An Act To Clarify Licensing Provisions for the Manufacture and Sale of Liquor (AFTER DEADLINE)
Maine Legislature, Session 128, LD 1642
Committee: Veterans and Legal Affairs
Sponsors: LUCHINI
Amends: 28-A MRSA §1355-A

Legislative Document
No. 1642
H.P. 1133
House of Representatives, June 22, 2017
An Act To Clarify Licensing Provisions for the Manufacture and 
Sale of Liquor
(AFTER DEADLINE)
(EMERGENCY)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative LUCHINI of Ellsworth.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Department of Administrative and Financial Services, Bureau of 
Alcoholic Beverages and Lottery Operations is charged with enforcing the laws relating 
to licensing of the manufacture and sale of liquor; and 
Whereas, the bureau's recent interpretation of a law regarding brewery ownership 
could lead to consequences that were not intended by the Legislature; and 
Whereas, it is imperative that the law be clarified as soon as possible to avoid 
unintended consequences that could imperil operations by breweries during premium 
tourism season; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  28-A MRSA §1355-A, sub-§2, ¶I, as amended by PL 2017, c. 34, §1, is 
further amended to read: 
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, 
paragraphs D and E. 
(5)  The licensee shall ensure that products purchased for off-premises 
consumption under paragraph D are not consumed on the licensed premises. 
Sec. 2.  28-A MRSA §1355-A, sub-§2-A is enacted to read: 
2-A.  Majority interest requirement.  A person licensed as a manufacturer under 
this section who is authorized by this section to hold a retail license may be issued a retail 
license as long as the manufacturer has a controlling interest in both the licensed 
manufacturing facility and the licensed retail establishment, regardless of the business 
structure of either licensed entity. 
Sec. 3.  28-A MRSA §1355-A, sub-§5, ¶E, as enacted by PL 2011, c. 629, §22, 
is amended to read: 
E.  A holder of a distillery or small distillery license may be issued one license under 
chapter 43 per distillery location for a connected establishment for the sale of liquor 
to be consumed on the premises at the distillery. 
(1)  For the purposes of this paragraph, "connected establishment" means a Class 
A restaurant or a Class A restaurant/lounge that is owned exclusively by the 
holder of the in-state manufacturer license. 
(2)  All records of the manufacturer license must be kept separate from the 
records of the retail licensee. 
Sec. 4.  Bureau of Alcoholic Beverages and Lottery Operations prohibited 
from suspending, revoking or refusing to renew certain licenses under 
certain circumstances.  Before June 30, 2018, the Department of Administrative and 
Financial Services, Bureau of Alcoholic Beverages and Lottery Operations may not 
suspend, revoke or refuse to renew a license issued under the Maine Revised Statutes, 
Title 28-A, section 1355-A or Title 28-A, chapter 43 or 45 that was initially issued prior 
to June 1, 2017 solely on the basis that the establishment licensed under Title 28-A, 
chapter 43 or 45 was determined by the bureau after June 1, 2017 to not be exclusively 
held or exclusively owned by a person licensed to manufacture liquor under Title 28-A, 
section 1355-A. 
The prohibition described in this section does not apply if the reason for suspension, 
revocation or failure to renew is due to the licensee's substantial misrepresentation of or 
failure to disclose material facts required for the issuance or renewal of the license. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill clarifies one of the criteria that qualify a person who is licensed to 
manufacture liquor in the State to also have an establishment licensed for the sale of 
liquor to be consumed on the licensed premises.  The bill requires that the person have a 
controlling interest in both the manufacturing business and the on-premises 
establishment, regardless of the business structure of either entity.  Under current law, 
and as applicable to this bill, "person" is defined as an individual, partnership, 
corporation, firm, association or other legal entity. 
The bill also temporarily prohibits the Department of Administrative and Financial 
Services, Bureau of Alcoholic Beverages and Lottery Operations from suspending, 
revoking or refusing to renew certain licenses for the manufacture or sale of liquor issued 
prior to June 1, 2017 based solely on a change in the bureau's interpretation of the terms 
"exclusively held" or "exclusively owned." 
FISCAL NOTE REQUIRED 
(See attached) 
Approved: 06/21/17
LD 1642     
LR 2394(01)
Fiscal Detail and Notes
Fiscal Note
Minor revenue increase - General Fund
Clarifications to the criteria that allow entities licensed to manufacture liquor also to have an establishment licensed 
for the sale of liquor to be consumed on the licensed premises will allow more entities to seek licensure from the 
Bureau of Alcoholic Beverages and Lottery Operations.  The additional licenses are anticipated to result in a minor 
increase in General Fund revenue.  
An Act To Clarify Licensing Provisions for the Manufacture and Sale of Liquor
Fiscal Note for Original Bill
Sponsor: Rep. Luchini of Ellsworth
Fiscal Note Required: Yes
LR2394(01) - Fiscal Note - Page 1 of 1