An Act To Provide for the Effective Marketing and Promotion of Maine Lobster
Maine Legislature, Session 126, LD 0486
Committee: Marine Resources
Sponsors: KRUGER, LANGLEY
Amends: 12 MRSA §6455

Legislative Document 
No. 486 
H.P. 336 
House of Representatives, February 14, 2013 
An Act To Provide for the Effective Marketing and Promotion of 
Maine Lobster 
Submitted by the Department of Marine Resources pursuant to Joint Rule 204. 
Reference to the Committee on Marine Resources suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative KRUGER of Thomaston. 
Cosponsored by Senator: LANGLEY of Hancock. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  12 MRSA §6455, as amended by PL 2009, c. 567, §§7 and 8, is further 
amended to read: 
§6455.  Lobster Promotion Council 
1.  Council established; purpose.  The Lobster Promotion Council, established in 
Title 5, section 12004-H, subsection 14 and referred to in this subchapter as the "council," 
is created to promote and market actively Maine lobsters in state, regional, national and 
international markets.  The council shall draw upon the expertise of the Maine lobster 
industry and established private marketing firms to identify market areas that will provide 
the greatest return on the investments made by lobster license holders and undertake 
those media or promotional efforts that represent the most cost-effective use of a limited 
promotional budget.  The council shall remain responsive to the Maine lobster industry,  
conduct its business in a public manner and undertake marketing efforts that promote the 
quality and full utilization of the product and the unique character of the coastal Maine 
lobster fishery. 
The council consists of 9 voting members appointed as follows: 
A.    From the western district of the State, consisting of lands located between the 
Piscataqua River and the Kennebec River, 3 members meeting the qualifications in 
subsection 2; 
B.    From the midcoast district of the State, consisting of all lands located between 
the Kennebec River and the Penobscot River, 3 members meeting the qualifications 
in subsection 2; and 
C.    From the eastern district of the State, consisting of all lands located between the 
Penobscot River and the St. Croix River, 3 members meeting the qualifications in 
subsection 2. 
The commissioner shall appoint the members of the council from among a list of 
nominees prepared by the Lobster Advisory Council.  The commissioner shall appoint 
one member within each district for an initial term of one year, one member within each 
district for an initial term of 2 years and one member within each district for an initial 
term of 3 years.  All subsequent members are appointed by the commissioner for terms of 
years.  A person may not serve more than 2 consecutive 3-year terms as a member of 
the council.  By majority vote, the council shall annually elect a chair from among its 
members.  The commissioner is an ex officio, nonvoting member of the council. 
1-A.  Council is a public instrumentality.  The council is established as a public 
instrumentality serving a public purpose.  As a public instrumentality: 
A.    Employees of the council may not be construed to be state employees for any 
purpose, including the state civil service provisions of Title 5, Part 2 and Title 5, 
chapter 372 and the state retirement system provisions of Title 5, Part 20; 
B.    The council may not be construed to be a state agency for any purposes, 
including the budget, accounts and control, auditing, purchasing or other provisions 
of Title 5, Part 4; and 
C.  Notwithstanding any provisions of paragraphs A and B: 
(1)  All meetings and records of the council are subject to the provisions of Title 
1, chapter 13, subchapter 1, except as provided in subsection 1-B.  The 
commissioner and those members of the Legislature appointed to serve on the 
joint standing committee of the Legislature having jurisdiction over marine 
resource matters have access to all material designated confidential by the 
council; 
(2)  Except as required by subsection 2, members Members of the council are 
governed by the conflict of interest provisions set forth in Title 5, section 18; and 
(3)  For the purposes of the Maine Tort Claims Act, the council is a 
"governmental entity" and its employees are "employees" as those terms are 
defined in Title 14, section 8102. 
1-B.  Market studies and promotional plans; proprietary information.  
Information provided to or developed by the council and included in a promotional plan 
or market study is public unless the council determines that it contains proprietary 
information.  For the purposes of this subsection, "proprietary information" means 
information that is a trade secret or production, commercial or financial information the 
disclosure of which would impair the competitive position of the council or the person 
submitting the information and would make available information not otherwise publicly 
available. 
