LICENSE COMMISSION

Frequently Asked Questions Concerning the Licensing Process

What is a license?

Does the ABCC issue licenses directly to any segments of the alcoholic beverages industry?

Who issues restaurant licenses and package store licenses?

How many classifications of retail licenses exist?

What are the four categories of retail liquor licenses?

How many different types of pouring licenses are there?

Are there any qualifications for being granted a retail liquor license?

Are license applicants barred from holding a liquor license if they have been convicted of a crime?

What is the quota system and on what is it based?

How far does an establishment selling alcoholic beverages have to be from a church or school?

How long does a licensee have to appeal to the Alcoholic Beverage Control Commission (ABCC) a decision made by the local licensing authority?

Can a bowling alley obtain a liquor license?

Can a charity sell alcoholic beverages by auction as a fundraiser?

Can a retailer sell alcoholic beverages by auction?

Can a retailer use a liquor license to secure a loan?

What are the different kinds of liquor assets/property that can be pledged?

Do local licensing boards set the hours during which restaurants can serve alcoholic beverages on weekdays?

Q: What is a license?
A: 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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Q: Does the ABCC issue licenses directly to any segments of the alcoholic beverages industry?
A: 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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Q: Who issues restaurant licenses and package store licenses?
A: 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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Q: How many classifications of retail licenses exist?
A: Under the Liquor Control Act (General Laws, Chapter 138), local licensing authorities may grant three classifications of retail licenses:

1. Licenses under Section 12 (On-Premise), commonly referred to as a "Pouring License";
2. Licenses under Section 14 (Special), commonly referred to as a "One-Day License"; and,
3. Licenses under Section 15 (Off-Premise) commonly referred to as a "Package Store License"

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Q: What are the four categories of retail liquor licenses?
A: 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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Q: How many different types of pouring licenses are there?
A: There are six different kinds of pouring licenses:

1. Hotel
2. Restaurant
3. Tavern
4. Club
5. General-On-Premise
6. War Veterans Club

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Q: Are there any qualifications for being granted a retail liquor license?
A: 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.

1. "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.
   
   
2. "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."
   
   
3. "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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Q: Are license applicants barred from holding a liquor license if they have been convicted of a crime?
A: 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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Q: What is the quota system and on what is it based?
A: 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. Currently, allowed in the City, there are 12 Wine/Malt Package Store Licenses, 12 All Alcohol Package Store Licenses, Unlimited annual Licenses for the sale of all kinds of alcoholic beverages under Section 12. (Pouring Licenses)

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.

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Q: How far does an establishment selling alcoholic beverages have to be from a church or school?
A: 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 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.

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Q: How long does a licensee have to appeal to the Alcoholic Beverage Control Commission (ABCC) a decision made by the local licensing authority?
A: 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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Q: Can a bowling alley obtain a liquor license?
A: 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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Q: Can a charity sell alcoholic beverages by auction as a fundraiser?
A: 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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Q: Can a retailer sell alcoholic beverages by auction?
A: 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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Q: Can a retailer use a liquor license to secure a loan?
A: 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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Q: What are the different kinds of liquor assets/property that can be pledged?
A: The law permits three different kinds of liquor assets/property to be pledged.

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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Q: Do local licensing boards set the hours during which restaurants can serve alcoholic beverages on weekdays?
A: 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.

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