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HOUSE DOCKET, NO. 1002 FILED ON: 1/17/2023
HOUSE . . . . . . . . . . . . . . . No. 391
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Danillo A. Sena
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to enhance diversity in the awarding of liquor licenses.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Danillo A. Sena37th Middlesex1/17/2023 1 of 15
HOUSE DOCKET, NO. 1002 FILED ON: 1/17/2023
HOUSE . . . . . . . . . . . . . . . No. 391
By Representative Sena of Acton, a petition (accompanied by bill, House, No. 391) of Danillo A.
Sena relative to enhancing diversity in the awarding of liquor licenses. Consumer Protection and
Professional Licensure.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 3946 OF 2021-2022.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act to enhance diversity in the awarding of liquor licenses.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 13A of chapter 30A of the General Laws, as so appearing in the
22018 Official Edition, is hereby amended by inserting after the word "number,” in line 4, the
3following words:—
4 or for the purposes of chapter 138 an individual taxpayer identification number.
5 SECTION 2. Said section 13A of said chapter 30A, as so appearing, is hereby amended
6by inserting after the word "number,” in line 5, the following words: —
7 or individual taxpayer identification number.
8 SECTION 3. Said section 13A of said chapter 30A, as so appearing, is hereby amended
9by inserting after the word "number,” in line 7, the following words: — 2 of 15
10 or individual taxpayer identification number.
11 SECTION 4. Said section 13A of said chapter 30A, as so appearing, is hereby amended
12by inserting after the word "number,” in line 10, the following words: —
13 or individual taxpayer identification number.
14 SECTION 5. Section 15 of chapter 138 of the General Laws, as so appearing, is hereby
15amended by striking out the first sentence and inserting in place thereof the following
16sentence:—
17 The local licensing authorities in any city or town which votes to authorize the granting
18of licenses for the sale of all alcoholic beverages, and such authorities in any city or town which
19votes to authorize the granting of licenses for the sale of wines and malt beverages only, may
20grant licenses for the sale at retail of such alcoholic beverages or wines and malt beverages, as
21the case may be, not to be drunk on the premises, to applicants therefor who hold a valid social
22security number or individual taxpayer identification number and are residents of the
23commonwealth, or partnerships composed solely of such individuals that hold a valid social
24security number or individual taxpayer identification number and are residents or to corporations
25organized under the laws of the commonwealth and whereof all directors shall hold a social
26security number or individual taxpayer identification number and a majority residents of the
27commonwealth or to limited liability companies or limited liability partnerships organized under
28the laws of the commonwealth, subject to such conditions as the commission may prescribe by
29regulation to address issues of residency and the requirements for a manager or principal
30representative of a non-citizen licensee under section 26 as qualifications for a limited liability
31company or limited liability partnership to hold a license pursuant to this section and sections 18, 3 of 15
3218A, 19, 19B and 19C, or to an applicant licensed to operate as a farmer-winery under said
33section 19B or in any other state.
34 SECTION 6. Section 18 of said chapter 138, as so appearing, is hereby amended by
35striking out the first sentence and inserting in place thereof the following sentence:—
36 The commission may issue to any individual who holds a social security number or
37individual taxpayer identification number and is a resident of the commonwealth, and to any ship
38chandler licensed under the provisions of section thirteen and to partnerships composed solely of
39such individuals, and to corporations organized under the laws of the commonwealth whereof all
40the directors hold a valid social security number or individual taxpayer identification number and
41a majority thereof residents of the commonwealth and to limited liability companies and limited
42liability partnerships organized under the laws of the commonwealth, subject to such conditions
43as the commission may prescribe by regulation to address issues of residency and the
44requirements for a manager or principal representative of a non-citizen licensee under section 26
45as qualifications for a limited liability company or limited liability partnership to hold a license
46pursuant to this section and sections 15, 18A, 19, 19B and 19C, licenses as wholesalers and
47importers (1) to sell for resale to other licensees under this chapter alcoholic beverages
48manufactured by any manufacturer licensed under the provisions of section nineteen and to
49import alcoholic beverages into the commonwealth from holders of certificates issued under
50section eighteen B whose licensed premises are located in other states and foreign countries for
51sale to such licensees, or (2) to sell for resale wines and malt beverages so manufactured to such
52licensees and to import as aforesaid wines and malt beverages for sale to such licensees. 4 of 15
53 SECTION 7. Section 18A of said chapter 138, as so appearing, is hereby amended by
54striking out the first paragraph and inserting in place thereof the following paragraph:—
