An Act To Establish a Pricing Formula for Liquor Sales and To Adjust Agent Discounts
Maine Legislature, Session 123, LD 1757
Committee Amendment CA_A_H379 (House)

COMMITTEE AMENDMENT ,It " 
to H.P. 1223, L.D. 1757, Bill, "An Act To 
Establish a Pricing Formula for Liquor Sales and To Adjust Agent Discounts" 
Amend the bill by striking out the title and substituting the following: 
'Resolve, To Require the Bureau of Alcoholic Beverages and Lottery 
Operations To Conduct a Stakeholder Working Group Regarding the 
Establishment of a Spirits Pricing Formula' 
Amend the bill by striking out everything after the title and inserting the following: 
'Sec. 1. 
Director of Bureau of Alcoholic Beverages and Lottery 
Operations to conduct a stakeholder working group regarding the 
establishment of a spirits pricing formula. Resolved: That the Director of the 
Bureau of Alcoholic Beverages and Lottery Operations within the Department of 
Administrative and Financial Services shall conduct a stakeholder working group to seek 
agreement on the development of a pricing formula or pricing strategy for distilled spirits 
that takes into consideration market predictability, fairness, competitiveness with 
neighboring states, transparency for those whose businesses depend on the sales of spirits 
and the existing contract between the State and the private wholesale spirits distributor. 
The working group shall consider the current structure of discounts offered to agency 
liquor stores with regard to profitability of agency liquor stores as an element of the 
spirits business in the State. The working group's membership must include, but is not 
limited to, representatives from spirits manufacturers, spirits suppliers, agency liquor 
stores, agency liquor stores with reselling licenses, establishments licensed to sell spirits 
for on-premises consumption and the private wholesaler contracted by the State to 
distribute spirits in the State; and be it further 
Sec. 2. Report date established. Resolved: That the Director of the Bureau of 
Alcoholic Beverages and Lottery Operations within the Department of Administrative 
and Financial Services shall submit a report to the Joint Standing Committee on Legal 
and Veterans Affairs by March 1, 2008. The report must include information regarding 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A " 
to H.P. 1223,L.D. 1757 
the meetings of the stakeholder working group under section 1 and the status of any 
agreement reached with regard to a pricing formula or pricing strategy and adjustments to 
discounts afforded to agency liquor stores, successes and shortcomings of the privatized 
wholesale spirits distribution system identified by the stakeholders aneY liquor law 
enforcement issues identified by the stakeholders. 
The Director of the Bureau of 
Alcoholic Beverages and Lottery Operations shall include in the report a section 
dedicated to the comments of the stakeholders who took part in meetings of the 
stakeholder working group; and be it further 
Sec. 3. 
Joint standing committee authorized to submit legislation. 
Resolved: 
That the Joint Standing Committee on Legal and Veterans Affairs is 
authorized to submit legislation to the 123rd Legislature based on the information 
presented in the report under section 2, including, but not limited to, establishing an 
annual reporting date for the Department of Administrative and Financial Services, 
Bureau of Alcoholic Beverages and Lottery Operations to present information with 
regard to the success of a pricing formula and the overall operation of the private 
wholesale spirits distribution system in order to assist future Legislatures with the 
assessment of the wholesale spirits distribution contract.' 
SUMMARY 
This amendment replaces the bill. It requires the Director of the Bureau of Alcoholic 
Beverages and Lottery Operations within the Department of Administrative and Financial 
Services to conduct a stakeholder working group to seek agreement on a pricing formula 
or strategy for the sale of spirits. The stakeholder working group shall also examine the 
issue of agency store discounts on spirits. The stakeholder working group must include 
representatives of spirits manufacturers and suppliers, agency store licensees, reselling 
agents, on-premises licensees and the private wholesaler contracted to distribute spirits 
for the State. Comments submitted by the stakeholders must be included in the report 
that is required to be presented to the Joint Standing Committee on Legal and Veterans 
Affairs by March 1, 2008. The committee is authorized to submit legislation based on the 
report to the 123rd Legislature. 
FISCAL xorE REQUIRED, 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05129/07 fr12C 
LD 1757 
LR 1808(02) 
An Act To Establish a Pricing Formula for Liquor Sales and To Adjust Agent Discounts 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Legal and Veterans Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
LR1808(02) - Fiscal Note - Page 1 of 1