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June 2003 -- On
April 3, 2003, the Government Regulations Committee convened at
the State House to hold a public hearing regarding a number of
bills relative to the alcohol industry. Following is a synopsis of
the bills that have been filed. This is provided as a service to
our clients and to other visitors of our web site. With the
exception of the two pieces of proposed legislation, Robert
Stefanik & Associates neither supports nor opposes these
ideas. We encourage open debate on these issues. All are
encouraged to respond to this editorial.
There are a many
bills being put before the House and the Senate with respect to
section 17 of the Massachusetts General Laws chapter 138. This law
currently stipulates the number of alcoholic beverage licenses a
city or town may issue based upon population, as determined by the
most recent census. This legislation would authorize the licensing
authority in the requesting towns to issue an additional license
for the sale of alcohol. The following municipalities have
requested such action: Milford (3); Millbury (4); Medford;
Hingham. As stated before we neither support nor oppose these
actions, however licensees in these towns should be aware that
with every new license created, the value of their own license
decreases.
Senate Bill
Number 436: An Act relative to an underage law enforcement
agent. This legislation would lawfully permit law enforcement
agents under the age of twenty-one, to work under the direction of
local police or the ABCC to purchase but not consume alcohol in
conjunction with a selective liquor enforcement program such as
sting operations. This bill further states that the underage
agent cannot deceive or attempt to coerce a seller of beverage
alcohol, and must leave the premises after an un-successful
attempt to purchase. This would actually protect licensees.
So-called “sting” operations have held up in court and are a
common tool used by law enforcement. With the passage of this
bill, if an underage agent were to use deceptive means to entice a
seller into selling, it would invalidate the action. There have
also been cases where an agent has gone to the bar and been
refused service, and then has gone to another area of the licensed
premises and been served. This bill would make such action
illegal.
House Bill number
1475: This is legislation that would amend Section 34B of the
Massachusetts General Laws, Chapter 138 to add to the specified
list of ID types, a valid photographic, non-duplicative driver’s
license issued by the registry or department of motor vehicles of
another state. Under the current law the statute reads one who is
licensed to sell alcoholic beverages can reasonably rely upon the
following types of items in order to check the age of a purchaser:
A) A valid driver’s license issued by the Massachusetts RMV.
B) A liquor purchase identification card issued by the
Massachusetts RMV, not to be confused with an “identification
card” issued by the RMV.
C) A valid passport issued by the U.S. government or by a
foreign government recognized by the U.S.; or
D) A valid U.S. military identification card
It seems crazy that a licensee can reasonably rely on a (for
example) Lithuanian passport, but not a Rhode Island Drivers’
License. We are a state that attracts many tourists; has many
resort areas and we have many colleges that attract a diverse
population. There has been talk of making Boston a “world class
city”; Cape Cod and the Berkshires are inundated with tourists at
different times of the year but cannot reasonably rely on the
drivers’ licenses of 3 bordering states!
This bill has been
filed many times in the past. I am told that both the MA Chief’s
of Police Assoc. and our Secretary of State are opposed to it,
claiming that underage drinking would increase. One ABCC
investigator has said the same.
To give you some
background on this issue, prior to the World Cup Games being held
in Foxborough, MA (approx. 10 years ago), the law stipulated only
two forms of I.D. would provide a licensee with a defense – a MA
Drivers’ License and a MA Liquor I.D. card. The law was amended to
include passports and military I.D.’s as a direct response to the
World Cup Games and the tourism that would result. The law was
supposed to be temporary and expire after 90 days. As we now know,
it was made permanent. I know of no studies to show that underage
drinking has increased as a direct result of making passports and
military I.D.’s a part of reasonable reliance.
Additionally, as I
have stated before, as a licensee, I should do everything in my
power to prevent the underage consumption of alcohol. However, if
a minor is able to go to another state (or use the internet) to
fraudulently obtain another state’s drivers’ license in their own
name, THAT is a problem for law enforcement, NOT for retail
sellers of beverage alcohol.
