Sec. 3. 28-A MRSA §453-A, sub-§§1 and 1-A, as amended by PL 1997, c. 373, §47, are repealed.

Sec. 4. 28-A MRSA §453-A, sub-§2, as amended by PL 1997, c. 373, §47, is further amended to read:

2. Public notice. The bureau shall, in accordance with the Maine Administrative Procedure Act, give public notice that an agency liquor store may be established in a particular municipality or unincorporated place. The bureau shall summarize in the public notice the bidding requirements for the agency store license, including the minimum bid required. The bureau shall request all parties in the municipality or unincorporated place interested in bidding on a license to establish an agency liquor store there to submit bids and applications to the bureau.

Sec. 5. 28-A MRSA §453-A, sub-§5, as amended by PL 1997, c. 373, §47, is further amended to read:

5. Licensing decisions. The bureau shall conduct an investigation to determine the feasibility of the location and type of facility for the agency liquor store and shall issue the license to one or more of the applicants, taking into consideration the bid offered and any other factors the bureau considers appropriate. When considering the issuance of a license, the bureau shall consider the proximity of the proposed agency store to existing agency stores and the potential impact the location of the proposed agency store may have on an existing agency store.__The bureau may deny a license if the bureau determines the proposed agency store location is in too close proximity to an existing agency store.

Sec. 6. 28-A MRSA §453-C is enacted to read:

§453-C.__Reselling agents

1.__Agent licensed to resell spirits purchased from the commission.__An agent licensed to resell spirits and fortified wine purchased from the state to a retail licensee licensed for on-premises consumption must be licensed as a reselling agent.__ An agent is prohibited from reselling liquor to a retail licensee

licensed for on-premises consumption except for spirits and fortified wine purchased from the commission or a state liquor store.__A reselling agent may not resell fortified wine purchased from wholesalers licensed to sell beer and wine in the State.

2.__License fee.__The fee for a state license to resell spirits and fortified wine to a retail licensee licensed for on- premises consumption is $50 annually.

Sec. 7. 28-A MRSA §606, sub-§8, as amended by PL 1997, c. 24, Pt. L, §4, is further amended to read:

8. Limits on price. An agency liquor store may not sell spirits and fortified wine for less than 103% of the price paid by the agency liquor store. An agency liquor store may not sell spirits to persons other than on-premises licensees for more than the list price set in accordance with chapters 65 and 67. An agency liquor store shall sell all spirits and fortified wine purchased from the commission at the retail price established by the commission.

Sec. 8. Bureau of Alcoholic Beverages and Lottery Operations to continue to operate 19 state liquor stores. Notwithstanding Public Law 2001, chapter 358, Part V, the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations shall continue to operate all state liquor stores open as of January 1, 2002.

Sec. 9. Bureau of Alcoholic Beverages and Lottery Operations; report. The Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations shall report each year by March 1st to the joint standing committee of the Legislature having jurisdiction over alcoholic beverages matters on the operation of the 19 state liquor stores and the statewide spirits distribution system. This report must include: an assessment of the State's spirits distribution system success in supplying spirits to agency liquor stores, the feasibility of expanding warehouse operations to offer split cases to agents and the profitability of the 19 state liquor stores.

SUMMARY

This bill makes several changes to the liquor laws based on the recommendations of the Commission to Develop a Plan to Implement the Closure of State Liquor Stores. This bill requires the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations to continue to operate the remaining 19 state liquor stores. It repeals the 3.5-mile radius requirement when a state liquor store is replaced

with an agency store. It requires an agent permitted to resell spirits and fortified wine purchased from the State Liquor Commission to a retail licensee licensed for on-premises consumption to obtain a state reselling agent license for an annual fee of $50. The bill also requires the Bureau of Alcoholic Beverages and Lottery Operations to report annually to the joint standing committee of the Legislature having jurisdiction over alcoholic beverages matters.