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 revocable privileges granted by the authority
of the Commonwealth. Any licensee who violates M.G.L. Chapter 138 or any
regulation promulgated by the Alcoholic Beverages Control Commission ("ABCC")
or the local licensing authority may be stripped of their privilege of
holding a license, after a hearing.
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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.
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Who issues restaurant licensees 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 package
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.
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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-Premise), 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-Premise) commonly
referred to as a "Package Store License"
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What are the four categories of retail liquor
licenses?
Liquor licenses fall into one of four categories:
1. All Alcoholic
2. Wine only
3. Malt only
4. Wine and Malt
In certain cities and towns that choose to accept a specific state law,
certain businesses that hold a wine and malt beverages license under section
12 of chapter 138 of the General Laws as well as a common victualler's
license may be given a permit to sell also cordials and liqueurs. This
cordials and liqueurs permit must be granted by the local liquor licensing
authorities with the approval of the ABCC.
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How many different types of pouring licenses
are there?
There are six different kinds of pouring licenses:
- Hotel
- Restaurant
- Tavern
- Club
- General-On-Premise
- War Veterans Club.
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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. whether 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 the business of a restaurant, bar,
nightclub, hotel, tavern) or a social club, a fraternal club, or a war
veterans club 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 time limit after which this disqualification
ends.
B. "Package Store" License Under Section
15
Generally an individual applying for a "package goods store"
or "package store" license (i.e. a license for the sale at retail
of alcoholic beverages not to be drunk on the premises where sold) must
be both a citizen and a resident of the Commonwealth of Massachusetts
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
and every partner is both a citizen and a resident of the Commonwealth
of Massachusetts and 21 years of age or older.
A corporation may hold such a liquor license provided
that the corporation is organized under the laws of the Commonwealth of
Massachusetts, that all directors of the corporation are citizens of the
United States and that a majority of the directors of the corporation
are residents of the Commonwealth of Massachusetts. A corporation who
holds such a license must appoint 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 [corporation] licensee itself could
in any way have and experience 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 license shall be issued to any applicant who has been convicted
of a felony. Further, " no firm, corporation, association or other
combination of persons, directly or indirectly, or through any agent,
employee, stockholder, officer or other person or any subsidiary whatsoever
shall be granted, in the aggregate, more than three such licenses in the
commonwealth, or be granted more than one such license in a town or two
in a city."
C. "Special License" under Section 14
A "Special License" to pour liquor at an indoor or outdoor activity
or enterprise may be issued to the responsible manager of any indoor or
outdoor activity or enterprise. Such a 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.
1. Special License 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
authorities only to a person acting on behalf of a nonprofit organization.
No other person may be issued a special license to sell all alcoholic
beverages.
2. 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 authorities 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 twelve is pending before the licensing authorities.
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Are license applicants barred from holding a
liquor license if they have been convicted of a crime?
Yes. An on-premise 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-premise license (package store) may not be issued "to any
applicant who has been convicted of a felony."
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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-premise 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.
In calendar year 2000, the most recent federal census was taken. In May,
2001, each city and town was notified by the ABCC what the quota of license
was as determined by this most recent census. Questions about this new
quota and any newly available licenses may be directed to either the ABCC
or to the local licensing authority in any city or town.
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How far does an establishment selling alcoholic
beverages
have to be from a church or school?
No specified distance; however under Section 16C
of M.G.L. Chapter 138, premises located within 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 innholder 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.
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How long does a licensee have to appeal to the
Alcoholic Beverage 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.
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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 are:
- 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.
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How long does a licensee have to appeal a decision
made by the ABCC?
Thirty (30) days from receipt of the written decision
is granted to an establishment to appeal to Superior Court a decision
made by the ABCC.
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Can a bowling alley obtain a liquor license?
Today. YES !!! The previous law, enacted in 1962, prohibited alcoholic
beverages licenses from being issued for that part of a building used
for a bowling alley. This law was repealed by the Legislature and the
Governor effective in July, 2000. So today, and since July, 2000, based
on a properly field application, an alcoholic beverages license may be
granted and approved by the local licensing authority and the ABCC to
be issued to any part of a bowling alley, including the lanes, scoring
tables areas and benches.
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Can a charity sell alcoholic beverages by auction as a fundraiser
?
A charity may sell wine only as a fundraiser and only if the charity applies
for and receives the proper license from the local licensing authority
with the prior approval of the ABCC.
