1. What is a license? Black's Law Dictionary defines a "license" as a permit, granted by an appropriate governmental body, generally for a consideration, to a person, firm, or corporation to pursue some occupation or to carry on some business subject to regulation, under the police power. Liquor licenses and permits are revokable privileges granted by the authority of the Commonwealth. Any licensee who violates M.G.L. Chapter 138 or any regulation promulgated by the Commission or the local licensing authority may be stripped of their privilege of holding a license, after a hearing. 2. Does the ABCC issue licenses directly to any segments of the alcoholic beverages industry? Yes. The ABCC is the sole issuing authority for licenses to manufacturers (distillers, wineries, breweries), wholesalers and importers, railroads, airlines, ships and ship chandlers. It is the sole issuing authority of liquor transportation permits for express or trucking companies, ships, railroads, caterers, airlines and liquor retailers. It also issues permits to salespersons employed by wholesalers, and importers, brokers, farmer-wineries, and farmer-breweries. 3. Who issues restaurant licenses and package store licenses? The local licensing authority in the city or town where the business is located after the completion of a 3-step process. Step one: the local licensing authority grants a restaurant or pack store license; Step two: the Alcoholic Beverages Control Commission (ABCC) approves the granting of such a license. Following this approval by the ABCC, Step three: the local licensing authority may issue the license upon payment of the licensing fee. 4. How many classifications of retail licenses exist? Under the Liquor Control Act (General Laws, Chapter 138), local licensing authorities may grant three classifications of retail licenses: - Licenses under Section 12 (On-Premises), commonly referred to as a "Pouring License";
- Licenses under Section 14 (Special), commonly referred to as a "One-Day License"; and
- Licenses under Section 15 (Off-Premises) commonly referred to as a "Package Store License".
5. What are the four categories of retail liquor licenses? - All Alcoholic
- Wine Only
- Malt Only
- Wine and Malt
6. How many different types of pouring licenses are there? Six different kinds of pouring licenses exist. They are: Hotel, Restaurant, Tavern, Club, General-on-premise and War Veterans Club. 7. Are there any qualifications for being granted a retail liquor license? Yes. There are qualifications for a liquor license. These qualifications are set by the law. The type and number of qualifications for a liquor license depend on who the party is that is applying for the liquor license (i.e. where the party is an individual, a partnership, or a corporation) and what type of liquor license is being sought. - A. "Pouring Licenses under Section 12:
Generally, an individual applying for a "pouring license" under Section 12 (e.g. a liquor license for a restaurant, bar, nightclub, hotel, or tavern) must be a citizen of the United States and 21 years of age or older. A partnership (where two or more people are doing business together) may hold such a liquor license where each partner is a citizen of the United States and 21 years of age or older. A corporation may hold such a liquor license provided that a majority of the directors are not aliens and that the corporate licensee appoints a license manager who is an individual, 21 years of age or older, who is a citizen of the United States and has "vested in him (or her) by properly authorized and executed written delegation as full authority and control of the premises, described in the license of such corporation, and the conduct of all business therein relative to alcoholic beverages as the (corporate) licensee itself could in any way have and exercise if it were a "natural person". This license manager must be satisfactory to both the local and state licensing authorities with respect to his or her character. No "pouring" license shall be issued to any applicant who has been convicted of a violation of a federal or state narcotic drugs law. There is no limit after which this disqualification ends. - B. "Package Store" License Under Section 15 (This section intentionally omitted).
- C. "Special License under Section 14
A "Special License" to pour liquor at an indoor or outdoor activity or enterprises may be issued to the responsible manager of any indoor or outdoor activity or enterprise. Such license is issued by the local licensing authority in the city or town in which the activity or enterprise will be conducted. This type of license may be issued only to a natural person, although this natural person may be a person acting on behalf of a corporation, partnership, or other entity. No person may be granted such licenses permitting sales on an aggregate of more than 30 days in any calendar year. No special license, with only one very limited exception (i.e. a special license for a dining hall maintained by an incorporated educational institution authorized to grant degrees) shall permit sales on more than 30 days. - Special Licenses for All Alcoholic Beverages
Special licenses for the sale of all alcoholic beverages, wine or malt beverages, or any of these beverages may be issued by the local licensing authority only to a person acting on behalf of a non-profit organization. No other person may be issued a license to sell all alcoholic beverages. - Special License for Wine and/or Malt Beverages, or Both.
