Clarify Certificate of Approval Requirements under the State's Liquor Laws

Last updated: Feb 2, 2020

Details about this bill
Category: Alcohol / Tobacco / Guns
Status: In Committee
Sponsor: Senator Louis Luchini, Senate 7 - Hancock County
Session: 129
Bill #: LD 2089

Position:

Monitoring.

Summary:

This bill resolves an inconsistency in the State's liquor laws by clarifying that an out-of-state spirits supplier must obtain a certificate of approval from the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations before it may transport spirits into the State for sale to the bureau or cause spirits to be transported into the State for sale to the bureau. The out-of-state spirits suppliers who must obtain a certificate of approval under the bill include both out-of-state spirits manufacturers and persons who engage in the out-of-state purchase of spirits for resale to the bureau.

The bill also clarifies which of the existing laws applicable to certificate of approval holders apply to out-of-state spirits suppliers, who are included in the definition of "certificate of approval holder" under the bill. For example, the bill exempts out-of-state spirits suppliers from the statutory requirement that certificate of approval holders enter into a distribution contract with a wholesaler who is licensed to sell malt liquor or wine within the State. These contracts are unnecessary because, under existing law, all spirits products must be sold to the bureau, which contracts with the entity that provides warehousing and distribution services for spirits products within the State.