18-119 Office of the State Controller

Chapter 1 Travel and Expense Reimbursement Policies

Code Me. R. 18-119 Ch. 1 Travel and Expense Reimbursement Policies {#sec-18-119-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-119 Ch. 1}

SUMMARY: These regulations specify official policy which governs travel and expense reimbursement for State employees and officials, the definition of which expenses are reimbursable and the levels of such reimbursement.

INTRODUCTION

The traveling expenses of State officials and employees as well as members of State boards and commissions, incurred in connection with official State business, are reimbursed through a properly prepared and approved Travel and Expense Account Voucher. (BP Form 22)

Statutory PER DIEM allowance for personal services in connection with official State business may be included with traveling expenses on the Travel and Expense Account Voucher in the column provided at the extreme right hand side of the form.

DEFINITION OF TERMS

"Official Headquarters" - The limits of the city, town or unorganized place from which any State official regularly conducts his/her official State duties.

"Residence" The permanent home address or domicile of any State employee.

"Official" Any elected, appointed, classified, and unclassified employee or members of any State commission or board.

"Department Head" - The officially designated individual who directs the daily operation of any department.

GENERAL PROVISIONS

The provisions in this manual are designed to provide the minimum requirements considered necessary for administering travel and expense accounts. Departments are authorized to supplement this manual as long as the minimum requirements are met.

It shall be the responsibility of each department head, bureau or division chief or designated person to insure that the provisions of this section are carried out and that all claims submitted are fair and just to the State and to the employee concerned.

Any or all of the following rules may be superseded by the results of collective bargaining agreements.

ASSIGNMENT OF OFFICIAL HEADQUARTERS

Each State employee will be assigned an official headquarters by the department head concerned. Every expense account will show an official headquarters which will be established as follows:

1. Employees whose duties require their presence in Augusta at least two days each week, or where no other location is indicated as proper, Augusta shall be designated as their official headquarters.

2. For employees who are in the field virtually all the time and travel to Augusta only on rare occasions, the designated official headquarters may be the place of the employee's residence, but only if such will prove advantageous to the State and without prejudice to the employee.

3. For employees whose official duties require their presence at some location other than Augusta for such a major portion of their time that it can logically be considered as the headquarters of their work for the State, then that location shall be designated as their official headquarters.

TRANSPORTATION - AUTOMOBILES

Use of State-owned Vehicles

1. The use of State-owned vehicles for non-official travel or for personal purposes is prohibited. Transportation to personal residence may be authorized when made for the purpose of storing a State-owned vehicle. Assignment will not be made when necessary duties of the State fail to require a material amount of travel on State business.

2. The driver of a motor vehicle shall be responsible for operating the vehicle in a safe and prudent manner in accordance with all motor vehicle laws. Any fines or penalties arising from the operation of a motor vehicle in an unlawful manner shall be the responsibility of the driver.

Use of Privately-owned Vehicles

1. The mileage allowance for privately-owned passenger vehicles shall be in accordance with current statutes or collective bargaining agreements. Mileage reimbursement shall be for miles actually traveled on official business. All charges for such travel shall show the point where such travel started and ended as well as the number of miles traveled. Vicinity mileage must be shown separately. Travel shall be by the most practical direct route. Any person traveling by an indirect route shall assume any extra expense incurred. When it is required that several persons from any agency travel to and from the same point, for the same general purpose, reimbursement for the use of privately-owned vehicles will be as follows so as to obtain the maximum benefits to the State: When four or less State employees are involved, reimbursement will be for one car; five to eight employees, reimbursement will be for two cars; nine to twelve, three cars, etc.

2. Privately-owned motor vehicles shall not be used whenever State-owned vehicles are assignable and available.

3. Actual expenditures for parking and tolls incurred while on official travel status are reimbursable. Receipts are required only for those claims exceeding $3. However, charges for gasoline, lubrication, repairs, antifreeze, towage, and other similar expenditures will not be allowed as reimbursable when privately-owned vehicles are used.

TRAVEL BY AIR, BUS OR TRAIN

1. Travel by air, bus or train should be at the most economical and practical rate. Advantage should be taken of excursion fares, business flights, etc. Any charges for first class air transportation will not be allowed except in most unusual circumstances.

2. Air script should be used whenever the cost of commercial transportation is to be charged to the State. Any official traveling on State business may purchase an airline ticket directly and request reimbursement on the travel and expense account form. However, no advance will be made to assist the direct purchase of airline tickets. Air script can now be directly issued by departments which are willing to centralize this function. Contact the Bureau of Accounts and Control for more information.

3. If only one person is traveling out-of-state (Boston or beyond) and wishes to take his personal car, actual expenses will be allowed only if less than air fare. Air fare in lieu of actual travel expenses will include the price of coach air fare only and will not include meals, lodging or other expenses en route. When more than one person travels out-of-state in the same car, mileage and actual expenses will be allowed if less than the total cost of coach air fares.

HOME - TRAVEL TO AND FROM

No official of the State will be reimbursed for any travel expenses between his/her official headquarters and personal residence, except when a statutory provision expressly provides differently, or when in the opinion of the State Controller such charges are justified by being less expensive to the State or necessary because of unusual circumstances. This prohibition is to include use of State-owned motor vehicles, except in those cases where employees are so authorized by the department head concerned.

RENTAL OR CHARTER OF SPECIAL CONVEYANCES

1. No official or employee of the State will be reimbursed for the use of rented or chartered vehicles or airplanes unless it is clearly demonstrated to the State Controller that such rental will be in the best interest of the State. Prior approval is required except in emergency situations.

2. When two or more employees are traveling on official business they should check on the availability of the State plane before making final plans for travel.

MEAL REIMBURSEMENT

Actual meal expenses shall be reimbursed only when one of the following conditions are met:

1. The expenses are incurred while an employee is traveling on State business and lodging is required. (In State meals may be subject to employee bargaining contract limitations).

2. The expenses relate to a meal associated with an official meeting which is part of a formal program. Attendance at the meeting should have prior departmental approval. (The meeting's agenda must be attached to the expense voucher when submitted for reimbursement.)

3. The expenses are incurred by members of State boards or commissions as provided by law. (5 M.R.S. - Section 13)

When an employee is required to perform services beyond his/her normal work day, or is recalled after regularly assigned duties, reimbursement for meals may be authorized after obtaining the approval of the department head. However, only those charges for meals taken "outside" his/her normal work day hours are reimbursable. (Subject to bargaining contract limitations)

The employee must indicate on the expense account the town or city in which the meals were taken, the number of meals claimed, if more than one, and the names and business relationship of any other individuals for whom reimbursement is claimed. While on overnight travel status, no more than three meals may be claimed in one 24 hour day.

Supporting receipts are required for any one meal exceeding $8, including tax and gratuity. List all meals separately on the expense voucher, for example:

$1.95 (B-Breakfast)

$3.50 (L-Lunch)

$8.50 (D-Dinner) - Receipt attached

LODGING REIMBURSEMENT

Hotel or Motel

1. Reimbursement for actual expenses for hotel room charges incurred in travel will be on the following basis:

a) Lodging in New York City, Washington, D.C. and other major cities outside of the New England area will be allowed up to $50.00 per day plus tax; (Major city is over two hundred thousand population)

b) Lodging in Boston, Hartford, and Providence will be allowed up to $40.00 per day plus tax; and

c) Lodging in all other cities and towns will be allowed up to $30.00 per day plus tax.

d) The above rates may be adjusted by the Commissioner of Finance and Administration with the approval of the Governor.

2. These daily amounts are the maximum allowed for each employee and are not to be considered as per diem amounts. Supporting receipts are required for all hotel reimbursement costs.

3. Waivers of the above hotel/motel room charges are provided for as follows:

a) When attending a national or regional conference, room charges at the conference site or the rooms prearranged by the sponsoring organization will be reimbursed if the expense account bears the signed approval of the department or agency head. Brochures, agendas or other documentation of the conference site should be attached to the expense account if this waiver is utilized. This waiver is for the actual amount of the room charges incurred.

b) Other travelers at State expenses are allowed a waiver of up to $10.00 per day plus tax if they are unable to obtain lodging within the limitations of subsection 1; a), b), c), above. The employees signature on the expense account will be accepted in lieu of a formal request for a waiver.

c) Room charges in excess of the waiver limitations will be considered as personal non-reimbursable expenditures, except as they may be authorized in writing by the Governor's Office.

4. When accommodations are made under the American Plan, the receipts must show the amount applicable to meals and the amount applicable to lodging.

5. Reimbursement for lodging where ONE State official travels on official State business shall not exceed the single room rate subject to limitations. The single room rate should be indicated on the receipted bill. This provision is to clarify the situation for those who take members of their family to meetings or conventions. If, for example, the double occupancy rate is $33 and single rate is $28, reimbursement will be allowed for the amount of $28 provided the single room rate is shown on the receipted bill, otherwise only two-thirds (2/3) of the double occupancy rate will be allowed ($22).

Alternate Lodging

The use of trailers as a substitute for other lodging and meals may be authorized with the rates to be established by the department head concerned. However, authorization to use trailers will be permitted only when determined to be more advantageous to the State.

REQUIRED RECEIPTS

Original receipts must be attached to expense vouchers in support of the following expenses:

1. Lodging;

2. Any one meal exceeding $8 including gratuities and taxes;

3. Registration fees;

4. Airline, train or bus tickets;

5. Claims for chartered or personally rented aircraft or automobile (prior approval of Controller required); and

6. Other items exceeding $3.00.

ORGANIZED MEETINGS, CONFERENCE, TRAINING SESSIONS, ETC.

Expenses incurred while attending conference, seminars, conventions and training sessions must be supported by a program of literature setting forth the opening and closing dates of the events. Claims for meals and lodging incurred under this section shall be in accordance with the travel allowances set forth elsewhere in this policy. However, in many cases, registration fees entitle registrants to meals. In NO case, will reimbursement for a meal be made if the accompanying program shows that a meal is provided.

Whenever possible, the costs for a State-sponsored meetings should be billed to the State on a single invoice. Approval is required from the department head for all organized meetings, conferences, training sessions or promotional gatherings. Payment requests shall contain, as a minimum, the following information; (1) the purpose and location of the meetings; (2) a copy of the agenda; (3) the names of all consultants and participants for whom the department will make payment; and (4) the breakdown of all costs involved.

MISCELLANEOUS

Reimbursement of costs of items of a personal nature will not be made. Such items classified as personal include overnight bags, briefcases, desk sets, drugs, alcoholic beverages, laundry, valet service, baby sitting fees, Christmas cards and flowers. Any dispute or question concerning reimbursable expenses may be appealed to the Commissioner of Finance and Administration.

While direct sales to the State of Maine are exempt from the Maine Sales and Use Tax, State officials and employees in official travel status within the State should pay the tax levied for meals and rental charges and include the amount of tax paid on the Travel and Expense Account Voucher submitted for reimbursement. Also, sales taxes levied by other states or political subdivisions outside the State of Maine should be paid by the traveler and included on the voucher submitted for reimbursement.

Toll telephone charges made in conjunction with State business are reimbursable in full and may be claimed on expense accounts. It is recommended that employees use the Infoswitch System whenever possible to eliminate the use of the cost of telephone credit cards. The Infoswitch System is the new long Distance Control System recently installed in the Capital Complex 289 telephone system. In the future, credit cards will be issued in limited numbers by the Bureau of Public Improvements and whenever possible limited to the employee that is traveling out of state. To use the Infoswitch System for Long Distance Calls from anywhere In Maine (except the 289 system) dial

1. 1-800-322-2108

2. An operator will ask you for your I.D. number and the number to be called.

3. The call will be placed for you without making any determination as to your calling parameters.

4. Stay on the line until your call is completed or you receive a busy signal.

5. If you receive a busy signal, hang up and try again.

Telephone credit cards expire annually on January 31st, and are not automatically renewed.

Whenever employees of the State are traveling with committed or other patients, prisoners, or any person in the care or custody of such employees, necessary expenses for assistance will be allowed, but charges must be fully explained and the name of the person given.

Emergency purchases of equipment or supplies in excess of $3.00 must be supported by receipts. Any purchase over $10 must be approved by department head. The State Purchasing Agent, however, must approve purchase of all supplies and materials.

Miscellaneous expenses, not enumerated herein, when necessarily incurred by the traveler in connection with the transaction of official business, are allowed only when the necessity and nature of the expense are cleanly, fully and satisfactorily explained and the travel expense voucher is approved by the department head or his authorized agent.

Cash advances are available by properly preparing a BP-14 Form, Request for Out-of-State Travel and/or Travel Advance. To request an advance, submit a BP-14 form to the Bureau of Accounts and Control approximately ten (10) days prior to your scheduled departure in order to allow for processing and mailing. If an employee's expense voucher is not settled within fifteen (15) days of the return date, further cash advances may be refused. The State reserves the right to settle overdue cash advances by payroll deduction.

PREPARATION OF TRAVEL VOUCHER (Appendix 2)

The Travel and Expense Account Voucher, must be used by State officials and others to claim reimbursement for per diem salaries and all travel related expenses incurred while on official State business.

The authority to approve travel vouchers may be delegated by a department or agency head to an employee under their jurisdiction by filing a properly prepared and approved BP Form 21, Signature Authorization Card, with the Bureau of Accounts and Control. (NOTE: Department or agency heads must sign all out-of-state travel vouchers.)

Expense accounts must be rendered at least once a month. Make sure that the names and addresses are legible and that zip codes are included in all addresses. Detailed instructions relating to preparation of the travel voucher are printed on the reverse side of the standard form.

Whenever an employee's travel expenses are to be reimbursed by the Federal Government or other non-State Sponsor, only one expense account should be filed. For example, if the expense account is filed between the individual and the sponsor, then an expense report should not be filed with the State.

JUSTIFICATION AND APPROVAL OF OUT-OF-STATE TRAVEL (Appendix 1)

Prior approval of the Budget Office for Out-of-State travel is required when:

1. More than one person from the same agency will be traveling outside a radius of 700 miles of Augusta.

2. The travel will be outside the continental United States with the exception of neighboring cities of the Canadian Provinces within a radius of 700 miles of Augusta.

3. The cost, when added to the current year expenditures, will be in excess of the proposed expenditures approved in the budget from the same department/agency.

When one or more of the above conditions exist, a properly prepared BP Form 14, Request for Out-of-State Travel and/or Travel Advance, should be presented to the Bureau of the Budget no sooner than fifteen (15) working days not later than ten (10) working days prior to the expected departure date.

The Department or Agency Head must personally approve all vouchers for out-of-state travel. The authority for approving out-of-state travel vouchers may not be delegated. The revised Travel and Expense Account Vouchers include the following statements to be signed by the department or agency head: "I certify that the above out-of-state travel expenditures are within the specified limits." (This statement or similar wording must be added to older BP-22 forms if they are used for reimbursement of out-of-state travel.) The specified limits are defined to be budgeted expenditures for out-of-state (C&O 4300-4399).

Should the amount of the voucher exceed the specified limit, a waiver is required from the Budget Officer. Attach the related BP-14 with approval from the Budget Office to the voucher before submitting it to Accounts and Control for payment.

PERSONNEL TRANSFER AND HIRING EXPENSES

Whenever it shall be necessary to effect the transfer of an employee of the State, including promotion, from one official station to another by direction of the department head, said employee shall be reimbursed for reasonable and necessary moving expenses actually incurred if both of the following conditions are met:

1. The transfer is made for the convenience of the State and not for the convenience or at the request of the employee.

2. The distance from the employee's former residence to the new official station is greater than 35 miles.

A Financial Order is required as authority for payment of relocation costs to coterminous department or agency heads. Other individuals appointed to positions within the Executive Branch may be reimbursed for moving expenses provided that the prior approval is obtained from the appointing and salary setting authorities and the Budget Office. Relocation reimbursements are limited to actual direct moving costs and are limited to those situations when it is necessary to recruit a person with unique qualifications that would substantially benefit the State.

Travel expenses of persons appearing at a State Department or Agency for an interview for employment will not be reimbursed unless accompanied by prior written authorization of the department head.

History

• STATUTORY AUTHORITY: Title 5 Section 1541, subsection 13.
• EFFECTIVE DATE: August 23, 1979
• AMENDED: May 30, 1982
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPLACED: August 13, 1996 - Converted version contained language never formally adopted through the A.P.A. This language was dropped, and minor non-substantive corrections were made.
• AGENCY NAME CHANGE: Occurred in 2004.
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 3, 2025

18-125 Bureau of Revenue Services

Chapter 101 General Administrative Provisions

Code Me. R. 18-125 Ch. 101 General Administrative Provisions {#sec-18-125-ch.-101 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 101}

SUMMARY: This rule describes certain general administrative provisions of Maine Revenue Services.

OUTLINE OF CONTENTS:

.01 Reconsideration Process

.01 Reconsideration Process

A.Interest, as calculated under 36 M.R.S. § 186, continues to accrue throughout the entire reconsideration process under 36 M.R.S. § 151 until the underlying tax liability is abated or waived by the State Tax Assessor (“Assessor”) or paid by the taxpayer.

B.Penalties, including penalties calculated under 36 M.R.S. §§ 187-B or 5228(5), that would otherwise accrue during the reconsideration process under 36 M.R.S. § 151 shall be waived or abated by the Assessor when the taxpayer timely files a petition for reconsideration with Maine Revenue Services of the assessment or other determination resulting in the penalties. This penalty waiver or abatement is a permanent waiver or abatement. If the underlying tax liability is upheld by the Assessor during the reconsideration process and that liability is considered final, the penalty accrual shall resume.

C. For purposes of this rule, a taxpayer’s liability that is subject to reconsideration is considered “final” when the taxpayer, with respect to such liability, has no further right of administrative or judicial review.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 186, 187-B, and 5228(5)
• EFFECTIVE DATE: April 27, 2024 – filing 2024-088

Chapter 102 Electronic Funds Transfer

Code Me. R. 18-125 Ch. 102 Electronic Funds Transfer (eft) {#sec-18-125-ch.-102 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 102}

SUMMARY: This rule describes the requirements for tax and other payments made by electronic funds transfer. This rule applies to payments of taxes imposed by Title 36 of the Maine Revised Statutes (“M.R.S.”), as well as to payments processed by Maine Revenue Services (“MRS”) for other agencies of Maine State Government pursuant to agreements with those agencies. Authority to collect taxes electronically is provided in 36 M.R.S. § 193.

This rule does not prohibit the collection of taxes or other payments processed by MRS by credit or debit card or other payment mechanism, with the exception of mandatory EFT participation required by section .02 below.

OUTLINE OF CONTENTS:

.01 Definitions

.02 Mandatory EFT participation

.03 EFT payment methods

.04 Payments

.05 Request for waiver from mandatory EFT participation

.06 Prenotification tests

.07 CTX files

.08 Emergencies

.09 Problem resolution

.10 Interest and penalties

.11 Taxpayer and service provider responsibilities

.01 Definitions

As used in this rule, the following terms have the following meanings:

A. Automated Clearing House. “Automated Clearing House” (ACH) means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions. An automated clearing house may be a federal reserve bank or any organization that operates as a processing agent for ACH transactions between financial institutions pursuant to an operating agreement with the North American Clearing House Association.

B. ACH credit method. “ACH credit method”means an electronic funds transfer that utilizes the ACH network and that is initiated by a taxpayer or service provider via a financial institution to credit (i.e., deposit) a payment amount to a designated Maine State Government bank account.

C. ACH debit method. “ACH debit method”means an electronic funds transfer that utilizes the ACH network and that is, upon authorization by the taxpayer or service provider, initiated by MRS to debit (i.e., withdraw from) a taxpayer’s designated bank account a payment amount for deposit into a designated Maine State Government bank account.

D. ACH Network. “ACH Network”means the electronic funds transfer system governed by the rules of the North American Clearing House Association.

E. Addendum record. “Addendum record”means the supplemental data included in the electronic ACH data file that is necessary for the accurate, timely processing of an EFT payment.

F. Bank account. “Bank account” means a financial account, including, without limitation, a savings account or checking account, established at a financial institution in the taxpayer’s name or in the name of the service provider.

G. Cash Concentration or Disbursement Plus Addendum (CCD+). “Cash Concentration or Disbursement Plus Addendum” (CCD+) means a standard ACH transaction format that is accompanied by one addendum record.

H. Customer Initiated Entry (CIE+). “Customer Initiated Entry” (CIE+) means a standard ACH transaction format. A CIE entry is a credit entry that is initiated by or on behalf of the holder of a consumer account to effect a transfer of funds to the deposit account of a receiver. It is accompanied by one addendum record in the CCD+.

I. Combined annual tax liability. “Combined annual tax liability” means a taxpayer’s tax liability for the prior calendar year for all taxes administered by MRS. The tax liability is measured as tax reported by the taxpayer, or as adjusted by MRS, and includes estimated tax liabilities required to be paid. For example, the combined annual tax liability for an individual income tax return equals the tax liability on Form 1040ME after application of non-refundable tax credits, either as reported by the taxpayer or as subsequently adjusted by MRS, less Maine income tax withheld and any applicable refundable tax credits. Any tax liability that is under reconsideration or judicial review and any assessment of tax for which the reconsideration period under 36 M.R.S. § 151 has not yet expired as of the last day of the prior calendar year is not considered part of the combined annual tax liability.

J. Corporate Trade Exchange (CTX). “Corporate Trade Exchange” (CTX) means a standard ACH transaction format that accommodates multiple addenda records.

K. Electronic Funds Transfer (EFT). “Electronic Funds Transfer” (EFT) means a standard ACH funds transfer to credit or debit a bank account or wire transfer. EFT does not include payments by check, draft, or similar paper instrument.

L. Financial institution. “Financial institution”means a bank, savings bank, savings and loan association, credit union, or any other entity that manages savings accounts, checking accounts, or other financial accounts for its customers that can support the EFT transactions described in this rule.

M. Intra-bank transfer. “Intra-bank transfer”means the transfer of funds from a depositor’s account to a Maine State Government bank account within the same financial institution.

N. Maine Revenue Services (MRS). “Maine Revenue Services” (MRS) means the Maine Bureau of Revenue Services.

O. North American Clearing House Association (NACHA). “North American Clearing House Association” (NACHA) means the national regulatory body that establishes the standards, rules, and procedures governing the ACH Network.

P. Prenotification test. “Prenotification test”means an ACH transaction test submitted to MRS by the taxpayer, service provider, or financial institution in the amount of at least one cent ($.01).

Q. REW remitter. “REW remitter” means a person, such as a title company or broker, that remits Maine real estate withholding (“REW”) of tax pursuant to 36 M.R.S. § 5250-A on behalf of a buyer of Maine real property.

R. Service provider. “Service provider”means a person that performs accounting, tax preparation, or other similar services and remits tax payments on behalf of its clients. Examples of service providers are payroll processors as that term is defined in Title 10, chapter 222; accountants; third-party withholders such as banks; REW remitters; and bill-paying services.

S. Settlement date. “Settlement date”means the date an electronic payment is deposited in a bank account designated by the State of Maine for deposit of electronic tax payments or the date a prenotification test transaction occurs.

T. Standard EFT payment methods. “Standard EFT payment methods”means the ACH credit method or the ACH debit method of electronic funds transfer.

U. Taxpayer identification number. “Taxpayer identification number”means the account number assigned by MRS to a person’s tax account.

V. Tax payment convention. “Tax payment convention” (TXP) means the standard format approved by the Bankers EDI Council of NACHA that identifies tax payments in the addendum record portion of a CCD+ transaction.

W. Wire transfer. “Wire transfer”means the same-day transfer of funds from a depositor’s account to a Maine State Government bank account using a wire transfer payment system such as Fedwire. Wire transfers do not contain a standard addendum record and may be used only in an emergency situation.

.02 Mandatory EFT participation

EFT mandate.

1. Effective until December 31, 2021, any person with a combined tax liability during the 12-month period ending June 30th of the prior calendar year of $10,000 or more is required, upon notification by MRS, to remit all Maine tax payments electronically, using either the ACH credit method or ACH debit method, for any payment for which an electronic processing method is provided by the State Tax Assessor. This requirement does not apply to property taxes imposed by 36 M.R.S., Part 2, Commercial Forestry excise taxes imposed by 36 M.R.S., Part 4, and any assessment derived from a criminal investigation. Once a taxpayer has been required to remit tax electronically under this provision, the taxpayer must continue to remit taxes electronically in future years, without regard to the $10,000 threshold, unless that taxpayer obtains a waiver from participation as provided in this rule.

2. Effective January 1, 2022, any person with a combined annual tax liability of $10,000 or more is required to remit all Maine tax payments electronically for which an electronic processing method is provided by the State Tax Assessor and must continue to remit taxes electronically in future years, without regard to their combined annual tax liability, unless the taxpayer obtains a waiver from participation as provided in this rule. Any person who has not previously been required to make tax payments electronically pursuant to this rule who becomes subject to the requirement on or after January 1, 2022, will be allowed until March 1^st of the calendar year they first become subject to the requirement to come into compliance with the electronic payment requirement.

B. Service providers. Service providers (other than payroll processing companies and REW remitters) that remit taxes on behalf of a client must remit electronically for that client using a standard EFT payment method if the client is mandated to pay the tax electronically. Payroll processing companies, including fiscal agents designated in accordance with 36 M.R.S. § 5250(5), and REW remitters that remit real estate withholding tax payments on or after January 1, 2025 must remit electronically for all clients regardless of whether those individual clients are mandated. A payroll processing company or REW remitter may request a waiver from this requirement from the State Tax Assessor for good cause.

.03 EFT Payment methods

A. Generally. A taxpayer may use either the ACH credit method or the ACH debit method to make an EFT payment. A taxpayer must have an existing tax account with MRS to which an EFT payment may be made. Generally, a business taxpayer must submit an Application for Tax Registration to establish a tax account with MRS either by filing online through the Maine Tax Portal or via the downloadable application form, both of which are available at https://revenue.maine.gov.

B. ACH credit method. All taxpayers submitting a payment using the ACH credit method must do so using the CCD+ and TXP format, unless use of a different format is approved by MRS. The taxpayer must utilize a financial institution that supports the ACH credit method and must provide an electronic file to the institution in a specified format. MRS will provide the file specifications to the taxpayer upon request via the Electronic Funds Transfer Application – ACH Credit available on the MRS website.

C. ACH debit method. Pre-registration is not required if an ACH debit payment is initiated on an electronically filed return submitted via the Maine Tax Portal or E-File.

D. Service providers. Service providers must use the ACH credit method unless funds are withdrawn directly from client bank accounts, in which case the ACH debit method must be used. Service providers using the ACH debit method must pre-register each client separately with MRS. Service providers that remit via the ACH credit method on behalf of 25 or more taxpayer accounts may request to submit the payments using the CTX format.

E. Information provided to taxpayers. MRS will provide the following information to taxpayers electing to use an ACH payment method:

1. General EFT program information and instructions;

2. Tax-specific information; and

3. ACH credit method addendum record layout for each type of tax payment and depository bank information, or ACH debit method data input instructions, whichever applies.

F. Taxpayers to notify MRS of changes. Taxpayers using either the ACH credit or debit methods must provide MRS with current taxpayer information using the Maine Tax Portal, including without limitation, changes in contact person, mailing address, telephone number, tax remittance frequency, tax account number, bank account numbers, and the establishment of a new tax account.

.04 Payments

A. Due date. A tax payment, whether submitted via EFT or otherwise, is due on the date required by Maine tax law or regulation. The taxpayer is responsible for ensuring that MRS receives tax payments timely.

B. ACH credit method. An ACH credit method payment must be accepted by the taxpayer’s financial institution at least one business day prior to the payment due date to ensure that the payment is credited to the taxpayer’s tax account by the payment due date.

C. Service providers. A service provider using the ACH credit method and CTX must use its own name in field 3, positions 5 through 20 of the ‘5,’ “Company/Batch Header Record” of the ACH file. A service provider must also use its own Employer Identification Number in field 7, positions 40 through 54 of the ‘6,’ CTX Corporate Entry Detail Record” of the ACH file when using the ACH credit method and CTX format to make tax payments.

Service providers using the CTX format must transmit a separate, unique ACH file for each designated financial institution account number.

D. Value of payment; Fees. EFT payments, intra-bank transfers, and wire transfers must be in U.S. funds. Any financial institution or third-party fees are the responsibility of the taxpayer.

.05 Request for waiver from mandatory EFT participation

For good cause, a taxpayer or service provider may request in writing that MRS waive the mandatory EFT participation The following is generally considered to constitute good cause:

A. The taxpayer can demonstrate that the tax liability for subsequent tax periods will decline to an amount below the EFT threshold and that the tax liability will not increase in the foreseeable future to an amount that will exceed the threshold. This subsection does not apply to an REW remitter or to a person remitting Maine income tax withholding.

The taxpayer’s tax liability is the result of an unusual event unique to the tax period that is the cause for exceeding the EFT threshold This subsection does not apply to an REW remitter or to a person remitting Maine income tax withholding.

The taxpayer is under the payroll administration of the federal government.

.06 Prenotification tests

A. ACH credit method. It is recommended that a taxpayer submit an error-free prenotification test at least six (6) business days prior to submitting an EFT payment to MRS using the ACH credit method. A prenotification test is required for each financial institution account. Each prenotification test must be submitted in compliance with CCD+ specifications and must include the addendum record information.

ACH debit method. The Maine Tax Portal will automatically perform a prenotification test on all ACH debits transactions submitted via the portal.

.07 CTX files

A. Generally. Any person remitting for 25 or more separate taxpayer accounts may submit payments to MRS using the ACH credit method and CTX format.

B. Testing required. A person making a request under this section to use the ACH credit method and CTX format must, at least six (6) business days prior to submitting an EFT payment to MRS, submit an error-free prenotification test. The prenotification test must include a minimum of two (2), and a maximum of eight (8), test payment transactions. Payments must include addendum information for valid active taxpayer accounts submitted in the format required by MRS specifications.

File processing. MRS will confirm that the dollar amount deposited equals the sum of dollar amounts contained in the addendum records file for each tax payment. If the amounts are not equal, the file will not be processed by MRS.

.08 Emergencies

If an otherwise required ACH transaction cannot be made due to circumstances beyond the payer’s control, the payer must remit the amount due by other means, including wire transfer, intra-bank transfer, or by check. To ensure accurate, timely processing, the payer must provide MRS with the following information if paying by wire transfer or intra-bank transfer:

A. Payment amount;

B. Settlement date;

C. Taxpayer name;

D. Taxpayer identification number;

E. Tax payment type code or payment description;

F. Tax period for which the payment is made; and

G. Maine StateGovernmentdepository bank account number.

A payment by check must be accompanied by the related tax return or document or the payer must provide the taxpayer name, taxpayer identification number, the tax type to which the payment is directed, reporting period for which payment is made, contact person, and telephone number.

.09 Problem resolution

A. Research services. Generally, MRS will, upon request, make reasonable efforts to assist taxpayers in resolving payment discrepancies, including whether or not a particular payment has been received. This request must be submitted in writing and must provide the following information:

1. Requester’s name if not the taxpayer;

2. Taxpayer name and phone number;

3. Settlement date;

4. Maine State Government depository bank account number;

5. Payment amount;

6. Taxpayer identification number;

7. Tax payment type code or payment description; and

8. If ACH debit method, the payment confirmation number.

B. Debit or adjusting entries. Generally, debit or adjusting entries to Maine State Government depository bank accounts are prohibited. If a prohibited entry has occurred, MRS reserves the right to reverse the entry.

C. Duplicate and other erroneous payments. Duplicate and other erroneous payments to a valid taxpayer account will be posted (credited) to the taxpayer’s account.

.10 Interest and penalties

A. Generally. Payments made by EFT are subject to the interest and penalty provisions of 36 M.R.S., including §§ 186, 187-A, and 187-B.

Insufficient funds. EFT deposits to a designated Maine State Government bank account that are reversed by the State’s depository bank due to insufficient funds in the originator’s account are subject to the insufficient funds penalty provided by 36 M.R.S. § 187-B(5). When a payment is returned for insufficient funds due to a change in financial institution or bank account number by the taxpayer, the insufficient funds penalty will be imposed where the taxpayer has not followed the provisions of this rule. In circumstances where the State has changed financial institutions or depository bank account numbers, payments returned for insufficient funds will incur the insufficient funds penalty when MRS has notified the taxpayer in writing of the change.

C. Failure to remit electronically. A taxpayer that is required to remit taxes via EFT that fails to do so is liable for the EFT penalty pursuant to 36 M.R.S. § 187-B(5-A).

D. Waiver or abatement of penalties. A taxpayer may request waiver or abatement of a payment-related penalty for reasonable cause in accordance with 36 M.R.S. § 187-B(7). The request must be made in writing within 60 days after receipt of notice of the assessment or determination in accordance with 36 M.R.S. § 151. However, the insufficient funds penalty under 36 M.R.S. § 187-B(5) is not subject to waiver or abatement. In addition, for purposes of the EFT program, the State Tax Assessor may make a finding of reasonable cause when the State Tax Assessor determines that the taxpayer has made a good-faith effort to remit payment in accordance with this rule. In determining whether a good-faith effort has been made, the State Tax Assessor will consider:

1. In the case of a taxpayer or service provider using the ACH credit method, whether written documentation is provided from company or bank records substantiating the taxpayer’s belief that a timely payment was initiated;

2. In the case of a taxpayer or service provider using the ACH debit method, whether the person provides documentation of a payment confirmation number provided by MRS or its service provider showing that the payment was initiated timely;

3. Written documentation substantiating a bank error;

4. Whether an ACH or other system failure beyond the taxpayer’s control occurred; and

5. Whether remittance to satisfy the underpayment is made in a timely manner.

E. Abatement of interest. Interest abatement will be considered on a case-by-case basis in accordance with 36 M.R.S. § 186. Written request for abatement of interest must be submitted to the MRS division that issued the assessment of interest in accordance with 36 M.R.S. § 151.

.11 Taxpayer and service provider responsibilities

A. Generally. Persons that remit electronically must maintain adequate documentation to substantiate the initiation of an EFT payment.

B. ACH credit method program. Taxpayers and service providers that remit using the ACH credit method must ensure that their financial institution is able to support that method of payments to the State of Maine. MRS is not responsible for instruction on the usage and reliability of the products and services of financial institutions or other companies, nor for fees charged by financial institutions, service providers, and others. Taxpayers and service providers remitting by ACH credit method are responsible for the proper use of all software and services used to remit payments via EFT. MRS will provide ACH file layouts upon request.

C. ACH debit method program. Taxpayers must follow all debit program instructions issued by MRS. Taxpayers must maintain a record of the confirmation number or sequence provided when an ACH debit method payment is initiated, the payment amount, the payment initiation date, the tax reporting period, and the taxpayer identification number related to the payment.

Recordkeeping requirements. The recordkeeping requirements for EFT remitters are governed by 36 M.R.S. § 135, subsection 1.

History

• STATUTORY AUTHORITY: 36 M.R.S. § 193.
• EFFECTIVE DATE: September 23, 1998
• AMENDED: January 7, 2008 – filing 2008-1
• AMENDED: November 21, 2008
• AMENDED: December 16, 2008 – filing 2008-575
• AMENDED: August 23, 2010 – filing 2010-361
• AMENDED: July 11, 2015 – filing 2015-123
• AMENDED: July 4, 2021 – filing 2021-140
• AMENDED: April 27, 2024 – filing 2024-089
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 3, 2025

Chapter 103 Recordkeeping and Retention

Code Me. R. 18-125 Ch. 103 Recordkeeping and Retention {#sec-18-125-ch.-103 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 103}

SUMMARY: This rule describes the requirements for the maintenance and retention of books, records, and other sources of information necessary for the determination of a person’s correct tax liability. This rule also addresses these recordkeeping and retention requirements where all or a part of a taxpayer’s records are received, created, maintained, or generated through various computer, electronic, and imaging processes and systems. This rule applies to all taxes, including sales tax, use tax, service provider tax, and corporate income tax.

OUTLINE OF CONTENTS:

1 Definitions

2 Recordkeeping Requirements—Generally; for Registered Retailers

3 Recordkeeping Requirements—Machine-Sensible Records

4 Records Maintenance Requirements

5 Access to Machine-Sensible Records

6 Taxpayer Responsibility and Discretionary Authority

7 Alternative Storage Media

8 Effect on Hard-copy Recordkeeping Requirements

9 Records Retention—Time Period

SECTION 1. Definitions

“Assessor” means the State Tax Assessor or any designated agent.

“Database management system” means a software system that controls, relates, retrieves, and provides access to data stored in a database.

“Electronic data interchange” or “EDI” means the computer-to-computer exchange of business transactions in a standardized, structured electronic format.

“Hard-copy record” means any document, record, report, or data compilation printed on paper.

“Machine-sensible record” means a collection of related information in an electronic format. Machine-sensible records do not include hard-copy records that are created or recorded on paper or stored in or by an imaging system such as a microfilm, microfiche, or storage-only imaging system.

“Storage-only imaging system” means a system of computer hardware and software that provides for the storage, retention, and retrieval of documents originally created on paper. It does not include any system, or part of a system, that manipulates or processes information or data contained on a document in any manner other than to reproduce the document in hard copy or as an optical image.

SECTION 2. Recordkeeping requirements—Generally; for registered retailers

Every taxpayer, including every retailer required to be registered under 36 M.R.S., Chapter 211 and every service provider required to be registered under 36 M.R.S., Chapter 358, must maintain all records that are necessary to determine the correct tax liability. All required records must be made available on request by the Assessor as required by 36 M.R.S. §112(4).

A taxpayer that captures the required records in machine-sensible format must maintain those records for as long as is required by 36 M.R.S. §135(1) and Section 9 of this rule. In the case of sales tax, this means at least 6 years. These records must upon request be made available to the Assessor in machine-sensible format as described in Section 5, including permitting the transfer of the records onto a laptop or other computer in the possession and control of the Assessor.

A taxpayer may demonstrate tax compliance with hard-copy documents or reproductions thereof, in whole or in part, whether or not the taxpayer also has retained or has the capability to retain records on electronic or other storage media in accordance with this rule. However, this subsection does not relieve the taxpayer of the obligation to comply with subsection 2.

Records kept by a taxpayer doing business in this State must include all bills, receipts, cash register tapes, sales invoices, purchase invoices, and any other documentation supporting the entries made in the books of account and ledgers typically maintained by the prudent business person, as well as all related reports produced from these records. The records must also include all documents, schedules, or work papers used in connection with the preparation of tax returns filed by the retailer or other taxpayer.

Taxpayers must maintain at a minimum the following information:

Detailed records of all taxable sales of tangible personal property made in Maine, including all components of the total sale price of such sales.

Detailed records of all taxable sales of taxable services made in Maine, including all components of the total sale price of such sales.

Detailed records of all exempt sales of tangible personal property or taxable services made in Maine, including all components of the total sale price of such sales.

Detailed records of all purchases of tangible personal property and taxable services purchased for use or consumption in Maine, including all components of the total purchase price of such items.

SECTION 3. Recordkeeping requirements—machine-sensible records

General requirements

Machine-sensible records used to establish tax compliance must contain sufficient transaction-level detail information so that the details underlying the machine-sensible records can be identified and made available to the Assessor upon request. A taxpayer may discard duplicated records and redundant information provided that the taxpayer’s responsibilities under this rule are met.

At the time of an audit, the retained records must be capable of being retrieved and converted to a standard record format.

Electronic data interchange requirements

If a taxpayer uses electronic data interchange processes and technology, the level of record detail, in combination with other records related to the transactions, must be equivalent to that contained in a paper record that conforms to the requirements of 36 M.R.S. §135 and this rule. For example, the retained records should contain such information as vendor name, invoice date, product description, quantity purchased, price, amount of tax, indication of tax status, shipping detail, etc. Codes may be used to identify some or all of the data elements, provided that the taxpayer provides a method that allows the Assessor to interpret the coded information.

The taxpayer may capture the information necessary to satisfy paragraph A above at any level within its accounting system and need not retain the original EDI transaction records if the taxpayer can establish the audit trail, authenticity, and integrity of the retained records.

Example: A taxpayer using electronic data interchange technology receives electronic invoices from its suppliers. The taxpayer retains the invoice data from completed and verified EDI transactions in its accounts payable system rather than retaining the EDI transactions themselves. Since neither the EDI transaction nor the accounts payable system captures information from the invoice pertaining to product description and vendor name (i.e., they contain only codes for that information), the taxpayer also retains other records, such as its vendor master file and product code description lists and makes them available to the Assessor. Thus, this taxpayer need not retain its EDI transaction for tax purposes.

Electronic data processing system requirements. The requirements for an electronic data processing accounting system are similar to those for a manual accounting system, in that an adequately designed accounting system incorporates methods and records that will satisfy the requirements of this rule.

Business process information

Upon the request of the Assessor, the taxpayer must provide a written description of the business process that created the retained records. This description must include the relationship between the records and the tax documents prepared by the taxpayer and the measures employed to ensure the integrity of the records.

The taxpayer must be able to demonstrate:

the functions being performed as they relate to the flow of data through the system;

the internal controls used to ensure accurate and reliable processing, and

the internal controls used to prevent unauthorized addition, alteration, or deletion of retained records.

The taxpayer must maintain the following specific documentation for machine-sensible records retained pursuant to this rule:

record formats or layouts;

field definitions (including the meaning of all codes used to represent information);

file descriptions (e.g., data set name); and

detailed charts of accounts and account descriptions.

SECTION 4. Records maintenance requirements

The taxpayer’s computer hardware or software must accommodate the extraction and conversion of retained machine-sensible records.

Maine Revenue Services recommends that taxpayers refer to the standards established by the federal National Archives and Record Administration (NARA) for guidance on the maintenance and storage of electronic records, such as the labeling of records, the location and security of the storage environment, the creation of back-up copies, and the use of periodic testing to confirm the continued integrity of the records. The NARA standards may be found at 36 Code of Federal Regulations, Part 1234.

SECTION 5. Access to machine-sensible records

Unless the taxpayer and the Assessor agree in writing on other means of providing access to machine-sensible records, upon the Assessor’s request the taxpayer must provide the Assessor, either directly or through a third party, with all requested records in bulk and in a media form acceptable to the Assessor or a standard record format specified by the Assessor, and with the transaction-level detail deemed necessary by the Assessor to determine the correct tax liability.

SECTION 6. Taxpayer responsibility and discretionary authority

To meet the requirements of Section 3, a taxpayer may create files solely for the use of the Assessor. For example, if the taxpayer uses a database management system, the taxpayer may create and retain a file that contains the transaction-level detail from the database management system and that meets the requirements of Section 3. The taxpayer must document the process that created the separate file to show the relationship between that file and the original records.

A taxpayer may contract with a third party to provide custodial or management services of the records. Such a contract does not relieve the taxpayer of its responsibilities under this rule.

SECTION 7. Alternative storage media

For purposes of storage and retention, a taxpayer may convert hard-copy documents generated or received in the normal course of business and required to be retained under this rule to microfilm, microfiche, or other storage-only imaging systems and may discard the original hard-copy documents, provided the conditions of this section are met. Documents that may be stored on these media include, but are not limited to, general books of account, journals, voucher registers, general and subsidiary ledgers, and supporting records of details, such as sales invoices, purchase invoices, exemption certificates, credit memoranda, bills of lading, and delivery tickets.

Microfilm, microfiche, and other storage-only imaging systems must meet the following requirements:

Documentation establishing the procedures for converting the hard-copy documents to microfilm, microfiche, or other storage-only imaging system must be maintained and made available upon request. The documentation must include, at a minimum, a sufficient description to allow an original document to be followed through the conversion system as well as internal procedures established for inspection and quality assurance.

Procedures must be established for the effective identification, processing, storage, and preservation of the stored documents and for making them available for the period they are required to be retained by 36 M.R.S. §135 (see Section 9 below).

