An Act to Increase the
Maine Legislature, Session 132, LD 1376
Committee Amendment CA_A_S207 (Senate)
Amends: 28-A MRSA §2, 28-A MRSA §13, 28-A MRSA §1355-A, 28-A MRSA §1652

COMMITTEE AMENDMENT'~ ,. to S.P. 570, L.D. 1376, "An Act to Increase the 
Acceptable Level of Alcohol in a Lowwalcohol Spirits Product and to Increase Availability 
of Those Products,. 
Amend the bill by striking out the title and substituting the following: 
'An Act to Increase the Availability ofReady~to-drink Beverages Containing Spirits' 
Amend the bill by stl'iking out eve1ything after the enacting clause and inse11ing the 
following: 
'Sec. 1. 28-A MRSA §2, sub-§31, as amended by PL 2019, c. 404, §2, is fu11her 
amended to read: 
31. Spirits. "Spirits" means any liquor pmduced by distillation or, if produced by any 
other process, strengthened or fortified by the addition of spil'its of any kind. "Spirits" does 
not include low-alcohol spidts products, a spirits cocktail product or fortified wine. 
Begitming ,h,tly 1, 2Q19, "spirits" "Spirits" does not mean an additive or flavoring, such as 
an extract 01· concentrate, that: 
A. Contains alcohol; 
B. Is not intended to be consumed alone as a beverage or a food product but serves as 
a flavor enhancement to a beverage or a food product; and 
C. Is not subject to excise tax under chapter 65. 
Sec. 2. 28-A MRSA §2, sub~§31-E is enacted to read: 
31-E. Spirits cocktail product. "Spirits cocktail product" means a product packaged 
as a single-serving ready-to-drink beverage containing spirits that contains more than 8% 
alcohol by volume but no more than 15% alcohol by volume. 
Sec. 3. 28-A MRSA §13, as repealed and replaced by PL 2021, c. 658, §49, is 
amended to read: 
§13, Low-afoobol spfrits products and spirits cocktail products sold by wine licensees 
Page I - l32LR1799(02) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to S.P. 570, L.D. 1376 { S/)67\ 
1. Retail sales. Notwithstanding any provision of this Title to the contrary, a person 
licensed to sell wine for on-premises or off-premises consumption may also sell low-
alcohol spirits products and spirits cocktail products, All provisions of this Title applicable 
to wine, except chapters 65 and 67, apply to low-alcohol spirits products and spirits cocktail 
products when sold by persons licensed to sell wine for on-premises or off-premises 
consumption. 
2. Wholesale sales. Notwithstanding any provision of this Title to the contrary, a 
person licensed under section 1401 as an in-state wholesaler of wine may also sell and 
distribute low-alcohol spirits products and spirits cocktail products. 
Sec. 4. 28-A MRSA §1355-A, sub-§5, ,rD, as amended by PL 2021, c, 658, §226, 
is further amended to read: 
D. Except for spirits cocktail products and as othe1wise provided in this section, spirits 
produced by a holder of a distillery or small distillery license must be sold to the State 
and are subject to the listing, pricing and distribution provisions of this Title. 
Sec. 5. 28-A MRSA §1355-A, sub"§5, ~-1, as amended by PL 2023, c. 34, §5,. 
is fmther amended to read: 
F-1. A distillery or small distillery may sell to the public for on-premises consumption 
cocktails containing samples of a spirits cocktail product and spil'its produced by the 
distillery or small distillery under the conditions specified in this paragraph. 
(1) A spirits cocktail product or a cocktail containing spirits may be sold only at 
the manufacturing facility where the a spil'its cocktail product and spirits are 
produced or at an additional location licensed under paragraph B, subparngraph 
(3). 
(2) The distille1y or small distille1y may include wine or spirits not manufactured 
by the distillel'y or small distille1y as an ingredient in the cocktail only if the 
distillery or small distillery purchased the wine or spirits from an agency liquor 
store licensed as a reselling agent. This subparagraph does not apply to spirits 
cocktail products. 
(3) A cocktail may not contain more than 4 1/2 ounces of spirits. 
Sec. 6. 28-A MRSA §1355-A, sub-§5, 1G, as amended by PL 2021, c. 658, §226, 
is further amended to 1·ead: 
G, Notwithstanding paragraph D, a holder of a small distille1y license that sells its 
f)r04aets spirits directly to consumers for off-premises consumption under paragraph 
B, subparagraph (3), subsection· 2, paragraph D 01· subsection 2, paragrnph I, 
subparagraph (4-A) may pay the bureau the difference between the distillery's pl'ice 
charged to the bureau and the discounted l'etail 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 wa1·ehouse 
operated by the bureau or by a wholesale spirits providet'. A holder of a small distille1y 
license shall record the quantity of spirits sold for off-premises consumption that were 
not transported to a wa1·ehouse as described in this paragraph and submit monthly 
repo1ts of this information, along with the full amount of state liquor tax due as 
COMMITTEE AMENDMENT 
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35. 
coMMITIEE AMENDMENT" A ",. s.,. 570, Lo. '"• Cs· d 61 J 
prescribed by chapter 65, to the bmeau in a manne1· prescribed by the bureau. This 
parag1·aph does not apply to spirits cocktail products. 