Since 1997, certain eligible charities could obtain a license that would
allow them to sell wine at auction for fundraising by the charity that
held the license To obtain such a charity wine auction license ("CWAL"),
the charity must be "organized under chapter 180 of the General Laws
and registered with the public charities division of the office of the
attorney general." These charity wine auctions must be held only
at the location described on the CWAL, but may be licensed to be held
at "premises which are either the principal place of business or
headquarters of the applicant and which are legally zoned to allow such
sales or which are the premises of a licensee under section 12 or section
15 of chapter 138 of the General Laws." When issued, the law imposes
a number of restrictions and controls on the auction, one of which requires
all wine sold under a CWAL to be donated to the charity without charge
and all proceeds from the sales to be used for the charity's charitable
purposes.
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Can a retailer sell alcoholic beverages by auction?
A "package store" licensed under section 15 of chapter 138
of the General laws may sell wine only by auction only if the package
store applies for and receives the proper license from the local licensing
authority with the prior approval of the ABCC.
Since 1997, package stores could also obtain a license that would allow
them to sell wine at auction To obtain such a wine auction license, the
package store be issued a license under section 15 of chapter 138. These
wine auctions must be held only at the location described on the wine
auction license but may be licensed to be held at "premises which
are either the principal place of business or headquarters of the applicant
and which are legally zoned to allow such sales or which are the premises
of a licensee under section 12 or section 15 of chapter 138 of the General
Laws."
The law imposes a number of restrictions and controls on the wine auction
license, one of which restricts the duration and number of wine auction
licenses that may be issued to any package store. No wine auction license
"shall be for a duration of more than ten consecutive calendar days
and no holder of any such temporary license shall be granted more than
two such temporary licenses in a calendar year."
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Can a charity sell alcoholic beverages other than by auction as a
fundraiser ?
A. Charity Wine Pouring License.
Yes, a charity may sell wine only, other than by auction, as a fundraiser
only if the charity applies for and receives the proper license from the
local licensing authority with the prior approval of the ABCC. Since 1997,
certain eligible charities could obtain a license that would allow them
to sell wine for consumption on the premises where it was sold (a so-called
"pouring" license, just like the licenses that permit restaurants,
hotels, clubs, taverns and nightclubs to sell wine on their premises.)
To obtain such a charity wine pouring license ("CWPL"), the charity
must be "organized under chapter 180 of the General Laws and registered
with the public charities division of the office of the attorney general."
A CWPL must be held only at the location described on the CWPL, but may
be licensed to be held at "premises which are either the principal
place of business or headquarters of the applicant and which are legally
zoned to allow such sales or which are the premises of a licensee under
section 12 of chapter 138 of the General Laws."
When issued, the law imposes a number of restrictions and controls on
the CWPL, one of which requires all wine sold under a CWPL to be donated
to the charity without charge and all proceeds from the sales to be used
for the charity's charitable purposes. The law also permits wine donated
to be "dispensed by the employees or agents of the donors of the
wine, without compensation for the dispensing services provided."
B. Charity Partner Wine Pouring License
Yes, a charity may also sell wine only as a fundraiser in partnership
with the holder of an existing pouring license under section 12 of chapter
138 of the General Laws only if the charity and the existing section 12
license holder jointly apply for and receive the proper license from the
local licensing authority with the prior approval of the ABCC.
To obtain such a charity partner wine pouring license ("CPWPL"),
the charity must be "organized under chapter 180 of the General Laws
and registered with the public charities division of the office of the
attorney general." A CPWPL must be held only at the location described
on the CPWPL, and must be held at only "the premises which are the
premises of the joint applicant which is a licensee under said section
12 of said chapter 138.
When issued, the law imposes a number of restrictions and controls on
the CPWPL, one of which requires all wine sold under a CPWPL to be donated
to the charity without charge. Another restriction requires that no CPWPL
"shall be for a duration of more than ten consecutive calendar days
and no holder of any such temporary license shall be granted such temporary
licenses permitting such sales on an aggregate of more than 20 days in
any calendar year." The law also permits wine donated to be "dispensed
by the employees or agents of the donors of the wine, without compensation
for the dispensing services provided."
In contrast to the CWPL however, not "all proceeds from the sales"
must be used for the charity's charitable purposes; rather, with a CPWPL,
only "[a] majority of the proceeds from such sales shall be used
for the nonprofit charitable corporation holder's charitable purposes.
Thus, the existing section 12 license holder may also benefit to a limited
degree from its partnership with the charity as a fundraiser.
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Can a retailer use a liquor 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]."
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What are the different kinds of liquor assets/property that can be
pledged?