55 The commission may issue to any individual who holds a social security number or
56individual taxpayer identification number and is a resident of the commonwealth, or to any
57partnership composed solely of such individuals, or to any corporation organized under the laws
58of the commonwealth or organized under the laws of any other state of the United States or of
59any foreign country and admitted to do business in the commonwealth or to a limited liability
60company or a limited liability partnership organized under the laws of the commonwealth,
61subject to such conditions as the commission may prescribe by regulation to address issues of
62residency and the requirements for a manager or principal representative of a non-citizen
63licensee under section 26 as qualifications for a limited liability company or limited liability
64partnership to hold a license pursuant to this section and sections 15, 18, 19, 19B and 19C, a
65license which shall authorize the licensee to act as agent, broker or solicitor for any specified
66individual, corporation or partnership in another state or foreign country engaged in the business
67of manufacturing, importing or selling alcoholic beverages, hereinafter called the principal, and,
68on behalf of such principal, to solicit orders for such beverages from holders of licenses under
69section eighteen only. A license granted hereunder shall authorize representation of one principal
70only, but the licensee may also, in the discretion of the commission, be licensed hereunder to
71represent other principals. No licensee hereunder shall buy or sell alcoholic beverages for his
72own account, and no such beverages shall be brought into the commonwealth in pursuance of the
73exercise of such a license otherwise than through a licensee under said section eighteen.
74 SECTION 8. Section 18C of said chapter 138, as so appearing, is hereby amended by
75striking out subsection (a) and inserting in place thereof the following subsection: — 5 of 15
76 (a) The commission may issue to an individual who holds a social security number or
77individual taxpayer identification number and is a resident of the commonwealth or to a
78corporation organized under the laws of the commonwealth whose directors are all holders of a
79social security number or individual taxpayer identification number and a majority of them
80residents of the commonwealth, or to a limited liability company or limited liability partnership
81organized under the laws of the commonwealth whose members are all holders of a social
82security number or individual taxpayer identification number and a majority of them residents of
83the commonwealth, a license to import alcoholic beverages into the commonwealth for use only
84in connection with the manufacture of food products, including ice cream. Nothing in this section
85shall authorize the holder of an importer's license issued under this section to sell alcoholic
86beverages as he is licensed to import only, or to export alcoholic beverages from the
87commonwealth into any other state or into a foreign country. A vote in a city or town pursuant to
88section 11 shall not prevent the granting or renewal of a license under this section. All alcoholic
89beverages purchased by a licensee under this section, and all alcoholic beverages shipped into
90the commonwealth pursuant to any such purchase, shall be warehoused at the warehouse
91facilities of the licensee and held in his physical possession at the warehouse. An importer under
92this section shall keep such records as the commission may prescribe and shall file with the
93commission, as often as it may require, duplicates or copies of those records. The commission
94shall have, at all times through its designated officers or agents, access to all books, records and
95other documents of each licensed importer relating to the licensee's importer business.
96 SECTION 9. Section 19 of said chapter 138, as so appearing, is hereby amended by
97striking out subsection (a) and inserting in place thereof the following subsection: — 6 of 15
98 (a) The commission may issue to any individual who holds a social security number or
99individual taxpayer identification number and is a resident of the commonwealth and to
100partnerships, composed solely of such individuals, and to corporations organized under the laws
101of this commonwealth or organized under the laws of any other state of the United States and
102admitted to do business in this commonwealth and to limited liability companies and limited
103liability partnerships organized under the laws of the commonwealth, subject to such conditions
104as the commission may prescribe by regulation to address issues of residency and the need for a
105license manager under section 26 as qualifications for a limited liability company or limited
106liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19B and
10719C, licenses to manufacture alcoholic beverages. Manufacturers of such beverages may sell the
108same to any licensee holding a valid license granted by the licensing authorities for the sale
109within the commonwealth in accordance with the provisions of this chapter, and may also sell
110such beverages for export from this commonwealth into any state where the sale of the same is
111not by law prohibited, and into any foreign country; and manufacturers of such beverages may
112sell the same to any registered pharmacist holding a certificate of fitness under section thirty and
113also as authorized by section twenty-eight.
