§707. Licensee not to be indebted, obligated or involved
(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)
1.
Licensee not indebted.
Except as provided in subsection 7, the bureau may not issue any license to or renew the license of a person who is indebted in any manner, directly or indirectly:
A.
To any other person for liquor;
[PL 1987, c. 45, Pt. A, §4 (NEW).]
B.
To the State for any tax, other than property tax, assessed and considered final under Title 36 that the State Tax Assessor certifies, in accordance with Title 36, section 172, as remaining unpaid in an amount exceeding $1,000 for a period greater than 15 days after the applicant or licensee has received notice of the finality of that tax; or
[PL 2019, c. 659, Pt. F, §1 (AMD).]
C.
For any contributions assessed and considered final under Title 26, section 1225, when the Director of Unemployment Compensation certifies that the amount remains unpaid for a period greater than 60 days, after the applicant or licensee has received notice of the finality of that tax.
[PL 1987, c. 45, Pt. A, §4 (NEW).]
[PL 2019, c. 659, Pt. F, §1 (AMD); PL 2019, c. 665, §1 (AMD).]
2.
(TEXT EFFECTIVE UNTIL 1/01/26) Licensee must not receive anything of value.
No licensee or applicant for a license may receive, directly or indirectly, any money, credit, thing of value, indorsement of commercial paper, guarantee of credit or financial assistance of any sort from any person within or without the State, if the person is:
A.
Engaged, directly or indirectly, in the manufacture, distribution, wholesale sale, storage or transportation of liquor; or
[PL 1987, c. 342, §40 (AMD).]
B.
Engaged in the manufacture, distribution, sale or transportation of any commodity, equipment, material or advertisement used in connection with the manufacture, distribution, wholesale sale, storage or transportation of liquor.
[PL 1987, c. 342, §40 (AMD).]
Nothing in this subsection prevents an affiliate of a licensee from receiving money for sponsorship of a transportation system for transporting the public or for sponsorship of specific sporting events and cultural events as long as the licensee does not receive any payment or thing of value from the public transportation system or the sporting and cultural events and as long as such an affiliate does not derive any portions of its revenues from the licensee. All sponsorships must have prior written approval of the bureau. The bureau shall adopt rules implementing this paragraph.
[PL 1993, c. 730, §30 (AMD).]
2.
(TEXT EFFECTIVE 1/01/26) Licensee may not receive or give things of value.
A licensee or applicant for a license may not receive, directly or indirectly, from any person within or without the State, cash or gift cards, indorsement of commercial paper, guarantee of credit or financial assistance of any sort or things of value aggregating in an amount that exceeds $750 annually, if the person is:
A.
Engaged, directly or indirectly, in the manufacture, distribution, wholesale sale, storage or transportation of liquor; or
[PL 1987, c. 342, §40 (AMD).]
B.
Engaged in the manufacture, distribution, sale or transportation of any commodity, equipment, material or advertisement used in connection with the manufacture, distribution, wholesale sale, storage or transportation of liquor.
[PL 1987, c. 342, §40 (AMD).]
The bureau may not impose a limit on the amount of things of value that are in use by or in the possession of a licensee at any one time, as long as the things of value were given to a licensee within the annual limits established by this subsection.
A licensee may not give things of value with the intent to induce a retailer to purchase liquor from the licensee to the exclusion, in whole or in part, of liquor offered for sale by other persons.
This subsection does not prevent an affiliate of a licensee from receiving money for sponsorship of a transportation system for transporting the public or for sponsorship of specific sporting events and cultural events as long as the licensee does not receive any payment or thing of value from the public transportation system or the sporting and cultural events and as long as such an affiliate does not derive any portions of its revenues from the licensee. All sponsorships must have prior written approval of the bureau.
[PL 2025, c. 230, Pt. C, §1 (AMD); PL 2025, c. 230, Pt. C, §6 (AFF).]
3.
Retail licensee; interest in wholesaler or certificate of approval.
[PL 2019, c. 665, §2 (RP).]
3-A.
Manufacturer or importer; prohibited financial interests.
Except as authorized in subsection 7 and sections 707‑A and 1355‑A, a licensed in-state manufacturer, an out-of-state spirits supplier, an out-of-state manufacturer of malt liquor or wine that has been issued a certificate of approval or an out-of-state wholesaler of malt liquor or wine that has been issued a certificate of approval may not have any financial interest, direct or indirect, in any:
A.
Wholesale licensee; or
[PL 2019, c. 665, §3 (NEW).]
B.
Retail licensee.
[PL 2019, c. 665, §3 (NEW).]
[PL 2019, c. 665, §3 (NEW).]
4.
Certificate of approval holder or Maine manufacturer; interest in wholesaler or retail license.
[PL 2019, c. 665, §4 (RP).]
4-A.
Wholesale licensee; prohibited financial interests.
Except as authorized in subsection 7, a wholesale licensee may not have any financial interest, direct or indirect, in any:
A.
