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SECTION VI
Licensing Procedures and Business Operation
Property Rights in a License
MGL CH. 138, SEC. 23
A licensee has no property interest in any document or paper evidencing the granting of a license. Upon expiration, suspension, revocation, cancellation or forfeiture of the license or permit, the licensing authorities shall be entitled on demand to the immediate possession of the license.
License Renewals
MGL CH. 138, SEC. 16A, 23, 67
Every license and permit granted under this chapter shall expire on December 31 of the year of issue provided it has not been cancelled or revoked within its term. Pouring and package store licenses shall be automatically renewed for the next annual license period provided the licensee submits its renewal application by November 30 and pays any license fee. A seasonal license will automatically be renewed upon application and payment of fee by the holder during the month prior to the commencement of the seasonal period. For example, if the seasonal period begins April 1, the license would be renewed in March. If the application is not for the same type of license or for the same premises, it shall be treated as an application for a new license. Any application may be rejected for cause by the local licensing authority. Any license that is rejected may be appealed to the ABCC.
Transfer of License, Change of Location
MGL CH. 138, SEC 23
Any license may, upon application, be transferred from one location to another, or the description of the licensed premises may be changed, with the approval of the local licensing authority and ABCC. No new license fee shall be required for such transfer, but the local licensing authority may increase the annual fee already paid by the license holder. If the local licensing authority refuses to grant or fail to act upon an application for a transfer of location, the applicant may appeal to the ABCC within 30 days of filing the application. Any license may be transferred to any other individual partnership or corporation qualified to receive such license if approved by the local licensing board and ABCC. If the local licensing authority disapproves the transfer, the applicant may appeal that decision to the ABCC, whose decision is final.
Transfer of Corporate Stock
MGL CH 138, SEC 15A
No stock in a corporation holding a license to sell alcoholic beverages shall be transferred, pledged, or issued without first obtaining the permission of the local licensing authority and the ABCC. This does not apply to stockholders of corporations whose stock is publicly traded and who hold less than ten percent of the outstanding stock of the corporation entitled to vote at the annual meeting of the corporation.
Pledges of Licenses
MGL CH. 138, SEC 2, 15a, 23
Any holder of a license may pledge (a) the license; (b) corporate stock or (c) alcoholic beverages which he is authorized to sell, in order to secure a loan or debt. Any pledge of license and/or corporate stock must be approved by the local licensing authority and ABCC. A pledge does not affect the licensing authority's right to suspend, revoke, or otherwise regulate such license.
Lending or Borrowing Money
MGL CH. 138, SEC. 25
No licensee shall lend or borrow money, directly or indirectly, to or from any other licensee. No licensee shall receive or extend credit, directly or indirectly, for alcoholic beverages sold or delivered except in the usual course of business and for a period of not more than 60 days. A manufacturer, farmer-winery, farmer-brewery or wholesaler is not required to extend credit to any licensee. For these purposes, a certificate of compliance holder is not considered a licensee.
Delinquent Credit List MGL CH. 138, SEC.25
Any debt for alcoholic beverages which is not fully discharged within
60 days of the delivery of the good for which there was an extension of
credit shall be considered delinquent. Within 3 days after a licensee
becomes delinquent, the licensee who extended the credit shall mail a
letter of notice by certified mail to the ABCC, through the M & S
Service Bureau, which shall post the name and address of the delinquent
licensee on a delinquent list. Such posting constitutes notice to all
other licensees. No licensee shall sell or deliver alcoholic beverages
to a licensee whose name is posted on the delinquent list, except for
payment in cash on or before delivery. No licensee who is posted on the
delinquent list shall purchase or accept delivery of any alcoholic beverages
except for payment in cash on or before delivery. If a licensee on the
delinquent list transfers its license, the name on the new license will
appear on the delinquent list in its place. Upon full payment of the debt
for which the licensee's name was posted, the licensee who filed the notice
of delinquency shall within 24 hours of discharge notify the ABCC, through
the M & S Service Bureau, by certified mail, of the payment of the
debt. The ABCC, through the M & S Service Bureau shall immediately
strike the name from the delinquent list. Any person who violates this
section may be punished by a fine of not more than $5000.
Suspension or Revocation of License
MGL CH. 138, SEC. 64, 65
If, after a hearing, the local licensing authority
or ABCC finds that a licensee violated the conditions of the license or
any law of the Commonwealth, the local licensing authority or the ABCC
may modify, suspend, revoke or cancel a liquor license. If the license
is revoked, the licensee shall be disqualified to receive a license for
one year after the expiration of the term of the revoked license. If the
licensee is the owner of the premises described in the revoked license,
no license shall be issued for that premise for the remainder of the calendar
year.
Upon suspension, revocation, cancellation or forfeiture
of a license, the holder of the license must turn in its license to the
issuing authority. Refusal to return the license or failure to do so within
7 days following a request for return of the license shall be punished
by a fine of not more than $100 or by imprisonment for not more than 3
months, or both.
Appeals to the ABCC or Superior Court do not automatically stay a suspension
or revocation. The ABCC does not grant stays of local licensing authorities'
decisions pending administrative appeal to the ABCC, but local licensing
authorities may, in their discretion, grant a stay.
Appeals
MGL CH. 138, SEC 67
Any applicant or licensee may appeal a decision of the local licensing authority to the ABCC. The appeal must be made in writing within 5 days following written notice of the action of the local authority. An applicant may also appeal to the ABCC if the local licensing authority has failed to act upon its application within 30 days. The ABCC shall hold a hearing upon each appeal after notice has been given to all interested parties. The ABCC shall issue a written decision approving or disapproving the action of the local licensing authority. If the ABCC approves the action of he local licensing authority, the licensee may appeal the ABCC decision to the Superior Court. If the ABCC disapproves the action, the matter will be remanded to the local licensing authority for further action. The local licensing authority may also appeal to Superior Court. If the local licensing authority fails to take the action ordered by the ABCC, the Commission may, in specific circumstances, take further action on the license by way of re-appeal. However, no license may be issued without prior approval by the local authority.
Fine in Lieu of License Suspension
MGL CH. 138, SEC. 23
The ABCC may accept from any licensee an offer of compromise in lieu of suspension of any license or certificate. The licensee or certificate holder may petition the ABCC to accept such an offer of compromise within 20 days of receiving the notice of suspension. The fine in lieu of suspension shall be calculated according to a formula that is established by state law. That state law sets the fine amount as 50% of per diem gross profit multiplied by the number of license suspension days. Gross profit is determined as gross receipts on alcoholic beverage sales less the invoiced cost of goods sold per diem. No such fine, in any event, shall be less than $40 a day.
Local licensing authorities are not authorized to
offer or accept a fine in lieu of suspension.