Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H391 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 1 of 1
22 HOUSE DOCKET, NO. 1002 FILED ON: 1/17/2023
33 HOUSE . . . . . . . . . . . . . . . No. 391
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Danillo A. Sena
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 to enhance diversity in the awarding of liquor licenses.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Danillo A. Sena37th Middlesex1/17/2023 1 of 15
1616 HOUSE DOCKET, NO. 1002 FILED ON: 1/17/2023
1717 HOUSE . . . . . . . . . . . . . . . No. 391
1818 By Representative Sena of Acton, a petition (accompanied by bill, House, No. 391) of Danillo A.
1919 Sena relative to enhancing diversity in the awarding of liquor licenses. Consumer Protection and
2020 Professional Licensure.
2121 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2222 SEE HOUSE, NO. 3946 OF 2021-2022.]
2323 The Commonwealth of Massachusetts
2424 _______________
2525 In the One Hundred and Ninety-Third General Court
2626 (2023-2024)
2727 _______________
2828 An Act to enhance diversity in the awarding of liquor licenses.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Section 13A of chapter 30A of the General Laws, as so appearing in the
3232 22018 Official Edition, is hereby amended by inserting after the word "number,” in line 4, the
3333 3following words:—
3434 4 or for the purposes of chapter 138 an individual taxpayer identification number.
3535 5 SECTION 2. Said section 13A of said chapter 30A, as so appearing, is hereby amended
3636 6by inserting after the word "number,” in line 5, the following words: —
3737 7 or individual taxpayer identification number.
3838 8 SECTION 3. Said section 13A of said chapter 30A, as so appearing, is hereby amended
3939 9by inserting after the word "number,” in line 7, the following words: — 2 of 15
4040 10 or individual taxpayer identification number.
4141 11 SECTION 4. Said section 13A of said chapter 30A, as so appearing, is hereby amended
4242 12by inserting after the word "number,” in line 10, the following words: —
4343 13 or individual taxpayer identification number.
4444 14 SECTION 5. Section 15 of chapter 138 of the General Laws, as so appearing, is hereby
4545 15amended by striking out the first sentence and inserting in place thereof the following
4646 16sentence:—
4747 17 The local licensing authorities in any city or town which votes to authorize the granting
4848 18of licenses for the sale of all alcoholic beverages, and such authorities in any city or town which
4949 19votes to authorize the granting of licenses for the sale of wines and malt beverages only, may
5050 20grant licenses for the sale at retail of such alcoholic beverages or wines and malt beverages, as
5151 21the case may be, not to be drunk on the premises, to applicants therefor who hold a valid social
5252 22security number or individual taxpayer identification number and are residents of the
5353 23commonwealth, or partnerships composed solely of such individuals that hold a valid social
5454 24security number or individual taxpayer identification number and are residents or to corporations
5555 25organized under the laws of the commonwealth and whereof all directors shall hold a social
5656 26security number or individual taxpayer identification number and a majority residents of the
5757 27commonwealth or to limited liability companies or limited liability partnerships organized under
5858 28the laws of the commonwealth, subject to such conditions as the commission may prescribe by
5959 29regulation to address issues of residency and the requirements for a manager or principal
6060 30representative of a non-citizen licensee under section 26 as qualifications for a limited liability
6161 31company or limited liability partnership to hold a license pursuant to this section and sections 18, 3 of 15
6262 3218A, 19, 19B and 19C, or to an applicant licensed to operate as a farmer-winery under said
6363 33section 19B or in any other state.
