Sec. LLL-1. 28-A MRSA §83, sub-§§1 and 2, as amended by PL 1999, c. 535, §4, are further amended to read:
1. Bureau of Alcoholic Beverages and Lottery Operations; rules. The Until the effective date of the privatization of the entire wholesale liquor business authorized by section 88, the alcohol bureau shall manage the sale, distribution and merchandising of spirits and fortified wine through state liquor stores, agency liquor stores and licensees. The alcohol bureau may establish rules and procedures for the administration of the state liquor laws under its jurisdiction. The rules adopted under this section are routine technical rules pursuant to Title 5, chapter 375, subchapter II-A 2-A. The day-to-day activities of the alcohol bureau are under the supervision of the Commissioner of Administrative and Financial Services and the director of the alcohol bureau.
2. Purchase. The Until the effective date of the privatization of the wholesale liquor business authorized by section 88, the alcohol bureau may buy and have in its possession spirits and fortified wine for sale to the public. The alcohol bureau shall buy spirits directly and not through the State Purchasing Agent. All spirits and fortified wine must be free from adulteration and misbranding.
Sec. LLL-2. 28-A MRSA §88 is enacted to read:
§88. Transfer of wholesale liquor activities
1. Statement of purpose. The Legislature finds that it is in the public interest to seek efficiencies and cost savings from privatizing the State's wholesale liquor business. Privatization may include the grant of one or more exclusive service territories in which a private sector entity has the exclusive right to distribute certain spirits subject to price regulation by the alcohol bureau.
2. Authority. The Commissioner of Administrative and Financial Services may enter into a contract for the sale, franchise, license or lease of and may sell, franchise, license or lease the State's wholesale liquor activities associated with distributing and selling spirits and fortified wines sold by the State on January 1, 2003. The buyer, franchisee, licensee or lessee may sell and distribute to licensed agency liquor stores all spirits and fortified wines sold by the State on January 1, 2003.
3. Member of legislative committee of jurisdiction to participate. A member of the joint standing committee of the Legislature having jurisdiction over alcoholic beverages matters appointed by the committee's chairs must be included in meetings held by the Commissioner of Administrative and Financial Services regarding developing a request for proposal to transfer the wholesale liquor business, reviewing bids received and awarding the contract.
4. Bidding procedures. The Commissioner of Administrative and Financial Services shall adopt rules to effect the transfer of the State's wholesale liquor business to a private entity. The rules must include:
A. A finding by the Commissioner of Administrative and Financial Services setting forth the method of transfer that promotes the Legislature's intent in enacting this section;
B. Procedures designed to encourage vigorous bidding for the State's wholesale liquor business;
C. Criteria for eligibility for service as a wholesale liquor provider. For purposes of this section, "wholesale liquor provider" means an entity or entities contracted by the State as an agent of the State for the purpose of providing wholesale spirits and fortified wine to establishments licensed by the State to sell spirits and fortified wine for off-premises consumption;
D. Criteria for eligibility as a wholesale liquor provider, which must include a commitment to offer split cases of spirits and fortified wine to licensed agents and a commitment to provide timely delivery of spirits and fortified wine to all agents, particularly those located in geographically remote areas of the State;
E. A plan for the continued employment of state employees in the wholesale liquor business in the State for a period of 2 years from the date of privatization; and
F. Any rules that the Commissioner of Administrative and Financial Services determines are consistent with the Legislature's intent.
5. Price regulation. The alcohol bureau shall regulate the wholesale and retail prices of all liquor sold by private entities under this section. The alcohol bureau shall adopt rules for the effective implementation of price regulation of the wholesale and retail liquor business by January 1, 2004. A private entity awarded the exclusive right to distribute liquor pursuant to this section is immune from antitrust action so long as the entity is in compliance with the alcohol bureau's rules and all other applicable laws and regulations.
6. Limitation on conveyences of rights. The State may not convey or assign to private entities any rights in the distilled spirits business that extend beyond June 30, 2014. Any renewal of such rights is subject to approval of the Legislature. This section does not affect the State's continuing right to collect the alcohol premium tax, sales taxes or income taxes arising from the sale of distilled spirits and fortified wines.
7. Rules. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Sec. LLL-3. Effect of negotiation; legislation required. Upon the successful negotiation of a contract pursuant to the Maine Revised Statutes, Title 28-A, section 88, and notwithstanding any other provision of Title 28-A, the Commissioner of Administrative and Financial Services may adopt any emergency rules necessary to ensure the safety, health and welfare of the people of the State concerning activities associated with distributing and selling spirits and fortified wines. The commissioner shall prepare and submit legislation to the session of the Legislature during which the contract is successfully negotiated or, if the Legislature is not in session, to the next immediately following session, making the necessary changes to the Maine Revised Statutes to fully implement this Part.
Sec. LLL-4. Effective date. This Part takes effect 90 days after adjournment of the First Regular Session of the 121st Legislature.
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