114 Subject to such regulations as may be prescribed by the commission, licensees under this
115section may rectify or blend, but only upon such premises and under such conditions as the
116commission shall approve, alcoholic beverages manufactured by them. All alcoholic beverages
117sold by any manufacturer thereof shall be sold and delivered in such manner, and under such
118conditions, and with such labels or other marks to identify the manufacturer, as the commission
119shall from time to time prescribe by regulations; provided, that sales of such beverages may be
120made in kegs, casks, barrels or bottles, to holders of wholesalers' and importers' licenses; and 7 of 15
121provided, further, that sale of wines and malt beverages may be made in kegs, casks or barrels by
122any manufacturer licensed under this section to licensees authorized to sell such beverages under
123section twelve, thirteen or fourteen and, for the sole purpose of resale in the containers in which
124the same were delivered, to licensees under section fifteen. No licensee under section fifteen
125shall resell beverages delivered to him in kegs, casks or barrels under this section, except in such
126containers.
127 Every licensed manufacturer of alcoholic beverages shall keep such records in such detail
128and affording such information as the commission may from time to time prescribe, and shall file
129with the commission, whenever and as often as it may require, duplicates of copies of such
130records; and the commission shall at all times, through its designated officers or agents, have
131access to all books, records and other documents of every licensed manufacturer relating to the
132business which he is licensed hereunder to conduct.
133 The license fee for each manufacturer of alcoholic beverages, in respect of each plant,
134shall be such sum, not less than $6,000 nor more than $10,000, as under the circumstances of the
135licensee's probable volume of sales under this section, the capacity of his plant and the location
136thereof, the commission shall deem just and proper; provided, that the license fee for each
137manufacturer of cider or other alcoholic beverage made from apples shall be such sum, not less
138than twenty-five nor more than two hundred and fifty dollars, as the commission shall deem just
139and proper, but no such fee shall be collected from any such manufacturer for the making of
140cider, the sale of which is authorized by section three without a license.
141 No vote in any city or town under section eleven shall prevent the granting or renewal of
142a license under this section. 8 of 15
143 SECTION 10. Section 19A of said chapter 138, as so appearing, is hereby amended by
144striking out, in line 2, the word "citizens" and inserting in place thereof the following word:—
145 residents.
146 SECTION 11. Section 19B of said chapter 138, as so appearing, is hereby amended by
147striking out subsection (a) and inserting in place thereof the following subsection: —
148 (a) For the purpose of encouraging the development of domestic vineyards, the
149commission shall issue a farmer-winery license to any applicant who holds a social security
150number or individual taxpayer identification number and is a resident of the commonwealth, and
151to applying partnerships composed solely of such individuals, and to applying corporations
152organized under the laws of the commonwealth or organized under the laws of any other state of
153the United States and admitted to do business in this commonwealth and to applying limited
154liability companies and limited liability partnerships organized under the laws of the
155commonwealth, subject to such conditions as the commission may prescribe by regulation to
156address issues of residency and the need for a license manager under section 26 as qualifications
157for a limited liability company or limited liability partnership to hold a license pursuant to this
158section and sections 15, 18, 18A, 19 and 19C, unless:
159 (1) such person does not comply with reasonable application procedures required by the
160commission; or
161 (2) the commission determines that such person is not of responsible character; or
162 (3) a church or school located within five hundred feet of the winery premises has
163objected to issuance of the license in accordance with section sixteen C; or 9 of 15
164 (4) the commission determines that the applicant retains or owns an interest, directly or
165indirectly, in the business of a licensee under section twelve or fifteen; or
166 (5) the commission determines that the applicant retains or owns an interest, directly or
167indirectly in more than one business licensed under section eighteen; or
168 (6) the applicant has not furnished the requisite license fee or bond; or
169 (7) the commission determines that the co-partners, corporate officials or stockholders of
170the applicant do not meet the requirements of paragraphs (2), (4) and (5), or that the manager or
171agent intended to conduct the winery business on the applicant's behalf does not meet such
172requirements, or that such co-partners, officials, stockholders, agent or manager remain
173undisclosed.
