Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S162 Compare Versions

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22 SENATE DOCKET, NO. 1218 FILED ON: 1/19/2023
33 SENATE . . . . . . . . . . . . . . No. 162
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 James B. Eldridge
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 :James B. EldridgeMiddlesex and Worcester 1 of 15
1616 SENATE DOCKET, NO. 1218 FILED ON: 1/19/2023
1717 SENATE . . . . . . . . . . . . . . No. 162
1818 By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 162) of James B. Eldridge for
1919 legislation to enhance diversity in the awarding of liquor licenses. Consumer Protection and
2020 Professional Licensure.
2121 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2222 SEE SENATE, NO. 2867 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 appearing in the 2020
3232 2Official Edition, is hereby amended by inserting after the word "number”, in line 4, the following
3333 3words:- or for the purposes of chapter 138 an individual taxpayer identification number.
3434 4 SECTION 2. Said section 13A of said chapter 30A, as so appearing, is hereby further
3535 5amended by inserting after the word “number”, in lines 5, 7, the second time it appears, and 10,
3636 6the following words:- or individual taxpayer identification number.
3737 7 SECTION 3. Section 15 of chapter 138 of the General Laws, as so appearing, is hereby
3838 8amended by striking out the first sentence and inserting in place thereof the following sentence:- 2 of 15
3939 9 The local licensing authorities in any city or town which votes to authorize the granting
4040 10of licenses for the sale of all alcoholic beverages, and such authorities in any city or town which
4141 11votes to authorize the granting of licenses for the sale of wines and malt beverages only, may
4242 12grant licenses for the sale at retail of such alcoholic beverages or wines and malt beverages, as
4343 13the case may be, not to be drunk on the premises, to applicants therefor who hold a valid social
4444 14security number or individual taxpayer identification number and are residents of the
4545 15commonwealth, or partnerships composed solely of such individuals that hold a valid social
4646 16security number or individual taxpayer identification number and are residents or to corporations
4747 17organized under the laws of the commonwealth and whereof all directors shall hold a social
4848 18security number or individual taxpayer identification number and a majority residents of the
4949 19commonwealth or to limited liability companies or limited liability partnerships organized under
5050 20the laws of the commonwealth, subject to such conditions as the commission may prescribe by
5151 21regulation to address issues of residency and the requirements for a manager or principal
5252 22representative of a non-citizen licensee under section 26 as qualifications for a limited liability
5353 23company or limited liability partnership to hold a license pursuant to this section and sections 18,
5454 2418A, 19, 19B and 19C, or to an applicant licensed to operate as a farmer-winery under said
5555 25section 19B or in any other state.
5656 26 SECTION 4. Section 18 of said chapter 138, as so appearing, is hereby amended by
5757 27striking out the first sentence and inserting in place thereof the following sentence:-
5858 28 The commission may issue to any individual who holds a social security number or
5959 29individual taxpayer identification number and is a resident of the commonwealth, and to any ship
6060 30chandler licensed under the provisions of section thirteen and to partnerships composed solely of
6161 31such individuals, and to corporations organized under the laws of the commonwealth whereof all 3 of 15
6262 32the directors hold a valid social security number or individual taxpayer identification number and
6363 33a majority thereof residents of the commonwealth and to limited liability companies and limited
6464 34liability partnerships organized under the laws of the commonwealth, subject to such conditions
6565 35as the commission may prescribe by regulation to address issues of residency and the
6666 36requirements for a manager or principal representative of a non-citizen licensee under section 26
6767 37as qualifications for a limited liability company or limited liability partnership to hold a license
6868 38pursuant to this section and sections 15, 18A, 19, 19B and 19C, licenses as wholesalers and
6969 39importers (1) to sell for resale to other licensees under this chapter alcoholic beverages
7070 40manufactured by any manufacturer licensed under the provisions of section nineteen and to
7171 41import alcoholic beverages into the commonwealth from holders of certificates issued under
7272 42section eighteen B whose licensed premises are located in other states and foreign countries for
7373 43sale to such licensees, or (2) to sell for resale wines and malt beverages so manufactured to such
7474 44licensees and to import as aforesaid wines and malt beverages for sale to such licensees.