Upon request by the Assessor, a taxpayer must provide facilities and equipment for reading, locating, and reproducing any documents maintained on microfilm, microfiche, or other storage-only imaging systems so that records may be reviewed in a prompt and efficient manner.

When displayed on storage-only imaging equipment or reproduced on paper, the documents must exhibit a high degree of legibility and readability. For this purpose, legibility is defined as the quality of a letter or numeral that enables the observer to identify it positively and quickly to the exclusion of all other letters or numerals. Readability is defined as the quality of a group of letters or numerals being recognizable as words or complete numbers.

All data stored on microfilm, microfiche, or other storage-only imaging systems must be maintained and arranged in a manner that permits the expeditious location of any particular record.

There must be no substantial evidence that the microfilm, microfiche or other storage-only imaging system lacks authenticity or integrity.

SECTION 8. Effect on hard-copy recordkeeping requirements

Except as otherwise provided in this section, the provisions of this rule do not relieve taxpayers of the responsibility to retain hard-copy records that are generated or received in the ordinary course of business as required by existing law and rules.

If hard-copy records are not generated or received in the ordinary course of transacting business (e.g., when the taxpayer uses electronic data interchange technology), such hard-copy records need not be created.

Hard-copy records generated at the time of a transaction using a credit or debit card or electronic funds transfer must be retained unless all the details necessary to determine the correct tax liability relating to the transaction are subsequently received and retained by the taxpayer in accordance with this rule. Such details include those listed in Section 3.

This rule does not preclude the Assessor from requiring the taxpayer to provide hard-copy printouts in lieu of retained machine-sensible records at the time of an audit.

SECTION 9. Records retention—time period

Records required to be retained pursuant to the terms of this Rule must be retained for the same time period as all other records are required to be kept for the applicable tax. Title 36 M.R.S. §135 requires that records pertaining to the Maine Income Tax (36 M.R.S., Part 8), the Maine Estate Tax (36 M.R.S., Chapters 575 and 577) and the Maine Mining Excise Tax (36 M.R.S., Chapter 371) must be retained as long as is required by applicable federal law and regulation. Records pertaining to the Special Fuel Tax user reports filed pursuant to 36 M.R.S. §3209(2) and the International Fuel Tax Agreement must be retained for at least 4 years. Records pertaining to all other taxes imposed by Title 36 of the Maine Revised Statutes must be retained for a period of at least 6 years. All records must be kept in such a manner as to ensure their security and accessibility for inspection by the Assessor.

History

• STATUTORY AUTHORITY: 36 MRS §§ 112, 135
• EFFECTIVE DATE: January 17, 2006 – filing 2006-13
• AMENDED: March 30, 2008 – filing 2008-125
• AMENDED: July 4, 2021 – filing 2021-141
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 104 Filing of Maine Tax Returns

Code Me. R. 18-125 Ch. 104 Filing of Maine Tax Returns {#sec-18-125-ch.-104 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 104}

SUMMARY: This rule describes the requirements for filing certain Maine tax returns, including mandatory electronic filing of certain Maine tax returns, and requirements of software developers to develop Maine tax return forms.

OUTLINE OF CONTENTS:

.01 Definitions

.02 General filing requirements – individual income tax returns

.03 Mandatory participation

.04 Request for waiver from mandatory participation

.05 Penalties

.06 Software specifications

.07 Application date

.01 Definitions. As used in this rule, unless the context otherwise indicates or may otherwise require, the following terms have the following meanings that shall apply throughout the rule.

A.“Electronic filing”or “Electronic data submission” means the submission of return or document information using a computer, the internet, or any other means of electronic submission of data in a manner prescribed by the State Tax Assessor (“Assessor”) where the return or document information is electronically accepted by the Assessor. Specifications for the manner of the transfer of data may be found on the Maine Tax Portal, Maine Revenue Services (“MRS”) website or by contacting MRS.

B.“Maine tax return”means any Maine tax return for purposes of 36 M.R.S. § 193 (original or amended return) for which MRS provides a program for electronic filing or electronic data submission, including, but not limited to, individual income tax returns, sales/use tax returns, service provider tax returns, income tax withholding returns (Forms 941ME), pass-through entity withholding returns (Form 941P-ME), real estate withholding (“REW”) returns (Forms REW-1-1040, REW-1-1041, REW-1-1120, and REW-5), corporate income tax returns, real estate transfer tax declarations, franchise tax returns, insurance tax returns, fuel tax returns (gasoline distributor tax, special fuel tax), special tax returns, applications for the refundable seed capital investment tax credit by private venture capital funds, applications for the certified visual media production wage reimbursement, and returns and reports required to report federal adjustments under 36 M.R.S. §§ 5195-5198.

C. “Person”means an individual, firm, partnership, association, society, club, corporation, financial institution, estate, trust, business trust, receiver, assignee, or any other group or combination acting as a unit, other than the State or Federal Government or any political subdivision or agency of either government.

D. “Prepares”means completes Maine tax returns directly or through employees.

E. “REW filer” means a person, such as a title company, broker, or other REW preparer that files Maine real estate withholding tax forms pursuant to 36 M.R.S. § 5250-A on behalf of a buyer or seller of Maine real property.

F. “Software developer”means a person that develops computer-generated forms or payroll services that are used in connection with Maine tax laws.

G. “Special tax” means the blueberry tax, cannabis excise tax, cigarette tax, health care provider tax, hospital tax, initiator of deposit tax, mahogany quahog tax, milk handling fee, potato tax, railroad tax, or tobacco tax.

H. “Tax return preparer or preparer”means a person who prepares Maine tax returns or who employs one or more persons to prepare Maine tax returns. An employee of a tax return preparer is not considered a tax return preparer for purposes of this rule.

I.“Threshold amount”means, for the taxable year, the sum of the applicable Maine standard deduction amount and the Maine personal exemption amount for each taxpayer and for each dependent.

.02 General Filing Requirements – individual income tax returns

A. Resident individuals. Unless an exception applies, a Maine income tax return is required to be filed by every resident individual:

Who is required to file a federal income tax return for the taxable year; or

2. Who has a Maine individual income tax liability (before tax credits) for the taxable year under 36 M.R.S., Part 8.

B. Exceptions. The following taxpayers who would otherwise be required to file under subsection A, paragraph 1, above, are not required to file a Maine income tax return:

A resident individual who does not have a Maine income tax liability pursuant to Part 8 for the taxable year and who filed a federal income tax return for the taxable year for the sole purpose of claiming a credit under Internal Revenue Code section 32; and

2. For taxable years beginning on or after January 1, 2013, a resident individual whose federal adjusted gross income is less than the applicable threshold amount and who is not subject to any of the addition modifications under 36 M.R.S. § 5122(1).

.03 Mandatory Participation. The following returns and applications must be submitted by electronic data submission in accordance with this section, unless a waiver from mandatory participation under section .04 has been granted:

Individual income tax returns. A tax return preparer must file by electronic data submission all Maine tax returns for individual income tax, unless:

During the previous calendar year, the tax return preparer prepared 10 or fewer Maine tax returns for individual income tax; or

2. The taxpayer refuses to allow the return to be filed by electronic data submission and the tax return preparer notes the refusal in the taxpayer’s records.

Sales, use, and service provider tax returns. A tax return preparer must file all Maine tax returns for sales, use, or service provider tax by electronic data submission.

Income tax withholding, REW, and pass-through entity withholding returns.

Employers that are registered for Maine income tax withholding, third-party filers or payroll processors as defined in 10 M.R.S., Chapter 222, fiscal agents designated in accordance with 36 M.R.S. § 5250(5), and non-wage payers that are subject to Maine income tax withholding under 36 M.R.S. §§ 5255-B and 5255-C must file by electronic data submission all Maine quarterly returns with respect to Maine income tax withholding.

Pass-through entities with any nonresident members that are subject to pass-through withholding on Maine-source income must file Form 941P-ME by electronic data submission.

A buyer of real property located in Maine who is required to withhold Maine income tax under 36 M.R.S. § 5250-A(2), or the REW filer for such buyer, must, for returns due on or after January 1, 2025, file Forms REW-1-1040, REW-1-1041, and REW-1-1120 by electronic data submission.

A nonresident seller (determined in accordance with the provisions of 36 M.R.S. § 5250-A) of real property located in Maine that submits Form REW-5 to request an exemption or reduction in the real estate withholding amount, or the REW filer for such seller, must, for Forms REW-5 submitted on or after May 1, 2025, file Form REW-5 by electronic data submission.

Corporate income tax returns. Corporations, including tax-exempt entities, required to file Form 1120ME with total assets of $5 million or more as of the last day of the tax year must file returns by electronic data submission. For returns filed in calendar year 2025 or any subsequent calendar year, corporations, including tax-exempt entities, subject to the tax imposed by 36 M.R.S., Chapter 817 and a tax return preparer for such corporation that is required to file the federal corporate return electronically for the taxable year must file Maine Form 1120ME by electronic data submission.

E. Real estate transfer tax returns. Starting with returns filed in calendar year 2021, a tax return preparer must file by electronic data submission all Maine tax returns for real estate transfer tax, except where the tax return preparer prepared fewer than 10 Maine tax returns for real estate transfer tax in the previous calendar year.

F. Franchise tax returns. Starting with returns filed in calendar year 2025, a financial institution subject to the tax imposed by 36 M.R.S., Chapter 819 and a tax return preparer for such financial institution must file by electronic data submission all Maine tax returns for franchise tax.

G. Insurance premiums tax returns. Starting with returns filed in calendar year 2025, a person subject to the taxes imposed by 36 M.R.S., Chapter 357, or 25 M.R.S. § 2399, and a tax return preparer for such person, must file by electronic data submission all Maine tax returns required by 36 M.R.S. §§ 2521-A and 2531(3).

H. Fuel tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine gasoline distributor and/or special fuel supplier tax returns, including the annual shrinkage returns and schedules.

Special tax returns. Starting with returns filed in calendar year 2025, a tax return preparer must file by electronic data submission all Maine special tax returns.

J. Applications for the refundable seed capital investment tax credit by private venture capital funds under 36 M.R.S. § 5216-B(2). Starting with applications filed in calendar year 2025 for investments made in calendar year 2024 or later, a private venture capital fund and a tax return preparer for such fund must file by electronic data submission all applications for the refundable seed capital investment tax credit under 36 M.R.S. § 5216-B(2).

K. Applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A. Starting with applications filed in calendar year 2025, a visual media production company and a tax return preparer for such company must file by electronic data submission all applications for the certified visual media production wage reimbursement under 36 M.R.S., Chapter 919-A.

L. Income tax returns for estates and trusts. Starting July 1, 2025, a tax return preparer must file by electronic data submission all Maine income tax returns for estates and trusts, unless during the previous calendar year, the tax return preparer prepared 10 or fewer Maine income tax returns for estates and trusts.

M. Partnership audit returns and reports. Starting January 1, 2026, a partnership required to report federal adjustments under §§ 5195-5198, and the tax return preparer or state partnership representative for such partnership, must file by electronic data submission all Maine tax returns and reports required to be filed pursuant to 36 M.R.S. §§ 5195-5198.

.04 Request for Waiver from Mandatory Participation

The Assessor shall waive the mandatory participation requirement under section .03 where the Assessor determines that the requirement may cause undue hardship. A person subject to mandatory participation under this rule may request a waiver from participation by submitting a waiver request in writing that indicates with specificity the tax type for which the waiver is requested, the undue hardship that will result from compliance with the electronic filing requirements, and the date by which the person intends to be in compliance. A determination by the Assessor under this section is subject to the administrative appeal provisions of 36 M.R.S. § 151.

.05 Penalties

Any person that fails to file returns by electronic data submission as required by this rule is liable for the penalty under 36 M.R.S. § 187-B(5-B). The Assessor shall waive or abate penalties for reasonable cause pursuant to 36 M.R.S. § 187-B(7). A determination by the Assessor under this section is subject to the administrative appeal provisions of 36 M.R.S. § 151.

.06 Software Specifications

Software developers are required by this rule to include 2-D barcodes pursuant to MRS specifications on all Maine substitute forms produced by the software developer. The Assessor shall waive the mandatory participation requirement under section .03 where the Assessor determines that the requirement may cause undue hardship. A software developer subject to this section may request a waiver from participation by submitting a waiver request in writing that indicates with specificity the undue hardship that will be caused by complying with this section. A determination by the Assessor under this section is not subject to the administrative appeal provisions of 36 M.R.S. §­ 151.

.07 Application date

Except where otherwise stated, this Rule applies to tax periods beginning on or after January 1, 2016.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 193, 5220(7)
• EFFECTIVE DATE: February 11, 2008 – filing 2008-68
• AMENDED: November 21, 2008
• AMENDED: December 16, 2008 – filing 2008-576
• AMENDED: March 1, 2010 – filing 2010-49
• AMENDED: October 31, 2010 – filing 2010-522
• AMENDED: October 21, 2012 – filing 2012-289
• AMENDED: April 22, 2013 – filing 2013-101
• AMENDED: January 31, 2016 – filing 2016-013
• AMENDED: October 8, 2016 – filing 2016-164
• AMENDED: August 28, 2017 – filing 2017-130
• AMENDED: July 4, 2021 – filing 2021-142
• AMENDED: April 27,2024 – filing 2024-090
• AMENDED: August 4, 2024 - filing 2024-171
• AMENDED: February 25, 2025 – filing 2025-034
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 110 Requests for Advisory Rulings

Code Me. R. 18-125 Ch. 110 Requests for Advisory Rulings {#sec-18-125-ch.-110 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 110}

MAINE REVENUE SERVICES 24 STATE HOUSE STATION AUGUSTA, MAINE 04333-0024

DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES BUREAU OF REVENUE SERVICES

Rule No. 110 (18-125 CMR 110)

REQUESTS FOR ADVISORY RULINGS

18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

125 BUREAU OF REVENUE SERVICES Chapter 110: REQUESTS FOR ADVISORY RULINGS

SUMMARY: This rule explains the procedures for the submission and disposition of requests for an Advisory Ruling from Maine Revenue Services (MRS). MRS has adopted this Rule as required by 5 M.R.S.A. § 9001.

OUTLINE OF CONTENTS:

Definition

Form of Request and Ruling

Elements of a Request for an Advisory Ruling

Submitting a Request

Effect of an Advisory Ruling

Declining Request for Advisory Ruling

SECTION 1. DEFINITIONS

As used in this Rule, “Advisory Ruling” means a written letter issued as an advisory ruling pursuant to 5 M.R.S.A. § 9001 by the Assessor or a Division Director of MRS about the applicability of any tax law or rule administered by MRS to a particular person making the request (or “requester”).

SECTION 2. FORM OF REQUEST

A request for an Advisory Ruling shall be in writing.

Nothing in this Rule limits requesters or their representatives from making written or unwritten informal requests to MRS staff for general guidance with respect to the application and administration of Maine tax law.

SECTION 3. ELEMENTS OF REQUEST FOR ADVISORY RULING

A request for an Advisory Ruling shall include the following:

1. Statement of Material Facts
2. Legal Basis

The request shall state the ruling requested and explain the legal basis for that requested ruling.

1. Statement of Any Pending Examination, Audit, Reconsideration, or Litigation

The request shall state whether the person making the request is currently under MRS examination, audit, administrative reconsideration, or judicial review with respect to the issue(s) raised by the request for an Advisory Ruling.

1. Declarations and Signature

The Advisory Ruling request must be signed and dated by the requester or the requester’s authorized representative and accompanied by declarations that is are substantially in the following form:

“I declare that I have examined this request for an advisory ruling and to the best of my knowledge and belief the information presented in support of the requested ruling is true and complete. I have reviewed the provisions in 36 M.R.S. § 191(2)(UU), which, among other things, states that Maine Revenue Services may disclose advisory rulings in certain situations in redacted format so as not to reveal information from which the taxpayer may be identified. I also understand that Maine Revenue Services may decline to issue an advisory ruling, either in whole or in part.”

1. Supporting Documents

A requester, or requester’s authorized representative, should submit copies of documents pertinent to the Advisory Ruling request. Original documents should not be submitted. All documents submitted to MRS become part of MRS’s file and will not be returned.

SECTION 4. SUBMITTING A REQUEST

A request for an advisory ruling submitted by mail should be sent to the following mailing address:

Maine Revenue Services

Attn: [insert name of MRS Division]

24 State House Station Augusta, ME 04333-0024

A request for an advisory ruling may also be submitted electronically to MRS, including, but not limited to, by email or fax.

SECTION 5. EFFECT OF AN ADVISORY RULING

An Advisory Ruling issued pursuant to this Rule is subject to 5 M.R.S.A. § 9001(3), which provides that an Advisory Ruling “shall not be binding upon an agency, provided that in any subsequent enforcement action initiated by the agency which made the ruling, any person’s justifiable reliance upon the ruling shall be considered in mitigation of any penalty sought to be assessed.”

SECTION 6. DECLINING REQUEST FOR ADVISORY RULING

The Assessor or the Division Director of MRS may decline to issue an Advisory Ruling, either in whole or in part.

History

• Statutory Authority: 5 M.R.S.A. § 9001; 36 M.R.S.A. § 112(1).
• Effective Date: August 13, 2011 – filing 2011
• AMENDED: April 27, 2024 – filing 2024-091
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 9, 2025

Chapter 201 Rules of Procedure Used to Develop State Valuation

Code Me. R. 18-125 Ch. 201 Rules of Procedure Used to Develop State Valuation {#sec-18-125-ch.-201 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 201}

SUMMARY: This rule provides an overview of the annual State Valuation process conducted by Maine Revenue Services and provides clarification regarding the law governing State Valuation.

Outline of Contents:

.01 Scope of rule

.02 Definitions

.03 Ratio Studies

.04 Computation of State Valuation

.05 Aggregate State Valuation

.01 Scope of rule

This rule governs the method used by the Bureau to develop the annual State Valuation report. The State Tax Assessor may order or approve additional procedures to achieve the goal of Equalized Value, consistent with the intent of this rule and Maine law.

.02 Definitions

A. Assessor. “Assessor” means a sworn municipal assessing authority, whether an individual assessor, a board of assessors, or a chief assessor of a primary assessing area. With respect to the unorganized territory, “Assessor” means the State Tax Assessor.

B. Average Deviation. “Average Deviation” means a statistic derived from a Ratio Study that is calculated by summing the Deviations of all the Sales Ratios in a Ratio Study and dividing the resulting sum by the total number of Sales Ratios in that study.

C. Average Ratio. “Average Ratio” means a statistic derived from a Ratio Study that is calculated by summing the Sales Ratios in the central 70% of a Ratio Study and dividing that sum by the total number of Sales Ratios in the central 70%. The central 70% of a Ratio Study excludes the highest 15% of Sales Ratios and the lowest 15% of Sales Ratios from the total number of Sales Ratios in the Ratio Study.

D. Base Lot. “Base Lot” means a minimum parcel of land, as determined by the Assessor, normally expressed in acres or front feet, which meets municipal guidelines for development.

E. Base Sales Period. “Base Sales Period” means the 12-month period from July 1 through June 30 that includes the April 1 assessment date that is the basis for the State Valuation period under review.

F. Bureau. “Bureau” means the Bureau of Revenue Services, which may be referred to as Maine Revenue Services. The executive director of the Bureau is the State Tax Assessor.

G. Captured Assessed Value. “Captured Assessed Value” has the same meaning as provided in 30-A M.R.S. §5222.

H. Certified Ratio. “Certified Ratio” means the level of Municipal Assessed Value, expressed as a percentage, relative to Just Value as certified by the Assessor pursuant to 36 M.R.S. §383.

I. Commercial Property. “Commercial Property” means real estate that is used primarily for business purposes (e.g., service, retail, or wholesale) including, without limitation, apartment buildings with five or more rental or lease units, mobile home parks, office buildings, and recreational facilities. Apartment buildings with fewer than five rental or lease units are considered Residential Property.

J. Condominium. “Condominium” has the same meaning as provided in 33 M.R.S. §1601-103(7).

K. Current Use. “Current Use” means a special valuation method applicable to certain types of property as provided by Article IX, section 8, subsection 2 of the Constitution of the State of Maine.

L. Deviation. “Deviation” means a statistic derived from a Ratio Study that is equal to the absolute value of the percentage-point difference between an individual Sales Ratio and the Average Ratio.

M. Equalized Value. “Equalized Value” means the Municipal Assessed Value adjusted to the Just Value or, if applicable, to the Current Use value.

N. Industrial Property. “Industrial Property” means property dedicated to the assembling, processing, warehousing, or manufacturing of finished or partially finished products from raw materials or manufactured parts.

O. Just Value. “Just Value” means market value, that is the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller for a property, each acting without compulsion in an arm’s-length transaction.

P. Municipal Assessed Value. “Municipal Assessed Value” means the property value established by the Assessor for purposes of local property taxation.

Q. Municipality. “Municipality” means any city, town, plantation, or that portion of a county in the unorganized territory.

R. Non-segregated Ratio Study or Combined Study. “Non-segregated Ratio Study” or “Combined Study” means a Ratio Study that combines more than one class of property (e.g . , Waterfront Property, Nonwaterfront Property, Condominium, and Commercial Property) into a single study.

S. Nonwaterfront Property. “Nonwaterfront Property” means real estate that is not bounded by water and whose value is not measurably influenced by access or proximity to water.

T. Personal Property. “Personal Property” has the same meaning as provided in 36 M.R.S. §601.

U. Quality Rating. “Quality Rating” means a statistic derived from a Ratio Study that is calculated by dividing the Average Deviation by the Average Ratio.

V. Ratio Study. “Ratio Study” means a statistical display of real estate sales information where sales data is typically arranged under some or all of the following headings: owner or class of property (e.g., Waterfront Property or Nonwaterfront Property); date of sale; book and page; tax map, plan, and lot number; selling price; Municipal Assessed Value; Sales Ratio; and Deviation. A Ratio Study typically also contains a summary that shows the Weighted Average, the Average Ratio, the Average Deviation, and the Quality Rating.

W. Residential Property. “Residential Property” means real estate that is suitable for seasonal or year-round use as a dwelling. Residential Property includes apartment buildings with fewer than five rental or lease units.

X. Sample. “Sample” generally means, for purposes of a Ratio Study, a sale of property, but may include appraisals conducted by the Bureau when the number of sales in an expanded sales period is insufficient.

Y. Sales Ratio. “Sales Ratio” means a statistic derived from a Ratio Study that is calculated by dividing a property’s Municipal Assessed Value by its selling price (or Bureau appraised value).

Z. Segregated Ratio Study. “Segregated Ratio Study” means a Ratio Study that includes sales of a single class of property (e.g., Waterfront Property, Nonwaterfront Property, Condominium, or Commercial Property).

AA. State Valuation. “State Valuation” for a given tax year means the total Equalized Value of all taxable property in a Municipality as of the April 1 two years prior, plus the portion of exempt value of homestead exemptions and Business Equipment Tax Exemption property reimbursed by the State to the Municipality pursuant to 36 M.R.S. §691, et al., less the Captured Assessed Value of tax increment financing districts in the Municipality.

BB. Transmission and Distribution Property. “Transmission and Distribution Property” means property owned by a transmission and distribution utility that is regulated by the Public Utilities Commission under Title 35-A of the Maine Revised Statutes. Transmission and Distribution Property includes, without limitation, substations, transformers, transmission systems, and distribution systems.

CC. Undeveloped Land. “Undeveloped Land” means unimproved Nonwaterfront Property that is not classified under Current Use provisions, and not classified as a Base Lot. When a Municipality values Wasteland separately from Undeveloped Land, the Bureau will accept the separate valuations unless it determines that one or both valuations are significantly understated or overstated.

DD. Wasteland. “Wasteland” means real estate that is unsuitable for development or agricultural or silvicultural use (e.g . , wetland, ledge, or other unsuitable land).

EE. Waterfront Property. “Waterfront Property” means real estate bounded by a body of water or waterway or real estate whose value is measurably influenced by its access or proximity to water.

FF. Weighted Average. “Weighted Average” means a statistic derived from a Ratio Study that is calculated by dividing the sum of Municipal Assessed Values by the sum of the sale prices or Bureau-appraised values of all the Samples in a Ratio Study.

.03 Ratio Studies

Ratio Studies used in the computation of State Valuation are created according to the following guidelines:

A. Representative Sampling. The number of Samples included in the Ratio Study must be sufficient to provide a reliable analysis. The Samples included in a Ratio Study must reasonably reflect the distribution in the Municipality of the property classes described in subsections .04(A) through (E). A minimum of 12 Samples is required for a Ratio Study.

B. Segregated Ratio Studies. Segregated Ratio Studies are used when the State Tax Assessor determines that the Samples do not reasonably reflect the distribution in that Municipality of property classes described in subsections .04(A) through (E). Segregated Ratio Studies are also used when the Average Ratios among the property classes deviate by more than 10-percentage points. The State Tax Assessor requires a minimum of eight Samples within each class of property to conduct a Segregated Ratio Study.

C. Expanded Sales Period. If the Base Sales Period does not contain the minimum number of Samples required by subsections A or B, or if the State Tax Assessor determines that the Samples included in the Base Sales Period do not reasonably reflect the distribution in the Municipality of the property classes described in subsections .04(A) through (E), the Base Sales Period is expanded as follows:

1. An 18-month period that begins on the April 1 immediately preceding the April 1 assessment date under review and runs through September 30 of the tax year under review. For example, if the valuation period under review is based on an assessment date of April 1, 2019, the Base Sales Period is July 1, 2018 – June 30, 2019. The 18-month expanded sales period is April 1, 2018 – September 30, 2019.

2. If an 18-month sales period does not yield the minimum number of Samples required by subsections A or B, Samples are drawn from a 24-month period that begins on January 1, 15 months prior to the April 1 assessment date under review, and runs through December 31 of the tax year under review. For example, if the valuation period under review is based on an assessment date of April 1, 2019, the 24-month expanded sales period is January 1, 2018 – December 31, 2019.

3. The State Tax Assessor may expand the 24-month sales period described in paragraph 2 when the State Tax Assessor determines that additional Samples are needed to ensure that the Ratio Study is representative of the sales in that Municipality.

D. Appraisals. When the number of Samples during both the Base Sales Period and the expanded sales period are less than the minimum number required by subsections A or B, the minimum number of Ratio Study Samples is obtained by combining the available sales with appraisals conducted by the Bureau using the State assessment manual maintained by the State Tax Assessor pursuant to 36 M.R.S. §331.

E. Segregated Ratio Study Sales Periods. Segregated Ratio Studies follow the expanded sales period procedure outlined above; however, the time frames for different Segregated Ratio Studies in each Municipality do not need to be the same. For example, a Segregated Ratio Study of residential Nonwaterfront Property may require only the Base Sales Period to meet the minimum number of Samples required by subsections A and B, whereas a Segregated Ratio Study of Commercial Property may need the 18-month expanded sales period to obtain the minimum number of Samples required by subsection B.

F. Invalid Ratios; Amended Ratio Studies. For cause, the State Tax Assessor may determine that an Average Ratio is invalid. Cause includes, without limitation, the use of “welcome stranger” assessments (where property values are adjusted only when properties are sold) and other assessing practices that result in inequitable valuations.

To determine the validity of Municipal Assessed Value information used in a Ratio Study, the State Tax Assessor compares the current year’s assessed value to the prior year’s assessed value for a random sampling of properties in the Municipality. This random sampling does not include properties where significant improvements to, or deletions from, the property have occurred from the prior year to the current year. The random sampling must exclude any property that was sold during the period covered by the Ratio Study. The random sampling is weighted to reasonably reflect the distribution in the Municipality of all of the classes of property described in subsections .04(A) through (E).

When the State Tax Assessor determines that a Ratio Study is invalid, the State Tax Assessor will adjust the Municipal Assessed Value of the Samples in the Ratio Study to develop an amended Ratio Study that the State Tax Assessor determines is a more reliable indicator of current assessment levels. The State Tax Assessor may consider sales data for transactions that have occurred after the expanded sales period to develop an amended Ratio Study.

.04 Computation of State Valuation

Specific adjustments to Municipal Assessed Value to determine State Valuation are described in this section. Not all of the adjustments described below pertain to all Municipalities, and the State Tax Assessor may make adjustments to classes of property not listed below to determine State Valuation.

A. Transmission and Distribution Property. The State Valuation for Transmission and Distribution Property is based on the declared value submitted to the Municipality by the electrical utility, unless the State Tax Assessor determines the electrical utility has significantly undervalued, overvalued, or omitted property.

B. Current Use Programs

1. Tree Growth. The Equalized Value of land that is properly classified as forest land under the provisions of the Maine Tree Growth Tax Law is 100% of the applicable per-acre values determined by the State Tax Assessor in accordance with 36 M.R.S. §§ 576-577.

2. Farmland. The Equalized Value of land that is properly classified as farmland is based on the per-acre rates prescribed by 36 M.R.S. §§ 1105 and 1119.

(a) Except for farm woodland, the Equalized Value of farmland is the applicable full value per-acre farmland rate established by the Assessor.

(b) The Equalized Value of farm woodland is 100% of the applicable per-acre values determined by the State Tax Assessor in accordance with 36 M.R.S. §§ 576-577.

3. Open Space. The Equalized Value of land that is properly classified as open space, as defined under 36 M.R.S. §1102(6), is based on the greater of:

(a) The value of open space land using one of the valuation methods under 36 M.R.S. §1106-A; or

(b) The state rate for Undeveloped Land as described in subsection E below.

C. Commercial, Industrial, and Personal Property. The Equalized Value of Commercial Property, Industrial Property, and Personal Property is calculated by dividing the Municipal Assessed Value by the:

1. Certified Ratio, provided that ratio is not greater than 110% of the Average Ratio, or

2. Average of the Certified Ratio and the Average Ratio, if the Certified Ratio is greater than 110% of the Average Ratio.

D. Residential Property

1. Non-segregated. In cases where Residential Property in a Municipality is not segregated into subclasses, the Equalized Value of Residential Property is calculated by dividing the Municipal Assessed Value of the Residential Property by the Average Ratio.

2. Segregated. In cases where Residential Property in a Municipality is segregated into two or more subclasses (e.g., Nonwaterfront Property, Waterfront Property, or Condominium), the State Valuation for each subclass is calculated by dividing the Municipal Assessed Value for that subclass of Residential Property by its corresponding Average Ratio as determined by the Segregated Ratio Study.

3. Waterfront Property. When a review of a Municipality’s assessment records reveals either an underassessment or a failure to assess Waterfront Property, the Bureau may estimate the Equalized Value of such property based on local or regional sales data.

E. Undeveloped Land, Wasteland, Cropland, and Blueberry Land. The Equalized Value for Undeveloped Land is calculated by multiplying the number of acres in that category by the average per-acre sale price of Undeveloped Land as determined for each county or area through annual studies conducted by the Bureau. These studies will involve sales data for the three most recent years. The Equalized Value for Wasteland is calculated by multiplying the number of acres in that category by the per-acre Equalized Value of Undeveloped Land, then multiplying the resulting product by 12.5%. The Equalized Value for cropland and blueberry land not enrolled in the farmland program is determined through analysis of recent sales in the region of property in those categories. Cropland and blueberry land are defined in the Bureau’s Property Tax Bulletin No. 20 – Farmland Tax Law.

F. Estimate of State Valuation. In instances where the State Tax Assessor determines there has been concealment or nondisclosure of taxable property, or failure of the Assessor to assess taxable property, the Bureau may include a reasonable estimate of the Equalized Value of such property in the State Valuation report.

G. Adjustments. The net adjustments in Equalized Value due to valid property tax abatements (excluding hardship/poverty abatements) and supplemental assessments (excluding Current Use program penalties) for the tax year under review are calculated by dividing the Municipal Assessed Value associated with the adjustments by the applicable Average Ratio or the Certified Ratio, if the Average Ratio does not accurately reflect the relationship to Just Value.

H. Base Lots. When the State Tax Assessor determines that a Municipality has not reasonably attributed the value of a Base Lot in the assessment of land, the Bureau may use local or regional sales data to estimate the value of a Base Lot for that Municipality and include in the State Valuation for that Municipality an estimate of the amount by which that Municipality’s assessments understate the Equalized Value of land.

.05 Aggregate State Valuation

The aggregate State Valuation is determined by summing, for each Municipality, all of the Equalized Values for all of the categories listed in subsections .04(A) through (E) and rounding the resulting total to the nearest $50,000.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 201, 208, 305
• EFFECTIVE DATE: February 6, 1982 – filing 82-17
• AMENDED: October 28, 1985 – filing 85-400
• AMENDED: September 1, 1989 – filing 89-344
• AMENDED: December 16, 1992 – filing 92-476
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: June 23, 2015 – filing 2015-112
• AMENDED: June 17, 2021 – filing 2021-127

Chapter 202 Tree Growth Tax Law Valuations

Code Me. R. 18-125 Ch. 202 Tree Growth Tax Law Valuations - 2026 {#sec-18-125-ch.-202 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 202}

SUMMARY: 36 M.R.S. § 576 requires that the State Tax Assessor establish the 100% valuation per acre for each forest type, by economic region, for parcels classified under the Tree Growth Tax Law for the tax year beginning April 1, 2026.

.01 Tree Growth Tax Law Valuation Schedule – 2026

COUNTY SOFTWOOD MIXED WOOD HARDWOOD

Androscoggin 425.00 445.00 411.00

Aroostook 102.00 147.00 177.00

Cumberland 425.00 445.00 411.00

Franklin 294.00 294.00 304.00

Hancock 145.00 163.00 158.00

Kennebec 321.00 389.00 317.00

Knox 321.00 389.00 317.00

Lincoln 321.00 389.00 317.00

Oxford 294.00 294.00 304.00

Penobscot 145.00 163.00 158.00

Piscataquis 102.00 147.00 177.00

Sagadahoc 425.00 445.00 411.00

Somerset 102.00 147.00 177.00

Waldo 321.00 389.00 317.00

Washington 145.00 163.00 158.00

York 425.00 445.00 411.00

History

• STATUTORY AUTHORITY: 36 M.R.S. § 576
• EFFECTIVE DATE: October 14, 1980
• AMENDED: October 1, 1981
• AMENDED: October 1, 1982
• AMENDED: October 5, 1983
• AMENDED: October 5, 1984
• AMENDED: April 1, 1985
• AMENDED: October 6, 1985
• AMENDED: October 1, 1986
• AMENDED: October 1, 1987
• AMENDED: October 1, 1988
• AMENDED: October 1, 1989
• AMENDED: October 1, 1990
• AMENDED: November 5, 1991
• AMENDED: October 26, 1992
• AMENDED: June 13, 1994
• AMENDED: February 18, 1995
• AMENDED: August 16, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: August 28, 1996
• NON-SUBSTANTIVE CORRECTION: September 23, 1996 - “CF” corrected to “OF” in name of Department, top of first page.
• AMENDED: January 10, 1998
• AMENDED: January 26, 1999
• AMENDED: February 7, 2000
• AMENDED: January 1, 2001
• AMENDED: December 10, 2001
• AMENDED: January 8, 2003 – filing 2003-2
• CORRECTIONS: January 30, 2003
• AMENDED: November 4, 2003 – filing 2003-388
• AMENDED: December 7, 2004 – filing 2004-577
• AMENDED: January 30, 2006 – filing 2006-47
• AMENDED: January 27, 2007 – filing 2007-24
• REPEALED AND REPLACED: March 9, 2008 – filing 2008-96
• REPEALED AND REPLACED: April 5, 2009 – filing 2009-142
• REPEALED AND REPLACED: February 24, 2010 – filing 2010-46
• REPEALED AND REPLACED: February 14, 2011 – filing 2011-53
• REPEALED AND REPLACED: April 15, 2012 – filing 2012-104
• REPEALED AND REPLACED: March 19, 2013 - filing 2013-63
• REPEALED AND REPLACED: March 25, 2014 – filing 2014-048
• REPEALED AND REPLACED: April 12, 2015 – filing 2015-064
• REPEALED AND REPLACED: May 10, 2016 – filing 2016-085
• REPEALED AND REPLACED: May 22, 2017 – filing 2017-077
• REPEALED AND REPLACED: May 8, 2018 – filing 2018-073
• REPEALED AND REPLACED: May 6, 2019 – filing 2019-070
• REPEALED AND REPLACED: June 3, 2020 – filing 2020-130
• REPEALED AND REPLACED: April 20, 2021 – filing 2021-081
• REPEALED AND REPLACED: April 6, 2022 – filing 2022-050
• REPEALED AND REPLACED: April 28, 2023 – filing 2023-062
• REPEALED AND REPLACED: April 27, 2024 – filing 2024-092
• REPEALED AND REPLACED: April 8, 2025 – filing 2025-080
• APAO ACCESSIBILITY CHECK (Word): March 31, 2026
• REPEALED AND REPLACED: April 07, 2026 – filing 2026-074

Chapter 205 Certification of Assessors

Code Me. R. 18-125 Ch. 205 Certification of Assessors {#sec-18-125-ch.-205 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 205}

SUMMARY: Certification of property tax assessors in the State of Maine is the responsibility of Maine Revenue Services (“MRS”). This rule establishes levels of assessor certification, governs the nature and timing of the Certified Maine Assessor examinations, establishes requirements for annual certification renewal, and outlines the enforcement of the continuing education requirements imposed by statute.

Outline of Contents:

.01 General

.02 Certification

.03 Certification renewal

.04 Inactive/retired status

.05 Disciplinary action

.01 General

Title 36 the Maine Revised Statutes at Sections 310-314 requires MRS to establish and maintain an ongoing program for certifying that an individual is qualified to perform the assessing function in this State. This includes an examination of an individual’s knowledge of applicable property tax law and techniques of assessing, as well as continuing education (“CE”) and certificate renewal. The Property Tax Division of MRS administers this program, including administration of all assessor training and certification activities. The Director of the Property Tax Division may appoint an individual to the position of Chief of Training and Certification, who will administer the certification and certification renewal processes on behalf of MRS.

For purposes of this rule, “assessing function” means duties related to the valuation of property, property tax administration, or the formation or implementation of property tax policy.

.02 Certification

A. Examination. To receive a Certified Maine Assessor (“CMA”) designation, an individual must pass the CMA examination (“Exam”). The Exam is composed of five parts and has an eight-hour time limit. A score of 70 or higher is required on each part to pass the Exam.

1. MRS determines the time, place, and procedures for administration of the Exam. Failure to comply with these procedures, including, for example, the use of unauthorized reference materials or the exchange or communication of Exam-related information between candidates during the Exam, may result in an automatic failure of the candidate and may, at the discretion of the Director of the Property Tax Division, render the candidate ineligible to sit for future Exams.

2. MRS will report Exam results to candidates by first-class mail within 30 days of the Exam date. MRS may also email results to a candidate upon request. MRS may release information in a candidate’s training and certification file only to the candidate, unless otherwise ordered by a court.

3. A candidate who fails to pass the Exam, but achieves a passing score of 70 or higher on one or more parts of the Exam, will be allowed to carry the score for those parts to subsequent attempts to pass the Exam. For the purposes of this provision, any passing score for a single part will remain in effect for a period of 18 months from the date the score was achieved. Within the 18-month time period, a candidate need only complete the Exam parts for which he or she did not achieve a passing score.

B. Education and experience. MRS awards advanced certification levels for individuals who meet certain criteria in addition to passing the Exam. These advanced certification levels require experience in the assessing field and completion of advanced assessor training. Advanced assessor training includes courses approved by MRS as advanced continuing education (“ACE”) plus at least one course from the list of International Association of Assessing Officers (“IAAO”) courses under the related certification level requirements in subsection C below or an MRS-approved equivalent.

C. Certification levels. MRS offers the following certification levels:

1. Certified Maine Assessor (“CMA”). The CMA is a certification awarded to an individual who successfully completes the Exam, thereby demonstrating that he or she possesses the basic knowledge required to perform the assessing function for a Maine municipality on a full-time basis.

2. Certified Maine Assessor, Level 2 (“CMA-2”). The CMA-2 is a certification awarded to an individual who has successfully completed the requirements for this level, thereby demonstrating that he or she possesses an intermediate level of knowledge and abilities required to perform the assessing function for a Maine municipality on a full-time basis. To obtain a CMA-2 certification, an individual must complete the requirements for a CMA certification and the following requirements:

a. Perform the assessing function for compensation for one year; and

b. Complete a total of 100 hours of advanced assessor training approved by MRS. Advanced assessor training for this level must include successful completion (including any test included as part of the course) of at least one of the following courses or an MRS-approved equivalent:

i. IAAO Course 101 – Fundamentals of Real Property Appraisal;

ii. IAAO Course 102 – Income Approach to Valuation I; or

iii. IAAO Course 112 – Income Approach to Valuation II.

3. Certified Maine Assessor, Level 3 (“CMA-3”). The CMA-3 is a certification awarded to an individual who has successfully completed the requirements for this level, thereby demonstrating that he or she possesses an advanced level of knowledge and abilities required to perform the assessing function for a Maine municipality on a full-time basis. To obtain a CMA-3 certification, an individual must complete the requirements for a CMA certification and the following requirements:

a. Perform the assessing function for compensation for three years; and

b. Complete a total of 200 hours of advanced assessor training approved by MRS. Advanced assessor training for this level must include the requirements for CMA-2 certification and the successful completion (including any test included as part of the course) of at least one of the following courses or an MRS-approved equivalent:

i. IAAO Course 201 – Appraisal of Land;

ii. IAAO Course 300 – Fundamentals of Mass Appraisal;

iii. IAAO Course 311 – Real Property Modeling Concepts; or

iv. IAAO Course 500 – Assessment of Personal Property.

4. Certified Maine Assessor, Level 4 (“CMA-4”). The CMA-4 is a certification awarded to an individual who has successfully completed the requirements for this level, thereby demonstrating that he or she possesses an advanced level of knowledge and abilities required to perform the assessing function for a Maine municipality on a full-time basis. To obtain a CMA-4 certification, an individual must complete the requirements for a CMA certification and the following requirements:

a. Perform the assessing function for compensation for five years; and

b. Complete a total of 300 hours of advanced assessor training approved by MRS. Advanced assessor training for this level must include the requirements for CMA-3 certification plus completion (including any test included as part of the course) of at least one of the following courses or an MRS-approved equivalent:

i. IAAO Course 331 – Mass Appraisal Practices and Procedures;

ii. IAAO Course 400 – Assessment Administration;

iii. IAAO Course 402 – Property Tax Policy;

iv. IAAO Course 600 – Principles and Techniques of Cadastral Mapping; or

v. IAAO Course 601 – Cadastral Mapping – Methods & Applications.

5. Certified Assessment Technician (“CAT”). The CAT was a certification that MRS formerly awarded to an individual who successfully completed the CAT examination, thereby demonstrating that he or she possesses the basic knowledge and abilities required to perform the assessing function for a Maine municipality. As of August 2017, MRS no longer awards new CAT certifications. An individual previously certified as a CAT may continue to be certified as a CAT, provided the certification renewal criteria under section .03 below are met.

.03 Certification renewal

A. Individuals seeking certification renewal. MRS annually renews certification levels pursuant to 36 M.R.S. §311. Certification renewal requires the completion of the applicable number of hours of approved CE during a calendar year. The CE requirement begins on January 1 immediately following the date on which an individual meets the CAT, CMA, CMA-2, CMA-3, or CMA-4 certification requirements. An individual seeking renewal must provide evidence of completion of the CE requirement to MRS before a certificate will be renewed. Individuals must attend and satisfactorily complete an approved CE activity to receive credit for the activity. An individual certificate holder who has fulfilled the current year’s CE requirement may apply excess hours of CE toward the following year’s requirement. Excess hours may not be carried forward beyond the calendar year following the year in which the hours were earned.