6464 34 SECTION 6. Section 18 of said chapter 138, as so appearing, is hereby amended by
6565 35striking out the first sentence and inserting in place thereof the following sentence:—
6666 36 The commission may issue to any individual who holds a social security number or
6767 37individual taxpayer identification number and is a resident of the commonwealth, and to any ship
6868 38chandler licensed under the provisions of section thirteen and to partnerships composed solely of
6969 39such individuals, and to corporations organized under the laws of the commonwealth whereof all
7070 40the directors hold a valid social security number or individual taxpayer identification number and
7171 41a majority thereof residents of the commonwealth and to limited liability companies and limited
7272 42liability partnerships organized under the laws of the commonwealth, subject to such conditions
7373 43as the commission may prescribe by regulation to address issues of residency and the
7474 44requirements for a manager or principal representative of a non-citizen licensee under section 26
7575 45as qualifications for a limited liability company or limited liability partnership to hold a license
7676 46pursuant to this section and sections 15, 18A, 19, 19B and 19C, licenses as wholesalers and
7777 47importers (1) to sell for resale to other licensees under this chapter alcoholic beverages
7878 48manufactured by any manufacturer licensed under the provisions of section nineteen and to
7979 49import alcoholic beverages into the commonwealth from holders of certificates issued under
8080 50section eighteen B whose licensed premises are located in other states and foreign countries for
8181 51sale to such licensees, or (2) to sell for resale wines and malt beverages so manufactured to such
8282 52licensees and to import as aforesaid wines and malt beverages for sale to such licensees. 4 of 15
8383 53 SECTION 7. Section 18A of said chapter 138, as so appearing, is hereby amended by
8484 54striking out the first paragraph and inserting in place thereof the following paragraph:—
8585 55 The commission may issue to any individual who holds a social security number or
8686 56individual taxpayer identification number and is a resident of the commonwealth, or to any
8787 57partnership composed solely of such individuals, or to any corporation organized under the laws
8888 58of the commonwealth or organized under the laws of any other state of the United States or of
8989 59any foreign country and admitted to do business in the commonwealth or to a limited liability
9090 60company or a limited liability partnership organized under the laws of the commonwealth,
9191 61subject to such conditions as the commission may prescribe by regulation to address issues of
9292 62residency and the requirements for a manager or principal representative of a non-citizen
9393 63licensee under section 26 as qualifications for a limited liability company or limited liability
9494 64partnership to hold a license pursuant to this section and sections 15, 18, 19, 19B and 19C, a
9595 65license which shall authorize the licensee to act as agent, broker or solicitor for any specified
9696 66individual, corporation or partnership in another state or foreign country engaged in the business
9797 67of manufacturing, importing or selling alcoholic beverages, hereinafter called the principal, and,
9898 68on behalf of such principal, to solicit orders for such beverages from holders of licenses under
9999 69section eighteen only. A license granted hereunder shall authorize representation of one principal
100100 70only, but the licensee may also, in the discretion of the commission, be licensed hereunder to
101101 71represent other principals. No licensee hereunder shall buy or sell alcoholic beverages for his
102102 72own account, and no such beverages shall be brought into the commonwealth in pursuance of the
103103 73exercise of such a license otherwise than through a licensee under said section eighteen.
104104 74 SECTION 8. Section 18C of said chapter 138, as so appearing, is hereby amended by
105105 75striking out subsection (a) and inserting in place thereof the following subsection: — 5 of 15
106106 76 (a) The commission may issue to an individual who holds a social security number or
107107 77individual taxpayer identification number and is a resident of the commonwealth or to a
108108 78corporation organized under the laws of the commonwealth whose directors are all holders of a
109109 79social security number or individual taxpayer identification number and a majority of them
110110 80residents of the commonwealth, or to a limited liability company or limited liability partnership
111111 81organized under the laws of the commonwealth whose members are all holders of a social
112112 82security number or individual taxpayer identification number and a majority of them residents of
113113 83the commonwealth, a license to import alcoholic beverages into the commonwealth for use only
114114 84in connection with the manufacture of food products, including ice cream. Nothing in this section
115115 85shall authorize the holder of an importer's license issued under this section to sell alcoholic
116116 86beverages as he is licensed to import only, or to export alcoholic beverages from the
117117 87commonwealth into any other state or into a foreign country. A vote in a city or town pursuant to
118118 88section 11 shall not prevent the granting or renewal of a license under this section. All alcoholic
119119 89beverages purchased by a licensee under this section, and all alcoholic beverages shipped into
120120 90the commonwealth pursuant to any such purchase, shall be warehoused at the warehouse
121121 91facilities of the licensee and held in his physical possession at the warehouse. An importer under
122122 92this section shall keep such records as the commission may prescribe and shall file with the
123123 93commission, as often as it may require, duplicates or copies of those records. The commission
124124 94shall have, at all times through its designated officers or agents, access to all books, records and
125125 95other documents of each licensed importer relating to the licensee's importer business.
