An Act Regarding Alcohol Manufacturing Licenses Issued to Research Facilities
Maine Legislature, Session 127, LD 0935
Committee: Veterans and Legal Affairs
Sponsors: DILL, TIPPING-SPITZ, ALFOND, DUTREMBLE, SAVIELLO, BLACK, TIMBERLAKE
Amends: 28-A MRSA §2, 28-A MRSA §1355-A

Legislative Document 
No. 935 
S.P. 326 
In Senate, March 17, 2015 
An Act Regarding Alcohol Manufacturing Licenses Issued to 
Research Facilities 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator DILL of Penobscot. 
Cosponsored by Representative TIPPING-SPITZ of Orono and 
Senators: ALFOND of Cumberland, DUTREMBLE of York, SAVIELLO of Franklin, 
Representatives: BLACK of Wilton, TIMBERLAKE of Turner. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  28-A MRSA §2, sub-§25-B is enacted to read: 
25-B.  Research facility.  "Research facility" means a facility owned and operated by 
a postsecondary educational institution that is licensed under section 1355-A, subsection 
7. 
Sec. 2.  28-A MRSA §2, sub-§32-B is enacted to read: 
32-B.  Subject manufacturer.  "Subject manufacturer" means a person licensed 
under section 1355-A, subsection 3, 4 or 5 who has received approval documentation 
from the United States Department of the Treasury, Alcohol and Tobacco Tax and Trade 
Bureau to engage in an alternating proprietorship as allowed by federal regulation. 
Sec. 3.  28-A MRSA §1355-A, sub-§2, as enacted by PL 2011, c. 629, §22, is 
amended to read: 
2.  Manufacturers.  The following provisions apply to brewery, small brewery, 
winery, small winery, distillery and, small distillery and research facility licensees. 
A.  A licensee may permit sampling of the liquor product on the premises: 
(1)  By employees for the purpose of quality control of the product; 
(2)  By wholesalers for the purpose of determining whether to carry the product 
as a wholesale product if the holder of the license pays the excise tax on the 
product sampled according to section 1652; and 
(3)  By the public if the holder of the license pays the excise tax on the product 
sampled according to section 1652. 
B.  A licensee under this section may serve to the public complimentary samples of 
liquor produced by the licensee at the licensed premises where liquor is produced by 
the licensee. 
C.  A licensee under this section may sell to nonlicensees during regular business 
hours from the licensed premises where liquor is produced by the licensee liquor 
produced by the bottle, by the case or in bulk for consumption off the licensed 
premises.  Spirits sold by distillers and small distillers in accordance with this 
paragraph must be first sold to the State, subject to the listing, pricing and distribution 
provisions of this Title. 
D.  A licensee under this section may sell from the licensed premises where liquor is 
produced by the licensee liquor produced by the licensee for consumption off the 
licensed premises. 
E.  A licensee may serve complimentary samples of liquor on Sunday after the hour 
of 9 a.m. and may sell liquor on Sunday after the hour of 9 a.m. if the municipality in 
which the licensed premises is located has authorized the sale of liquor on Sunday for 
consumption off the premises under chapter 5. 
F.  A licensee may charge for samples or shall otherwise comply with the conditions 
in paragraph E.  Each sample poured is subject to a charge in an amount determined 
by the licensee and is subject to the sales tax on liquor under Title 36, section 1811.  
A licensee shall maintain a record of liquor samples subject to a charge and maintain 
those records for a period of 2 years. 
G.  A licensee that is a brewery or small brewery may sell on the premises during 
regular business hours and within the hours of legal sale to nonlicensees liquor 
produced at the licensed premises.  The volume of the package may not exceed 15.5 
gallons and must be consumed off the premises.  The sale of packages described in 
this paragraph must comply with keg tagging requirements provided in section 714.  
Each licensee shall submit a monthly report to its wholesaler detailing sales made 
directly from the premises.  The wholesaler shall calculate the fees for any bottle 
deposit and submit an invoice to the licensee for expenses associated with the 
requirements prescribed in Title 32, chapter 28 including the retailer handling fee, 
state container deposit and a mutually agreed-upon pick-up fee. 
H.  A small winery or small brewery licensee shall keep and maintain complete 
records on all sales to a retail licensee. 
I.  A licensee may be issued one retail license under chapter 43 per licensed location 
for the sale of liquor to be consumed on the premises at the retail premises. 
(1)  The retail license must be held exclusively by the holder of the brewery, 
small brewery, winery, small winery, distillery or small distillery license. 
(2)  The retail license authorizes the sale of products of the brewery, small 
brewery, winery, small winery, distillery or small distillery, in addition to other 
liquor permitted to be sold under the retail license, to be consumed on the 
premises. 
(3)  All records related to activities under a manufacturer license issued under 
this section must be kept separate from records related to the retail license. 
(4)  A distillery or small distillery must meet the requirements of subsection 5, 
paragraph E. 
