An Act to Provide for the Direct Shipment of Spirits to Consumers
Maine Legislature, Session 131, LD 1695
Committee Amendment CA_A_S664 (Senate)
Amends: 28-A MRSA §1358

COMMITTEE AMENDMENT " A " to S.P. 682, L.D. 1695, "An Act to Provide for
the Direct Shipment of Spirits to Consumers"
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 28-A MRSA §1358 is enacted to read:
§1358. Direct shipment of spirits
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Case equivalent" has the^same meanmg as in section 1457, subsection 1-A.
paragraph B.
B. "Common carrier" means a company that transports goods upon reasonable request.
on regular routes and at set rates.
C, "Direct shipper" means a^istillery^small distillerv, rectifier or out-of-state soirits
manufacturer that has obtained a spirits direct shipper license under subsection 2.
D. Direct shipuer discount rate" means a percentage thaH^egyal to the percentage
discount rate for small distilleries that sell their products directly to consumers under
section 606. subsection 4-B.
E. Fulfillment provider" means a bonded logistics agent of a direct shipper that
provides fulfilhnent services, includine warehousing, packaeine. distribution and order
8 orocessine for the shipment of spirits to a consumer and arranges for transport of spu-its
to a consumer by a common carrier and that has obtained a fulfillment Drovider
0 registration under subsection 9.
P. "Outside the State" means any state other than this State and any territory or
possession of the United States. but does not include a foreign country.
2. Direct shipment of spirits; license required. A distillerv. small distillerv, rectifier
or out-of-state spirits manufacturer holdmg^a. federal basic distilled spirits plant permit
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "// " to S.P. 682, L.D. 1695
^os
located within or outside the State that has been issued a certificate of label aooroval by the
United States Department of the Treasury. Alcohol and Tobacco Tax and Trade Bureau for
a product to be shipped may obtain a spirits direct shipper license by filine with the bureau
an application m a form determined by the bureau accompanied by an application fee of
not more than $200. a copy of the applicant's current federal basic distilled spirits plant
permit and a list of spirits labels to be shipped in accordance with this section.
3. Direct shipper application. Before sending a shipment to a resident of this State,
a direct shipper shall file an aoolication for a spirits direct shipper license under subsection
2 with the bureau on a form issued by the bureau alone with a tme copy of its current
djstillery. small distillery, rectifier or out-of-state spirits manufacturer license issued in this
State or another state and a $ 100 registration fee.
4. Direct shipment requirements. A direct shipper or the direct shipper's fulfilhnent
provider may only ship spirits that were produced by or for the direct shipper. owned by
the direct shipper or sold under the distiller/ name of the direct shipper in accordance with
the direct shipper's federal basic distilled spirits plant permit to a re is at least
21 years of age and that are intended for personal use and not for resale. A direct shipper
or the direct shipper's fulfillment provider shall label each oackase to be shipped in
accordance with this section so that it conspicuously reads: "CONTADSTS ALCOHOL:
SIGNATURE OF A PERSON 21 YEARS OF AGE OR OLDER IS REQUIRED FOR
DELIVERY."
5. Common carrier. Shipments made in accordance with this section must be made
by a common carrier and must be accompanied by a shipping label that clearly indicates
the name ofjhe direct shipDer and the name and residence address of the recipient. The
common carrier shall obtain the signature of a person 21 years of aee or older at the address
listed on the shippine label prior to delivery of the shipment. The common carrier shall
request photographic identification from tiie Derson signing for the shipment and verify that
the person is 21 years of age or older.
6. Shipment restrictions and limitations. The followmg shipment restrictions and
limitations apply to a direct shipper under this section.
A. A direct shipper may ship no more than one case equivalent of spirits per recipient
address m a 3-month period and may not exceed 4 case equivalents of spirits per
recipient address in a calendar year.
B. A direct shipper located within the State may ship to recipients in this State only
spirits that the direct shipper is licensed to ship under subsection 2 and that are listed
5 for sale in the State by the commission under section 81. subsection 3. A direct shipper
under this paragraph may sMi? within _the^tate no more than 60 case equivalents of
spirits in a calendar year.
C. A direct shipper located outside the State may ship to recipients in this State only
9 spirits that the direct shipper is licensed to ship under subsection 2 and that are not
listed for sale in the State by the commission under section 81. subsection 3. A direct
shipper under this oaraeraoh may ship within the State no more than 60 case
equivalents of spirits in a calendar year. If. within a 12-month period, a direct shipper
under thisjiaragraoh ships more fhan 10 case equivalents of a single spirits product
within the State, the du-ect shippermustreguest that that spirits product be listed by the
commission under section 8 1. subsection 3.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " d " to S.P. 682, L.D. 1695 <
7. Prohibited shippine areas. A direct shipper may not ship to any address in an area
identified by the bureau as a prohibited shipping area or a local option area.
8. License renewal. A direct shipper may annually renew its spirits direct shipper
license with the bureau by oavine a $50 renewalJee and providing the bureau with a tme
copy of its current distillerv. small distillerv. rectifier or out-of-state spirits manufacturer
license issued in this State or another state.
