An Act· T~ Allow Direct-to-consumer Wine Sales . II
Maine Legislature, Session 123, LD 1987
Committee Amendment CA_A_S575 (Senate)
Amends: 28-A MRSA §1403-A

'JFIRST SPECIAL SESSION 
Minority 
COMMITTEE AMENDMENT " A" to S.P. 781, L.D. 1987, Bill, "An Act· T~ 
Allow Direct-to-consumer Wine Sales" 
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II 
Amend the bill by striking out all of section I and inserting the following: 
'Sec. 1. 28-A MRSA §1403-A is enacted to read: 
§1403-A. Direct shipment of wine 
1. Direct shipment of wine to residents. A person currently licensed in this State 
IS 
or another state as an alcoholic beverage producer, supplier, importer, wholesaler, 
distributor or retailer who obtains a direct shipper's license as provided in this section 
may ship wine directly to a resident of this State for that resident's personal use if the 
resident is 21 years of age or older. 
2. Direct shipper application. Before sending a shipment to a resident of this State, 
a direct shipper must file an application for a license with the bureau on a form issued by 
the bureau along with a true copy of its current alcoholic beverage license issued in this 
State or another state and a $100 registration fee. 
3. Delivery to resident 21 years of age or older. Wine shipped pursuant to this 
section may be shipped only to a resident 21 years of age or older and must be for the 
recipient's personal use only and not for resale. A direct shipper or 3rd-party carrier 
contracted by the direct shipper may deliver wine only to the person listed on the invoice 
or an adult member of the household, either of whom must provide a valid form of 
identification demonstrating proof of age.' All containers used for shipment of wine under 
this section must be conspicuously labeled by the direct shipper with the words 
"CONTAINS ALCOHOL: SIGNATURE OF PERSON 21 YEARS OF AGE OR 
OLDER REQUIRED FOR DELIVERY." 
A 3rd-party carrier contracted by a direct 
shipper shall register with the bureau as a direct shipper carrier on a form provided by the 
bureau and shall include on the form a description of the carrier's practice for verifying 
that recipients of alcoholic beverage shipments are 21 years of age or older. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT·A " to S.P. 781, L.D. 1987 
4. Bottle size and case limit. A direct shipper may not ship a container of wine of 
less than 750 milliliters and may ship no more than 12 cases, each of which may contain 
no more than 12 750-milliliter bottles or an equivalent volume, to anyone recipient 
address in a calendar year. 
5. Prohibited shipping areas. A direct shipper may not ship to any address in an 
area identified by the bureau as a prohibited shipping area or a local option area. 
6. License renewal. A direct shipper may annually renew its license with the bureau 
by paying a $] 00 renewal fee and providing the bureau with a true copy of its current 
alcoholic beverage license issued in this State or another state. 
7. Payment of state taxes. As a condition of receiving a direct shipper license as 
provided in this section, a direct shipper must comply with sections ] 652 and 1703 and 
Title 36, Parts I and 3, specifically including, without limitation, all requirements relating 
to registration as a seller and the collecting, reporting and remittance of Maine sales and 
use taxes and must agree to be subject to the jurisdiction of this State for purposes of the 
enforcement of those obligations. 
8. Quarterly report. A direct shipper shall report to the bureau quarterly beginning 
January I st of each year the name and address of each recipient of wine in the State and 
the total number of bottles shipped to anyone address during the reporting period. 
Reports required by this subsection must be submitted on forms provided by the bureau. 
9. Audit. The bureau may perform an audit of a direct shipper's records relevant to 
compliance with this section. 
A direct shipper shall provide copies of any records 
requested by the bureau within 3 business days of that request. 
10. Violation. A direct shipper or 3rd-party carrier who delivers or causes to be 
delivered wine to a person who has not attained 21 years of age in violation of subsection 
commits a Class D crime. Direct shipment of wine without a direct shipper license 
constitutes a violation of the Maine Unfair Trade Practices Act. The bureau may suspend 
a direct shipper's license for failure to comply with the shipment limits and reporting 
requirements required by this section. The bureau may revoke a direct shipper's license 
for subsequent failure to comply with the shipment limits and reporting requirements. 
The bureau may accept payment of an offer in compromise in lieu of suspension; such 
payments must be determined by rule adopted by the bureau. 
11. Adoption of rules. The bureau shall adopt rules to cany out the purposes of this 
section, including but not limited to rules requiring specific labeling and registration 
requirements for direct shippers in order to ensure compliance with the laws governing 
alcoholic beverage containers in Title 32, chapter 28. Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.' 
Amend the bill in section 5 in paragraph J in the first line (page 2, line 33 in L.D.) by 
striking out the following: "nonresident" and inserting the following: 'direct' 
Amend the bill by inserting after section 5 the following: 
'Sec. 6. Appropriations and allocations. The following appropriations and 
4] 
allocations are made. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 781, L.D. 1987 
PUBLIC SAFETY, DEPARTMENT OF 
Liquor Enforcement 0293 
Initiative: Appropriates funds for an office associate position and an inspector position 
and technology, supplies and mailing costs to issue direct shipper licenses and track 
reports from direct shippers for direct-to-consumer sales of wine. 
GENERAL FUND 
2007-08 
2008-09 
POSITIONS - LEGISLATIVE COUNT 
0.000 
2.000 
Personal Services 
$0 
$113,909 
All Other 
$0 
$9,880 
GENERAL FUND TOTAL 
$0 
$123,789 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment strikes the section of the bill that establishes a nonresident shipper's 
license and replaces it with a section that establishes a direct shipper license. A direct 
shipper license allows in-state or out-of-state licensed entities to ship up to 12 cases of 
wine to recipients who are 21 years of age or older. The direct shipper or 3rd-party 
carrier contracted by the shipper must be shown proof of age in order to make a delivery. 
Wine shipments must be conspicuously labeled that they contain alcohol and may be 
delivered only to a person 21 years of age or older. The amendment clarifies that a direct 
shipper is required to pay all applicable taxes, including excise and premium taxes on 
wine. The amendment also provides greater detail in what is required to be reported by 
direct shippers and lists specific penalties for specific violations of laws governing the 
direct shipment of wine. The amendment also adds an appropriations and allocations 
section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/06/08 frac 
LD 1987 
LR 3147(02) 
An Act To Allow Direct-to-consumer Wine Sales 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Legal and Veterans Affairs 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
2008-09 
$17,131 
$123,789 
$106,658 
$3,152 
Projections 
2009-10 
$20,006 
$127,976 
$107,970 
$3,290 
Projections 
2010-11 
$25,084 
$134,145 
$109,061 
$3,349 
Establishes new Class D crimes and decreases the number of Class E crimes and civil violations. Impact will be 
primarily to the county jail system. The average costs to the county for a Class D crime is $6,795 based on an average 
length of stay of 62 days at $109.60 per day. There is expected to be an insignificant impact on the caseload of the 
Judicial Department. 
Fiscal Detail and Notes 
The General Fund revenue increase resulting from an increase in the number of shippers who register and remit sales 
tax is estimated to be $58,658 in fiscal year 2008-09. Assuming that 15% ofthe current shippers would participate in 
these sales, licensing fees could also increase by $60,000. The revenue increase would be partially offset by an 
estimated loss of excise taxes and premium taxes on wine of $12,000. The Department of Public Safety, Bureau of 
Liquor Enforcement, will require a General Fund appropriation of $123,789 in fiscal year 2008-09 for an office 
associate and inspector position, technology, supplies and mailing to issue shipper licenses and track reports for direct-
to-consumer sales of wine. 
LR3147(02) - Fiscal Note - Page 1 of 1