An Act To Implement the Recommendations of the Government Oversight Committee Regarding Bureau of Alcoholic Beverages and Lottery Operations Reporting Requirements
Maine Legislature, Session 129, LD 0025
Committee: Veterans and Legal Affairs
Amends: 8 MRSA §372, 28-A MRSA §83-B, 28-A MRSA §83-C, 28-A MRSA §84

Legislative Document
No. 25
H.P. 26
House of Representatives, January 2, 2019
An Act To Implement the Recommendations of the Government 
Oversight Committee Regarding Bureau of Alcoholic Beverages and 
Lottery Operations Reporting Requirements
Reported by Representative MASTRACCIO of Sanford for the Government Oversight 
Committee pursuant to the Maine Revised Statutes, Title 3, section 997, subsection 2.
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed 
pursuant to Joint Rule 218.
ROBERT B. HUNT
Clerk
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §372, sub-§2, ¶H, as amended by PL 1991, c. 780, Pt. Y, §109, 
is further amended to read:
H.  Certify monthly to the Treasurer of State, the commission and the commissioner a 
full and complete statement of lottery revenues, prize disbursements and other 
expenses for the preceding month; submit an annual report, subject to the approval of 
the commission, that must include a full and complete statement of lottery revenues, 
prize disbursements and expenses, to the Governor and the Legislature, together with 
recommendations for changes in this chapter;
Sec. 2.  8 MRSA §372, sub-§2, ¶I, as amended by PL 2003, c. 673, Pt. MM, §1, 
is further amended to read:
I.  Carry on a continuous study and investigation of the lotteries throughout the State 
and the operation and administration of similar laws that may be in effect in other 
jurisdictions.  The director, subject to the prior approval of the commission, may 
enter into a written agreement with a multijurisdictional lottery association for the 
operation, marketing and promotion of a joint lottery or joint lottery games with other 
jurisdictions.
Any final agreement entered into with a multijurisdictional lottery association must 
provide that the director has the authority to terminate the agreement upon the 
provision of reasonable notice, not to exceed 6 months.  The final agreement must 
further provide that the director may terminate the agreement at any time, without 
prior notice, in the event that the director's authority is withdrawn or limited by law; 
and
Sec. 3.  8 MRSA §372, sub-§2, ¶J, as enacted by PL 1991, c. 780, Pt. Y, §112, is 
amended to read:
J.  Assign duties as necessary to a designee.; and
Sec. 4.  8 MRSA §372, sub-§2, ¶K is enacted to read:
K.  Beginning February 15, 2020, submit a report annually, subject to the approval of 
the commission, to the Governor and the joint standing committees of the Legislature 
having jurisdiction over lottery matters and appropriations and financial affairs. The 
joint standing committee of the Legislature having jurisdiction over lottery matters 
may submit to the Legislature legislation based on the report.  The report must 
include:
(1)  A list of the decisions made by the commission and resulting actions for the 
preceding calendar year relevant to lottery operations;
(2)  A complete statement of lottery revenues, prize disbursements and expenses 
and appropriations from the General Fund, if any, for the preceding calendar 
year;
(3)  A 5-year history of the account used to manage lottery operations, which 
must include the amount of revenues deposited into the State Lottery Fund and 
the amounts transferred to the General Fund;
(4)  A detailed statement of the expenditures made to promote lottery sales 
through marketing, advertising and recruitment of agents for the preceding 
calendar year;
(5)  A description of the lottery marketing and advertising activities for the 
preceding calendar year. The description must identify each radio station and 
television station, if any, that broadcast or distributed the advertising;
(6)  For each radio station and television station identified pursuant to 
subparagraph (5), the format of advertising activity and amount of the 
expenditures for the preceding calendar year associated with each station; and
(7)  Any recommendations for changes to this chapter.
Sec. 5.  28-A MRSA §83-B, sub-§11, as enacted by PL 2013, c. 476, Pt. A, §9, is 
amended to read:
11.  Certification.  Certify monthly to the Treasurer of State and the commissioner a 
complete statement of expenses and revenues collected in accordance with the licensing 
and enforcement functions of the bureau.  The bureau shall submit an annual report that 
includes a complete statement of expenses and revenues collected in accordance with the 
licensing and enforcement functions of the bureau to the Governor and the joint standing 
committee of the Legislature having jurisdiction over alcoholic beverage matters, 
together with recommendations for changes to this Title.
