On August 9, 2024, the new Public Law 2023, ch. 633 (L.D. 2069) from Maine’s Bureau of Alcoholic Beverages and Lottery Operations (BABLO) formally went into effect, bringing an end to the previous burdensome “entire ownership” disclosure requirement that disrupted the industry in 2023.
This legislation establishes new ownership disclosure requirement related to alcohol licensing in Maine. It amends Sec. 1. 28-A MRSA § 651 to require the disclosure of any person holding an ownership interest of 10% or more in the license or certificate holder in the state of Maine. Additionally, if a business meets this threshold of ownership in the licensee, that business must also disclose any individual or entity which holds 10% or more in said business; if no one meets this threshold, the license holder may submit an affidavit which attests that no individual or entity holds such ownership interest in the licensee or applicant.
The new legislation also requires in Sec. 2. 28-A MRSA § 651 that the licensee or applicant disclose any individual or entity holding indirect financial interest in the license holder, with “indirect financial interest” including (a) an option or right to acquire equity interest in the licensee or (b) a right to payment of or based upon all or any portion of revenues, profits, or losses from the operation of the licensee.
In connection with the implementation of these new disclosure requirements, BABLO has issued a new Supplemental Ownership Form for convenience of industry members to identify the information required from the necessary stakeholders. With many licenses operating on temporary extensions for the last year as BABLO updated these requirements, industry members are now working diligently to complete the necessary documents for renewal of their existing licenses.
McDermott’s alcohol team is ready to guide you through the new requirements. For questions or assistance with Maine’s disclosure requirements, please contact Alva Mather or the alcohol team.
