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HD 3110

An Act relative to the sale of liquor licenses

194th Legislature (2025-2026) Introduced by Mark Cusack

Allows cities to charge a transfer fee up to 25% of a liquor license sale price when a license is transferred, as a new local revenue tool (optional).

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Bill Summary · HD 3110

Summary: An Act relative to the sale of liquor licenses (HD 3110)

Overview

HD 3110, filed January 16, 2025 by Representative Mark J. Cusack (5th Norfolk), proposes a local-option mechanism for jurisdictions to charge a fee when a liquor license is sold from one licensee to another. The bill would authorize cities and towns to adopt and collect a transfer fee tied to the sale price of a license, with a cap of 25%. The measure references Chapter 138 of the General Laws (liquor licensing) and was previously filed in an earlier session (House No. 278 in 2023-2024).

Purpose and intent

  • Create a local revenue source by enabling municipalities to impose a transfer fee on the sale of liquor licenses.
  • Ensure the fee is charged only when a license is transferred from one licensee to another and only with the local government’s acceptance of the section.

Key provisions

  • Section 1: Upon a city or town’s acceptance of the section, the local licensing authority may assess and collect a fee for any liquor license issued under Chapter 138 when that license is sold by the licensee to another licensee.
    • The fee is assessed at the time the transfer is approved by the local authority.
    • The fee amount is set by the city or town but must not exceed 25% of the purchase price (amount paid for the license).
  • Section 2: The act takes effect upon passage.
  • The bill creates a local option; communities that do not adopt or accept the section would not impose the fee.

Affected parties

  • Liquor licensees selling licenses (sellers) and buyers (licensees transferring ownership).
  • Local boards or agencies responsible for liquor licensing (e.g., city or town license commissioners or boards).
  • Municipal treasuries or budgeting authorities that would receive revenues from the transfer fees.
  • General public, indirectly, through potential effects on license market dynamics and local business costs.

Fiscal and administrative considerations

  • Revenue: Fees would flow to the adopting city or town’s treasury, providing a new income stream tied to license transfers.
  • Administrative process: Fees are due at the time of transfer approval; municipalities would need to implement a mechanism to calculate, collect, and track these fees, and to ensure proper transfer documentation.

Legislative context and notes

  • Similar matter previously filed in 2023-2024 as House No. 278.
  • The bill is described as “proposed” and would apply only in jurisdictions that opt to accept this section of the statute.
  • No statewide mandate; adoption is at the discretion of each city or town.

Potential implications to consider

  • Market impact: May influence the price of licenses or transfer activity in jurisdictions that adopt the fee.
  • Equity and fairness: Community considerations regarding who bears the fee and how it affects small license holders.
  • Administrative burden: Localities would need to establish procedures to administer the transfer fee.

Summary takeaway

HD 3110 would empower Massachusetts municipalities to monetize liquor license transfers by charging a fee up to 25% of the license sale price, collected at transfer approval, effective upon passage. Adoption is optional for each city or town and would create a new local revenue tool tied to the transfer of licenses issued under Chapter 138.

Compiled from official sources — confirm details with the bill’s official record.

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