HOUSE DOCKET, NO. 28        FILED ON: 1/15/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 28

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act modernizing the Massachusetts alcohol laws.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. The first paragraph of section 12 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting after the fourth sentence the following sentence:- A licensing authority may authorize a licensee to serve alcoholic beverages on non-contiguous premises as the authority may deem reasonable and proper, and approve in writing; subject to the guidelines set by the commission.

SECTION 2. The fourth paragraph of said section of said chapter, as so appearing, is hereby amended by striking the fourth sentence.

SECTION 3. Subparagraph (a) of section 12C of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the eighth sentence and inserting in place thereof the following sentence:- The license shall be renewable annually and shall be subject to an annual fee.

SECTION 4. Section 13 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- The license under this section and for each certified copy thereof shall be subject to a fee.

SECTION 5. Said section of said chapter, as so appearing, is hereby further amended by striking out the fourth sentence and inserting in place thereof the following sentence:- The license for each airline corporation under this section and for each certified copy thereof shall be subject to a fee.

SECTION 6. Said section of said chapter, as so appearing, is hereby further amended by striking out the seventh sentence and inserting in place thereof the following sentence:- The license for each vessel under this section and for each certified copy thereof shall be subject to a fee.

SECTION 7. Said section of said chapter, as so appearing, is hereby further amended by striking out the ninth sentence and inserting in place thereof the following sentence:- The license to a ship chandler for the sales shall be subject to a fee.

SECTION 8. The first paragraph of section 15 of chapter 138 of the General Laws, as most recently amended by chapter 219 of the acts of 2016, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- Each applicant for a new license or the transfer of a license shall pay a fee to the commission when the issuing of the new or transferred license would result in the applicant owning more than 3 licenses.

SECTION 9. Said paragraph of said section of said chapter, as so appearing, is hereby further amended by striking out the sixth sentence.

SECTION 10. The first paragraph of section 18 of chapter 138 of the General Laws, as appearing n the 2016 Official Edition, is hereby amended by striking out the fifth sentence and inserting in place thereof the following sentence:- A license issued under this section to sell and import all alcoholic beverages shall be subject to a fee.

SECTION 11. Said paragraph of said section of said chapter, as so appearing, is hereby further amended by striking out the sixth sentence and inserting in place thereof the following sentence:- There shall be an annual license fee for a license to sell and import wines and malt beverages only issued under this section that shall be set based on the gallonage sold as follows: 7,500 gallons or less per annum;  more than 7,500 and less than 10,000 gallons per annum; and more than 10,000 gallons per annum.

SECTION 12. Section 18A of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the third paragraph and inserting in place thereof the following paragraph:- Each license issued under this section shall be subject to an annual fee; provided, however, that for any licensee who represents more than 1 principal, there shall be a license fee set for each principal more than 1; and provided further, that there shall be a cap on fees paid to represent multiple principals that shall be set no higher than the annual fee plus the fee to represent 3 principals more than 1.

SECTION 13. The first paragraph of section 18B of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- All certificates shall be issued to expire December thirty-first of the year of issuance and shall be subject to a fee.

SECTION 14. Section 18C of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (b) and inserting in place thereof the following subparagraph:- (b) There shall be an annual license fee for each importer under this section that shall be set based on the gallonage imported by the importer as follows:

5,000 gallons or less per year;

More than 5,000 gallons per year but not more than 20,000 gallons per year;

More than 20,000 gallons per year but not more than 100,000 gallons per year;

More than 100,000 gallons per year but not more than 200,000 gallons per year;

More than 200,000 gallons per year but not more than 1,000,000 gallons per year; and

Each additional 1,000,000 gallons per year.

SECTION 15. Section 19 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the fourth paragraph and inserting in place thereof the following paragraph:- There shall be a license fee for each manufacturer of alcoholic beverages that shall be set, in respect of each plant, considering the circumstances of the licensee’s probable volume of sales under this section, the capacity of his plant and the location thereof, that the commission shall deem just and proper; provided that there shall be a license fee for each manufacturer of cider or other alcoholic beverage made from apples shall be set as the commission shall deem just and proper, but no such fee shall be collected from any such manufacturer for the making of cider, the sale of which is authorized by section three without a license.

SECTION 16. The first paragraph of section 19A of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The commission may annually grant to individual citizens of the commonwealth employed as salesmen for licenses under section 18, 18A, 19B, 19C, or 19D and to any individual employed as a salesman for a license under section eighteen who is also an officer, shareholder or partner of such licensee, permits which shall authorize such salesmen on behalf of their employers to solicit orders for alcoholic beverages from any licensee under this chapter to whom their employers are authorized to sell such beverages; provided that any such permit shall be subject to a fee.

SECTION 17. Section 19B of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (l) and inserting in place thereof the following subparagraph:- (l) There shall be an annual license fee for each winegrower that shall be set, in respect of each winery, based on the wine gallonage produced by the winery as follows:

5,000 gallons or less per year;

More than 5,000 and less than 20,000 gallons per year;

More than 20,000 gallons and less than 100,000 gallons per year;

More than 100,000 and less than 200,000 gallons per year;

More than 200,000 and less than 1,000,000 gallons per year;

Each additional 1,000,000 gallons per year. 

