An Act To Create a Small Distillery License
Maine Legislature, Session 122, LD 1641
Committee: Legal and Veterans Affairs
Sponsors: EDMONDS, RICHARDSON, GAGNON, PERRY, DUNN
Amends: 28-A MRSA §2, 28-A MRSA §1551

Legislative Document 
No. 1641 
S.P.607 
In Senate, May 3, 2005 
An Act To Create a Small Distillery License 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by President EDMONDS of Cumberland. 
Cosponsored by Speaker RICHARDSON of Brunswick and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: GAGNON of Kennebec, PERRY of Penobscot, Representative: DUNN of Bangor. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 28-A MRSA §2, sub-§29-A is enacted to read: 
29-A. 
Small 
distillery. 
"Small 
distillery" 
means 
a 
manufacturer that 
P~~CJ!~JtiQ.~.:Ll.le.d spirits in an amount that 
does not exceed 30,000 gallons per year. 
Sec. 2. 28-A MRSA §I355, sub-§§8 and 9 are enacted to read: 
8. 
Small distilleries. 
The following conditions apply to 
licenses issued to small distilleries. 
A. 
A holder of 
a 
small distillery license may 
produce 
distilled spirits in an amount not to exceed 30,000 gallons 
per year. 
B. 
Notwithstanding section 707, subsection 3, a holder of a 
small distillery license 
may 
also 
hold 
a 
Maine 
retail 
license. 
C. 
A holder of a small distillery license may sell, for 
on-premises consumption, liquor produced at the distillery. 
(l) 
All on-premises sales by a small distillery must 
be recorded by affidavit filed with the Department of 
Public Safety. 
(2) 
The form of the affidavit must be developed and 
approved by the Department of Public Safety. 
(3) 
Affidavits must include the volume of spirits sold 
on premises and at connected establishments, the type 
of spirits sold and any other information determined 
necessary by the alcohol bureau to maintain the State's 
status as a so-called "control state." 
(4) 
Affidavits must be made immediately available for 
periodic review without notice by the state officials. 
D. 
A holder of a small distillery license may apply for up 
to 5 licenses for the sale of liguor to be consumed on the 
premises at a connected establishment. 
(1) 
The retail license must be held exclusively by the 
holder of the distillery license. 
(2) 
The retail license authorizes the sale of products 
of 
the 
distillery, 
in 
addition 
to 
other 
liquor 
Page l-LR2I09(I) 
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permitted to be sold under the retail license« to be 
consumed on the premises. 
(3) 
All records of the distillery licensee must be 
kept separate from the records of the retail licensee. 
E. 
A holder of a small distillery license may sell spirits 
to the State or the pr ivate sector entity who acts as the 
wholesaler of spirits in the State. 
F. 
A holder of a small distillery license may not sell 
spirits directly to Maine retail licensees. 
G. 
A holder of a small distillery license shall submit a 
monthly 
report 
to 
its 
wholesaler 
detailing 
sales 
made 
directly from the distillery and connected establishments. 
The 
wholesaler shall calculate the fees 
for 
any bottle 
deposit and submit an invoice to the distillery for expenses 
associated with the reguirements prescribed in Title 32, 
chapter 
28, 
including 
the 
retailer handling 
fee, 
state 
container deposit and a mutually agreed-upon pick-up fee. 
The holder of a 
small distillery license shall keep and 
maintain 
complete 
records 
on 
all 
sales 
to 
the 
retail 
licensee. 
H. 
Notwithstanding paragraphs 
C and D, 
retail sales of 
spirits produced by a small distillery must be distributed 
in accordance with the spirit distribution system prescribed 
in this Title. 
I. 
The holder of a 
small distillery license may permit 
sampling of the liguor product on the premises: 
(1) 
By emplo~es for the purpose of guality control of 
the product; and 
(2) 
By 
wholesalers 
for 
the purpose of determining 
whether 
to 
carry 
the 
distillery's 
product 
as 
a 
wholesale product, as long as the holder of the small 
distillery license pays the liguor tax on the product 
sampled according to section 1652. 
J. 
A holder of a small distillery license may list on a 
product's label and in its advertising the list of the 
iugredients 
and 
the product's average percentage of 
the 
recommended daily allowances of nutritional reguirements. 
K. 
The small distillery must obtain a basic permit for 
distilling, rectifying, blending and bottling spirits from 
the federal Department of the Treasury, Bureau of Alcohol, 
Tobacco, Firearms and Explosives and must comply with all 
other federal laws governing the distillation and sale of 
distilled spirits. 
L. 
The 
smal~s~illery is subject to all inspection_~ 
other oversight applied to large distilleries in the State 
by the State and the Federal Government. 
For purposes of this subsection, a "connected establishment" is C!, 
Class A restaurant or Class A restaurant/lounge that is licensed 
to the holder of a small distillery license. 
9. 
Small distilleries that exceed production limit; license 
Xtule:wal. 
The bureau, upon application by the holder of a small 
distillery 
license 
whose 
distillery 
has 
produced 
distilled. 
spirits in an amount that exceeds 30,000 gallons in one year, may 
renew 
that 
holder's 
small 
distillery 
license 
for 
only 
one 
ad.d.itional year. 
Sec. 3. 28-A MRSA §1551, sub-§3, 1IF and G, as enacted by PL 
1987, c. 342, §114, are amended to read: 
F. 
Maine 
farm 
winery, 
includes 
bottling 
(one 
year) ........................................ $50; aBa 
G. 
Small 
Maine 
brewery, 
includes 
bottling 
(one 
year) ...................................... $50 ... ; and 
Sec. 4. 28-A MRSA §1551, sub-§3, 1IH is enacted to read: 
H. 
Small Maine distillery, 
includes bottling (one year) 
, ••• , ••••• ! It' ••• '., ••••••••••••••••••••• ,$50. 
SUMMARY 
This bill establishes a small distillery license. 
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