An Act To Update the Laws Relating to Liquor Licensing and Enforcement
Maine Legislature, Session 129, LD 1826
Committee Amendment CA_B_S294 (Senate)
Amends: 28-A MRSA §83-C, 28-A MRSA §460, 28-A MRSA §606, 28-A MRSA §708-C, 28-A MRSA §709, 28-A MRSA §710, 28-A MRSA §1052-D, 28-A MRSA §1355-A, 28-A MRSA §1651

COMMITTEE AMENDMENT "l?" to S.P. 616, L.D. 1826, Bill, "An Act To 
Update the Laws Relating to Liquor Licensing and Enforcement" 
Amend the bill by inserting after section 2 the following: 
'Sec. 3. 28-A MRSA §83-C, sub-§2-A is enacted to read: 
2-A. Special pricing situations. Notwithstanding section 1651, the bureau may. by 
rule. set retail prices on spirits at different levels than those established by the 
commission in the following circumstances. 
A. The bureau may establish special retail prices on certain listed spirits items to be 
made available to the consumer at all agency liquor stores. 
B. The bureau may reduce the retail price of a listed spirits item that is unlikely to be 
sold for the retail price set by the commission. 
C. The bureau may reduce. at the expense of the manufacturer or supplier. the retail 
price of those test-market spirits items that fail to meet set minimum gross profit 
standards after a 3-month period.' 
Amend the bill by striking out all of sections 5 to 8 and inserting the following: 
'Sec. 5. 28-A MRSA §460, sub-§2, ~-1, as amended by PL 2019, c. 79, §1, is 
further amended to read: 
M-1. Spirits served at a taste-testing event must be provided by the agency liquor 
store or purchased, at the retail list price, by a licensed sales representative 
participating in the taste-testing event from existing stock available for purchase at 
the agency liquor store. 
Sec. 6. 28-A MRSA §606, sub-§1, as amended by PL 2013, c. 368, Pt. V, §35, is 
further amended to read: 
1. Purchase of liquor. Subject to the restrictions provided in subsection 1-A, a 
person licensed to sell spirits ;md fortified wine for on-premises consumption must 
purchase spirits ;md fortified wine from an agency liquor store licensed as a reselling 
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agent under section 453-C. This subsection does not apply to public service corporations 
operating interstate.' 
Amend the bill by striking out all of sections 12 to 14 and inserting the following: 
'Sec. 12. 28-A MRSA §606, sub-§4-B, as enacted by PL 2019, c. 168, §1, is 
amended to read: 
4-B. Discount rate for small distilleries. Beginning July 1, 2019, the bureau shall 
set the price of spirits produced by a small distillery licensed under section 1355-A, 
subsection 5, paragraph B and retained by that small distillery for sale under section 
1355-A, subsection 5, paragraph G or Hat a discount of22.75% of the list retail price. 
Sec. 13. 28-A MRSA §708-C, as amended by PL 2017, c. 347, §2, is further 
amended to read: 
§708-C. Donations to public broadcasting stations, municipal entities, incorporated 
civic organizations and national organizations 
1. Donations for an auction or award. A person licensed by the bureau under 
section 1355-A, a certificate of approval holder, a manufacturer or supplier of distilled 
spirits or a wholesaler may donate a certificate to purchase its product or donate its 
product to a public broadcasting station, a municipal entity, an incorporated civic 
organization or a similarly purposed national organization designated by the United 
States Internal Revenue Service under the United States Internal Revenue Code of 1986, 
Section 501(c)(3) for the purpose of an auction or to offer as a prize, gift or award in 
conjunction with efforts to support the purposes of the incorporated civic organization, 
similarly purposed organization. municipal entity or public broadcasting station. Spirits 
donated in accordance with this subsection must be listed by the commission for sale in 
this State, clearly labeled as a donation and purchased from the State's wholesale liquor 
provider at list the wholesale price. A person authorized to make a donation in 
accordance with this subsection shall maintain a record of each donation, including the 
value of the donation and the date on which it was made. A recipient of a donation under 
this subsection must be 21 years of age or older. 