The law permits three different kinds of liquor assets/property to be
pledged.
- These are:
1. Licenses that authorize the sale of alcoholic beverages.
2. Corporate Stock in a corporation that holds a license to sell alcoholic
beverages.
3. Alcoholic beverages themselves which a licensee is authorized to
sell.
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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 11:00 a.m.-11:00 p.m. Local
authorities may grant extended opening hours between 8:00 a.m. and 11:00
a.m. and extended closing hours between 11:00 p.m. and 2:00 a.m. In no
event can sales be made between 2:00 a.m. and 8:00 a.m.
What are the Holiday and Sunday Operating Hours
for "Pouring" establishments?
Holidays
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 12:00 noon.
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 1:00 a.m. and 12:00 noon.
The exception to 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 11:00 a.m.
and 12:00 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
Taverns:
No tavern licensee may sell alcoholic beverages on Sundays.
Restaurants, Hotels, Clubs and Veterans'
Clubs:
The general rule is that no licensee under section twelve shall sell
any alcoholic beverages on Sundays between one o'clock a.m. and twelve
o'clock 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 11:00 a.m. and 12:00 noon.
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
holders of 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.
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.
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.
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.
Can anyone bring their own beer, wine, or other alcoholic beverages into an establishment (so-called "BYOB")?
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 (so-called "BYOB" or "brown-bagging").
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.
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 and 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 1/2% or more of alcohol by volume at sixty degrees Fahrenheit, it is an "alcoholic beverage" and subject to the Liquor Control Act. If a product is composed or manufactured so that it contains less than 1/2% 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."
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 Regulation 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.
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 138, Section 34 shall prohibit any licensee from employing a person 18 years old or older for the direct handling, selling, mixing or serving of alcohol or alcoholic beverages.
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 if the
licensee can affirmatively prove that prior to permitting the service,
delivery or possession of alcoholic beverages by a person, the licensee
requested, was shown, examined and reasonably relied on either:
- 1. A Massachusetts Driver’s License;
2. A Massachusetts Liquor Identification
Card;
3. A Massachusetts Identification Card;
4. A Passport Issued by the United States
or a government that is officially recognized
by the United States;
5. A Passport Card for a Passport issued
by the United States; and,
6. A Military Identification Card.
Reliance by a licensee
on any other form of identification to determine
proof of age does not give the licensee a
defense. See Advisory
regarding identification.
As of September 1, 2001,neither the state
Liquor Control Act nor the regulations of
the ABCC require identification to be checked
as a condition to selling or delivering an
alcoholic beverage to any person. Each licensee
is left to decide for itself what policy to
establish on checking identification prior
accepting orders for, selling and delivering
alcoholic beverages. Some licensees adopt
a conservative policy, as they may legally
do under the Liquor Control Act and the ABCC
regulations, and require proof of age from
any person who appears to be younger than
thirty (30) years of age and accept as proof
of age only the four (4) pieces of identification
that give a licensee a defense to any criminal.
Therefore, while a licensee may choose to rely upon any
form of identification to obtain proof of
age, only these four (4) 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.
http://www.malegislature.gov/laws/generallaws/parti/titlexx/chapter138/section34b/print
If a patron is not driving, does it matter how many drinks s/he 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 person is not driving. In fact, 12-20% of alcohol-related accidents involve pedestrians.
Is Spirits tasting allowed in Massachusetts?
No. As of September 1, 2001, only wine tasting and malt beverages tasting (or so-called "beer tasting") are authorized by Massachusetts law. These wine tastings and malt beverages tastings can only be held at premises licensed under Section 15 ("package stores") or restaurants, hotels or function halls licensed under Section 12. Each wine tasting or malt beverages tasting event must be conducted in full compliance with the conditions set by the state Liquor Control Act.
Do restaurants, hotels, function halls and package stores need to meet certain requirements while conducting wine tasting or malt beverages tasting?
Yes. Restaurants, hotels, and function halls holding wine tasting 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 (1) ounce per serving.
Package stores may not charge for any wine-tasting and they must also limit the size of any serving of wine to one ounce. The wines tasted must also be available for sale on such premises.
For a malt beverages tasting, restaurants, hotels, and function halls must provide food with the malt beverages tasted 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 malt beverages and the size of each serving is limited to two (2) ounces per serving.
Package stores may not charge for any tasting of malt beverages and they must also limit the size of any serving of a malt beverage to two (2) ounces. The malt beverages tasted must also be available for sale on such premises.
Can Section 12 (on-premise) 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 approval of the Local Board and the ABCC.