Sec. 6.  28-A MRSA §83-C, sub-§7, as enacted by PL 2013, c. 476, Pt. A, §9, is 
amended to read:
7.  Certification.  Certify monthly to the Treasurer of State and the commissioner a 
complete statement of revenues from and expenses for the sale of spirits by the bureau 
and submit an annual report that includes a complete statement of the revenues and 
expenses of the bureau to the Governor and the joint standing committee of the 
Legislature having jurisdiction over alcoholic beverage matters, together with 
recommendations for changes to this Title;
Sec. 7.  28-A MRSA §84, sub-§5, as amended by PL 2015, c. 430, §2, is further 
amended to read:
5.  Certification.  Certify monthly to the Treasurer of State and the Commissioner of 
Administrative and Financial Services a complete statement of revenues and expenses for 
liquor sales for the preceding month and submit an annual report that includes a complete 
statement of the revenues and expenses for the bureau to the Governor and the 
Legislature, together with recommendations for changes in this Title; and
Sec. 8.  28-A MRSA §84, sub-§6, as enacted by PL 2015, c. 430, §3, is amended 
to read:
6.  Implement a spirits sales data reporting system.  Collect from reselling agents 
data on spirits sales made by each reselling agent to establishments licensed to sell spirits 
for on-premises consumption. The data must include, but is not limited to, the amount 
and date of sale of each product code sold to on-premises licensees by the reselling agent.  
For the purposes of this subsection, "product code" has the same meaning as in section 
461.  For the purposes of collecting on-premises spirits sales data from reselling agents, 
the director shall enter into a contract with a trade association representing states that 
control and manage the sale of spirits.  The contract must require that neither the bureau 
nor the trade association may make publicly available any information that would 
specifically identify the reselling agent, including, but not limited to, the reseller's name, 
the name of the reseller's agency liquor store, the reseller's agency liquor store's address 
or the address of any associated storage facility of the reselling agent.; and
Sec. 9.  28-A MRSA §84, sub-§7 is enacted to read:
7.  Annual report.  Beginning February 15, 2020, submit a report annually, subject 
to the approval of the commission, to the Governor and the joint standing committees of 
the Legislature having jurisdiction over alcoholic beverage matters and appropriations 
and financial affairs.  The joint standing committee of the Legislature having jurisdiction 
over alcoholic beverage matters may submit to the Legislature legislation based on the 
report.  The report must include:
A.  A complete statement of the revenues and expenses for the bureau for the 
preceding calendar year;
B.  A complete statement of the information required by section 83-B, subsection 11 
for the preceding calendar year;
C.  A complete statement of the information required by section 83-C, subsection 7 
and section 84, subsection 5 for the preceding calendar year;
D.  The information required by section 83-C, subsection 9; and
E.  Any recommendations for changes to this Title.
SUMMARY
This bill implements recommendations of the Government Oversight Committee 
based on the report on the Maine State Lottery issued by the Office of Program 
Evaluation and Government Accountability in April 2017. The bill removes a provision 
of law that requires the Director of the Bureau of Alcoholic Beverages and Lottery 
Operations within the Department of Administrative and Financial Services to certify 
certain financial information related to lottery operations to the Treasurer of State 
monthly. The bill modifies the director's annual reporting requirements related to lottery 
operations.  It requires the director to submit an annual report to the Governor and the 
joint standing committees of the Legislature having jurisdiction over lottery matters and 
appropriations and financial affairs.  The report must include specific information on 
lottery activities and finances and marketing and advertising efforts and a listing of 
decisions made by the State Liquor and Lottery Commission and actions taken as a result.
 The bill also amends several provisions related to monthly certification and annual 
reporting requirements related to administration of the State's spirits business and the 
bureau's oversight of the manufacture, distribution and sale of liquor in the State to make 
them consistent with the bill's proposed requirements for lottery operations reporting.  
Finally, the bill authorizes the joint standing committee of the Legislature having 
jurisdiction over lottery and alcoholic beverage matters to submit legislation based on the 
reports required to be submitted by the director.