Sec. 1. 28-A MRSA §2, sub-§29-A is enacted to read:

29-A.__Small distillery.__"Small distillery" means a manufacturer that produces distilled spirits in an amount that does not exceed 30,000 gallons per year.

Sec. 2. 28-A MRSA §1355, sub-§§8 and 9 are enacted to read:

8.__Small distilleries.__The following conditions apply to licenses issued to small distilleries.

A.__A holder of a small distillery license may produce distilled spirits in an amount not to exceed 30,000 gallons per year.

B.__Notwithstanding section 707, subsection 3, a holder of a small distillery license may also hold a Maine retail license.

C.__A holder of a small distillery license may sell, for on- premises consumption, liquor produced at the distillery.

(1)__All on-premises sales by a small distillery must be recorded by affidavit filed with the Department of Public Safety.

(2)__The form of the affidavit must be developed and approved by the Department of Public Safety.

(3)__Affidavits must include the volume of spirits sold on premises and at connected establishments, the type of spirits sold and any other information determined necessary by the alcohol bureau to maintain the State's status as a so-called "control state."

(4)__Affidavits must be made immediately available for periodic review without notice by the state officials.

D.__A holder of a small distillery license may apply for up to 5 licenses for the sale of liquor to be consumed on the premises at a connected establishment.

(1)__The retail license must be held exclusively by the holder of the distillery license.

(2)__The retail license authorizes the sale of products of the distillery, in addition to other liquor