as amended; and |
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114 | 114 | | 86 (iii) with respect to paragraph (c)(3) of said section 15B, a copy of all applicable written |
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115 | 115 | | 87policies then in effect; or |
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116 | 116 | | 88 (2) in the case of an application for the annual renewal of a food store license, if the |
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117 | 117 | | 89applicant submits under the pains and penalties of perjury an affirmation of such compliance. |
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118 | 118 | | 90 (c) A local licensing authority may, upon its grant of an application for the issuance, |
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119 | 119 | | 91transfer, or annual renewal of a food store license, require that the applicant pay to the local |
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120 | 120 | | 92licensing authority a fee in an amount to be determined by the local licensing authority, which |
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121 | 121 | | 93amount shall be uniformly applied and shall not exceed 110% of the equivalent local fee |
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122 | 122 | | 94imposed for licenses granted under section 15 of this chapter. 6 of 13 |
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123 | 123 | | 95 (d) Upon approval by the commission of an application for the issuance, transfer, or |
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124 | 124 | | 96annual renewal of a food store license, but before such approval may take effect, the applicant |
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125 | 125 | | 97shall be required to pay to the commission: |
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126 | 126 | | 98 (1) in the case of an application for the issuance or transfer of a food store license, a fee |
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127 | 127 | | 99in the amount of $5,000; or |
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128 | 128 | | 100 (2) in the case of an application for the annual renewal of a food store license, a fee in the |
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129 | 129 | | 101amount of $5,000 plus 0.25% of gross receipts from any wines and malt beverages sold at the |
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130 | 130 | | 102subject premises over the 12 full calendar months immediately preceding the expiration date of |
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131 | 131 | | 103the current license, provided that the total amount due under this paragraph shall not exceed |
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132 | 132 | | 104$10,000 per annual renewal. |
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133 | 133 | | 105 (e) For purposes of section 27 of this chapter, fees payable: |
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134 | 134 | | 106 (1) to a local licensing authority under subsection (c) of this section shall be treated as |
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135 | 135 | | 107fees for a license authorized to be granted by the local licensing authority; and |
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136 | 136 | | 108 (2) to the commission under subsection (d) of this section, except as provided by section |
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137 | 137 | | 1092JJJJJ of chapter 29, shall be treated as fees for a license authorized to be granted by the |
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138 | 138 | | 110commission. |
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139 | 139 | | 111 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such |
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140 | 140 | | 112regulations as are necessary to implement this section. |
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141 | 141 | | 113 Section 15E. Number of food store licenses; holding or controlling multiple licenses |
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142 | 142 | | 114 (a) Food store licenses authorized to be granted in a city or town under section 15B of |
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143 | 143 | | 115this chapter shall be in addition to those licenses otherwise authorized to be granted under 7 of 13 |
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144 | 144 | | 116sections 15 and 17 of this chapter, and shall not be counted as a license for purposes of |
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145 | 145 | | 117determining the number of licenses available to be issued under said sections 15 and 17. |
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146 | 146 | | 118 (b) The number of food store licenses that may be issued shall be determined at the |
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147 | 147 | | 119discretion of each local licensing authority and may be revised by notification to the commission |
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148 | 148 | | 120not more frequently than once per calendar quarter, provided that the number of food store |
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149 | 149 | | 121licenses: |
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150 | 150 | | 122 (1) newly issued, in any one year, shall not be more than twice the total number of |
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151 | 151 | | 123licenses authorized to be granted in that city or town under sections 15 and 17 of this chapter, |
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152 | 152 | | 124rounded down to the nearest whole number; and |
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153 | 153 | | 125 (2) issued or available to be issued, overall, shall not be less than half the total number of |
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154 | 154 | | 126licenses authorized to be granted in that city or town under sections 15 and 17 of this chapter, |
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155 | 155 | | 127rounded up to the nearest whole number. |
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156 | 156 | | 128 (c) A local licensing authority shall not deny an application for the issuance, transfer, or |
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157 | 157 | | 129annual renewal of a food store license on the basis that the applicant holds or controls multiple |
