An Act To Increase Consumer Choice for Wine
Maine Legislature, Session 124, LD 1008
Committee Amendment CA_A_H366 (House)

COMMITTEE AMENDMENT" A " to H.P. 696, L.D. 1008, Bill, "An Act To 
Increase Consumer Choice for Wine" 
Amend the bill by striking out all of section 1. 
Amend the bill in section 2 in § 1403-A by striking out all of subsection 2 (page 1, 
lines 17 to 21 in L.D.) and iriserting the following: 
'2. Direct shipment of wine. A farm winelY or other winelY holding a federal basic 
wine. manufacturing permit located within or outside the State may obtain a wine direct 
shipper license by filing with the Liquor Licensing and Tax Division an application in a 
form determined by the bureau accompan ied by an application fee of not more than $200 
and a copy of the applicant's current federal basic wine manufacturing permit and a list of 
wine labels to be shipped in accordance with this section.' 
Amend the bill in section 2 in § 1403-A by striking out all of subsection 4 (page 1, 
lines 26 to 37 in L.D.) and inseliing the following: 
'4. Direct shipment requirements. A direct shipper may only ship wine that was 
produced by the direct shipper in accordance with the direct shipper's federal basic wine 
manufacturing permit to a recipielit for personal use and not for resale. A direct shipper 
may not ship wine products commonly known as "wine coolers." A direct shipper shall 
label each package to be shipped in accordance with this section so that it conspicuously 
reads "CONTAINS ALCOHOL: SIGNATURE OF A PERSON 21 YEARS OF AGE OR 
OLDER IS REQUIRED FOR DELIVERY." 
5. Common carrier. Shipments made in accordance with this chapter must be made 
by a common can'ier approved by the bureau and must be accompanied by an invoice that 
clearly indicates the name of the direct shipper and the name and address of the recipient. 
The common carrier may deliver a direct shipment of wine only to the person listed on an 
invoice at the address listed on the invoice. 
The common carrier shall request 
photographic identification from the person receiving the shipment and verifY that the 
perSall"': is 'die intended recipient and 21 years of age or older. 
A signature of 
COMMITTEE AMENDMENT 
'----
~ 
~ '?l. 
COMMITTEE AMENDMENT ,. A" to I-I.P. 696, L.D. 1008 
acknowledgment is required for all direct shipments made in accordance with this 
section.' 
Amend the bill in section 2 in § 1403-A by striking out all of subsections 8 and 9 
(page 2, lines 8 to 17 in L.D.) and inseliing the following: 
'8. Sales tax registration and payment required. As a condition of receiving a 
certificate of approval, a shipper located outside the State shall comply with the 
provisions of Title 36, Pali 3, including all requirements relating to registration as a seller 
and the collection, repOtiing and remittance of the sales and use taxes of the State, and 
shall agree to be subject to the jurisdictionofthe State for purposes of the enforcement of 
those obligations. The requirements of this subsection apply notwithstanding any other 
provision of law of the State .. 
. 9. Payment of excise and premium taxes. A direct shipper located outside the 
State shall quarterly pay to the bureau all excise and premium taxes due on sales to 
residents of the State in the preceding quarter, the amount of such taxes to be calculated 
as if the sales were in the State. 
10. Report. 
A direct shipper shall submit a report to the bureau qualierly in a 
manner and form prescribed by the bureau that includes the total number of cases of wine 
shipped to recipients in the State and, for a direct shipper located in the State, shipments 
made outside the State, the name and residence address of shipment recipients in the 
State, the common carrier used to deliver the shipments and the date, quantity and 
purchase price of each shipment.' 
Ameild the bill in section 2 in § 1403-A by striking out all of subsections 11 and 12 
(page 2, lines 21 to 34 in L.D.) and inseliing the following: 
'11. Violation. A person, including a common carrier, who knowingly causes a 
direct shipment in violation of this section is subject to a fine up to $500 for a first 
offense and up to $1,000 for any subsequent violation of this section. A direct shipper or 
common carrier who knowingly delivers wine to a person under 21 years of age is subject 
to a fine up to $5,000. The bureau may suspend or revoke a wine direct shipper license 
for failure to comply with the shipping limits and reporting requirements required by this 
section. The bureau may accept payment of an offer in compromise in lieu of suspension; 
such payments must be determined by rules adopted by the bureau. 
