Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H253 Compare Versions

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22 HOUSE DOCKET, NO. 1735 FILED ON: 1/18/2023
33 HOUSE . . . . . . . . . . . . . . . No. 253
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Daniel Cahill
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to the sale of wines and malt beverages by food stores.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Daniel Cahill10th Essex1/18/2023 1 of 13
1616 HOUSE DOCKET, NO. 1735 FILED ON: 1/18/2023
1717 HOUSE . . . . . . . . . . . . . . . No. 253
1818 By Representative Cahill of Lynn, a petition (accompanied by bill, House, No. 253) of Daniel
1919 Cahill relative to the sale of wines and malt beverages by food stores. Consumer Protection and
2020 Professional Licensure.
2121 The Commonwealth of Massachusetts
2222 _______________
2323 In the One Hundred and Ninety-Third General Court
2424 (2023-2024)
2525 _______________
2626 An Act relative to the sale of wines and malt beverages by food stores.
2727 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2828 of the same, as follows:
2929 1 SECTION 1. Chapter 138 of the General Laws, as appearing in the 2020 Official Edition,
3030 2is hereby amended by inserting, after section 15A, the following:-
3131 3 Section 15B. Grant of food store licenses for the sale of wines and malt beverages not to
3232 4be consumed on premises; operation of subject premises; regulation of packaging
3333 5 (a) Local licensing authorities that have been authorized to grant licenses under section
3434 615 of this chapter are hereby authorized to grant an additional class of licenses, known as a food
3535 7store license, for the sale of wines and malt beverages not to be consumed on the premises.
3636 8 (b) Except as otherwise provided, a food store license shall in every way be treated as a
3737 9license granted under section 15 of this chapter and shall be governed by all the statutes and
3838 10regulations applicable thereto. 2 of 13
3939 11 (c) No application for the issuance, transfer, or annual renewal of a food store license
4040 12shall be granted under this section unless the applicant demonstrates that the subject premises:
4141 13 (1) is a permanent non-mobile establishment within the geographic jurisdiction of the
4242 14local licensing authority;
4343 15 (2) regularly stocks and sells to consumers various types of perishable or nonperishable
4444 16foods, not to be consumed on the premises, in at least three of the following four staple food
4545 17categories: (i) vegetable or fruit products; (ii) meat, poultry, or fish products; (iii) dairy products
4646 18or plant-based substitutes; and (iv) bread or cereal products;
4747 19 (3) has adopted an age verification and employee training policy satisfying the minimum
4848 20requirements of section 15C of this chapter; and
4949 21 (4) dedicates not more than 35% of the total interior selling area accessible to customers,
5050 22as measured in square feet of floor space on the horizontal plane, for the display of wines and
5151 23malt beverages to be sold under the authority of a food store license, provided that such
5252 24dedicated display area need not be contiguous but shall not in any case exceed 10,000 square feet
5353 25in the aggregate.
5454 26 (d) Notwithstanding section 33 of this chapter and section 5 of chapter 136, the sale of
5555 27wines and malt beverages shall be permitted under this section during those hours which the
5656 28subject premises may otherwise lawfully conduct business with consumers in that city or town,
5757 29provided that a local licensing authority may uniformly prohibit the sale of wines and malt
5858 30beverages under this section between the hours of 11:00 p.m. and 8:00 a.m., or may uniformly
5959 31require that such sales occurring between said hours shall be made as part of a transaction that 3 of 13
6060 32includes one or more nondurable consumer goods not subject to regulation as alcoholic
6161 33beverages under this chapter.
6262 34 (e) The commission may uniformly prohibit the sale of some or all types of wines and
6363 35malt beverages under this section where any single container within the package holds more than
6464 36100 fluid ounces or less than 10 fluid ounces, provided that such sale of wines and malt
6565 37beverages shall otherwise be permitted where the package consists or is comprised of:
6666 38 (1) one or more manufacturer-sealed containers meeting the standards set forth at section
6767 395.47a of title 27 of the code of federal regulations; or
6868 40 (2) any refillable and re-sealable container commonly known as a growler, which
6969 41container may be refilled on the premises by a duly authorized and trained employee, provided
7070 42that such container once refilled shall be re-sealed by said employee and shall remain sealed
7171 43while on the premises.
