MA Liquor Laws

So the high demand neighborhoods get to keep their restaurant corporation alcohol license monopolies? Thanks a lot state lawmakers, that will be sure help to revitalize downtown.
 
Well, that's... something. What a BS system.

Here's the proposed bill

The 13 zip codes are : 02118, 02119, 02121, 02122, 02124, 02125, 02126, 02128, 02129, 02130, 02131, 02132 and 02136.
Those are the green parts of this map

View attachment 55002
Why not do every zip code in the city.....

The city-owned licenses seem like a great idea, they keep them off the market so it remains affordable to a smaller business owner. By the way, that map is missing the 3 licenses that are going to Oak Square.
 
Why not do every zip code in the city.....
Agreed. Or get rid of the limits altogether. But this seems to be the limit of what can pass politically, and given what a shitshow the State House is, we might be lucky to get this modest improvement.

By the way, that map is missing the 3 licenses that are going to Oak Square.
Oh yeah, good point. That one is really odd. I'm not sure there are any official boundaries for what constitutes the "Oak Square section of Brighton." Also, I couldn't even guess why Oak Square gets a total of three while all the other zip codes will get 15 each.
 
Agreed. Or get rid of the limits altogether. But this seems to be the limit of what can pass politically, and given what a shitshow the State House is, we might be lucky to get this modest improvement.


Oh yeah, good point. That one is really odd. I'm not sure there are any official boundaries for what constitutes the "Oak Square section of Brighton." Also, I couldn't even guess why Oak Square gets a total of three while all the other zip codes will get 15 each.
Probably to get the vote of the state rep from that part of the city.
 
Also, I couldn't even guess why Oak Square gets a total of three while all the other zip codes will get 15 each.
I think the issue is that by ZIP code, Allston and Brighton have a lot more licenses than other non-downtown neighborhoods. So the need is not as pronounced. But as @BOS2BON alludes, the area is represented by a powerful legislator, so something had to be offered to him.
 
Why not do every zip code in the city.....
👆This is a great point. From an economics perspective, the highest demand for new licenses is in the Back Bay, Seaport and Downtown. Those areas happen to be the same areas that are excluded from the proposed new licenses. Business have been willing to pay over 500k for licenses in the Seaport etc, but not in the outlying neighborhoods. More licenses are needed everywhere in all neighborhoods but the market is telling us that licenses are particularly in demand in the excluded zip codes.
 
We really need "beer and wine" licenses to help fill the gap. It would provide a compromise with the current license holders to still hold onto a license of value, but also allow new restaurants to provide some alcoholic offerings. I'm not even sure if this is something that Mass currently does, but I've seen it be very successful in other cities even for bars. Walt's Bar in Eagle Rock is solely a beer and wine bar, and it was probably my favorite bar I visited in LA.

Sad to say that the only way we get any motion towards is to work with the people making this as difficult as it is.
 
We really need "beer and wine" licenses to help fill the gap. It would provide a compromise with the current license holders to still hold onto a license of value, but also allow new restaurants to provide some alcoholic offerings. I'm not even sure if this is something that Mass currently does, but I've seen it be very successful in other cities even for bars. Walt's Bar in Eagle Rock is solely a beer and wine bar, and it was probably my favorite bar I visited in LA.

Sad to say that the only way we get any motion towards is to work with the people making this as difficult as it is.

4. What are the four categories of retail liquor licenses?
Liquor licenses fall into one of four categories:
1) All alcoholic beverages (wine, malt beverages, and distilled spirits)
2) Wine only
3) Malt beverages only
4) Wine and malt beverages
 

4. What are the four categories of retail liquor licenses?
Liquor licenses fall into one of four categories:
1) All alcoholic beverages (wine, malt beverages, and distilled spirits)
2) Wine only
3) Malt beverages only
4) Wine and malt beverages
I'm not super well acquainted with the laws, are licenses 2-4 easier to acquire?
 