Sec. 7. 28-A MRSA §1355-A, sub-§5, ,rH, as amended by PL 2021, c. 658, §226, 
is fmther amended to read: 
H. Notwithstanding paragraph D, a holder of a small distillery license that sells its 
prnduots spirits or offers complimentary samples of its proauots spirits directly to 
consumers for on-premises consumption under paragrnph F-1 01· m1de1· subsection 2, 
paragraph B or I may pay the bureau the difference between the distillery's price 
charged to the bureau and the discounted 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 the wholesale spirits provider. A hol~er of a small 
distille1y license shall record the quantity of spirits sold for on-premises consumption 
that were not ti·ansported to a warehouse as described in this parngraph and submit 
monthly repo1ts of this information, along with the full amount of state liquo1· tax due 
as prescribed by chapter 65, to the bureau in a manner prescribed by the bureau. This 
paragraph does not apply to spirits cocktail products. 
Sec. 8. 28-AMRSA §1355-A, sub-§5, 1J, as enacted by PL 2021, c. 658, §226, 
is amended to read: 
J. A holder of a distillery or small distillery license may produce low-alcohol spirits 
products and spirits cocktail products. 
(1) If a small distillery license holder produces low-alcohol spirits pl'Oducts m: 
spirits cocktail products pursi~ant to this paragraph, the combined total of spirits.1 
spirits cocktail products and low-alcohol spirits products produced at the small 
distillety may not exceed 50,000 gallons per year. 
(2) The holder of a distille1y license 01· a small distille1y license that prnduces 
spirits cocktail products shall deliver spirits cocktail products to licensed retailers 
through a wholesale licensee in the same manner as a wine1y that produces and 
bottles more than S0.000 gallons of wine per year delivers wine to licensed retaile1·s 
as provided in section 1361, subsection 4. This subparagraph does not apply to 
spirits cocktail products sold at the disti1lezy licensee's manufactudng facilicy 01· at 
an off-premises location for which the distillery has a small distille1y license 
pursuant to paragraph B. 
Sec. 9. 28-A MRSA §1652, sub-§1-A, as amended by PL 2021, c. 8, §8, is furthet· 
amended to l'ead: 
1-A. Excise tax on Io:w-alcohol spirits products, spirits cocktail products and 
fortified wines. An excise tax is imposed on the privilege of manufacturing and selling 
low-alcohol spirits products, spirits cocktail pl'Oducts and fottified wines in the State. 
Except as prnvided in subsection 2-A, the in-state manufacturer or importing wholesale 
licensee shall pay an excise tax of $1.24 pet· gallon on all low-alcohol spirits products~ 
spirits cocktail products and fo1tified wines manufactured in or imported into the State. 
Sec, 10. 28-A MRSA §1652, sub-§2-A, as amended by PL 2021, c. 8, §10, is 
further amended to read: 
COMMITTEE AMENDMENT 
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COMMIITBB AMENDMENT "A "to S.P. 570, L.D, 1376 ($ ;;i0-;) 
2-A, Excise tax due; exemption, On the 15th day of each month, every distillery, 
brewe1y and winety shall pay the excise taxes due on malt liquor, wine, sprits cocktail 
products and low-alcohol spirits products that that brewe1y or wine1y removed from areas 
required to be bonded by the Federal Government. Malt liquor, wine, spirits cocktail 
pl'oducts or low-alcohol spirits products that a brewery or winery removes from areas 
required to be bonded by the Federal Government fo1· sale to an out~of~state wholesaler for 
resale in another state or for sale under section 13 57 directly to a consumer located in 
another state are exempt frpm excise tax under this section. 
Sec. 11, 28NA MRSA §1652, sub-§4, as amended by PL 2021, c. 658, §264, is 
further amended to read: 
4. Excise tax accounts and adjustments. The bureau shall open an excise tax account 
with each wholesale licensee and each certificate of approval holder and make the 
following adjustments when appropriate. As used in this subsection, "certificate of 
approval holde1·
means an in-state manufacturer of malt liquor, wine1 spirits cocktail 
products 01· low-alcohol spirits products licensed ·under section 1355-A 01· an out-of-state 
manufacturer of or out-of-state wholesaler of malt liquor, wine, spirits cocktail products or 
low-alcohol spirits products that has been issued a certificate of approval under section 
1361. 
A. The bureau may grant credits and make tax adjustments that it dete1·mines the 
wholesale licensee or ce1tificate of approval holder is entitled to upon the filing of 
affidavits in the form prescribed by the bureau. 
