Massachusetts bill aims to loosen liquor license citizenship requirement

Restaurants of all kinds can buy a liquor license in Massachusetts, a document that could cost well over a quarter-million dollars.

• But the business owner can't be listed as the manager of record unless they're a U.S. citizen.

Driving the news: A bill aims to change that state law to let non-citizens who have legal status become the manager listed on a liquor license, a crucial requirement for businesses seeking approval from licensing boards.

Why it matters: Small business owners supporting the proposal say current law effectively excludes immigrant-owned enterprises and hamstrings American business owners who want to promote non-citizens to management positions.

• The restrictions, they tell Axios, add red tape and expenses at a time when businesses are struggling to retain workers and keep costs down.

Flashback: The restrictions stem from a 1933 liquor law, which stated only citizens can obtain liquor licenses.

• But Boston's licensing board started limiting liquor licenses to "bona fide citizens" as early as 1908, according to an annual report from the agency.

State of play: The bill, filed by state Sen. Patrick O'Connor (R-Weymouth), had multiple committee hearings in May. Lawmakers have until next year to move it forward.

• The status quo is "antiquated," O'Connor told Axios. He said it makes "perfect common sense to be able to put this legislation forward."

Zoom in: Fernando Rosas, owner of Bono in East Boston, applied for a beer and wine license in 2021. He learned only after applying that he couldn't be the manager on record because he wasn't a citizen.

• At the time, Rosas had applied for citizenship, but the pandemic delayed the approval process.

What they're saying: "I felt so stupid ... I didn't mean to hurt anybody or mean to waste anybody's time," Rosas told Axios. "I didn't mean to waste my money or time, either, but surely I did."

• His business eventually received permission from the board when he made his wife, a citizen, the manager of record and majority-owner.

Yes, but: Thanks to Boston's cap on liquor licenses, Rosas still has not been able to secure an official license yet.

Between the lines: Stephanie Burke, co-owner of Lenny's Hideaway in Cohasset, brought the issue to O'Connor after learning she and her husband couldn't make a longtime employee their manager of record.

• "I think that people will be surprised that this is a requirement and surprised that it's been under the radar for so long," Burke told Axios.
• But just because the issue hasn't gotten much attention in recent years "doesn't mean it's not creating a lot of hardship and barriers for people," Burke said.