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158 | 158 | | 130licenses granted under sections 15 or 15B of this chapter, provided that no application for the |
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159 | 159 | | 131issuance or transfer of a food store license shall be granted if as a result the applicant would hold |
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160 | 160 | | 132or control more than 15 food store licenses in any one county of the commonwealth. |
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161 | 161 | | 133 (d) The commission shall, after notice and hearing under chapter 30A, promulgate such |
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162 | 162 | | 134regulations as are necessary to implement this section. |
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163 | 163 | | 135 Section 15F. Effect of food store licenses on proximate competing premises 8 of 13 |
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164 | 164 | | 136 (a) Upon the issuance or transfer of a food store license to a premises not previously in |
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165 | 165 | | 137the business of selling alcoholic beverages to consumers, the operator of any proximate |
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166 | 166 | | 138competing premises lawfully conducting business at the time of such issuance or transfer may |
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167 | 167 | | 139apply for a small business support grant from the fund established by section 2JJJJJ of chapter 29 |
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168 | 168 | | 140and administered by the commission in accordance with this section. |
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169 | 169 | | 141 (b) For purposes of this section, a proximate competing premises means a permanent |
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170 | 170 | | 142non-mobile establishment then currently licensed under section 15 of this chapter, where said |
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171 | 171 | | 143license is held or controlled by an employer not required to offer earned paid sick time under |
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172 | 172 | | 144section 148C of chapter 149, provided that said establishment is located: |
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173 | 173 | | 145 (1) within 2,500 feet of the premises for which the food store license has been issued or |
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174 | 174 | | 146transferred, in the case of a city; or |
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175 | 175 | | 147 (2) within 5,000 feet of the premises for which the food store license has been issued or |
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176 | 176 | | 148transferred, in the case of a town. |
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177 | 177 | | 149 (c) Applicants deemed to be a proximate competing premises by the commission shall be |
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178 | 178 | | 150eligible to receive not more than ten consecutive annual payments in the nature of a small |
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179 | 179 | | 151business support grant, provided that each such payment shall be in an amount determined by the |
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180 | 180 | | 152commission: |
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181 | 181 | | 153 (1) by dividing the balance of the fund by the total number of food store licenses serving |
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182 | 182 | | 154as the basis for at least one grant application by a proximate competing premises; and 9 of 13 |
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183 | 183 | | 155 (2) by further dividing the quotient from the preceding paragraph, for each such food |
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184 | 184 | | 156store license, by the total number of proximate competing premises that applied for a grant with |
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185 | 185 | | 157respect to that particular food store license. |
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186 | 186 | | 158 (d) Nothing in this section shall prohibit one qualified applicant from receiving more than |
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187 | 187 | | 159one small business support grant from the fund, where said applicant meets the definition of a |
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188 | 188 | | 160proximate competing premises with respect to more than one food store license. |
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189 | 189 | | 161 (e) A local licensing authority shall not deny an application for the issuance, transfer, or |
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190 | 190 | | 162annual renewal of a food store license on the basis of limiting competition with or proximity to |
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191 | 191 | | 163any other premises licensed under this chapter, nor on the basis that the subject premises may |
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192 | 192 | | 164have been eligible for a different class of license granted under this chapter, provided that |
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193 | 193 | | 165nothing in this subsection shall require a local licensing authority to grant an application for the |
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194 | 194 | | 166issuance or transfer of a food store license where the sale of wines and malt beverages would be |
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195 | 195 | | 167inconsistent with a valid municipal zoning law enacted under chapter 40A and effective at the |
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196 | 196 | | 168time such application was made, provided further that such application shall not be precluded |
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197 | 197 | | 169where the subject premises obtains a variance or exemption from the municipal zoning law in |
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198 | 198 | | 170question, including for the continuance of a preexisting nonconforming use. |