7575 45 SECTION 5. Section 18A of said chapter 138, as so appearing, is hereby amended by
7676 46striking out the first paragraph and inserting in place thereof the following paragraph:-
7777 47 The commission may issue to any individual who holds a social security number or
7878 48individual taxpayer identification number and is a resident of the commonwealth, or to any
7979 49partnership composed solely of such individuals, or to any corporation organized under the laws
8080 50of the commonwealth or organized under the laws of any other state of the United States or of
8181 51any foreign country and admitted to do business in the commonwealth or to a limited liability
8282 52company or a limited liability partnership organized under the laws of the commonwealth,
8383 53subject to such conditions as the commission may prescribe by regulation to address issues of
8484 54residency and the requirements for a manager or principal representative of a non-citizen 4 of 15
8585 55licensee under section 26 as qualifications for a limited liability company or limited liability
8686 56partnership to hold a license pursuant to this section and sections 15, 18, 19, 19B and 19C, a
8787 57license which shall authorize the licensee to act as agent, broker or solicitor for any specified
8888 58individual, corporation or partnership in another state or foreign country engaged in the business
8989 59of manufacturing, importing or selling alcoholic beverages, hereinafter called the principal, and,
9090 60on behalf of such principal, to solicit orders for such beverages from holders of licenses under
9191 61section eighteen only. A license granted hereunder shall authorize representation of one principal
9292 62only, but the licensee may also, in the discretion of the commission, be licensed hereunder to
9393 63represent other principals. No licensee hereunder shall buy or sell alcoholic beverages for his
9494 64own account, and no such beverages shall be brought into the commonwealth in pursuance of the
9595 65exercise of such a license otherwise than through a licensee under said section eighteen.
9696 66 SECTION 6. Section 18C of said chapter 138, as so appearing, is hereby amended by
9797 67striking out subsection (a) and inserting in place thereof the following subsection:-
9898 68 (a) The commission may issue to an individual who holds a social security number or
9999 69individual taxpayer identification number and is a resident of the commonwealth or to a
100100 70corporation organized under the laws of the commonwealth whose directors are all holders of a
101101 71social security number or individual taxpayer identification number and a majority of them
102102 72residents of the commonwealth, or to a limited liability company or limited liability partnership
103103 73organized under the laws of the commonwealth whose members are all holders of a social
104104 74security number or individual taxpayer identification number and a majority of them residents of
105105 75the commonwealth, a license to import alcoholic beverages into the commonwealth for use only
106106 76in connection with the manufacture of food products, including ice cream. Nothing in this section
107107 77shall authorize the holder of an importer's license issued under this section to sell alcoholic 5 of 15
108108 78beverages as he is licensed to import only, or to export alcoholic beverages from the
109109 79commonwealth into any other state or into a foreign country. A vote in a city or town pursuant to
110110 80section 11 shall not prevent the granting or renewal of a license under this section. All alcoholic
111111 81beverages purchased by a licensee under this section, and all alcoholic beverages shipped into
112112 82the commonwealth pursuant to any such purchase, shall be warehoused at the warehouse
113113 83facilities of the licensee and held in his physical possession at the warehouse. An importer under
114114 84this section shall keep such records as the commission may prescribe and shall file with the
115115 85commission, as often as it may require, duplicates or copies of those records. The commission
116116 86shall have, at all times through its designated officers or agents, access to all books, records and
117117 87other documents of each licensed importer relating to the licensee's importer business.