An individual with a CAT or CMA certification who fails to complete the required CE during a calendar year will be notified by MRS on or before January 31 of the following year that his or her certificate may be revoked. Certification may be retained if that individual completes the required number of hours of CE for both the previous and current years before the end of the calendar year in which the revocation notice is received. If an individual receiving a notice of revocation does not complete the required number of CE hours for the current and previous year, that individual’s certification will be revoked.

If a CMA who has earned an advanced certification (CMA-2, CMA-3, or CMA-4) fails to attain the required hours of ACE for certification renewal at that level for any year, MRS will downgrade that individual’s certification to the level for which he or she has qualified. For the calendar year following the year in which a certification downgrade is received, an individual may renew the advanced certification through the same process as for CMA certification renewal (completion of ACE for both prior and current years).

B. Continuing education and advanced continuing education. Activities that may qualify for CE include courses, seminars, workshops, and teaching assignments. A CE activity must consist of an educational presentation related to property tax, assessment, appraisal, or other topic related to property tax administration.

An individual who wants to present a CE activity must submit a written request for approval to MRS at least 30 days before the activity. A request for approval must be in a format approved by MRS. A CE activity may include homework, classroom problems and examinations.

MRS will designate CE activities that qualify for ACE. These activities will involve concepts that are above an introductory level and are directly related to the municipal assessing field. A list of the currently approved ongoing ACE courses is available on the Property Tax Division website. Other courses may be approved for ACE at the discretion of MRS. MRS may seek written recommendations from professional groups and organizations regarding other courses that may qualify for ACE.

C. Required certification renewal training hours.

1. CMA certification renewal. For certification renewal as a CMA, an individual must complete 16 hours of CE during the calendar year. An individual must also complete an approved ethics training course once every three years. Ethics training must be approved by MRS and will count towards the annual CE hours requirement.

2. CMA-2 certification renewal. For certification renewal as a CMA-2, an individual must complete 21 hours of CE during the calendar year, including at least 5 hours of ACE. An individual must also complete an approved ethics training course once every three years. Ethics training and ACE must be approved by MRS and will count towards the annual CE hours requirement.

3. CMA-3 certification renewal. For certification renewal as a CMA-3, an individual must complete 28 hours of CE during the calendar year, including at least 12 hours of ACE. An individual must complete an approved ethics training course once every three years. Ethics training and ACE must be approved by MRS and will count towards the annual CE hours requirement.

4. CMA-4 certification renewal. For certification renewal as a CMA-4, an individual must complete 28 hours of CE during the calendar year, including at least 12 hours of ACE. An individual must complete an approved ethics training course once every three years. Ethics training and ACE must be approved by MRS and will count towards the annual CE hours requirement.

5. CAT certification renewal. For certification renewal as a CAT, an individual must complete 16 hours of CE during the calendar year. An individual must also complete an approved ethics training course once every three years. Ethics training must be approved by MRS and will count towards the annual CE hours requirement.

.04 Inactive/retired status

MRS may grant Certified Maine Assessor-Inactive/Retired (“CMA-I/R”) status to any CMA who is not actively performing the assessing function and who submits a written request for such status to MRS. While classified as CMA-I/R, an individual must not receive compensation to perform assessing functions.

While classified as CMA-I/R, an individual advertising or offering services based on his or her prior CMA, CMA-2, CMA-3, or CMA-4 certification must properly note his or her status as inactive or retired. An individual classified as CMA-I/R may request recertification at any time. Recertification requires a written request, completion of an approved ethics course, and twice the number of CE (including ACE) hours required for the associated certification level during the calendar year preceding the recertification request.

.05 Disciplinary action

MRS may, for cause, revoke any certificate issued under 36 M.R.S. §311 after a hearing and findings of fact. If MRS believes that there may be cause for revocation of a certificate, a revocation hearing will be scheduled. MRS will provide the certificate holder 30-days’ written notice of the time and place of the hearing and the reasons for the potential revocation. The hearing will provide an opportunity for the certificate holder to hear any evidence adverse to him or her and to present any evidence or argument. Following the hearing, MRS will determine whether there is cause for revocation of the certificate. Cause for revocation may include, but is not limited to, a determination that 1) a certificate holder’s conduct negatively affects that individual’s ability or fitness to perform the assessing function for a Maine municipality, or 2) a certificate holder’s continued service as an assessor is not in the public interest.

If, after a hearing, MRS determines that there is cause to revoke a certificate, MRS will issue a written order of revocation. The order will include findings of fact, notice to the certificate holder of the revocation, and appeal rights. The revocation will be effective as of the date the order is issued. A written order of revocation by MRS to revoke a certificate is a determination subject to reconsideration pursuant to 36 M.R.S. §151. In lieu of revocation, MRS may impose conditions on a certificate holder that he or she must meet to retain certification, including, but not limited to, additional training or a probationary period. An individual whose certification has been revoked may reapply for certification on terms required by MRS that may include passing the Exam after no less than one year from the date of revocation.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 310-314, 318
• EFFECTIVE DATE: November 20, 1983 – filing 83-325
• AMENDED: August 18, 1986 – filing 86-307
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: August 26, 2015 – filing 2015-154
• AMENDED: November 12, 2016 – filing 2016-188
• AMENDED: May 7, 2018 – filing 2018-072
• REPEALED AND REPLACED: April 13, 2021 – filing 2021-073

Chapter 207 Controlling Interest Transfers

Code Me. R. 18-125 Ch. 207 Controlling Interest Transfers {#sec-18-125-ch.-207 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 207}

SUMMARY: This rule explains Maine law on the application of the controlling interest transfer tax under 36 M.R.S., chapter 711-A.

Outline of Contents:

.01 General

.02 Definitions

.03 Controlling Interest Transfers

.04 Tax

.05 Filing and Payment

.06 Exemptions

.01 General

Maine imposes a tax on the non-exempt transfer or acquisition within a 12-month period of a direct or indirect controlling interest of an entity with a fee interest in Maine real property.

.02 Definitions

A. Adjusted assessed value. “Adjusted assessed value” means a property’s most recently locally assessed value divided by the applicable certified ratio of the municipality or unorganized territory where the property is located.

B. Assessed value. “Assessed value” means the property value established by the assessor, or MRS for property in the unorganized territory, for purposes of property taxation. Assessed value may be equal to, higher than, or lower than market value.

C. Certified ratio. “Certified ratio” means the level of assessed value, expressed as a percentage, relative to just value as certified by the assessor pursuant to 36 M.R.S. § 383. A certified ratio of 100% means that the just value of real estate in a municipality is, on average, equal to the assessed value of real estate in the municipality.

D. Consideration. “Consideration,” as defined in 36 M.R.S. § 4641(1), means the total price or amount paid, or required to be paid, for real property valued in money, whether received in money or otherwise and includes the amount of any mortgages, liens or encumbrances thereon, regardless of whether the underlying indebtedness is assumed by the grantee.

E. Controlling interest. “Controlling interest,” as defined in 36 M.R.S. § 4641(1-A), means the following:

1. In the case of a corporation, “controlling interest” means more than 50% of the total combined voting power of all classes of stock of the corporation entitled to vote or more than 50% of the capital, profits or beneficial interest in the voting stock of the corporation.

2. In the case of a partnership, association, trust or other entity, “controlling interest” means more than 50% of the capital, profits or beneficial interest in the partnership, association, trust or other entity.

F. Entity. “Entity” means an organization that has a legal identity that is separate from the individual members or owners of that organization. Examples of entities include, but are not limited to, partnerships, corporations, associations, and trusts.

G. Indirect controlling interest. “Indirect controlling interest” means the ultimate controlling interest in an entity through the direct controlling interest of an intermediary entity or entities.

H. Market value. “Market value” means the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller for a property, each acting without compulsion in an arm’s-length transaction.

I. Person. “Person,” as defined in 36 M.R.S. § 111(3), means an individual, firm, partnership, association, society, club, corporation, financial institution, estate, trust, business trust, receiver, assignee or any other group or combination acting as a unit, the State or Federal Government or any political subdivision or agency of either government.

J. Return. “Return” means the combined Controlling Interest Transfer Tax Declaration of Value (“CITTD”) form furnished by Maine Revenue Services (“MRS”).

K. Value. “Value,” as defined in 36 M.R.S. § 4641(3), means either (1) the amount of the actual consideration paid for the fee interest in the real property, or (2) the market value of the fee interest in real property when the entity has been transferred by gift or with nominal consideration or without stated consideration, or when the consideration for the real property cannot be determined. “Nominal consideration” means less than 20% of the property’s most recently locally assessed value as adjusted by the municipality’s or unorganized territory’s certified assessment ratio, unless the taxpayer provides an attestation from the local assessor that the most recent locally assessed value does not reflect market value.

“Value” does not include the amount of consideration attributable to vacation exchange rights, vacation services or club memberships or the costs associated with those rights, services or memberships. Upon request of a municipal assessor or the State Tax Assessor, a developer of a time-share estate, as defined under 33 M.R.S. § 591(7), or an association of time-share estate owners shall provide an itemized schedule of fees included in the sales price of a time-share estate.

.03 Controlling Interest Transfers

Generally. A controlling interest transfer occurs when a person, or a group of persons acting in concert, transfers or acquires more than a 50% interest in an entity that owns real property in Maine within a 12-month period. A controlling interest transfer occurs notwithstanding the absence of a deed conveying the real property.

Example 1. Within a 12-month period, Company A acquires a 75% interest in Company B from an unrelated individual. Company B owns real property in Maine at the time of transfer. A controlling interest transfer has occurred.

Example 2. Every month, Company A acquires a 10% interest in Company B from an unrelated individual. After 6 months, Company A has acquired a 60% interest in Company B. Company B owns real property in Maine at the time of transfer. A controlling interest transfer has occurred.

B. Persons acting in concert. Factors relevant in determining whether two or more persons are acting in concert include but are not limited to:

Common ownership. Persons are treated as acting in concert if they have a relationship with each other such that one person influences or controls the actions of another through common ownership.

Example 3. Company A is the parent corporation of wholly-owned subsidiary, Company B. Company A and Company B each purchase a 30% interest in Company C. Company A and Company B have collectively acquired 60% of Company C. Company A and Company B have acted in concert to acquire a controlling interest in Company C.

Unity. Persons are treated as acting in concert only if the unity with which the purchasers have negotiated and will consummate the transfer supports a finding that they are acting as a single entity.

Example 4. Partnership A, B, and C are neither commonly owned nor commonly controlled. Partnership A, B, and C each purchase a 20% interest in Company A as part of a collective negotiation to acquire a 60% controlling interest in Company A. Partnerships A, B, and C have acted in concert to acquire a controlling interest in Company A.

Example 5. Same facts as Example 4, except that Partnerships A, B, and C did not collectively negotiate to acquire a controlling interest in Company A. Each Partnership acquires an interest in Company A without regard to the identity or interests of the other purchasers. Partnerships A, B, and C have not acted in concert to acquire a controlling interest in Company A.

3. Other factors. Other factors to be considered in determining whether persons are acting in concert include, without limitation, the following:

a. The timing of the separate transfers or acquisitions of interests in an entity;

b. Contractual terms indicating unity;

c. Agreements between the purchasers that bind them to a course of action with respect to the transfer or acquisition;

d. The number of purchasers; and

e. The nature of relationships (e.g., close personal or family relationships).

All transfers within a 12-month period by persons acting in concert are aggregated for the purpose of determining whether a controlling interest transfer has taken place.

Example 6. Company A and Company B work in concert to acquire a controlling interest in Company C. Company A and Company B each acquire a 40% interest in Company C from an unrelated individual. Company A and Company B’s respective interests are aggregated for purposes of the controlling interest transfer tax. Company A and Company B have collectively acquired 80% of Company C.

.04 Tax

A. Tax imposed. The controlling interest transfer tax is imposed 50% on the transferor(s) and 50% on the transferee(s) of a controlling interest transfer. The controlling interest transfer tax is adjusted by the percentage of interest transferred.

Example 7. Within a 12-month period, Company A acquires a 75% interest in Company B from unrelated Individual A. Company B owns real property in Maine with a value of $500,000 at the time of the transfer. A controlling interest transfer has occurred. Company A owes tax on 75% of the value of the real property transferred.

Liability under the controlling interest transfer tax is imposed upon the transferer(s) and transferee(s) on the date that the transfer is consummated. In cases where a controlling interest transfer is consummated as the result of a series of separate transfers within a 12-month period, liability is imposed on date of the final transfer within the 12-month period.

B. Market value. If the controlling interest transfer tax is based on the market value of the real property, rather than the actual consideration paid, the reported value is subject to review by MRS. In determining whether the reported market value is reasonable, MRS may consider any or all of the following:

1. A recent appraisal of the transferred real property or properties;

2. An allocation of assets by the transferor(s) or the transferee(s) made pursuant to section 1060 of the Internal Revenue Code and reported to the Internal Revenue Service;

3. The adjusted assessed value of the transferred real property; and

4. Other evidence that the transferor(s) or transferee(s) may present, or that MRS may request, to prove market value of the transferred real property.

.05 Filing and Payment

Controlling interest transfers must be reported to the register(s) of deeds in the county or counties in which the transferred real property is located within 30 days of the date of the controlling interest transfer.

Controlling interest transfers are reported on the CITTD. The CITTD must be completed and submitted to the register(s) of deeds in county or counties in which the transferred real property is located within 30 days of the date of the transfer. Payment of the tax is due to the applicable register(s) of deeds when a CITTD is filed.

Multiple transfers. In cases where a controlling interest transfer is consummated as the result of a series of separate transfers, the CITTD must be submitted within 30 days of the date that more than 50% of the entity is transferred. Any subsequent transfer of an interest in the same entity involving the same persons within 12 months requires an amended CITTD to be filed within 30 days.

Example 8. Beginning on January 1, Company A acquires a 10% interest in Company B from an unrelated individual each month, with the final transfer consummating on June 1. Company B owns real property in Maine. On June 1, Company A has acquired 60%, and thus a controlling interest, in Company B. Company A must submit a CITTD to the applicable register(s) of deeds within 30 days of the date that Company A acquired the 60% interest in Company B (June 1). Company A then acquires an additional 20% interest in Company B on November 1. Since this transfer occurred within 12 months of the earlier series of transfers, Company A must file an amended CITTD within 30 days of the November 1 transfer to reflect all the transfers consummated during the 12-month period.

The transferer(s) and transferee(s) of the final transfer must complete pro forma returns on behalf of any party to any other transaction contributing to the controlling interest transfer for which a CITTD have has not been filed.

B. Failure to file. If a controlling interest transfer is not reported to the applicable register(s) of deeds and the tax is not paid within 30 days of the controlling interest transfer, the transferer(s) and transferee(s) are jointly and severally liable for the full amount due, plus applicable interest and penalties as provided under 36 M.R.S. ch. 7. Any party to a controlling interest transfer that has timely reported the transfer to the appropriate register(s) of deeds and timely paid that party’s respective share of the tax is not liable for the tax due from another party.

C. Payment to multiple counties. When a controlling interest in an entity that holds real property in Maine is transferred, and the real property owned by the entity is located in more than one county, the controlling interest transfer tax paid by the parties must be divided among the counties in the same proportion that the value of the real property is distributed among the different counties. Any dispute between counties as to the proper amount of controlling interest transfer tax due to each county will be decided by MRS on written petition from an official authorized to act on behalf of an aggrieved county.

.06 Exemptions

A controlling interest transfer is exempt from the controlling interest transfer tax if the transfer would have qualified for exemption had the transfer been consummated by deed. See 36 M.R.S. § 4641-C for the applicable exemptions. Any exemption from the controlling interest transfer tax must be claimed and identified on the applicable CITTD.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 4641(1-A)(C) and 4641-E
• EFFECTIVE DATE: September 21, 1987 - filing 87-330
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: January 12, 2003 - filing 2003-4
• AMENDED: January 16, 2007 – filing 2007-7
• AMENDED: January 7, 2008 – filing 2008-2
• REPEALED AND REPLACED: August 24, 2022 – filing 2022-153
• AMENDED: June 30, 2026 – filing 2026-132

Chapter 208 Guidelines for Professional Assessing Firms that Provide Revaluation Services to Municipalities

Code Me. R. 18-125 Ch. 208 Guidelines for Professional Assessing Firms That Provide Revaluation Services to Municipalities {#sec-18-125-ch.-208 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 208}

SUMMARY: This rule explains the requirements for professional assessing firms that provide revaluation services to municipalities in Maine.

Outline of Contents:

.01 Definitions

.02 Requirements

.03 Failure to meet requirements

.04 Revaluation by municipality

.01 Definitions

A. Assessor. “Assessor” means a sworn municipal assessing authority, whether an individual assessor, a board of assessors, or a chief assessor of a primary assessing area. With respect to the unorganized territory, “assessor” means the State Tax Assessor.

B. Municipality. “Municipality” means any city, town, plantation, or that portion of a county in the unorganized territory.

C. Professional assessing firm. “Professional assessing firm” or “firm” means a person (an individual, a group of individuals, or any other entity) that contracts to provide revaluation services for one or more municipalities in Maine. For purposes of this rule, a “professional assessor,” as defined in 36 M.R.S. §306(5), is not considered a “professional assessing firm” or “firm” except when providing revaluation services for a municipality that does not regularly employ the professional assessor.

D. Revaluation services. “Revaluation services” means the development of new assessed values within a municipality through the creation of new land or building pricing schedules, reflective of market value on April 1 of the year in which the revaluation is implemented. “Revaluation services” includes both (1) a full revaluation, where new assessed values for all property in the municipality, including all taxable property and any exempt property subject to reimbursement by the State, are established and (2) a partial revaluation, where smaller changes such as updates to grading and pricing schedules or updates to assessed values for one or more types of property in the municipality are established. “Revaluation services” does not include factoring, i.e., adjusting the existing values by a specific percentage.

.02 Requirements

A. Each firm must employ at least one individual with a Certified Maine Assessor (“CMA”) certification as described in Maine Revenue Services (“MRS”) Rule 205 (18-125 C.M.R., Ch. 205).

B. A firm must notify MRS of the intent to conduct a full revaluation of all property within a municipality before that revaluation begins. In addition, the firm must meet with the assessor of the municipality for which the revaluation services are to be performed before beginning the revaluation and must provide the assessor with the following:

1. Samples of grading and pricing schedules, including land pricing formulas, used for the revaluation and may be needed for a future revaluation;

2. An explanation of the usage of the grading and pricing schedules referred to in paragraph 1 of this subsection;

3. A written description of the personal property pricing methods the firm will use, if applicable, including depreciation schedules and a written description of the inventory and valuation format that the firm will present to the municipality once the revaluation is complete; and

4. An estimated timeline and cost for the revaluation services.

C. Each firm must file with MRS by April 1 of each year a resume for the firm that includes the names and qualifications of people regularly employed by the firm and a list of the municipalities where the firm has provided revaluation services within the five previous years.

D. A firm, while engaged in performing revaluation services in Maine, must allow periodic visits from MRS as requested to determine the scope of work being performed. MRS may schedule field visits to, among other things, observe measuring and listing, and visits to the firm’s office or place of business to observe data analysis.

E. Upon completion of a revaluation, a firm must present the municipality with documentation that the municipality can use to follow through with implementation of the revaluation and to make any future value adjustments. This documentation includes, but is not limited to:

1. A complete set of property record cards, either printed or electronic, detailing the construction for each building, for all property within the scope of the revaluation; and

2. All grading and pricing schedules used and documentation of any methods and procedures associated with the revaluation.

.03 Failure to meet requirements

A. MRS maintains a list of all firms providing revaluation services for municipalities in the State of Maine. This list is posted to the MRS Property Tax Division website. If a firm fails to comply with this rule, MRS reserves the right to remove that firm from the list. MRS will notify any firm if removal from the list is intended.

B. When MRS removes a firm from the list referred to in subsection A of this section, MRS will notify the firm by mail, explaining the reason for removal. A firm removed from the list by MRS may appeal that determination subject to the provisions of 36 M.R.S. §151. A firm that has been removed from the list may later request to be added back to the list at any time by providing evidence of compliance with this rule.

.04 Revaluation by municipality

If a municipality conducts its own revaluation and uses a grading and pricing schedule different from what was used in that municipality’s prior revaluation, the municipality must provide MRS with a copy of the new grading and pricing schedule upon request.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 328, 330, 331
• EFFECTIVE DATE: October 21, 1987 – filing 87-372 (titled “Revaluation Guidelines”)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: March 24, 2015 – filing 2015-048
• AMENDED: REPEALED AND REPLACED
• AMENDED: August 24, 2022 – filing 2022-154 (titled “Guidelines for Professional Assessing Firms that Provide Revaluation Services to Municipalities”)

Chapter 210 Telecommunications Excise Tax

Code Me. R. 18-125 Ch. 210 Telecommunications Excise Tax {#sec-18-125-ch.-210 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 210}

SUMMARY: This rule provides an overview of the excise tax levied on telecommunications businesses pursuant to 36 M.R.S. §457.

Outline of Contents:

.01 General

.02 Definitions

.03 Valuation

.04 Tax and interest

.05 Filing and payment

.06 Appeals

.01 General

Maine imposes an excise tax on all qualified telecommunications equipment located in the State. The excise tax rate is equal to the mill rate of the municipality where the equipment is located. Maine Revenue Services (“MRS”) is responsible for assessing the tax on qualified telecommunications equipment owned or leased by a telecommunications business. Qualified telecommunications equipment owned or leased by a person who is not a telecommunications business must be assessed a tax by the assessor of the municipality in which the equipment is located. Any property subject to the telecommunications excise tax is exempt from municipal property tax.

.02 Definitions

A. Certified ratio. “Certified ratio” means the level of municipal assessed value, expressed as a percentage, relative to just value as certified by the assessor pursuant to 36 M.R.S. §383.

B. Distribution facilities. “Distribution facilities,” as defined in 36 M.R.S. §457(1)(C), means facilities used primarily to transport communications between fixed locations, including but not limited to cables, wires, wireless transmitters and utility poles.

C. Interactive 2-way communication services. “Interactive 2-way communication services” means services that allow transmission of voice, image, data, and information between or among two or more persons via a medium such as wires, cables, microwaves, radio waves, light waves, or any combination of those, or via some other similar media.

D. Just value. “Just value” means market value, i.e., the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller for a property, each acting without compulsion in an arm’s-length transaction.

E. Mill rate. “Mill rate” means the calculated tax rate per $1,000 of assessed value for a municipality, based on the taxable value of property in the municipality and the portion of the municipal, school, and county budgets, including any adjustments, that the municipality must collect from property taxes.

F. Municipality. “Municipality” means any city, town, plantation, or that portion of a county in the unorganized territory.

G. Qualified telecommunications equipment. “Qualified telecommunications equipment,” as defined in 36 M.R.S. §457(1)(B), means equipment used for the transmission of interactive 2-way communications. “Qualified telecommunications equipment” includes equipment used to provide telegraph service and any interest of a telecommunications business in poles. “Qualified telecommunications equipment” does not include equipment used solely to provide value-added nonvoice services in which computer processing applications are used to act on the form, content, code, and protocol of the information to be transmitted, unless those services are provided under a tariff approved by the Public Utilities Commission. “Qualified telecommunications equipment” does not include cellular or landline telephones.

H. Telecommunications business. “Telecommunications business,” as defined in 36 M.R.S. §457(1)(A), means a person engaged in the activity of providing interactive 2-way communication services for compensation.

.03 Valuation

MRS will determine the just value of all property owned or leased by a telecommunications business that is subject to the telecommunications excise tax. In determining just value, MRS will consider the three standard approaches to property valuation—the cost approach, the market approach, and the income approach—as appropriate.

In determining just value, MRS will apply the following considerations:

A. Fluctuations in the number of customers a telecommunications business has will not necessarily affect the value of that business taxable property.

B. Value is determined by the overall market, not individual persons operating within that market.

C. A telecommunications business must identify the municipality or municipalities in which its qualified telecommunications equipment is located. Where distribution facilities are located in multiple municipalities, their value may be apportioned among municipalities based on the length of lines or cables within each municipality, or based on the percentage of the just value of distribution facilities located within a particular municipality. A telecommunications business may use a different method for apportioning its qualified telecommunications equipment with the approval of MRS.

.04 Tax and interest

A. Tax. The tax rate on qualified telecommunications equipment equals the mill rate for the municipality where the equipment is located. The rate is applied to the product of the just value of the qualified telecommunications equipment in the municipality multiplied by the municipality’s certified ratio as reported to MRS on the most recently filed Municipal Valuation Return. Although the municipal mill rate and certified ratio are used to calculate the tax, the excise tax on qualified telecommunications equipment owned or leased by a telecommunications business is assessed by MRS and paid to the State rather than the municipality.

B. Interest. Interest applies to late payments of telecommunications excise tax. The rate of interest is calculated pursuant to 36 M.R.S. §186, and is charged from the date the payment is due until the tax is paid, compounding monthly.

.05 Filing and payment

Each telecommunications business must file an annual return by December 31 detailing its taxable property in the State, including the original and depreciated cost, the location of the property, and any other information required by MRS. For purposes of depreciation, the asset class lives set forth in IRS Publication 946 are generally used, but MRS may in appropriate circumstances modify those class lives to arrive at just value.

The annual return due December 31 is based on the status of the taxable property as of April 1 of that same year. MRS will mail assessments of telecommunications excise tax to telecommunications businesses by March 30 of the year following the due date of the return. Payment of the tax is due by August 15 following the March 30 assessment date.

.06 Appeals

A taxpayer who receives an assessment of telecommunications excise tax may appeal that assessment by requesting reconsideration pursuant to 36 M.R.S. §151. The taxpayer must submit their request for reconsideration in writing within 60 days of receipt of notice of the assessment. The request should include a detailed description of why the taxpayer believes the assessment is incorrect, along with any supporting documentation.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 305, 457
• EFFECTIVE DATE: February 13, 2022 – filing 2022-017

Chapter 211 Deferred Collection of Homestead Property Taxes

Code Me. R. 18-125 Ch. 211 Deferred Collection of Homestead Property Taxes {#sec-18-125-ch.-211 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 211}

SUMMARY: The Deferred Collection of Homestead Property Taxes Program, 36 M.R.S. §§ 6250-6266, (the “Deferral Program”) allows seniors and disabled resident homeowners to defer property tax on their primary residence if they meet certain criteria. This rule explains the disability qualification portion of the Deferral Program.

Outline of Contents:

.01 Definitions

.02 Disability Documentation

.01 Definitions

Disability. “Disability,” as defined in 36 M.R.S. §6250(2-A), means a permanent and total impairment or condition that prevents an individual from being employed as determined by an agency of this State or of the Federal Government or pursuant to routine technical rules adopted by the State Tax Assessor.

Physician. “Physician” means an individual authorized by law to practice medicine or osteopathic medicine within this State or any other state.

.02 Disability Documentation

Among other criteria, to qualify for the Deferral Program an individual must be either 65 years old or older or unable to be employed by reason of disability, within the meaning of subsection .01(A) above, as of April 1 of the year the claim is filed. An individual who is not 65 years or older must document that they are unable to be employed by reason of disability, within the meaning of subsection .01(A) above, as follows:

A. For a veteran, the individual must provide a copy of a letter or other documentation from the United States Department of Veterans Affairs (“VA”) stating that the individual is totally and permanently disabled or is receiving compensation from the VA for disability based on a 100% disability rating or at the 100% disability level; or

B. For all other individuals, including veterans without a disability designation by the VA as provided in subsection .02(A) above, the individual must provide both a letter from a physician stating the individual has a total and permanent impairment or condition and a copy of a benefits letter or other documentation stating that the individual is disabled issued by:

1. The United States Social Security Administration;

2. The Workers’ Compensation Board of this State or a similar board or agency of another state;

3. The United States Department of Labor, Office of Workers’ Compensation Programs; or

4. Any other State of Maine or federal board or agency, at the discretion of the State Tax Assessor.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 305, 6250
• EFFECTIVE DATE: May 9, 2022 – filing 2022-075 (Emergency)
• AMENDED: August 24, 2022 -filing 2022-155

Chapter 301 Sales for Resale and Sales of Packaging Materials

Code Me. R. 18-125 Ch. 301 Sales for Resale and Sales of Packaging Materials {#sec-18-125-ch.-301 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 301}

MAINE REVENUE SERVICES

SALES, FUEL AND SPECIAL TAX DIVISION

RULE NO. 301

SALES FOR RESALE AND SALES OF PACKAGING MATERIALS

SUMMARY: Establishes procedures for making sales for resale, including leases or rentals and certain sales to service providers, and sales of packaging materials without collecting sales tax, and sets forth requirements for certification of such sales.

SECTION 1. Definitions

1. “Active registered retailer” means a person that is registered with the State Tax Assessor as a retailer and that has been issued a currently valid resale certificate as provided in 36 M.R.S. § 1754-B.

2. “Gross sales” means the total amount of all sales of goods and services, whether or not subject to tax, including sales for resale and all exempt sales. It does not include sales tax charged to customers or the value of returned merchandise for which a full credit or refund was given to the customer.

3. “Lessor,” which has the same meaning as in 36 M.R.S. § 1752(5-E), means a person who leases or rents tangible personal property located in this State to another person.

4. “Nonresident retailer” means a person that is not registered with the State Tax Assessor as a retailer under 36 M.R.S. §§ 1754-B or 1756 or required to register as a retailer by 36 M.R.S. § 1754-B, and that is authorized in another state or country to make retail sales of tangible personal property in that state or country.

5. “Registered retailer” means a retailer that is registered with the State Tax Assessor as a retailer under 36 M.R.S. §§ 1754-B or 1756 but has not been issued a currently valid resale certificate.

6. “Resale certificate” means a resale certificate issued by the State Tax Assessor pursuant to 36 M.R.S. § 1754-B(2-B) or a resale certificate issued by the State Tax Assessor pursuant to 36 M.R.S. § 1754-B(2-C).

7. “Retailer,” which has the same meaning as in 36 M.R.S. § 1752(10), means a person who makes retail sales or who is required to register by 36 M.R.S. § 1754-B or who is registered under 36 M.R.S. § 1756. “Retailer” includes a lessor.

8. “Selling retailer” means a retailer that is the seller with respect to a particular transaction.

SECTION 2. Relief from Liability

1. A selling retailer that follows the procedures set forth in this Rule when making sales for resale, sales for subsequent lease or rental, and certain sales to service providers as set forth below, or sales of packaging materials, is relieved of responsibility for collecting or paying any tax otherwise applicable if the State Tax Assessor subsequently determines the purchaser engaged in unauthorized use of a resale certificate at the time of the transactions. This relief from liability does not apply to a selling retailer that fraudulently fails to collect the tax or that solicits purchasers to participate in the unlawful misuse of their resale certificate.

2. A purchaser whose sales and use tax registration certificate has been revoked or whose registration status has been inactivated or canceled by the State Tax Assessor is prohibited from making tax-free purchases for resale. However, a selling retailer that accepts a resale certificate that appears valid on its face will not be liable for tax on a transaction if the State Tax Assessor later determines that the purchaser was not an active registered retailer at the time of the transaction. This relief from liability does not apply to a selling retailer that fraudulently fails to collect the tax or solicits purchasers to participate in the unlawful misuse of their resale certificate.

SECTION 3. Sales to Active Registered Retailers

1. Selling retailers that make sales to an active registered retailer for resale need not collect the tax imposed by 36 M.R.S. § 1811 when the sale is excluded from sales tax under 36 M.R.S. § 1752(11)(B) or this Rule. The selling retailer is liable for any applicable sales tax due on a sale for resale that is not excluded from sales tax under 36 M.R.S. § 1752(11)(B) and this Rule, whether or not the selling retailer has collected the tax from the purchaser.

2. Selling retailers that make sales to an active registered retailer for resale need not collect sales tax when all the following conditions are met:

A. The purchaser specifically states in the order, whether written or oral, that the property or service is purchased for resale;

B. The property or service purchased is of the type or types ordinarily purchased for resale by that purchaser, identified as such on the resale certificate issued to the purchaser by the State Tax Assessor;

C. The selling retailer obtains, or has on file, a copy of the purchaser’s resale certificate valid on the date of the sale; and

D. The copy of the resale certificate in the selling retailer’s records is signed by the purchaser or the purchaser’s authorized representative.

3. If the selling retailer fails to obtain a copy of a currently valid resale certificate from the purchaser prior to the sale, the selling retailer bears the burden of proving that the sale was in fact a nontaxable sale for resale. If the sale was made to a person who was an active registered retailer at the time of the sale and the property purchased was of the type or types ordinarily purchased for resale by that purchaser, the presumption that the sale was a taxable retail sale can be overcome during an audit or upon reconsideration.

4. Invoices of sales for resale must be appropriately marked or stamped to indicate that they are not taxable. The words “No Maine sales tax due, for resale” will satisfy this requirement.

SECTION 4. Sales to Retailers Without Active Resale Certificates

1. Registered retailers reporting annual gross sales less than $3,000 will not be issued a resale certificate and will therefore be required to pay Maine sales tax when they purchase items for resale. These retailers may claim a credit on their sales and use tax return for the tax they paid on items that are placed in inventory for resale, subject to the limitations provided in 36 M.R.S. § 1811-B.

2. An active registered retailer does not have the option of paying tax to its suppliers and claiming a credit on its sales and use tax return for the tax paid when purchasing items for resale that are of the type or types ordinarily purchased for resale by that purchaser.

3. If a retailer does not qualify to receive a resale certificate at the time of registration, or reissuance of a resale certificate, but subsequently has annual gross sales of $3,000 or more, the retailer may request that the State Tax Assessor review its eligibility for a resale certificate.

SECTION 5. Sales to Nonresident Retailers

1. Selling retailers that make sales to a nonresident retailer for resale need not collect sales tax when the sale is excluded from sales tax under 36 M.R.S. § 1752(11)(B) and is made in compliance with this Rule. The selling retailer is liable for any applicable sales tax due on a sale that is not made in compliance with this Rule, whether or not the selling retailer has collected the tax from the purchaser. The selling retailer should obtain a statement from the nonresident retailer that includes all of the following information:

A. The nonresident retailer’s name and address;

B. A declaration that the property or service is being purchased for resale outside the State and for no other purpose;

C. Evidence that the nonresident retailer is engaged in making retail sales of tangible personal property or taxable services in the form of the type purchased for resale, such as a sales tax registration certificate or equivalent document issued by the nonresident retailer’s home state or country, and evidence that the purchaser is engaged in a line of business consistent with the resale, at retail sale in the same form of tangible personal property or taxable services, of the items purchased.

D. An affirmation, made under penalties of perjury, that the information provided in the statement is true and correct as to every material matter; and

E. The signature of the purchaser executing the statement.

2. The Uniform Sales and Use Tax Certificate – Multijurisdiction developed by the Multistate Tax Commission may be used for this purpose.

SECTION 6. Sales to Service Providers Registered Under the Service Provider Tax

Selling retailers that make sales that are excluded from sales tax under 36 M.R.S. §§ 1752(11)(B)(4), (6) and (7) need not collect sales tax if the sales are made in substantially the same manner as sales for resale, as set forth in Section 3 above, to a person registered under the service provider tax (36 M.R.S. § 2553), and the selling retailer obtains or has on file, for an active registered retailer, the resale certificate issued to the purchaser by the State Tax Assessor, valid at the time of the sale or, for a person other than an active registered retailer, a signed statement from the purchaser in a form prescribed by the State Tax Assessor.

SECTION 7. Sales of Packaging Materials

Selling retailers that make sales of containers, boxes, crates, bags, cores, twines, tapes, bindings, wrappings, labels, and other packing, packaging and shipping materials that are exempt from sales tax under 36 M.R.S. § 1760(12-A) need not collect sales tax if the sales are made in substantially the same manner as sales for resale, as set forth in Section 3 above, and the selling retailer obtains from the purchaser at the time of the sale a completed Exemption Certificate for Packaging Materials (Form ST-A-120).

SECTION 8. Intentional Evasion of Tax

A person who intentionally attempts in any manner to evade or defeat any tax imposed by Title 36 or the payment of the assessed tax, in addition to any other penalties provided by law, commits a crime under 36 M.R.S. § 184-A.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: June 1, 1951
• AMENDED: September 1, 1951
• AMENDED: August 8, 1953
• AMENDED: September 1, 1955
• REPEALED AND REPLACED: December 31, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: September 25, 2004 - filing 2004-413
• AMENDED: January 29, 2007 – filing 2007-27
• AMENDED: October 19, 2016 – filing 2016-176
• AMENDED: March 15, 2021 – filing 2021-061
• AMENDED: February 25, 2025 – filing 2025-035

Chapter 302 Sales to Governmental Agencies and Exempt Organizations

Code Me. R. 18-125 Ch. 302 Sales to Governmental Agencies and Exempt Organizations {#sec-18-125-ch.-302 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 302}

SUMMARY: Establishes administrative rules regarding tax-exempt sales and explains the circumstances under which a retailer or service provider will be relieved of its burden of proving that sales to an entity described in 36 M.R.S. §§ 1760 or 2557, including an agency or instrumentality of the federal government or of the State of Maine, are exempt from Maine sales, use, or service provider tax.

SECTION 1. Exempt sales generally; burden of proof

1. Sales and Use Tax. Sales to certain organizations and governmental agencies are exempt from sales and use tax pursuant to 36 M.R.S. §1760. Pursuant to 36 M.R.S. §1760-C, an exemption provided by 36 M.R.S. §1760 to a person based upon its charitable, nonprofit, or other public purposes applies only if the property or service purchased is intended to be used by the person primarily in the activity identified by the particular exemption. The burden of proving a sale is to an organization that is exempt under 36 M.R.S. §1760 is on the person making the sale. The retailer is relieved of this burden of proof if it satisfies the provisions of this rule.

2. Service Provider Tax. Sales to certain organizations and governmental agencies are exempt from service provider tax pursuant to 36 M.R.S. §2557. Pursuant to 36 M.R.S. §2560, an exemption provided by 36 M.R.S. §2557 to a person based upon its charitable, nonprofit, or other public purposes applies only if the service purchased is intended to be used by the person primarily in the activity identified by the particular exemption. The burden of proving a sale is to an organization that is exempt under 36 M.R.S. §2557 is on the person making the sale. The service provider is relieved of this burden of proof if it satisfies the provisions of this rule.

SECTION 2. Exemption and resale certificates

A non-governmental entity must hold an exemption certificate or resale certificate issued by Maine Revenue Services in order to make tax-free purchases. If the State Tax Assessor determines that an applicant qualifies to make tax-free purchases, the State Tax Assessor shall issue a numbered certificate that identifies the name and address of the applicant, the tax or taxes from which it is exempt or not subject to, and the relevant exempt activity or activities. The certificate may be used by the holder only when purchasing property or services intended to be used by the holder primarily in the exempt activity or activities. When an otherwise qualifying organization is engaged in both exempt and nonexempt activities, the exemption certificate is to be issued only if the State Tax Assessor finds that the organization has adequate internal controls in place to limit the use of the certificate to exempt purchases. A decision by the State Tax Assessor to deny an application for issuance of an exemption certificate constitutes a determination of the State Tax Assessor that is subject to a petition for reconsideration pursuant to 36 M.R.S. §151.

SECTION 3. Review and revocation of exempt status

The State Tax Assessor has the authority to review an organization’s activities and confirm whether an organization continues to meet the qualifications for exempt status. The State Tax Assessor may also review an organization’s activities and confirm whether an organization is properly using an exemption certificate. After providing written notice to an organization, the State Tax Assessor may revoke the exempt status of the organization for any of the following reasons:

A. The organization was incorrectly certified for exempt status;

B. The organization on longer meets the qualifications for exempt status;

C. The organization fails to provide sufficient documentation, upon written request by the State Tax Assessor, demonstrating that the organization meets the qualifications for exempt status; or

D. The organization has not used its exemption certificate in accordance with Title 36 and this Rule.

A decision by the State Tax Assessor to revoke an organization’s exempt status constitutes a determination of the State Tax Assessor that is subject to a petition for reconsideration pursuant to 36 M.R.S. §151.

SECTION 4. Responsibilities of retailers and service providers – Sales to exempt organizations

Sales tax must be collected by the retailer, or paid by the service provider, on sales to entities that have not provided an exemption certificate to the retailer or service provider, and on sales of tangible personal property or services that are not related to the activity identified on the certificate issued to the entity. Retailers and service providers must maintain in their files a copy of the exemption certificate issued to any exempt organization to which they make a tax-exempt sale. Separate invoices of all tax-exempt sales must be retained by the retailer or service provider and appropriately marked. The words “Maine Sales Tax Exempt” or “Maine Service Provider Tax Exempt,” together with a notation of the applicable exemption number, will satisfy this requirement.

Regardless of the specific method of payment, a retailer or service provider is not relieved of its burden of proving that a sale is exempt if it has, at the time of the sale, knowledge of facts that give rise to a reasonable inference that the purchaser is not the holder of the exemption certificate, that the exemption certificate has been revoked or is otherwise invalid as of the time of the sale, or that the tangible personal property or service is not to be used exclusively by the exempt organization primarily in the activity identified on the exemption certificate.

1. Direct billing. Sales that are billed directly to an exempt organization may be made tax-free without a purchase order or other documentation beyond that required by this rule.

2. Cash, personal check or personal bank card. Purchases paid for with cash, personal check, personal credit card, or personal debit card may not be made tax-free unless the purchaser presents a purchase order issued by the exempt organization that identifies the specific item or items, or the specific services, to be purchased. The retailer or service provider must retain the purchase order (or a copy) in its records.

Notwithstanding the previous paragraph, sales made to authorized employees or representatives on behalf of exempt organizations that are paid for with cash, personal check, personal credit card, or personal debit card may be made tax-free if a magnetic customer card issued by the retailer or service provider to the exempt organization and identifying the organization as tax-exempt is presented at the time of the sale by the authorized individual making the purchase and is recorded electronically by the retailer or service provider. The retailer or service provider must retain the digital information identifying the transaction and the purchaser. The customer card must:

A. Bear the name and signature of the specific individual authorized by the exempt organization to use it to make purchases; and

B. Contain a statement substantially similar to the following: “This card is to be used only by the individual named hereon for purchases authorized by [NAME OF EXEMPT ORGANIZATION]. If this card is used by the individual named hereon for any other purpose, the individual may be held liable for any applicable taxes, together with associated interest and penalties, and, if used to intentionally evade Maine tax due, may also be subject to criminal prosecution.”

3. Other credit or debit cards. Purchases paid for with a credit card or debit card that is issued to a tax-exempt organization and that has the name of the organization on the face of the card may be made tax-free only if the retailer or service provider retains documentation that identifies the exempt organization, the sale transaction date, the sale price, the items or services purchased and the last four digits of the credit or debit card number.

SECTION 5. Responsibilities of retailers and service providers – Government sales

Sales made directly to the federal government or the State of Maine or any of its political subdivisions are exempt from sales tax and service provider tax. Sales made directly to any unincorporated agency or instrumentality of either the federal government or the State of Maine, or to any of their wholly-owned incorporated agencies or instrumentalities, are also exempt. This category includes school districts; water, power, parking, sewer and other districts in Maine established by legislative act as quasi-municipal corporations; village corporations; the University of Maine and Maine Community College Systems; and the Maine Turnpike Authority. Governmental subdivisions, units, agencies and instrumentalities covered by 36 M.R.S. §§ 1760(2) and 2557(2) are referred to in this rule as “governmental agencies.”

Governmental agencies are not required to obtain a tax exemption certificate. A retailer or service provider must document all tax-free sales to governmental agencies by listing the name of the governmental agency on the invoice or sales slip.

Regardless of the specific method of payment, a retailer or service provider is not relieved of its burden of proving that a sale to a governmental agency is exempt if it has, at the time of the sale, knowledge of facts that give rise to a reasonable inference that the card is being used to make a personal purchase that is not tax-exempt or for any other purpose other than an official governmental purpose.

