Law Offices of John P. Connell, P.C.: On November 12, 2013, the Joint Committee on Consumer Protection and Professional Licensure held a public hearing at the State House in Boston to discuss various bills introduced in connection with the Massachusetts Liquor Control Act (M.G.L. c. 138). Members of the alcoholic beverage industry came from throughout the Commonwealth to testify about these potential liquor law changes, some in support and others in opposition. Below are some highlights from the discussion of the most controversial bills up for endorsement.
House Bill 267
“An Act relative to small brewers” is a petition brought by Alice Hanion Peisch of Wellesley, which would grant small breweries more freedom in terminating their wholesalers. Under current law, M.G.L. c. 138, § 25E provides that any wholesaler that has sold an alcoholic beverage “brand” for more than six months may not be terminated by the brand’s supplying brewer without “good cause.” In effect, this current law turns the relationship between a supplying brewer and a distributor into that of a “franchise”.
Numerous small breweries are in favor of changing the current law; namely, Ipswitch Ale Brewery, Opa Opa Brewing Company, Idle Hands Craft Ales, Harpoon, and Boston Beer Company (“Samuel Adams”), who came to testify in the Bill’s favor. The breweries spoke of their experience supplying beer under the “franchise law” and unanimously opined the outdated nature of that current law. The Bill is “fair, necessary and overdue” stated the President of Ipswtich Ale Brewery. “The law made sense 40 years ago,” a representative of Samuel Adams said, “not today.”
M.G.L. c. 138, § 25E was indeed enacted 41 years ago when national breweries controlled the market and distributors were few and far between. The law was meant to protect mom-and-pop type distributors who had but one supplier to work with. During this time, smaller breweries, like those seen blossoming around the Commonwealth today, were not as prevalent.
Despite this industry change, however, several came forth to testify against the Bill as well. Their argument largely focused on the fact that the breweries covered under this Bill are not in fact “small” and that the breweries do in fact already have various freedoms with respect to their distribution agreements.
When the current success of the craft beer market was pointed out, the question became: why change? In response, a representative of Harpoon simply pointed out that “100% of craft brewers back this Bill.”
House Bill 3575
“An Act relative to certain licenses for the sale of alcoholic beverages in the city of Boston” is a petition by Edward F. Coppinger of Boston that would grant the Boston Licensing Board authority to issue Special Licenses to certain specified organizations every six months. As the law stands now, the named organizations must seek Special Licenses every thirty days if they want to offer alcoholic beverages for sale at their events. This means the organizations must appoint a different director every thirty days to fill out and sign a license application. If this Bill passes, allowing the sale of alcoholic beverages to further these organizations’ fundraising efforts could prove much easier. Among those testifying in support of this Bill was the West Roxbury Knights of Columbus, one the organizations that would be affected.
House Bill 281
“An Act relative to notification of licensees” is a petition by Angelo J. Puppolo of Springfield that would require every applicant for a § 15 retail “package store” license to serve notification via certified mail, instead of via newspaper, on all existing § 15 licensees in the city or town of the applicant licensee’s proposed location. This notification requirement would be placed on both applicants for a new § 15 license as well as applicants for a transfer of a § 15 license.
Senate Bill 93
“An Act providing municipal control of liquor licenses”, or more commonly known as the “Home Rule Petition”, would give the local licensing authorities of each city or town the discretion to determine what quantity of retail liquor licenses should be granted. Ayanna Pressley spoke in favor of this Bill, showing her desire for a “meaningful reform” of liquor laws due to the imbalance in the amount of package store licenses and restaurant licenses in the Commonwealth. Maintaining a need to correct this imbalance, by allowing more restaurant licenses, Ms. Pressley stated: “Success that isn’t shared really isn’t success at all.”
The Home Rule Petition has been the subject of one hearing so far at Boston’s City Hall and, following another one planned in the near future, the petition will be brought to the Committee for a vote.
CONTRIBUTED BY COURTNEY N. McGEE
© Law Offices of John P. Connell, P.C., 2013.