118118 88 SECTION 7. Section 19 of said chapter 138, as so appearing, is hereby amended by
119119 89striking out subsection (a) and inserting in place thereof the following subsection:-
120120 90 (a) The commission may issue to any individual who holds a social security number or
121121 91individual taxpayer identification number and is a resident of the commonwealth and to
122122 92partnerships, composed solely of such individuals, and to corporations organized under the laws
123123 93of this commonwealth or organized under the laws of any other state of the United States and
124124 94admitted to do business in this commonwealth and to limited liability companies and limited
125125 95liability partnerships organized under the laws of the commonwealth, subject to such conditions
126126 96as the commission may prescribe by regulation to address issues of residency and the need for a
127127 97license manager under section 26 as qualifications for a limited liability company or limited
128128 98liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19B and
129129 9919C, licenses to manufacture alcoholic beverages. Manufacturers of such beverages may sell the
130130 100same to any licensee holding a valid license granted by the licensing authorities for the sale 6 of 15
131131 101within the commonwealth in accordance with the provisions of this chapter, and may also sell
132132 102such beverages for export from this commonwealth into any state where the sale of the same is
133133 103not by law prohibited, and into any foreign country; and manufacturers of such beverages may
134134 104sell the same to any registered pharmacist holding a certificate of fitness under section thirty and
135135 105also as authorized by section twenty-eight.
136136 106 Subject to such regulations as may be prescribed by the commission, licensees under this
137137 107section may rectify or blend, but only upon such premises and under such conditions as the
138138 108commission shall approve, alcoholic beverages manufactured by them. All alcoholic beverages
139139 109sold by any manufacturer thereof shall be sold and delivered in such manner, and under such
140140 110conditions, and with such labels or other marks to identify the manufacturer, as the commission
141141 111shall from time to time prescribe by regulations; provided, that sales of such beverages may be
142142 112made in kegs, casks, barrels or bottles, to holders of wholesalers' and importers' licenses; and
143143 113provided, further, that sale of wines and malt beverages may be made in kegs, casks or barrels by
144144 114any manufacturer licensed under this section to licensees authorized to sell such beverages under
145145 115section twelve, thirteen or fourteen and, for the sole purpose of resale in the containers in which
146146 116the same were delivered, to licensees under section fifteen. No licensee under section fifteen
147147 117shall resell beverages delivered to him in kegs, casks or barrels under this section, except in such
148148 118containers.
149149 119 Every licensed manufacturer of alcoholic beverages shall keep such records in such detail
150150 120and affording such information as the commission may from time to time prescribe, and shall file
151151 121with the commission, whenever and as often as it may require, duplicates of copies of such
152152 122records; and the commission shall at all times, through its designated officers or agents, have 7 of 15
153153 123access to all books, records and other documents of every licensed manufacturer relating to the
154154 124business which he is licensed hereunder to conduct.
155155 125 The license fee for each manufacturer of alcoholic beverages, in respect of each plant,
156156 126shall be such sum, not less than $6,000 nor more than $10,000, as under the circumstances of the
157157 127licensee's probable volume of sales under this section, the capacity of his plant and the location
158158 128thereof, the commission shall deem just and proper; provided, that the license fee for each
159159 129manufacturer of cider or other alcoholic beverage made from apples shall be such sum, not less
160160 130than twenty-five nor more than two hundred and fifty dollars, as the commission shall deem just
161161 131and proper, but no such fee shall be collected from any such manufacturer for the making of
162162 132cider, the sale of which is authorized by section three without a license.
163163 133 No vote in any city or town under section eleven shall prevent the granting or renewal of
164164 134a license under this section.
165165 135 SECTION 8. Section 19A of said chapter 138, as so appearing, is hereby amended by
166166 136striking out, in line 2, the word "citizens" and inserting in place thereof the following word:-
167167 137residents.
