2012 Maine Revised Statutes
TITLE 28-A: LIQUORS (HEADING: PL 1987, c. 45, Pt. A, @4 (new))
Chapter 3-A: ADMINISTRATION AND ORGANIZATION
28-A §89. Renewal of contracts for wholesale liquor activities

Part 1: GENERAL PROVISIONS

§89. Renewal of contracts for wholesale liquor activities

1. Minimum requirements. The Commissioner of Administrative and Financial Services shall enter into a competitive bidding or bargaining process to renew, replace or continue any contract awarded pursuant to section 88 for the sale, franchise, license or lease of the State's wholesale liquor activities associated with distributing and selling spirits and fortified wines sold by the State and shall award the contract at least one year before the end of the contract that is scheduled to end on June 30, 2014 and no later than June 20, 2013. The joint standing committee of the Legislature having jurisdiction over veterans and legal affairs and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs must have an opportunity to review the contract prior to its execution. A contract awarded under this subsection may not extend for more than 10 years and must require the following payments:

A. A minimum initial payment of $20,000,000 by the entity awarded the contract, or by its financier, due at the time of the award of the contract; [2011, c. 380, Pt. S, §1 (NEW).]

B. Ten guaranteed fixed annual payments over the life of the contract that equal the balance of the contract value after the payment made pursuant to paragraph A, to be paid in equal payments, as adjusted by any applicable inflation factor, due at the beginning of each state fiscal year for which the contract is in effect; and [2011, c. 380, Pt. S, §1 (NEW).]

C. Ten annual payments, due one month after the end of each state fiscal year, that represent the contractually negotiated percentage of the profits of the previous calendar year that is due to the State. [2011, c. 380, Pt. S, §1 (NEW).]

[ 2011, c. 380, Pt. S, §1 (NEW) .]

2. Allocation of contract payments. The payments required pursuant to subsection 1 must be allocated in accordance with this subsection.

A. The payments under subsection 1, paragraphs A and C accrue to the General Fund. [2011, c. 380, Pt. S, §1 (NEW).]

B. The guaranteed fixed annual payments under subsection 1, paragraph B must be distributed as follows:

(1) An amount equal to 15% of the payment or the maximum amount allowed for federal matching purposes, whichever is less, must be deposited in the Department of Health and Human Services, Drinking Water Enforcement program, Other Special Revenue Funds account for the revolving loan fund for drinking water systems; and in the Department of Environmental Protection, Land and Water Quality program, Other Special Revenue Funds account for the revolving loan fund for wastewater treatment facilities;

(2) An amount equal to 20% of the payment must be deposited in the Department of Transportation, Highway and Bridge Capital program, Other Special Revenue Funds account to be used for highway preservation and rehabilitation projects;

(3) An amount equal to 35% of the payment must be deposited to the General Fund; and

(4) An amount equal to 30% of the payment, plus any amounts remaining from the distribution pursuant to subparagraph (1), must be deposited to the Maine Budget Stabilization Fund. [2011, c. 380, Pt. S, §1 (NEW).]

[ 2011, c. 380, Pt. S, §1 (NEW) .]

SECTION HISTORY

2011, c. 380, Pt. S, §1 (NEW).