An Act To Allow Limited Partnerships between Brewers and Wholesalers ..
Maine Legislature, Session 124, LD 0694
Committee: Legal and Veterans Affairs
Sponsors: SULLIVAN, PLOWMAN, BEAULIEU
Amends: 28-A MRSA §707, 28-A MRSA §1363

FIRST'-REGULAR SESSION-2009 
Document 
No. 694 
In Senate, February 24, 2009 . 
An Act To Allow Limited Partnerships between Brewers and 
Wholesalers 
.. 
Reference to the Committee on Legal and Veterans Affairs suggested and 'ordered printed. 
Presented by Senator SULLIVAN of York 
9tgtJ~ 
JOY J. O'BRIEN 
Secretary ofthe Senate 
Cosponsored by Senator: PLOWMAN of Penobscot, Representatives: BEAULIEU of Auburn, 
. 
. 
. TRINW ARD of Waterville. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 28-A MRSA §707, sub-§4, as amended by PL 2005, c. 390, §3, is further 
amended to read: 
4. Certificate of approval holder or Maine manufactu'rer; interest in wholesaler 
or retail license. Except as authorized provided in section ~ 
1363, subsection .§.l; a 
certificate of approval holder or in-state manufacturer may not have any financial interest, 
direct or indirect, in any: 
A. 
Maine wholesale license; or 
B. 
Maine retail iicense. 
Sec. 2. ' 28-A MRSA §1363, as amende'd by PL 1997, c. 373, §118, is further 
amended to read: 
§1363. Manufacture of malt liquor or table wine; credit; furnishing materials and 
equipment; limited partnership 
1. Certificate of approval holder not interested in wholesale license. We Except 
as provided in subsection 3, an officer, director or stockholder of a corporation wfH.eh that 
is the holder of a manufacturer's certificate of approval may not be interested, either 
directly or indirectly, as a director, officer or stockholder in any other corporation wfH.eh 
that holds a wholesale license. 
2. Loans by certificate of approval holder. Except as provided in paragraphs,A 
and B and subsection 3, 00 f! manufacturer or certificate ,of approval holder may not, 
either directly or indirectly, loan any money, credit or tfl8iF the equivalent to any 
wholesale licensee for equipping, fitting out, maintaining or conducting, either in whole 
or in part, a business establislunent where malt liquor or wine is sold. 
A. 
A certificate of approval holder may extend the usual and customary cOlmnercial 
credit for malt liquor or table wine sold and delivered. 
B. 
A manufacturer or holder of a certificate of approval may furnish a wholesale 
licensee materials and equipment for the use of the wholesale licensee or the 
wholesale licensee's employees, such ~s: . 
(1) Painting the wholesale licensee's vehiCles; 
(2) 
Supplying legal advertising signs used by the wholes<:ile licensee in the 
course of the wholesale licensee's business; and 
32' 
(3) Supplying uniforms for the employees of the wholesale licensee. 
3. Limited partnership between certificate of approval holder and wholesale 
licensee. Notwithstanding any provision of this Title, a certificate of approval holder or 
its affiliate or subsidiary may participate as a limited partner in a limited partnership as 
dermed in Title 31, section 1302 in which the wholesale licensee is the general partner 
3.7 
and a certificate of approval holder or its affiliate or subsidiary to the partnership and to 
the general partner. 
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, 19 
A. 
Notwithstanding the provlSlons of Title 31, section 1354, subsection 1, a 
certificate of approval holder or its affiliate or subsidiary that participates in a limited 
partnership pursuant to this subsection may not require as a term or condition to any, 
such partnership agreement thatthe certificate of approval holder or 'its' affiliate or 
subsidiary be given any right to, participate in the control of the partnership's 
business. 
B. 
Notwithstanding the provisions of Title 31, chapter 19, a limited partnership 
established pursuant to this subsection must terminate within 10 years of the date of 
filing the certificate of limited partnership -pursuant to Title 31, section 1321. 
. 
SUMMARY 
Currently, brewers are not permitted by law to have a financial interest in a 
wholesaler and may not provide financing to prospective wholesalers, which may have 
the necessary business expertise, but may lack sufficient capital with which to buy a malt 
liquor distributorship. 
This bill allows brewers and wholesalers to form limited partnerships in which the 
brewer is the limited partner and the wholesaler is the general partner. Consistent with the 
UnifOlID Limited Partnership Act of 2007, only the general partner is involved in day-to-
day management. The bill also provides a 10-year maximum term for any such limited 
partnership.