168168 138 SECTION 9. Section 19B of said chapter 138, as so appearing, is hereby amended by
169169 139striking out subsection (a) and inserting in place thereof the following subsection:-
170170 140 (a) For the purpose of encouraging the development of domestic vineyards, the
171171 141commission shall issue a farmer-winery license to any applicant who holds a social security
172172 142number or individual taxpayer identification number and is a resident of the commonwealth, and
173173 143to applying partnerships composed solely of such individuals, and to applying corporations
174174 144organized under the laws of the commonwealth or organized under the laws of any other state of 8 of 15
175175 145the United States and admitted to do business in this commonwealth and to applying limited
176176 146liability companies and limited liability partnerships organized under the laws of the
177177 147commonwealth, subject to such conditions as the commission may prescribe by regulation to
178178 148address issues of residency and the need for a license manager under section 26 as qualifications
179179 149for a limited liability company or limited liability partnership to hold a license pursuant to this
180180 150section and sections 15, 18, 18A, 19 and 19C, unless:
181181 151 (1) such person does not comply with reasonable application procedures required by the
182182 152commission; or
183183 153 (2) the commission determines that such person is not of responsible character; or
184184 154 (3) a church or school located within five hundred feet of the winery premises has
185185 155objected to issuance of the license in accordance with section sixteen C; or
186186 156 (4) the commission determines that the applicant retains or owns an interest, directly or
187187 157indirectly, in the business of a licensee under section twelve or fifteen; or
188188 158 (5) the commission determines that the applicant retains or owns an interest, directly or
189189 159indirectly in more than one business licensed under section eighteen; or
190190 160 (6) the applicant has not furnished the requisite license fee or bond; or
191191 161 (7) the commission determines that the co-partners, corporate officials or stockholders of
192192 162the applicant do not meet the requirements of paragraphs (2), (4) and (5), or that the manager or
193193 163agent intended to conduct the winery business on the applicant's behalf does not meet such
194194 164requirements, or that such co-partners, officials, stockholders, agent or manager remain
195195 165undisclosed. 9 of 15
196196 166 SECTION 10. Section 19C of said chapter 138, as so appearing, is hereby amended by
197197 167striking out subsection (a) and inserting in place thereof the following subsection:-
198198 168 (a) For the purpose of encouraging the development of domestic farms, the commission
199199 169shall issue a farmer-brewery license to any applicant who holds a social security number or
200200 170individual taxpayer identification number and is a resident of the commonwealth and to applying
201201 171partnerships composed solely of such individuals, and to applying corporations organized under
202202 172the laws of the commonwealth or organized under the laws of any other state of the United States
203203 173and admitted to do business in the commonwealth and to applying limited liability companies
204204 174and limited liability partnerships organized under the laws of the commonwealth, subject to such
205205 175conditions as the commission may prescribe by regulation to address issues of residency and the
206206 176need for a license manager under section 26 as qualifications for a limited liability company or
207207 177limited liability partnership to hold a license pursuant to this section and sections 15, 18, 18A, 19
208208 178and 19B, unless: (1) such person does not comply with reasonable application procedures
209209 179required by the commission; or
210210 180 (2) the commission determines that such person is not of responsible character; or
211211 181 (3) a church or school located within five hundred feet of the brewery premises has
212212 182objected to issuance of the license in accordance with section sixteen C; or
213213 183 (4) the commission determines that the applicant retains or owns an interest, directly or
214214 184indirectly, in the business of a licensee under section twelve or fifteen; or
215215 185 (5) the commission determines that the applicant retains or owns an interest, directly or
216216 186indirectly in more than one business licensed under section eighteen; or 10 of 15
217217 187 (6) the applicant has not furnished the requisite license fee or bond; or
218218 188 (7) the commission determines that the co-partners, corporate officials or stockholders of
219219 189the applicant do not meet the requirements of clauses (2), (4) and (5), or that the manager or
220220 190agent intended to conduct the farmer-brewery business on the applicant's behalf does not meet
221221 191such requirements, or that such co-partners, officials, stockholders, agent or manager remain
222222 192undisclosed.