Licensed in-state manufacturer, out-of-state spirits supplier, out-of-state manufacturer of malt liquor or wine that has been issued a certificate of approval or out-of-state wholesaler of malt liquor or wine that has been issued a certificate of approval; or
[PL 2019, c. 665, §5 (NEW).]
B.
Retail licensee.
[PL 2019, c. 665, §5 (NEW).]
[PL 2019, c. 665, §5 (NEW).]
5.
Wholesale licensee; interest in certificate of approval holder, Maine manufacturer or retail license.
[PL 2019, c. 665, §6 (RP).]
5-A.
Retail licensee; prohibited financial interests.
Except as authorized in sections 707‑A and 1355‑A, a retail licensee may not have any financial interest, direct or indirect, in any:
A.
Licensed in-state manufacturer, out-of-state spirits supplier, out-of-state manufacturer of malt liquor or wine that has been issued a certificate of approval or out-of-state wholesaler of malt liquor or wine that has been issued a certificate of approval; or
[PL 2019, c. 665, §7 (NEW).]
B.
Wholesale licensee.
[PL 2019, c. 665, §7 (NEW).]
[PL 2019, c. 665, §7 (NEW).]
6.
Directors, officers, members and securities.
The financial interests prohibited in subsections 3‑A, 4‑A and 5‑A include, but are not limited to, circumstances in which an officer, director, member or holder of the securities of a business entity is also a director, officer, member or holder of the securities of another business entity, except that a minor investment in not more than 1% of the securities of a business entity does not constitute a financial interest prohibited by subsections 3‑A, 4‑A and 5‑A.
[PL 2019, c. 665, §8 (AMD).]
7.
Exceptions.
This section does not prohibit:
A.
A manufacturer or out-of-state wholesaler from extending the usual and customary credit to a wholesale licensee for the purchase of malt liquor or wine;
[PL 2021, c. 8, §1 (AMD).]
B.
A manufacturer or out-of-state wholesaler from furnishing materials and equipment for the use of a wholesale licensee or the wholesale licensee's employees, including:
(1)
Painting the wholesale licensee's vehicles;
(2)
Supplying legal advertising signs used by the wholesale licensee in the course of the wholesale licensee's business; and
(3)
Supplying uniforms for the employees of the wholesale licensee;
[PL 2025, c. 230, Pt. C, §2 (AMD).]
C.
A manufacturer licensed under section 1355‑A from selling and shipping its products to an individual in another state for personal use and not for resale, as long as the sale and shipment are authorized by and conducted in accordance with the requirements of the law of the state where the shipment is delivered;
[PL 2025, c. 230, Pt. C, §2 (AMD).]
D.
A manufacturer, distributor or out-of-state wholesaler from engaging in the bona fide sale of goods to a licensee or applicant for a license, if the amount paid for those goods by the licensee or applicant for a license is of fair market value; or
[PL 2025, c. 230, Pt. C, §2 (NEW).]
E.
A wholesale licensee or certificate of approval holder, including on behalf of a brand the wholesale licensee or certificate of approval holder supplies or manufactures, from entering into a written agreement under section 707‑B with an eligible licensee for:
[PL 2025, c. 230, Pt. C, §2 (AMD).]
(1)
The purchase of advertising space or time on or within the licensed premises, including, but not limited to, physical signage, digital media and naming rights to portions of the venue;
(2)
The sponsorship of events, event series or designated areas within the venue, including lounges, beverage stations and hospitality zones; and
(3)
The co-branding or cross-promotion of events in conjunction with the licensee, as long as co-branding or cross-promotion does not result in direct or indirect control over the operations of the licensee.
[PL 2025, c. 230, Pt. C, §2 (NEW).]
8.
Definitions.
For purposes of this section, the following terms have the following meanings.
A.
[PL 2021, c. 658, §97 (RP).]
B.
"Out-of-state spirits supplier" means an out-of-state spirits manufacturer that has been issued a certificate of approval under section 1381 or a person that engages in the out-of-state purchase of spirits for resale to the bureau that has been issued a certificate of approval under section 1381.
[PL 2021, c. 658, §98 (RPR).]
[PL 2021, c. 658, §§97, 98 (AMD).]
9.
Rules.
The bureau shall adopt rules implementing this section. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
[PL 2025, c. 230, Pt. C, §3 (NEW).]
SECTION HISTORY
PL 1987, c. 45, §A4 (NEW). PL 1987, c. 342, §§40-43 (AMD). PL 1993, c. 730, §30 (AMD). PL 1997, c. 373, §68 (AMD). PL 2005, c. 390, §§2,3 (AMD). PL 2011, c. 629, §§9, 10 (AMD). PL 2019, c. 659, Pt. F, §1 (AMD). PL 2019, c. 665, §§1-10 (AMD). PL 2021, c. 8, §1 (AMD). PL 2021, c. 658, §§97, 98 (AMD). PL 2025, c. 230, Pt. C, §§1-3 (AMD). PL 2025, c. 230, Pt. C, §6 (AFF).