J.  A licensee may display up to 25 bottles of liquor produced by the licensee in a 
window of the location under paragraph D where liquor is sold for consumption off 
the licensed premises.  Locations licensed under subsection 4, paragraph B, 
subparagraph (2) or subsection 5, paragraph B, subparagraph (3) may also display up 
to 25 bottles of liquor produced by the licensee. 
Sec. 4.  28-A MRSA §1355-A, sub-§7 is enacted to read: 
7.  Subject manufacturer; research facility license.  Except as otherwise provided, 
the following provisions apply to a research facility license under which a subject 
manufacturer may produce malt liquor, wine, sparkling wine, fortified wine or spirits at 
the research facility under this subsection. 
A.  To be eligible as a subject manufacturer, a person must submit an application to 
the bureau in a manner prescribed by the bureau and hold appropriate approval 
documentation from the United States Department of the Treasury, Alcohol and 
Tobacco Tax and Trade Bureau that authorizes a subject manufacturer to use the 
facilities and equipment of a research facility. 
B.  A subject manufacturer is subject to the same requirements regarding production 
of malt liquor, wine, sparkling wine, fortified wine or spirits as if the subject 
manufacturer conducted its manufacturing on its own premises independently. 
C.  A subject manufacturer is not eligible for privileges provided in subsection 2 
except for sampling described by subsection 2, paragraph A. 
D.  A subject manufacturer licensed under subsection 3 is governed by the provisions 
of subsection 3 except for the privileges granted under subsection 3, paragraph C and 
may manufacture only 31 gallons per batch of malt liquor at one time. 
E.  A subject manufacturer licensed under subsection 4 is governed by the provisions 
of subsection 4 except the subject manufacturer may manufacture only 53 gallons per 
batch of wine, sparkling wine or fortified wine at one time. 
F.  A subject manufacturer licensed under subsection 5 is governed by the provisions 
of subsection 5 except the subject manufacturer may manufacture only 53 gallons per 
batch of spirits at one time. 
G.  A subject manufacturer may not manufacture at the research facility malt liquor, 
wine, sparkling wine, fortified wine or spirits for another manufacturer or certificate 
of approval holder. 
H.  A subject manufacturer shall ensure that the subject manufacturer maintains 
control of the ingredients used to manufacture the subject manufacturer's product and 
may purchase the ingredients from the research facility. 
I.  A research facility may be used by more than one subject manufacturer at one 
time.  A research facility shall ensure that the ingredients, equipment used and 
product of a subject manufacturer are segregated and maintained separately from any 
other ingredients, equipment or product. 
J.  The bureau may require a subject manufacturer to maintain a record or log 
indicating which equipment is being used at any time by the subject manufacturer in 
the production of malt liquor, wine, sparkling wine, fortified wine or spirits and 
which of the subject manufacturer's employees are working on production of the 
subject manufacturer's product. 
K.  The bureau shall require that reports from a subject manufacturer be submitted in 
the same manner as reports from a tenant brewer under subsection 6 are submitted.  
The bureau shall also require a subject manufacturer to submit to the bureau copies of 
reports required by the United States Department of the Treasury, Alcohol and 
Tobacco Tax and Trade Bureau authorizing the subject manufacturer to engage in an 
alternating proprietorship. 
L.  A research facility may charge a subject manufacturer a reasonable fee for the use 
of the research facility. 
M.  A subject manufacturer's product manufactured at a research facility is owned by 
the subject manufacturer as if the subject manufacturer manufactured the product on 
its own premises independently. 
N.  A research facility may manufacture malt liquor, wine, sparkling wine, fortified 
wine or spirits for its own research or instructional purposes.  A research facility may 
manufacture up to 31 gallons per batch of malt liquor and up to 53 gallons per batch 
of wine, sparkling wine, fortified wine or spirits under this paragraph at any one time.  
An employee of or a student working or studying at a research facility who is 21 
years of age or older may take from the facility up to 72 ounces of each malt liquor 
product, 24 ounces of each wine, sparkling wine or fortified wine product or 12 
ounces of each spirits product manufactured under this paragraph for sampling 
purposes.  A research facility licensed under this subsection is not eligible for 
privileges under subsection 2 except for the privileges in subsection 2, paragraphs A, 
B and E.  A research facility may sell liquor to retailers and wholesalers pursuant to 
the provisions of this chapter. 
SUMMARY 
This bill creates a liquor manufacturing license for a research facility at a 
postsecondary educational institution.  Under the bill, other liquor manufacturers, known 
as subject manufacturers, may produce malt liquor, wine, sparkling wine, fortified wine 
and spirits at the research facility and the research facility may itself manufacture malt 
liquor, wine, sparkling wine, fortified wine and spirits for research or instructional 
purposes, which the research facility also may sell to the State, wholesalers or retailers or 
directly to the public under certain circumstances.