1. Direct billing. Sales that are billed directly to a governmental agency may be made tax-free without a purchase order or other documentation beyond that required by this rule.

2. Cash, personal check, or personal bank card. Purchases paid for with cash, personal check, personal credit card, or personal debit card may not be made tax-free unless the individual making the purchase presents a purchase order issued by the governmental agency that identifies the specific item or items, or the specific service, to be purchased. The retailer or service provider must retain the purchase order (or a copy) in its records and must identify the sale transaction on that document.

Notwithstanding the previous paragraph, sales made to authorized employees or representatives on behalf of governmental agencies that are paid for with cash, personal check, personal credit card, or personal debit card may be made tax-free if a magnetic customer card issued by the retailer or service provider to the governmental agency is presented at the time of the sale by the authorized individual making the purchase and is recorded electronically by the retailer or service provider. The retailer or service provider must retain the digital information identifying the transaction and the purchaser. The customer card must:

A. Bear the name and signature of the specific individual authorized by the governmental agency to use it to make purchases; and

B. Contain a statement substantially similar to the following: “This card is to be used only by the individual named hereon for purchases authorized by [NAME OF GOVERNMENTAL AGENCY]. If this card is used by the individual named hereon for any other purpose, the individual may be held liable for any applicable taxes, together with associated interest and penalties, and, if used to intentionally evade Maine tax due, may also be subject to criminal prosecution.”

3. Other credit or debit cards. Purchases paid for with a credit card or debit card of the type described in paragraphs A and B below may be made tax-free only if the retailer or service provider retains documentation that identifies the governmental agency, the sale transaction date, the sale price, items or services purchased, and the last four digits of the credit or debit card number.

A. State of Maine. State of Maine Procurement Cards that are billed directly to the State of Maine.

B. United States Government. Cards issued to federal employees pursuant to the GSA SmartPay program and billed directly to the U.S. Government.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: June 1, 1951
• AMENDED: September 1, 1951
• AMENDED: August 8, 1953
• AMENDED: August 28, 1957
• AMENDED: July 1, 1961
• AMENDED: October 7. 1967
• AMENDED: September 1, 1969
• AMENDED: December 24, 1969
• AMENDED: September 23, 1971
• AMENDED: June 9, 1972
• AMENDED: October 24, 1977
• REPEALED AND REPLACED: December 31, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: January 9, 2007 – filing 2007-6
• REPEALED AND REPLACED: June 13, 2010- filing 2010-220
• AMENDED: August 19, 2019 – filing 2019-148
• AMENDED: March 15, 2021- filing 2021-062
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 303 ) Sales to Industrial Users

Code Me. R. 18-125 Ch. 303 Sales to Industrial Users {#sec-18-125-ch.-303 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 303}

SUMMARY: Explains the Sales and Use Tax Law as it pertains to the exemption provisions of machinery and equipment used in production, and consumed or destroyed items.

SECTION 1. Definitions

1. Production. “Production” as used in Sec. 1752(9-B) commences with the movement of raw materials to the first production machine after their receipt and storage at the production site (after receipt if the raw materials are not stored) and ends with the completion of the finished product. Production includes any “in-line” packaging operation. The acquisition of raw materials, the transportation of raw materials or goods in process between production sites, and administrative and distributive operations do not constitute production.

2 . Foundations. "Foundations" as used in §1752(7-B), includes permanent supports, such as those composed of concrete. Metal supports that can be dismantled and moved are considered part of the machinery or equipment they support and are therefore exempt if the machinery or equipment itself is exempt.

3 . Directly. "Directly" as used in §1752(2-A) excludes support operations, such as machine shops in which production equipment is maintained. Testing for quality control is directly in production only insofar as those testing devices are physically incorporated in machinery or equipment that is otherwise exempt.

SECTION 2. Consumed or Destroyed Items

1. Exempt items. Tangible personal property that has a normal physical life expectancy of less than one year is exempt if it falls within one of the following categories:

A. Items that are integrated with and essential to the operation of exempt production machinery and equipment. Items under this category will normally include but not be limited to such items as abrasives, coolants, lubricants, filtering materials, etc.

B. Items that come in contact with, or are added to, the raw product during production, but that are later extracted or dissipated and do not become a component part of the tangible personal property produced. Items under this category will normally include but not be limited to such items as catalysts, chemicals, solvents, liquids, etc.

C. Items that come into contact with the products produced and that are an integral and essential part of production. Items under this category will normally include but not be limited to abrasives, polishing agents, stencil materials, tagging materials, etc.

2. Taxable items. Tangible personal property that is consumed and destroyed is taxable if it falls within one of the following categories:

A. Items consumed or destroyed prior to the commencement of the production process or after production has ended as provided in §1752(9-B) of the law and Section 1(1) of this rule.

B. Items consumed or destroyed in the course of contact with machinery and equipment that is not "directly" in production as provided in §1752(2-A) of the law and Section 1(3) of this rule.

Items under this category will normally include but not be limited to the following:

(1) Cleaning supplies, including floor sweeping compounds, soaps, etc., regardless of where used;

(2) Steam used to heat buildings, including the production area;

(3) Personal apparel used by employees, including aprons, gloves, hair nets, ear plugs, face shields or masks, etc.;

(4) Light bulbs, flash lights and batteries, used for lighting;

(5) Chemicals or supplies of any kind used in quality control and research laboratories; and

(6) Supplies used in maintenance of production machinery and equipment, including abrasives, files, grinding oil, etc.

SECTION 3. Certification requirement.

Where the sale of tangible personal property is claimed to be non-taxable, the purchaser must provide the seller with a certificate in the form prescribed by the State Tax Assessor; and on the furnishing of such certificate the purchaser shall be held solely accountable for the payment to the State of any taxes, together with penalties and interest thereon, that may later be determined to be due on such purchases in accordance with the applicable provision of the law or this rule.

The certificate is considered a part of each order for the tangible personal property unless the purchaser advises the seller to the contrary at the time the order is placed, and remains in effect until revoked by the purchaser in writing.

History

• STATUTORY AUTHORITY: 36 M.R.S.A. §112
• EFFECTIVE DATE: June 1, 1951
• AMENDED: August 1, 1952
• REPEALED AND REPLACED: August 8, 1952
• AMENDED: September 1, 1955
• AMENDED: September 16, 1961
• REPEALED AND REPLACED: November 1, 1973
• AMENDED: June 24, 1974
• AMENDED: October 1, 1975
• AMENDED: March 11, 1976
• AMENDED: November 22, 1977
• REPEALED AND REPLACED: December 31, 1979
• AMENDED: January 1, 1984
• AMENDED: October 21, 1985
• AMENDED: August 5, 1987
• AMENDED: November 12, 1989
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: January 29, 2007 – filing 2007-28
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 304 Sales and Use Tax Returns and Payments

Code Me. R. 18-125 Ch. 304 Sales and Use Tax Returns and Payments {#sec-18-125-ch.-304 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 304}

SUMMARY: This rule establishes requirements for the filing of sales and use tax returns and the payment of taxes due pursuant to 36 M.R.S., Chapter 219.

SECTION 1. Definitions

As used in this rule, the term "retailer" has the same meaning ascribed to that term in 36 M.R.S. §1752(10).

SECTION 2. Sales and Use Tax Returns

A. Generally; monthly returns. Except as otherwise provided by this rule, every retailer must file monthly sales and use tax returns.

B. Due dates. The due date for filing a return and paying the tax is the fifteenth day of the month following the end of each reporting period.

C. Quarterly returns. Every retailer whose average sales and use tax liability is at least $100 per month but less than $600 per month must file four returns each year. The reporting periods are January through March; April through June; July through September; and October through December.

D. Semiannual returns. Every retailer whose average sales and use tax liability is less than $100 per month, but more than $50 per year must file two sales and use tax returns each year. The reporting periods are January through June and July through December.

E. Annual return. Every retailer whose average annual sales and use tax liability is less than $50 must file one return each year. The reporting period is the calendar year.

F. Exceptions; changes. The State Tax Assessor may temporarily require retailers to file using different or more frequent reporting periods in order to administer substantial changes in the tax law, such as rate changes. The assessor will periodically review the status of sales and use tax accounts and notify retailers whose filing frequency has been changed. In addition, retailers may request to file returns using different or more frequently reporting periods than this rule requires.

SECTION 3. Seasonal Filing

A retailer whose business is completely closed for one or more calendar months may, on a regular schedule each year, register as a seasonal filer, indicating the months during which the business is open. A retailer that is registered as a seasonal filer is not required to file a sales and use tax return for those reporting periods during which the retailer did not engage in business.

SECTION 4. Extension for Filing

Retailers may apply to the State Tax Assessor to extend the due date for filing sales and use tax returns by 30 days for good cause. An authorized extension remains in effect until revoked in writing by the assessor. The extension does not extend the time for paying the tax.

SECTION 5. Basis of Accounting

Retailers are required to file sales and use tax returns on an accrual basis, but a retailer that properly files its federal income tax returns on a cash basis may elect to file its sales and use tax returns on a cash basis.

SECTION 6. Supplemental Statement

Every retailer of motor vehicles, watercraft, aircraft, special mobile equipment, trailers, camper trailers, or truck campers must complete, in addition to the sales and use tax return, a supplemental statement reporting individually each sale of any of these kinds of property made during the reporting period. In addition, every person who rents or leases automobiles, camper trailers, or motor homes for a rental period of one year or more must complete a supplemental statement reporting individually each lease or rental. The supplemental statements are to be maintained in the retailer’s records in accordance with Maine Revenue Services Rule 103 and made available for inspection by the assessor upon audit or other request.

SECTION 7. Agents of Out-of-State Sellers

Every person required to register by 36 M.R.S. §1754-B(1-B)(C) or (D) must report all sales made by or through the person on behalf of the person's principal.

SECTION 8. Consolidated Filing

A retailer that makes sales at more than one place of business may apply to the State Tax Assessor for authorization to file a single consolidated return reporting the total amount of sales made at all of its locations. A consolidated return must include a schedule showing a breakdown of the taxable sales made at each location.

SECTION 9. Use Tax Returns

Every person not otherwise required to file sales and use tax returns and who regularly makes purchases for business use that are subject to Maine use tax must register with the State Tax Assessor to file use tax returns. Every person so registered must file a use tax return and pay the use tax for each month in which purchases subject to use tax were made. Use tax returns need not be filed for months during which no tax is due.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: June 1, 1951
• AMENDED: August 8, 1953
• AMENDED: September 1, 1955
• AMENDED: August 28, 1957
• AMENDED: September 1, 1959
• AMENDED: July 1, 1961
• AMENDED: January 1, 1967
• AMENDED: September 1, 1969
• AMENDED: September 1, 1973
• AMENDED: June 30, 1978
• REPLACED: December 31, 1979
• AMENDED: July 1, 1980
• AMENDED: November 12, 1989
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: July 28, 2002
• AMENDED: August 19, 2019 – filing 2019-149

Chapter 308 Direct Payment Permits

Code Me. R. 18-125 Ch. 308 Direct Payment Permits {#sec-18-125-ch.-308 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 308}

MAINE REVENUE SERVICES

SALES, FUEL, AND SPECIAL TAX DIVISION

RULE NO. 308

DIRECT PAYMENT PERMITS

SUMMARY: Establishes a system for combined reporting of purchases by manufacturers and utilities under a direct payment permit.

SECTION 1. Introduction

Many manufacturers and utilities routinely acquire large quantities of tangible personal property under circumstances in which it is not known, at the time of purchase, how the property will be used. It is impractical in these instances to determine whether the purchase or use of the property will be taxable or exempt. Holders of direct payment permits are authorized to purchase most items of tangible personal property without payment of the tax to their vendors, and such holders of direct payment permits instead report and pay tax directly to the State.

SECTION 2. General Requirements

The following requirements must be met by a taxpayer in order to be eligible to receive a direct payment permit:

1. A permit application must be submitted to the Bureau of Revenue Services (“the Bureau”) on a special form provided by the Bureau.

2. The applicant must hold a valid Maine Retailer Certificate.

3. The applicant must routinely purchase large quantities of tangible personal property under circumstances that make it impractical to determine, at the time of purchase, whether the purchase or use of the property will be taxable or exempt.

4. The applicant must establish to the satisfaction of the State Tax Assessor that its accounting methods will clearly reflect the proper amount of tax due and that payment of sales or use taxes to the State will not be jeopardized by permitting sales and use taxes to be reported directly.

5. The applicant must make purchases in sufficient volume to justify the expense of regular audits by the Bureau.

6. The applicant must be either a manufacturer or a utility.

SECTION 3. Manner in Which Direct Payment Permit is to be used by Taxpayer

Each holder of a direct payment permit must provide a copy of the permit to each of its vendors and ensure that the permit number is placed on all purchase orders or contracts covering the purchase of tangible personal property, in lieu of payment of tax to the vendor, except in those transactions excluded in Section 4 below. The holder of a direct payment permit shall not authorize a vendor to whom it has provided its direct payment permit to make use of the direct payment permit or provide the permit number to a third party.

SECTION 4. Exceptions, Restrictions

The permit holder shall pay sales tax to the vendor on the following types of purchases:

A. Purchases of prepared food;

B. Purchases of taxable services other than the transmission and distribution of electricity; and

C. Purchases of services taxable under Title 36, Chapter 358 (Service Provider Tax).

A permit holder may not authorize a contractor to use its direct payment permit for purchases of tangible personal property to be incorporated into real estate of the permit holder. Any such authorization constitutes grounds for revocation of the permit in accordance with Section 5, Subsection 2 of this Rule.

3. Contracts for the construction of real estate, the provisions of which require the incorporation of tangible personal property into the real estate of a permit holder prior to passage of title, shall not refer to a direct payment permit or permit number in any way that suggests that such tangible personal property purchased by the contractor may be purchased tax free under a direct payment permit. Unless otherwise addressed in a construction contract, the passage of title to the permit holder occurs upon incorporation of tangible personal property into real estate.

SECTION 5. Revocation of Direct Payment Permit

1. The holder of a direct payment permit that wishes to surrender such permit voluntarily must provide the State Tax Assessor with written notice of at least 30 days.

2. The State Tax Assessor may revoke a direct payment permit at any time for failure of the permit holder to comply with the general requirements under which the permit was granted, or for any improper use of the permit.

3. Within 10 days after receipt by a permit holder of notice of revocation by the State Tax Assessor or within 10 days after receipt of the Assessor’s permission for discontinuance of the direct payment permit by the permit holder, the permit holder must:

A. Give notice to each vendor with whom it had transacted business pursuant to the direct payment authority that it will no longer claim exemption from payment of tax by reason of a direct payment permit; and

B. Return the direct payment permit to the State Tax Assessor.

History

• STATUTORY AUTHORITY: 36 MRSA §112
• EFFECTIVE DATE: July 1, 1951
• AMENDED: February 15, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: January 29, 2007 – filing 2007-29
• AMENDED: October 19, 2016 – filing 2016-177
• AMENDED: February 15, 2025 – filing 2025-031
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 9, 2025

Chapter 318 Instrumentalities of Interstate or Foreign Commerce

Code Me. R. 18-125 Ch. 318 Instrumentalities of Interstate or Foreign Commerce {#sec-18-125-ch.-318 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 318}

SUMMARY: Explains the application of the exemption from Maine sales or use tax provided in 36 M.R.S. § 1760(41-A) for a vehicle, railroad rolling stock, aircraft, or watercraft placed in use by the purchaser as an instrumentality of interstate or foreign commerce within 30 days after purchase or, in the case of leased property, 30 days after the commencement of that lease, and used by the purchaser or lessee not less than 80% of the days in use for the next two years as an instrumentality of interstate or foreign commerce. Qualifying lessees of such property may claim the exemption on lease and rental payments occurring on and after January 1, 2025.

SECTION 1. Definitions

For purposes of this rule, the terms “bona fide payload” and “dispatch” have the same meanings ascribed to those terms in 36 M.R.S. § 1760(41-A). The terms “aircraft,” “lease or rental,” “lessor,” “vehicle,” and “watercraft” have the same meanings ascribed to those terms in 36 M.R.S. § 1752. Except as otherwise provided, the term “trailer” has the same meaning ascribed to that term in 36 M.R.S. § 1752.

SECTION 2. Qualifying and Non-qualifying Use

A. Generally. Property is placed in use as an instrumentality of interstate or foreign commerce (1) by its carrying of, or providing the motive power for the carrying of, a bona fide payload in interstate or foreign commerce; or (2) by being dispatched to a specific location at which it will be loaded with, or will be used as the motive power for the carrying of, a bona fide payload in interstate or foreign commerce.

B. Leased property. Personal property is not used as an instrumentality of interstate or foreign commerce by a lessor when the lessor leases that property to another person who in turn uses that property as an instrumentality of interstate or foreign commerce. A lessee that uses leased property as an instrumentality of interstate or foreign commerce may claim the exemption from sales tax on lease and rental payments occurring on and after January 1, 2025, in the same manner as a purchaser of property used as an instrumentality of interstate or foreign commerce.

C. Equipment interchange agreements. When a trailer, semitrailer, or tow dolly (as those terms are defined in 29-A M.R.S. § 101) is used by an authorized motor carrier in interstate or foreign commerce pursuant to, and is specifically described in, a written interchange agreement pursuant to 49 Code of Federal Regulations, Section 376.31, or successor regulation, between that carrier and the purchaser or lessee of the property, it is treated for purposes of 36 M.R.S. § 1760(41-A) as being used by the purchaser in interstate or foreign commerce. Use of property other than a trailer, semitrailer, or tow dolly pursuant to such an agreement does not qualify for such treatment.

D. Cargo originating and terminating in Maine; certain buses. Personal property is not used as an instrumentality of interstate or foreign commerce for the purposes of 36 M.R.S. § 1760(41-A) when it is carrying, providing the motive power for carrying, or being dispatched to carry only cargo that both originates and terminates within the State of Maine.

However, 36 M.R.S. § 1760(41-A) also provides an exemption for the sale of certain buses. Specifically, when the personal property in question is a bus with a seating capacity of at least 47 passengers that is engaged in transporting within the State a bona fide payload of travelers on an interstate or foreign cruise that originates outside the State and terminates outside the State and the transportation is provided pursuant to a contract between the interstate or foreign cruise provider and the person providing the transportation, the bus is considered to be used in interstate or foreign commerce for the purpose of 36 M.R.S. § 1760(41-A).

SECTION 3. Calculation of the 80% Use Test

A. Generally. The time period to which the 80% use test is applied begins on the date the property is placed into service and ends either two years from that date or on the date the property is sold, scrapped, destroyed, or otherwise removed from service, whichever occurs first. Property meets the requirements of 36 M.R.S. § 1760(41-A) when the number of days of qualifying use, divided by the total number of days of use (days of qualifying use plus days of non-qualifying use) is 80% or more. Disregarded days are not counted in the calculation of the 80% use test.

1. Disregarded days. Any full day during which the property in question is not being used in commerce (for example, any full day during which it is being stored, repaired, or maintained).

2. Days of qualifying use. Any full day or portion of a day from the date of dispatch of property for the carrying of, or providing the motive power for the carrying of, a bona fide payload in interstate or foreign commerce through the day the property returns to its principal place of business or the property is dispatched in connection with a new payload.

3. Days of non-qualifying use. Any full day that does not qualify as a disregarded day under Paragraph 1 or a day of qualifying use under Paragraph 2.

B. Examples.

Example 1: A trailer was dispatched by the purchaser to a location in Maine to be loaded with a bona fide payload. The trailer then sat idle at this location, waiting to be loaded, for 30 days, after which the payload was loaded and promptly delivered to an out of state location. These 30 days are counted as days of qualifying use when calculating the 80% use test.

Example 2: A trailer was dispatched by the purchaser to a location in Maine to be loaded with a bona fide payload. The trailer then sat idle at this location, waiting to be loaded, for 30 days, after which the payload was loaded and delivered to another location within this State. These 30 days are counted as days of non-qualifying use when calculating the 80% use test.

Example 3: On Day 1, a tractor and trailer were dispatched by the purchaser to pick up a bona fide payload in Maine and then carried that payload to Ohio. The tractor and trailer delivered the payload Ohio, then, the next day, began their return trip to Maine. On Day 7, while the tractor and trailer were en route to Maine, they were dispatched to pick up a bona fide payload in New Jersey and then transported it to Maine. On Day 10, the tractor and trailer delivered the payload loaded in New Jersey in Maine. On Day 11, the tractor and trailer returned to their principal place of business. All 11 days are counted as days of qualifying use when calculating the 80% use test.

Example 4: A tractor and trailer that carried a bona fide payload from another state stopped overnight at a rest stop in southern Maine. The next day, the tractor and trailer resumed the trip and delivered the cargo to its destination in Maine. Both days are counted as days of qualifying use when calculating the 80% use test.

Example 5: A trailer that carried a bona fide payload entered Maine from another state and arrived at its destination, where the trailer sat for 20 days waiting to be unloaded. The 20 days are counted as days of qualifying use when calculating the 80% use test.

Example 6: Tractor #1 and a trailer that carried a bona fide payload entered Maine from another state and arrived at a location where they sat for 10 days. On Day 11, the trailer was detached from Tractor #1 and hooked to Tractor #2 for final delivery in Maine, which occurred later that day. Days 1 through 11 are counted as days of qualifying use for the trailer when calculating the 80% use test. Days 1 through 10 are counted as days of qualifying use for Tractor #1. Day 11 is counted as a day of qualifying use for Tractor #2.

Example 7: On Day 1, the purchaser dispatched a tractor and trailer from Maine to New Jersey with a bona fide payload. On Day 3, the trailer was unloaded in New Jersey. On Day 4, the tractor and empty trailer left New Jersey to return to Maine. Upon the tractor and trailer’s returning to Maine on Day 5, the trailer returned to its principal place of business in Maine and immediately went to a maintenance facility for mechanical work that was finished at the end of Day 10. Days 1 through 5 are counted as days of qualifying use for both the tractor and the trailer when calculating the 80% use test. Days 6 through 10 are disregarded days for the trailer for purposes of the 80% use test.

C. Extension of time. Maine Revenue Services may, for good cause, extend by up to 60 days the time for placing a vehicle or other property in use as an instrumentality of interstate or foreign commerce. The purchaser need not apply to Maine Revenue Services for the extension, but any claimed good cause must be documented in the purchaser’s records. Good cause will not be found by Maine Revenue Services when the purchaser has been negligent or otherwise failed to make a good faith effort to place the property in use in interstate or foreign commerce within 30 days after the date of purchase or, in the case of leased property, within 30 days after the commencement of the lease.

SECTION 4. Repair Parts, Operating Supplies, and Accessories

The sales and use tax exemption in 36 M.R.S. § 1760(41-A) for instrumentalities of interstate or foreign commerce applies only to the purchase or lease of vehicles, railroad rolling stock, aircraft, and watercraft. The purchase of repair parts, operating supplies, and accessories are not exempt, regardless of whether they are purchased at the same time as the vehicle, railroad rolling stock, aircraft, and watercraft or purchased separately. Accessories purchased as part of a vehicle are exempt from sales or use tax if the vehicle qualifies for exemption under 36 M.R.S. § 1760(41-A). A so-called “glider kit” is considered a repair part, and its purchase is subject to tax whether or not the vehicle on which it will be mounted is used by the purchaser as an instrumentality of interstate or foreign commerce.

SECTION 5. Purchases Subject to Exemption.

A. Generally. The purchaser of a vehicle, railroad rolling stock, aircraft, or watercraft may claim the 36 M.R.S. § 1760(41-A) exemption at the time of purchase, use, or commencement of a lease and not pay the sales and use tax due at that time, or pay the sales or use tax due and later request a refund.

B. Purchases from a dealer registered to collect Maine sales tax. When the sale of a vehicle, railroad rolling stock, aircraft, or watercraft is claimed to be exempt as an instrumentality of interstate or foreign commerce pursuant to 36 M.R.S. § 1760(41-A), the seller or lessor must submit, with the sales tax report on which the sale is claimed to be exempt, an Interstate Commerce Exemption Affidavit (ST-A-111, for retail sales, and ST-A-134 for retail leases) that has been accurately completed and signed by both the seller or lessor and the purchaser or lessee.

C. Purchases at casual sale or outside the State. When a vehicle is purchased or leased at casual sale or from a seller or lessor outside the state that is not registered to collect Maine sales tax, the purchaser or lessee must indicate on the vehicle use tax certificate that the property qualifies for exemption as an instrumentality of interstate or foreign commerce and is required to complete and submit an Interstate Commerce Exemption Affidavit at the time of registration (ST-A-111, for retail sales; ST-A-134, for retail leases; and ST-A-110 for casual sales). Failure to accurately complete an affidavit of exemption may subject the purchaser to assessment of use tax.

D. Affidavit of Exemption. The affidavit of exemption must either (1) indicate a currently valid Interstate Operating Authority number issued by the Federal Motor Carrier Safety Administration to the person shown on the affidavit as the purchaser or lessee of the vehicle, or (2) be accompanied by a thorough explanation of how the vehicle is used as an instrumentality of interstate or foreign commerce without such authority.

E. Payment of tax. If the purchaser or lessee who has claimed the exemption finds that the vehicle does not qualify for the exemption because it was not placed in use as an instrumentality of interstate or foreign commerce within 30 days after the date of purchase or 30 days after the commencement of the lease (90 days with good cause), or because it was not or will not be used 80% of the days in use as an instrumentality of interstate or foreign commerce during the first two years from the date the property is placed in service, the purchaser or lessee is liable for use tax plus all accrued interest. In the case of a vehicle purchased or leased from a dealer registered to collect Maine sales tax, interest accrues from the 15th day of the month that follows either (1) the month the vehicle was purchased; or (2) the month the lease commenced. In the case of a vehicle purchased or leased outside Maine or at casual sale, interest accrues from the 15th day of the month that follows the month of first use of the vehicle in Maine. The purchaser or lessee must report and pay use tax directly to Maine Revenue Services. Payment of the use tax should be accompanied by a letter of explanation.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: July 11, 1980 – filing 80-192
• AMENDED: July 12, 1982 – filing 82-141
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996 – filing 96-188
• AMENDED: November 12, 2006 – filing 2006-466
• AMENDED: November 25, 2008 – filing 2008-545
• REPEALED AND REPLACED: August 19, 2019 – filing 2019-150
• AMENDED: February 25, 2025 – filing 2025-036
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 321 Meals Provided in the Wild

Code Me. R. 18-125 Ch. 321 Meals Provided in the Wild {#sec-18-125-ch.-321 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 321}

SUMMARY: Explains the application of the Sales and Use Tax Law to the provision of meals in the wild by persons licensed as outfitters or guides by the Department of Inland Fisheries and Wildlife, as required by P.L. 1985 c. 535 Sec. 29.

SECTION 1. Definitions

1. Direct Costs. "Direct costs,” when used in reference to a meal provided in the wild, means the price paid by an outfitter or guide for the food so provided and any disposable plates, napkins, tableware or other expendable items furnished with the meal.

2. Guide. "Guide" means a guide as defined by 12 MRSA §10001, sub-§28.

3. Indirect Costs. "Indirect costs" means overhead costs associated with the provision of a meal in the wild. “Indirect cost” includes but is not limited to: depreciation and operating expenses of equipment used for refrigeration, storage, preparation and cooking of food products that comprise part of the meal; the pro-rata share of depreciation and operating expenses of equipment used for transportation of the food, supplies and equipment, including transportation of such items to a primitive campsite; the pro-rata share of labor costs (including payroll taxes) for the procurement, storage, transportation, preparation and cooking of the food, at a base camp and at a primitive camping area, and for the cleaning and maintenance of the campsite and equipment, and fuel and other supplies used but not transferred to the customer as part of the meal.

4. In the Wild. "In the wild" means at a place other than a base camp, restaurant or campground while on a trip or other expedition, and includes at a primitive camping area.

5. Outfitter. "Outfitter" means a commercial whitewater outfitter as defined by 12 MRSA §12901, sub-§5.

6. Primitive camping area. “Primitive camping area” means a primitive camping area as defined by 12 MRSA §10001, sub-§50.

SECTION 2. Meals provided in the wild

The provision of a meal in the wild by an outfitter or guide constitutes a retail sale of tangible personal property subject to the tax imposed by Title 36, Chapters 211 to 225. The value of a meal provided in the wild is its cost as determined pursuant to Section 3 of this rule, provided that the meal is furnished as part of a total service and that the price of the service does not vary if the meal is not consumed. Sales tax is not imposed on any portion of a meal that consists of game taken by the guide or the guide’s client.

SECTION 3. Cost of meals

1. Price separately stated. If the price of a meal provided in the wild is stated as a separate item in the charges for services purchased from an outfitter or guide, the tax base of the meal is the price so stated, provided that the tax base may not be less then the cost determined pursuant to subsection B.

2. Price not separately stated. If the price of a meal provided in the wild is not stated as a separate item in the charge for a total service purchased from an outfitter or guide, the cost of the meal is the sum of direct costs and indirect costs. In lieu of maintaining a separate accounting of indirect costs, an outfitter or guide may elect to estimate indirect costs at 15% of direct costs. No credit against the cost so determined is allowed on account of food provided but not consumed. The cost of meals provided in the wild does not include direct or indirect costs of meals provided to employees at no charge.

SECTION 4. Collection of tax

The State Tax Assessor has determined that because of the unconventional manner in which meals are provided to customers by guides and outfitters in the wild, the cost of the meal provided and the sales tax thereon need not be separately stated from the rest of the total service charge.

EFFECTIVE DATE:

July 21, 1986 – filing 2006-468

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 1, 1996

AMENDED:

November 12, 2006 – filing 2006-468

May 27, 2014 – minor correction (Section 1.6 statutory citation)

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 323 Commercial Agricultural Production, Commercial Aquacultural Production, Commercial Fishing and Commercial Wood Harvesting

Code Me. R. 18-125 Ch. 323 Commercial Agricultural Production, Commercial Aquacultural Production, Commercial Fishing, Commercial Wood Harvesting, and Commercial Mining {#sec-18-125-ch.-323 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 323}

SUMMARY: Explains 36 M.R.S. § 2013 as it pertains to the issuance of refunds and certificates of exemption to persons who are engaged in commercial agricultural production, commercial aquacultural production, commercial fishing, commercial wood harvesting, and, effective January 1, 2026, commercial mining.

SECTION 1. Definitions.

1. Commercial agricultural production. “Commercial agricultural production,” as defined in 36 M.R.S. § 2013(1)(A), means commercial production of crops, maple syrup, honey, plants, trees, compost and livestock.

2. Commercial aquacultural production. “Commercial aquacultural production,” as defined in 36 M.R.S. § 2013(1)(A-1), means the commercial production of cultured fish, shellfish, seaweed or other marine plants for human and animal consumption, including:

A. All cultivating activities occurring at hatcheries or nurseries, from the egg, larval or spore stages to the transfer of the product to a growing site; and

B. All cultivating activities occurring on water, from the receipt of fish, shellfish, seaweed or other marine plants from onshore facilities to the delivery of harvested products to onshore facilities for processing.

3. Commercial fishing. “Commercial fishing,” as defined in 36 M.R.S. § 2013(1)(B), means attempting to catch fish or any other marine animals or organisms with the intent of disposing of them for profit or trade in commercial channels and does not include subsistence fishing for personal use, sport fishing or charter boat fishing where the vessel is used for carrying sport anglers to available fishing grounds.

4. Commercial mining. “Commercial mining,” as defined in 36 M.R.S. § 2013(1)(B-2), means the commercial extraction or removal of metallic minerals or overburden or the preparation, washing, cleaning or other treatment of metallic minerals and includes the bulk sampling, advanced exploration, extraction or beneficiation of metallic minerals within a mining area. “Commercial mining” does not include:

A. Exploration;

B. The physical extraction, crushing, grinding, storage or heating of calcium carbonate or limestone to produce cement;

C. The exploration for or physical extraction, crushing, grinding, sorting or storage of borrow, topsoil, clay or silt; or

D. The exploration for or physical extraction, crushing, grinding, sorting or storage of gemstones, aggregate, dimension stone or other construction materials from a quarry.

As used in this rule, “advanced exploration,” “beneficiation,” “cement,” “exploration,” and “metallic mineral” have the same meanings as in 38 M.R.S. § 490‑MM.

5. Commercial wood harvesting. “Commercial wood harvesting,” as defined in 36 M.R.S. § 2013(1)(B-1), means the commercial severance and yarding of trees for sale or for processing into logs, pulpwood, bolt wood, wood chips, stud wood, poles, pilings, biomass or fuel wood or other products commonly known as forest products.

6. Depreciable. “Depreciable” refers to property that has a normal life expectancy of more than one year and is depreciable for federal income tax purposes.

7. Directly. “Directly” refers to those activities or operations that constitute an integral and essential part of commercial agricultural production, commercial aquacultural production, commercial wood harvesting, commercial fishing, or commercial mining, as contrasted with and distinguished from those activities or operations that are simply incidental, convenient, or remote to those activities. Except in the case of electricity and fuel, items used in support operations (including construction or repair facilities, machine shops, storage activities, administration, or highway transportation) are not used directly in commercial agricultural production, commercial aquacultural production, commercial wood harvesting, commercial fishing, or commercial mining.

8. Livestock. “Livestock” includes:

A. Animals kept or raised primarily to produce meat for human or animal consumption;

B. Animals kept or raised primarily to produce other food products for human or animal consumption, such as laying hens, dairy cattle, and bees;

C. Animals kept or raised primarily to produce other agricultural products, such as sheep, llamas and alpaca that produce wool and domestic deer that produce antler velvet; and

D. Animals kept or raised primarily to breed animals other than pets.

9. Machinery and equipment. “Machinery and equipment” means tangible personal property necessary to commercial agricultural production, commercial aquacultural production, commercial fishing, commercial wood harvesting, or commercial mining, including repair parts and attachments for qualifying machinery and equipment. “Machinery and equipment” includes property that may, on account of its nature, be attached to a building or other structure without losing its identity as a particular piece of machinery or equipment and that, if attached, is readily removable without significant damage to the unit or to the realty.

To qualify under 36 M.R.S. § 2013, “machinery and equipment” must be used primarily during the period that begins on the date on which the machinery or equipment is first placed in service by the purchaser and ends two years from that date or at the time that the machinery or equipment is sold, scrapped, destroyed, or otherwise permanently removed from service by the purchaser, whichever occurs first.

“Machinery and equipment” does not include:

A. Land, buildings, and other inherently permanent structures such as docks and silos;

B. Materials and components, such as lumber, plumbing, and wiring, that become an integral part of a building or other structure;

C. Trailers, parts, and attachments that are used or designed for use in conjunction with a motor vehicle;

D. Foundations for machinery and equipment, and special purpose buildings used to house or support machinery and equipment; or

E. Items, other than repair parts, that are used in or with qualifying machinery and equipment, such as fuel, lubricants, coolants, solvents, tools, and supplies used for cleaning and maintenance, and personal apparel.

10. Primarily. “Primarily” means more than 50% of the time.

11. Qualifying activity. “Qualifying activity” means commercial agricultural production, commercial aquacultural production, commercial fishing, commercial wood harvesting, or commercial mining.

12. Related but non-qualifying business activity. “Related but non-qualifying business activity” means an activity that does not constitute commercial agricultural production, commercial aquacultural production, commercial fishing, commercial wood harvesting, or commercial mining, but in which it is customary to employ machinery and equipment that is suitable for use in those activities.

13. Yarding. “Yarding” means the hauling of felled trees to the landing or temporary storage site at which they are loaded onto trucks for transport on a public or private way, and does not include loading the felled trees onto the trucks. Yarding includes slashing, delimbing, bucking, and staging, whether performed in the yard or at the site where the trees were harvested.

SECTION 2. Commercial agricultural production.

The following activities do not constitute commercial agricultural production, even if they are conducted in support of commercial agricultural production or by a person who is also engaged in commercial agricultural production:

1. Subsistence farming;

2. Any activity engaged in primarily as a hobby or avocation rather than as a commercial venture;

3. Forestry and lumber operations of any sort;

4. The digging of drainage ditches and installation of drainage tile or other drainage materials;

5. Boarding, riding, racing, and training of horses;

6. Severance of sand, gravel, loam, or peat moss; and

7. Transportation, storage, preparation, or packaging for market of agricultural products by a person who did not grow or raise them.

SECTION 3. Commercial aquacultural production.

The following activities do not constitute commercial aquacultural production, even if they are conducted in support of commercial aquacultural production or by a person who is also engaged in commercial aquacultural production:

1. Transportation, storage, preparation, or packaging for market of aquacultural products by a person who did not grow or raise them; and

2. Any activity engaged in primarily as a hobby or avocation rather than as a commercial venture.

SECTION 4. Commercial fishing.

The following activities do not constitute commercial fishing, even if they are conducted in support of commercial fishing or by a person who is also engaged in commercial fishing:

1. Transportation, storage, preparation, or packaging of marine organisms by a person who did not catch them;

2. Any activity engaged in primarily as a hobby or avocation rather than as a commercial venture; and

3. The operation of a lobster pound.

SECTION 5. Commercial wood harvesting.

The following activities do not constitute commercial wood harvesting, even if they are conducted in support of commercial wood harvesting or by a person who is also engaged in commercial wood harvesting:

1. Any activity engaged in primarily as a hobby or avocation rather than as a commercial venture; and

2. Transportation, storage, preparation, or packaging of trees by a person who did not harvest them.

SECTION 6. Commercial mining.

The following activities do not constitute commercial mining, even if they are conducted in support of commercial mining or by a person who is also engaged in commercial mining:

1. Exploration;

2. Any activity engaged in primarily as a hobby or avocation rather than as a commercial venture; and

3. Transportation, storage, preparation, or packaging of metallic minerals by a person who did not mine them.

SECTION 7. Purchases of electricity and fuel.

1. Exempt purchases. Electricity and fuel used directly in a qualifying activity, including support operations, may be purchased exempt from sales tax by persons who have been issued a certificate of exemption, provided that an affidavit of exemption and a copy of the certificate of exemption card has been provided to the seller. In the case of electricity, the seller, acting in good faith, may continue to bill electricity sold to that person through that meter exempt from tax until notified that the person is no longer the holder of a certificate of exemption, or that the electricity sold through that meter is no longer used exclusively in a qualifying activity (including support operations). For purposes of this subsection, “support operations” means storage activities, maintenance activities, and administrative activities related to a qualifying activity. “Support operations” does not include activities that constitute, or are conducted by, a separate business; construction activities; or reselling or transporting products that are procured or produced by someone other than the purchaser.

2. Refund of tax paid. The following persons may not purchase electricity or fuel without payment of tax, but may apply to Maine Revenue Services for a refund of sales or use tax paid on purchases of electricity and fuel used directly in a qualifying activity, including support operations:

Persons who have not been issued a certificate of exemption; and

Persons who purchase fuel or electricity that will be used in both qualifying and non-qualifying activities. These persons must pay tax to the seller based on the entire amount billed and apply to Maine Revenue Services for a refund of the tax paid on that portion of the fuel or electricity that was used in the qualifying activity.

SECTION 8. Certificate of exemption.

1. Application. Any person claiming exemption under 36 M.R.S. § 2013(3) must apply to the State Tax Assessor (“assessor”) for a certificate of exemption. The application must be on a form prescribed by the assessor and must include a copy of the portion of the person’s most recent federal income tax return that shows the person is engaged in a qualifying activity.

2. Issuance. A certificate of exemption will be issued by the assessor to persons who have submitted an application that shows they are engaged in a qualifying activity. The certificate of exemption is effective for a maximum of four years from the date of issuance.

3. Exceptions. A certificate of exemption will not be issued to the following persons:

A. Persons whose most recent federal income tax return does not show that the person was engaged in a qualifying activity; or

B. Persons who are primarily engaged in a related but non-qualifying business activity.

4. Use restricted. The certificate of exemption may not be used to purchase the following items without payment of sales tax:

A. Items that are less than 100% depreciable; or

B. Items that are not commonly used directly in a qualifying activity as determined by the assessor, including lawn and garden tractors of less than 20 horsepower, backhoe tractors, fork lift trucks, snowmobiles, all-terrain vehicles, and computers.

5. Refund of tax paid. The following persons may apply directly to Maine Revenue Services for a refund of sales or use tax paid on purchases of depreciable machinery and equipment used directly and primarily in a qualifying activity:

A. Persons who have not been issued a certificate of exemption;

B. Purchasers of items that are less than 100% depreciable; and

C. Purchasers of items that are not commonly used directly in a qualifying activity.

6. Requirements of seller. The burden of proving that a sale is to a person that has been issued a certificate of exemption is upon the person making the sale. This burden of proof will be met if the seller obtains from the purchaser a signed affidavit and a copy of a valid certificate of exemption issued by Maine Revenue Services in accordance with the provisions of this Rule.

The seller must retain an affidavit and a copy of the certificate of exemption from each person to whom exempt sales are made, but need not obtain a separate affidavit or copy of the certificate for each individual sale. Invoices must be appropriately marked to indicate that they are exempt sales. This requirement is satisfied by the purchaser’s certificate of exemption and the words “Maine Sales Tax Exempt.”

7. Good faith requirement. The certificate of exemption must be taken in good faith by the seller. This good faith requirement is not met if the seller knows or could reasonably infer that the purchaser is not the holder of the certificate of exemption or that the merchandise will not be used by the purchaser directly and primarily in a qualifying activity.

8. Misuse of certificate of exemption. Misuse of the certificate of exemption will result in its cancellation. The certificate must be surrendered at the request of the assessor.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 2013
• EFFECTIVE DATE: July 14, 1990
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: January 29, 2007 – filing 2007-32
• AMENDED: February 4, 2014 – filing 2014-014
• AMENDED: January 22, 2017 – filing 2017-005
• APAO ACCESSIBILITY CHECK (Word): April 29, 2026
• AMENDED: May 10, 2026 – filing 2026-106

Chapter 325 Sales to Tribes, Tribal Members, and Tribal Entities

Code Me. R. 18-125 Ch. 325 Sales to Tribes, Tribal Members, and Tribal Entities {#sec-18-125-ch.-325 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 325}

SUMMARY: Provides definitions of terms, and explanations and examples of taxable and non-taxable transactions related to sales to the Houlton Band of Maliseet Indians, the Passamaquoddy Indians, the Penobscot Nation, tribal members, and tribal entities, and sales sourced to tribal lands. The transactions and exemptions described in this rule are effective for purchases made on or after January 1, 2023.

Outline of Contents:

.01 Definitions.

.02 Sales to tribes.

.03 Qualification of tribal entities.

.04 Sales to qualified tribal entities.

.05 Sourcing.

.06 Use test.

.07 Sales of vehicles and leases of automobiles for the period of one year or more.

.08 Reporting of taxable sales by retailers located on tribal land.

.01 Definitions.

A. Assessor. “Assessor” means the State Tax Assessor as defined in 36 M.R.S. § 111(1).

B. Days of use. “Days of use” means days that property or services are used by the purchaser during the first year after the property or service is placed in service. For any portion of a day that property or services are used by the purchaser on tribal land, the property or service will be considered used on tribal land for the entire day.

C. Period of time. “Period of time,” as used for purposes of defining “primarily,” means days of use.

D. Primarily. “Primarily” means more than 50% of that period of time that begins on the date on which the property or service is first placed in service by the purchaser and ends one year from that date or at the time that the property or service is sold, scrapped, destroyed, or otherwise permanently removed from service, whichever occurs first.

E. Qualified tribal entity. “Qualified tribal entity” is a tribal entity that has been issued a certificate of qualification from Maine Revenue Services that identifies the entity as able to make certain purchases exempt from Maine sales and use tax.