126126 96 SECTION 9. Section 19 of said chapter 138, as so appearing, is hereby amended by
127127 97striking out subsection (a) and inserting in place thereof the following subsection: — 6 of 15
128128 98 (a) The commission may issue to any individual who holds a social security number or
129129 99individual taxpayer identification number and is a resident of the commonwealth and to
130130 100partnerships, composed solely of such individuals, and to corporations organized under the laws
131131 101of this commonwealth or organized under the laws of any other state of the United States and
132132 102admitted to do business in this commonwealth and to limited liability companies and limited
133133 103liability partnerships organized under the laws of the commonwealth, subject to such conditions
134134 104as the commission may prescribe by regulation to address issues of residency and the need for a
135135 105license manager under section 26 as qualifications for a limited liability company or limited
136136 106liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19B and
137137 10719C, licenses to manufacture alcoholic beverages. Manufacturers of such beverages may sell the
138138 108same to any licensee holding a valid license granted by the licensing authorities for the sale
139139 109within the commonwealth in accordance with the provisions of this chapter, and may also sell
140140 110such beverages for export from this commonwealth into any state where the sale of the same is
141141 111not by law prohibited, and into any foreign country; and manufacturers of such beverages may
142142 112sell the same to any registered pharmacist holding a certificate of fitness under section thirty and
143143 113also as authorized by section twenty-eight.
144144 114 Subject to such regulations as may be prescribed by the commission, licensees under this
145145 115section may rectify or blend, but only upon such premises and under such conditions as the
146146 116commission shall approve, alcoholic beverages manufactured by them. All alcoholic beverages
147147 117sold by any manufacturer thereof shall be sold and delivered in such manner, and under such
148148 118conditions, and with such labels or other marks to identify the manufacturer, as the commission
149149 119shall from time to time prescribe by regulations; provided, that sales of such beverages may be
150150 120made in kegs, casks, barrels or bottles, to holders of wholesalers' and importers' licenses; and 7 of 15
151151 121provided, further, that sale of wines and malt beverages may be made in kegs, casks or barrels by
152152 122any manufacturer licensed under this section to licensees authorized to sell such beverages under
153153 123section twelve, thirteen or fourteen and, for the sole purpose of resale in the containers in which
154154 124the same were delivered, to licensees under section fifteen. No licensee under section fifteen
155155 125shall resell beverages delivered to him in kegs, casks or barrels under this section, except in such
156156 126containers.
157157 127 Every licensed manufacturer of alcoholic beverages shall keep such records in such detail
158158 128and affording such information as the commission may from time to time prescribe, and shall file
159159 129with the commission, whenever and as often as it may require, duplicates of copies of such
160160 130records; and the commission shall at all times, through its designated officers or agents, have
161161 131access to all books, records and other documents of every licensed manufacturer relating to the
162162 132business which he is licensed hereunder to conduct.
163163 133 The license fee for each manufacturer of alcoholic beverages, in respect of each plant,
164164 134shall be such sum, not less than $6,000 nor more than $10,000, as under the circumstances of the
165165 135licensee's probable volume of sales under this section, the capacity of his plant and the location
166166 136thereof, the commission shall deem just and proper; provided, that the license fee for each
167167 137manufacturer of cider or other alcoholic beverage made from apples shall be such sum, not less
168168 138than twenty-five nor more than two hundred and fifty dollars, as the commission shall deem just
169169 139and proper, but no such fee shall be collected from any such manufacturer for the making of
170170 140cider, the sale of which is authorized by section three without a license.
171171 141 No vote in any city or town under section eleven shall prevent the granting or renewal of
172172 142a license under this section. 8 of 15
173173 143 SECTION 10. Section 19A of said chapter 138, as so appearing, is hereby amended by
174174 144striking out, in line 2, the word "citizens" and inserting in place thereof the following word:—
175175 145 residents.