2. Donations for consumption at on-premises events. A person licensed by the 
bureau under section 1355-A, a certificate of approval holder. a manufacturer or supplier 
of spirits or a wholesaler may donate its product or provide malt liquor, wine, spirits or 
fortified wine at a reduced price to a person licensed by the bureau to serve aleoholio 
beverages liquor for on-premises consumption at an event designed to benefit a municipal 
entity. an incorporated civic organization or a similarly purposed national organization 
designated by the United States Internal Revenue Service under the United States Internal 
Revenue Code of 1986, Section 50l(c)(3). Spirits donated in. aoeordanee wi-th this 
subseetion must ha1;e first been sold to the State or the State's eontraoted 1.vholesaler for 
listin.g, prioin.g and distribution in. aeeordanee Ylith this Title. Spirits donated in 
accordance with this subsection must be listed by the commission for sale in this State, 
clearly labeled as a donation and purchased from the State's wholesale liquor provider at 
the wholesale price. A person authorized to make a donation or offer its product at a 
reduced price under this subsection shall maintain a record of the products donated or 
offered, including the value of each, the reduced price when applicable and the date on 
which the product was provided. All applicable excise taxes on donated malt liquor, 
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wine, spirits and fortified wine must be remitted as required by this Title. A licensee 
provided product in accordance with this subsection: 
A. Shall maintain a record of each product received and the date on which it was 
received; 
B. Shall maintain a record of the name of the municipal entity, incorporated civic 
organization or similarly purposed national organization the event was designed to 
benefit and for which the product is provided; 
C. Shall ensure that the product provided is served only at the event designed to 
benefit the municipal entity. incorporated civic organization or similarly purposed 
national organization; 
D. Shall ensure that excess product that was donated for the event is returned to the 
donor within a reasonable period after the event; and 
E. Shall ensure that containers holding donated product are returned to the donor for 
recycling as appropriate and not presented for redemption under Title 32, chapter 28. 
For purposes of this section, "municipal entity" means a county, city, town or 
municipal agency or department. 
Sec. 14. 28-A MRSA §709, sub-§1, ,fA, as amended by PL 2013, c. 504, §1, is 
further amended to read: 
A. Ne A licensee eF_. employee of a licensee or agent of a licensee may not: 
(1) Offer or deliver any free liquor to any person or group of persons; 
(2) Deliver more than 2 drinks eon.taming 4 1/2 ounces of spirits, a carafe 
containing more than one liter or 33.8 ounces of wine, or any serving or pitcher 
containing more than one liter or 33.8 ounces of malt liquor, to one person at one 
time; 
(3) Sell, offer to sell or deliver to any person or group of persons an unlimited 
number of drinks for a fixed price, except at private functions not open to the 
public; 
(4) Encourage or permit, on the licensed premises, any game or contest that 
involves drinking or the awarding of drinks as prizes; or 
(5) Engage in any other practice the specific purpose of which is to encourage 
customers of the licensee to drink to excess. 
Sec. 15. 28-A MRSA §710, sub-§1, as amended by PL 2013, c. 207, §1, is 
further amended to read: 
1. Advertising outside of licensed premises. A person, except wholesale licensees 
and certificate of approval holders, may not advertise or permit to be advertised, by more 
than 2 i signs, on the outside of any licensed premises, or on any building, ground or 
premises under that person's control and contiguous or adjacent to the licensed premises: 
A. The fact that the licensee has liquor or any brand of liquor for sale; 
B. The price at which liquor is sold by the licensee; or 
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C. Any other advertisement that indicates any reference to liquor other than the name 
of the licensed premises, an image accompanying the name of the licensed premises 
or a brand name or image appearing on a patio umbrella in an outside seating area of 
the licensed premises. 
For agency liquor stores, 0B:6 J of the :2 ,2- signs permitted by this subsection is-aB: are 
agency liquor store sigB: ~ 
as described by rule.' 
