Printed on recycled paper 132nd MAINE LEGISLATURE FIRST SPECIAL SESSION-2025 Legislative Document No. 1456S.P. 597 In Senate, April 3, 2025 An Act to Expand the Number of On-premises Retail Liquor Licenses a Liquor Manufacturer May Be Issued Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. DAREK M. GRANT Secretary of the Senate Presented by President DAUGHTRY of Cumberland. Cosponsored by Senator: TIMBERLAKE of Androscoggin, Representatives: MALON of Biddeford, RIELLY of Westbrook, SHAGOURY of Hallowell. Page 1 - 132LR1397(01) 1 2 3 further amended to read: 4 5 small breweries, tenant breweries, wineries, small wineries, tenant wineries, distilleries, 6 small distilleries, bottlers and rectifiers in the State that operate under federal law and 7 federal supervision. 8 as enacted by PL 2021, c. 658, §226, is 9 amended to read: 10 11 premises of a brewery, small brewery, tenant brewery, winery, small winery, tenant winery, 12 distillery or small distillery licensed under this section where liquor products are produced. 13 14 further amended to read: 15 16 apply to brewery, small brewery, tenant brewery, winery, small winery, tenant winery, 17 distillery and small distillery licensees. 18 A. A licensee governed by this subsection may permit sampling of a liquor product 19 produced by that licensee on the premises where the liquor product is produced: 20 (1) By employees for the purpose of quality control of the product; and 21 (2) By wholesalers for the purpose of determining whether to carry the product as 22 a wholesale product if the licensee pays the excise tax on the product sampled 23 according to section 1652. 24 B. A licensee governed by this subsection may serve to the public samples of liquor 25 produced by the licensee at the manufacturing facility where that liquor is produced by 26 the licensee under the conditions specified in this paragraph. 27 (1) The licensee may sell samples to the public or offer samples to the public at 28 no cost. 29 (2) The licensee shall pay the excise tax, if any, according to section 1652 on all 30 samples served to the public under this paragraph. If a sample is sold by the 31 licensee, it is also subject to the sales tax on liquor under Title 36, section 1811. 32 (3) The licensee shall maintain a record of all samples the licensee sells under this 33 paragraph and shall maintain those records for a period of 2 years. 34 (4) The licensee may serve samples to the public under this paragraph only during 35 the hours of legal sale set forth in section 4. 36 (5) The area of the licensed premises where the licensee serves samples to the 37 public under this paragraph is not required to be separate from and may be accessed 38 by the same entrance as the area licensed for on-premises consumption of liquor 39 under chapter 43 in accordance with paragraph I. 40 (6) Spirits samples served to the public under this paragraph by a distillery must 41 first be sold to the State, subject to the listing, pricing and distribution provisions Page 2 - 132LR1397(01) 42 of this Title. Spirits samples served to the public under this paragraph by a small 43 distillery are subject to the requirements of subsection 5, paragraph H. 3 (7) The licensee may not serve samples to minors or visibly intoxicated persons. 4 D. A licensee governed by this subsection may sell for off-premises consumption 5 liquor produced by the licensee from the manufacturing facility where liquor is 6 produced by the licensee under the conditions specified in this paragraph. 7 (1) Sales made in accordance with this paragraph do not require the licensee to 8 obtain an additional retail license under chapter 45. 9 (2) Liquor sold in accordance with this paragraph may not be consumed anywhere 10 on the licensed premises. 11 (3) The area of the licensed premises where the licensee opts to transact sales for 12 off-premises consumption is not required to be separate from and may be accessed 13 by the same entrance as the area licensed for on-premises consumption of liquor 14 under chapter 43 in accordance with paragraph I. 15 (4) Sales under this paragraph may be made only during the hours of legal sale as 16 provided in section 4. 17 (5) Spirits sold by a distillery must first be sold to the State, subject to the listing, 18 pricing and distribution provisions of this Title. Spirits sold by a small distillery 19 are subject to the requirements of subsection 5, paragraph G. 20 (6) Except as provided in subsection 3, paragraphs C and , sales may be made 21 only by the bottle, by the case or in bulk. 22 I. A licensee governed by this subsection may be issued one or more on-premises retail 23 license licenses under chapter 43 per licensed manufacturing facility under the 24 conditions specified in this paragraph. An on-premises retail license issued under 25 chapter 43 may be for retail activities located at the manufacturing facility or for retail 26 activities at another location if the same person or persons hold a majority ownership 27 interest in both the manufacturing licensee and the on-premises retail licensee licensed 28 under chapter 43. 