12. Jurisdiction. A direct shipper, as a condition of licensure, is subject to the 
jurisdiction and enforcement authority of the State for the purposes of enforcement of this 
section. 
13. Not subject to beverage container law. Notwithstanding Title 32, chapter 28, 
wine shipped pursuant to this section does not require a refund value for beverage 
container control purposes. 
14. Rules. The bureau shall adopt rules to carry out the purposes of this section. 
Rules adopted pursuant to this subsection are routine technical rules as defined ill Title 5, 
chapter 375, subchapter 2-A.' 
. 
Amend the bill in section 2 in § 1403-A by renumbering the subsections to read 
consecutively. 
COMMITTEE AMENDMENT 
'c,_ 
) 
'') 
.• 1' 
') 
..• ,1 
~ 
~co. 
F:: 
II 
( 
COMMITTEE AMENDMENT "A" to H.P. 696, L.D. 1008. 
Amend the bill by inseliing after section 8 the following: 
'Sec. 9. Bureau to implement within budgeted resources. The DepaJiment 
of Public Safety's bureau as defined in the Maine Revised Statutes, Title 28-A, section 2, 
subsection 6 shall implement the provisions of this Act within budgeted resources.' 
Amend the bill by relettering or renumbering any nonconsecutive Pali letter or 
section number to read consecutively. 
SUMMARY 
This amendment strikes the provision in the bill that allows a farm winery to ship 
wine under its farm winery license and instead requires a farm winery to obtain a wine 
direct shipper license. The amendment increases the application and license fee from 
$ I 00 to $200. The amendment clarifies that the wine shipment must be made to the 
person that is listed on the shipment invoice and that photo identification is required to 
verify the correct recipient and that the recipient is at least 21 years of age. It also 
requires a common carrier who ships wine to show proof of receipt by the purchaser by 
requiring a signed acknowledgement of the shipment. The amendment specifies that 
wine coolers are not permitted to be shipped under a wine direct shipper license. The 
ameIldment provides for greater detail in the reports submitted by direct shippers and 
provides that direct shippers are subject to the jurisdiction of the State for the purpose of 
enforcing direct shipment laws. The amendment strikes a provision that makes direct 
shipment without a license a violation of the Maine Unfair Trade Practices Act. It 
specifies that any person who knowingly causes a direct shipment to occur 01' receives a 
direct shipment when made without a license may be fined up to $500 for a first offense 
and up to $1,000 for each subsequent offense. It also provides for up to a $5,000 fine for 
any direct shipper or common carrier who delivers to any person not 21 years of age or 
older. The amendment provides that wine shipped under a wine direct shipper license is 
not subject to the bottle deposit laws. The amendment requires the Department of Public 
Safety to administer the direct shipment of wine provisions within budgeted resources. 
FISCAL ;\'OTE REQt:lRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 05122/09 frac 
LD 1008 
LR 16(02) 
An Act To Increase Consumer Choice for Wine 
Fiscal Note for Bill as Amended by' Committee Amendment "P1" 
Committee: Legal and Veterans Affairs 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Correctional and judicial Impact Statements 
Increases the number of civil violations. 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
($97,000) 
$97,000 
$3,000 
2010-11 
($97,000) 
$97,000 
$3,000 
Pr~ections 
2011-12 
($97,000) 
$97,000 
$3,000 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
Fiscal Detail and Notes 
Projections 
2012-13 
($97,000) 
$97,000 
$3,000 
This bill allows for the direct shipment of wine from certain in-state and out-of-state wineries to the consumer. Maine 
Revenue Services (MRS) will collect additional sales tax annually from the increased sales resulting in additional 
annual General Fund revenue of $57,000 and additional Local Government Fund revenue of $3,000. Additional costs 
to MRS associated with the increased sales tax collection can be absorbed within existing budgeted resources. 
Additional General Fund revenue of $40,000 is estimated from issuance of wine direct shipper licenses. This assumes 
'200 licenses issued. Additional costs to the Department of Public Safety associated with reviewing reports from 
issuing the licenses and reviewing reports from direct shippers can be absorbed within existing budgeted resources. 
LR0016(02) - Fiscal Note - Page 1 of 1 
) 
) 
,')