Amendment #805, as changed to H.4200

Amendment #805, as changed to H4200

Tenant Brewers

Representatives Ferguson of Holden and Zlotnik of Gardner Ms. Ferguson of Holden and Mr. Zlotnik move to amend the bill by inserting the following 4 sections:-

SECTION 19C. Section 1 of chapter 138 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting after the definition of “Farmer-winery” the following definition:-

“Host brewer”, any person or entity licensed pursuant to the provisions of sections 19 or 19C to manufacture malt beverages who has entered into an alternating proprietorship arrangement with a tenant brewer approved by the US Department of the Treasury Alcohol and Tobacco Tax Trade Bureau for the purpose of manufacturing or packaging malt beverages on behalf of the tenant brewer.

SECTION 19D. Section 1 of said chapter 138 is hereby further amended by adding after the definition of “Tavern” the following new definition:-

“Tenant Brewer”, a person or entity that has been licensed pursuant to the provisions of section 19, section 19C or a license holder outside the commonwealth that is authorized to manufacture, export and import malt beverages and has a transportation permit issued pursuant to section 22 who has entered into an alternating proprietorship arrangement with a host brewer approved by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau for the purpose of manufacturing or packaging malt beverages at a host brewer’s premises.

SECTION 19E. Section 18 of said chapter 138 is hereby amended in the sixth paragraph by striking out, in line 87, the following words “and section 19F” and inserting in place thereof, the following:-, section 19F and section 19G.

SECTION 19F. Said chapter 138 is hereby amended by inserting the following new section:-

Section 19G. Tenant Brewer License

(a) The commission may issue a tenant brewer license which authorizes the holder thereof to manufacture or package malt beverages on the premises of a host brewer to any individual applicant who is a resident and citizen of the commonwealth and to any corporation, partnership or other entity which complies with the requirements set forth in section 26 and is a holder of a certificate of compliance issued pursuant to section 18B. An applicant for a tenant brewer license shall provide the commission and the department of revenue with a true copy of the applicable alcoholic beverage license to manufacture, export and import as issued by the appropriate licensing authority.

To be eligible for a tenant brewer license, the applicant must (i) be licensed pursuant to the provisions of section 19C or section 19D or is licensed in any other state to manufacture, export and import malt beverages; (ii)comply with any federal law regulating the manufacture, export or import of malt beverages as identified by the commission in written guidance that shall be issued to each host brewer, tenant brewer and wholesaler licensed pursuant to section 18 ; and (iii) must have an approved alternating proprietorship arrangement that allows the applicant to use the facilities, equipment, and employees of a host brewer.

A tenant brewer may import such raw materials as are required solely for the production and packaging of the malt beverage, including without limitation bulk malt beverage produced by the tenant brewer at its brewery of origin. The bulk malt beverage imported by the tenant brewer must be packaged and shipped back to the tenant brewer’s brewery of origin or to a wholesaler licensed pursuant to section 18 or to a license holder outside the commonwealth authorized to import malt beverages designated by the tenant brewer within 10 days of receipt by the host brewer.

Any product produced or packaged at the host brewer’s premises must be removed from the host brewer’s premises within 10 days after the brewing or packaging process is completed. The finished product must be returned to the tenant brewer’s brewery of origin or to a wholesaler licensed pursuant to section 18 or to a license holder outside the commonwealth authorized to import malt beverages designated by the tenant brewer.

(b) The commission shall require a tenant brewer and a host brewer to maintain a record or log indicating which equipment is being used at any time by the tenant brewer in the production or packaging of malt beverages and which employees are working on production or packaging of the tenant brewer's product. A tenant brewer shall be subject to the same reporting requirements as the host brewer.

A tenant brewer license issued pursuant to this section does not grant the licensee any right to sell malt beverages in the commonwealth to any person or entity except to a wholesaler licensed pursuant to section 18. A tenant brewer licensee shall only be permitted to manufacture or package malt beverages as set forth in this section.

(d) For the purposes of this section, the term “package” shall mean a keg, cask, barrel, bottle, can or other package approved by the United States Department of the Treasury Alcohol and Tobacco Tax and Trade Bureau for malt beverages. For the purposes of this section, the term “brewery of origin” shall mean any brewery at which the tenant brewer is duly licensed to manufacture malt beverages other than at the host brewer’s premises.;

And moves to further amend the bill by inserting the following section:-

SECTION 30A. The department of revenue shall promulgate rules and regulations for the collection of the excise as it applies to licensees issued pursuant to section 19G of chapter 138 of the General Laws.