Simplified Ownership Disclosure Requirements for Maine Liquor License Holders Go Live
Effective August 9, 2024, the Maine Bureau of Alcoholic Beverages and Lottery Operations (BABLO) has introduced new ownership disclosure requirements for liquor license holders. These updates are designed to simplify the reporting process while ensuring transparency in the ownership of licensed entities. If you hold a liquor license or are applying for one in Maine, here's what you need to know about the new rules.
Key Changes in Ownership Reporting
Under the new law, L.D. 2069 “An Act to Amend the Ownership Disclosure Requirements for Applicants for Liquor Licenses and Certificates of Approval,” the ownership disclosure requirements have been significantly streamlined. The most important change is the introduction of a 10% ownership threshold. This means you are only required to report individuals or entities that have a direct or indirect ownership interest of 10% or more in your licensed entity.
Previously, license holders had to report all ownership interests, regardless of the percentage. Now, this reporting is limited to significant stakeholders, which reduces the administrative burden on smaller entities and those with numerous minor shareholders.
Who Needs to be Disclosed?
According to the new guidelines, you must disclose:
Any person or entity with a 10% or more direct ownership interest in the entity holding the license.
Any person or entity with an indirect financial interest that meets the new legal criteria. This includes:
Options, warrants, or other rights to acquire an equity interest in the licensed entity.
Rights to payment based on revenues, profits, or losses from the licensed operations, such as profit sharing, revenue sharing, or royalty payments.
If a beneficiary of a trust is a minor child and holds an ownership interest of 10% or more, you do not need to list their personal information. Instead, simply note the ownership percentage and indicate "minor child" in the name field.
What If No Owner Has a 10% or Greater Stake?
If your licensed entity does not have any owners with an ownership stake of 10% or more, the process is even simpler. Instead of submitting detailed ownership information, you can complete and submit an Affidavit (available on the supplemental ownership form) stating this fact. This affidavit, which must be notarized, confirms that no individual or entity meets the 10% ownership threshold. Contrary to discussions when this legislation was being discussed, no other affidavits are required.
How to Submit Your Information
To comply with these new requirements, you need to fill out the Supplemental Ownership Form provided by BABLO. This form asks for basic information about your entity and details of any owners or stakeholders who meet the 10% ownership threshold.
You can find the form and instructions here. Make sure to complete it fully and accurately to avoid delays in your licensing process.
Final Thoughts
In a rare case of de-regulation, these changes will reduce the complexity and paperwork involved in maintaining your liquor license while ensuring that significant stakeholders are appropriately disclosed. By focusing on meaningful ownership, Maine’s new rules help license holders like you streamline compliance, allowing you to focus on your business.
If you have any questions or need further clarification, don’t hesitate to reach out us here.
Stay compliant, and here’s to your continued success in Maine’s vibrant hospitality industry!