223223 193 SECTION 11. Section 19D of said chapter 138, as so appearing, is hereby amended by
224224 194striking out subsection (a) and inserting in place thereof the following subsection:-
225225 195 (a) The commission shall issue a pub brewery license to an applicant who holds a social
226226 196security number or individual taxpayer identification number and is a resident of the
227227 197commonwealth and to applying partnerships and to applying corporations organized under the
228228 198laws of the commonwealth or organized under the laws of any other state and admitted to do
229229 199business in the commonwealth and to applying limited liability companies or limited liability
230230 200partnerships organized under the laws of the commonwealth unless:
231231 201 (1) such person does not comply with application procedures required by the
232232 202commission;
233233 203 (2) the commission determines that such applicant is not of responsible character;
234234 204 (3) a church or school located within 500 feet of the brewery premises has objected to the
235235 205issuance of such license in accordance with the provisions of section 16C and the commission
236236 206finds that the pub brewery premises are detrimental to the spiritual activities of such church; 11 of 15
237237 207 (4) the commission determines that the applicant retains or owns an interest, directly or
238238 208indirectly, in the business of a licensee under section 15 or a business which would be licensed
239239 209under said section 15 if it were located within the commonwealth;
240240 210 (5) the commission determines that the applicant retains or owns an interest, directly or
241241 211indirectly, in a business license under section 18 or a business which would be licensed under
242242 212said section 18 if it were located within the commonwealth;
243243 213 (6) the commission determines that the applicant retains or owns an interest, directly or
244244 214indirectly, in any activity or in any business directly or indirectly engaged in the business of
245245 215manufacturing any alcoholic beverages either within or outside of the commonwealth, except
246246 216any interest, directly or indirectly, in a pub brewery license under this section or any business
247247 217which would be licensed as a pub brewery under this section if it were located within the
248248 218commonwealth;
249249 219 (7) the commission determines that the applicant retains or owns an interest, directly or
250250 220indirectly, in the business of a holder of a certificate issued under section 18B;
251251 221 (8) the applicant has not furnished the requisite license fee or bond; or
252252 222 (9) the commission determines that the co-partners, corporate officials or stockholders of
253253 223the applicant do not meet the requirements of clauses (2), (4), (5), (6), (7) and (8), or that the
254254 224manager or agent intended to conduct the pub brewery business on the applicant's behalf does
255255 225not meet such requirements, or that such co-partners, officials, stockholders, agents or managers
256256 226remain undisclosed. 12 of 15
257257 227 SECTION 12. Section 19E of said chapter 138, as so appearing, is hereby amended by
258258 228striking out subsection (a) and inserting in place thereof the following subsection:-
259259 229 (a) For the purpose of encouraging the development of domestic farms, the commission
260260 230shall issue a farmer-distillery license to an applicant who holds a social security number or
261261 231individual taxpayer identification number and is a resident of the commonwealth and to applying
262262 232partnerships composed solely of such individuals, and to applying corporations organized under
263263 233the laws of the commonwealth or organized under the laws of any other state of the United States
264264 234and admitted to do business in the commonwealth, unless:-
265265 235 (1) such person does not comply with reasonable application procedures required by the
266266 236commission;
267267 237 (2) the commission determines that such person is not of responsible character;
268268 238 (3) a church or school located within 500 feet of the farmer-distillery premises has
269269 239objected to the issuance of a license in accordance with section 16C;
270270 240 (4) the commission determines that the applicant retains or owns an interest, directly or
271271 241indirectly, in the business of a licensee under section 12 or 15;
272272 242 (5) the commission determines that the applicant retains or owns an interest, directly or
273273 243indirectly, in more than 1 business licensed under section 18;
274274 244 (6) the applicant has not furnished the requisite license fee or bond; or
275275 245 (7) the commission determines that the co-partners, corporate officials or stockholders of
276276 246the applicant do not meet the requirements of paragraphs (2), (4) and (5) or that the agent or
277277 247manager who intends to conduct the farmer-distillery business on the applicant's behalf does not 13 of 15
278278 248meet the requirements or that the co-partners, officials, stockholders, agent or manager remain
279279 249undisclosed.