Special licenses for the sale of wine, malt beverages, or both, may be issued by the local licensing authority to any person. This type of special license may be issued to a person who is conducting an activity or enterprise for profit. No special license under Section 14 shall be granted to any person while his or her application for an annual license under Section 12 is pending before the licensing authorities.
8. Are license applicants barred from holding a liquor license if they have been convicted of a crime? Yes. An on-premises license (which includes the categories of restaurants, hotels, bars, taverns and clubs) may not be issued to a person "who has been convicted of a violation of a federal or state narcotic drug law." An off-premises license (package store) may not be issued "to any applicant who has been convicted of a felony". 9. What is the quota system and on what is it based? Massachusetts law places a restriction commonly referred to as a "quota" on the number of on-premises and off-premise licenses a city or town can issue. The quota is based on the municipality's population as certified by the Secretary of State. As of 1992, the population of any city or town for the purpose of setting this quota shall be that population enumerated in the most recent federal census. 10. How far does an establishment selling alcoholic beverages have to be from a church or school? No specific distance; however, under Section 16C of M.G.L. Chapter 138, premises located with a radius of five hundred feet of a school or church shall not be licensed to sell alcoholic beverages unless the local licensing authority determines in writing and after a hearing that the premises are not detrimental to the educational and spiritual activities of that church or school, unless the premises are those of an inn holder or unless the parts of the buildings are located ten or more floors above street level. The 500 foot distance under this Section 16C is measured in a straight line from the nearest point of the church or school to the nearest point of the premises to be licensed. 11. How long does a licensee have to appeal to the Alcoholic Beverages Control Commission (ABCC) a decision made by the local licensing authority? A licensee has five (5) days from receipt of the written decision to appeal to the ABCC a decision made by the local licensing authority. 12. What are the most common reasons for license applications being denied or returned without action? The most common reasons for license applications being denied or returned without action area: - Taxes are owed to the State.
- The investigator was unable to complete the report after numerous attempts to get information from the applicant.
- The City/Town Quota is full.
13. How long does a licensee have to appeal a decision made by the ABCC? Thirty (30) days from the receipt of the written decision are granted to an establishment to appeal to Superior Court a decision made by the ABCC. 14 Can a bowling alley obtain a liquor license? Today, no. Liquor licenses can not be issued for that part of a building used for a bowling alley. The law "grandfathers" any portion of a building or premises which was, prior to 1962, used for bowling and licensed to sell liquor. 15. Can a retailer use his/her license to secure a loan? Yes, but only under certain conditions. Massachusetts Law states that "any license granted under the provision of this chapter may be pledged for a loan provided approval of such a loan and pledge is given by the local licensing authority and the Commission (ABCC). 16. What are pledges? Black's Law Dictionary defines a "pledge" as a bailment or delivery of goods or property by way of a security for a debt or engagement, or as security for the performance of an act. 17. What are the different kinds of liquor assets/property that can be pledged? - License that authorize the sale of alcoholic beverages.
- Corporate Stock in a corporation that holds a license to sell alcoholic beverages.
- Alcoholic beverages themselves which a licensee is authorized to sell.
II Operating the Business 18. Do local licensing boards set the hours during which restaurants can serve alcoholic beverages on weekdays? To a limit. Massachusetts State Law says that restaurants can not be barred from serving alcohol between 11 a.m. - 11 p.m.. Local authorities nay grant extended opening hours between 8 a.m. and 11 a.m. and extended closing hours between 11 p.m. and 2 a.m. In no event can sales be made between 2 a.m. and 8 a.m. 19. What are the Holiday and Sunday Operating Hours for "Pouring" establishments? Holidays - A. Suffolk County (Boston, Chelsea, Winthrop and Revere):
No licensee under Section 12 shall sell alcoholic beverages on Christmas Day (or the day following when Christmas Day is on a Sunday), or on the last Monday in May (Memorial Day) between 2 a.m. and 12 noon. - B. Non-Suffolk County:
No licensee under Section 12 shall sell alcoholic beverages on Christmas Day (or the day following when Christmas Day is on a Sunday), or on the last Monday in May (Memorial Day) between 1 a.m. and 12 noon. The exception in the above is that if the local licensing authority accepts a certain state law, they may authorize a restaurant, hotel, club or veterans' club to sell alcoholic beverages between 11 a.m. and 12 noon on Christmas Day (or the day following when Christmas Day is on a Sunday) or on the last Monday in May (Memorial Day).