9. Fulfillment provider; reeistration. A du'ect shiriper may use a fulfillment provider
that is registered under this subsection.
A. A fulfillment provider that is not a common carrier and that does not hold a direct
shipper, manufacturer or retail license issued^v the^b^^^
controlled by a common carrier, direct shipper, manufacturer or retail licensee may
register with the bureau in a manner prescribed by the bureau. A registration must
include the information required in paraeraoh B and a reeistration fee of not more than
$50 per physical premises. A fulfilhnent provider reeisterine pursuant to this
subsection shall register with the bureau for each physical nremjs^^^^
fulfillment provider will ship spirits under this section. A fulfilhnent provider may only
ship spirits to a recipient in the State if the fulfilhnent provider maintams a current
registration, as applicable, under this subsection and only if the spirits shipped are
provided by a direct shipper licensed under this section.
B. A fulfilhnent provider registration must include the followine:
d) The address of each premises from which the fulfillment provider will ship
spirits to recipients in the State;
(2) The name, address and license number of each direct shipper on whose behalf
the fulfillment provider will ship spirits to recipients in the State; and
f3~) Any other information as determined by the bureau.
C. A fulfillment provider reeistration must be renewed every 2 years. If there is a
material change in the information provided to the bureau related to the initial
registration or renewal, the fulfillment provider shall provide updated infonnation to
the bureau not later than 14 days after the change.
D. A fulfillment provider shall make all commercially reasonable efforts to verify the
validity of each direct shipper license prior to making any shipments under this section.
Continuous failure to verify the validity of licenses may result in the suspension of the
fulfillment provider's registration and imposition of a fine.
10. Direct shipper spirits pricing. Spirits shipped under this section must be sold at
5 the retail price determmed by the commission pursuant to section 1651. subsection 1.
6 Smrits ^ outside the State under
subsection 6. paraeraph C must be sold at a price equivalent to the retail price for spirits
8 sold to the State with a supplier price as reported by the direct shipper to the bureau under
subsection 13. If the du-ect shipper modifiesjhe^^^ from the price reported to
the bureau under subsection 13. the direct shipper shall notify the bureau prior to
implementing the modified price.
11. Sales tax reeistration and payment required. A direct shipper shall comply
with the orovisions of Title 36. Part 3. includine all reauirementsj-elatmg torefiistration as
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "^ " to S.P. 682, L.D. \695^[j2ia U ^
a seller and the collection, reporting andremittanceL of the sales and use taxes of the State.
and a direct shipper located outside the State shall agree to be subject to the iurisdiction of
the State for purposes of the enforcement of those obljfiatiQns. The requirements of this
subsection aBply notwithstanding any provision of law of the State to the contrary.
12. Payment to bureau. A direct shipper shalLpav quarterly to the bureau amounts
as follows.
A. A direct shipper within the State under subsection 6. paragraph B shall pay to the
bureau the difference between the direct shipper's price charged to the bureau for that
spirits product and the amount equal to the retail price for that spirits product myltiplied
by the direct shiocer discount rate,
B. A direct shipper outside the State under subsection 6. paragraph C shall pay to the
bureau the difference between the direct shipper's supplier price for that spirits product
as reported to the bureau under subsectionJLLandtheamount eaual to the retail price
as determined under subsection 10 for that spirits product multiplied by the direct
shipper discount rate.
13. Reportine. Reports to the bureau regarding direct shipments of spu-its are
governed by this subsection.
A. A direct shipper shall submit a report to the bureau quarterly in a manner and form
prescribed by the bureau that includes the following:
fl) The total number of case equivalents per sBmtsproduct shipped to recipients
m the State and, for a direct shipper located in the State, shipments made outside
the State:
f2) For a direct shipper located outside the State. the supplier priceL and the
calculated retail price under subsection 10 for each smnts product shipped to
recipients in the State;
('31 The name and residence address of shipment recipients in the State;
("4) The name and registration of the designated fulfillment urQviders, if applicable;
(5} The common carrier used to deliver each shipment: and
(6) The date. quantity and purchase price of each shipment.
0 B. A fulfilhnent provider shall submit a report to the bureau quarterly in a manner and
form prescribed by the bureau that includes the following:
(1} The name as it appears on the direct shipper license, physical address and
license number of the direct shipper on whose behalf the fulfilhnentDrovider
shipped spirits under this section;
f2) The date of each shipment;
(3) The name and business address of the common carrier that transported the
7 shipment and the unique tracking number for each shipment:
8 W The weight of each uackaee shipped; and
(5) The name and residence address of each recipient.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " U- " to S.P. 682, L.D. 1695 (
C, A c^ the bureau quarterly in a manner and
form prescribed by the bureau that includes the following:
d) The name of the common carrier;
(2) The name and address of the direct shipper and. if applicable, the fulfillment
provider that used the common carrier for a shipment of spiritsi
(3) The name and address of each recipient;
f4) The weight of each package delivered to each recipient;
(5) The unique tracking number for each shipment; and
f6) The date of delivery.