7272 44 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such
7373 45regulations as are necessary to implement this section.
7474 46 Section 15C. Age verification and employee training policy; adoption and enforcement
7575 47by subject premises as condition of food store license
7676 48 (a) Every premises licensed under section 15B of this chapter shall adopt and enforce an
7777 49age verification and employee training policy for the prevention of the unlawful sale of alcoholic
7878 50beverages to persons under 21 years of age, which policy shall require the presentation of a
7979 51reliable form of identification by all customers for all purchases of alcoholic beverages,
8080 52regardless of the actual or apparent age of the customer. 4 of 13
8181 53 (b) For purposes of this section, a reliable form of identification shall mean such forms of
8282 54identification for which the subject premises has implemented reasonable measures by which to
8383 55verify the validity and authenticity thereof with respect to the presenting customer, consistent
8484 56with the preceding subsection, and shall include without limitation those forms of identification
8585 57that may be reasonably relied upon for purposes of the second paragraph of section 34B of this
8686 58chapter, provided that the scope and effect of said paragraph shall not in any way be modified or
8787 59expanded by the requirements of this section.
8888 60 (c) Nothing in this section shall prohibit the subject premises from adopting and
8989 61enforcing additional age verification and employee training policies beyond the requirements of
9090 62this section, nor in any way limit the applicability of section 69 of this chapter, nor otherwise be
9191 63construed as affirmatively requiring the sale of an alcoholic beverage to any customer.
9292 64 (d) The commission shall, after notice and hearing under chapter 30A, promulgate such
9393 65regulations as are necessary to implement this section.
9494 66 Section 15D. Form of application for food store licenses; collection and disposition of
9595 67application fees
9696 68 (a) Applications for the issuance, transfer, or annual renewal of a food store license under
9797 69section 15B of this chapter shall be made to the local licensing authority upon standard forms
9898 70issued and maintained by the commission, provided that each such application granted by the
9999 71local licensing authority shall be subject to approval by the commission to ensure compliance
100100 72with this chapter before the license may be issued, transferred, or annually renewed.
101101 73 (b) At the discretion of the commission, and as reflected by the form of application issued
102102 74and maintained under the preceding subsection, an applicant may be required to demonstrate that 5 of 13
103103 75the subject premises complies with subsection (c) of said section 15B through such manner of
104104 76commonly available documentary evidence as may be specified by the commission, provided
105105 77that, in the alternative to any such discretionary requirement, a rebuttable presumption of such
106106 78compliance sufficient for the submission of a facially complete application shall arise:
107107 79 (1) in the case of an application for the issuance or transfer of a food store license, if the
108108 80applicant submits:
109109 81 (i) with respect to paragraphs (c)(1) and (c)(4) of said section 15B, a sufficiently detailed
110110 82floorplan of the subject premises;
111111 83 (ii) with respect to paragraph (c)(2) of said section 15B, evidence that the subject
112112 84premises is an authorized “retail food store” under section 3(o)(1) of the federal Food and
113113 85Nutrition Act of 2008, as amended; and
114114 86 (iii) with respect to paragraph (c)(3) of said section 15B, a copy of all applicable written
115115 87policies then in effect; or
116116 88 (2) in the case of an application for the annual renewal of a food store license, if the
117117 89applicant submits under the pains and penalties of perjury an affirmation of such compliance.