F. Tribal entity. “Tribal entity” has the same meaning as in 36 M.R.S. § 111(8), and means:

1. A business entity wholly owned by the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, the Penobscot Nation, a tribal member or tribal members, or some combination thereof. For purposes of determining ownership of an entity, a married couple including at least one tribal member is treated as one tribal member, regardless of which spouse owns the entity; or

2. A business entity where at least 75% of the ownership interests are held in aggregate by a tribe or tribes, and the entity is controlled and managed by the tribe or tribes consistent with the requirements of Title 13 of the Code of Federal Regulations (“C.F.R.”) § 124.109(c)(4) (2022); as determined by the federal Small Business Administration (“SBA”) or the Assessor as consistent with 13 C.F.R. § 124.109(c)(4)(i)(A) (2022); or as determined by the SBA as consistent with 13 C.F.R. § 124.109(c)(4)(i)(B) (2022).

A tribal entity must be a separate and distinct legal entity organized or chartered by federal, state, or tribal authorities.

G. Tribal land. “Tribal land,” as defined in 36 M.R.S. § 111(9), means land within the Houlton Band Trust Land, the Passamaquoddy Indian territory, or the Penobscot Indian territory.

H. Tribal member. “Tribal member,” as defined in 36 M.R.S. § 111(10), means an enrolled member of the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, or the Penobscot Nation.

I. Tribe or tribes. As used in this rule, the terms “tribe” or “tribes” refer, either individually or collectively, to the Houlton Band of Maliseet Indians, as defined in 36 M.R.S. § 111(1-D), the Passamaquoddy Tribe, as defined in 36 M.R.S. § 111(2-B), or the Penobscot Nation, as defined in 36 M.R.S. § 111(2-D).

J. Use. For purposes of sales to tribal members under 36 M.R.S. § 1760(113) and sales to tribal entities under 36 M.R.S. § 1760(114), “use” means the exercise of any right or power over tangible personal property incident to its ownership, including storage of the property and the derivation of income from the rental of the property, whether received in money or in the form of other benefits. “Use” of a taxable service listed in 36 M.R.S. § 1752(17-B) is determined in accordance with Maine sales and use tax laws and rules.

.02 Sales to tribes.

Sales to tribes are exempt from sales and use tax, pursuant to 36 M.R.S. §§ 1760(112), and 1861. For the purposes of 36 M.R.S. § 1760-C, sales made to the tribes for any purpose are exempt. Unlike sales to a tribal member or a tribal entity, a sale to a tribe does not need to be sourced to a location on tribal land in order to qualify for exemption.

Maine Revenue Services issues exemption certificates to tribes in the same manner as certificates issued to an exempt organization, pursuant to MRS Rule 18-125, Chapter 302, “Sales to Governmental Agencies and Exempt Organizations.”

.03 Qualification of tribal entities.

A business entity that believes it is entitled to the tax exemption for tribal entities under 36 M.R.S. § 1760(114) may submit an application (Qualified Tribal Entity Application - APP-170) to Maine Revenue Services for a certificate of qualification. The certificate of qualification identifies to retailers that the tribal entity meets the definition of “tribal entity” as found in 36 M.R.S. § 111(8). The applicant must provide the information and any required documentation specified on the application form (Qualified Tribal Entity Application - APP-170).

A. Business entities wholly owned by tribes, tribal members, or combination thereof. For purposes of determining the ownership of a business entity, a married couple, of which at least one spouse is a tribal member, is treated as one tribal member, regardless of which spouse owns the entity.

A business entity that is wholly owned by a tribe, tribal members, or a combination thereof would need to provide documentation that would demonstrate how the entity is organized, including such documentation as articles of incorporation, a constitution, by-laws, or Tribal Council certified resolution.

For a business entity to qualify as a “tribal entity,” no persons may hold an ownership interest other than tribes or tribal members. “Tribal member” includes a married couple where at least one spouse is a tribal member, regardless of which spouse owns the entity.

B. Business entity ownership interests held in aggregate by the tribes. To qualify as a “tribal entity,” a business entity in which at least 75% of the ownership interest is held in aggregate by a tribe or tribes, must be controlled and managed by a tribe or tribes:

1. Consistent with the requirements of 13 C.F.R. § 124.109(c)(4) (2022);

2. As determined by the SBA or the Assessor as consistent with 13 C.F.R. § 124.109(c)(4)(i)(A) (2022); or

3. As determined by the SBA as consistent with 13 C.F.R. § 124.109(c)(4)(i)(B) (2022).

In addition to documentation that would demonstrate how the business entity is organized and managed, the business entity would also need to provide Maine Revenue Services, along with their exemption application (Qualified Tribal Entity Application - APP-170), a copy of the business entity’s determination of control and/or management as made by the SBA, or a written management development plan, if applicable.

Upon determination that the business entity meets the definition of “tribal entity” as found in 36 M.R.S. § 111(8), Maine Revenue Services will issue a certificate of qualification to the tribal entity.

.04 Sales to qualified tribal entities.

Sales to qualified tribal entities meeting the requirements in this rule shall be exempt from tax, provided that the sale is sourced to a location on tribal land, and that the property or service purchased is not used by the purchaser, including any lessee, primarily outside of tribal land for the first year after the property or service has been placed in service by the purchaser. 36 M.R.S. § 1760(114).

The qualified tribal entity must present a copy of its certificate of qualification to the retailer at the time it purchases the property or services that it expects will be used on tribal land and where the sale is sourced to a location on tribal land along with a completed affidavit (Affidavit of Exemption for Tangible Personal Property or Taxable Services Sold to Tribal Member or Tribal Entity - ST-A-133). A separate affidavit is not required for each individual sale.

The retailer must retain a copy of the qualified tribal entity’s certificate and affidavit within their customer files. The burden of proving a sale is to a qualified tribal entity is on the person making the sale. The retailer is relieved of this burden of proof if the retailer satisfies the provisions in MRS Rule 18-125, Chapter 302, “Sales to Governmental Agencies and Exempt Organizations.”

.05 Sourcing.

A. Generally. A transaction shall be sourced using the sourcing requirements in 36 M.R.S. § 1819.

B. Taking receipt of property and services. A sale of tangible personal property or a taxable service is sourced as follows. “Receive” and “receipt” do not include possession by a shipping company on behalf of the purchaser.

1. A sale of tangible personal property is sourced to tribal land when the tribal member or qualified tribal entity takes possession of the tangible personal property on a location on tribal land.

2. A sale of a taxable service is sourced to tribal land when the tribal member or qualified tribal entity makes first use of the service on a location on tribal land.

3. A sale of a product transferred electronically is sourced to tribal land when the tribal member or qualified tribal entity takes possession or makes first use of the product transferred electronically on a location on tribal land, whichever occurs first.

C. Sourcing transactions to tribal land. A sale will be sourced to a location on tribal land if either:

1. The property or service is first received by the purchaser at the business location of the retailer if that business location is located on tribal land; or

2. The property or service is first received by the purchaser on tribal land. The purchaser shall present an affidavit (Affidavit of Exemption for Tangible Personal Property or Taxable Services Sold to a Tribal Member or Tribal Entity - ST-A-133) at the time of purchase to the retailer, to include the delivery address that is located on tribal land. A separate affidavit is not required for each individual sale. The purchaser shall also present either proof of tribal membership or a copy of a certificate of qualification as a qualified tribal entity to the retailer along with the affidavit.

.06 Use test.

Primarily test. Tangible personal property or service is used by the purchaser primarily outside of tribal land when the number of days of use outside of tribal land, divided by the total number of days of use (days of use on tribal land plus days of use outside of tribal land), is more than 50% for the first year after placing into service.

B. Payment of tax. If the property or service does not qualify for the exemption because it was used primarily outside of tribal land during the first year following the property or service being placed in service, the purchaser is liable for use tax plus all accrued interest. The use tax due is based on the original purchase price of the property or service. The purchaser must report and pay use tax directly to Maine Revenue Services. Payment of the use tax should be accompanied by a letter of explanation.

C. Adequate records. Purchases by tribal members and tribal entities who are claiming exemption under 36 M.R.S. § 1760(113), (114), respectively, must maintain adequate records for six years documenting that the purchases of property or services are exempt. See 36 M.R.S. § 135. An example of an adequate record would be a log maintained by a qualified tribal entity accounting for all use of a vehicle by the tribal entity for a period of one year beginning from the date that the vehicle was purchased and placed into service, documenting that the vehicle was used on tribal lands and not used primarily outside of tribal land.

.07 Sales of vehicles and leases of automobiles for the period of one year or more.

A. Generally. For the purposes of this rule, “vehicle” has the same definition as found in 36 M.R.S. § 1752(7-A).

B. Sales of vehicles and leases of automobiles for the period of one year or more to tribal members.

Affidavit; registration. The tribal member shall complete the Affidavit of Exemption for a Vehicle Sold to a Tribal Member (ST-A-129, for retail sales, and ST-A-131 for casual sales), indicating delivery of the vehicle to a location on tribal land, to appropriately document the sale or lease as exempt. The person purchasing the vehicle or entering a lease of the automobile for the period of one year or more from a vehicle dealer must provide a copy of the completed affidavit to the vehicle dealer at the time of purchasing the vehicle or entering into the lease of the automobile for the period of one year or more. In the case of a casual sale, the person registering the vehicle must provide a copy of the completed affidavit at the time of the vehicle’s registration.

Rebuttable presumption for tribal members. When the sale of a vehicle or lease of an automobile for the period of one year or more to a tribal member is exempt due to the delivery of the vehicle to a location on tribal land, and the address on the vehicle’s registration is also a location on tribal land, there is a rebuttable presumption that the person purchasing the vehicle or entering into the lease of the automobile for the period of one year or more uses the vehicle on tribal land and not primarily outside tribal land during the first year after placing into service. For tribal members claiming this exemption for the purchase of vehicles or the lease of automobiles for the period of one year or more, the registration of that vehicle satisfies the record-keeping requirements discussed in Section .06(C), above.

Sales of vehicles and leases of automobiles for the period of one year or more to tribal entities: affidavits; registration. A qualified tribal entity shall complete the Affidavit of Exemption for a Vehicle Sold to a Tribal Entity (ST-A-130, for retail sales, and ST-A-132 for casual sales), indicating delivery of the vehicle to a location on tribal land, to appropriately document the sale of the vehicle or the lease of the automobile for the period of one year or more as exempt at the time of purchasing the vehicle or entering the lease of the automobile for the period of one year or more. The qualified tribal entity must provide a completed copy of the affidavit to the vehicle dealer at the time of purchasing the vehicle or entering into the lease of the automobile for the period of one year or more. In the case of a casual sale, the registrant must provide a completed copy of the affidavit at the time of the vehicle’s registration. Tribal entities claiming this exemption for the purchase of vehicles or the lease of automobiles for the period of one year or more are still subject to the record-keeping requirements discussed in Section .06(C), above.

.08 Reporting of taxable sales by retailers located on tribal land.

A. Generally. 36 M.R.S. § 1815(2) requires the Assessor to notify the State Controller and the Treasurer of State each month of the amount of revenue attributable to sales tax collected by retailers for sales occurring on tribal land in the previous month to be returned to the respective tribes.

B. Sales occurring on tribal land. A sale occurs on tribal land for purposes of 36 M.R.S. § 1815(2) if:

1. The business location of the retailer from which the purchase is made is on Passamaquoddy Indian territory, Penobscot Indian territory, or Houlton Band Trust Land, respectively; and

2. The tangible personal property or taxable service is received by the purchaser also on Passamaquoddy Indian territory, Penobscot Indian territory, or Houlton Band Trust Land, respectively.

C. Taxable sales of property received outside of tribal land. A retailer located on tribal land may make taxable sales of property or services that are received by the purchaser in Maine but outside of tribal land. In such cases, the revenue attributable to the sales tax collected on those sales is not returned to the respective tribes.

D. Reporting. Retailers located on tribal land will be required, beginning with the sales tax return period that begins January 1, 2023, to report taxable sales occurring on tribal land separately from those taxable sales occurring off of tribal land. Only the sales tax revenue attributable to sales occurring on tribal land will be returned to the respective tribes.

E. Examples.

Example 1: A retailer whose business is located on tribal land makes sales of tangible personal property that are taxable to a person who receives the tangible personal property at the business location of the retailer. The sales tax revenue attributable to that sale will be returned to the respective tribe the following month pursuant to 36 M.R.S. § 1815(2).

Example 2: The same retailer whose business is located on tribal land also makes sales of tangible personal property that are taxable (as no other exemption or exclusion applies), but the property is delivered to the purchaser at a location in Maine that is not on tribal land. The sales tax must still be collected by the retailer, but the sales tax revenue attributable to that sale will not be returned to the respective tribe. This sale must be reported separately from the sale in Example 1 on the retailer’s sales tax return.

History

• STATUTORY AUTHORITY: P.L. 2021, C. 681, Pt. H; 5 M.R.S. § 11053; 36 M.R.S. § 112.
• EFFECTIVE DATE: September 30, 2023 – filing 2023-177.
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 9, 2025

Chapter 326 Leases and Rentals of Tangible Personal Property

Code Me. R. 18-125 Ch. 326 Leases and Rentals of Tangible Personal Property {#sec-18-125-ch.-326 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 326}

SUMMARY: Sets forth requirements for leases and rentals of tangible personal property relating to Maine Sales and Use Tax Law. This Rule is effective for lease and rental transactions occurring on and after January 1, 2025.

SECTION 1. Definitions.

1. Custom computer software program. “Custom computer software program,” which has the same meaning as in 36 M.R.S. § 1752(1-E), means any computer software that is written or prepared exclusively for a particular customer. “Custom computer software program” does not include a “canned” or prewritten software program that is held or exists for a general or repeated sale, lease or license, even if the program was initially developed on a custom basis or for in-house use. An existing prewritten software program that has been modified to meet a particular customer’s needs is a “custom computer software program” to the extent of the modification, and to the extent that the amount charged for the modification is separately stated.

2. Lease or rental. “Lease or rental,” which has the same meaning as in 36 M.R.S. § 1752(5-D) and includes the terms “lease” and “rental,” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration and may include future options to purchase the property or extend the lease or rental. “Lease or rental” includes a sublease and subrental. “Lease or rental” also includes an agreement entered into on or after January 1, 2026, covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. § 7701(h)(1) and is also known as a terminal rental adjustment clause (TRAC) lease.

“Lease or rental” does not include:

A. Leases and contracts payable by rental or license fees for the right of possession and use when such leases and contracts are determined by the assessor to be “in lieu of purchase”;

B. A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;

C. Providing tangible personal property along with a person to operate that property, for a fixed or indeterminate period of time, when that person is necessary for the tangible personal property to perform as designed and the person does more than maintain, inspect or set up the tangible personal property; or

D. The lease or rental of property that is subject to the provisions of the service provider tax imposed pursuant to Title 36, chapter 358.

The characterization of a transaction as a lease or rental under generally accepted accounting principles, the Internal Revenue Code, the Uniform Commercial Code, or other provisions of federal, state, or local law does not affect a determination that a transaction is a lease or rental under chapters 211 through 225 of Title 36 of the Maine Revised Statutes.

3. Lessee. “Lessee” means a person who leases or rents tangible personal property located in this State from a lessor.

4. Lessor. “Lessor,” which has the same meaning as in 36 M.R.S. § 1752(5-E), means a person who leases or rents tangible personal property located in this State to another person.

5. Prewritten software program. “Prewritten software program,” also known as “canned” software or commercial off-the-shelf (COTS) software, means computer software, including prewritten upgrades, that is not designed and developed by the author, developer or other creator to the specifications of a specific purchaser. “Prewritten software program” includes video games.

A. The combining of two or more prewritten software programs or prewritten parts of the programs does not necessarily cause the combination to be something other than a prewritten software program.

B. “Prewritten software program” includes computer software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the purchaser.

C. If a person modifies or enhances computer software of which the person is not the author or creator, the person is considered to be the author or creator only of the person’s modifications or enhancements.

D. A prewritten software program, or a prewritten part of the computer software that is modified or enhanced to any degree, where the modification or enhancement is designed and developed to the specifications of a specific purchaser, remains a prewritten software program. However, when the value of such modification or enhancement to the prewritten software program is separately stated from that of the prewritten software program, such modification or enhancement is considered custom computer software.

6. Primary property location. For the purposes of sourcing leases and rentals of tangible personal property pursuant to 36 M.R.S. § 1819, “primary property location” means an address for the tangible personal property that is provided by the lessee that is available to the lessor from the lessor’s records and maintained in the ordinary course of business, when use of this address does not constitute bad faith. A primary property location is not altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips or service calls.

7. Product transferred electronically. “Product transferred electronically,” which has the same meaning as in 36 M.R.S. § 1752(9-E), means a digital product transferred to the purchaser electronically the sale of which in nondigital physical form would be subject to tax under Part 3 of Title 36 of the Maine Revised Statutes as a sale of tangible personal property.

8. Tangible personal property. “Tangible personal property,” which has the same meaning as in 36 M.R.S. § 1752(17), means personal property that may be seen, weighed, measured, felt, touched or in any other manner perceived by the senses, but does not include rights and credits, insurance policies, bills of exchange, stocks and bonds and similar evidences of indebtedness or ownership. “Tangible personal property” includes electricity. “Tangible personal property” includes prewritten computer programs. “Tangible personal property” includes any product transferred electronically.

SECTION 2. Registrants.

1. Every lessor engaged in the leasing of tangible personal property located in this state must register with Maine Revenue Services (MRS) and collect and remit the sales tax in connection with the lease or rental of that property.

2. An out-of-state lessor of equipment shall register and comply with the provisions of 36 M.R.S. § 1754-B when its tangible personal property is located in Maine in the possession of a lessee.

3. Each time period for which a lease or rental payment is charged is considered a separate sale in determining whether a retailer is responsible for the tax in accordance with Maine Sales and Use Tax Law.

SECTION 3. Sale price.

For the calculation of the taxable sale price of the lease or rental of an automobile, see Section 7 of this Rule.

1. Included within sale price. The sale price of the lease or rental of tangible personal property shall include:

The total amount of payment received for the leasing of tangible personal property, whether received in money or otherwise, without any deduction on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid, losses, or any other expenses;

All charges, including but not limited to maintenance and service contracts, setup, hook-up, assembly or disassembly, erection and dismantling, cancellation charges and early termination charges, transportation charges for delivery completed or arranged by the lessor to the lessee, pickup and other handling charges, administrative charges, fuel charges, surcharges, and late return charges, whether or not such amounts are separately stated;

C. Payments paid by the lessee to a third party for the benefit of the lessor that are required by the terms of the lease or rental agreement; and

D. All itemized charges for costs incurred by the lessor and passed on to the lessee as separate charges in the lease or rental agreement, including but not limited to finance or interest charges, property tax, or inspection fees.

2. Exclusions from sale price. The sale price of the lease or rental of tangible personal property shall not include:

A. The price charged for labor or services used in installing, applying, or repairing the tangible personal property leased or rented, if separately charged or stated;

B. The price charged for the cost of transportation from the lessor’s place of business or other point from which shipment is made directly to the lessee, provided that those charges are separately stated, and the transportation occurs by means of common carrier, contract carrier, or the United States mail;

Separately stated charges for optional insurance coverage for the protection of the lessee or of the lessee’s personal property, such as liability insurance, personal accident insurance, or personal effects protection; or

D. Charges for goods and services sold after the lease or rental has terminated, including a disposition fee.

SECTION 4. Exclusions from “lease or rental.”

The following are excluded from the definition of “lease or rental.”

1. Leases “in lieu of purchase.” If tangible personal property is, for all intents and purposes, sold but the transaction is designated as a lease or rental for the purpose of retaining title in the seller and as security for payment of the purchase price, the lease or rental will be deemed to be “in lieu of purchase.” A lease shall be deemed to be in “in lieu of purchase” when, once the lessee enters into the so-called lease agreement, the lessee must acquire title to the tangible personal property under the terms of the agreement. The total value of the lease or rental payments charged will be considered to constitute the sale price upon which tax is based. Separately stated finance charges and personal property taxes shall be excluded from the sale price.

The Assessor may review the specific terms of a particular lease in order to determine whether it is a lease “in lieu of purchase.” A lease will generally be a lease “in lieu of purchase” under the following circumstances if any of the following conditions are satisfied:

A. If the terms of the lease create a security interest as defined by 11 M.R.S. § 1-1201(35); or

B. If the lease contains an option to purchase the leased property for $1.00 or other nominal consideration.

2. Transfer of possession or control of property under a security agreement. A retailer may purchase tangible personal property and subsequently transfer possession to a customer under an agreement or deferred payment plan that requires monthly or other recurring periodic payments by the customer for a specific period of time. Upon completion of the required payments and pursuant to the agreement or deferred payment plan, title of the property is transferred by the retailer to the customer who then becomes the owner of the tangible personal property. No tax is due on the periodic payments that the retailer receives from the customer; however, the sales or use tax is payable to the retailer at the time of purchase by the customer of the tangible personal property.

3. Providing tangible personal property along with an operator. The provision of tangible personal property for a fixed or indeterminate period of time along with an operator for that tangible personal property is not considered a “lease or rental” for purposes of Maine Sales and Use Tax Law. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this exclusion, an operator must do more than maintain, inspect, or set up the tangible personal property.

4. Leases and rentals subject to the service provider tax. The rental of video media and video equipment, and the rental of furniture, audio media, and audio equipment pursuant to a rental-purchase agreement as defined in 9-A M.R.S. § 11-105, are services taxable under the service provider tax. A rental-purchase agreement of furniture, audio media, and audio equipment is not a transfer of possession or control of property under a security agreement as described above in Section 4.2.

SECTION 5. Purchases for resale.

1. A lessor that purchases tangible personal property intended for subsequent lease or rental tax-free must present a valid resale certificate.

2. Parts and accessories purchased for use in the repair or maintenance of tangible personal property used exclusively for leasing purposes may be purchased by the lessor tax-free by presenting a valid resale certificate. Purchases of repair parts by lessees are not purchases for resale and are taxable unless another exemption or exclusion from tax applies.

3. Tangible personal property purchased for resale without payment of the tax where the property is intended to be utilized exclusively for lease or rental, and is so used, but then is subsequently used by the lessor for some purpose other than for lease or rental, is subject to the sales and use tax upon this subsequent use. The tax shall be measured by the purchase price of the tangible personal property and is in addition to the tax due on the lease or rental payments.

4. Tangible personal property purchased for both lease or rental and for use by the purchaser may not be purchased tax-free as a sale for resale and is subject to tax.

5. A retailer who purchases tangible personal property for outright sale but, while holding the property in the retailer’s inventory, makes use of the property in the retailer’s business through lease or rental, is responsible for collecting the sales and use tax on the lease or rental payments.

SECTION 6. Exempt leases and rentals.

1. A lessor of tangible personal property shall not charge and collect the tax on the payment for a lease or rental if the lessor takes from the lessee a fully completed certificate of exemption or affidavit as evidence that the tangible personal property to be leased will be used in an exempt manner under Maine Sales and Use Tax Law.

2. Tangible personal property leased or rented by a contractor for use in a construction contract with an organization that has been granted a sales tax exemption under 36 M.R.S. § 1760 or a governmental agency is subject to tax, even if the lease or rental of the tangible personal property is specifically for use on the exempt job.

3. The rental of safe deposit boxes, self-storage units, or baggage lockers is not a rental of tangible personal property but instead constitutes a rental of storage space at the business location of the lessor and is not subject to tax.

SECTION 7. Leases and rentals of automobiles.

In the case of the lease or rental of an automobile where the lease requires recurring periodic payments, all monthly payments are sourced to the primary property location pursuant to 36 M.R.S. § 1819(4).

For a lease or rental of an automobile that does not require recurring periodic payments – i.e., the total lease payment is due as one lump sum – the payment is sourced the same as a sale of tangible personal property, pursuant to 36 M.R.S. § 1819(2).

The computation of the taxable sale price and the rate of tax imposed on the lease or rental of an automobile differ depending upon the duration of the lease term as specified in this Section.

1. Short-term lease or rental of an automobile; sale price, rate of tax. “Short-term” means a lease or rental period of less than one year. Under 36 M.R.S. § 1811, the short-term rental of an automobile is taxed at a higher rate than the general sales tax rate. The short-term rental rate does not apply to vehicles with more than four (4) wheels, motorcycles, motor homes, or trucks and vans weighing more than 10,000 pounds. The short-term rental rate does not apply to the rental of a cargo van.

Separately stated fees that are not part of the taxable sale price of the vehicle include, but are not limited to, reimbursement of tolls, charges for goods and services sold after the rental has terminated (e.g., fuel sales), and sales of optional insurance coverage for the protection of the lessee or of the lessee’s personal property. All fees must be disclosed when an estimated quote is provided to the lessee.

2. Long-term lease or rental of an automobile; sale price, rate of tax. In the case of the lease or rental of an automobile for a period of one year or more, the taxable sale price of a lease shall be computed on (A) the value of the total monthly lease payment multiplied by the number of payments in the lease or rental; (B) the amount of equity involved in any trade-in; and (C) the value of any cash down payment, pursuant to 36 M.R.S. § 1752(14)(A)(5). Collection and remittance of the tax is the responsibility of the person that negotiates the lease transaction with the lessee. The full amount of sales tax is due in the month in which the lease begins. The lease or rental of an automobile for a period of one year or more is subject to the general sales tax rate.

A. Total monthly lease payments. The amount of total monthly lease payments is determined by multiplying the dollar amount of each lease payment by the number of payments in the lease term. Taxes, such as certain excise taxes and sales taxes, are excluded from the sale price. Certain charges, such as registration fees, life/disability insurance, gap insurance, warranties, and management services are excluded from the sale price only if separately stated from the lease payment. A fee charged when the lessee opts to return an automobile to the lessor rather than exercising the option to purchase it – e.g., a “disposition fee,” or a charge for excess mileage or excess “wear and tear” – is not subject to sales tax.

B. Equity involved in trade-in. “The amount of equity involved in any trade-in” is the value of any trade-in that reduces the cost of the lease.

C. Cash down payment. “The value of any cash down payment” means any initial cash payment that is applied toward the cost of the lease, including rebates. “The value of any cash down payment” does not include pre-payment of lease payments or of required upfront costs disbursed by the lessor such as sales tax, excise tax, and/or registration fees.

3. Long-term leases of automobiles by nonresidents. Nonresidents of Maine that enter into a lease of an automobile for a period of one year or more with a Maine retailer, where the nonresident is going to immediately remove the automobile from Maine, may complete an Affidavit of Exemption for Immediate Removal (Form ST-A-106). If an accurately completed affidavit is accepted by the retailer in good faith, the retailer is not required to collect sales tax on the lease transaction. If the retailer knew or had reason to know that the lessee did not intend to immediately remove the automobile from the State, or was not a nonresident at the time of the commencement of the lease, the retailer may be liable for the tax.

SECTION 8. Lease and rental transactions between related entities or parties and casual leases and rentals.

1. The retail lease or rental of tangible personal property between separate entities with the same or similar ownership is subject to Maine sales and use tax.

2. Casual leases and rentals are not retail sales subject to tax, unless the tangible personal property leased or rented is a motor vehicle, aircraft, watercraft, trailer, truck camper, or special mobile equipment. Tax must be collected on the lease or rental payments made on the casual lease or rental of those properties unless the property is leased to a corporation, partnership, trust, limited liability company or limited liability partnership when the lessor is the owner of 50% or more of the common stock of the corporation or of the ownership interest in the partnership, trust, limited liability company, or limited liability partnership.

SECTION 9. Computer software and products transferred electronically.

1. Products transferred electronically. When a product transferred electronically is transferred to the purchaser (e.g., downloadable to the purchaser’s computer hardware or other device), the sale, lease, rental, or license of the product is a taxable sale of tangible personal property.

2. Custom computer software programs. Sales of custom computer software programming are not subject to Maine sales or use tax, as “custom computer software programs” are excluded from the definition of “tangible personal property” in 36 M.R.S. § 1752(17).

3. Sale or lease of prewritten software programs. Prewritten software programs for sale, rental, lease, or license are generally subject to the Maine sales tax, regardless of the fact that the prewritten software program may require some modification for a purchaser’s computer or device.

A. Taxable transfers of prewritten software programs. Taxable transfers of prewritten software programs include, but are not limited to, sales transacted by electronic delivery, “load and leave,” licenses and leases, transfers of rights to use computer software installed on an in-state third-party server accessed by the holder of the software license, upgrades, and license upgrades.

(1) Sold in a tangible medium. The sale, rental, lease, or license of a prewritten software program stored on a tangible medium – i.e., on a disc or disk, a USB flash drive, etc. – is subject to Maine sales and use tax.

(2) “Load and leave” method. The sale, rental, lease, or license of a prewritten software program that is transferred using a “load and leave” method, where the seller or an agent of the seller transfers the prewritten software program from a portable storage device onto the purchaser’s computer(s) at the purchaser’s location, is subject to sales tax, as it is also delivered on a tangible medium.

(3) Products transferred electronically. Prewritten software programs transferred electronically are subject to Maine sales and use tax when downloadable in this State or for use in this State and sold, rented, leased, or licensed for consideration. This includes “mobile apps” downloadable to a smartphone, electronic tablet, or other mobile electronic devices.

(4) License fees. Paying a license fee to use a prewritten software program for a defined period of time constitutes a lease or rental of the computer software.

(5) Enhancements to prewritten software programs. Transactions for enhancements to prewritten software programs, such as upgrades or “in-app” purchases, including “in-game” purchases, are subject to Maine sales and use tax if the prewritten software program is subject to Maine sales and use tax. If the prewritten software program was free, but the customer is charged for enhancements, the enhancements are subject to Maine sales and use tax if the prewritten software program would have been subject to Maine sales or use tax had there been a charge.

B. Cloud computing; remotely accessed software. Prewritten computer software that is sold, rented, leased, or licensed for consideration where the computer software is remotely accessed over the Internet from an out-of-state server, over private or public networks, or through wireless media, and no software is downloadable onto the licensee’s computer or device, is not considered a retail sale of a product transferred electronically and is not subject to Maine sales and use tax.

4. Software maintenance contracts. A retailer makes a retail sale of tangible personal property when the retailer enters into a computer software maintenance contract with a customer to provide future updates or upgrades to the customer’s computer software. These contracts are therefore subject to Maine sales and use tax at the time of entering into the contract. Additionally, if the computer software maintenance is contracted for and included as part of a transaction for a prewritten software program under a single, non-itemized price, the entire transaction is subject to Maine sales and use tax.

5. Software sales billed to Maine. Prewritten software programs billed to a location in Maine will be presumed to be used in Maine. This presumption may be overcome by establishing that the prewritten software program license was used exclusively by the customer at a location outside of Maine. For example, if a business headquartered in Maine bills all purchases of prewritten software programs to Maine, then it is required to pay tax on all those purchases. The business may apply to MRS for a refund of the tax due on licenses not used in Maine under 36 M.R.S. § 2012.

SECTION 10. Sourcing of leases and rentals of tangible personal property.

The lease or rental of tangible personal property or products transferred electronically shall be sourced according to 36 M.R.S. § 1819.

History

• STATUTORY AUTHORITY: 36 M.R.S. § 112
• EFFECTIVE DATE (NEW): October 6, 2025 – filing 2025-188
• APAO ACCESSIBILITY CHECK: October 2, 2025 (accessibility issues resolved by agency; no further issues detected)

Chapter 501 Reporting Under Gasoline Tax Act

Code Me. R. 18-125 Ch. 501 Reporting Under Gasoline Tax Act {#sec-18-125-ch.-501 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 501}

SUMMARY: Interprets the tax reporting aspects of the Gasoline Tax Act and the handling of certain product losses.

.01 Reporting

A. Gasoline tax reports must be filed by every licensed distributor even though no purchases, or sales or use of gasoline were made during the month.

B. The basis of reporting for Maine Gasoline Tax purposes is the actual measured gallonage received and sold, distributed or used. Reports made on basis of adjustments for temperatures shall not be accepted.

(1) Receipts at marketing locations in this State from outside this State shall be measured gallons received in the distributors bulk storage tanks.

(2) Receipts at marketing locations in this State from sources within this State shall be the measured gallons invoiced by the supplying distributor.

C. Sales to the U.S. Government are not subject to State tax. Federal Tax Exemption Certificate (Form 1094) shall be required to support sales by dealers to the U.S. Government, where refund is made by the licensed distributor to the dealer. The certificate shall not be required in the case of direct sales by the distributor to the U.S. Government or dealer sales to the U.S. Government on the basis of the distributor's credit or courtesy card.

.02 Transfers on consignment. Where gasoline is delivered by a distributor on consignment basis to a consumer or to a retail outlet, whether such retail outlet is wholly owned by the distributor or not, it shall be considered to have been "distributed" within the meaning of the Gasoline Tax Act.

.03 Allowances for losses due to fire, accident or some unavoidable calamity. A licensed distributor must report immediately to the Bureau of Taxation on losses sustained by him through fire, accident, or unavoidable calamity, in order that the Bureau nay make such investigations as it may deem necessary. In such a case, the distributor should not delay reporting such loss until the filing of his next monthly report. Failure to report such losses promptly may result in the refusal of the Bureau to allow credit on account of tax liability with respect to such losses.

AUTHORITY: 36 M.R.S.A. §2906

EFFECTIVE DATE: November 15, 1956,

Amended: June 1, 1979

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 601 Estate Tax

Code Me. R. 18-125 Ch. 601 Estate Tax {#sec-18-125-ch.-601 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 601}

SUMMARY: This rule explains in further detail the estate tax laws of the State of Maine for estates of decedents dying on or after January 1, 2011 but before January 1, 2013.

Outline of Contents

.01 Definitions

.02 Federal law

.03 Filing requirements

.04 Administrative expenses

.05 Gifts

.06 Valuation

.07 Sourcing of property to Maine

.08 Qualified terminable interest and Maine elective property

.09 Qualified domestic trusts

.10 Liability

.11 Liens and lien releases

.12 Application date

.01 Definitions

The following definitions apply with respect to this rule and 36 M.R.S., Chapter 575, except as the context may otherwise require.

A. Adjusted taxable gifts. “Adjusted taxable gifts” has the same meaning as in the Internal Revenue Code (“Code”) and other applicable federal law, less taxable gifts made within one year prior to the date of death of the decedent.

B. Allowable deductions. “Allowable deductions” means deductions from the federal gross estate as authorized under the Code in calculating the federal taxable estate, excluding the state death tax deduction. “Allowable deductions” includes deductions taken by a Gap estate that would have been allowable if the estate had been required to file a federal estate tax return.

C. Alternate valuation date. “Alternate valuation date” means the date of valuation of an estate other than the date of death, as determined under the Code. In the case of an estate that does not incur a federal estate tax, but is taxable to Maine, the alternate valuation must be determined under Code §2032 as if the estate was taxable under federal law.

D. Federal exclusion. “Federal exclusion” means the applicable exclusion amount pursuant to the Code. The exclusion amount is the dollar value for which the calculated estate tax is exactly equal to the applicable unified credit.

E. Federal tentative taxable estate. “Federal tentative taxable estate” means the federal gross estate less allowable deductions, except the deduction for state taxes.

F. Gap estate. “Gap estate” means the estate of a decedent where the value of the gross estate as of the decedent’s date of death or alternate valuation date is less than or equal to the federal exclusion amount but more than the Maine exclusion amount.

G. Maine estate tax. “Maine estate tax” means the amount of tax due in accordance with Title 36 M.R.S., Chapter 575 and this rule.

H. Maine exclusion. “Maine exclusion” means the applicable federal exclusion amount for Maine estate tax purpose. The exclusion amount is the dollar value for which the calculated estate tax is exactly equal to the applicable unified credit under Title 36 M.R.S., Chapter 575. For estates of decedents dying after December 31, 2012, the Maine exclusion amount is $2,000,000.

I. Pro forma federal Form 706. “Pro formafederal Form 706” means federal Form 706 prepared as if it were required to be filed federally under the Code.

J. Surviving spouse. “Surviving spouse” means an individual who outlived the decedent and who was married, according to the laws of Maine, to the decedent at the time of the decedent’s death.

K. Unified credit. “Unified credit” has the same meaning as in Code §2010 as of December 31, 2000. The termination provision contained in Code §2210 must be disregarded.

.02 Federal laws

A. Generally. Maine Revenue Services generally looks to federal law, including statutes, regulations, statements, policy, and related case law for guidance when interpreting analogous provisions of Maine estate tax law. However, the state death tax deduction contained in the Code §2058 must be disregarded. The termination provision contained in the Code §2210 must be disregarded. The Maine estate tax determined under 36 M.R.S., Chapter 575, for an estate of a decedent dying after December 31, 2009, but before January 1, 2013, must be determined in accordance with the law applicable to decedents dying during calendar year 2009.

B. Final federal determination. Except as noted below, when the federal government issues a final determination as to the inclusion in the federal gross estate of any item, the amount claimed as a deduction from the gross estate, or the federal credit for estates of decedents dying before January 1, 2003, that issue is finally determined for Maine estate tax purposes. For estates of decedents dying on or after January 1, 2003, but before July 1, 2008, when the federal government issues a final determination as to the inclusion in the federal gross estate of any item or the amount claimed as a deduction from the gross estate, that issue is finally determined for Maine estate tax purposes. For estates of decedents dying on or after July 1, 2008, but before July 1, 2009, the State Tax Assessor (“Assessor”) is not bound by a final federal determination on the above issues and may determine the issue for Maine estate tax purposes within two years of the date the return or amended return was filed or was due to be filed, whichever is later. For estates of decedents dying on or after July 1, 2009, the Assessor is not bound by a final federal determination on the inclusion in the federal gross estate of any item of property or interest and the allowance of any item of deduction from the federal gross estate and may determine the issue for Maine estate tax purposes within one year of the date the return or amended return was filed or was due to be filed, whichever is later.

.03 Filing requirements

A. Forms

Form 706ME.

Where the sum of the federal gross estate and adjusted taxable gifts exceeds the Maine exclusion or if the estate contains Maine elective property or Maine qualified terminable interest property and where the estate includes property sourced to Maine, a personal representative must file a Maine Estate Tax return (Form 706ME) with required attachments within nine months of the decedent’s date of death, unless an extension of time to file has been granted. If the estate is required to file a federal Form 706, a copy of that form, including all schedules and attachments (including Worksheet 706C) must be filed with Form 706ME. If the estate is not required to file federal Form 706, a pro forma federal Form 706 must be attached to Form 706ME and must include all of the information, schedules and attachments that would be required if a federal return was required to be filed.

2. Form 706ME-EZ. Where the estate includes property sourced to Maine and Form 706 ME is not required, the personal representative may file Form 706ME-EZ at any time after date of death. The purpose of the form, filed along with a certificate of discharge of estate tax lien, is to request the release of the automatic statutory estate tax lien on real or tangible personal property for estates with no tax liability.

3. Certificates of Discharge of Estate Tax Lien. A personal representative must file a Certificate of Discharge of Estate Tax Lien to request release of the automatic estate tax lien on Maine real property. A personal representative must file a Certificate of Discharge of Estate Tax Lien on Tangible Personal Property to request release of the automatic estate tax lien on personal property sourced to Maine.

B. Attachments. A personal representative must file attachments required by the Assessor. Required attachments may include, but are not limited to, appraisals, wills and trust documents, any estate tax, gift tax, decedent’s income tax or fiduciary income tax return filed with the IRS or another state, proof of payment to another state, any document stating a request for an extension of time to file or pay, any applicable Life Insurance Statements (federal Forms 712), financial statements, pension or annuity plan documents or statements, bank and brokerage statements, and a detailed list of miscellaneous property and documentation of its value.

C. Payment. Payment of all estate tax shown to be due on the return must be paid within 9 months of the decedent’s date of death, unless a request for an extension of time to pay has been granted by the Assessor. See section .03(F) (2) below.

D. Amended Returns. If the estate receives or becomes entitled to additional property that was not shown on the Maine estate tax return, the personal representative must file an amended Maine estate tax return within 180 days of the receipt of such property, even if the additional property does not result in an increase in the estate’s liability shown on the Maine estate tax return. If federal Form 706 has been audited by the IRS and the IRS changed any item resulting in an increase in the estate’s liability shown on the Maine estate tax return, the personal representative must file an amended Maine estate tax return with a copy of the federal statement of changes packet within 180 days of the change. The personal representative must file a copy of the federal closing letter as an attachment with the amended return.

E. Record Retention. A personal representative must, for Maine estate tax purposes, retain complete records for the same period as required by the Code and regulations for estates that incur a federal estate tax, even if the estate has not incurred a federal estate tax.

F. Extensions

1. Extension to File. The Assessor may allow a reasonable extension up to eight months from the date that the Maine estate tax return would have originally been due absent any extension as long as a payment reasonably estimating the tax due has been submitted on or before the original due date. A payment of at least 90% of the Maine estate tax due must be submitted to avoid late payment penalties. If a federal extension to file has been granted, a Maine extension to file is automatically granted equal to the federal extension period. If the federal extension that was granted is less than eight months, the Assessor may allow an extension up to a total of eight months upon the written request of the personal representative stating the reason for the extension request. If a federal estate tax return is not required, the Assessor may allow a reasonable extension up to eight months from the date that the return would have originally been due absent any extension granted upon written request of the personal representative.

2. Extension to Pay. In order to receive an extension to pay, the personal representative must request an extension in writing and show that the estate has an inability to pay by the original due date. The Assessor may mandate a bond or other security. An extension of time to pay will not exceed one year from the date that the tax was originally due, but the Assessor may grant successive extensions pursuant to 36 M.R.S. §4069. Interest accrues on any amount of tax not paid by the original due date.

G. Escrow Agreements. At the request of the personal representative, the Assessor may allow an estate to establish an escrow account in favor of Maine Revenue Services in lieu of the tax bond typically required by the probate court to secure the estimated estate tax liability.

H. More than one personal representative. If an estate has more than one personal representative, a list containing the name, address, telephone number, and social security number or tax identification number for each personal representative must be attached to the return.

.04 Administrative expenses

If a gap estate included administrative expenses in the calculation of the pro forma federal Form 706, and those expenses are also included in the estate’s federal fiduciary return (Form 1041) for calculating the income tax for the estate, the estate must make an addition modification on the Maine fiduciary income tax return (Form 1041ME). The addition modification must equal the administrative expenses deducted on the federal Form 1041 that are also deducted on the pro forma federal Form 706.

.05 Gifts

Generally, adjusted taxable gifts are added to the federal gross estate and Maine elective property in order to determine whether the estate has exceeded the Maine exclusion. The Assessor will disregard a gift and treat the decedent as the owner of the property where a gift has not been completed, incidents of ownership were retained by the decedent, or where the gift otherwise would be disregarded under the Code, federal regulations, or policy. In addition, where the decedent, within one year prior to the date of death, made taxable gifts as defined under the Code, the value of those taxable gifts when made on or after January 1, 2008, will be included in the decedent’s estate in accordance with 36 M.R.S. §4062.

.06 Valuation

A. Determination. The Assessor may, for Maine estate tax purposes, independently determine the value of the assets of an estate in accordance with the Code, federal regulations and policy even if there is a final federal determination with respect to the valuation of the assets of the estate. Generally, the value of the gross estate of the decedent is determined by the fair market value of all the decedent’s assets at the time of death. The fair market value means the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion and both having reasonable knowledge of the relevant facts.

B. Alternate valuation date. The personal representative of an estate may elect to value the estate using the alternate valuation date as determined under Code §2032. The Assessor may, for Maine estate tax purposes, independently determine the value of the assets of an estate on the alternate valuation date in accordance with the Code and federal regulations and policy even if there is a final federal determination with respect to the valuation of the assets of the estate.

.07 Sourcing property to Maine

A. Property

1. Real property. Real property is sourced to the taxing jurisdiction in which it is physically located, regardless of whether the decedent was a Maine resident or nonresident on the date of the decedent’s death.

