An Act To Clarify the Laws Governing Financial Relationships between Entities within the Three-tier System for Distribution of Alcohol
Maine Legislature, Session 129, LD 2088
Committee Amendment CA_A_S426 (Senate)
Amends: 28-A MRSA §707

COMMITTEE AMENDMENT " flr" to S.P. 737, L.D. 2088, Bill, "An Act To 
Clarify the Laws Governing Financial Relationships between Entities within the Three-
tier System for Distribution of Alcohol" 
Amend the bill by striking out all of section 3 and inserting the following: 
'Sec. 3. 28-A MRSA §707, sub-§3-A is enacted to read: 
3-A. 
Manufacturer or importer; prohibited financial interests. 
Except as 
authorized in subsection 7 and sections 707-A and 1355-A, a licensed in-state 
manufacturer, an out-of-state spirits supplier, an out-of-state manufacturer of malt liquor 
or wine that has been issued a certificate of approval or an out-of-state wholesaler of malt 
liquor or wine that has been issued a certificate of approval may not have any financial 
interest, direct or indirect, in any: 
A. Wholesale licensee; or 
B. Retail licensee.' 
Amend the bill by striking out all of section 5 and inserting the following: 
'Sec. 5. 28-A MRSA §707, sub-§4-A is enacted to read: 
4-A. Wholesale licensee; prohibited financial interests. Except as authorized in 
subsection 7, a wholesale licensee may not have any financial interest, direct or indirect, 
many: 
A. 
Licensed in-state manufacturer, out-of-state spirits supplier, out-of-state 
manufacturer of malt liquor or wine that has been issued a certificate of approval or 
out-of-state wholesaler of malt liquor or wine that has been issued a certificate of 
approval; or 
B. Retail licensee.' 
Amend the bill by striking out all of section 7 and inserting the following: 
'Sec. 7. 28-A MRSA §707, sub-§5-A is enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" 
"to S.P. 737, L.D. 2088 
5-A. 
Retail licensee; prohibited financial interests. 
Except as authorized in 
sections 707-A and 1355-A, a retail licensee may not have any financial interest, direct or 
indirect, in any: 
A. 
Licensed in-state manufacturer, out-of-state spirits supplier, out-of-state 
manufacturer of malt liquor or wine that has been issued a certificate of approval or 
out-of-state wholesaler of malt liquor or wine that has been issued a certificate of 
approval; or 
B. Wholesale licensee.' 
Amend the bill in section 8 in subsection 6 in the 5th line (page 2, line 25 in L.D.) by 
striking out the following: "less" and inserting the following: 'not more' 
Amend the bill in section 10 in subsection 8 by striking out all of paragraph B (page 
3, lines 10 to 13 in L.D.) and inserting the following: 
'B. 
"Out-of-state spirits supplier" means an out-of-state manufacturer of spirits 
products that are listed by the commission for sale in the State or a person that 
engages in the out-of-state purchase of spirits products that are listed by the 
commission for sale in the State and that resells those spirits products to the bureau.' 
Amend the bill in section 11 in paragraph Bin the first line (page 3, line 16 in L.D.) 
by striking out the following: "4-A" and inserting the following: '5-A' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
The bill generally prohibits an entity within one tier of the 3-tier system of alcohol 
distribution in Maine from having a financial interest in an entity within another tier of 
the 3-tier system in Maine and extends the fmancial interest prohibitions of the 3-tier 
system, which apply under current law to entities that manufacture, import or sell malt 
liquor and wine within the State, to entities that manufacture, import or sell spirits within 
the State. Under the bill, in-state and out-of-state manufacturers comprise the first tier of 
alcohol distribution, in-state and out-of-state wholesalers comprise the 2nd tier of alcohol 
distribution and in-state retailers comprise the 3rd tier of alcohol distribution. 
This amendment retains the bill's extension of the financial interest prohibitions of 
the 3-tier system to spirits but restructures the first and 2nd tiers of that system to match 
the structure of the 3-tier system that applies to malt liquor and wine under current 
practice. Under the amendment, the first tier of alcohol distribution consists of in-state 
manufacturers of spirits, wine or malt liquor; out-of-state manufacturers of spirits, wine 
and malt liquor that ship their products to Maine; and out-of-state entities that are not 
manufacturers but that purchase spirits, wine or malt liquor for shipment to and eventual 
resale in Maine. The 2nd tier of alcohol distribution includes in-state wholesalers of malt 
liquor or wine. Because Maine is a control state, private entities are not authorized to act 
as wholesalers of spirits within the State and there is therefore no need to include such 
entities in the amendment's 2nd tier of alcohol distribution. As in the bill, licensed 
retailers comprise the 3rd tier of alcohol distribution. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" 
"to S.P. 737, L.D. 2088 
The amendment also corrects an error in the bill by specifying that the prohibited 
financial interests between entities in different tiers of the 3-tier system do not include a 
minor investment by an entity within one tier of the 3-tier system if that investment 
amounts to not more than 1 % of the securities of a business entity within another tier of 
the 3-tier system. 
COMMITTEE AMENDMENT