B. The bureau shall refund all excise tax paid by the wholesale licensee or certificate 
of approval holder on all ·malt liquor, wine, spirits cocktail products or low-alcohol 
spirits products that have been destroyed as long as the quantity and size are verified 
by the bureau and the destruction is witnessed by an authorized representative of the 
bureau. 
C. If a wholesale licensee's inventories are destroyed by fire, flood or other natural 
disaster, the bureau may refund the excise tax on the wholesale licensee's inventories. 
D. Any wholesale licensee selling malt liquor, wine, spirits cocktail products or low-
alcohol spirits products to an instmmentality, a licensee for resale to an airline, a 
training site or a ship chandler shall present proof of that sale to the bureau. The bureau 
shall grant to the wholesale licensee a credit of all state excise tax paid in connection 
with that sale under the following conditions. 
(1) The burnau shall grant a credit for the excise tax on malt liquor, wine, spirits 
cocktail pmducts or low-alcohol spirits products sold by wholesale licensees to any 
instrumentality of the United States or any Maine National Guard state training site 
exempted by the bureau. 
(2) The bureau shall grnnt a credit for the excise tax 011 malt.liquor, wine, spirits 
cocktail products or low-alcohol spirits products sold to any ship chandler as long 
as the malt liquor, wine, spirits cocktail products and low-alcohol spirits products 
are resold to vessels of foreign registiy for consumption after that vessel has left 
po1t or are resold for consumption on board vessels of United States registry that 
are destined for a foreign po1t. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" t" to S.P. 570, L,D. 1376 ( S JG\~ 
(3) The bureau shall grant a credit for the excise tax on malt liquor, wine, spit-its 
cocktail products and low-alcohol spirits products sold to a licensee registered with 
the bureau for resale to licensed airlines or to unlicensed airlines for their 
international flights.' 
Amend the bill by relettel'ing or renumbering any nonconsecutive Part letter or section 
number to read consecutively, 
SUMMARY 
This amendment, which is the minority report of the committee, replaces the bill and 
changes the title. The amendment defines "spirits cocktail product
to mean a product 
packaged as a single-serving ready-to-drink beverage containing spirits that contains mo1·e 
than 8% alcohol by volume but no mOl'e than 15% alcohol by volume. Under the 
ame11dme~1t, a licensed distillery or small distille1y is authorized to distill, rectify or blend 
spirits cocktail products. Except for spirits cocktail products sold at the manufacturing 
facility or at an off-premises location licensed to the distille1y, delivery of spirits cocktail 
products to licensed retailers must be made by a wholesale licensee in the same manner as 
wine. The excise tax on spirits cocktail products under the amendment is $1.24 per gallon 
and is paid by the manufacturer or the wholesale licensee. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/27/25 L,.RL,. 
LD 1376 
LR 1799(02) 
An Act to Increase the Acceptable Level of Alcohol in a Low-alcohol Spirits Pl'oduct and to Increase 
Availability of Those Products 
Net Cost (Savings) 
General Fund 
Highway Fund 
Revenue 
General Fund 
Transfers 
Highway Fund 
Fiscal Detail and Notes 
Fiscal Note for Bill. as Amended by Committee Amendment•~ (s,,Jb) \ 
Committee: Veterans and Legal Affairs 
P 
') 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
($30,541) 
$340,133 
$30,541 
($340,133) 
FY2026-27 
($47,644) 
$530,608 
$47,644 
($530,608) 
Projections 
FY 2027-28 
($57,938) 
$689,790 
$57,938 
($689,790) 
Projections 
FY 2028-29 
($80,519) 
$896,727 
$80,519 
($896,727) 
This bill establishes a new definition for a spirits-based cocktail that includes single-serving, ready-to-drink beverages, 
and aµthorizes certain licensees to distribute these products directly. Under current law, these products are classified 
as low-alcohol spirits and distributed through the state liquor contract managed by the Bureau of Alcoholic Beverages 
and Lottery Operations (BABLO). BABLO has indicated that under the new definition, these products would be 
excluded from the liquor contract which would result in reduced state profit margins from liquor sales. Because these 
profits are transfe11·ed to the Highway Fund, the change is projected to reduce Highway Fund transfers by $340,133 
beginning in fiscal year 2025~26. 
The bill also changes the applicable taxes collected for these products. Instead of being subject to the premium spirits 
tax of $1.25 per proof gallon, they will be taxed at an excise tax rate of $1.24 per gallon. This shift is expected to 
result in a net increase in General Fund revenue: a reduction of $6,758 in premium tax collections and an increase of 
$37,300 in excise tax revenue, beginning in fiscal year 2025-26. 
These estimates assume that the new product definition applies to spirits-based cocktails packaged in containers of 
milliliters or less. They also assume that this product category will continue to grow at approximately 30 percent 
annually, based on current in-state sales trends and growth projections reflected in the existing liquor contract. 
LR1799(02) - Fiscal Note - Page 1 of 1