118118 90 (c) A local licensing authority may, upon its grant of an application for the issuance,
119119 91transfer, or annual renewal of a food store license, require that the applicant pay to the local
120120 92licensing authority a fee in an amount to be determined by the local licensing authority, which
121121 93amount shall be uniformly applied and shall not exceed 110% of the equivalent local fee
122122 94imposed for licenses granted under section 15 of this chapter. 6 of 13
123123 95 (d) Upon approval by the commission of an application for the issuance, transfer, or
124124 96annual renewal of a food store license, but before such approval may take effect, the applicant
125125 97shall be required to pay to the commission:
126126 98 (1) in the case of an application for the issuance or transfer of a food store license, a fee
127127 99in the amount of $5,000; or
128128 100 (2) in the case of an application for the annual renewal of a food store license, a fee in the
129129 101amount of $5,000 plus 0.25% of gross receipts from any wines and malt beverages sold at the
130130 102subject premises over the 12 full calendar months immediately preceding the expiration date of
131131 103the current license, provided that the total amount due under this paragraph shall not exceed
132132 104$10,000 per annual renewal.
133133 105 (e) For purposes of section 27 of this chapter, fees payable:
134134 106 (1) to a local licensing authority under subsection (c) of this section shall be treated as
135135 107fees for a license authorized to be granted by the local licensing authority; and
136136 108 (2) to the commission under subsection (d) of this section, except as provided by section
137137 1092JJJJJ of chapter 29, shall be treated as fees for a license authorized to be granted by the
138138 110commission.
139139 111 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such
140140 112regulations as are necessary to implement this section.
141141 113 Section 15E. Number of food store licenses; holding or controlling multiple licenses
142142 114 (a) Food store licenses authorized to be granted in a city or town under section 15B of
143143 115this chapter shall be in addition to those licenses otherwise authorized to be granted under 7 of 13
144144 116sections 15 and 17 of this chapter, and shall not be counted as a license for purposes of
145145 117determining the number of licenses available to be issued under said sections 15 and 17.
146146 118 (b) The number of food store licenses that may be issued shall be determined at the
147147 119discretion of each local licensing authority and may be revised by notification to the commission
148148 120not more frequently than once per calendar quarter, provided that the number of food store
149149 121licenses:
150150 122 (1) newly issued, in any one year, shall not be more than twice the total number of
151151 123licenses authorized to be granted in that city or town under sections 15 and 17 of this chapter,
152152 124rounded down to the nearest whole number; and
153153 125 (2) issued or available to be issued, overall, shall not be less than half the total number of
154154 126licenses authorized to be granted in that city or town under sections 15 and 17 of this chapter,
155155 127rounded up to the nearest whole number.
156156 128 (c) A local licensing authority shall not deny an application for the issuance, transfer, or
157157 129annual renewal of a food store license on the basis that the applicant holds or controls multiple
158158 130licenses granted under sections 15 or 15B of this chapter, provided that no application for the
159159 131issuance or transfer of a food store license shall be granted if as a result the applicant would hold
160160 132or control more than 15 food store licenses in any one county of the commonwealth.
161161 133 (d) The commission shall, after notice and hearing under chapter 30A, promulgate such
162162 134regulations as are necessary to implement this section.
163163 135 Section 15F. Effect of food store licenses on proximate competing premises 8 of 13
164164 136 (a) Upon the issuance or transfer of a food store license to a premises not previously in
165165 137the business of selling alcoholic beverages to consumers, the operator of any proximate
166166 138competing premises lawfully conducting business at the time of such issuance or transfer may
167167 139apply for a small business support grant from the fund established by section 2JJJJJ of chapter 29
168168 140and administered by the commission in accordance with this section.
169169 141 (b) For purposes of this section, a proximate competing premises means a permanent
170170 142non-mobile establishment then currently licensed under section 15 of this chapter, where said
171171 143license is held or controlled by an employer not required to offer earned paid sick time under
172172 144section 148C of chapter 149, provided that said establishment is located:
173173 145 (1) within 2,500 feet of the premises for which the food store license has been issued or
174174 146transferred, in the case of a city; or
175175 147 (2) within 5,000 feet of the premises for which the food store license has been issued or
176176 148transferred, in the case of a town.