Amend the bill by striking out all of section 19 and inserting the following: 
'Sec. 19. 28-A MRSA §1052-D, sub-§1, as enacted by PL 2013, c. 531, §4, is 
amended to read: 
1. Taste-testing event license. A person who has been issued a license under 
section 1355-A, a wholesaler licensed under section 1401 eF .. a person who has been 
granted a certificate of approval from the bureau, a supplier or foreign manufacturer of 
spirits or a broker may apply jointly in any combination for a license to participate in a 
taste-testing event subject to the conditions prescribed by this section. For the purposes 
of this section, "broker" means a person who represents suppliers or manufacturers of 
spirits and "foreign manufacturer of spirits" means a person who produces spirits outside 
of the State.' 
Amend the bill by striking out all of section 21 and inserting the following: 
'Sec. 21. 28-A MRSA §1052-D, sub-§6, as enacted by PL 2013, c. 531, §4, is 
amended to read: 
6. Up to 10 licensed events per year; one event per license. A certificate of 
approval holder, a manufacturer licensed under section 1355-A, a supplier or foreign 
manufacturer of spirits, a broker or a wholesaler licensed under section 1401 may obtain 
up to 10 licenses under this section per calendar year. Each license permits a taste-testing 
event lasting up to 4 consecutive days. 
Sec. 22. 28-A MRSA §1052-D, sub-§7, 11, as enacted by PL 2013, c. 531, §4, is 
amended to read: 
I. A licensee under this section who is a manufacturer licensed under section 
1355-A, is a wholesaler licensed under section 1401 or is a certificate of approval 
holder may provide for taste testing any malt liquor or wine that the licensee, 
wholesaler or manufacturer manufactures or distributes that is registered and 
authorized for distribution and sale under this Title eF. A licensee under this section 
who is a manufacturer of spirits licensed under section 1355-A, a supplier or foreign 
manufacturer of spirits or a broker may provide for taste testing any spirits the 
lieoosee or manu.faetw=er maau.faetares listed for sale by the ffil:f6£ffi commission. 
Excise taxes for malt liquor and wine under section 1652 must be paid before the 
scheduled date of the taste-testing event.' 
Amend the bill by striking out all of sections 24 and 25 and inserting the following: 
'Sec. 24. 28-A MRSA §1355-A, sub-§5, 1G, as amended by PL 2019, c. 168, 
§3, is further amended to read: 
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COMMITTEE AMENDMENT"[) "to S.P. 616,L.D. 1826 (S,-'c)C\L\ j 
G. Notwithstanding paragraph D, a holder of a small distillery license that sells its 
products directly to consumers for off-premises consumption under paragraph B, 
subparagraph (3) or subsection 2, paragraph C, D or E may pay the bureau the 
difference between the distillery's price charged to the bureau and the discounted list 
retail price charged by the bureau under section 606, subsection 4-B. 
A small 
distillery is not required to transport spirits that will be sold for off-premises 
consumption as described in this paragraph to a warehouse operated by the bureau or 
by a wholesaler contracted by the bureau under section 90. A holder of a small 
distillery license shall record the quantity of spirits sold for off-premises consumption 
that were not transported to a warehouse as described in this paragraph and submit 
monthly reports of this information, along with the full amount of state liquor tax due 
as prescribed by chapter 65, to the bureau in a manner prescribed by the bureau. 
Sec. 25. 28-A MRSA §1355-A, sub-§5, ,rJI, as amended by PL 2019, c. 168, §4, 
is further amended to read: 
H. Notwithstanding paragraph D, a holder of a small distillery license that sells its 
products directly to consumers for on-premises consumption under paragraph E or 
subsection 2, paragraph B, E or F may pay the bureau the difference between the 
distillery's price charged to the bureau and the discounted list retail price charged by 
the bureau under section 606, subsection 4-B. A small distillery is not required to 
transport spirits that will be sold for on-premises consumption as described in this 
paragraph to a warehouse operated by the bureau or by a wholesaler contracted by the 
bureau under section 90. A holder of a small distillery license shall record the 
quantity of spirits sold for on-premises consumption that were not transported to a 
warehouse as described in this paragraph and submit monthly reports of this 
information, along with the full amount of state liquor tax due as prescribed by 
chapter 65, to the bureau in a manner prescribed by the bureau.' 
