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Community Work Services and Fedcap combine

Wayne, Richard & Hurwitz LLP  represented Boston non-profit entity Community Work Services (CWS) in its recent agreement to combine with Fedcap, a larger non-profit headquartered in New York. Boston’s Community Work Services will continue their 136-year mission of helping people to transform their lives through employment.

Fedcap in turn is one of the largest workforce development agencies in the country and helps more than 25,000 Americans find and keep meaningful employment each
year. To learn more about Fedcap, please visit http://www.fedcap.org/.

The combination was approved by the CWS Board of Directors, and concludes a five-year sustainability strategy that included exploration with other national and Massachusetts area not-for-profits. The decision to combine with Fedcap was based on a shared mission to create opportunities which help people with barriers achieve greater self-sufficiency.

CWS will continue to operate independently under its current management team and CWS will become the hub for Fedcap operations in New England. Serena M. Powell will continue as the Executive Director of CWS and assume the role of Senior Vice President of New England for Fedcap.

WRH partners Bob Hurwitz and Howard Wayne are both past Presidents of CWS.

Recent Updates at the Alcoholic Beverages Control Commission

Recently, two new updates were posted on the Alcoholic Beverages Control Commission’s (“ABCC”) website. The first, effective May 28, 2013, is an advisory regarding obtaining a Certificate of Good Standing (COG) in connection with liquor license applications. Obtaining a sign-off from the Department of Revenue (DOR) can sometimes be a drawn-out process, so now the ABCC will accept COGs as part of the liquor license applications submitted to the local liquor licensing authorities. To obtain a COG from DOR, the applicant should go to DOR’s website and follow the links to obtain a COG. In situations where a license is being transferred, both the Buyer and the Seller should obtain the COG.

The second update to the ABCC’s website is the list of active state licensees. These licenses include: Farmer Brewery, Farm Distillery, Farmer Winery, Wholesalers, Manufacturers, Winery Shipment, and Caterers Licenses. The retail licenses issued by the local municipalities and approved by the ABCC are not currently listed on this site.

These updates are part of an ongoing process at the ABCC to make the more transparent and efficient for all those involved in the liquor licensing process.

Recent ABCC Decision a Win for Liquor License Applicants

The Massachusetts Alcoholic Beverages Control Commission (ABCC) recently issued a decision in favor of a liquor license applicant in Falmouth.

Murphy’s Package Store (Murphy’s) applied to the Falmouth Board of Selectmen to move from its existing Main Street location to new premises approximately four miles away in West Falmouth. After hearing testimony both in favor and opposed to the move, the Board of Selectmen voted 3 to 2 to deny the application. The issues of traffic and parking at the new location were hot topics at both the Falmouth hearing, and at the subsequent appeal before the ABCC.

The ABCC disapproved of the Board of Selectmen’s denial, and remanded the matter back to the Board with the recommendation that the application be granted. In doing so, the ABCC made statements that may help counter some of the common tactics used by opponents to liquor license transfers.

All cases involving the issuance or transfer of liquor licenses in Massachusetts involve a determination of a public need for the license. However, a licensing board in reaching a decision concerning public need is required to make specific findings that are supported by the record. Regarding Murphy’s, the ABCC stated that the Board of Selectmen’s denial was inadequate as it merely recited a summation of the opponents who testified about parking and traffic. The [ABCC] finds this decision to be a general finding (emphasis added). To distinguish, the ABCC cited the case Exotic Restaurant Concepts and stated that [r]ecitals of testimony do not constitute findings. See Exotic Rests. Concept, Inc. v. Boston Licensing Board, Suffolk Superior Court, C.A. No. 07-3287 (Borenstein, J.). In denying the application for transfer, the Board of Selectmen merely recited the statements of the opponents concerning traffic and parking, and this is insufficient to deny a license transfer. In fact, the record reflected that adequate parking was available and neither the Police Chief nor Fire Chief had any objections to the transfer.

Additionally, the ABCC refused to give any weight to one opponent’s statement that there existed another package store located less than ½ mile away from the proposed transfer location. The ABCC stated that “[t]his distance between the existing package store and the proposed location of Murphy’s was not verified to the [ABCC], nor was it explained how this distance was calculated or calibrated.”

The ABCC noted that a single liquor store in one area of a town could be considered a monopoly. The ABCC in its decision stated that “the action of the Local Board in denying this application has the effect of continuing in place the monopoly held by the sole § 15 license in this section of the town.”

Based on the ABCC’s Murphy’s decision, liquor license applicants are advised to prepare to substantively counter objections that may be raised by opponents. Common general objections such as traffic, parking, and proximity of other package stores can be countered by a license applicant who builds a strong and detailed record at the hearing.

Gene Richard Chairs Panel on Delaware vs. Massachusetts Corporations and LLCs

Gene Richard recently chaired a panel of attorneys for Massachusetts Continuing Legal Education (MCLE) on the subject of Delaware vs. Massachusetts LLCs & Corporations. The presentation took place on Friday, September 21, 2012. The panel also included Joshua M. Bowman of Sherin and Lodgen LLP, Andrew S. Hochberg of Tamkin & Hochberg LLP, and Richard Heller, Senior Vice President and General Counsel of Legal Sea Foods LLC.

Speaking to an audience and broadcast live on the Web, the panel explored various differences between corporations and LLCs organized in Massachusetts and Delaware, focusing on two fundamental questions commonly raised by business clients in Massachusetts: 1) should their business be organized in Massachusetts or Delaware, and 2) should their business be operated as a corporation or an LLC? The panel discussed practical advice on how to guide clients, from the formation of their business entities, to dealing with director and shareholder matters, to the use of LLCs in conjunction with estate planning. The presentation concluded with a live “View from the Client Side” Q&A, in which Mr. Heller explained issues involved in Legal Sea Foods evolution from a Massachusetts corporation, to a Delaware corporation, to its recent conversion into a Delaware LLC.

More information about the seminar can be found by clicking here.