Sundays - A. Taverns:
No tavern licensee may sell alcoholic beverages on Sundays. - B. Restaurants, Hotels, Clubs and Veterans' Clubs:
The general rule is that no licensee under Section 12 shall sell any alcoholic beverages on Sundays between 1 a.m. and 12 noon. The two exceptions are: - (I) If the local licensing authority accepts a certain state law, they may authorize a tavern, restaurant, hotel, club or veterans' club to sell alcoholic beverages between 1 a.m. and 2 a.m. on Sundays.
- (II) If the local licensing authority accepts a certain state law they may authorize a restaurant, hotel, club or veterans' club to sell alcoholic beverages between 11 a.m. and 12 noon.
20. What are the Holiday and Sunday Operating Hours for Package Stores? (This section intentionally omitted) 21. If a restaurant occasionally runs out of a popular item on a busy night can the manager go to a package store and buy a few bottles to temporarily meet his/her customer's demands? No. All licensed retail establishments, including Special Licenses (so-called "One Day" Licenses), must purchase their alcoholic beverages from a licensed Massachusetts wholesaler, manufacturer, farmer winery, farmer brewery or holder of a Special Permit issued by the Commission. 22. May wholesalers offer retailers discounts on alcoholic beverages? Under certain conditions. Discounts may be offered by wholesalers to retailers on the basis of quantities of each item purchased and on the basis of the time of payment, provided any such discount is posted with the ABCC. If any discount is not posted with the ABCC, the discount may not be given, or even offered, to the retailer. 23. Is a wholesaler allowed to offer a retailer a discount if the retailer picks up the products at the wholesaler's warehouse? Yes. ABCC regulations state: "wholesalers may offer retailers a reasonable discount, not to exceed one percent, if they pick up items ordered from the wholesaler at the wholesaler's warehouse". Any such discount must be posted with the ABCC. If any discount is not posted with the ABCC, the discount may not be given to the retailer. 24. Can an out-of-state supplier/manufacturer (a Certificate of Compliance holder) sell directly to a retailer? No. An out-of-state supplier/manufacturer (a Certificate of Compliance holder) can only sell his or her alcoholic beverages to a wholesaler. 25. Can everyone bring their own beer, wine, or other alcoholic beverages into an establishment? Not if the establishment has a liquor license. If the establishment has a liquor license, then no one can carry onto the premises their own beer, wine or other alcoholic beverages for their own private consumption. If the establishment does not have a liquor license, then one must check with the city/town in which the establishment is located to learn if there is any local law dealing with bringing one's own beer onto an establishment for personal consumption. 26. Can "non-alcoholic beer" be served or sold to persons under twenty-one? Maybe. The State Liquor Control Act, G.L. Chapter 138, regulates "alcoholic beverages" as that term is defined by law. The law defines "alcoholic beverages" to be "any liquid intended for human consumption as a beverage containing one half of one percent or more of alcohol by volume at sixty degrees Fahrenheit." Thus, if a product is composed or manufactured so that it contains ½% or more of alcohol by volume at sixty degrees Fahrenheit, it is any "alcoholic beverage" and subject to the Liquor Control Act. If a product is composed or manufactured so that it contains less than ½% of alcohol by volume at sixty degrees Fahrenheit, it is not an "alcoholic beverage" and is not subject to the Liquor Control Act. A product that is not an "alcoholic beverage" may be subject to regulation by a city or town under its authority under G.L. Chapter 140. Therefore, one must also check the local laws of each city or town about "non-alcoholic beer". 27. Is a person dining alone in a restaurant able to order a pitcher of beer to go along with his/her meal? No. If such a request were honored, it would be a violation of the ABCC's Regulations commonly called the "Happy Hour" regulation. This regulation prohibits the sale or delivery of malt beverages or mixed drinks by the pitcher except to two or more persons at any one time. The Happy Hour regulations also prohibit the sale or delivery of more than two drinks to one person. 28. How old do you have to be to tend bar? At least 18 years of age. Although Chapter 138, Section 34 prohibits the sale or delivery of Alcoholic Beverages to a person under 21 years of age, nothing in Chapter 38, Section 34 shall prohibit any licensee from employing a person 18 years old or older from the direct handling, selling, mixing or serving of alcohol or alcoholic beverages. 29. What forms of identification are acceptable to prove that someone is twenty-one years of age or older, so that person may be served, delivered, or allowed to possess or purchase alcoholic beverages? If a licensee is charged with permitting the service, delivery, or possession of alcoholic beverages by a person under 21 years of age, under current state law, a licensee has a defense only of the licensee can affirmatively prove that prior to permitting the service, delivery or possession of alcoholic beverages by a person, the licensee requested,and was shown, examined and reasonably relied on either: - A valid Massachusetts driver license.