176176 146 SECTION 11. Section 19B of said chapter 138, as so appearing, is hereby amended by
177177 147striking out subsection (a) and inserting in place thereof the following subsection: —
178178 148 (a) For the purpose of encouraging the development of domestic vineyards, the
179179 149commission shall issue a farmer-winery license to any applicant who holds a social security
180180 150number or individual taxpayer identification number and is a resident of the commonwealth, and
181181 151to applying partnerships composed solely of such individuals, and to applying corporations
182182 152organized under the laws of the commonwealth or organized under the laws of any other state of
183183 153the United States and admitted to do business in this commonwealth and to applying limited
184184 154liability companies and limited liability partnerships organized under the laws of the
185185 155commonwealth, subject to such conditions as the commission may prescribe by regulation to
186186 156address issues of residency and the need for a license manager under section 26 as qualifications
187187 157for a limited liability company or limited liability partnership to hold a license pursuant to this
188188 158section and sections 15, 18, 18A, 19 and 19C, unless:
189189 159 (1) such person does not comply with reasonable application procedures required by the
190190 160commission; or
191191 161 (2) the commission determines that such person is not of responsible character; or
192192 162 (3) a church or school located within five hundred feet of the winery premises has
193193 163objected to issuance of the license in accordance with section sixteen C; or 9 of 15
194194 164 (4) the commission determines that the applicant retains or owns an interest, directly or
195195 165indirectly, in the business of a licensee under section twelve or fifteen; or
196196 166 (5) the commission determines that the applicant retains or owns an interest, directly or
197197 167indirectly in more than one business licensed under section eighteen; or
198198 168 (6) the applicant has not furnished the requisite license fee or bond; or
199199 169 (7) the commission determines that the co-partners, corporate officials or stockholders of
200200 170the applicant do not meet the requirements of paragraphs (2), (4) and (5), or that the manager or
201201 171agent intended to conduct the winery business on the applicant's behalf does not meet such
202202 172requirements, or that such co-partners, officials, stockholders, agent or manager remain
203203 173undisclosed.
204204 174 SECTION 12. Section 19C of said chapter 138, as so appearing, is hereby amended by
205205 175striking out subsection (a) and inserting in place thereof the following subsection: —
206206 176 (a) For the purpose of encouraging the development of domestic farms, the commission
207207 177shall issue a farmer-brewery license to any applicant who holds a social security number or
208208 178individual taxpayer identification number and is a resident of the commonwealth and to applying
209209 179partnerships composed solely of such individuals, and to applying corporations organized under
210210 180the laws of the commonwealth or organized under the laws of any other state of the United States
211211 181and admitted to do business in the commonwealth and to applying limited liability companies
212212 182and limited liability partnerships organized under the laws of the commonwealth, subject to such
213213 183conditions as the commission may prescribe by regulation to address issues of residency and the
214214 184need for a license manager under section 26 as qualifications for a limited liability company or
215215 185limited liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19 10 of 15
216216 186and 19B, unless: (1) such person does not comply with reasonable application procedures
217217 187required by the commission; or
218218 188 (2) the commission determines that such person is not of responsible character; or
219219 189 (3) a church or school located within five hundred feet of the brewery premises has
220220 190objected to issuance of the license in accordance with section sixteen C; or
221221 191 (4) the commission determines that the applicant retains or owns an interest, directly or
222222 192indirectly, in the business of a licensee under section twelve or fifteen; or
223223 193 (5) the commission determines that the applicant retains or owns an interest, directly or
224224 194indirectly in more than one business licensed under section eighteen; or
225225 195 (6) the applicant has not furnished the requisite license fee or bond; or
226226 196 (7) the commission determines that the co-partners, corporate officials or stockholders of
227227 197the applicant do not meet the requirements of clauses (2), (4) and (5), or that the manager or
228228 198agent intended to conduct the farmer-brewery business on the applicant's behalf does not meet
229229 199such requirements, or that such co-partners, officials, stockholders, agent or manager remain
230230 200undisclosed.