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199 | 199 | | 171 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such |
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200 | 200 | | 172regulations as are necessary to implement this section. |
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201 | 201 | | 173 SECTION 2. Section 25A of said chapter 138 is hereby amended by inserting, after the |
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202 | 202 | | 174final paragraph, the following:- 10 of 13 |
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203 | 203 | | 175 (c) Notwithstanding the preceding subsections, and for the purpose of attaining a quantity |
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204 | 204 | | 176discount offered by a wholesaler licensed under section 18, any person or entity that holds or |
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205 | 205 | | 177controls one or more licenses issued under sections 15 and 15B may either: |
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206 | 206 | | 178 (1) enter into a cooperative agreement with one or more other persons or entities, not to |
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207 | 207 | | 179exceed 15 parties in total, each holding or controlling not more than 15 licenses issued under said |
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208 | 208 | | 180sections 15 and 15B, to make joint purchases of alcoholic beverages in larger quantities than |
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209 | 209 | | 181might otherwise be purchased, provided that nothing in this paragraph shall authorize the |
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210 | 210 | | 182distribution of alcoholic beverages to anyone except the parties to any such agreement according |
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211 | 211 | | 183to their respective share of the joint purchase as attributed to each licensed premises; or |
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212 | 212 | | 184 (2) make a combined purchase of alcoholic beverages for two or more of its own licenses |
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213 | 213 | | 185issued under said sections 15 and 15B, provided that the number of licenses for which any one |
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214 | 214 | | 186combined purchase may be made under this paragraph shall not exceed the aggregate number of |
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215 | 215 | | 187licenses for which a joint purchase may be made through a cooperative agreement under the |
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216 | 216 | | 188preceding paragraph. |
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217 | 217 | | 189 SECTION 3. Section 25A of said chapter 138 is hereby further amended by striking out |
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218 | 218 | | 190the words “No licensee authorized under this chapter to sell alcoholic beverages to wholesalers |
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219 | 219 | | 191or retailers shall-- (a) Discriminate” and inserting in place thereof the following:- |
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220 | 220 | | 192 (a) No licensee authorized under this chapter to sell alcoholic beverages to wholesalers or |
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221 | 221 | | 193retailers shall discriminate |
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222 | 222 | | 194 SECTION 4. Section 25A of said chapter 138 is hereby further amended by striking out |
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223 | 223 | | 195the words “; All price lists” and inserting in place thereof the following:- 11 of 13 |
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224 | 224 | | 196 . (b) All price lists |
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225 | 225 | | 197 SECTION 5. Section 15C of said chapter 138, as enacted by section 1 of this Act, is |
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226 | 226 | | 198hereby amended by striking out subsection (a) and inserting in place thereof the following:- |
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227 | 227 | | 199 (a) Every establishment licensed under section 15B of this chapter shall adopt and |
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228 | 228 | | 200enforce an age verification and employee training policy for the prevention of the unlawful sale |
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229 | 229 | | 201of alcoholic beverages to persons under 21 years of age, which policy shall require: |
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230 | 230 | | 202 (1) the presentation of a reliable form of identification by all customers for all purchases |
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231 | 231 | | 203of alcoholic beverages, regardless of the actual or apparent age of the customer; and |
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232 | 232 | | 204 (2) the verification of such identification by means of an optical barcode scanner or |
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233 | 233 | | 205magnetic card reader, or such other comparable technology as may be approved by the |
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234 | 234 | | 206commission, provided that the commission shall establish alternative measures of verification for |
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235 | 235 | | 207those forms of identification, if any, upon which a licensee may reasonably rely for purposes of |
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236 | 236 | | 208the second paragraph of section 34B but which are not capable of verification by technological |
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237 | 237 | | 209means that are both commercially available and practically applied for the intended use. |
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238 | 238 | | 210 SECTION 6. Section 34B of said chapter 138 is hereby amended by inserting, in the |
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239 | 239 | | 211second paragraph, after the words “military identification card” the following:- |
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240 | 240 | | 212 or an out of state license that has been validated by the means described by paragraph |
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241 | 241 | | 213(a)(2) of section 15C |