280280 250 SECTION 13. Section 19G of said chapter 138, as so appearing, is hereby amended by
281281 251striking out subsection (a) and inserting in place thereof the following subsection:-
282282 252 (a) The commission may issue a tenant brewer license which authorizes the licensee to
283283 253manufacture or package malt beverages on the premises of a host brewer to any individual
284284 254applicant who holds a social security number or individual taxpayer identification number and is
285285 255a resident of the commonwealth or to a corporation, partnership or other entity which complies
286286 256with the requirements of section 26 and is a holder of a certificate of compliance issued pursuant
287287 257to section 18B. An applicant for a tenant brewer license shall provide the commission and the
288288 258department of revenue with a true copy of the applicable alcoholic beverage license to
289289 259manufacture, export and import as issued by the appropriate licensing authority.
290290 260 To be eligible for a tenant brewer license, the applicant shall: (i) be licensed pursuant to
291291 261section 19 or section 19C or a license holder outside the commonwealth that is authorized to
292292 262manufacture, export and import malt beverages; (ii) comply with any federal law regulating the
293293 263manufacture, export or import of malt beverages as identified by the commission in a written
294294 264guidance that shall be issued to each host brewer, tenant brewer and wholesaler licensed pursuant
295295 265to section 18; and (iii) shall have an approved alternating proprietorship arrangement that allows
296296 266the applicant to use the facilities, equipment and employees of a host brewer.
297297 267 A tenant brewer may import such raw materials as are required solely for the production
298298 268and packaging of the malt beverages including, without limitation, bulk malt beverages produced
299299 269by the tenant brewer at its brewery of origin. The bulk malt beverages imported by the tenant 14 of 15
300300 270brewer shall be packaged and shipped back to the tenant brewer's brewery of origin or to a
301301 271wholesaler licensed pursuant to section 18 or to a license holder outside the commonwealth
302302 272authorized to import malt beverages designated by the tenant brewer within 10 days after receipt
303303 273by the host brewer.
304304 274 Any product produced or packaged at the host brewer's premises shall be removed from
305305 275the host brewer's premises within 10 days after the brewing or packaging process is completed.
306306 276The finished product shall be returned to the tenant brewer's brewery of origin or to a wholesaler
307307 277licensed pursuant to section 18 or to a license holder outside the commonwealth authorized to
308308 278import malt beverages designated by the tenant brewer.
309309 279 SECTION 14. Said chapter 138 is hereby amended by striking out section 26, as so
310310 280appearing, and inserting in place thereof the following section:-
311311 281 Section 26. No license for the sale of alcoholic beverages or alcohol and no vehicle
312312 282permit for the transportation thereof shall be issued to any person who does not, at the time of the
313313 283person’s application therefor, hold a social security number or individual taxpayer identification
314314 284number, or to any agent of any such person, and no person who does not hold a social security
315315 285number or individual taxpayer identification number shall be appointed as manager or other
316316 286principal representative of any licensee; provided, that nothing herein shall prevent the granting
317317 287of a license under section eighteen A to any corporation organized under the laws of a foreign
318318 288country or the granting of a vehicle permit to such a corporation so licensed.
319319 289 No corporation, organized under the laws of the commonwealth or of any other state or
320320 290foreign country, shall be given a license to sell in any manner any alcoholic beverages unless
321321 291such corporation shall have first appointed, in such manner as the licensing authorities by 15 of 15
322322 292regulation prescribe, as manager or other principal representative, a holder of a social security
323323 293number or individual taxpayer identification number, and shall have vested in the manager or
324324 294other principal representative by properly authorized and executed written delegation as full
325325 295authority and control of the premises, described in the license of such corporation, and of the
326326 296conduct of all business therein relative to alcoholic beverages as the licensee itself could in any
327327 297way have and exercise if it were a natural person resident in the commonwealth, nor unless such
328328 298manager or representative is, with respect to the manager or representative’s character,
329329 299satisfactory to the licensing authorities.
330330 300 No provision of this chapter shall impair any right growing out of any treaty to which the
331331 301United States is a party.