174 SECTION 12. Section 19C of said chapter 138, as so appearing, is hereby amended by
175striking out subsection (a) and inserting in place thereof the following subsection: —
176 (a) For the purpose of encouraging the development of domestic farms, the commission
177shall issue a farmer-brewery license to any applicant who holds a social security number or
178individual taxpayer identification number and is a resident of the commonwealth and to applying
179partnerships composed solely of such individuals, and to applying corporations organized under
180the laws of the commonwealth or organized under the laws of any other state of the United States
181and admitted to do business in the commonwealth and to applying limited liability companies
182and limited liability partnerships organized under the laws of the commonwealth, subject to such
183conditions as the commission may prescribe by regulation to address issues of residency and the
184need for a license manager under section 26 as qualifications for a limited liability company or
185limited liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19 10 of 15
186and 19B, unless: (1) such person does not comply with reasonable application procedures
187required by the commission; or
188 (2) the commission determines that such person is not of responsible character; or
189 (3) a church or school located within five hundred feet of the brewery premises has
190objected to issuance of the license in accordance with section sixteen C; or
191 (4) the commission determines that the applicant retains or owns an interest, directly or
192indirectly, in the business of a licensee under section twelve or fifteen; or
193 (5) the commission determines that the applicant retains or owns an interest, directly or
194indirectly in more than one business licensed under section eighteen; or
195 (6) the applicant has not furnished the requisite license fee or bond; or
196 (7) the commission determines that the co-partners, corporate officials or stockholders of
197the applicant do not meet the requirements of clauses (2), (4) and (5), or that the manager or
198agent intended to conduct the farmer-brewery business on the applicant's behalf does not meet
199such requirements, or that such co-partners, officials, stockholders, agent or manager remain
200undisclosed.
201 SECTION 13. Section 19D of said chapter 138, as so appearing, is hereby amended by
202striking out subsection (a) and inserting in place thereof the following subsection: —
203 (a) The commission shall issue a pub brewery license to an applicant who holds a social
204security number or individual taxpayer identification number and is a resident of the
205commonwealth and to applying partnerships and to applying corporations organized under the
206laws of the commonwealth or organized under the laws of any other state and admitted to do 11 of 15
207business in the commonwealth and to applying limited liability companies or limited liability
208partnerships organized under the laws of the commonwealth unless:
209 (1) such person does not comply with application procedures required by the
210commission;
211 (2) the commission determines that such applicant is not of responsible character;
212 (3) a church or school located within 500 feet of the brewery premises has objected to the
213issuance of such license in accordance with the provisions of section 16C and the commission
214finds that the pub brewery premises are detrimental to the spiritual activities of such church;
215 (4) the commission determines that the applicant retains or owns an interest, directly or
216indirectly, in the business of a licensee under section 15 or a business which would be licensed
217under said section 15 if it were located within the commonwealth;
218 (5) the commission determines that the applicant retains or owns an interest, directly or
219indirectly, in a business license under section 18 or a business which would be licensed under
220said section 18 if it were located within the commonwealth;
221 (6) the commission determines that the applicant retains or owns an interest, directly or
222indirectly, in any activity or in any business directly or indirectly engaged in the business of
223manufacturing any alcoholic beverages either within or outside of the commonwealth, except
224any interest, directly or indirectly, in a pub brewery license under this section or any business
225which would be licensed as a pub brewery under this section if it were located within the
226commonwealth; 12 of 15
227 (7) the commission determines that the applicant retains or owns an interest, directly or
228indirectly, in the business of a holder of a certificate issued under section 18B;
229 (8) the applicant has not furnished the requisite license fee or bond; or
230 (9) the commission determines that the co-partners, corporate officials or stockholders of
231the applicant do not meet the requirements of clauses (2), (4), (5), (6), (7) and (8), or that the
232manager or agent intended to conduct the pub brewery business on the applicant's behalf does
233not meet such requirements, or that such co-partners, officials, stockholders, agents or managers
234remain undisclosed.
235 SECTION 14. Section 19E of said chapter 138, as so appearing, is hereby amended by
236striking out subsection (a) and inserting in place thereof the following subsection: —
237 (a) For the purpose of encouraging the development of domestic farms, the commission
238shall issue a farmer-distillery license to an applicant who holds a social security number or
239individual taxpayer identification number and is a resident of the commonwealth and to applying
240partnerships composed solely of such individuals, and to applying corporations organized under
241the laws of the commonwealth or organized under the laws of any other state of the United States
242and admitted to do business in the commonwealth, unless:—
243 (1) such person does not comply with reasonable application procedures required by the
244commission;
245 (2) the commission determines that such person is not of responsible character;
246 (3) a church or school located within 500 feet of the farmer-distillery premises has
247objected to the issuance of a license in accordance with section 16C; 13 of 15
248 (4) the commission determines that the applicant retains or owns an interest, directly or
249indirectly, in the business of a licensee under section 12 or 15;
250 (5) the commission determines that the applicant retains or owns an interest, directly or
251indirectly, in more than 1 business licensed under section 18;
252 (6) the applicant has not furnished the requisite license fee or bond; or
253 (7) the commission determines that the co-partners, corporate officials or stockholders of
254the applicant do not meet the requirements of paragraphs (2), (4) and (5) or that the agent or
255manager who intends to conduct the farmer-distillery business on the applicant's behalf does not
256meet the requirements or that the co-partners, officials, stockholders, agent or manager remain
257undisclosed.