SECTION 18. Section 19C of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (l) and inserting in place thereof the following subparagraph:- (l) There shall be an annual license fee for each farmer-brewer that shall be set, in respect of each brewery, based on the malt beverage barrelage produced by the brewery as follows:

5,000 barrels or less per year;

More than 5,000 and less than 20,000 barrels per year;

More than 20,000 barrels and less than 100,000 barrels per year;

More than 100,000 and less than 200,000 barrels per year;

More than 200,000 and less than 1,000,000 barrels per year;

Each additional 1,000,000 barrels per year. 

For the above purposes, a barrel shall be thirty-one gallons.

SECTION 19. Section 19D of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (l) and inserting in place thereof the following subparagraph:- (l) There shall be an annual license fee for each pub brewer that shall be set, in respect of each pub brewery, based on the malt barrelage produced by the pub brewery as follows:

5,000 barrels or less per year;

More than 5,000 but less than 60,000 barrels per year;

60,000 barrels or more per year.

For the above stated purposes, a barrel shall be 31 gallons.

SECTION 20. Section 19E of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subparagraph (m) and inserting in place thereof the following subparagraph:- (m) There shall be an annual license fee for a farmer-distiller that shall be set, in respect to each farmer-distillery, as follows:

5,000 proof gallons or less per year;

More than 5,000 and less than 20,000 proof gallons per year;

More than 20,000 barrels and less than 100,000 proof gallons per year;

More than 100,000 and less than 200,000 proof gallons per year;

More than 200,000 and less than 1,000,000 proof gallons per year;

Each additional 1,000,000 proof gallons per year.

For the purpose of this section “proof gallon” shall have the meaning set forth in section 21.

SECTION 21. Subparagraph (c) of section 19F of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking the first sentence and inserting in place thereof the following sentence:- There shall be a fee for a license issued pursuant to this section; provided that an affiliate, franchise or subsidiary of the winery shall require a separate license.

SECTION 22. Said subparagraph of said section of said chapter, as so appearing, is hereby further amended by striking the second sentence and inserting in place thereof the following sentence:- The annual renewal of each such license shall be subject to a fee.

SECTION 23. Section 19G of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking subparagraph (c) and inserting in place thereof the following subparagraph:- (c) The annual license issued under this section shall be subject to an annual fee.

SECTION 24. The first paragraph of section 20 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- The permit under this section shall be subject to an annual fee.

SECTION 25. The second paragraph of said section of said chapter, as so appearing, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- The special permit under this section shall be subject to a fee.

SECTION 26. The third paragraph of said section of said chapter, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Special seasonal permits may be granted by the commission upon payment of a fee for each permit, which shall authorize any licensee under section 18 or 19 to store malt beverages in the same city or town in which their licensed premises are located; but the storage shall be in a place properly equipped for the refrigeration of malt beverages and that the authorization shall be effective only for the period between April and October thirty-first in any year. 

SECTION 27. The second paragraph of section 22 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- The permit fee for each vehicle shall be subject to a fee.

SECTION 28. The third paragraph of said section of said chapter, as so appearing, is hereby further amended by striking out the first sentence and inserting in place thereof the following sentence:- The railroad or car corporation or the owner or operator of any vessel or shipping company or any common carrier by air may, if authorized by a permit issued by the commission, transport and deliver alcoholic beverages or alcohol; and the fee for such a permit covering cars, vessels or aircraft thereof shall be subject to a fee.

SECTION 29. Said section of said chapter, as so appearing, is hereby further amended by striking out the sixth sentence and inserting in place thereof the following sentence:- Such a permit shall be subject to a fee.

SECTION 30. Said section of said chapter, as so appearing, is hereby further amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:- Certified copies of any permit issued under this section shall be furnished subject to a fee.

SECTION 31. Section 23 of chapter 138, as appearing in the 2016 Official Edition, is hereby amended by inserting after the second paragraph the following paragraph:- No applicant shall be issued a license under this chapter unless such applicant is, with respect to their character, satisfactory to the licensing authorities.

SECTION 32. Chapter 138, as appearing in the 2016 Official Edition, is hereby amended by striking section 27 and inserting in place thereof the following section:-

Section 27. All fees for licenses and permits authorized to be granted by the commission under this chapter shall be paid to the commission. All moneys payable under section twenty-one, shall be paid into the state treasury and shall be credited to the General Fund. All fees for licenses and permits authorized to be granted by the local licensing authorities under this chapter shall be paid into the treasuries of their respective cities and towns.

SECTION 33. Section 67 of chapter 138 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended, in line 7, by striking the word “five” and inserting in place thereof the following words:- ten business.

SECTION 34. Section 76 of chapter 138, as appearing in the 2016 Official Edition, is hereby amended by striking out the third sentence and inserting in place thereof the following sentence:- The license issued under this section shall be subject to a fee.

SECTION 35. Not later than one year from the effective date of this act, the executive office for administration and finance established in section 2 of chapter 7 of the General Laws, as appearing in the 2016 Official Edition, shall promulgate regulations updating the license and permit fees set forth in chapter 138 of the General Laws, as amended by this act. In promulgating such regulations, said office must demonstrate that any such fee will promote public safety; enhance the operation of the alcoholic beverages control commission established under section 70 of chapter 10; and will not unduly and adversely affect Massachusetts citizens and customers of the Commonwealth, or the competitive environment in Massachusetts.

SECTION 36. Sections 3 through 8, inclusive, sections 10 through 30, inclusive, and section 32 shall take effect upon promulgation of the regulations required by section 35 of this act or one year from the effective date of this act, whichever occurs first.