An Act Regarding the Distribution and Sale of Spirits An Act To
Maine Legislature, Session 125, LD 0905
Committee Amendment CA_A_H915 (House)
Amends: 28-A MRSA §83, 28-A MRSA §1651, 28-A MRSA §2074-A

COMMITTEE AMENDMENT "fl, to H.P. 664, L.D. 905, Bill, 
Improve Maine's Liquor Distribution System" 
Amend the bill by striking out the title and substituting the following: 
'An Act Regarding the Distribution and Sale of Spirits' 
"An Act To 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 28-A MRSA §83, sub-§5, as enacted by PL 1997, c. 373, §28, is 
amended to read: 
5. Investigate and recommend changes. The alcohol bureau shall carry out a 
continuous study and investigation of the sale of alcoholic beverages throughout the State 
and the operation and administration of state activities and recommend to the 
Commissioner of Administrative and Financial Services any changes in the laws or rules 
and methods of operation that are in the best interest of the State. By December 1, 2012, 
the commissioner shall conduct a cost-benefit analysis of the discount price at which 
agency liquor stores purchase spirits and fortified wine from the State or wholesale liquor 
provider contracted by the State that includes consideration of how the discount price 
may be adjusted to allow agency liquor stores' revenue trends to mirror proportionally 
any upward trend in spirits sales and revenue realized by the State or the State's wholesale 
liquor provider. The commissioner shall update the cost-benefit analysis at least every 2 
years and shall make the analysis available, upon request, to the joint standing committee 
of the Legislature having jurisdiction over alcoholic beverages matters. 
Sec. 2. 28-A MRSA §83, sub-§5-A is enacted to read: 
5-A. Sales incentives to agents; rules. The alcohol bureau may adopt rules to 
provide for a sales incentive program for agency liquor stores. The alcohol bureau shall 
consider federal regulations that govern sales incentives for alcoholic beverages and the 
effect of a sales incentive program on General Fund revenue and pending or existing 
contracts with a wholesale liquor provider when developing an incentive program. 
COMMITTEE AMENDMENT 
.... 1 
~ 
COMMITTEE AMENDMENT" A" to H.P. 664, L.D. 905 
Notwithstanding subsection 1, rules adopted in accordance with this subsection are major 
substantive rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 3. 28-A MRSA §1651, sub-§2, ,C, as amended by PL 2005, c. 539, §9, is 
further amended to read: 
C. 
Notwithstanding the other provisions of this section, with approval of the 
Commissioner of Administrative and Financial Services, the alcohol bureau may 
reduce the price of diseoRtiRHed itefHs of liquor that, as determined by the alcohol 
bureau by rule, is unlikely to be sold for the list price. The redHeed priee fHay Rot be 
less thaR the <lernal eost ofthe diseoRtiRHed liqHor itefHs. Rules adopted to implement 
this paragraph are major substantive rules pursuant to Title 5, chapter 375, subchapter 
2-A. 
Sec. 4. 28-A MRSA §2074-A is enacted to read: 
§2074-A. Illegal storage, purchase or sale of spirits by an on-premises licensee; 
penalty 
A person licensed for the sale of spirits for consumption on the licensed premises 
who violates section 606, subsection I-A or violates state rules or federal regulations 
governing the storage, purchase and sale of spirits, including but not limited to the 
prohibition against reusing or refilling liquor bottles, and the disposition of empty liquor 
bottles, is subject to suspension or revocation of the license under chapter 33 as follows. 
1. Suspension of privilege to sell spirits. A person who commits a violation 
described by this section is subject to a 90-day suspension for a first offense, a 180-day 
suspension for a 2nd offense and a one-year suspension for a 3rd or subsequent offense. 
2. Revocation. The bureau may recommend revocation of a license to sell spirits for 
consumption on the premises if a licensee commits more than 3 violations as described by 
this section. 
Sec. 5. Transfer of funds; Department of Administrative and Financial 
Services. Notwithstanding any other provision of law, on or before August 15, 2012, 
the State Controller shall transfer $92,000 from the Lottery Operations program, State 
Lottery Fund account within the Department of Administrative and Financial Services to 
the Liquor Enforcement program, Other Special Revenue Funds account within the 
Department of Public Safety for the purpose of contracting for auditing of on-premises 
retailers to ensure compliance with applicable laws and regulations requiring those on-
premises retailers to purchase spiri~s from licensed reselling agents in the State. 
Sec. 6. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC SAFETY, DEPARTMENT OF 
Liquor Enforcement 0293 
Initiative: Provides a one-time allocation for contracted auditing services of on-premises 
retailers to ensure compliance with applicable laws and regulations requiring them to 
purchase spirits from a licensed reselling agent in the State. 
COMMITTEE AMENDMENT 
..... 
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COMMITTEE AMENDMENT "~,, to H.P. 664, L.D. 905 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2011-12 
$0 
$0 
2012-13 
$92,000 
$92,000 
This amendment replaces the bill, which was a concept draft. 
The amendment 
authorizes the Department of Administrative and Financial Services, Bureau of Alcoholic 
Beverages and Lottery Operations to adopt rules to create a program of sales incentives 
for agency liquor stores and rules to help facilitate the sale of slow-moving liquor 
products at agency liquor stores. The amendment also allows the Department of Public 
Safety's division of liquor licensing and enforcement to seek suspension or revocation of 
an on-premises license if the licensee violates the law that requires that all spirits be 
purchased from an agency liquor store or if the licensee reuses or refills liquor bottles in 
violation of state rules or federal regulations. 
This amendment also requires the Department of Public Safety to contract for an 
auditor for the purpose of enforcing the law requiring on-premises licensees to purchase 
spirits from licensed reselling agents in the State. The amendment adds an appropriations 
and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 04/05/12 :tvac. 
LD905 
LR 1592(02) 
An Act To Improve Maine's Liquor Distribution System 
Fiscal Note for Billa' Amended by Committee Amendment ,A" l H -q (5) 
Committee: Veterans and Legal Mfairs 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY2012-13 
Projections 
FY 2013-14 
Projections 
FY 2014-15 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Fiscal Detail and Notes 
$0 
$0 
$0 
$92,000 
$0 
$0 
$92,000 
$0 
$0 
($92,000) 
$0 
$0 
The bill includes a one-time Other Special Revenue Funds allocation of $92,000 in fiscal year 2012-13 for contracted 
auditing services of on-premises retailers to ensure compliance with applicable laws and regulations requiring them to 
purchase spirits from a licensed reselling agent in the state. Funding for this allocation will come from a transfer from 
the Department of Administrative and Financial Services, Lottery Operations program and will reduce General Fund 
revenue by $92,000. 
Additional costs to the Departments of Administrative and Financial Services and Public Safety associated with 
rulemaking, conducting the cost benefit analysis, assessing the impact of an increase in the number of licensed agency 
stores and reporting the results and developing a system to facilitate the electronic filing of reports and remittances of 
taxes related to spirits, malt liquor and wine can be absorbed within existing budgeted resources. 
LR1592(02) - Fiscal Note - Page 1 of 1