Bill
S 219
Allows off-premises liquor retailers to issue coupons that cut prices below posted rates, but never below the retailer’s invoiced cost after discounts.
Short summary
S.219 would amend Massachusetts General Laws, chapter 138, §25C(f) to explicitly allow retailers holding off‑premises liquor licenses to issue coupons that reduce the purchase price of alcoholic beverages below the retailer’s posted price, so long as the final price paid by the customer is not below the retailer’s invoiced cost after applicable discounts. The change creates an express exception in chapter 138 to permit retailer‑backed coupons while preventing sales below a retailer’s acquisition (invoice) cost.
Key provisions
- Amends Section 25C(f) of Chapter 138 by inserting a new permissive clause: a licensee authorized to sell alcoholic beverages at retail for off‑premises consumption may issue coupons for the purchase of alcoholic beverages at prices below current posted prices.
- Condition: the final cost to the customer cannot be below the retailer’s invoiced cost after applicable discounts (i.e., coupons cannot push the retail sale below the retailer’s invoice price).
- The insertion is prefaced by “Notwithstanding anything to the contrary contained in this chapter,” making this an explicit carve‑out from other statutory limitations in chapter 138.
Who would be affected
- Retailers with off‑premises alcohol licenses (package stores, grocery/liquor sections of supermarkets) — they would be explicitly permitted to issue retailer‑backed coupons subject to the invoice‑cost floor.
- Consumers — could receive more retailer discounts/coupons, but discounts would be constrained to not undercut retailers’ invoiced costs.
- Wholesalers/distributors — protected indirectly because the invoice‑cost floor prevents retailers from selling below their acquisition cost, which can limit downstream price erosion.
- Regulators (state alcohol control/consumer protection agencies) — may need to interpret/enforce the new invoice‑cost standard.
Procedural status and timeline (as recorded)
- Filed: 1/16/2025 (Senate Docket No. 1800)
- Introduced in Senate / read twice: 1/23/2025
- Referred to committee(s): multiple committee referrals recorded (Insurance; Veterans’ Affairs; Consumer Protection and Professional Licensure) — see note below on inconsistencies
- Hearings: recorded as held 5/21/2025; additional hearing scheduled for 7/07/2025
- House concurred: 2/27/2025 (per record)
- Current reported status on file: REFERRED TO INSURANCE
Potential impacts and considerations
- Clarifies that retailer coupons are legally permitted, promoting retail promotions and consumer savings while preventing loss‑leading below invoice cost.
- May limit aggressive below‑cost pricing strategies that could disrupt market competition or violate supplier/wholesaler agreements.
- Enforcement questions: how “invoiced cost after applicable discounts” is documented and audited; whether wholesalers’ rebates, slotting fees, or volume discounts count in the invoice calculation; and how regulators will resolve disputes over invoice accounting.
- Possible interplay with other price regulation or consumer protection laws will need administrative guidance.
Notes and data inconsistencies
- The bill text and title pertain to retailer‑backed coupons under Massachusetts law, but the supplied metadata lists U.S. Senators and a different bill title (“Enacts the health care tax reform act”), and contains multiple overlapping committee referrals. These inconsistencies appear to be clerical/metadata errors. The summary above is based on the bill text amending Chapter 138, §25C(f).
Compiled from official sources — confirm details with the bill’s official record.
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