2. Tangible personal property. Tangible personal property is sourced to the taxing jurisdiction in which it was situated at the date of the decedent’s death. If an item of tangible personal property is temporarily situated in a taxing jurisdiction for repair or other temporary purpose, that item will be sourced to the taxing jurisdiction to which it is intended to be located after such repair or purpose.

3. Intangible property. Intangible property is sourced to the taxing jurisdiction of the decedent’s domicile as of the date of the decedent’s death. Intangible property includes, but is not limited to, bank accounts, stocks, bonds and other cash accounts, except as provided by .07(C) and (D) below.

4. Gifts. The valueof gifts made by the decedent within one year prior to death included in the decedent’s estate by 36 M.R.S. §4062(2) is sourced consistent with .07(A) (1), (2), and (3) above.

B. Domicile. The word “domicile” is a common-law (i.e., judge-made law) term that the Maine courts, not the Legislature or Maine Revenue Services, have defined. Under the Maine common law, “domicile” means the place (A) where a person resides, and (B) where that person intends to remain and, whenever absent, intends to return. Thus, according to the Maine courts, domicile has two components: residence and the intent to remain or return, if absent. The intent to move in the future is not sufficient to establish domicile. Once an individual’s domicile is established in Maine, it continues here until domicile is established elsewhere. An individual alleging a change in domicile has the burden to show that domicile was established in another state or country.

Where a decedent was domiciled at the date of death is a question of fact in which objective factors exhibiting the decedent’s actual location and intent may be relevant. Factors that may be relevant or excluded in determining a decedent’s domicile at the date of death include those relevant or excluded in determining income tax domicile (for more information, see Me. Dep’t of Admin. & Fin. Servs., Bur. of Rev. Servs., 18-125 C.M.R., ch. 807.03 and .04), as well as the locations of significant relatives or an appointed attorney-in-fact for health care or financial decisions. Where the decedent qualified for financial assistance for health care, where the decedent had a contract for residence or care at a residential living facility, or where the decedent qualified as a statutory resident for income tax purposes may all be important factors to be considered in determining domicile.

Maine Revenue Services considers allof an individual’s relevant facts and circumstances allowed by Maine law when it determines where that individual is domiciled. Although the individual’s intentto remain or returnis a critical factor in determining domicile, an individual’s statement as to his or her intent is not necessarily determinative. Evidence of the decedent’s intent may be found in many decisions made by that individual. The decedent may have retained the ability to make such decisions and determine his or her domicile even though the decedent was deemed incapable of making, or chose not to make, other decisions. Actions by a person who was responsible for an incapacitated individual’s affairs may be considered when determining the decedent’s intent to remain. When a guardian has been appointed and chooses the incapacitated individual’s place of abode pursuant to authority as a guardian, the intent of the guardian for the individual to remain or return to a particular location becomes a factor in the determination of the incapacitated person’s domicile. Evidence of the guardian’s intent may be found in relevant statements and actions.

C. Residents. For a resident decedent’s estate, all real and tangible personal property of the decedent that is located in Maine as of the date of the decedent’s death, plus all intangible property owned by the decedent as of date of death, are sourced to Maine. A credit may be allowed against the estate tax of a resident decedent’s estate for constitutionally valid estate, inheritance, legacy and succession taxes actually paid to another jurisdiction upon the value of real or tangible personal property owned by the decedent, subject to such tax and included in the value of the decedent’s intangible personal property subject to taxation under 36 M.R.S. §4063.

D. Nonresidents

1. Generally. For a nonresident decedent’s estate, all real and tangible personal property situated in Maine as of the date of the decedent’s death is sourced to Maine.

2. Real or tangible personal property transferred to a trust or other pass-through entity. When real or tangible personal property is owned by a pass-through entity, the entity must be disregarded and the property must be treated as personally owned by the decedent where the entity does not actively carry on a business for the purpose of profit and gain; the ownership of the property in the entity was not for a valid business purpose; or the property was acquired by other than a bona fide sale for full and adequate consideration and the decedent retained a power with respect to or interest in the property that would bring the real or tangible personal property located in this State within the decedent’s federal gross estate.

The Assessor will determine whether the transfer was for a valid business purpose by looking at the economic realities of the transfer. Tax avoidance is not considered a valid business purpose.

3. Allocation of debt. For nonresident decedents, the Maine estate tax is applied to the total value of the real and tangible personal property treated as owned by the decedent situated in Maine as of the date of the decedent’s death. If Maine real property is encumbered, only the direct debt against the property (i.e., the debt used for the purchase, repair, maintenance or improvement of that property) is an allowable deduction.

.08 Qualified terminable interest and Maine elective property

A. Qualified terminable interest property. Beginning with deaths in 2005, an estate of a decedent with a surviving spouse may elect an estate deduction for assets that are eligible to be treated as qualified terminable interest property (“QTIP”) under Code §2056(b)(7). The maximum allowable Maine QTIP deduction is the difference between the decedent’s federal exclusion amount or, if no federal return is required, the pro forma federal exclusion amount and the Maine exclusion amount. The Maine QTIP may not include property designated as federal QTIP property, nor may it include property included in adjusted taxable gifts. Maine QTIP property is tax-deferred for Maine estate tax purposes until the death of the surviving spouse. At the death of the surviving spouse, the remaining Maine QTIP property is revalued and is identified as Maine elective property which must be included in the surviving spouse’s taxable estate. For estates of decedents dying on or after January 1, 2010 but before January 1, 2011, the total allowable Maine QTIP under Maine law is $2.5 million. This represents the difference between the Maine estate tax exclusion amount of $1,000,000 and the federal estate tax exclusion amount of $3.5 million as of 2009. For estates of decedents dying on or after January 1, 2011, the total allowable Maine QTIP under Maine law is calculated based on the federal exclusion amount as of the decedent’s actual date of death.

B. Maine elective property. If a decedent was predeceased by a spouse whose estate elected a deduction for a Maine QTIP, the remaining property in the Maine QTIP must be included in the value of the estate of the surviving spouse as Maine elective property. The value of the Maine elective property is measured at the death of the surviving spouse and is added to the federal tentative taxable estate of the surviving spouse to calculate the Maine taxable estate. If the estate of the surviving spouse is based on the alternate valuation date, then the same alternate valuation date is to be used for valuation of the Maine elective property.

.09 Qualified domestic trusts

If a federal Form 706-QDT is required, the estate must also file an amended Maine estate tax return, showing the taxable distribution as an increase to the predeceased spouse’s estate.

.10 Liability

A personal representative, trustee, grantee, donee, or other beneficial recipient of assets of an estate remains personally liable for the estate taxes until those taxes are paid. A personal representative may request a discharge of personal liability by filing a Certificate of Discharge of Personal Representative Liability, and upon payment of any estate tax due, may receive the discharge from liability as to any estate tax subsequently determined to be due. The estate, trustee, grantee, donee, or other beneficial recipient of assets of the estate remains liable for any Maine estate tax subsequently determined to be due.

.11 Liens and lien releases

Except as otherwise provided by law, an automatic lien for estate taxes, interest and penalties attaches to all Maine property (real and personal) owned by a decedent at death. The lien does not attach to any property passing by right of survivorship to a surviving joint tenant who was the decedent’s spouse on the decedent’s date of death. The lien continues until it is released by the State Tax Assessor, except that:

A. The lien is automatically released by operation of law when the personal representative of the estate, the trustee of a trust or surviving joint tenant of the property, each acting in the capacity of a fiduciary of the estate, transfers the property for value as defined pursuant to 36 M.R.S., Chapter 575. However, the lien continues to attach to any property that is transferred for less than its value or when transferred by any other party.

B. The lien is automatically released by operation of law ten years after the decedent’s date of death.

When a personal representative of an estate files a completed Certificate of Discharge of Estate Tax Lien, the Assessor will release the lien upon a showing by the estate that all taxes, interest, and penalties have been paid or a determination by Maine Revenue Services that no tax is due.

.12 Application date

This Rule applies to estates of decedents dying on or after January 1, 2011. This Rule does not apply to estates of decedents dying on or after January 1, 2013.

History

• STATUTORY AUTHORITY: 36 M.R.S.A. §112
• EFFECTIVE DATE: January 7, 2008 – filing 2008-3
• AMENDED: October 27, 2008 – filing 2008-494
• AMENDED: March 14, 2010 – filing 2010-79
• AMENDED: December 5, 2010 – filing 2010-609
• AMENDED: February 11, 2012 – filing 2012-15
• AMENDED: October 20, 2013 – filing 2013-249
• AMENDED: April 28, 2015 – filing 2015-077

Chapter 603 Maine Estate Tax after 2012

Code Me. R. 18-125 Ch. 603 Maine Estate Tax After 2012 {#sec-18-125-ch.-603 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 603}

SUMMARY: This rule explains in further detail the estate tax laws of the State of Maine for estates of decedents dying on or after January 1, 2013.

Outline of Contents:

.01 Definitions

.02 Federal laws

.03 Filing requirements

.04 Administrative expenses

.05 Gifts

.06 Valuation

.07 Sourcing

.08 Domicile

.09 Qualified terminable interest and Maine elective property

.10 Qualified domestic trusts

.11 Liability

.12 Liens and lien releases

.13 Application date

.01 Definitions

The following definitions apply with respect to this rule and 36 M.R.S., Chapter 577, except as the context may otherwise require.

A. Gap estate. “Gap estate” means the estate of a decedent where the value of the gross estate as of the decedent’s date of death or alternate valuation date is less than or equal to the federal exclusion amount pursuant to the Internal Revenue Code ( “Code”) § 2010, but more than the Maine exclusion amount under 36 M.R.S. § 4102(5).

B. Pass-through entity. “Pass-through entity” means a trust, a corporation that for the applicable tax year is treated as an S corporation under the Code or a general partnership, limited partnership, limited liability partnership, limited liability company or similar entity, that for the applicable tax year is not taxed as a C corporation for federal tax purposes.

C. Pro forma federal Form 706. “Pro formafederal Form 706” means federal Form 706 prepared as if it were required to be filed federally under the Code.

D. Surviving spouse. “Surviving spouse” means an individual who outlived the decedent and who was married, according to the laws of Maine, to the decedent at the time of the decedent’s death.

.02 Federal laws

Unless specifically provided by Maine law or regulations, Maine Revenue Services generally looks to federal law, including statutes, regulations, statements, policy, and related case law for guidance when interpreting analogous provisions of Maine estate tax law. However, the state death tax deduction contained in Code § 2058 must be disregarded.

.03 Filing requirements

A. Forms, statements and certificates

1. Form 706ME. If an estate is required to file a Maine estate tax return (Form 706ME), the personal representative must file the return with required attachments within nine months of the decedent’s date of death, unless an extension of time to file has been granted by Maine Revenue Services. If the estate is not required to file federal Form 706, but is required to file Form 706ME, a pro forma federal Form 706 must be attached to Form 706ME and must include all of the information, schedules and attachments that would be required if a federal Form 706 was required to be filed. A personal representative must file a Form 706ME with a Certificate of Discharge of Estate Tax Lien to request release of the statutory Maine estate tax lien under 36 M.R.S. § 4112 on Maine real property or tangible personal property.

2. Statement 700-SOV. Where an estate is not required to file a Maine estate tax return, the personal representative may submit statement 700-SOV after the date of death and request, along with a Certificate of Discharge of Estate Tax Lien, the release of the statutory Maine estate tax lien under 36 M.R.S. § 4112 on real or tangible personal property for estates with no tax liability. This statement does not constitute a return and no Maine estate tax closing letter will be issued.

3. Certificates of Discharge of Estate Tax Lien. A personal representative must file a Certificate of Discharge of Estate Tax Lien to request release of the statutory Maine estate tax lien on Maine real property. A personal representative must file a Certificate of Discharge of Estate Tax Lien on tangible personal property to request release of the statutory Maine estate tax lien under 36 M.R.S. § 4112 on personal property sourced to Maine.

B. Attachments. A personal representative must file attachments required by the State Tax Assessor (“Assessor”). Required attachments may include, but are not limited to, appraisals, wills and trust documents, any estate tax, gift tax, decedent’s income tax or fiduciary income tax return filed with the Internal Revenue Service (“IRS”) or another state or jurisdiction, proof of payment to the IRS or another state or jurisdiction, any document stating a request for an extension of time to file or pay, any applicable Life Insurance Statements (federal Form 712), financial statements, pension or annuity plan documents or statements, bank and brokerage statements, and a detailed list of miscellaneous property and documentation of its value. Restricted Use Appraisals may not be relied on to establish value.

C. Payment. Payment of any Maine estate tax due must be paid within nine months of the decedent’s date of death, unless a request for an extension of time to pay has been granted by the Assessor.

D. Amended returns. If the estate receives, or becomes entitled to, additional property that was not shown on the Maine estate tax return, the personal representative must file an amended Maine estate tax return within 180 days of the receipt of such property, even if the additional property does not result in an increase in the estate’s liability shown on the return. If federal Form 706 has been audited by the IRS and the IRS changed any item resulting in an increase in the estate’s liability shown on the Maine estate tax return, the personal representative must file an amended Maine estate tax return with a copy of the federal statement of changes and federal audit packet within 180 days of the change. When the federal gross estate has been finally determined by the IRS, a final determination of the Maine estate tax liability may be made for Maine estate tax purposes, notwithstanding the statute of limitations, a Maine estate tax closing letter, or any other determination by the Assessor.

E. Record retention. A personal representative must, for Maine estate tax purposes, retain complete records for the same period as required by the Code and federal regulations for estates that incur a federal estate tax liability, even if the estate has not incurred a federal estate tax liability.

F. Extensions

1. Extension of time to file. The Assessor may allow a reasonable extension of time to file the Maine estate tax return up to eight months from the original due date, as long as a payment reasonably estimating the tax due has been submitted on or before the original due date. A payment of at least 90% of the Maine estate tax due must be submitted to avoid late payment penalties. If a federal extension to file has been granted, a Maine extension to file is automatically granted equal to the federal extension period. If the federal extension that was granted is less than eight months, the Assessor may allow an extension up to a total of eight months upon the written request of the personal representative stating the reason for the extension request. If a federal estate tax return is not required, the Assessor may allow a reasonable extension up to eight months from the original due date without extension upon written request of the personal representative. If the required Maine estate tax return is not filed by the time the extension period expires, applicable penalties are calculated as if the Maine estate tax return was due on the original due date without extension.

2. Extension of time to pay. In order to receive an extension of time to pay the Maine estate tax, the personal representative must request an extension in writing and show that the estate has an inability to pay by the original due date. The Assessor may mandate a bond or other security. An extension of time to pay may be granted pursuant to 36 M.R.S. § 4108 for a reasonable period of time not to exceed one year from the date fixed for payment. The Assessor may grant successive extensions which in the aggregate may not exceed ten years unless a deferred payment arrangement is made under 36 M.R.S. § 4109. Interest accrues on any amount of tax not paid by the original due date.

G. Escrow agreements. At the request of the personal representative, the Assessor may allow, under terms the Assessor may require, an estate to establish an escrow account in favor of Maine Revenue Services in lieu of the tax bond typically required by the probate court to secure the estimated Maine estate tax liability or in exchange for the discharge of the Maine estate tax lien on estate property so that the property may be sold to pay the Maine estate tax.

.04 Administrative expenses

If a gap estate included administrative expenses in the calculation of the pro forma federal Form 706, and those expenses are also deducted on the estate’s federal fiduciary income tax return (Form 1041), the estate must make an addition modification on the Maine fiduciary income tax return (Form 1041ME). The addition modification must equal the administrative expenses deducted on federal Form 1041 that are also deducted on the pro forma federal Form 706.

.05 Gifts

The Assessor will disregard a gift and treat the decedent as the owner of the property where a gift has not been completed, incidents of ownership were retained by the decedent or where the gift otherwise would be disregarded under the Code, federal regulations, or IRS procedure or policy. In addition, where the decedent, within one year prior to the date of death, made taxable gifts as defined under the Code, the value of those taxable gifts will be included in the decedent’s estate in accordance with 36 M.R.S. § 4102. The value of taxable gifts is determined by the Assessor in accordance with the Code.

.06 Valuation

A. Determination. For Maine estate tax purposes, the value with respect to an estate or to property included in an estate, including Maine qualified terminable interest property (“QTIP”), is the value as determined by the Assessor in accordance with the Code, federal regulations and policy even if there is a final federal determination with respect to the valuation of the assets of the estate. Generally under federal law and thus, Maine law, the value of the federal gross estate of the decedent and property in the gross estate is determined by the fair market value of all the decedent’s assets at the time of death. The fair market value means the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts.

B. Alternate valuation date. The personal representative of an estate who has elected to value the estate for federal purposes using the alternate valuation date as determined under Code § 2032 must use the same valuation date for Maine estate tax. An estate may not elect alternate valuation for Maine purposes and date of death valuation for federal tax purposes. A Maine gap estate that, notwithstanding the federal exclusion amount, would have otherwise qualified for the election under federal law may elect alternate valuation by checking the appropriate box on the pro forma federal Form 706. Once made, the election to use alternate valuation may not be revoked. The election may be made on a late-filed return, provided it is filed not later than one year after the due date including extensions actually granted.

.07 Sourcing

A. Real property. Real property is sourced to the taxing jurisdiction in which it is physically located, regardless of whether the decedent was a Maine resident or nonresident on the date of the decedent’s death.

B. Tangible personal property. Tangible personal property is sourced to the taxing jurisdiction in which it was situated at the date of the decedent’s death. If an item of tangible personal property is temporarily situated in a taxing jurisdiction for repair or other temporary purpose, that item will be sourced to the taxing jurisdiction to which it is intended to be located after such repair or purpose.

Intangible property. Intangible property is sourced to the taxing jurisdiction of the decedent’s domicile as of the date of the decedent’s death. Intangible property includes, but is not limited to, bank accounts, stocks, bonds, brokerage and other cash accounts, except as otherwise provided by this rule.

Gifts. Taxable gifts made by the decedent within one year prior to death included in the decedent’s estate by 36 M.R.S. § 4102(7) are sourced consistent with .07(A), (B) and (C) above and (E) below on the date the gift was made.

E. Real or tangible personal property owned by a pass-through entity in the estate of a nonresident. For estates of nonresidents, when real or tangible personal property is owned by a pass-through entity, the entity must be disregarded and the property must be treated as personally owned by the decedent where the entity does not actively carry on a business for the purpose of profit and gain; the ownership of the property in the entity was not for a valid business purpose; or the property was acquired by other than a bona fide sale for full and adequate consideration and the decedent retained a power with respect to or interest in the property that would bring the real or tangible personal property located in this State within the decedent’s adjusted federal gross estate. The Assessor will determine whether the transfer was for a valid business purpose by looking at the economic realities of the transfer. Tax avoidance is not considered a valid business purpose.

.08 Domicile

The word “domicile” is a common-law (i.e., judge-made law) term that the Maine courts, not the Legislature or Maine Revenue Services, have defined. Under the Maine common law, “domicile” means the place (A) where a person resides, and (B) where that person intends to remain and, whenever absent, intends to return. Thus, according to the Maine courts, domicile has two components: residence and the intent to remain or return, if absent. The intent to move in the future is not sufficient to establish domicile. Once an individual’s domicile is established in Maine, it continues here until domicile is established elsewhere. An individual alleging a change in domicile has the burden to show that domicile was established in another state or country.

Where a decedent was domiciled at the date of death is a question of fact in which objective factors exhibiting the decedent’s actual location and intent may be relevant. Factors that may be relevant or excluded in determining a decedent’s domicile at the date of death include those relevant or excluded in determining income tax domicile (for more information see MRS Rule 807(.03) and (.04) 18-125 C.M.R., ch. 807, as well as the locations of significant relatives or an appointed attorney-in-fact for health care or financial decisions. Where the decedent qualified for financial assistance for health care, where the decedent had a contract for residence or care at a residential living facility, or where the decedent qualified as a statutory resident for income tax purposes may all be factors to be considered in determining domicile.

Maine Revenue Services considers allof an individual’s relevant facts and circumstances allowed by Maine law when it determines where that individual is domiciled. Although the individual’s intentto remain or returnis a factor in determining domicile, an individual’s statement as to his or her intent is not necessarily determinative. Evidence of the decedent’s intent may be found in many decisions made by that individual. The decedent may have retained the ability to make such decisions and determine his or her domicile even though the decedent was deemed incapable of making, or chose not to make, other decisions. Actions by a person who was responsible for an incapacitated individual’s affairs may be considered when determining the decedent’s intent to remain. When a guardian has been appointed and chooses the incapacitated individual’s place of abode pursuant to authority as a guardian, the intent of the guardian for the individual to remain or return to a particular location becomes a factor in the determination of the incapacitated person’s domicile. Evidence of the guardian’s intent may be found in relevant statements and actions.

.09 Qualified terminable interest and Maine elective property

A. Qualified terminable interest property. On an original timely-filed Maine estate tax return, the personal representative of a decedent with a surviving spouse may elect treatment for assets that are eligible to be treated as qualified terminable interest property (“QTIP”) under Code § 2056(b)(7). A Maine QTIP election may not be made on an amended Maine estate tax return unless such amended return is filed on or before the due date of the original Maine estate tax return plus extensions. The allowable Maine QTIP deduction may not be less than zero or greater than the amount by which the federal applicable exclusion amount under the Code § 2010 exceeds the Maine exclusion amount. For the purposes of this subsection, "federal applicable exclusion amount" does not include any deceased spousal unused exclusion amount under the Code § 2010. The Maine QTIP may not include property designated as federal QTIP property, nor may it include property included in adjusted taxable gifts. Maine QTIP property is tax-deferred for Maine estate tax purposes until the death of the surviving spouse.

B. Maine elective property. If a decedent was predeceased by a spouse whose estate elected a deduction for a Maine QTIP, the value of the remaining property in the Maine QTIP must be included in the value of the estate of the surviving spouse as Maine elective property. The value of the Maine elective property is measured at the death of the surviving spouse and is added to the federal taxable estate of the surviving spouse to calculate the Maine taxable estate. If the value of the estate of the surviving spouse is based on the alternate valuation date, then the same alternate valuation date is to be used for valuation of the Maine elective property. The value of Maine elective property is determined by the Assessor in accordance with the Code.

.10 Qualified domestic trusts

If a federal Form 706-QDT is required, the estate must also file an amended Maine estate tax return, showing the taxable distribution as an increase to the predeceased spouse’s estate, and pay any additional tax liability.

.11 Liability

A personal representative, trustee, grantee, donee, or other beneficial recipient of assets of an estate remains personally liable for any Maine estate tax until those taxes are paid. A personal representative may request a discharge of personal liability by filing a Certificate of Discharge of Personal Representative Liability and upon payment of any Maine estate tax due along with filing the Form 706ME, may receive the discharge from liability as to any Maine estate tax subsequently determined to be due. The estate, trustee, grantee, donee, or other beneficial recipient of assets of the estate remains liable for any Maine estate tax subsequently determined to be due.

.12 Liens and lien releases

Except as otherwise provided by law, an automatic lien for Maine estate tax, interest and penalties attaches to all Maine property (real and personal) owned by a decedent at death. The lien does not attach to any property passing by right of survivorship to a surviving joint tenant who was the decedent’s spouse on the decedent’s date of death. The lien continues until it is released by the Assessor, except that:

The lien is automatically released by operation of law when the personal representative of the estate, the trustee of a trust or surviving joint tenant of the property, each acting in the capacity of a fiduciary of the estate, transfers the property for value as defined pursuant to 36 M.R.S., Chapter 577. However, the lien continues to attach to any property that is transferred for less than its value or when transferred by any other party.

The lien is automatically released by operation of law ten years after the decedent’s date of death.

When a personal representative of an estate files a completed Certificate of Discharge of Estate Tax Lien, the Assessor will release the lien upon an initial showing by the estate that all taxes, interest, and penalties have been paid by filing Form 706ME showing any tax due has been paid or submitting Statement 700-SOV representing that no Maine estate tax is due.

.13 Application date

This Rule applies to estates of decedents dying on or after January 1, 2013.

History

• STATUTORY AUTHORITY: 36 M.R.S. § 112
• EFFECTIVE DATE: October 15, 2013 – filing 2013-250
• EFFECTIVE DATE: April 28, 2015 – filing 2015-078
• EFFECTIVE DATE: April 27, 2024 – filing 2024-093

Chapter 801 Apportionment

Code Me. R. 18-125 Ch. 801 Apportionment {#sec-18-125-ch.-801 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 801}

Summary: This rule explains apportionment for corporations, pass-through entities, sole proprietorships, and other business types that have income from business activity both within and without Maine as required by 36 M.R.S §§ 5142(6) and 5210-5211. For tax years beginning on or after January 1, 2022, this rule does not apply to a corporation unless that corporation has income tax nexus with Maine during the taxable year as determined in accordance with 36 M.R.S. §§ 5200-B and 5202-D, and MRS Rule 808 (18-125 C.M.R., ch. 808). This rule does not apply to financial institutions that are subject to the Franchise Tax contained in 36 M.R.S. §§ 5205–5206-G.

Outline of Contents:

Definitions

Determination of unitary business

Apportionment

Taxability in another state

Consistency

Sales factor

Corporate partners

Variations

Property value and factor

Payroll value and factor

Prorating deductions

Application date

Definitions

1. Affiliated group. “Affiliated group” means a group of two or more corporations in which more than 50 percent of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or non-corporate, or by one or more of the member corporations. 36 M.R.S. § 5102(1-B).
2. Costs of performance. “Costs of performance” means direct costs determined in a manner consistent with generally accepted accounting principles and in accordance with accepted conditions or practices in the trade or business of the taxpayer. In cases when it is impossible or impracticable to determine the costs of performance attributable to different states, the gross receipts from the performance of services attributable to this state are measured by the ratio that the time spent in performing the services in this state bears to the total time spent in performing the services everywhere. Time spent in performing services includes the amount of time expended in the performance of a contract or other obligation which gives rise to such gross receipts. Personal service not directly connected with the performance of the contract or other obligation, such as time expended in negotiating the contract, is excluded from the computations.
3. Domicile. “Domicile” means the principal place from which the business activities of a taxpayer are directed or managed. If it is not possible to determine the principal place from which the business activities of a taxpayer are directed or managed, the state of the taxpayer's incorporation is considered its state of domicile.
4. Income-producing activity . “Income-producing activity” means, for each separate item of income, the transactions and activity directly engaged in by the taxpayer for the ultimate purpose of obtaining gain or profit. For apportionment purposes, such activity does not include transactions and activities performed on behalf of a taxpayer, such as those conducted on the taxpayer’s behalf by an independent contractor. Income-producing activity includes, but is not limited to: 1. The rendering of personal services by employees or the utilization of tangible and intangible property by the taxpayer in performing a service; 2. The sale, rental, leasing, licensing the use of, or other use of real property; and 3. The rental, leasing, licensing the use of, or other use of tangible or intangible personal property.

E. Office. "Office” means a permanent or temporary location where a business entity makes sales or holds itself out to the public as conducting business. The home of a business’s sales representative is generally not an “office” of the business for purposes of this rule unless the representative is publicly held out as doing business on behalf of the business at that location, either by publishing the home address as the business’s own address or through other actions.

F. State. “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. 36 M.R.S. § 5210(6).

G. Taxpayer. “Taxpayer” for purposes of this rule means a corporation required to file a federal income return, a tax pass-through entity required to file a federal information return, a sole proprietorship required to file federal Form 1040, Schedule C, or any other business entity required to file a federal return. “Taxpayer” for purposes of this rule does not mean a partner or other owner of a pass-through entity, except where specifically stated.

H. Total time. “Total time” means the total number of days. Any portion of a day is counted as an entire day.

I. Unitary business. “Unitary business” means a business activity that is characterized by unity of ownership, functional integration, centralization of management, and economies of scale.

Determination of unitary business. The activities of a corporation or an affiliated group of corporations constitute a unitary business if those activities are integrated with, dependent upon and contributive to each other and to the operations of the corporation or group as a whole. The presence of any of the following factors creates a strong presumption that the activities of the corporation or group constitute a single trade or business:

1. All activities are in the same general line or type of business;
2. The activities constitute different steps in a vertically-structured enterprise; or
3. The corporation or group is characterized by strong centralized management, including but not limited to centralized departments for such functions as financing, purchasing, advertising, and research.

Apportionment. If the business activity of a taxpayer occurs both within and without Maine, and if by reason of such activity the taxpayer is taxable in another state, the portion of the net income (or net loss) derived from sources within Maine is determined by apportionment in accordance with 36 M.R.S. §§ 5142(6) and 5210-5211 and the provisions of this rule. A corporation or affiliated group of corporations may be engaged in more than one unitary business. In that event, the corporation or affiliated group of corporations must, for each line of business, separately apportion its income using the appropriate Maine apportionment factor. Maine utilizes a “water’s edge” combined reporting methodology for determining the apportionable income base. The income subject to apportionment is income required to be reported on the taxpayer’s federal income tax return as modified by Maine law. The apportionment factor must include only those amounts attributable to the apportionable income base for that taxable year. Variations may be allowed when petitioned for by the taxpayer or may be required by the assessor. 36 M.R.S. § 5211(17).

Taxability in another state

1. In general. A taxpayer’s income from business activity is taxable in another state if the taxpayer, by reason of such activity, is taxable in that state within the meaning of 36 M.R.S. § 5211(2).

A taxpayer is taxable in another state if:

• 1. By reason of business activity in another state, the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, as described in subsection B below; or 2. By reason of such activity, the other state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether the state actually imposes such a tax on the taxpayer, as described in subsection D below.

1. When a taxpayer is subject to a tax under 36 M.R.S. § 5211(2). A taxpayer is subject to one of the taxes specified in 36 M.R.S. § 5211(2) in another state if the taxpayer carries on activities in that state and the state imposes such a tax on the taxpayer. A taxpayer that asserts that it is subject to one of the specified taxes in another state must furnish to the assessor, upon the assessor’s request, evidence to support that assertion.

The assessor may request that such evidence include proof that the taxpayer has filed the requisite tax return in the other state and has paid any taxes imposed under the law of the other state.

1. Effect of voluntary tax payment. A taxpayer is not subject to one of the taxes specified in 36 M.R.S. § 5211(2) in another state if the taxpayer voluntarily files and pays one or more of the specified taxes when not required to do so by the laws of that state or pays a minimal fee for qualification, organization or for the privilege of doing business in that state, but (a) does not actually engage in business activity in that state, or (b) does actually engage in some business activity not sufficient for nexus with that state and the minimal fee bears no relationship to the volume of the taxpayer’s business activity within that state.
2. When a state or foreign country has jurisdiction to subject a taxpayer to a net income tax. The second test under subsection A, paragraph (2) above applies if the taxpayer’s business activity is sufficient to give the state jurisdiction to impose a net income tax by reason of such activity under the Constitution and statutes of the United States. Jurisdiction to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of Public Law 86-272 (15 U.S.C.A. §§ 381-385). The determination of whether a foreign country or a political subdivision thereof has jurisdiction to subject the taxpayer to a net income tax is made as though the jurisdictional standards applicable to a state of the United States, including P.L. 86-272, apply in that country. If jurisdiction is otherwise present, that country or political subdivision thereof is not considered to lack jurisdiction by reason of the provisions of a treaty between it and the United States.
3. Producing certain income exempt from Maine income tax. A taxpayer is not “taxable in another state” for purposes of 36 M.R.S. § 5211(2) if the only activities the taxpayer conducts in that other state are activities pertaining to the production of income that the State of Maine is prohibited from taxing by the laws or Constitution of the United States or by the Constitution of Maine.

Consistency

1. Year-to-year consistency. The taxpayer must disclose in its Maine return the nature and extent of any inconsistency between that return and its Maine returns for prior years with respect to the composition of its unitary business, the classification of income, the proration of business and constitutionally-exempt income deductions, and the determination of the sales apportionment factor.
2. State-to-state consistency. If the returns filed by a taxpayer for all states to which the taxpayer reports are not uniform in the composition of its unitary business, the classification of income, the proration of business and constitutionally-exempt income deductions, and the determination of the sales apportionment factor, the taxpayer must disclose in its Maine return the nature and extent of each variance.

Sales factor

1. Formula. The sales factor is a fraction in which the numerator is the total sales of the taxpayer in this State during the tax period and the denominator is the total sales of the taxpayer everywhere during the tax period, except that: 1. For tax years beginning on or after January 1, 2009, the formula must exclude from both the numerator and the denominator sales of tangible personal property delivered or shipped by the taxpayer, regardless of F.O.B. point or other conditions of the sale, to a purchaser within a state in which the taxpayer is not taxable within the meaning of 36 M.R.S. § 5211(2) and section .04 above. See 36 M.R.S. § 5211(14). To avoid duplication, intercompany sales between corporations in a unitary business must be eliminated from both the numerator and the denominator of the sales factor. 2. For tax years beginning on or after January 1, 2010, “total sales of the taxpayer” includes sales of the taxpayer and of any member of an affiliated group with which the taxpayer conducts a unitary business. The formula must exclude from both the numerator and the denominator sales of tangible personal property delivered or shipped by the taxpayer, regardless of F.O.B. point or other conditions of the sale, to a purchaser within a state in which the taxpayer is not taxable within the meaning of 36 M.R.S. § 5211(2) and section .04 above, unless any member of an affiliated group with which the taxpayer conducts a unitary business is taxable in that state in the same manner as a taxpayer is taxable under 36 M.R.S. § 5211(2) and section .04 above. 36 M.R.S. § 5211(14). To avoid duplication, intercompany sales between corporations in a unitary business must be eliminated from both the numerator and the denominator of the sales factor. For discussion of return reporting requirements for unitary business returns, see MRS Rule 810 (18-125 C.M.R., ch. 810). 3. For tax years beginning on or after January 1, 2013, the numerator of the sales factor does not include sales of a person whose only business activity in the State during the taxable year is the performance of services during a disaster period that are solely and directly related to a declared state disaster or emergency that were requested by the State, a county, city, town, or political subdivision of the State or a registered business. 36 M.R.S. § 5211(16-B).
2. Generally. “Sales” means all gross receipts of the taxpayer. “Sales” includes federal and state excise taxes (including sales taxes) if those taxes are passed on to the buyer or included as part of the selling price of the product. “Sales in this State” means all gross receipts of the taxpayer in the State of Maine including, but not limited to, receipts derived from the sale of tangible personal property pursuant to 36 M.R.S. § 5211(15) and receipts derived from the sale of other than tangible personal property pursuant to 36 M.R.S. § 5211(16-A). Interest income, service charges, carrying charges, or time-price differentials incidental to a sale must be included as sales in the state to which the sale is attributable, regardless of the place where the accounting records are maintained or the contract or other evidence of indebtedness is located. The following are rules for determining “sales” in various situations. 1. In the case of a taxpayer engaged in manufacturing and selling or purchasing and reselling goods or products, “sales” includes all gross receipts from the sales of such goods or products (or other property of a kind that would properly be included in the inventory of the taxpayer if on hand at the close of the tax period) held by the taxpayer primarily for sale to customers in the ordinary course of its trade or business. 2. In the case of cost-plus-fixed-fee contracts, such as the operation of a government-owned plant for a fee, “sales” includes the entire reimbursed cost plus the fee. 3. In the case of a taxpayer engaged in providing services, such as the operation of an advertising agency or the performance of equipment service contracts or research and development contracts, “sales” includes the gross receipts from the performance of such services, including fees, commissions, and similar items. 4. In the case of a taxpayer engaged in renting real or tangible property, “sales” includes the gross receipts from the rental, lease, or licensing the use of the property. 5. In the case of a taxpayer engaged in the sale, assignment, or licensing of intangible personal property such as patents and copyrights, “sales” includes the gross receipts therefrom. 6. If a taxpayer derives receipts from the sale of equipment used in its business, those receipts constitute sales. For example, a truck express company owns a fleet of trucks and sells its trucks under a regular replacement program. The gross receipts from the sales of the trucks are included in the sales factor. 7. “Sales” includes income from capitalized leases to the extent that the income from such leases is included in the federal gross income of the taxpayer.
3. Gross receipts. “Gross receipts” means the gross amounts realized (the sum of money and the fair market value of other property or services received, less any returns and allowances) on the sale or exchange of property, the performance of services, or the use of property or capital (including rents, fees, royalties, interest and dividends) in a transaction that produces income, in which the income or loss is recognized (or would be recognized if the transaction were in the United States) under the Internal Revenue Code. Amounts realized on the sale or exchange of property are not reduced for the cost of goods sold or the basis of property sold.

Gross receipts do not include, for example, such items as:

• 1. Repayment, maturity, or redemption of the principal of a loan, bond, or mutual fund or certificate of deposit or similar marketable instrument; 2. The principal amount received under a repurchase agreement or other transaction properly characterized as a loan; 3. Proceeds from issuance of the taxpayer’s own stock or from sale of treasury stock; 4. Damages and other amounts received as the result of litigation; 5. Property acquired by an agent on behalf of another; 6. Tax refunds and other benefit recoveries; 7. Pension reversions; 8. Contributions to capital (except for sales of securities by securities dealers); 9. Income from forgiveness of indebtedness; or 10. Amounts realized from exchanges of inventory that are not recognized by the Internal Revenue Code.

1. Sales of tangible personal property in this State. A sale of tangible personal property is in Maine if the property is delivered or shipped to a purchaser (other than the United States Government, see subsection E below) who takes possession within Maine regardless of F.O.B point or other conditions of sale.

Tangible property is delivered or shipped to a purchaser within Maine if:

• 1. the recipient is located in Maine, even though the property is ordered from outside Maine, and 2. the property is delivered or shipped to a purchaser within Maine if the shipment terminates in Maine, even if the purchaser subsequently transfers the property to another state.

The term “purchaser within Maine” includes the ultimate recipient of the property if the taxpayer, at the direction of the purchaser, delivers to or has the property shipped to the ultimate recipient within Maine.

When property being shipped by a seller from the state of origin to a consignee in another state is diverted to a purchaser in Maine, the sales are in Maine.

1. Sales of tangible personal property to the United States Government. Sales of tangible personal property to the United States Government are in this State if the property is shipped from an office, store, warehouse, factory, or other place of storage in this State. Generally, sales by a subcontractor to a prime contractor who is the party to the contract with the United States Government do not constitute sales to the United States Government.
2. Sales other than sales of tangible personal property. Receipts from the sales of other than tangible personal property must be sourced as follows below. When no sourcing rule is applicable, the sales must be sourced to fairly represent the extent of the taxpayer’s business activity in this State.

(1) Receipts from the performance of services. Generally, receipts from the performance of services must be sourced to the state where the services are received. Services may be received by a person other than the person who contracted for or paid for the services. The determination of where services are received is based on all available facts and is not limited to the books and records of the taxpayer or any person related to the taxpayer.

The determination of where a service is received is distinct from the determination of the amount of gross receipts under subsection C, above, from the performance of services that are attributed to Maine. A taxpayer’s inability or difficulty in determining the amount of receipts from the performance of services is distinct from a determination that the state where the services are received is not readily determinable.

• • 1. Non-business customer. When it is not readily determinable where the services were received, the services are deemed to be received at the home of the customer.

(b) Business customer. When it is not readily determinable where the services were received, the services are deemed to be received at the office of the business customer where the services were ordered in the regular course of the customer’s trade or business. If the ordering location cannot be determined, the services are deemed to be received at the office to which the services were billed.

(c) Federal government. If the customer is the federal government, the services are deemed to have been received in this State if the greater proportion of the income-producing activity is performed in this State than in any other state based on costs of performance.

(d) Variations under 36 M.R.S. § 5211 (17). Nothing in this subsection shall prohibit the taxpayer from petitioning for, or the assessor from requiring, an alternative apportionment method to calculate the taxpayer’s sales factor in order to fairly represent the extent of the taxpayer’s business activity in this state as provided under 36 M.R.S. § 5211(17) and section .08 of this rule.

Examples of Sourcing Receipts from the Performance of Services

Under the General Rule

In-Person Services

Example 1: Taxpayer Salon Corp. has retail locations in Maine and in other states where it provides hair cutting services to customers. The services provided at Salon Corp.’s Maine locations are received in Maine, and the receipts from the performance of such Maine hair cutting services are attributed to Maine. The services provided at Salon Corp.’s locations outside Maine, even when provided to Maine residents in those locations, are not received in Maine, and the receipts from the performance of those out-of-state hair cutting services are attributed outside of Maine.

Services concerning Real Property

Example 2(a): Taxpayer Landscape Corp. provides landscaping and gardening services in Maine and in neighboring states. Landscape Corp. provides landscaping services at the Maine vacation home of an individual who is a resident of another state and who is located outside Maine at the time the services are performed. Landscape Corp.’s services provided at the Maine location are received in Maine, and the receipts from the performance of such services are attributed to Maine.

Example 2(b): Same facts as in Example 2(a), except that Landscape Corp. provides the landscaping services to Retail Corp., a corporation with retail locations in several states, and the services are provided to Retail Corp.’s locations in Maine and in other states. Landscape Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that such services are provided to Retail Corp.’s locations in Maine.

Services concerning Tangible Personal Property

Example 3(a): Taxpayer Camera Corp. provides camera repair services at a Maine retail location to walk-in customers. In some cases, Camera Corp. repairs a camera that is brought to its Maine location at a Camera Corp. facility that is located in another state. In such cases, the repaired camera is then returned to the customer at Camera Corp.’s Maine location. Camera Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed to Maine.

Example 3(b): Same facts as in Example 3(a), except that a customer located in Maine mails the camera directly to the out-of-state facility owned by Camera Corp. to be fixed and receives the repaired camera back in Maine by mail. Camera Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed in Maine.

Services concerning Teaching/Training

Example 4(a): Taxpayer Seminar Corp. provides seminars in person in Maine. The seminars and the materials used in connection with the seminars are prepared outside the state, the instructors who teach the seminars include instructors that are resident outside the state, and the students who attend the seminars include students that are resident outside the state. Seminar Corp’s teaching/training services are received in Maine, and the receipts from the performance of such services are attributed to Maine.

Example 4(b): Same facts as in Example 4(a), but the seminar is provided online with students attending electronically from several states. In this case, the services are received in Maine only for those students attending electronically from Maine, and the receipts from the performance of such services are attributed to Maine only for those students attending electronically from Maine.

Advertising and Related Services

Example 5: Taxpayer Direct Mail Corp., a corporation that is based outside of Maine, provides direct mail services to its customer, Business Corp. Business Corp. contracts with Direct Mail Corp. to deliver printed fliers to a list of customers that is provided to it by Business Corp. Some of Business Corp.'s customers are in Maine, and some of those customers are in other states. Direct Mail Corp. uses the postal service to deliver the printed fliers to Business Corp.’s customers. Direct Mail Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that such printed fliers are delivered on behalf of Business Corp. to Business Corp.’s customers in Maine.

Example 6. Taxpayer Ad Corp., a corporation that is based outside of Maine, sells advertising and advertising-related services in Maine and in neighboring states. Ad Corp. enters into a contract with Business Corp., which is located outside Maine, to design and place advertisements to be displayed in Maine and to design fliers to be mailed to Maine residents. All of the design work is performed outside Maine. Ad Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that the advertisements are displayed in Maine and to the extent that the fliers are delivered on behalf of Business Corp. to Business Corp.’s customers in Maine.

Example 7: Taxpayer Network Corp., a corporation that is based outside of Maine, sells advertising time to customers pursuant to which the customers’ advertisements will run as commercials during Network Corp.’s televised programming as distributed by unrelated cable television, satellite television transmission companies, and its own broadcasts. Network Corp.’s services are received in Maine, and the performance of such services are attributed to Maine, to the extent that the audience for Network Corp.’s televised programming during which the advertisements run is in Maine.

