Mass. Gen. Laws ch. 138, sec. 19F — MA Code / Part I / Title XX / Chapter 138 / Section 19F
Direct wine shipper licenses; regulation and enforcement by commission
Status: in_force

Section 19F. (a) For the purposes of this section, the term ''brand name'' shall include any wine exclusively produced by or for the winery and marketed under a different label owned by or registered to the winery. (b)(1) The commission may issue a direct wine shipper license pursuant to this section to any person, firm or corporation that holds a: (i) federal basic permit pursuant to the federal Alcohol Administration Act, 27 U.S.C. § 201, et seq.; and (ii) license in the commonwealth or any other state to manufacture and export wine. (2) Pursuant to this section, a winery licensed as a direct wine shipper may sell and deliver wine directly to residents of the commonwealth who are not less than 21 years of age for personal use and not for resale; provided, however, that a winery licensed as a direct wine shipper shall not sell at retail or deliver to residents of the commonwealth any wine or wine product not produced for or by the winery and sold under the winery's brand name. (c) The fee for a license issued pursuant to this section shall be $300 per winery; provided that an affiliate, franchise or subsidiary of the winery shall require a separate license. Licenses shall be renewed annually at a fee of $150. If a direct wine shipper's license expires and is not renewed, a subsequent application shall be treated as an application for a new license. An applicant for a direct wine shipper license shall provide the commission and the department of revenue with a true copy of the applicable alcoholic beverage license to manufacture, export and sell the applicant's wine as issued by the appropriate licensing authority. A copy of the direct wine shipment license obtained pursuant to this section shall be provided by the commission to the department of revenue. (d) A direct wine shipper licensee under this section shall ship wine in accordance with section 22. (e) A direct wine shipper licensee may ship up to 12 cases of wine, containing not more than 9 liters of wine per case, per year to a resident of the commonwealth. (f) A licensee under this section shall: (i) report yearly to the commission and the department of revenue the total number of gallons of wine shipped into the commonwealth for the preceding year; (ii) pay to the department of revenue, under the department's rules and regulations, for each shipment of wine the excise levied on importations of wine calculated under section 21 and any and all other applicable taxes; and (iii) upon request, allow the commission or the department of revenue to perform an audit of the direct shipper licensee's records. (g) No person, firm or corporation shall ship wine directly to consumers without a direct wine shipper license. A person, firm or corporation who manufactures, transports, imports or exports wine in violation of this section shall be deemed to have engaged in a deceptive act or practice under chapter 93A. (h) Whoever ships wine in violation of this section shall be subject to the following penalties: for a first violation, by suspension of the direct wine shipper license for 60 days or a fine of $500, or both; for a second violation, by suspension of the direct wine shipper license for 120 days or a fine of $1,000, or both; and for a third or subsequent violation, by suspension of the direct wine shipper license for 1 year or by a fine of $3,000, or both. A licensee whose license has been suspended for 1 year or more may apply for a direct wine shipper license and shall be treated as a new applicant. The commission may revoke a direct wine shipper license after 3 or more violations. (i) If a violation of this section involves the sale or delivery of wine to a person under 21 years of age, the commission may impose the following additional penalties: for a first violation, by suspension of the direct shipper license for 180 days or a fine of $1,000, or both; for a second violation, by suspension of the direct shipper license for 1 year or a fine of $2,000, or both; and for a third or subsequent violation, by suspension of the direct shipper license for 2 years or by a fine of $5,000, or both. Nothing in this section shall preclude enforcement of violations of section 34. (j) The commission shall promulgate rules and regulations to effectuate this section. The department of revenue may promulgate rules and regulations necessary to effectuate the oversight and collection of taxes due to the commonwealth as a result of the sale and shipment of wine into the commonwealth pursuant to this section. (k) The commission shall issue an annual report to the joint committee on consumer protection and professional licensure, which shall include, but not be limited to, the number of direct wine shipment licenses issued and a review of violations and enforcement measures taken pursuant to this section.