Afailure by a common carrier to comply with the reporting requirements of this
paragraph that continues for more than 3 0 days after receivine from the bureau a notice
of that failure may result in the suspension of the common carrier's license to operate
in the State or the imposition of any other penalty the relevant^ licensmg^authoritv m
the State is authorized to unpose .
D. If no spirits were shipped to a recipient in this State and. for a direct shipper located
in the State, no spirits were shipped to a recipient outside the State durme the reporting
period, a report indicatmg such must be submitted to the bureau.
14. Audit and records retention. The bureau may perform an audit of a direct
shipper's, fulfllhnent provider's or common carrier's records relevant to compliance with
this section. A direct shipper, fulfillment provider or common carrier shall provide copies
of any records requested by the bureau within 20 business days of that request.
A. A direct shipper shall maintain the books, records and documents supportine a
report submitted under subsection 13. oaraeraoh A or D for 2 years after the reporting
date, unless otherwise directed by the bureau.
B. A fulfillment provider shall maintain the books, records and documentssupBorting
a report submitted under subsection 13. paragraph B or D for 2 years after the reporting
date. unless otherwise d^^^^
C. A common carrier shall maintain the books, records and documents suouorting a
report submitted under subsection 13. paragraph C or D. including an electronic or
paper copy of each recipient's sienature. for 2 years after the reoorting date. unless
otherwise directed by the bureau.
15. Violation. A person. includmg a common carrier or fulfilhnent provider, that
knowingly causes^ a direct shjmnentm violation of this section is subject to a fine of up to
$500 for a first offense and up to $1,000 for any subsequent violation of this section.A
5 direct shipper, fulfilhnent orovider or common carrier who knowinelv delivers spirits to a
person who has not attained 21 years ofaee is subject to a fme of up to $5.000. The bureau
may suspend or revoke a spirits direct shipper license under subsection 2 for failure to
8 comply with the shippine limits and reportme requirements required by this section. The
9 bureau may accept payment of an offer in compromise in lieu of suspension; such payments
mustb^ determined by mles adopted by the bureau.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " // " to S.P. 682, L.D. 1695
^
16. Jurisdiction. A direct shipper, as a condition of licensure. is subject to the
jurisdiction and enforcement authority of the State for the purposes of enforcement of this
section.
17. Beverage container law. Spirits shipped pursuant to this section are subject to
the provisions of Title 3 8. chapter 3 3 .
18. Rules, The bureau shall adopt mles to carry out the purposes of this section. Rules
adopted pursuant to this subsection are routine technical mles as defined in Title 5, chapter
375.subchapter2-A.
Sec. 2. Effective date. This Act takes effect July 1,2026.'
Amend the bill by relettering or renumbermg any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which replaces the bill, allows distilleries, small distilleries and
rectifiers within and outside the State and out-of-state spirits manufacturers to ship their
spirits to recipients in the State in a manner similar to that presently allowed for wineries
to ship their wine products. The amendment authorizes a direct shipper of spirits to use a
fulfillment provider for the direct shipment of spirits. The amendment provides that
fulfillment providers must be registered with the Department of Administrative and
Financial Services, Bureau of Alcoholic Beverages and Lottery Operations in order to ship
spirits on behalf of a direct shipper to recipients in this State. The amendment establishes
reporting and record retention requirements for direct shippers, fulfilhnent providers and
common carriers. The amendment establishes shipment restrictions and limitations for both
in-state and out-of-state direct shippers of spirits and procedures for establishing spirits
pricing and for payments to the bureau for spirits shipped directly to recipients in the State,
rather than going through the State's warehouse. The amendment also establishes an
effective date of July 1,2026.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 04/02/24 ^^rct
LD 1695 LR 785(02)
An Act to Provide for the Direct Shipment of Spirits to Consumers
Fiscal Note for Bill as Amended by Committee Amendment '^( S"l^W]
Committee: Veterans and Legal Affairs
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund $0 $0 $108,507 $204,430
Appropriations/AlloGations
General Fund $0 $0 $108,507 $204,430
Correctional and Judicial Impact Statements
The additional workload associated with the minimal number of new cases filed in the court system does not require
additional funding at this time. The collection of additional fines will increase General Fund or other dedicated
revenue by minor amounts.
Fiscal Detail and Notes
Allowing direct shipment of spirits to consumers is expected to shift some spirits sales away fi-om in-store purchases
to purchases from direct shippers. Because direct shippers with gross sales from delivery into the State at or below
$100,000 per year will not be required to collect sales tax, there may be a decrease in sales tax revenue beginning in
fiscal year 2026-27. This is expected to be offset by additional licensing and registration fees.
The Bureau of Alcohol Beverages and Lottery Operations has indicated that the.additional administrative
requirements for allowing direct shipments of spirits to customers will require additional staff and resources to
implement. Beginning in January of 2026 additional General Fund appropriations of $108,507 will be needed for one
Liquor Tax Auditor position, one Liquor License Inspector position and associated position costs.
LR0785(02) - Fiscal Note - Page 1 of 1