177177 149 (c) Applicants deemed to be a proximate competing premises by the commission shall be
178178 150eligible to receive not more than ten consecutive annual payments in the nature of a small
179179 151business support grant, provided that each such payment shall be in an amount determined by the
180180 152commission:
181181 153 (1) by dividing the balance of the fund by the total number of food store licenses serving
182182 154as the basis for at least one grant application by a proximate competing premises; and 9 of 13
183183 155 (2) by further dividing the quotient from the preceding paragraph, for each such food
184184 156store license, by the total number of proximate competing premises that applied for a grant with
185185 157respect to that particular food store license.
186186 158 (d) Nothing in this section shall prohibit one qualified applicant from receiving more than
187187 159one small business support grant from the fund, where said applicant meets the definition of a
188188 160proximate competing premises with respect to more than one food store license.
189189 161 (e) A local licensing authority shall not deny an application for the issuance, transfer, or
190190 162annual renewal of a food store license on the basis of limiting competition with or proximity to
191191 163any other premises licensed under this chapter, nor on the basis that the subject premises may
192192 164have been eligible for a different class of license granted under this chapter, provided that
193193 165nothing in this subsection shall require a local licensing authority to grant an application for the
194194 166issuance or transfer of a food store license where the sale of wines and malt beverages would be
195195 167inconsistent with a valid municipal zoning law enacted under chapter 40A and effective at the
196196 168time such application was made, provided further that such application shall not be precluded
197197 169where the subject premises obtains a variance or exemption from the municipal zoning law in
198198 170question, including for the continuance of a preexisting nonconforming use.
199199 171 (f) The commission shall, after notice and hearing under chapter 30A, promulgate such
200200 172regulations as are necessary to implement this section.
201201 173 SECTION 2. Section 25A of said chapter 138 is hereby amended by inserting, after the
202202 174final paragraph, the following:- 10 of 13
203203 175 (c) Notwithstanding the preceding subsections, and for the purpose of attaining a quantity
204204 176discount offered by a wholesaler licensed under section 18, any person or entity that holds or
205205 177controls one or more licenses issued under sections 15 and 15B may either:
206206 178 (1) enter into a cooperative agreement with one or more other persons or entities, not to
207207 179exceed 15 parties in total, each holding or controlling not more than 15 licenses issued under said
208208 180sections 15 and 15B, to make joint purchases of alcoholic beverages in larger quantities than
209209 181might otherwise be purchased, provided that nothing in this paragraph shall authorize the
210210 182distribution of alcoholic beverages to anyone except the parties to any such agreement according
211211 183to their respective share of the joint purchase as attributed to each licensed premises; or
212212 184 (2) make a combined purchase of alcoholic beverages for two or more of its own licenses
213213 185issued under said sections 15 and 15B, provided that the number of licenses for which any one
214214 186combined purchase may be made under this paragraph shall not exceed the aggregate number of
215215 187licenses for which a joint purchase may be made through a cooperative agreement under the
216216 188preceding paragraph.
217217 189 SECTION 3. Section 25A of said chapter 138 is hereby further amended by striking out
218218 190the words “No licensee authorized under this chapter to sell alcoholic beverages to wholesalers
219219 191or retailers shall-- (a) Discriminate” and inserting in place thereof the following:-
220220 192 (a) No licensee authorized under this chapter to sell alcoholic beverages to wholesalers or
221221 193retailers shall discriminate
222222 194 SECTION 4. Section 25A of said chapter 138 is hereby further amended by striking out
223223 195the words “; All price lists” and inserting in place thereof the following:- 11 of 13
224224 196 . (b) All price lists
225225 197 SECTION 5. Section 15C of said chapter 138, as enacted by section 1 of this Act, is
226226 198hereby amended by striking out subsection (a) and inserting in place thereof the following:-
227227 199 (a) Every establishment licensed under section 15B of this chapter shall adopt and
228228 200enforce an age verification and employee training policy for the prevention of the unlawful sale
229229 201of alcoholic beverages to persons under 21 years of age, which policy shall require:
230230 202 (1) the presentation of a reliable form of identification by all customers for all purchases
231231 203of alcoholic beverages, regardless of the actual or apparent age of the customer; and
232232 204 (2) the verification of such identification by means of an optical barcode scanner or
233233 205magnetic card reader, or such other comparable technology as may be approved by the
234234 206commission, provided that the commission shall establish alternative measures of verification for
235235 207those forms of identification, if any, upon which a licensee may reasonably rely for purposes of
236236 208the second paragraph of section 34B but which are not capable of verification by technological
237237 209means that are both commercially available and practically applied for the intended use.