Example 8: Taxpayer Web Corp., a corporation that is based outside of Maine, provides internet content to viewers in Maine and other states. Web Corp. sells advertising space to business customers pursuant to which the customers’ advertisements will appear in connection with Web Corp.’s internet content. Web Corp.’s internet advertising services are received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that the viewers or clicks of the internet advertising are in Maine.

Cable TV Services

Example 9: Taxpayer Cable TV Corp., a corporation that is based outside of Maine, has two revenue streams. First, Cable TV Corp. sells advertising time to customers pursuant to which the customers’ advertisements will run as commercials during Cable TV Corp.’s televised programming. Some of these customers, though not all of them, have a physical presence in Maine. Second, Cable TV Corp. sells monthly subscriptions to individual customers in Maine and in other states. Cable TV Corp.’s service of selling advertising time is received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that the audience for Cable TV Corp.’s televised programming during which the advertisements run is in Maine. Cable TV Corp.’s subscription services are also received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that Cable TV Corp.’s programming is received by customers in Maine.

Pharmacy Benefit Management Services

Example 10: Taxpayer PBM Corp., a corporation that is based outside of Maine, contracts with Insurer Corp. to provide pharmacy claims processing and adjudication services for Insurer Corp.’s plan members in Maine and other states. PBM Corp.’s services are received in Maine, and the receipts from the performance of such services are attributed to Maine, to the extent that Insurer Corp.’s members access their pharmacy benefits (including their prescription drug benefits) in Maine, such as at a retail pharmacy in Maine.

• 1. Gross receipts from the sale of patents, copyrights, or trademarks. Generally, gross receipts from the license, sale or other disposition of patents, copyrights, trademarks or similar items of intangible personal property must be attributed to this State if the intangible property is used in this State by the licensee. 1. Used in more than one state. When the intangible personal property is used by the licensee in more than one state, the income must be apportioned to this State according to the portion of use in this State. 2. Federal government. When the purchaser or licensee of the intangible personal property is the Federal Government, the receipts are attributable to this State if the greater proportion of the income-producing activity is performed in this State than in any other state based on the costs of performance. 2. Receipts from the sale, lease, or rental of real property. Generally, receipts from the sale, lease, rental or other use of real property must be sourced to this State if the real property is located in this State. 3. Receipts from the lease or rental of tangible personal property. Generally, receipts from the lease or rental of tangible personal property must be attributed to this State if the tangible personal property is located in this State. 4. Receipts from the sale of partnership interest. Gross receipts from the sale of a partnership interest must be sourced in accordance with 36 M.R.S. § 5211(16-A)(F). The gross receipts from the sale of a partnership interest is sourced to Maine by multiplying the gross receipts by the ratio of the original cost of the partnership’s tangible property located in Maine to the original cost of the partnership’s tangible property everywhere, determined at the time of the sale. A different ratio must be calculated if more than 50% of the value of the partnership’s assets consists of intangible property. The foregoing allocation calculations do not apply to the sale of a limited partner’s interest in an investment partnership when more than 80% of the value of the partnership’s total assets consists of intangible personal property held for investment, except that such property cannot include an interest in a partnership unless that partnership is itself an investment partnership. 5. Receipts from financial services. Receipts from financial services must be sourced to this State in accordance with 36 M.R.S. § 5206-E (2) (C) - (I) and as follows: 1. Interest, including fees and penalties in the nature of interest from loans located in this State, is determined at the time the original agreement was made; 2. Net gain attributed to this State from the sale of loans is determined based on the ratio of interest, fees and penalties from loans located in this State, determined in accordance with subparagraph (a), to interest, fees and penalties from all loans; 3. Interest, including fees and penalties in the nature of interest from credit card receivables, and receipts from fees (including annual fees) charged to credit card holders whose billing address is in this State; 4. Net gain attributed to this State from the sale of credit card receivables is determined based on the ratio of credit card interest, fees and penalties associated with credit card holders whose billing address is in this State to all credit card interest, fees and penalties; 5. Receipts from credit card reimbursement fees, including related payment processing fees, attributed to this State are determined based on the ratio of credit card interest, fees and penalties associated with credit card holders whose billing address is in this State to all credit card interest, fees and penalties; 6. Receipts from merchant discount, including related payment processing fees, are in this State if the commercial domicile of the merchant is in this State. The receipts are computed net of any credit card holder charge-backs, but are not reduced by any interchange transaction fees or by any issuer’s reimbursement fees paid to another for charges made by its credit card holders; and 7. Receipts from loan servicing fees attributed to this State are determined based on the ratio of interest, fees and penalties in the nature of interest from loans located in this State, determined in accordance with subparagraph (a), to interest, fees and penalties in the nature of interest from all loans. Loan servicing fees received for servicing secured or unsecured loans of another must be included in the numerator if the borrower is located in this State. 6. Gross receipts from the sale of goodwill. Receipts from the sale of goodwill must be sourced to this State according to the portion of use in this State based upon the previous taxable year’s sales factor for all sales. 7. Gross receipts from the sale of accounts receivable and the sale of collection services. Receipts from the sale of accounts receivable and collection services must be sourced as the underlying sales related to the debt were sourced.

Corporate partners.

1. Generally. A corporation with an interest in a pass-through entity, such as a partnership, limited partnership, limited liability partnership, limited liability company, S corporation, or other similar entity must include its distributive share of the pass-through entity income, loss, or deduction in calculating its income, in accordance with the Internal Revenue Code and 36 M.R.S. § 5102(8), and must apportion its income pursuant to paragraph D below. The character of any item included in the distributive share is determined as if it were realized or incurred directly by the corporation. The business of the pass-through entity is treated as the business of the corporation.
2. Taxable in Maine. A corporation that is not otherwise subject to Maine’s tax jurisdiction is nevertheless taxable in Maine if it is a partner, shareholder or member in a pass-through entity whose activities, if conducted directly by the corporation, would subject the corporation to the Maine corporate income tax.
3. Taxable in another state. A corporation is taxable in another state within the meaning of section .04 above if the corporation is a partner, shareholder or member in a pass-through entity with activities in that state that cause the pass-through entity or its partner, shareholder or member to be taxable in that state under the rules described in section .04 above.
4. Apportionment rules. In general, if a corporate partner, shareholder or member is taxable in another state, it must apportion its taxable net income using the sales factor in 36 M.R.S. § 5211(8). 1. Sales factor. In determining the denominator of its sales factor, a corporate partner, shareholder or member must include its pro rata share of the pass-through entity’s total sales during the pass-through entity’s taxable year. In determining the numerator of its sales factor, a corporate partner, shareholder or member must include its pro rata share of such sales in Maine. To avoid duplication, however, the following sales must be eliminated from both the numerator and denominator of the sales factor: 1. Sales by the corporation to the pass-through entity in an amount equal to the total of such sales multiplied by the corporation’s interest in the pass-through entity; and 2. Sales by the pass-through entity to the corporation in an amount not to exceed the total of all sales made by the pass-through entity multiplied by the corporation’s interest in the pass-through entity. 2. Pro rata share. For purposes of this section, a corporate partner’s, shareholder’s or member’s pro rata share of a pass-through entity’s sales shall be its percentage interest in pass-through entity profit or loss for the taxable year, as stated on the partner’s, shareholder’s or member’s Schedule K-1. However, if, under the pass-through entity agreement, a partner’s, shareholder’s or member’s share of gain or loss from the sale of particular pass-through entity assets is different from its profit or loss ratio stated on Schedule K-1, gross receipts from sales of such assets shall be attributed to its sales factor in the same proportion as the partner’s, shareholder’s or member’s interest in gain or loss from the sale. In the event of a termination or other change in a partner’s, shareholder’s or member’s interest during the taxable year, the partner’s, shareholder’s or member’s pro rata share of sales must be modified to reflect pass-through entity sales during the actual period that the partner, shareholder or member held its interest.

Variations

1. Special apportionment formulas. A taxpayer may petition for, or the assessor may require, an apportionment variation, if the apportionment provided by statute and this rule does not fairly represent the extent of the taxpayer’s business activity in the State. Nothing in this rule precludes the assessor from establishing appropriate procedures for determining the correct apportionment, including the use of separate accounting, determination of appropriate factors, or any other method to effectuate equitable apportionment.
2. Factors for corporate partners. The property and payroll factors of a special apportionment formula for a corporation with an interest in a pass-through entity may be proposed using the guidance below. 1. Property factor. In determining the denominator of its property factor, a corporate partner, shareholder or member must include its pro rata share of the total value of the pass-through entity’s real and tangible personal property, whether owned or rented, used during the pass-through entity’s taxable year. In determining the numerator of its property factor, a corporate partner, shareholder or member must include its pro rata share of the value of such property located in Maine. To avoid duplication, however, the following adjustments must be made to the value of any property leased or rented by the corporation to the pass-through entity or vice versa. 1. When a corporation rents property to the pass-through entity, the corporation must include the original cost of the property in its property factor. The pass-through entity must not include any portion of the value of this property in its property factor. 2. When the pass-through entity rents property to the corporation, the corporation must include in its property factor the sum of (i) the original cost of the property multiplied by the corporation’s percentage interest in the pass-through entity, plus (ii) eight times the net annual rental rate of the property multiplied by the difference between 100% and the corporation’s percentage interest in the pass-through entity. 2. Payroll factor. In determining the denominator of its payroll factor, a corporate partner, shareholder or member must include its pro rata share of the total compensation paid by the pass-through entity during the pass-through entity’s taxable year. In determining the numerator of its payroll factor, a corporate partner, shareholder or member must include its pro rata share of such compensation paid in Maine during the taxable year.

Property value and factor. The assessor may require taxpayers to provide information on tax returns on property value and factor. The property factor also may be used in appropriate circumstances in determining an apportionment variation, as provided under 36 M.R.S. § 5211(17). The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in Maine during the tax period, and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the tax period.

1. Real and tangible personal property. The term “real and tangible personal property” includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible personal property but does not include coin or currency.
2. Property used during the taxable year. Property is included in the property factor if it is actually used or is available for use or capable of being used during the tax period by the taxpayer. Property held in reserve or standby facilities or property held as a reserve source of materials must be included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includable in the factor. Property or equipment under construction during the tax period (except inventoriable goods in process) must be excluded from the factor until such property is actually used by the taxpayer. If the property is partially used by the taxpayer while under construction, the value of the property to the extent used must be included in the property factor. Property used by the taxpayer must remain in the property factor until its permanent withdrawal is established by an identifiable event such as its sale or the lapse of an extended period of time (normally, five years) during which the property is held for sale.
3. Property in transit; mobile property. Property in transit between locations of the taxpayer to which it belongs is considered to be located at the destination for purposes of the property factor. Property in transit between a buyer and seller that is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices must be included in the numerator according to the state of destination. The value of mobile or movable property, such as construction equipment, trucks or leased electronic equipment, that is located both within and without this State during the taxable year, is determined for purposes of the numerator of the property factor on the basis of total time within Maine during the taxable year. Automobiles assigned to traveling employees are included in the numerator of the factor of the state to which the employee's compensation is assigned under the payroll factor.
4. Valuation of owned property. Property owned by the taxpayer is valued at its original cost. “Original cost” means the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof, by reason of sale, exchange, abandonment, etc. However, capitalized intangible drilling and development costs are included in the factor whether or not they have been expensed for either federal or state tax purposes. If the original cost cannot be ascertained, the property must be included in the factor at its fair market value as of the date of its acquisition by the taxpayer.

Generally, the average value of all property owned by the taxpayer is determined by averaging the values at the beginning and ending of the tax period. However, the assessor may require or allow averaging of monthly values if substantial fluctuations in the values of the property exist during the taxable year or if property is acquired after the beginning of the taxable year or disposed of before the end of the taxable year.

1. Valuation of rented property. Property rented by the taxpayer is valued at 8 times the net annual rental rate. Subrentals are not deducted.

If property is used at no charge or rented for a rate other than a reasonable market rate, the property must be included in the property factor on the basis of a reasonable market rental rate.

The “annual rental rate” is the amount paid as rent for the property for a twelve-month period. When property is rented for less than a twelve-month period, the net rent paid for the actual period of rental constitutes the “annual rental rate” for the tax period. However, when a taxpayer has rented property for a term of 12 or more months and the current tax period covers a period of less than 12 months, the net rent paid for the short tax period must be annualized. If the rental term is for less than 12 months, the rent must not be annualized beyond its term. Rent will not be annualized because of the uncertain duration when the rental term is on a month-to-month basis.

“Rent” is the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use of the property and includes:

• 1. Any amount payable for the use of real or tangible personal property, or any part thereof, whether designated as a fixed sum of money or as a percentage of sales, profits or otherwise; 2. Any amount payable as additional rent or in lieu of rents, such as interest, taxes, insurance, repairs or any other items required to be paid by the terms of the lease or other arrangement but does not include amounts paid as service charges, such as utilities, janitor services, etc. If a payment includes rent and other charges unsegregated, the amount of rent must be determined by consideration of the relative values of the rent and the other items.

“Rent” does not include incidental day-to-day expenses such as hotel or motel accommodations, daily rental of automobiles, etc. “Rent” does not include royalties based on extraction of natural resources, whether represented by delivery or purchase. For this purpose, a royalty includes any consideration conveyed or credited to a holder of an interest in property that constitutes a sharing of current or future production of natural resources from such property, irrespective of the method of payment or how such consideration may be characterized, whether as a royalty, advance royalty, rental or otherwise.

Leasehold improvements are treated as property owned by the taxpayer regardless of whether the taxpayer is entitled to remove the improvements or of whether the improvements revert to the lessor upon expiration of the lease.

Payroll value and factor. The assessor may require taxpayers to provide information on tax returns on payroll value and factor. The payroll factor also may be used in appropriate circumstances in determining variations on the apportionment formula as provided under 36 M.R.S. § 5211(17). The payroll factor is a fraction, the numerator of which is the total amount of compensation paid in this State during the tax period by the taxpayer, and the denominator of which is the total compensation paid everywhere during the tax period.

1. Effect of accounting method. If a taxpayer has adopted the accrual method of accounting, all compensation properly accrued will be deemed to have been paid. However, compensation may be included in the payroll factor by use of the cash method if the taxpayer is required to report such compensation under that method for unemployment compensation purposes.
2. Base of operations. “Base of operations” means the taxpayer’s place of business from which an employee customarily begins work or to which the employee customarily returns at some other time to receive instructions, direction and supervision from the taxpayer or communications from customers or other persons, to replenish stock or other materials, to repair equipment, or to perform any other function necessary to the exercise of the employee’s trade or profession.
3. Compensation. The term “compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. Payments made pursuant to a contract to an employee-leasing company for leased employees are included at 85% as compensation or to a temporary service company for temporary employees are included at 100% as compensation. Payments made to an independent contractor, or any other person not properly classifiable as an employee, are excluded. Only amounts paid directly to employees are included in the payroll factor. Amounts considered paid directly include the value of board, rent, housing, lodging and other benefits or services furnished to an employee by the taxpayer in return for personal services provided that such amounts constitute income to the recipient under the Internal Revenue Code. In the case of employees not subject to the Internal Revenue Code (e.g., those employed in foreign countries), the determination of whether such benefits or services would constitute income to the employees is made as though such employees were subject to the Internal Revenue Code. Employer contributions under a retirement plan, qualified cash or deferred arrangement as defined in Internal Revenue Code § 401(k), and employer contributions to nonqualified deferred compensation plans are generally included in the payroll factor.
4. Employee. “Employee” means any officer of a corporation or any individual who would be considered an employee under the common law rules governing the employer- employee relationship. Generally, an individual is considered to be an employee if the individual is included by the taxpayer as an employee for purposes of the payroll taxes imposed by the Federal Insurance Contributions Act. This presumption may be overcome by evidence provided by a taxpayer that an individual who is included as an employee for purposes of the Federal Insurance Contributions Act would not be an employee of the taxpayer under the usual common law rules.
5. Independent contractor. “Independent contractor” means any individual who performs services for a taxpayer, but who is not an employee of the taxpayer, and who is not otherwise subject to the supervision or control of the taxpayer in the performance of the services.
6. Payroll in states in which taxpayer is not taxable. Compensation paid to employees whose services are performed entirely in a state where the taxpayer is immune from taxation, for example, by P.L. 86-272, is included in the denominator of the payroll factor.

Prorating deductions. In some cases, an allowable deduction may relate to both apportionable income and to income that Maine is prohibited from taxing by the laws or Constitution of the United States, or by the Constitution of Maine. 36 M.R.S. § 5200-A(2)(A) and (F). In such cases, the deduction must be prorated between apportionable income and exempt income in a manner that fairly distributes the deduction among the classes of income to which it is applicable.

Application date. Except where otherwise stated, this Rule applies to tax years beginning on or after January 1, 2010, except that, for tax years beginning on or after January 1, 2022, this rule does not apply to a corporation unless that corporation has income tax nexus with Maine during the taxable year as determined in accordance with 36 M.R.S. §§ 5200-B and 5202-D and MRS Rule 808 (18-125 C.M.R., ch. 808).

History

• STATUTORY AUTHORITY: 36 M.R.S. § 112(1)
• EFFECTIVE DATE: September 30, 1976
• AMENDED: December 31, 1979
• AMENDED: April 27, 1982
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: February 17, 2001
• AMENDED: March 12, 2008 – filing 2008-98
• AMENDED: February 8, 2009 – filing 2009-47
• AMENDED: September 12, 2010 – filing 2010-389
• AMENDED: March 19, 2011 – filing 2011-78
• AMENDED: April 5, 2015 – filing 2015-056
• AMENDED: April 20, 2022 – filing 2022-055
• AMENDED: June 25, 2025 – filing 2025-132
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: ______________________________

Chapter 803 Income Tax Withholding Reports and Payments

Code Me. R. 18-125 Ch. 803 Income Tax WITHHOLDING REPORTS AND PAYMENTS {#sec-18-125-ch.-803 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 803}

SUMMARY: This rule identifies income subject to Maine income tax withholding, prescribes the methods for determining the amount of Maine tax to be withheld, and otherwise clarifies the requirements under Maine law for withholding from wages, non-wage payments, consideration from real property sales, and pass-through entity income. It also explains the related reporting requirements, including mandated electronic filing.

Outline of Contents:

.01 Definitions

.02 General information

.03 Persons required to withhold Maine income tax

.04 Withholding from wage payments

.05 Withholding from non-wage payments

.06 Pass-through entity withholding for nonresident members

.07 Reporting

.08 Form W-4ME

.09 Payment

.10 Electronic filing and payment

.11 Registration

.12 Application date

.01 Definitions

Code. “Code” means the United States Internal Revenue Code of 1986 and amendments to that Code as of the date stated in 36 M.R.S. § 111(1-A).

Enrolled member. “Enrolled member” means an individual who is enrolled with, and appears on the tribal membership roll of, the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, or the Penobscot Nation. Membership rolls of enrolled members are in the possession of, and maintained by, the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, and the Penobscot Nation.

C. Foreclosure sale. For purposes of 36 M.R.S. § 5250-A, “foreclosure sale” means a sale of real property incident to a foreclosure and includes a mortgagee’s sale of real estate owned property of which the mortgagee, or third-party entity, retained or took ownership as the result of an unsuccessful attempt to sell the property at the time of a previous foreclosure auction.

D. Income. For purposes of calculating quarterly withholding amounts under Section .06(A) below, “income” means the actual income of the payee for a particular quarter or 25% of the payee’s annual income.

E. Maine-source member income. “Maine-source member income” means a member’s or owner’s share of net income of a pass-through entity apportioned to Maine in accordance with 36 M.R.S., chapter 821.

F. Net income of the entity. For purposes of Section .06 below,“net income of the entity” means the items of income, loss, and deduction of a partnership, limited liability company, or similar entity reported on federal Form 1065, or the items of income, loss, and deduction of an S corporation reported on federal Form 1120S.

G. Nonresident. For the purposes of Section .06 below, “nonresident” means:

1. For individuals, a natural person who is not a “resident individual,” as that term is defined by 36 M.R.S. § 5102(5). “Nonresident individual” is defined under 36 M.R.S. § 5102(3);

2. For business entities, including C corporations and pass-through entities, an entity whose commercial domicile is not in Maine. For purposes of this paragraph, “commercial domicile” means the principal place from which the business activities of a taxpayer are directed or managed. If it is not possible to determine the principal place from which the business activities of a taxpayer are directed or managed, the state of the taxpayer’s incorporation (or similar registration, if not a corporation) is considered its commercial domicile; and

3. For trusts and estates, a trust or estate that is not a “resident estate or trust” as that term is defined by 36 M.R.S. § 5102(4). “Nonresident estate or trust” is defined under 36 M.R.S. § 5102(2).

H. Pass-through entity. For purposes of Sections .03 and .06 below, “pass-through entity” means an entity that is treated as a partnership pursuant to subchapter K of the Code or an entity that has elected to be an S corporation under subchapter S of the Code. The term does not include financial institutions as defined in 36 M.R.S. § 5206-D(8).

I. Payer. “Payer” means any employer, entity, or other person required to withhold Maine income tax from certain payments.

J. Payee. “Payee” means any employee or other person receiving wages or other payment from a payer.

K. Person. “Person” has the same meaning as in 36 M.R.S. § 111(3).

Tribal land. “Tribal land” means land within the Houlton Band Trust Land as defined by 36 M.R.S. § 111(1-E), the Passamaquoddy Indian territory as defined by 36 M.R.S. § 111(2-A), or the Penobscot Indian territory as defined by 36 M.R.S. § 111(2-C).

Tribal member. “Tribal member” means an enrolled member of the Houlton Band of Maliseet Indians as defined by 36 M.R.S. § 111(1-D), the Passamaquoddy Tribe as defined by 36 M.R.S. § 111(2-B), or the Penobscot Nation as defined by 36 M.R.S. § 111(2-D).

.02 General withholding requirements

Maine law requires payers to withhold money from certain payments and remit that money to the State Tax Assessor (“Assessor”) for application against the Maine income tax liability of payees. The amount of withholding must be calculated according to the provisions of this rule and must constitute a reasonable estimate of the Maine income tax to be due on the payment. Amounts withheld must be paid over to Maine Revenue Services (“MRS”) on a periodic basis as provided by Maine law and this rule. Forms prescribed by the Assessor must be used for this purpose.

.03 Persons required to withhold Maine income tax

A. Generally. Any person who maintains an office or transacts business in Maine and who is required to withhold federal income tax from a payment must also withhold Maine income tax, unless the payment constitutes income that is excluded from taxation under Maine law.

B. Pass-through entities. A pass-through entity doing business in Maine must withhold Maine income tax for nonresident members based on Maine-source member income.

C. Voluntary withholding. A payer who is not otherwise required to withhold Maine income tax may register solely for the purpose of withholding Maine income tax if the payer and the payee agree to have Maine income tax withheld from payments to the payee. Once registered, the payer will be treated as a person required to withhold Maine income tax and must comply with the reporting and payment requirements set forth in this rule.

D. Buyers of real property. A buyer of real property located in Maine must withhold Maine tax from the consideration paid that is attributable to sellers of the property, in accordance with 36 M.R.S. § 5250-A and instructions or other guidance published by MRS. A buyer that withholds Maine income tax from a seller must file a withholding statement on forms prescribed by the Assessor identifying the seller, the amount withheld, and any other information required on the statement. In the case of multiple sellers of a single property, the buyer must complete a separate withholding statement for each seller subject to withholding.

.04 Withholding from wage payments

A. Wage methods. Any of the following methods may be used by persons responsible for withholding to determine the amount of Maine income tax to be withheld from payments subject to the federal wage method of withholding. Generally, the amount of withholding is determined based on the information provided on the Maine Employee’s Withholding Allowance Certificate (Form W- 4ME). The payroll period used to determine Maine income tax withholding is the same period used to determine federal income tax withholding or, if federal withholding is not required, the period that would be required to be used if federal income tax withholding were required.

1. Percentage method. The amount of tax to be deducted and withheld under the percentage method of withholding is determined using the applicable percentage method tax rate schedule and related instructions contained in the current year’s “Withholding Tables for Individual Income Tax” booklet prepared by the Assessor.

2. Wage bracket tables method. The amount of tax to be deducted and withheld under the wage bracket tables method is determined using the applicable wage bracket withholding table contained in the current year’s “Withholding Tables for Individual Income Tax” booklet with respect to the period in which such wages are paid. Each table consists of wage brackets that establish the tax to be withheld by number of withholding allowances.

3. Other methods. If neither the percentage method nor the wage bracket tables method of withholding properly reflects an amount substantially equivalent to the tax reasonably estimated to be due from an employee’s wages, either the person responsible for withholding or the payee may request permission from the Assessor to use an alternate method acceptable to both the payee and payer. As provided in Section .08 below, claiming a larger number of withholding allowances for Maine purposes than that calculated under this rule is not allowed unless a Personal Withholding Allowance Variance Certificate has been filed with, and approved by, the Assessor.

B. Wages paid to Maine residents working outside of Maine. If, for any payroll period, a payer is required to deduct and withhold income taxes of another state or other states from the wages paid to a resident of Maine, the payer shall deduct and withhold Maine income taxes in accordance with 36 M.R.S., chapter 827. For that payroll period, the Maine income tax withholding amount must be calculated on the basis of all of that person’s wages in all states and the result reduced by the amount required to be deducted and withheld from the wages under the laws, rules, or regulations of the other state or states. For the purposes of this subsection, “state” means a state of the United States, a political subdivision of any such state, the District of Columbia, or any political subdivision of a foreign country that is analogous to a state of the United States.

C. Exemptions from wage withholding are available as follows:

1. Withholding from payments to nonresidents. Generally, employers who are required to withhold federal income tax from wages to a nonresident employee must also withhold Maine income tax from those wages if the wages constitute Maine-source income that is not excluded from taxation under Maine law. A nonresident employee is not subject to Maine withholding unless that employee exceeds the minimum taxability thresholds in 36 M.R.S. § 5142(8-B) by performing personal services in Maine for more than 12 days and earning more than $3,000 in Maine during the taxable year. Performing certain personal services for up to 24 days during the taxable year, however, may not be counted toward the 12-day threshold. 36 M.R.S. § 5142(8-B)(C) and MRS Rule 806.02(G) and (H) (18-125 C.M.R., ch. 806.02(G) and (H)).

A nonresident employee who initially is exempt from Maine income tax withholding due to the nonresident taxability thresholds becomes subject to Maine income tax withholding immediately upon exceeding both the 12-day and $3,000 thresholds at any time during the taxable year. Because income earned by the employee in Maine prior to exceeding the thresholds becomes taxable once the thresholds are exceeded, employers should consult with employees in this situation to ensure that Maine withholding is adequate to cover Maine income tax liability for the tax year. This consultation may involve completion and submission of an amended Form W-4ME pursuant to Section .08 below.

2. Federal exemption from withholding. An employee who is exempt from federal income tax withholding is also exempt from Maine income tax withholding.

3. Election to be exempt from withholding. A resident employee who is subject to federal income tax withholding may elect to be exempt from Maine income tax withholding if the employee had no Maine tax liability for the prior calendar year and reasonably expects to have no Maine tax liability for the current year. The election must be made on Form W-4ME and expires at the end of the year in which it is made. If an employee who elected to be exempt from withholding fails to submit a Form W-4ME for the next calendar year, the employer must begin withholding for the next year as required above.

4. Tribal member. An employer is not required to withhold Maine income tax from wages paid to a tribal member who resides on tribal land if such wages are derived from or connected with sources on tribal land, as determined by 36 M.R.S. § 5132 and MRS Rule 825. This income does not constitute Maine taxable income under 36 M.R.S. § 5122(2)(ZZ). An employee must utilize Maine Form W-4ME to declare that they are a tribal member residing on, and earning wages derived from or connected with sources on, tribal land as determined by 36 M.R.S. § 5132 and MRS Rule 825. In the absence of such a declaration made by a tribal member on Maine Form W-4ME, the employer must withhold Maine income tax on the wages earned by the tribal member, whether derived from or connected with sources on or off tribal land, in accordance with 36 M.R.S. § 5250 and this rule.

.05 Withholding from non-wage payments

Generally. Except for income paid to a tribal member who resides on tribal land that is derived from or connected with sources on tribal land (as determined by 36 M.R.S. § 5132 and MRS Rule 825) where no withholding is required, withholding from non-wage payments is determined in accordance with subsections B through F of this section.

B. Flat rate withholding. Non-wage payments subject to flat rate federal withholding are subject to Maine withholding at a flat rate of five percent. Payments subject to flat-rate withholding include, but are not limited to, the following:

1. Reportable payments that are subject to federal backup withholding pursuant to Code § 3406;

2. Wages, interest, dividends, rent, and other payments to nonresident aliens of the United States that are subject to federal withholding under Code § 1441;

3. Payments to foreign corporations that are subject to federal withholding under Code § 1442;

4. Effectively connected income of a foreign partner when subject to federal withholding under Code § 1446;

5. Amounts received on the disposition of a Maine real property interest by a foreign person when subject to withholding under Code § 1445; and

6. Non-periodic distributions from certain retirement plans, including Individual Retirement Accounts (IRAs), employer-sponsored deferred compensation plans, and self-employed pension plans when subject to federal withholding.

C. Withholding from periodic retirement payments. Maine income tax withholding from periodic retirement payments that are treated as wages for federal income tax withholding purposes pursuant to Code § 3405(a) is calculated in the same manner as Maine income tax withholding from wages using the methods described in Section .04(A) above.

D. Federal exemption from withholding. Recipients of periodic retirement payments who elect to be exempt from federal income tax withholding are exempt from Maine income tax withholding.

E. Election to be exempt from withholding. Even if the periodic payments are subject to federal income tax withholding, recipients may elect to be exempt from Maine income tax withholding, provided the recipient certifies that the recipient had no Maine income tax liability for the prior calendar year and reasonably expects to have no Maine income tax liability for the current calendar year. The election must be made on Form W-4ME and remains in effect until the recipient generates a Maine income tax liability.

F. Withholding from gambling winnings. Payments of certain gambling winnings when subject to federal withholding under Code § 3402(q) are subject to Maine withholding at the highest marginal tax rate under 36 M.R.S. § 5111 applicable to the calendar year during which the winnings are paid plus any other tax applicable to the winnings under 36 M.R.S. Part 8 (Income Taxes). For calendar year 2023, the withholding rate is 7.15%.

.06 Pass-through entity withholding for nonresident members

A. Withholding and filing requirements.

1. Annual filing. A pass-through entity that has nonresident members that realize Maine-source member income shall file an annual return reporting information about the entity, nonresident members subject to withholding, nonresident members exempt from withholding, and any other information required by the Assessor. The return is due no later than March 15 following the end of the calendar year. If an entity has no income tax withholding liability for the period and has been granted an extension for filing its federal information return (such as Form 1065 or Form 1120S), the due date for filing under this section is extended for an equivalent period of time.

2. Withholding amount. Unless modified pursuant to this rule or by the Assessor, either by ruling on a specific request or in published instructions, a pass-through entity must withhold Maine income tax from nonresident members’ Maine-source member income at the rate of 8.93% in the case of a nonresident member taxed as a corporation. For all other nonresident members, the withholding rate is 7.15%.

3. Quarterly payments. An entity that is required to withhold more than $1,000 for the calendar year shall for each calendar quarter make estimated payments equal to 25% of the lesser of the following:

(a) 90% of the amount required to be withheld for the year, and

(b) The tax required to have been withheld for the prior calendar year, except that this subparagraph does not apply if the entity had a tax year of less than 12 months that ended during the preceding calendar year, the entity was not required to withhold for the prior calendar year, or the entity did not file a return under Section .06(A)(1), above, for the prior year.

The estimated payments for each calendar quarter are due on or before the following dates: April 30, July 31, October 31, and January 31 of the following year.

The Assessor shall prescribe the voucher required to be filed with the quarterly payments. Any remaining tax due must be paid by the due date of the annual return required in paragraph 1, without regard to any extension for filing. In the case of any underpayment of estimated tax, interest shall accrue at the rate provided in 36 M.R.S. § 186 on the amount of the underpayment beginning with the due date of the installment and ending on the due date of the annual return or the date of payment, whichever is earlier. Interest and penalties also apply with respect to payments made after the due date of the annual return in accordance with the provisions of Title 36 of the Maine Revised Statutes.

B. Tiered pass-through entity structures.

1. A tiered-entity structure is one in which some or all of the ownership interest in one pass-through entity (lower-tier entity) is held by a second pass-through entity (upper-tier entity). A tiered-entity structure may have two or more tiers.

2. Unless exempt pursuant to this rule or by the Assessor, either by ruling on a specific request or in published instructions, a pass-through entity must withhold for its nonresident members, including members who are pass-through entities. To prevent multiple withholding on the same income, an upper-tier entity that recognizes distributive income is not required to withhold from nonresident member income generated by a lower-tier entity if the lower-tier entity has already withheld from that income. The upper-tier entity, however, must separately report to its members on Form 1099ME their proportionate distributive share of amounts withheld by the lower-tier entity.

3. Upon written application, and with the approval of the Assessor, a lower-tier entity may meet its withholding obligation for an upper-tier entity by directly withholding from the distributive income of the nonresident members of the upper-tier entity. If approval is granted, the lower-tier entity is required to report on Form 1099ME directly to the nonresident members the amounts withheld.

C. Exemptions.

1. Automatic exemptions. A pass-through entity is not required to withhold tax for a nonresident member if any of the following applies:

(a) The nonresident member’s Maine-source member income from the entity will be less than $1,000 for the current year.

(b) The nonresident member is a tax-exempt entity under either Maine law or federal law (including IRAs, Keoghs, pension and profit-sharing plans, and other such organizations), unless the Maine-source member income of the tax-exempt entity is unrelated business income.

(c) The nonresident upper-tier pass-through entity realizes income from a lower-tier entity and the lower-tier entity has already withheld from that income.

(d) The entity is a publicly traded partnership that is treated as a partnership under Code § 7704.

(e) The nonresident member is a publicly traded partnership that is treated as a partnership under Code § 7704.

(f) The entity is prohibited under federal or state law from making distributions to members; the exemption applies only for years in which distributions are prohibited under federal or state law. Contractual restrictions on distributions, such as loan covenants or organizational documents, do not qualify an entity for this exemption.

(g) The entity is an out-of-state supplier of spirits sold to the Bureau of Alcoholic Beverages and Lottery Operations (BABLO) and its Maine business activities are limited to the activities described in 36 M.R.S. § 5202-D(2).

2. Compliant taxpayer exemption. To be exempt under the compliant taxpayer exemption, each nonresident member must sign and submit to the entity a Nonresident Member Affidavit and Agreement to Comply with Maine Income Tax (Form 941AF-ME). The exempt status of each nonresident member submitting an affidavit must be reported on the Pass-through Entity Withholding Form 941P-ME filed for the calendar year. The nonresident member must not have been previously disqualified from this exemption and must continue to stay in compliance by submitting required returns.

3. Composite filing exemption. A composite filing is a simplified group income tax return filed by a pass-through entity on behalf of two or more participating eligible persons as defined in MRS Rule 805.01(D) (18-125 C.M.R., ch. 805.01(D)) that are nonresident members of such pass-through entity. To be allowed a composite filing exemption, the entity must collect a Nonresident Member Affidavit and Agreement to Participate in a Composite Filing of Maine Income Tax (Form 941CF-ME) from each nonresident member that is participating in the composite filing. The exempt status of each nonresident member participating in a composite filing must be reported on the Pass-through Entity Withholding Form 941P-ME filed for the calendar year. The entity must also make estimated payments on behalf of the composite filing group. The entity must file the composite return, including Schedule 1040C-ME, even if there is no tax liability for the group. Composite return requirements are outlined in MRS Rule 805 (18-125 C.M.R., ch. 805).

4. Requested exemptions. An exemption applies if the Assessor has determined in writing, and subject to any conditions that may be imposed, that the nonresident member’s Maine-source member income is exempt from withholding.

5. Revocation of exemptions. The Assessor may revoke an exemption at any time. If an exemption is revoked, the entity will be notified in writing and must begin withholding immediately.

D. Partnership audits; federal adjustments report. A partnership with partners required to file a federal adjustments report under 36 M.R.S. § 5196(1) and, in the reviewed year of the audit, with Maine-source member income of those partners subject to withholding in accordance with 36 M.R.S. § 5250-B and this rule, must, within 180 days of the final determination date of the partnership-level audit, file an amended return for the reviewed year to report the additional pass-through entity withholding due determined in accordance with the provisions of 36 M.R.S. § 5250-B and this rule as they were in effect for the reviewed year. The amended return under this subsection must exclude partners included in the amended composite return required by MRS Rule 805.07(B) (18-125 C.M.R., ch. 805.07(B)) for the same reviewed year. For purposes of this subsection, the final determination date is the date on which the partnership submits a request, for any relevant partner, for a modification pursuant to the Code § 6225(c)(2)(A) or (B).

.07 Reporting

A. Generally. Every person that deducts and withholds Maine income tax under 36

M.R.S. §§ 5250, 5250-B, 5255-B, and 5255-C must, for each calendar quarter, on or before the last day of the month following the close of the calendar quarter or such other reporting period as the Assessor may require, file a withholding return and remit payments as prescribed by the Assessor. The Assessor shall prescribe the voucher required to be filed with the payments. Separate withholding accounts must be separately maintained for pass-through entity withholding and for employee wage withholding. Separate reporting is required using different returns and forms for each withholding type. A withholding agent for a person required to remit withholding may remit and report withholding on behalf of the person if authorized in writing to do so by the person.

B. Quarterly return. In general, every person required to make a return of income tax withheld pursuant to 36 M.R.S. §§ 5250, 5255-B, and 5255-C must make a return for the first calendar quarter in which the person is required to deduct and withhold such tax and for each subsequent calendar quarter, whether or not income subject to withholding is earned or payments subject to withholding are made therein, until the person is no longer required to make such returns and has so notified the Assessor. The quarterly return must include the name, identification number, and amount withheld from each payee subject to withholding during the calendar quarter.

C. Payee or member information statement. Pursuant to 36 M.R.S. § 5251, payers are required to furnish to the payee a copy of the federal Wage and Tax Statement (Form W-2) in the case of an employee or the appropriate federal information statement (such as Form 1099 series) for payments other than wages. In the case of a member of a pass-through entity, the information statement is Maine Form 1099ME.

For Maine purposes, a statement must be furnished to a payee on or before the date that the related federal statement must be furnished to the payee. Under 36 M.R.S. § 5251-A, a person who willfully fails to furnish a statement by the due date, or who willfully furnishes a false or fraudulent statement, commits a civil violation and is subject to a fine of $50 for each such failure or each such furnishing.

Copies of Forms W-2 provided to nonresident employees working in Maine must separately identify Maine-source income and Maine withholding in the boxes provided for state information. Public employers who participate in the Maine Public Employees Retirement System (MEPERS) must enter the employee’s share of MEPERS contributions in Box 14 of Form W-2 with the designation MEPERS. Employers must maintain sufficient records to identify the Maine-source wages paid to each of their employees during the year and to document the number of days worked by each employee in Maine, even if the employee is exempt from Maine income tax or Maine withholding. In addition to following all federal legal requirements for filing Wage and Income Information Statements (such as Forms W-2, W-2G and 1099), the information filed with the Assessor must include Maine-source income and withholding information.

D. Filing employee and other payee or member information statements.

1. Generally. A payer is required to file annual Wage and Tax Statements and federal information statements with the Assessor electronically in accordance with electronic filing specifications issued by MRS under the following circumstances.

(a) An employer or payroll processor required to electronically file Forms W-2 with the Social Security Administration must report Forms W-2 information to MRS for all employees who are Maine residents and for all employees who have Maine-source income.

(b) A payer required to electronically file with the IRS any type of 1099 form (such as 1099-DIV, 1099-B, 1099-G, 1099-INT, 1099-MISC, 1099- OID, 1099-PATR or 1099-R) must report such form information to MRS for Maine residents and recipients of payments sourced to Maine.

(c) A payer who is licensed to conduct pari-mutuel wagering pursuant to 8 M.R.S. §§ 271 or 275-D, or who is licensed to operate a slot machine pursuant to 8 M.R.S., chapter 31, subchapter 2, must report Form W-2G information to MRS for each payee for whom a statement is required to be provided to the payee under federal law or regulation.

(d) Any payer who withheld Maine income tax from any payee during the year and did not report the amount of Maine withholding for each of those employees or payees on Form 941-ME, Schedule 2 must report annual payee statement information (Forms W-2 and 1099 series) with MRS for all payees who are Maine residents or who received Maine-source income.

2. Penalty. A person who is required by the Assessor to file a return of information on or after January 31, 2022, in accordance with 36 M.R.S. § 5242 and this rule and who fails to do so, or willfully files a false or fraudulent return of information, is subject to a penalty of $50 for each such failure or each such filing.

E. More frequent reporting. The Assessor may require more frequent reporting if the Assessor believes that the collection of withheld taxes is in jeopardy or if the Assessor determines that any person required to deduct and withhold Maine income tax has failed to collect, truthfully account for, or pay over such tax or has failed to file returns in a timely manner.

F. Adjustment of overpayments

1. Within a reporting period. If a payer deducts and withholds more than the correct amount of tax required by 36 M.R.S., chapter 827 from a payee but repays the amount of the overcollection to the payee before the return for the period is filed with the Assessor and obtains a written receipt from the payee, the employer or other payer need not report on the return, or pay to the Assessor, the amount of the overcollection. Any overcollection not repaid to and receipted in writing by the payee must be reported and paid to the Assessor with the return for the return period in which the overcollection was made.

2. Within a calendar year. If, in any return period in a calendar year, a payer deducts and withholds more than the correct amount of tax required by 36 M.R.S., chapter 827 from a payee and the amount of such overcollection is paid to the Assessor, the payer may reimburse the payee in any subsequent return period within the calendar year. If the amount of the overcollection is repaid to the payee, the payer must retain a written receipt showing the date and amount of the repayment. The payer may then file an amended return with the Assessor for the period in which the overcollection was made, reporting the correct amount of withholding for the period. The amended return must contain such information as is required by the instructions relating to the form. If the payer does not repay the amount of the overcollection, the payer may, within the same calendar year of the overcollection, reduce the Maine withholding amount otherwise required for that calendar year by the amount of the overcollection. In this case, no amended return is required. For information regarding claiming a refund of an overpayment of withheld income taxes, see Section .09(E), below.

.08 Form W-4ME

A. Maine Employees’ Withholding Allowance Certificate (Form W-4ME). A payee must furnish the payer with a signed Maine Employee’s Withholding Allowance Certificate (Form W-4ME) on the same date as the payee furnishes the payer with the required federal Employee’s Withholding Certificate (Form W-4 or W-4P). The payee must indicate on the Maine certificate the same marital status claimed on the federal certificate, except that a married payee may elect withholding at the higher single rate on the Maine certificate by checking the “married, but withholding at higher single rate” box. The Maine certificate must also list the number of withholding allowances the payee claims for Maine withholding, as determined in accordance with this rule.

If the payee is required to provide the payer with a revised federal Form W-4 or W-4P because of a change in status and that change also affects information contained on the payee’s Form W-4ME, the payee must complete a new Form W-4ME on the same date to reflect the same change. The revised Form W-4ME takes effect on the same date as the revised federal Form W-4 or W-4P.

For individuals who do not qualify for a Maine exemption from withholding, the maximum number of Maine withholding allowances is calculated as follows:

1. An individual is allowed an allowance if they cannot be claimed as a dependent by another taxpayer;

2. An individual is allowed an additional allowance for their spouse if they will file as married filing jointly and the spouse cannot be claimed as a dependent by another taxpayer;

3. An individual is allowed an additional allowance if they will be filing as Head of Household; and

4. An individual is allowed an additional allowance for each child and dependent for whom they will be able to claim the federal child tax credit or the federal credit for other dependents.