- A valid Massachusetts Liquor Identification card.
- A valid Passport issued by the United States government, or by the government, recognized by the United States government, of a foreign country.
- A valid United States issued active duty Military Identification card.
Reliance by a licensee of any other form of identification to determine proof of age does not give the licensee a defense. Therefore, while a licensee may choose to rely upon any form of identification to obtain proof of age, only these four forms of identification provide a defense to a charge of service, delivery, or possession of alcoholic beverages by a person under 21 years of age. 30. If a patron is not driving, does it matter how many drinks he/she is served? Yes. Massachusetts state law prohibits the service of alcoholic beverages to an intoxicated patron. It is still a violation to serve to an intoxicated person even if the person is not driving. In fact 12-20% of alcohol-related accidents involve pedestrians. 31. Is Spirits tasting allowed in Massachusetts? No. Only wine tastings are authorized by Massachusetts law. These wine tastings can only be held at premises licensed under Section 15 ("package stores") or restaurants, hotels or function halls licensed under Section 12. 32. Do restaurants, hotels, and function halls need to meet certain requirements while conducting wine tastings? Yes. Restaurants, hotels and function halls holding wine tastings must provide food with the wines and they must not solicit orders for any off-premises consumption. The manager of the restaurant, hotel, or function hall is responsible for controlling the dispensing of the wines and the size of each serving is limited to one ounce per serving. 33. Can Section 12 ("on premises") establishments with wine and malt licenses serve cordials and liqueurs? Yes. On January 14, 1994, Chapter 481 of the Acts of 1993 was signed which allows cities and towns, which vote to accept the provisions of the law, to permit common victualers licensed to sell wine and malt beverages under M.G.L. Chapter 138, section 12 to also sell liqueurs and cordials, subject to the approval of the Local Board and the ABCC. III "Club" Licenses 34. Can "Club Licensees" serve non-members? No. Clubs may serve alcoholic beverages only to members of the club. However, subject to regulations made by the local licensing authorities, a guest of a member may be served an alcoholic beverage after he/she has been introduced by the member as a guest. Should the member at any time leave the premises, the bartender can no longer serve the guest and the guest must also vacate the premises. 35. May Club Licensees restrict, distinguish or discriminate among their membership regarding entering certain area of the premises? No. No club licensee except a club that is distinctly private, may make any distinctions, discrimination, or restriction on account of race, color, religious creed, national origin, gender, sexual orientation, physical or mental disability or ancestry relative to the admission of any person to membership in the club, or to admission to the premises as a guest, or relative to the treatment of any member or guest at the club premises. 36. What determines whether a club is distinctly private? The decision whether a club is distinctly private is based on, but not limited to, the following criteria: - The extent to which the club facilities, alcoholic beverages licenses or both are used for commercial purposes.
- Club membership exceeding 200 persons.
- The availability of regular meal and beverage services on the premises.
- The degree to which the club receives payment for dues, fees, use of space, facilities, services, meals or beverages directly or indirectly from or on behalf of non-members for the trade or business or professional interests.
- The frequency with which the premises or part of it are used for conferences and meetings sponsored by or on behalf of trade or business or professional enterprises.
- The extent to which club facilities, like meal and beverage services, are utilized by non-members.