1-C.  Council members; appointments; terms.  The council consists of 13 voting 
members, 11 appointed by the commissioner as follows: 
A.  Seven individuals representing the lobster management policy councils 
established pursuant to section 6447.  Each lobster management policy council shall 
prepare a list of nominees from its zone for consideration by the commissioner for the 
appointments under this paragraph; 
B.  Two individuals who are managers or officers of business entities operating in the 
State that hold valid wholesale seafood licenses with lobster permit, from a list of 
nominees prepared for the commissioner by the Lobster Advisory Council; and 
C.  Two individuals who are public members, from a list of nominees prepared for 
the commissioner by the Lobster Advisory Council. 
Members are appointed by the commissioner for terms of 3 years.  A person may not 
serve more than 2 consecutive 3-year terms as a member of the council. 
The commissioner serves as an ex officio member of the council.  The Commissioner of 
Economic and Community Development or the commissioner’s designee serves as an ex 
officio member of the council. 
2.  Qualifications of members.  From each district, 3 members must be appointed 
who meet the following criteria: 
A.    One person who is a full-time harvester and who has held a valid lobster and 
crab fishing license for at least 5 consecutive years; 
B.    One person who is a dealer or pound operator and who: 
(1)  Has held a valid wholesale shellfish license or lobster transport license for a 
period of at least 5 consecutive years; or 
(2)  Is the manager of, or an officer in, a business entity operating in the State that 
holds a valid wholesale shellfish license or lobster transport license; and 
C.    One person who is a public member. 
A person is eligible for appointment to the council from a district only if that person is a 
resident of the district or if that person's place of business is located within the district. 
2-A.  Officers.  By majority vote, the council shall annually elect a chair from among 
its members and may elect other officers in accordance with the bylaws. 
3.  Meetings.  The council shall meet at least quarterly.  A quorum of 5 7 members is 
required to conduct the business of the council.  Additional meetings may be called by the 
chair.  If 3 or more members of the council submit to the chair a written request for a 
meeting, the chair shall call a meeting to be held no sooner than 14 days after receipt of 
the written request.  The commissioner may remove any member with unexcused 
absences from 2 or more consecutive meetings of the council. 
3-A.  Employees.  The council shall hire a full-time an executive director and may 
hire staff as needed to perform its duties.  Employees of the Lobster Promotion Council 
serve at the pleasure of the council.   The salary and benefits for employees of the council 
are determined by the council.  
4.  Powers and duties.  The council may: 
A.    Undertake promotional marketing programs in cooperation with the lobster 
industry; 
B.    Promote national and international markets for lobsters harvested or processed in 
the State; 
C.    Provide material and technical assistance to persons seeking to market lobsters 
harvested or processed in the State; 
D.    Conduct other efforts as determined necessary to increase the sales of lobsters 
harvested or processed in the State; 
D-1.    Market and sell goods directly related to the functions of the council and 
deposit all proceeds in the Lobster Promotion Fund; 
E.    Make expenditures from the Lobster Promotion Fund to carry out the purposes 
of this subchapter.  Money in the fund may be used only for the following purposes: 
(1)  Promotion, advertising and marketing development.  The council may 
implement programs and activities to promote, advertise and develop markets for 
lobster and  make or enter into contracts with any local, state, federal or private 
agency, department, firm, corporation, entity or person for those purposes; and 
(2)  The hiring of staff and the payment of compensation for employees, payment 
of per diem and reimbursement of expenses for members pursuant to Title 5, 
section 12004-H and payment of administrative and overhead costs associated 
with the business of the council; and 
F.    Accept and deposit in the fund additional funding from any source, public or 
private. 