House Bill Number
1473: is an act providing for the certification of alcoholic
beverages licensees and servers of alcoholic beverages. This
legislation would establish an alcoholic beverage service-training
advisory council to be chaired by the chairman of the ABCC. It
would be the duty of the council to review and certify programs
for alcohol server training. The legislation would require all
servers of alcohol to undergo a training program, which would
instruct servers on various aspects of responsible service of
alcohol. The legislation would also stipulate a licensee who holds
an on premises license would be required to have all servers
undergo an approved training program before those persons could
legally serve. Licensees who violate these provisions could lose
their license or be denied renewal. It also states that a licensee
may not be charged with the crime of serving alcohol to a minor,
unless the minor is first charged with a crime.
Whereas many
municipalities in MA, and many states across the country, have
mandated server training, mandating server training within the
Commonwealth would be a good idea. Currently the cities & towns in
MA that have taken this step all seem to have different ideas
about training. This makes it difficult for a restaurant group
that has multiple locations. Also a “cottage industry” has arisen
from alcohol server training. There are many persons “certified”
in one program or another, but there is no oversight to ensure
that these persons are doing an adequate and effective job. It
should be noted that the server training advisory council would
not be paid for performing the functions of the council. However,
this bill has been around in one form or another for over ten
years and always dies in committee, so it is unlikely that it will
move out of committee this year.
House Bill Number
2975: This bill was written and submitted by myself. It simply
says that if a licensee has taken certain steps and made a
reasonable effort to ensure that his or her employees comply with
the law, the licensee will not suffer any consequences for an
employee’s violation of the law. The text of
this bill is based upon the Florida responsible vendor statutes,
created over ten years ago, and current Maine law. Simply put, if
a licensee is operating in a responsible manner there is nothing
in this bill that will hurt them. Nor will it cost any more money
or time to administer. If a licensee is irresponsible, there is
nothing in this proposed legislation that will save them. If you
wish to see the full text, please call or write our office.
Senate bill 394:
This is an Act relative to the sale of alcoholic Beverages by
Licensed Veterans organizations. This legislation would amend the
current statute to strike the restrictions which state that
alcohol can only be served to members of the post and guests
introduced by the members and to no others. That will allow such
Veteran organizations to serve alcoholic beverages to the general
public and no longer restrict them to selling only to their
members and their member’s guests. We neither support nor
oppose this legislation. However it should be noted that licenses
for veteran’s organizations are not a part of the aforementioned
quota system, nor do the organizations pay the same licensing fees
as a restaurant or similar type of business. This is the reason
behind them serving only members and the guest of a member. By
letting them serve the general public, they now have a distinct
advantage over bars & restaurants.
House bill
numbers 2625 & 2594 are acts relative to Liquor Liability
Insurance. This legislation would amend section 12 of MGLA Chapter
138 to require applicants seeking to be granted a license or
seeking to renew a license, to provide proof of coverage under a
liquor liability insurance policy. In our opinion, mandating
liquor liability insurance is unnecessary. Most licensees already
carry liquor liability insurance. It is a minority that does not.
The legislator that wrote H. #2594 has admitted to this. We have
spoken with numerous persons and organizations around the country
about this issue. Mandated insurance will only make the cost rise,
not decrease. There is one possible exception to this. If a state
also has “dram shop” laws, laws that will, among other things, put
a cap on monetary awards, then mandated insurance might possibly
decrease in price. Massachusetts does not have dram shop laws. If
a suit is won for $10,000,000, the next case is for $15,000,000
and each time it goes up. When insurance companies start paying
skyrocketing claims, they must raise premiums. The only real
winners in this situation are the civil attorneys. Interestingly
enough, the legislator that wrote H. #2594 is an attorney and he
works for a law firm that handles a large amount of liquor
liability litigation. In our opinion, a legislator that writes
legislation that will benefit him financially and submits it to
his own committee for approval is a clear conflict of interest.
Yet another interesting thought is that this only applies to
on-premise licensees but not off premise (package stores, etc.).
We will, in the
coming weeks publish a more detailed examination of this subject.
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