231231 201 SECTION 13. Section 19D of said chapter 138, as so appearing, is hereby amended by
232232 202striking out subsection (a) and inserting in place thereof the following subsection: —
233233 203 (a) The commission shall issue a pub brewery license to an applicant who holds a social
234234 204security number or individual taxpayer identification number and is a resident of the
235235 205commonwealth and to applying partnerships and to applying corporations organized under the
236236 206laws of the commonwealth or organized under the laws of any other state and admitted to do 11 of 15
237237 207business in the commonwealth and to applying limited liability companies or limited liability
238238 208partnerships organized under the laws of the commonwealth unless:
239239 209 (1) such person does not comply with application procedures required by the
240240 210commission;
241241 211 (2) the commission determines that such applicant is not of responsible character;
242242 212 (3) a church or school located within 500 feet of the brewery premises has objected to the
243243 213issuance of such license in accordance with the provisions of section 16C and the commission
244244 214finds that the pub brewery premises are detrimental to the spiritual activities of such church;
245245 215 (4) the commission determines that the applicant retains or owns an interest, directly or
246246 216indirectly, in the business of a licensee under section 15 or a business which would be licensed
247247 217under said section 15 if it were located within the commonwealth;
248248 218 (5) the commission determines that the applicant retains or owns an interest, directly or
249249 219indirectly, in a business license under section 18 or a business which would be licensed under
250250 220said section 18 if it were located within the commonwealth;
251251 221 (6) the commission determines that the applicant retains or owns an interest, directly or
252252 222indirectly, in any activity or in any business directly or indirectly engaged in the business of
253253 223manufacturing any alcoholic beverages either within or outside of the commonwealth, except
254254 224any interest, directly or indirectly, in a pub brewery license under this section or any business
255255 225which would be licensed as a pub brewery under this section if it were located within the
256256 226commonwealth; 12 of 15
257257 227 (7) the commission determines that the applicant retains or owns an interest, directly or
258258 228indirectly, in the business of a holder of a certificate issued under section 18B;
259259 229 (8) the applicant has not furnished the requisite license fee or bond; or
260260 230 (9) the commission determines that the co-partners, corporate officials or stockholders of
261261 231the applicant do not meet the requirements of clauses (2), (4), (5), (6), (7) and (8), or that the
262262 232manager or agent intended to conduct the pub brewery business on the applicant's behalf does
263263 233not meet such requirements, or that such co-partners, officials, stockholders, agents or managers
264264 234remain undisclosed.
265265 235 SECTION 14. Section 19E of said chapter 138, as so appearing, is hereby amended by
266266 236striking out subsection (a) and inserting in place thereof the following subsection: —
267267 237 (a) For the purpose of encouraging the development of domestic farms, the commission
268268 238shall issue a farmer-distillery license to an applicant who holds a social security number or
269269 239individual taxpayer identification number and is a resident of the commonwealth and to applying
270270 240partnerships composed solely of such individuals, and to applying corporations organized under
271271 241the laws of the commonwealth or organized under the laws of any other state of the United States
272272 242and admitted to do business in the commonwealth, unless:—
273273 243 (1) such person does not comply with reasonable application procedures required by the
274274 244commission;
275275 245 (2) the commission determines that such person is not of responsible character;
276276 246 (3) a church or school located within 500 feet of the farmer-distillery premises has
277277 247objected to the issuance of a license in accordance with section 16C; 13 of 15
278278 248 (4) the commission determines that the applicant retains or owns an interest, directly or
279279 249indirectly, in the business of a licensee under section 12 or 15;
280280 250 (5) the commission determines that the applicant retains or owns an interest, directly or
281281 251indirectly, in more than 1 business licensed under section 18;
282282 252 (6) the applicant has not furnished the requisite license fee or bond; or
283283 253 (7) the commission determines that the co-partners, corporate officials or stockholders of
284284 254the applicant do not meet the requirements of paragraphs (2), (4) and (5) or that the agent or
285285 255manager who intends to conduct the farmer-distillery business on the applicant's behalf does not
286286 256meet the requirements or that the co-partners, officials, stockholders, agent or manager remain
287287 257undisclosed.