- The degree to which persons are selected for membership in the club on the basis of trade, business or professional associations or achievement.
- The number of partners, officers, directors or trustees of trade or business or professional enterprises who are members.
- The club's holding, by lease or otherwise, of any interest in real property owned by a governmental entity or municipality.
IV Ships and Ship Chandlers 37. Are there regulations on the serving of alcoholic beverages on a ship? Yes. This regulation is found in 204 CMR 19.00. These regulations include general restrictions such as: - All alcoholic beverages shall only be sold or delivered between 8 a.m. and 12:30 a.m. on Mondays through Saturdays and between 11 a.m. and 12:30 a.m. on Sundays.
- No alcoholic beverages shall be sold or delivered to passengers at dockside or prior to casting off, unless the ABCC gives specific permission sin writing.
- On trips of more than two hours, alcoholic beverages shall not be sold or delivered to passengers within one-half hour before the ship docks.
38. Are passengers restricted in the number of drinks they may possess at any one time on a licensed ship? Yes. No more than two drinks shall be sold, delivered or in possession of any one passenger at any one time. 39. Can passengers bring their own alcoholic beverages aboard a licensed ship cruising Boston Harbor? No. Passengers are prohibited from bringing on board ship their own alcoholic beverages for their own consumption. Passengers may only consume alcoholic beverages aboard a ship that are sold by the ship licensee. 40. May a captain terminate service of alcoholic beverages aboard ship whenever he chooses? Yes. None of the ABCC's regulations 204 CMR 19.00-19.15 limit in any way the power and authority of the Captain of a ship under the Law of the Sea. Therefore, he or she may at anytime order the termination of service of alcoholic beverages aboard ship. 41. May a licensed ship owner ask a beer supplier to sponsor a cruise? No. ABCC Regulations state that no manufacturer, importer, wholesaler, certificate of compliance holder or other Massachusetts licensee shall directly or indirectly sponsor, promote or advertise or use its name or the trade or brand name of any alcoholic beverage in connection with any cruise or event, public or private, aboard a ship. No ship shall allow or accept fund for such sponsorship, promotion of advertisement. 42. Can a licensed ship chandler buy liquor from a package store to fulfill an emergency all from a captain out at sea who is running short of liquor and needs an immediate delivery? No. A licensed ship chandler may not purchase alcohol from a package store to fulfill a ship's need. Ship chandlers may only purchase alcohol from an "authorized source" i.e. a Massachusetts wholesaler (licensed under Section 18 of G.L. Chapter 138), a Massachusetts Farmer-Winery (licensed under Section 19B), or a Massachusetts Farmer-Brewery (licensed under Section 19C). V. Fines, the Bottle Bill, and Other Miscellaneous Information 43. Is the ABCC required to accept from a licensee a fine as an offer in compromise in lieu of suspension? No. The ABCC may accept an offer in compromise in lieu of suspension from a licensee or certificate of compliance holder (an out-of-state supplier) if they petition the ABCC to accept this offer in compromise within twenty (20) days following notice of a suspension of the license. The fine to be paid is calculated according to the formula set out in Section 23 of Chapter 138: Fifty percent of the per diem gross profit multiplied by the number of license suspension days, with the gross profit to be determined as gross receipts on alcoholic beverage sales less the invoice cost of goods sold per diem. In no event is the fine less than $40 per day. It is worth noting that Local License Authorities are not authorized to accept "fines in lieu". 44. Can licensees cooperatively advertise? Yes. Licensees may jointly or cooperatively advertise product prices provided no more than seven licensees participate in the joint advertisement. 45. Can a retail package store... (This question intentionally omitted) 46. Can a bar, restaurant, or hotel offer a free drink? No. A bar, restaurant or hotel cannot offer any free drinks. However, a bar, restaurant, or hotel can include a drink as part of a meal package under certain circumstances. The ABCC's "Happy Hour" Regulation should be consulted for further information. 47. Can a bar, restaurant, or hotel increase the price for alcoholic beverages during the evenings when they have entertainment? No. Alcoholic beverages must be sold to all persons at the same price for a calendar week. An on-premises licensee cannot change its prices - up or down - during the week. 48-50 (These questions relate to package stores and were intentionally omitted.) |