29 (1-A) The on-premises retail license issued under chapter 43 may be for retail 30 activities located at the manufacturing facility or for retail activities at another 31 location if the same person or persons hold a majority ownership interest in both 32 the manufacturing facility and the premises If a person or persons hold a majority 33 ownership interest in one manufacturing licensee, the person or persons may hold 34 no less than a majority ownership interest in up to 3 retail licensees licensed under 35 chapter 43. If a person or persons hold a majority ownership interest in at least 2 36 manufacturing licensees that, collectively, manufacture at least 1,000 barrels of 37 liquor per year, the person or persons may hold no less than a majority ownership 38 interest in up to 6 on-premises retail licensees licensed under chapter 43. A person 39 or persons with a majority ownership interest in one or more manufacturing 40 licensees may not hold an ownership interest in more than 6 on-premises retail 41 licensees licensed under chapter 43. 1 2 Page 3 - 132LR1397(01) 1 (2) The A retail license issued under chapter 43 authorizes the sale for on-premises 2 consumption of products produced at the manufacturing facility as well as other 3 liquor permitted to be sold under the applicable class of the retail license. 4 (2-A) Liquor sold under a retail license issued under chapter 43 on the premises 5 of the manufacturing facility may not be consumed on any part of the premises 6 where patrons are not generally permitted. 7 (3) All records related to activities under the authority of the manufacturing 8 facility's license issued under this section must be kept separate from records 9 related to activities under the authority of the a retail license issued under chapter 10 43. Income from the sale of liquor under subparagraph (4-A) or under paragraph 11 B or D by a manufacturing facility that is located on the same premises as the a 12 retail license issued under chapter 43 is not included in calculating whether that 13 retail licensee satisfies any applicable income from the sale of food requirement 14 set forth in chapter 43. 15 (4) Spirits sold under the authority of the a retail license issued under chapter 43 16 to the holder of a distillery license must first be sold to the State, subject to the 17 listing, pricing and distribution provisions of this Title. Spirits sold under the 18 authority of the a retail license issued under chapter 43 to the holder of a small 19 distillery license are subject to the requirements of subsection 5, paragraph H. 20 (4-A) A person issued a retail license under chapter 43 for premises other than the 21 licensed manufacturing facility may sell liquor for off-premises consumption under 22 the conditions stated in paragraph D. 23 (5) The licensee shall ensure that products purchased for off-premises 24 consumption under paragraph D are not consumed on the premises of the 25 manufacturing facility or the a retail license issued under chapter 43, if that retail 26 license authorizes retail activities at another location. 27 J. A licensee governed by this subsection may display up to 25 bottles of liquor 28 produced by the licensee in a window of a location where the licensee is authorized by 29 this section to sell its products for on-premises consumption or for off-premises 30 consumption. 31 K. A licensee governed by this subsection may transport liquor produced at the 32 licensed manufacturing facility in bulk or packaged in kegs, bottles or cans, including 33 by the case, to: 34 (1) Another manufacturing facility licensed under this section if the same person 35 or persons hold a majority ownership interest in both of the licensed manufacturing 36 facilities; and 37 (2) An establishment licensed for retail sales operated by the licensee under 38 paragraph I; subsection 4, paragraph B, subparagraph (2); or subsection 5, 39 paragraph B, subparagraph (3) as long as the same person or persons hold a 40 majority ownership interest in both the licensed manufacturing facility and the 41 licensed retail establishment. 42 43 and affected by §29 and amended by c. 673, §22 and affected by §28, is further amended 44 by amending subparagraph (2) to read: Page 4 - 132LR1397(01) 1 (2) Eight percent on the value of liquor sold in licensed establishments as defined 2 in Title section 2, subsection 15, in accordance with Title chapter 43 3 and liquor sold for on-premises consumption by a licensed brewery, small brewery, 4 tenant brewery, winery, small winery, tenant winery, distillery or small distillery 5 pursuant to Title 28‑A, section 1355‑A, subsection 2, paragraph B; 6 7 This bill expands from one to 3 the number of on-premises retail liquor licensees a 8 person or persons who hold a majority ownership interest in a manufacturing licensee may 9 hold no less than a majority ownership interest in. The on-premises retail locations may be 10 at the manufacturing facility or other locations. If a person or persons hold a majority 11 ownership interest in 2 or more manufacturing licensees that collectively manufacture at 12 least 1,000 barrels per year, the person or persons may hold no less than a majority 13 ownership interest in up to 6 on-premises retail licensees. The bill limits a person or 14 persons who hold a majority ownership interest in one or more manufacturing licensees to 15 holding an ownership interest in no more than 6 on-premises retail licensees. The bill also 16 adds tenant breweries and tenant wineries to the provision of law requiring on-premises 17 liquor sales to be charged sales tax at the rate of 8%. 7 8 9 10 11 12 13 14 15 16 17