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242 | 242 | | 214 SECTION 7. Section 34B of said chapter 138 is hereby further amended by striking out, |
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243 | 243 | | 215in the second paragraph, the words “a liquor purchase identification card, or an identification 12 of 13 |
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244 | 244 | | 216card issued under section 8E of chapter 90, or motor vehicle license issued pursuant to said |
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245 | 245 | | 217section eight” and inserting in place thereof the following:- |
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246 | 246 | | 218 particular forms of identification named in this paragraph |
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247 | 247 | | 219 SECTION 8. Section 15E of said chapter 138, as enacted by section 1 of this Act, is |
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248 | 248 | | 220hereby amended by striking out, in subsection (c), the word “county” and inserting in place |
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249 | 249 | | 221thereof the following:- city or town |
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250 | 250 | | 222 SECTION 9. Section 20 of said chapter 138, as so appearing, is hereby amended by |
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251 | 251 | | 223inserting, after the final paragraph, the following:- |
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252 | 252 | | 224 A person or entity making a combined purchase of alcoholic beverages under paragraph |
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253 | 253 | | 225(c)(2) of section 25A is hereby permitted under this section to store such alcoholic beverages at a |
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254 | 254 | | 226licensed and bonded warehouse, provided that nothing in this paragraph shall authorize the resale |
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255 | 255 | | 227of such alcoholic beverages other than at retail by the licensed establishment to a consumer in the |
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256 | 256 | | 228normal course of business. |
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257 | 257 | | 229 SECTION 10. Chapter 29 of the General Laws, as so appearing, is hereby amended by |
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258 | 258 | | 230inserting, before section 3, the following:- |
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259 | 259 | | 231 Section 2JJJJJ. There shall be established and set upon the books of the commonwealth a |
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260 | 260 | | 232separate fund, which shall consist of all fees collected by the alcoholic beverages control |
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261 | 261 | | 233commission under section 15D of chapter 138. Amounts credited to the fund shall be available, |
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262 | 262 | | 234without further appropriation, to the commission for the payment of small business support |
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263 | 263 | | 235grants as provided by section 15F of said chapter 138. 13 of 13 |
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264 | 264 | | 236 SECTION 11. For the avoidance of doubt and without limitation to the general provisions |
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265 | 265 | | 237of section 15E of chapter 138 of the General Laws, as enacted by this Act, a food store license |
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266 | 266 | | 238shall not be subject to the second sentence of section 15 of chapter 138, and shall not be |
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267 | 267 | | 239considered a license issued under said section 15 for purposes of determining the number of |
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268 | 268 | | 240marijuana retailers that may be approved in any city or town under section 3 of chapter 94G. |
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269 | 269 | | 241 SECTION 12. The commission shall maintain a ratio of at least one investigator per 250 |
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270 | 270 | | 242outstanding licenses issued under said chapter 138 by a local licensing authority. |
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271 | 271 | | 243 SECTION 13. The commission shall establish a working group consisting of designated |
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272 | 272 | | 244representatives of each of the three tiers of the beverage alcohol marketplace, respectively, |
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273 | 273 | | 245including, for the retail tier, a representative of food stores and a representative of package |
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274 | 274 | | 246stores; of consumer advocates; of local licensing authorities; of the governor; of the attorney |
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275 | 275 | | 247general; and of the treasurer. The working group shall study and make findings as to the types |
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276 | 276 | | 248and varieties of packaged alcoholic beverages stocked and sold by the various classes of off- |
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277 | 277 | | 249premises licensees within the commonwealth, for the purpose of recommending the maintenance |
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278 | 278 | | 250or modification of public policies to encourage market efficiency and discourage market |
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279 | 279 | | 251dominance in any tier of the beverage alcohol marketplace. The working group shall be |
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280 | 280 | | 252convened within 6 months from the enactment of this Act, and shall issue a report of its findings |
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281 | 281 | | 253and recommendations to the commission within 18 months thereafter. |
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282 | 282 | | 254 SECTION 14. Sections 5 through 8 of this Act, inclusive, shall take effect on |
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283 | 283 | | 255 January 1, 2024. |
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