5.  Fund established; license surcharge assessed.  The Lobster Promotion Fund, 
referred to in this subchapter as the "fund," is established to carry out the purposes of this 
subchapter.  The department shall pay to the fund all money appropriated or received by 
the department for the purposes of this subchapter, except that the department may retain 
funds necessary to reimburse the department for the actual cost of collecting the license 
surcharges established in this subsection.  The fund is capitalized from the following 
annual surcharges assessed on the following licenses issued by the department for 
calendar years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 
2004 and 2005 to 2020: 
A.    Class I crab and lobster licenses for persons 18 to 69 years of age, $31.25; 
B.    Class II crab and lobster licenses, $62.50, except that for license holders 70 years 
of age or older the surcharge is $32;  
C.    Class III crab and lobster licenses, $93.75, except that for license holders 70 
years of age or older the surcharge is $47; 
D.    Wholesale seafood licenses with lobster permits, $250;  
E.    Lobster transportation licenses, $250; and 
F.  Nonresident lobster and crab landing permits, $250. 
A person holding more than one of the licenses listed in this subsection is assessed a 
surcharge only on the highest surchargeable license held. 
The Treasurer of State shall hold all surcharges assessed by this subsection in the fund 
and invest all money in the fund until disbursed to the council upon request of the 
council.  Interest from investments accrues to the fund. 
All money in the fund is subject to allocation by the Legislature.  Unexpended balances in 
the fund at the end of the fiscal year may not lapse but must be carried forward to be used 
for the same purposes. 
In addition to payment of the regular license fee and the surcharge, a person purchasing a 
license subject to the surcharges established in this subsection may make voluntary 
contributions to the fund at the time the license is purchased.  Voluntary contributions 
received by the department from a licensee pursuant to this subsection must be deposited 
in the fund by the department and must be used by the council for the purposes of this 
subchapter. 
5-A.  Lobster Promotion Fund; established; license surcharge assessed.    The 
Lobster Promotion Fund, referred to in this subchapter as "the fund," is established to 
carry out the purposes of this subchapter. The department shall pay to the fund all money 
appropriated or received by the department for the purposes of this subchapter, except 
that the department may retain funds necessary to reimburse the department for the actual 
cost of collecting the license surcharges established in this subsection. The fund is 
capitalized from annual surcharges assessed on licenses issued by the department for 
calendar years as follows. 
A.  For the year 2013 the surcharges are, for: 
(1)  Class I crab and lobster licenses for persons 18 to 69 years of age, $31.25; 
(2)  Class II crab and lobster licenses, $62.50, except that for license holders 70 
years of age or older the surcharge is $32; 
(3)  Class III crab and lobster licenses, $93.75, except that for license holders 70 
years of age or older the surcharge is $47; 
(4)  Wholesale seafood licenses with lobster permits, $250; 
(5)   Lobster transportation licenses, $250; and 
(6)  Nonresident lobster and crab landing permits, $250. 
B.  For the year 2014 the surcharges are, for: 
(1)  Class I crab and lobster licenses for persons 18 to 69 years of age, $93.25; 
(2)  Class II crab and lobster licenses, $187.50, except that for license holders 70 
years of age or older the surcharge is $93; 
(3)  Class III crab and lobster licenses, $281.75, except that for license holders 70 
years of age or older the surcharge is $140; 
(4)  Wholesale seafood licenses with lobster permits, $750; 
(5)  Lobster transportation licenses, $750; 
(6)  Nonresident lobster and crab landing permits, $750; and 
(7)  Processor licenses, $1,000. 
C.  For the year 2015 the surcharges are, for: 
(1)  Class I crab and lobster licenses for persons 18 to 69 years of age, $187.25; 
(2)  Class II crab and lobster licenses, $375.50, except that for license holders 70 
years of age or older the surcharge is $187; 
(3)  Class III crab and lobster licenses, $562.75, except that for license holders 70 
years of age or older the surcharge is $281; 
(4)  Wholesale seafood licenses with lobster permits, $1,500; 
(5)  Lobster transportation licenses, $1,500; 
(6)  Nonresident lobster and crab landing permits, $1,500; and 
(7)  Processor licenses, $2,000. 