238238 210 SECTION 6. Section 34B of said chapter 138 is hereby amended by inserting, in the
239239 211second paragraph, after the words “military identification card” the following:-
240240 212 or an out of state license that has been validated by the means described by paragraph
241241 213(a)(2) of section 15C
242242 214 SECTION 7. Section 34B of said chapter 138 is hereby further amended by striking out,
243243 215in the second paragraph, the words “a liquor purchase identification card, or an identification 12 of 13
244244 216card issued under section 8E of chapter 90, or motor vehicle license issued pursuant to said
245245 217section eight” and inserting in place thereof the following:-
246246 218 particular forms of identification named in this paragraph
247247 219 SECTION 8. Section 15E of said chapter 138, as enacted by section 1 of this Act, is
248248 220hereby amended by striking out, in subsection (c), the word “county” and inserting in place
249249 221thereof the following:- city or town
250250 222 SECTION 9. Section 20 of said chapter 138, as so appearing, is hereby amended by
251251 223inserting, after the final paragraph, the following:-
252252 224 A person or entity making a combined purchase of alcoholic beverages under paragraph
253253 225(c)(2) of section 25A is hereby permitted under this section to store such alcoholic beverages at a
254254 226licensed and bonded warehouse, provided that nothing in this paragraph shall authorize the resale
255255 227of such alcoholic beverages other than at retail by the licensed establishment to a consumer in the
256256 228normal course of business.
257257 229 SECTION 10. Chapter 29 of the General Laws, as so appearing, is hereby amended by
258258 230inserting, before section 3, the following:-
259259 231 Section 2JJJJJ. There shall be established and set upon the books of the commonwealth a
260260 232separate fund, which shall consist of all fees collected by the alcoholic beverages control
261261 233commission under section 15D of chapter 138. Amounts credited to the fund shall be available,
262262 234without further appropriation, to the commission for the payment of small business support
263263 235grants as provided by section 15F of said chapter 138. 13 of 13
264264 236 SECTION 11. For the avoidance of doubt and without limitation to the general provisions
265265 237of section 15E of chapter 138 of the General Laws, as enacted by this Act, a food store license
266266 238shall not be subject to the second sentence of section 15 of chapter 138, and shall not be
267267 239considered a license issued under said section 15 for purposes of determining the number of
268268 240marijuana retailers that may be approved in any city or town under section 3 of chapter 94G.
269269 241 SECTION 12. The commission shall maintain a ratio of at least one investigator per 250
270270 242outstanding licenses issued under said chapter 138 by a local licensing authority.
271271 243 SECTION 13. The commission shall establish a working group consisting of designated
272272 244representatives of each of the three tiers of the beverage alcohol marketplace, respectively,
273273 245including, for the retail tier, a representative of food stores and a representative of package
274274 246stores; of consumer advocates; of local licensing authorities; of the governor; of the attorney
275275 247general; and of the treasurer. The working group shall study and make findings as to the types
276276 248and varieties of packaged alcoholic beverages stocked and sold by the various classes of off-
277277 249premises licensees within the commonwealth, for the purpose of recommending the maintenance
278278 250or modification of public policies to encourage market efficiency and discourage market
279279 251dominance in any tier of the beverage alcohol marketplace. The working group shall be
280280 252convened within 6 months from the enactment of this Act, and shall issue a report of its findings
281281 253and recommendations to the commission within 18 months thereafter.
282282 254 SECTION 14. Sections 5 through 8 of this Act, inclusive, shall take effect on
283283 255 January 1, 2024.