Section 19F. (a) For the purposes of this section, the term ''brand name'' shall include any wine exclusively produced by or for the winery and marketed under a different label owned by or registered to the winery.

(b)(1) The commission may issue a direct wine shipper license pursuant to this section to any person, firm or corporation that holds a: (i) federal basic permit pursuant to the federal Alcohol Administration Act, 27 U.S.C. § 201, et seq.; and (ii) license in the commonwealth or any other state to manufacture and export wine.

(2) Pursuant to this section, a winery licensed as a direct wine shipper may sell and deliver wine directly to residents of the commonwealth who are not less than 21 years of age for personal use and not for resale; provided, however, that a winery licensed as a direct wine shipper shall not sell at retail or deliver to residents of the commonwealth any wine or wine product not produced for or by the winery and sold under the winery's brand name.

(c) The fee for a license issued pursuant to this section shall be $300 per winery; provided that an affiliate, franchise or subsidiary of the winery shall require a separate license. Licenses shall be renewed annually at a fee of $150. If a direct wine shipper's license expires and is not renewed, a subsequent application shall be treated as an application for a new license. An applicant for a direct wine shipper license shall provide the commission and the department of revenue with a true copy of the applicable alcoholic beverage license to manufacture, export and sell the applicant's wine as issued by the appropriate licensing authority. A copy of the direct wine shipment license obtained pursuant to this section shall be provided by the commission to the department of revenue.

(d) A direct wine shipper licensee under this section shall ship wine in accordance with section 22.

(e) A direct wine shipper licensee may ship up to 12 cases of wine, containing not more than 9 liters of wine per case, per year to a resident of the commonwealth.

(f) A licensee under this section shall: (i) report yearly to the commission and the department of revenue the total number of gallons of wine shipped into the commonwealth for the preceding year; (ii) pay to the department of revenue, under the department's rules and regulations, for each shipment of wine the excise levied on importations of wine calculated under section 21 and any and all other applicable taxes; and (iii) upon request, allow the commission or the department of revenue to perform an audit of the direct shipper licensee's records.

(g) No person, firm or corporation shall ship wine directly to consumers without a direct wine shipper license. A person, firm or corporation who manufactures, transports, imports or exports wine in violation of this section shall be deemed to have engaged in a deceptive act or practice under chapter 93A.

(h) Whoever ships wine in violation of this section shall be subject to the following penalties: for a first violation, by suspension of the direct wine shipper license for 60 days or a fine of $500, or both; for a second violation, by suspension of the direct wine shipper license for 120 days or a fine of $1,000, or both; and for a third or subsequent violation, by suspension of the direct wine shipper license for 1 year or by a fine of $3,000, or both. A licensee whose license has been suspended for 1 year or more may apply for a direct wine shipper license and shall be treated as a new applicant. The commission may revoke a direct wine shipper license after 3 or more violations.

(i) If a violation of this section involves the sale or delivery of wine to a person under 21 years of age, the commission may impose the following additional penalties: for a first violation, by suspension of the direct shipper license for 180 days or a fine of $1,000, or both; for a second violation, by suspension of the direct shipper license for 1 year or a fine of $2,000, or both; and for a third or subsequent violation, by suspension of the direct shipper license for 2 years or by a fine of $5,000, or both. Nothing in this section shall preclude enforcement of violations of section 34.

(j) The commission shall promulgate rules and regulations to effectuate this section. The department of revenue may promulgate rules and regulations necessary to effectuate the oversight and collection of taxes due to the commonwealth as a result of the sale and shipment of wine into the commonwealth pursuant to this section.

(k) The commission shall issue an annual report to the joint committee on consumer protection and professional licensure, which shall include, but not be limited to, the number of direct wine shipment licenses issued and a review of violations and enforcement measures taken pursuant to this section.