SENATE DOCKET, NO. 560        FILED ON: 1/14/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 106

The Commonwealth of Massachusetts

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PRESENTED BY:

Michael D. Brady

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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 further regulating temporary inventory adjustments of malt beverages.

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PETITION OF:

SENATE DOCKET, NO. 560        FILED ON: 1/14/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 106

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 2153 OF 2017-2018.]

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 further regulating temporary inventory adjustments of malt beverages.

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. Chapter 138 of the General Laws is hereby amended by inserting after section

Section 22B. (1) The commission shall issue a certificate of registration to a licensee under section 18 who has common ownership or control with a business located outside the commonwealth, that holds a license or other permission that authorizes the exportation or sale of alcoholic beverages to this commonwealth; provided, that such registration shall be issued upon the condition that the holder shall furnish from time to time as the commission may require, but in no event more often than twice a year, information concerning all shipments of malt beverages received pursuant to this registration by the holder thereof.

(2) The commission may suspend any registration or levy a fine of not more than $1000.00 against any registration issued hereunder for a violation of the terms or conditions thereof. All registrations shall be issued to expire December thirty-first of the year of issuance and the fee therefore shall be $1,000.

(3) A registration under this section shall permit the holder thereof to import into the commonwealth or export from this commonwealth into any state where the sale of the same is not prohibited by law, and into any foreign country, malt beverages only for the purposes set forth in this section. A registration under this section shall authorize the holder:

a)To address product shortages that could not reasonably be anticipated by the

registrant and which the primary American source of supply cannot fulfill in a timely manner;

b)To transfer between the registrant, and entities located outside of the commonwealth under common ownership or control with the registrant, product that is within 30 days of any readily verifiable and consistently followed freshness return or exchange policy set by a supplier of the malt beverage that specifies the date on which the product must be removed from retail;

c)To balance and adjust excess inventory or shortfalls in inventory between or among the registrant and any entities inside or outside the commonwealth under common ownership or control with the registrant

(4) For the purposes of this section, common ownership or control shall mean one or more entities, including without limitation, corporations, limited liability companies, partnerships, joint ventures, business trusts or any other form of entity, where there is (a) common ownership of at least seventy-five percent (75%) of the ownership interests of the entities or (b) common ownership of at least seventy-five percent (75%) of the voting interests of the entities; and (c) the same parties control the management, policies and decisions of both entities including without limitation the right to direct, restrict, regulate or govern the management, decisions or policies of both entities.

(5) The registrant shall identify on the initial application for registration 39 the primary American source of supply from whom the malt beverages are obtained and on each semi annual filing required hereunder. The registration will be amended as necessary within 30 days after any semi

annual report required under this section to reflect any new or additional primary American sources of supply from whom the malt beverages are obtained.

(6) (a) No person who holds a certificate under section 18B shall hold or be granted a registration under this section. A person shall be deemed to hold a certificate under section 18B and a registration under this section if such person or any member of his immediate family holds such a certificate and registration. As used in this section the words ''immediate family'' shall include the certificate holder and his spouse and their parents, children, brothers and sisters.

(b) Violation of the provisions of this paragraph 6 shall be cause for the revocation of all certificates and licenses held by the certificate holder and his immediate family.

(c) In the case of a certificate holder or registrant any person or his immediate family who owns more than ten per cent of the stock of such corporation shall be deemed to be the certificate holder or registrant under this section.