An Act To Clarify Certificate of Approval Requirements under the State's Liquor Laws
Maine Legislature, Session 129, LD 2089
Committee: Veterans and Legal Affairs
Amends: 28-A MRSA §2, 28-A MRSA §1351, 28-A MRSA §1364, 28-A MRSA §1401-A, 28-A MRSA §1451

Legislative Document
No. 2089
S.P. 738
In Senate, January 28, 2020
An Act To Clarify Certificate of Approval Requirements under the 
State's Liquor Laws
Reported by Senator LUCHINI of Hancock for the Joint Standing Committee on Veterans 
and Legal Affairs pursuant to Resolve 2019, chapter 15, section 3.
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed 
pursuant to Joint Rule 218.
DAREK M. GRANT
Secretary of the Senate
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  28-A MRSA §2, sub-§8, as amended by PL 1997, c. 373, §11, is repealed 
and the following enacted in its place:
8.  Certificate of approval holder.  "Certificate of approval holder" means:
A.  An in-state manufacturer of malt liquor, wine or spirits licensed under section 
1355-A;
B.  An out-of-state manufacturer of or out-of-state wholesaler of malt liquor or wine 
who has been issued a certificate of approval under section 1361; or
C.  An out-of-state spirits supplier who has been issued a certificate of approval by 
the bureau under section 1381.
Sec. 2.  28-A MRSA §2, sub-§31-C is enacted to read:
31-C.  Spirits supplier.  "Spirits supplier" means a person who provides spirits for 
sale by the bureau in the State, including:
A.  An in-state or out-of-state spirits manufacturer;
B.  A person who engages in the out-of-state purchase of spirits for resale to the 
bureau; and
C.  An agent or representative of a person described in paragraph A or B.
Sec. 3.  28-A MRSA §1351, as amended by PL 1997, c. 373, §112, is further 
amended to read:
§1351.  Certificate of approval
1.  Certificate of approval required.  All in-state manufacturers, out-of-state 
manufacturers and of malt liquor or wine, out-of-state wholesalers of malt liquor or wine 
and out-of-state spirits suppliers must obtain a certificate of approval from the bureau.
2.  Definition.  For purposes of this section, "out-of-state spirits supplier" means a 
person described in section 2, subsection 31-C, paragraphs A and B.
Sec. 4.  28-A MRSA §1364, sub-§5 is enacted to read:
5.  Limitation on definition of "certificate of approval holder."  Notwithstanding 
section 2, subsection 8, as used in this section, "certificate of approval holder" means an 
in-state manufacturer of malt liquor or wine licensed under section 1355-A or an out-of-
state manufacturer of or out-of-state wholesaler of malt liquor or wine who has been 
issued a certificate of approval under section 1361.
Sec. 5.  28-A MRSA c. 51, sub-c. 5 is enacted to read:
SUBCHAPTER 5
SPIRITS
§1381.  Certificate of approval; spirits
1.  Definition.  For purposes of this section, "out-of-state spirits supplier" means a 
person described in section 2, subsection 31-C, paragraphs A and B.
2.  Certificate of approval required.  An out-of-state spirits supplier may not 
transport spirits into the State or cause spirits to be transported into the State unless the 
out-of-state spirits supplier has obtained a certificate of approval from the bureau in 
accordance with this section.
3.  Fee for certificate of approval.  The fee for a certificate of approval under this 
section is $1,000 per year, except that the fee for an out-of-state spirits supplier who 
transports or causes to be transported 120 gallons of spirits or less per year is $100.  
Payment of the fee must accompany the application for the certificate of approval.
4.  Conditions on certificate of approval.  A certificate of approval under this 
section is subject to the laws of the State and the rules of the bureau.
5.  Shipment restrictions.  Except as provided in sections 2073 and 2075, a person 
who has been issued a certificate of approval under this section may only transport spirits 
into the State or cause spirits to be transported into the State if the spirits are delivered to 
a wholesale liquor provider.
Sec. 6.  28-A MRSA §1401-A is enacted to read:
§1401-A.  Limitation on definition of "certificate of approval holder"
Notwithstanding section 2, subsection 8, as used in this chapter, unless the context 
otherwise indicates, "certificate of approval holder" means an in-state manufacturer of 
malt liquor or wine licensed under section 1355-A or an out-of-state manufacturer of or 
out-of-state wholesaler of malt liquor or wine who has been issued a certificate of 
approval under section 1361.
Sec. 7.  28-A MRSA §1451, sub-§1-A is enacted to read:
1-A.  Certificate of approval holder.  Notwithstanding section 2, subsection 8, 
"certificate of approval holder" means an in-state manufacturer of malt liquor or wine 
licensed under section 1355-A or an out-of-state manufacturer of or out-of-state 
wholesaler of malt liquor or wine who has been issued a certificate of approval under 
section 1361.
SUMMARY
This bill is reported out by the Joint Standing Committee on Veterans and Legal 
Affairs pursuant to Resolve 2019, chapter 15.  The committee has not taken a position on 
the substance of the bill and by reporting this bill out the committee is not suggesting and 
does not intend to suggest that it agrees or disagrees with any aspect of this bill. The 
committee is reporting the bill out for the sole purpose of obtaining a printed bill that can 
be referred to the committee for a public hearing and subsequent committee action in the 
normal course.  The committee is taking this action to ensure clarity and transparency in 
the legislative review of the proposal.
This bill resolves an inconsistency in the State's liquor laws by clarifying that an out-
of-state spirits supplier must obtain a certificate of approval from the Department of 
Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery 
Operations before it may transport spirits into the State for sale to the bureau or cause 
spirits to be transported into the State for sale to the bureau. The out-of-state spirits 
suppliers who must obtain a certificate of approval under the bill include both out-of-state 
spirits manufacturers and persons who engage in the out-of-state purchase of spirits for 
resale to the bureau.
The bill also clarifies which of the existing laws applicable to certificate of approval 
holders apply to out-of-state spirits suppliers, who are included in the definition of 
"certificate of approval holder" under the bill.  For example, the bill exempts out-of-state 
spirits suppliers from the statutory requirement that certificate of approval holders enter 
into a distribution contract with a wholesaler who is licensed to sell malt liquor or wine 
within the State.  These contracts are unnecessary because, under existing law, all spirits 
products must be sold to the bureau, which contracts with the entity that provides 
warehousing and distribution services for spirits products within the State.