Amend the bill by inserting after section 26 the following: 
'Sec. 27. 28-A MRSA §1651, sub-§1, as amended by PL 2015, c. 166, §6, is 
further amended to read: 
1. State spirits tax. Except as provided in section 83-C, subsection 2- 2-A, the 
commission shall determine and set the list retail price at which to sell all spirits to 
agency liquor stores that will produce an. aggregate state liquor tax sufficient revenue to 
pay all liquor rela-ted spirits-related expenses of the "Bureau of i\Jooholio "Be:verages an.d 
Lottery Operation.s bureau and to return to the Liquor Operation Revenue Fund 
established in Title 30-A. section 6054 and the General Fund an amount substantially 
equal to the amount of state futaor spirits tax collected in the previous fiscal year. 
C. 
The commission. bureau shall add an.y oost to the State rela-ted to handling 
eon.tamers ret\:lffied fur charge agency liquor stores the refund value pursuant to Title 
38, section 3103 to the established prioe withoot markup in addition to the wholesale 
price for each product purchased. 
Sec. 28. 28-A MRSA §1651, sub-§2, as amended by PL 2013, c. 368, Pt. V, 
§§48 and 61, is repealed.' 
COMMITTEE AMENDMENT 
R. of S. 
COMMITTEE AMENDMENT"(~" to S.P. 616, L.D. 1826 l ~ · d c.-1 Y~ 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment, which is the minority report of the committee, makes the following 
changes to the bill. 
1. It makes technical changes to reflect the emergency enactment of Public Law 
2019, chapter 79 and Public Law 2019, chapter 168. 
2. 
It moves provisions of current law that authorize the Department of 
Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery 
Operations to, in special circumstances, set prices on spirits at different levels than those 
established by the State Liquor and Lottery Commission from a section of the Maine 
Revised Statutes, Title 28-A related to the state tax on spirits to a section of Title 28-A 
related to the administration of the spirits business by the bureau. 
3. It clarifies that an on-premises retail licensee must purchase spirits from an agency 
liquor store that is licensed as a reselling agent. 
4. 
It removes the provision of the bill authorizing the bureau to offer instant 
redeemable coupons to spirits customers through a publicly accessible website or digital 
media platform. 
5. It expands the list of entities that may benefit from a donation of liquor to be 
auctioned or offered as a prize for fund-raising purposes or sold by a licensed 
on-premises retailer during a fund-raising event to include a county, city, town or 
municipal agency or department. 
6. It allows a licensed on-premises retailer to deliver a serving or drinks containing 
up to 4 1/2 ounces of spirits to a person at one time. 
7. 
It clarifies the section of the bill that prohibits placing more than 5 signs 
advertising the sale of liquor on the outside of any licensed retail premises. Under the 
amendment, neither a sign in which the only reference to liquor is the name of the 
licensed premises or an image accompanying the name of the licensed premises nor a 
patio umbrella that bears the brand name or image of a liquor product and that is located 
in the outside seating area of a licensed premises counts as one of the 5 permitted signs. 
8. The bill authorizes a broker of spirits, which is defined as a person who represents 
suppliers and manufacturers of spirits, to conduct up to 10 spirits taste-testing events per 
year. The amendment further authorizes a supplier of spirits or a foreign manufacturer of 
spirits, which is defmed as a person who produces spirits outside of the State, to obtain a 
license to conduct up to 10 taste-testing events per year. 
9. It clarifies that revenue from the state tax on spirits must be transferred to the 
Liquor Operation Revenue Fund established in Title 30-A, section 6054 and to the 
General Fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/11/19 ;:?.;Pac 
LD 1826 
LR2379(03) 
An Act To Update the Laws Relating to Liquor Licensing and Enforcement 
Fiscal Note for Bill as Amended by Committee Amendment '/2:;' { S-8-C\ Li9 
Committee: Veterans and Legal Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Any additional costs to the Bureau of Alcoholic Beverages and Lottery Operations as a result of this legislation are 
anticipated to be minor and can be absorbed within existing budgeted resources. 
LR2379(03) - Fiscal Note - Page 1 of 1