288288 258 SECTION 15. Section 19G of said chapter 138, as so appearing, is hereby amended by
289289 259striking out subsection (a) and inserting in place thereof the following subsection: —
290290 260 (a) The commission may issue a tenant brewer license which authorizes the licensee to
291291 261manufacture or package malt beverages on the premises of a host brewer to any individual
292292 262applicant who holds a social security number or individual taxpayer identification number and is
293293 263a resident of the commonwealth or to a corporation, partnership or other entity which complies
294294 264with the requirements of section 26 and is a holder of a certificate of compliance issued pursuant
295295 265to section 18B. An applicant for a tenant brewer license shall provide the commission and the
296296 266department of revenue with a true copy of the applicable alcoholic beverage license to
297297 267manufacture, export and import as issued by the appropriate licensing authority. 14 of 15
298298 268 To be eligible for a tenant brewer license, the applicant shall: (i) be licensed pursuant to
299299 269section 19 or section 19C or a license holder outside the commonwealth that is authorized to
300300 270manufacture, export and import malt beverages; (ii) comply with any federal law regulating the
301301 271manufacture, export or import of malt beverages as identified by the commission in a written
302302 272guidance that shall be issued to each host brewer, tenant brewer and wholesaler licensed pursuant
303303 273to section 18; and (iii) shall have an approved alternating proprietorship arrangement that allows
304304 274the applicant to use the facilities, equipment and employees of a host brewer.
305305 275 A tenant brewer may import such raw materials as are required solely for the production
306306 276and packaging of the malt beverages including, without limitation, bulk malt beverages produced
307307 277by the tenant brewer at its brewery of origin. The bulk malt beverages imported by the tenant
308308 278brewer shall be packaged and shipped back to the tenant brewer's brewery of origin or to a
309309 279wholesaler licensed pursuant to section 18 or to a license holder outside the commonwealth
310310 280authorized to import malt beverages designated by the tenant brewer within 10 days after receipt
311311 281by the host brewer.
312312 282 Any product produced or packaged at the host brewer's premises shall be removed from
313313 283the host brewer's premises within 10 days after the brewing or packaging process is completed.
314314 284The finished product shall be returned to the tenant brewer's brewery of origin or to a wholesaler
315315 285licensed pursuant to section 18 or to a license holder outside the commonwealth authorized to
316316 286import malt beverages designated by the tenant brewer.
317317 287 SECTION 16. Said chapter 138 is hereby amended by striking out section 26, as so
318318 288appearing, and inserting in place thereof the following section:— 15 of 15
319319 289 Section 26. No license for the sale of alcoholic beverages or alcohol and no vehicle
320320 290permit for the transportation thereof shall be issued to any person who does not, at the time of the
321321 291person’s application therefor, hold a social security number or individual taxpayer identification
322322 292number, or to any agent of any such person, and no person who does not hold a social security
323323 293number or individual taxpayer identification number shall be appointed as manager or other
324324 294principal representative of any licensee; provided, that nothing herein shall prevent the granting
325325 295of a license under section eighteen A to any corporation organized under the laws of a foreign
326326 296country or the granting of a vehicle permit to such a corporation so licensed.
327327 297 No corporation, organized under the laws of the commonwealth or of any other state or
328328 298foreign country, shall be given a license to sell in any manner any alcoholic beverages unless
329329 299such corporation shall have first appointed, in such manner as the licensing authorities by
330330 300regulation prescribe, as manager or other principal representative, a holder of a social security
331331 301number or individual taxpayer identification number, and shall have vested in the manager or
332332 302other principal representative by properly authorized and executed written delegation as full
333333 303authority and control of the premises, described in the license of such corporation, and of the
334334 304conduct of all business therein relative to alcoholic beverages as the licensee itself could in any
335335 305way have and exercise if it were a natural person resident in the commonwealth, nor unless such
336336 306manager or representative is, with respect to the manager or representative’s character,
337337 307satisfactory to the licensing authorities.
338338 308 No provision of this chapter shall impair any right growing out of any treaty to which the
339339 309United States is a party.