Its not that the license types are easier or harder; because there's a hard cap on the number of licences, getting *any* liquor license in Boston is difficult for restaurant owners, and the cap is also per type.
...The licensing board for the city of Boston may grant 665 licenses for the sale of all alcoholic beverages under section 12. The board may grant 250 licenses for the sale of all alcoholic beverages under section 15. The number of licenses for the sale of wines and malt beverages only, or both, in the city shall not exceed 320...
Most of the historically issued licences are unrestricted and transferrable by owner, which means they trade on the private market. Unlike most places, when you stop using a license it doesn't return to the city; it's an asset you keep it and can sell it, borrow against etc. Up to the present, it's not a just a matter of getting the ABC to issue you a license - it's affording the $600k a license costs on the resale market. That means the people who can afford them are big restaurant groups, who build restaurants on Seaport and back bay, not local corner pubs in Mattapan. There's 12 unrestricted licenses included in the newest legislation - you should expect to see all the big restauranteurs readying their applications because that is 12x 600k in free assets the state/city is getting ready to hand out, but also why the new bill primarily issues 195 restricted licenses to the poorer, historically license light communities, that *will* return to the city once they're no longer being used.
 
I swear the law should allow the city to match the price of any proposed private sale, so that they can retire them. Having the two tier system is asking for grift.
 
I'm not super well acquainted with the laws, are licenses 2-4 easier to acquire?
I'm not really sure what is easier. Stlin is correct, the total number of licenses is what's really holding things back. The particular type of license does result in some places, like a brewery, from being unable to serve cider or wine alongside its beer.

From Notch's website:

Do you serve cider, wine or seltzter?​

We are introduced a Gluten Free Radler (5%ABV) in February 2024! State law does not allow us to serve cider or wine.
 
Its not that the license types are easier or harder; because there's a hard cap on the number of licences, getting *any* liquor license in Boston is difficult for restaurant owners, and the cap is also per type.

Most of the historically issued licences are unrestricted and transferrable by owner, which means they trade on the private market. Unlike most places, when you stop using a license it doesn't return to the city; it's an asset you keep it and can sell it, borrow against etc. Up to the present, it's not a just a matter of getting the ABC to issue you a license - it's affording the $600k a license costs on the resale market. That means the people who can afford them are big restaurant groups, who build restaurants on Seaport and back bay, not local corner pubs in Mattapan. There's 12 unrestricted licenses included in the newest legislation - you should expect to see all the big restauranteurs readying their applications because that is 12x 600k in free assets the state/city is getting ready to hand out, but also why the new bill primarily issues 195 restricted licenses to the poorer, historically license light communities, that *will* return to the city once they're no longer being used.
That whole summary is pretty spot on.
One small thing, all the new licenses in the latest version of the proposed legislation are non-transferable. I think you're right that there were some new transferable licenses proposed this year, but those have fortunately been cut from the latest draft, so far as I can see.
 
That whole summary is pretty spot on.
One small thing, all the new licenses in the latest version of the proposed legislation are non-transferable. I think you're right that there were some new transferable licenses proposed this year, but those have fortunately been cut from the latest draft, so far as I can see.
Unfortunately not - while there is specific language for the 213 neighborhood/community space licences it creates, the very first section in the legislation is very straightforward - it increases the cap on traditional licenses by 12, with no language restricting them to being non-transferable. I think this bill is ultimately a compromise for the folks who wanted to preserve the value of their existing licenses, and represents a bit of a giveaway to get it passed, but I do agree that future "all Boston" licences should probably include the non-transferable language.

SECTION 1. Section 17 of chapter 138 of the General Laws, as appearing in the 2022 2 Official Edition, is hereby amended by striking out, in line 101, the figure “665” and inserting in 3 place thereof the following figure:- 677.
 
Would it be crazy to switch from a license-as-an-asset system to permit-with-an-annual fee system? Imagine a $10k/year fee to serve, but all existing licenses are converted to a ~60-year fee waiver, thus preserving their $600k value whilst opening up licenses to anyone who can pay the fee?

If $10k/yr seems too high or low, it'd work for any $X annual fee if the waiver is $600k/X years.
 
1. State estimates demand for new licenses under an unlimited scenario
2. Price licenses such that the vast majority would be willing and able to pay (say $10,000)
3. Estimate the total market value of liquor licenses bought and sold in the last 5 years
4. Provide incumbent license holders with a tax deduction equal to (1 x 2) that applies over 5 years
5. Increase price of (2) as needed to cover shortfalls and approach budget neutrality
6. Print cash based on new sales tax revenue from a million new successful businesses

6 point plan! Many people are saying it.
 
Oh, that bill passed the House and Senate. Healey signed it into law last week, with surprisingly little fanfare.

So, 225 new licenses over the next three years. If I'm reading this correctly, 95 of those become available immediately: 12 unrestricted, 65 restricted to certain zip codes, 3 for Oak Square, and 15 for theaters and community spaces. That article says eligible restaurants are already approaching the Licensing Board about those. Does anyone know where to track where the licenses get approved?
 

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