D.  For the years 2016 to 2018 the surcharges are, for: 
(1)  Class I crab and lobster licenses for persons 18 to 69 years of age, $243.25; 
(2)  Class II crab and lobster licenses, $487.50, except that for license holders 70 
years of age or older the surcharge is $243; 
(3)  Class III crab and lobster licenses, $731.75, except that for license holders 70 
years of age or older the surcharge is $365; 
(4)  Wholesale seafood licenses with lobster permits, $1,950; 
(5)  Lobster transportation licenses, $1,950; 
(6)  Nonresident lobster and crab landing permits, $1,950; and 
(7)  Processor licenses, $2,600. 
A person holding more than one of the licenses listed in this subsection is assessed a 
surcharge only on the highest surchargeable license held. 
The Treasurer of State shall hold all surcharges assessed by this subsection in the fund 
and invest all money in the fund until disbursed to the council upon request of the 
council. Interest from investments accrues to the fund. 
All money in the fund is subject to allocation by the Legislature. Unexpended balances in 
the fund at the end of the fiscal year may not lapse but must be carried forward to be used 
for the same purposes. 
In addition to payment of the regular license fee and the surcharge, a person purchasing a 
license subject to the surcharges established in this subsection may make voluntary 
contributions to the fund at the time the license is purchased. Voluntary contributions 
received by the department from a licensee or any other source pursuant to this subsection 
must be deposited in the fund by the department and must be used by the council for the 
purposes of this subchapter. 
6.  Reports.  By February 15th of each year, the The council shall report annually to 
the joint standing committees committee of the Legislature having jurisdiction over 
financial affairs and marine resource matters on the programs undertaken pursuant to this 
subchapter, expenditures from the fund and balances in all accounts in the fund, to the 
Lobster Advisory Council established under section 6462-A and, at a statewide meeting 
of interested license holders, to the lobster industry.  The council shall provide notice of 
the date and location of the statewide meeting of license holders at the time of license 
issuance or renewal. 
7.  Audit.  An annual audit of the expenditures of the council must be performed.  
The council may contract with the Department of Audit or with a private sector 
accounting firm to conduct the audit.  The council shall report the results of that audit to 
the joint standing committee of the Legislature having jurisdiction over marine resource 
matters.  If the annual audit is performed by the Department of Audit, the council shall 
reimburse the department for its costs to conduct that audit. 
8.  Review; repeal.  By January 15, 2018, the council shall report to the Lobster 
Advisory Council established under section 6462-A and the joint standing committee of 
the Legislature having jurisdiction over marine resource matters the results of a 3rd-party 
audit of the results of the council’s programs and activities from 2014 to 2017.  Based on 
the outcome of that audit and with consideration of any recommendation by the Lobster 
Advisory Council, the committee may submit legislation to the Legislature to renew the 
license surcharges or adjust them as appropriate. 
This section is repealed October 1, 2018. 
Sec. 2.  Lobster Promotion Council; transition.  Notwithstanding the Maine 
Revised Statutes, Title 12, section 6455, subsection 1-C, the members of the Lobster 
Promotion Council on the effective date of this Act continue to serve for the terms for 
which they were appointed, and as their terms expire members must be appointed by the 
Commissioner of Marine Resources to serve staggered terms so that 3 members serve a 
term of one year, 3 members serve a term of 2 years and 3 members serve a term of 3 
years.  The 2 members initially appointed under Title 12, section 6455, subsection 1-C 
must be appointed so that one member serves for 2 years and one member serves for 3 
years. 
SUMMARY 
This bill amends provisions of the law establishing the Lobster Promotion Council as 
follows. 
1.  It increases the surcharge assessed on harvester and dealer licenses and creates a 
surcharge on the processor license to fund the council. 
2.  It changes the criteria for membership and the selection process. 
3.  It requires that the council report annually to the joint standing committee of the 
Legislature having jurisdiction over marine resource matters, the Lobster Advisory 
Council and the lobster industry.