You got that right! It has nothing to do with business licenses and permits. It has to do with scofflaws, who operate for-profit, unlawful enterprises with the resultant, bad outcomes for the rest of the community. If the people of Massachusetts wanted extended bar-hours, they’d have been codified already! Policing this crap costs money, which the taxpayers didn’t vote on!
Sounds to me like these are the newest revenue tickets. In Houston the fine for noise violations (at bars as well as private parties) has been doubled and there is no longer any decibel measurement. The police don’t even need to receive a complaint or enter the establishment to write a citation.