258 SECTION 15. Section 19G of said chapter 138, as so appearing, is hereby amended by
259striking out subsection (a) and inserting in place thereof the following subsection: —
260 (a) The commission may issue a tenant brewer license which authorizes the licensee to
261manufacture or package malt beverages on the premises of a host brewer to any individual
262applicant who holds a social security number or individual taxpayer identification number and is
263a resident of the commonwealth or to a corporation, partnership or other entity which complies
264with the requirements of section 26 and is a holder of a certificate of compliance issued pursuant
265to section 18B. An applicant for a tenant brewer license shall provide the commission and the
266department of revenue with a true copy of the applicable alcoholic beverage license to
267manufacture, export and import as issued by the appropriate licensing authority. 14 of 15
268 To be eligible for a tenant brewer license, the applicant shall: (i) be licensed pursuant to
269section 19 or section 19C or a license holder outside the commonwealth that is authorized to
270manufacture, export and import malt beverages; (ii) comply with any federal law regulating the
271manufacture, export or import of malt beverages as identified by the commission in a written
272guidance that shall be issued to each host brewer, tenant brewer and wholesaler licensed pursuant
273to section 18; and (iii) shall have an approved alternating proprietorship arrangement that allows
274the applicant to use the facilities, equipment and employees of a host brewer.
275 A tenant brewer may import such raw materials as are required solely for the production
276and packaging of the malt beverages including, without limitation, bulk malt beverages produced
277by the tenant brewer at its brewery of origin. The bulk malt beverages imported by the tenant
278brewer shall be packaged and shipped back to the tenant brewer's brewery of origin or to a
279wholesaler licensed pursuant to section 18 or to a license holder outside the commonwealth
280authorized to import malt beverages designated by the tenant brewer within 10 days after receipt
281by the host brewer.
282 Any product produced or packaged at the host brewer's premises shall be removed from
283the host brewer's premises within 10 days after the brewing or packaging process is completed.
284The finished product shall be returned to the tenant brewer's brewery of origin or to a wholesaler
285licensed pursuant to section 18 or to a license holder outside the commonwealth authorized to
286import malt beverages designated by the tenant brewer.
287 SECTION 16. Said chapter 138 is hereby amended by striking out section 26, as so
288appearing, and inserting in place thereof the following section:— 15 of 15
289 Section 26. No license for the sale of alcoholic beverages or alcohol and no vehicle
290permit for the transportation thereof shall be issued to any person who does not, at the time of the
291person’s application therefor, hold a social security number or individual taxpayer identification
292number, or to any agent of any such person, and no person who does not hold a social security
293number or individual taxpayer identification number shall be appointed as manager or other
294principal representative of any licensee; provided, that nothing herein shall prevent the granting
295of a license under section eighteen A to any corporation organized under the laws of a foreign
296country or the granting of a vehicle permit to such a corporation so licensed.
297 No corporation, organized under the laws of the commonwealth or of any other state or
298foreign country, shall be given a license to sell in any manner any alcoholic beverages unless
299such corporation shall have first appointed, in such manner as the licensing authorities by
300regulation prescribe, as manager or other principal representative, a holder of a social security
301number or individual taxpayer identification number, and shall have vested in the manager or
302other principal representative by properly authorized and executed written delegation as full
303authority and control of the premises, described in the license of such corporation, and of the
304conduct of all business therein relative to alcoholic beverages as the licensee itself could in any
305way have and exercise if it were a natural person resident in the commonwealth, nor unless such
306manager or representative is, with respect to the manager or representative’s character,
307satisfactory to the licensing authorities.
308 No provision of this chapter shall impair any right growing out of any treaty to which the
309United States is a party.