An individual may claim fewer allowances than the individual is entitled to claim without seeking approval. An individual who wants to claim more allowances than would be calculated for that individual under this rule must file a Personal Withholding Allowance Variance Certificate to obtain permission from the Assessor.

B. Submission by employer of certain Maine Forms W-4ME. An employer/payer is required to submit a copy of Form W-4ME, along with a copy of any supporting information provided by the employee/payee, to MRS if:

1. The employer is required to submit a copy of federal Form W-4 to the Internal Revenue Service either by written notice or by published guidance as required by federal regulation 26 C.F.R. 31.3402(f)(2)-1(g); or

2. An employee performing personal services in Maine furnishes a Form W- 4ME to the employer containing a non-Maine address and, for any reason, claims no Maine income tax is to be withheld. Submission of a Form W-4ME is not required if the employer reasonably expects that the employee will earn annual Maine-source income of less than $5,000.

The copies of Form W-4ME required by this subsection must be submitted directly to the Withholding Unit at MRS separately from any other tax filings.

C. Missing or invalid Form W-4ME. In any of the circumstances described in this subsection, a payer must withhold as if the payee is single and claiming no allowances. Maine income tax must be withheld at this rate until such time that the payee provides a valid Form W-4ME.This subsection applies when:

The payee has not provided a valid, signed Form W-4ME;

2. The Assessor notifies the payer that the payee’s Form W-4ME is invalid; or

3. The payee’s Personal Withholding Allowance Variance Certificate has expired, a new variance certificate has not been approved and submitted to the payee, and the payee has not provided the payer with a valid Form W-4ME.

If at any time the Assessor determines that the amount being withheld is inadequate, the Assessor may notify the payer of that determination and inform the payer of the appropriate withholding rate. The withholding rate specified by the Assessor will then remain in effect until the Assessor notifies the payer that the payer no longer is required to use that withholding rate. At that time, the payee may complete a new Form W-4ME and submit it to the payer.

D. Electronic Form W-4ME. A payer may establish a system for its payees to submit Form W-4ME to the payer electronically. Such a system must include the following:

1. The electronic system must ensure that the information received by the payer reflects the information furnished by the payee and must document all occasions of payee access that result in the filing of a Form W-4ME. In addition, the design and operation of the electronic system, including access procedures, must ensure with reasonable certainty that the person accessing the system and filing the Form W-4ME is the payee identified in the form.

2. The electronic system must provide the payer with exactly the same information as the paper Form W-4ME.

3. The electronic filing must be signed by the payee under penalties of perjury.

(a) The jurat (i.e., the perjury statement) must contain the language that appears on the paper Form W-4ME. The electronic program must inform the payee that the payee must make the declaration contained in the jurat and that the declaration is made by signing the Form W-4ME. The instructions and the language of the jurat must immediately follow the payee’s income tax withholding selections and immediately precede the payee’s electronic signature.

(b) The electronic signature must identify the payee submitting the electronic Form W-4ME and authenticate and verify the submission. The terms “authenticate” and “verify” have the same meaning that they do when applied to a written signature on a paper Form W-4ME. An electronic signature can be in any form that satisfies the requirements of the Assessor. The electronic signature must be the final entry in the payee’s Form W-4ME submission.

4. Upon request by the Assessor, the payer must supply to the Assessor a paper copy of the electronic Form W-4ME and a statement that, to the best of the payer’s knowledge, the named payee is the person who filed the electronic Form W-4ME. The paper copy of the electronic Form W-4ME must provide exactly the same information as (but need not be a facsimile of) the paper Form W-4ME.

5. The electronic system must not allow the payee to modify or file an electronic Form W-4ME that does not comply with a notice as described in Section .08(C) above, specifying the amount or rate of withholding.

E. Requests for increased withholding. A payee may request that the payer deduct and withhold an additional amount from wages or other periodic payments. The payer must comply with the payee's request, except that the amount deducted and withheld cannot exceed the payment amount that remains after the payer has deducted and withheld all amounts otherwise required to be deducted and withheld by federal and state law. The payee must make the request for the additional withholding amount on a Form W-4ME.

F. Personal Withholding Allowance Variance Certificate. A payee may not claim a number of Maine withholding allowances that exceeds the number of allowances that would be calculated for that individual under this rule without furnishing to the payer a Personal Withholding Allowance Variance Certificate approved by the Assessor. The payee must complete the Personal Withholding Allowance Variance Certificate according to the instructions and submit it to the Assessor for approval. If approved by the Assessor, the payee may then submit the approved variance certificate to the payer along with an otherwise properly completed Form W-4ME to support the number of allowances claimed.

An approved variance certificate is valid only until December 31 of the year issued. Upon expiration of a variance certificate, the payer must withhold pursuant to Section .08(C) above, until such time the payee provides the payer a new variance certificate approved by the Assessor or submits a valid Form W-4ME.

.09 Payment

A. Payment schedule. A payer must remit the withheld tax in accordance with one of two schedules based on an annual determination pursuant to Section .09(C) below. The two remittance schedules are semi-weekly and quarterly. Pass-through entity withholding under Section .06 above must be remitted quarterly.

B. Lookback period defined. The lookback period for each calendar year is the 12- month period ending on the preceding June 30. For example, the lookback period for calendar year 2021 is July 1, 2019 through June 30, 2020.

C. Determination of status. Excluding pass-through entity withholding under Section .06 above, the determination of a payer’s remittance schedule for a calendar year is based on the aggregate amount of withheld taxes reported by the withholder for the lookback period. New payers are treated as having an income tax withholding liability of zero for any calendar quarter within the lookback period during which the withholder did not exist.

1. Semi-weekly remitters. A payer must remit on a semi-weekly basis for the entire calendar year if the aggregate amount of withholding reported for the lookback period was $18,000 or more. A semi-weekly remitter must remit according to the following schedule:

Day Wages Paid:

Remittance Due:

Wednesday, Thursday, Friday

On or before the following Wednesday

Saturday, Sunday, Monday, Tuesday

On or before the following Friday

If a quarterly reporting period ends within a semi-weekly period, and if wages are paid on payment dates that fall in each of the two quarters, separate remittances must be made for each quarter in a manner that clearly identifies the correct quarterly reporting period for each remittance. For example, if one quarterly return period ends on Thursday and a new quarterly return period begins on Friday, tax withheld from payments made on Wednesday and Thursday is subject to one remittance requirement and tax withheld from payments made on Friday is subject to a separate remittance requirement.

2. Quarterly remitters. A payer is a quarterly remitter for the entire calendar year if the aggregate amount of withholding reported for the lookback period was less than $18,000. The quarterly remitter must remit the amount withheld from payments made during a calendar quarter on or before the last day of the month following the close of the calendar quarter. If paying by check, the payment must accompany the quarterly return.

D. Interest and penalty. If a required return is filed late or a required payment is paid late, interest and penalties as provided in Title 36 of the Maine Revised Statutes may apply.

E. Refund of income tax withheld. A payer who pays to the Assessor more than the correct amount of income tax withheld may file a claim for refund of the overpayment by filing an amended return in accordance with this subsection and Section .07(F)(2) above for the period for which the overpayment is made. The amended return must be filed within the statute of limitations period for requesting a refund. 36 M.R.S. § 5278. Overpayments of withheld income tax remitted for periods occurring in a prior calendar year will be refunded only to the extent that the overpayment is not attributable to tax actually deducted and withheld from the payee and only to the extent that the payee has not already filed a tax return claiming the overpaid withholding amount. Any amount actually withheld from a payee during a prior calendar year, even if in error, must be claimed as a credit by the payee on that individual’s personal income tax return.

.10 Electronic filing and payment

A. Electronic filing of returns. Payers and payroll processors that meet any one of the thresholds specified in MRS Rule 104 (18-125 C.M.R., ch. 104) must electronically file original quarterly returns for Maine income tax withholding (Form 941ME).

B. Electronic funds transfer (EFT). The Assessor accepts payments by EFT. Generally, a person with an annual Maine income tax withholding liability that meets the threshold specified in MRS Rule 102 (18-125 C.M.R., ch. 102) must remit the required amounts electronically. Payroll processors, however, must remit all Maine income tax withholding payments electronically, regardless of annual liability. Others may participate in EFT voluntarily. The payment voucher, Form 900ME, must not be filed when remitting by EFT. Withholders that remit by EFT must still file the quarterly return to report withholding information.

.11 Registration

A. Registration by persons required to withhold income tax. Persons required by Maine law to withhold or who voluntarily withhold Maine income tax must register with the MRS Central Registration Unit or via the Maine Tax Portal as a withholder. Registration is accomplished by completing the application form provided by the Assessor and submitting it according to the instructions on the form or via electronic registration.

B. Cancellation of withholding registration. A person who is registered to withhold Maine income tax but who no longer has a withholding obligation must notify the Assessor that withholding is no longer required and ask that the withholder’s account be canceled. The notification must be submitted on the cancellation form provided by the Assessor or via the Maine Tax Portal and must include the reason that Maine income tax withholding is no longer required and the date the withholding obligation ceased. If the business has been sold or otherwise transferred to another person, the name and address of that other person and the date of the sale or transfer must be included. If no such sale or transfer occurred, or the employer or other payer does not know the name of the person to whom the business was sold or transferred, that fact must be included in the notification.

.12 Application date

Except where otherwise stated, this rule applies to tax periods beginning on or after January 1, 2024.

History

• STATUTORY AUTHORITY: 36 M.R.S. § 112
• EFFECTIVE DATE: January 1, 1982
• AMENDED: February 3, 1987
• AMENDED: February 17, 1991
• AMENDED: June 28, 1992
• AMENDED: January 1, 1993
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: March 23, 1996
• AMENDED: January 1, 1997
• AMENDED: February 11, 1998
• AMENDED: January 1, 1999
• AMENDED: October 15, 2003 - filing 2003-358
• REPEALED AND REPLACED: September 19, 2006 – filing 2006-409
• AMENDED: February 11, 2008 – filing 2008-69
• AMENDED: October 14, 2008 – filing 2008-479
• REPEALED AND REPLACED: April 3, 2010 – filing 2010-109
• AMENDED: September 12, 2010
• AMENDED: August 29, 2012
• AMENDED: April 5, 2015 – filing 2015-057
• AMENDED: October 8, 2016 – filing 2016-165
• AMENDED: April 6, 2022 – filing 2022-051
• AMENDED: September 30, 2023 – filing 2023-178
• AMENDED: May 22, 2024 – filing 2024-120
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 805 Composite Filing

Code Me. R. 18-125 Ch. 805 Composite Return Filing {#sec-18-125-ch.-805 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 805}

SUMMARY: This rule establishes procedures for filing of composite returns of income by partnerships, estates, trusts, and S corporations on behalf of partners, beneficiaries, or shareholders.

Outline of Contents:

.01 Definitions

.02 Filing of Composite Returns

.03 Election to Participate in a Composite Return Filing

.04 Computation of Tax

.05 Business Credits

.06 Payment of Tax

.07 Amended Returns

.08 Taxable Years

.09 Due Date

.01 Definitions

A. Code. “Code” has the same meaning as in 36 M.R.S. § 111(1-A).

B. Composite return. “Composite return” means the Maine income tax return filed by an entity in accordance with this rule on behalf of some or all of its partners, beneficiaries, or shareholders who are “eligible persons,” as defined in Section .01(D) below.

C. Electing small business trust. “Electing small business trust” (“ESBT”) has the same meaning as given to that term by the Code § 1361(e).

D. Eligible person. “Eligible person” means a person that elects to participate in a composite return by completing the required Nonresident Member Affidavit and Agreement to Participate in a Composite Filing of Maine Income Tax (Form 941CF-ME) that is:

1. an individual who is a nonresident individual for the entire taxable year, and whose entire Maine adjusted gross income, including a spouse’s income in the case of married individuals filing a joint federal return, is from one or more entities and the individual elects to participate in the composite return filed by each entity;

2. that portion of a federally recognized ESBT or Qualified subchapter S trust that consists of holdings of stock in an S corporation; or

3. a nonresident trust or nonresident estate that has its entire Maine-source income for the taxable year from one or more entities, would have included such income as Maine taxable income if it were to file an income tax return for that year, and has not distributed any of its Maine-source income for the taxable year to its beneficiaries as distributable net income.

E. Entity. “Entity” means a partnership, limited partnership, limited liability partnership, estate, trust, or S corporation. “Entity” also includes a limited liability company classified as a partnership or S corporation for federal income tax purposes.

F. Entity income. “Entity income” means an eligible person’s distributive share of the net income of an entity, apportioned to Maine in accordance with 36 M.R.S., Chapter 821. For purposes of this rule, entity income does not include an eligible person’s distributive share of net income of an entity, apportioned to Maine in accordance with 36 M.R.S., Chapter 821, if that eligible person’s distributive share of the net income of the entity is less than zero.

“Entity income” for an ESBT means the ESBT’s distributive share of net income of an S corporation taxable pursuant to the Code § 641(c), and apportioned to Maine in accordance with 36 M.R.S., Chapter 821. If an ESBT holds stock in more than one S corporation, the entity income of each stock holding must be determined separately for purposes of this rule.

G. Qualified subchapter S trust. “Qualified subchapter S trust” (“QSST”) has the same meaning as given to that term by the Code § 1361(d)(3).

H. Tiered entity structure. “Tiered entity structure” means an arrangement in which some or all of the interests in one entity (“lower tier entity”) are held by another entity (“upper tier entity”). A tiered entity structure may have two or more tiers.

.02 Filing of Composite Returns

A. Generally. An entity may file a composite return on behalf of its partners, beneficiaries, or shareholders who are eligible persons and who elect to participate in the composite return by completing the required Nonresident Member Affidavit and Agreement to Participate in a Composite Filing of Maine Income Tax (Form 941CF-ME). Form 941CF-ME must be retained by the pass-through entity for at least six years after the filing of the composite return for the taxable year. A new affidavit must be submitted each year by each eligible person electing to participate in the composite return for the taxable year.

An entity otherwise not qualified to file a composite return may nonetheless file a composite return if approved by the State Tax Assessor (“Assessor”).

Eligible persons who are included in the composite return will be deemed to have filed a Maine income tax return for the period covered by the composite return. Eligible persons who participate in the composite return are personally liable for the tax amount reported on their behalf in the composite return and any tax, interest, or penalty that may be assessed for that period in the same way as if a composite return had not been filed. The Assessor reserves the right to require the filing of a Maine nonresident income tax return by any of the eligible persons included in the composite return. Eligible persons are not jointly and severally liable for the tax, interest, or penalty imposed on any other unrelated eligible person or the entity solely because of that eligible person’s membership interest in the entity.

B. Information required. The composite return’s supporting information must include, at a minimum, the name and taxpayer identification number of each eligible person included in the return, the amount of each eligible person’s distributive share of taxable entity income and the tax thereon, the amount of each eligible person’s share of any business tax credit claimed under 36 M.R.S. § 5219-G, the amount of any payments previously made and applied to each eligible person’s tax liability, and the amount of payment included with the return and applied to each eligible person’s tax liability. The composite return (Form 1040C-ME for taxable years beginning on or after January 1, 2023; Form 1040ME and Schedule 1040C-ME for taxable years beginning prior to January 1, 2023) must be complete.

C. ESBTs and QSSTs. To be an eligible person, an ESBT must be a nonresident trust for Maine income tax purposes, in accordance with 36 M.R.S., Chapter 813. A beneficiary of a QSST must be a nonresident for Maine income tax purposes for the QSST to qualify as an eligible person. If an ESBT holds stock in more than one S corporation, each stock holding must be considered separately for determining eligibility and must be treated as a separate eligible person for the purposes of this rule.

D. Composite returns for tiered entity structure. An upper tier entity may file a single composite return on behalf of the non-resident members (including members, partners, shareholders, or beneficiaries) in a tiered entity structure, where the nonresident members are eligible persons. The following additional requirements must be met:

1. Each of the lower tier entities (including any related pass-through entity) with individual members that elect to participate must agree to have its electing members included in the composite return and each lower tier entity must not file a separate return;

2. A schedule must be attached to the composite return indicating each member’s distributive share of Maine-source income from each tiered entity, and the total amount of Maine-source income received by each member from all tiered entities in the tiered entity structure; and

3. A statement must be attached to the composite return, including an organizational chart, disclosing the structure and identity, including the names, addresses and federal identification numbers, of all the related entities from which participating nonresident members directly or indirectly derived Maine-source income.

E. Pass-through entity withholding return. An entity that files a composite return must also file an annual pass-through entity withholding return (Form 941P-ME) for the year pursuant to 36 M.R.S. § 5250-B and MRS Rule 803 (18-125 C.M.R., ch. 803). Form 941P-ME must include information required regarding eligible persons participating in the composite return by attaching a completed Schedule 3P.

F. Partnership audits; federal adjustment report. An original composite return cannot be filed as the result of an administrative adjustment request (“AAR”) or final federal adjustment (“FFA”) report issued by the Internal Revenue Service (“IRS”) after audit. If an original composite return was filed prior to the AAR or FFA, see Section .07(B) below for the process to amend the composite return.

.03 Election to participate in a composite return filing

An entity filing a composite return must obtain written authorization, on Form 941CF-ME, from those eligible persons included in the composite return to file a Maine income tax return on their behalf. The filed composite return constitutes a statement that authorization has been obtained from each included eligible person. By granting such authorization, an eligible person agrees to be subject to the taxing jurisdiction of the State of Maine and its agencies and courts for the purposes of determining and collecting Maine income tax, interest, and penalties; authorizes the entity to receive notices from MRS on behalf of the eligible person; waives any right to claim income modifications, deductions, exemptions, and credits otherwise allowable under the Maine Income Tax Law, other than business credits specified in 36 M.R.S. § 5219-G for which no income modification or election is required; and waives any right to file an amended return to amend the reporting of any item reported by the entity, except through an amended composite return filed by the entity, for any taxable year for which a composite return has been- filed on the eligible person’s behalf.

.04 Computation of tax

The Maine income tax liability of each eligible person who elects to be included in a composite return is equal to the person’s entity income multiplied by the highest marginal rate provided in 36 M.R.S. § 5111 for the applicable tax year.

.05 Business credits

Each participating eligible person may claim the person’s share of the business credits to which the eligible entity is entitled provided that the credit is one for which no income modification or election is required. 36 M.R.S. § 5219-G.

.06 Payment of tax

An entity must make estimated payments of Maine income tax on behalf of participating members pursuant to 36 M.R.S. § 5228 if the aggregate liability of the participating eligible persons is greater than $1,000.00 for the tax year.

.07 Amended returns

A composite return may not be changed or corrected except by an amended composite return filed by the entity that filed the original composite return.

Partnership audits; federal adjustments report. A partnership with partners required to file a federal adjustments report under 36 M.R.S. § 5196(1) and, in the reviewed year of the audit, participated in a composite return in accordance with this rule must, within 180 days of the final determination date of the partnership-level audit, file an amended composite return for the reviewed year to report the additional income tax due with respect to those partners determined in accordance with the provisions of 36 M.R.S., Part 8 and this rule as in effect for the reviewed year. For purposes of this subsection, the final determination date is the date on which the partnership submits a request to the IRS, for any relevant partner, for a modification pursuant to the Code § 6225(c)(2)(A) or (B).

.08 Taxable year; Maine adjusted gross income; Maine taxable income

Notwithstanding any other provision of law to the contrary, the taxable year of an eligible person included in a composite return is the taxable year of the entity filing the composite return and the Maine adjusted gross income of an individual and the Maine taxable income of an estate or trust included as an eligible person in a composite return is that person’s entity income for that taxable year.

.09 Due date

The due date of the composite return is the fifteenth day of the fourth month following the close of the taxable year of the entity filing the composite return.

­­­­ STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 5192(5)

EFFECTIVE DATE:

September 21, 1987

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 1, 1996

AMENDED:

February 14, 2000

NON-SUBSTANTIVE CORRECTIONS:

February 23, 2000 - .01(E), .03, .08

AMENDED:

March 25, 2007 – filing 2007-108

October 14, 2008

August 19, 2012 – filing 2012-228

April 5, 2015 – filing 2015-058

February 12, 2017 – filing 2017-013

December 17, 2018 – filing 2018-267

April 6, 2022 – filing 2022-052

April 27, 2024 - filing 2022-094

Chapter 806 Nonresident Individual Income Tax

Code Me. R. 18-125 Ch. 806 Nonresident Individual Income Tax {#sec-18-125-ch.-806 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 806}

SUMMARY: This rule provides income tax guidance for nonresident individuals in the following areas:

Determination of Maine-source income;

Deduction of Maine losses;

Attribution and apportionment of income, tax additions and tax credits to Maine;

Returns, worksheets and schedules to be used for filing;

Determination of taxable income and tax credits for spouses filing as single individuals; and

Income tax withholding obligations.

Outline of Contents:

.01 Definitions

.02 Income subject to Maine income tax

.03 Income not subject to Maine income tax

.04 Deduction of losses

.05 Special sourcing rules

.06 Income tax credits

.07 Return of nonresident or part-year resident individual

.08 Maine taxable income computation for spouses filing as single individuals

.09 Maine tax additions and tax credits for spouses filing as single individuals

.10 Maine income tax withholding obligations

.11 Application date

.01 Definitions

Code. “Code” means the United States Internal Revenue Code of 1986 and amendments to that Code as of the date stated in 36 M.R.S. § 111(1-A).

B. Intangible property. “Intangible property” means a right or possession of a nonphysical or abstract nature that has value, or a financial asset that has no intrinsic value but that represents value. Intangible property includes but is not limited to copyrights, patents, licenses, bills of exchange, trademarks, business books and records, business goodwill, covenants not to compete, securities, bonds, notes, insurance policies, and accounts receivable.

C. Pass-through entity. “Pass-through entity” means a corporation that for the applicable tax year is treated as an S corporation under the Code, or a general partnership, limited partnership, limited liability partnership, limited liability company, trust or similar entity that for the applicable tax year is not taxed at the entity level for federal income tax purposes. “Pass-through entity” does not, for Maine income tax purposes, include a financial institution subject to tax under 36 M.R.S., Chapter 819.

D. Research and development. “Research and development” means activities performed in the experimental or laboratory sense if they are intended to discover information that would eliminate uncertainty concerning the development or improvement of a product, formula, invention, process, technique, or patent, but excludes quality control testing and inspection, advertising or promotions, efficiency or consumer surveys, management studies, research in connection with literary, historical or similar projects, or the acquisition of another’s patent, model, production, or process.

E. Tangible personal property. “ Tangible personal property” means personal property that has physical existence. It can be seen, weighed, measured, felt, touched or in any other manner perceived by the senses, but does not include anything that constitutes intangible property as defined in subsection A above.

F. Temporary business presence. “Temporary business presence” means a presence in the State on other than a systematic or regular basis, either directly or through agents or employees for purposes of conducting business.

.02 Income subject to Maine income tax

Generally. Income received by a nonresident is attributable to and taxable by Maine when the income is derived from or connected with sources in Maine (“Maine-source income”). The itemized and standard deductions, credits, income modifications, and personal exemptions applicable to residents also apply to nonresidents. A loss realized by a nonresident is attributable to Maine when the loss is derived from or connected with sources in Maine (“Maine-source loss”). Each nonresident partner of a partnership, member of a limited liability company (“LLC”) categorized as a partnership, and shareholder of an S Corporation is subject to Maine income taxation on Maine-source income allocable to the nonresident from the partnership, LLC or S Corporation. Estates of nonresident decedents and nonresident trusts are also subject to tax if Maine-source income has been received.

Compensation for personal services. Except as provided by federal law, compensation received for personal services performed in Maine, regardless of where paid, is Maine-source income. Personal service compensation includes, but is not limited to, wages, salaries, taxable benefits such as annual and sick leave, commissions, fees, or payment in kind. Personal services performed in Maine include sick time and vacation time earned while working in Maine. In the case of compensation for personal services, unless excluded from the definition of “income” under the Code, the taxpayer must report all Maine-source income even though the taxpayer does not receive the entire amount of such income. For example, amounts withheld by an employer for federal income taxes, FICA contributions, medical insurance plans, or other similar withholding deductions must be included in Maine-source income; on the other hand, compensation contributed to a 401(k) plan is not subject to Maine taxation. Unemployment compensation received by a nonresident that is derived from employment in Maine is Maine-source income.

With respect to incentive stock options, nonstatutory stock options, and employee stock purchase plans, compensation for personal services performed in Maine generally includes, for nonresident employees working in Maine at the time the employee is granted the right to a stock option plan, the amount that represents the fair market value of the stock on the date exercised ( i.e. when the employee has purchased the stock) that exceeds the option price of the stock at the time the option is granted. When the period between the grant of a stock option and the time the option is exercised straddles employment within and without the state of Maine, an adjustment must be made in accordance with section .05, subsection A below; the compensation sourced to Maine must be included in Maine adjusted gross income during the same tax year the income is included in federal adjusted gross income. For purposes of stock option plans described in this paragraph, income derived from personal services is compensation even if the amount is reported as a capital gain on the federal income tax return.

Income from a trade or business. All income derived from or connected with the carrying on of a trade or business within Maine is Maine-source income. Generally, a nonresident has a trade or business in Maine if:

The nonresident, directly or through agents or employees or through a pass-through entity in which the nonresident is a shareholder, member, or partner, maintains or operates or shares in maintaining or operating a desk, room, office, shop, store, warehouse, factory, or any other place in Maine where business affairs are systematically and regularly conducted; or

The nonresident, directly or through agents or employees or through a pass-through entity in which the nonresident is a shareholder, member, or partner, is present for business in Maine on other than a systematic or regular basis and earns or derives gross income during the taxable year from contractual or sales-related activities.

Income from ownership of real or tangible personal property. All income derived from the ownership of real or tangible personal property located in Maine is Maine-source income; however, unless the property was employed in a business, trade, profession, or occupation carried on in this State, interest income earned from the sale of such property will not be subject to Maine income tax. Maine-source income includes rents derived from and gains from a federally taxable sale or exchange of:

Real property located in Maine;

Tangible personal property having a situs in Maine; or

Any interest in a Maine time-share or similar arrangement.

Income from the sale of a partnership interest. The income from the sale of a partnership interest on or after July 1, 2005, by a nonresident is sourced to Maine to the extent of the ratio of the partnership’s tangible property located in Maine to the partnership’s tangible property located everywhere in the United States, determined based on original cost. “Original cost” for purposes of this subsection and 36 M.R.S. § 5142(3-A) is defined in Rule 801.09(D). Tangible property includes real estate, inventory, and equipment that is owned or rented by the partnership. If more than 50% of the partnership’s assets consist of intangible property, the gain or loss is allocated to Maine based on the sales factor of the partnership for the prior tax year. “Sales” for purposes of computing the sales factor are defined in Maine Rule 801. “Property” for purposes of computing the ratio of property located in Maine to property located everywhere is defined in Maine Rule 801. Maine-source income does not include income from the sale of a limited partnership’s interest in an investment partnership where more than 80% of the value of the partnership’s total assets consists of intangible personal property held for investment, except that such property cannot include an interest in a partnership unless that partnership is itself an investment partnership.

If the apportionment provisions set forth in this subsection do not fairly represent the extent of the partnership’s business activity in this State, the taxpayer may petition for, or the State Tax Assessor (“Assessor”) may require, in respect to all or any part of the partnership’s business activity, the employment of any other method to effectuate an equitable apportionment to this State of the partner’s income from the sale of the partnership interest. See 36 M.R.S. § 5142(3-A). The provisions of this subsection also apply to an LLC, unless it elects at the federal level to be taxed as an entity other than a partnership. See 36 M.R.S. § 5180(1).

Gambling activity/lottery winnings. Winnings received by a nonresident from the Maine Lottery or the Tri-State Lotto (Maine, New Hampshire, Vermont) are Maine-source income if the winning ticket was purchased in Maine on or after July 13, 1993. Maine-source income also includes proceeds from any gambling activity conducted in Maine, lottery tickets purchased in Maine (except as provided in the previous sentence), and payments received from third parties as consideration for the transfer of rights to future proceeds related to gambling activity in Maine or lottery tickets purchased in Maine.

Minimum taxability thresholds. Notwithstanding the provisions of subsections B and C above and to the extent the income is not excluded from Maine income tax by section .03 below, a nonresident individual with compensation earned in Maine or income from a temporary business presence in Maine is subject to income taxation on that income as provided by this subsection.

A nonresident individual is subject to Maine income tax on compensation that is Maine-source income earned through the performance of personal services in Maine as an employee only if the individual was present in Maine performing the personal services for more than 12 days during the taxable year and directly earned or derived more than $3,000 of gross income during the taxable year in Maine from all sources.

A nonresident individual is subject to Maine income tax on Maine-source income that is derived from a temporary business presence in Maine only if the individual had a temporary business presence in Maine for more than 12 days during the taxable year and earned or derived more than $3,000 of gross income during the taxable year from contractual or sales-related activities.

The days worked in Maine that count toward the taxability threshold need not be consecutive. Any portion of a day spent performing personal services in Maine is counted as a full day. For taxable years of less than 12 months, day references must be prorated based on the number of months of the taxable year over 12 multiplied by the day threshold.

Up to 24 days performing certain personal services not counted towards the 12-day minimum taxability threshold. Up to 24 days spent by a nonresident individual in the State performing the following services as an employee will not count towards the 12-day threshold in .02(G)(1).

Any personal service performed in connection with presenting or receiving employment-related training or education. These services include providing instruction at or attending seminars, hands-on training, on-the-job training, or other types of educational opportunities required by or related to the nonresident’s employment.

Any personal service performed in connection with a site inspection, review, analysis of management, or any other supervision:

(a) At a company-owned facility on behalf of a company not headquartered in Maine; or

(b) At a Maine-based affiliated or subsidiary company on behalf of its parent.

3. Any personal service performed in connection with research and development at a facility based in Maine or in connection with the installation of new or upgraded equipment or systems at that facility, including:

(a) Conducting research and development at that facility; or

(b) Installing or repairing any equipment or systems used for purposes of research and development at that facility.

4. Any personal service performed as part of a project team working on the attraction or implementation of new investment in a facility based in Maine. These services include financial or business planning, engineering, construction, testing, permitting, inspection, or any other service provided by members of a project team whose purpose is to bring in or implement new investment of money or resources in an existing or new Maine-based facility or in the expansion, renovation, development, or construction of the Maine-based facility itself.

.03 Income not subject to Maine income tax

The following types of income earned or derived by nonresidents are not subject to Maine income tax:

A. Certain intangible income. Except for the provisions of section .02, income from intangibles, such as annuities, interest, dividends, copyrights, patents, and gains from the sale or exchange of intangibles (other than the sale of partnership interests), when not related to a trade, business, profession or occupation carried on in Maine;

B. Certain military pay. Compensation paid by the United States of America to its uniformed military personnel for services rendered on active duty, including members of the Army, Navy, Air Force, Coast Guard, and Marines who are assigned to a military air base, naval station, or any facility in Maine, public or private, to which they must report under service orders (see the federal Servicemembers Civil Relief Act);

C. Military spouses. Income earned from services performed in Maine by a nonresident spouse of a servicemember if the spouse is a nonresident in Maine solely to be with a servicemember who is in Maine in compliance with that servicemember’s orders;

D. Certain transportation employees. Earnings paid to nonresident transportation workers whose wages are exempt from Maine taxation by federal law, including interstate railroad and motor carrier employees who perform services for their employer in more than one state (49 U.S.C.S. §§ 11502 and 14503); and

E. Exempt retirement income. Retirement income, including pensions and deferred compensation received after termination of employment, that is exempt from state income taxes pursuant to United States law (4 U.S.C.S. § 114).

F. Certain nonresidents working in Maine under interlocal agreements. Beginning in tax year 2011,income earned by a nonresident employee of a political subdivision of an adjoining state performing services in Maine in accordance with an interlocal agreement under 30-A M.R.S., Chapter 115 is not considered Maine-source income, so long as the work performed does not displace a Maine resident employee.

Income directly related to a declared state disaster or emergency. For tax years beginning on or after January 1, 2013, employee compensation or income from a trade or business in Maine that is directly related to a declared State disaster or emergency, but only if:

The nonresident is present in the State during the taxable year solely for the performance of services or the conducting of business during a declared state disaster or emergency period; and

The services were requested by the State, a county, city, town or political subdivision of the State or a registered business as defined in 10 M.R.S., Chapter 1201.

H. Other income. Any other income earned by a nonresident that is protected from Maine taxation by federal law.

.04 Deduction of losses

A loss that is deducted in computing the nonresident’s federal adjusted gross income is automatically included in that taxpayer’s Maine adjusted gross income for the same tax year. If the loss is a “Maine-source loss,” it is allocated to Maine when computing income from a trade or business in Maine on Schedule NR or Schedule NRH. A loss realized by a nonresident is attributable to Maine when the loss is derived from or connected with sources in Maine (“Maine-source loss”).

A. Net operating loss. A net operating loss that is derived from or connected with the carrying on of a trade or business in Maine is a Maine-source loss.

B. Capital loss. A capital loss that is derived from the ownership or disposition of any interest in real or tangible personal property located in Maine is a Maine-source loss.

C. Rental loss. A rental loss derived from real or tangible personal property located in Maine is a Maine-source loss.

D. Carryback or carryforward. Since Maine adjusted gross income is derived from federal adjusted gross income and the Code provides for the carry back or carry forward of certain losses, a taxpayer may carry back (except as provided in the next paragraph) or carry forward a loss on the Maine return only if that loss is carried back or carried forward on the taxpayer’s federal return for the same tax year, excluding losses disallowed in 2009, 2010, and 2011. If the only Maine-source items in federal adjusted gross income are losses, and those Maine losses are fully absorbed by income derived from sources outside of Maine, the Maine losses cannot be carried back or carried forward for Maine purposes.

1. Net operating losses realized after 2001. Net operating losses realized after 2001 that are carried back for federal income tax purposes are not allowed for Maine income tax purposes in the carryback year. The disallowance is effected through an addition income modification in the carryback year. The amount of the addition income modification may be used as a subtraction modification in the loss year (assuming there are sufficient Maine income tax income additions in that year) or in tax years subsequent to the year of the loss, but only to the extent not previously used to offset Maine income. Only that portion of the carry back loss that is sourced to Maine may be used to reduce federal adjusted gross income in the loss year or carryforward years. The net operating loss amount must be used within the allowable net operating loss carryover period.

2. Tax years beginning in 2009, 2010, and 2011. Maine disallows carryforwards in 2009, 2010, and 2011. Any federal carryforward in those years must be offset with a corresponding addition modification. The addition modifications for a federal carryback or carryforward can be recaptured in years subsequent to the year of the loss, beginning with tax year 2012, through subtraction modifications. The recapture modifications must be reduced by any Maine income that is offset in the year of the loss. 36 M.R.S. § 5122(1)(DD) and (2)(CC).

E. Negative or zero federal adjusted gross income. If the nonresident taxpayer's federal adjusted gross income is negative or zero for the taxable year and the taxpayer has recognized Maine-source income, there will be no Maine tax on that income.

.05 Special sourcing rules

A. Allocation or apportionment required. When a nonresident earns or derives income, including income from pass-through entities or sole proprietorships, from sources both within Maine and elsewhere, an allocation or apportionment of the income must be made to determine the amount of Maine-source income. The following provisions set forth the rules for the determination of a nonresident’s Maine-source income; for the purpose of this section, the term “income” includes, in the alternative, the term “loss.” A nonresident may submit an alternative method of allocation with respect to his or her income and explain that method in full on the return, subject to review and modification by the Assessor. An alternative basis for the apportionment of business income under subsection F below may be requested as provided under 36 M.R.S. § 5211(17). Apportionment of items of income from the rendering of purely personal services by employees, salespersons, athletes, and entertainers is addressed in this section of the Rule.

B. Employees generally. When a nonresident employee can establish the exact amount of pay received for services performed in Maine, that amount is the amount of Maine-source income. When no such exact determination of amounts earned or derived in Maine is possible, the income must be apportioned to Maine. Gross income wherever earned (determined as if the nonresident were a resident) is multiplied by a fraction, the numerator of which is the number of days spent working in Maine and the denominator of which is the total working days. The result is the amount of the nonresident’s Maine-source income. Days in which the employee was not at work, such as holidays, sick days, vacations, and paid or unpaid leave, are not included when computing total working days. When a working day is spent working partly in Maine and partly elsewhere, it is treated as one-half of a day spent working in Maine.

C. Salespersons. The Maine-source income of a salesperson or other employee whose compensation is based in whole or in part upon commissions is computed as follows: The gross income earned from sales everywhere (determined as if the nonresident were a resident) is multiplied by a fraction, the numerator of which is the amount of sales made within Maine and the denominator of which is the amount of sales everywhere. For the purposes of this calculation, the "amount of sales" is determined under the same method by which the amount of sales is determined for purposes of calculating the employee’s commissions. The determination of whether sales are made within Maine or elsewhere is based upon where the salesperson performs the activities in obtaining the order, not the location of the formal acceptance of the contract.

D. Professional Athletes.

1. Exhibition and regular season games. Nonresident professional athletes must include in income the entire amount of compensation received for games played in Maine. In the case of a nonresident athlete not paid specifically for the game played in Maine, the following apportionment formula must be used: The income earned and subject to the Maine income tax is the total compensation earned during the taxable year, including incentive payments, bonuses, and extras, but excluding signing bonuses and league playoff money. Total compensation is multiplied by a fraction, the numerator of which is the number of exhibition and regular season games the athlete played (or was available to play for the athlete’s team, as, for example, with substitutes) in Maine during the taxable year, and the denominator of which is the total number of exhibition and regular season games that the athlete was obligated to play under contract or otherwise during the taxable year, including games in which the athlete was excused from playing because of injury or illness.

2. Playoff games. For playoff games played in Maine, the amount of league playoff money earned by the professional athlete for playing or being available to play in such games is also income subject to apportionment under the following formula: League playoff money earned and subject to the Maine income tax is the total league playoff compensation earned during the taxable year multiplied by a fraction, the numerator of which is the number of playoff games the athlete played or was available to play in Maine during the taxable year, and the denominator of which is the total number of playoff games which the athlete’s team played during the taxable year, including playoff games in which the athlete was excused from playing because of injury or illness.

3. Signing bonuses. Any amount received by a nonresident professional athlete as a signing bonus is excluded from the income subject to Maine apportionment.

E. Entertainers. The Maine-source entertainment income of nonresident entertainers is the entire amount received for performances, engagements or events that occurred in Maine. In the case of a nonresident entertainer who is not paid specifically for a performance in Maine, the following apportionment formula must be used: The income earned and subject to the Maine income tax is the entertainer’s total annual compensation multiplied by a fraction, the numerator of which is the number of performances the entertainer performed (or was available to perform, as, for example, with understudies) in Maine, and the denominator of which is the total number of performances which the entertainer was obligated to perform under contract or otherwise during the taxable year.

F. Self-employed nonresidents and nonresident owners of pass-through entities carrying on a trade or business in Maine and elsewhere. Self-employed nonresidents and nonresident owners of pass-through entities carrying on a trade or business both within Maine and elsewhere must apportion their income in accordance with 36 M.R.S. § 5211 and Rule 801 in order to determine the amount of Maine-source income. See 36 M.R.S. § 5192.

.06 Income tax credits

Most income tax credits available to a resident individual are also available to a nonresident individual; however, personal income tax credits, such as the credit for child care expenses (36 M.R.S. § 5218) and the retirement and disability credit (36 M.R.S. § 5219-A), must be prorated based upon the ratio of the taxpayer’s Maine-source income to entire federal adjusted gross income as modified by 36 M.R.S. § 5122. The total amount of income tax credits based upon a business being operated in Maine by the nonresident taxpayer (business credits) may be claimed without proration, subject to the limitations contained in the statute for the credit or credits involved. (See 36 M.R.S., Chapter 822.)

.07 Return of nonresident or part-year resident individual

Nonresidents and part-year residents must file the Maine resident long form supplemented by Schedule NR or Schedule NRH. Schedules NR and NRH are used to separate Maine-source income or loss from non-Maine-source income or loss and to compute the nonresident credit. A copy of the federal income tax return (Form 1040) and Schedule A (if itemized deductions are claimed on the Maine return) must be attached. The taxpayer must submit a copy of any other federal forms or schedules that the Assessor deems necessary to determine Maine-source income.

.08 Maine taxable income computation for spouses filing as single individuals

A married individual who files as a single individual must file the Maine resident long form supplemented by Schedule NRH. In completing Schedule NRH, the following steps must be followed in order to calculate the filing spouse’s share of the income, deductions, and other items, in order to separate Maine-source income or loss from non-Maine-source income or loss and to compute the nonresident credit:

A. Individual’s income share. Earned income, including, but not limited to, income from wages, salaries, tips, and other items of value received from an employer for services performed or from self-employment is totally attributed to the spouse so compensated. For other income, if separate accounting has been maintained so that the income, expense and deductions can be separately determined and substantiated, the individual filing must report as if a separate federal return had been filed. Otherwise, the individual’s share is 50% of all other income.

B. Income ratio. The ratio of the individual’s share of total income is computed by dividing the individual’s income share as determined in subsection A by the total income reported on the federal married joint return.

C. Adjustments to income. Adjustments to income appearing on the federal married joint return for Maine purposes is the actual distribution of adjustments, if supported by adequate records. Otherwise, apportion adjustments according to the income ratio as determined in subsection B.

D. Federal adjusted gross income. Income adjustments determined pursuant to subsection C are deducted from income share determined pursuant to subsection A in order to determine the individual’s federal adjusted gross income.

E. Maine adjusted gross income. The Maine adjusted gross income for the individual filing is determined by adding to the federal adjusted gross income calculated in subsection D the individual’s other income share, if any, that is taxable by Maine but not at the federal level, and by deducting any amount included in the federal adjusted gross income that is taxable at the federal level but not by Maine.

F. Maine deductions. The individual must elect either the Maine standard deduction for single individuals or the amount of the married joint federal itemized deductions less applicable Maine modifications multiplied by the electing individual’s income ratio (as determined pursuant to subsection B). Instead of applying the individual’s income ratio to the joint itemized deductions, the taxpayer may elect to utilize actual itemized deductions, less applicable Maine modifications, attributable to him or her if supported by adequate records.

G. Maine exemptions. The filing individual is entitled to his or her exemption as authorized by 36 M.R.S. § 5126 plus the number of dependent exemptions from the federal married joint return multiplied by the electing individual’s income ratio (as determined pursuant to subsection B. No amount may be claimed for the other spouse’s personal exemption.

.09 Maine tax additions and tax credits for spouses filing as single individuals

Maine tax additions and Maine tax credits available if a joint return were filed are multiplied by the electing individual’s ratio of Maine adjusted gross income to the Maine adjusted gross income of the joint return. If separate accounting has been maintained so that tax additions and tax credits can be separately determined and substantiated, the individual filing may report as if a separate federal return had been filed.

.10 Maine income tax withholding obligations

Maine law requires income tax to be withheld by the following entities for nonresidents:

A. Employers and certain non-wage payers. Any person who maintains an office or transacts business in Maine and who is required to withhold federal income tax from a particular payment must also withhold Maine income tax if the payment constitutes income that is not excluded from taxation under Maine law. See 36 M.R.S. §§ 5250 and 5255-B. Employers who are required to withhold Maine individual income tax from employees must withhold from the earnings of nonresident individuals who are present in Maine performing personal services, provided the minimum taxability thresholds contained in 36 M.R.S. § 5142 (8-B) are exceeded.

B. Pass-through entities. A pass-through entity with income apportioned to Maine must withhold Maine income tax from any nonresident’s quarterly share of Maine-source income earned by that pass-through entity as provided in 36 M.R.S. § 5250-B.

C. Buyers of real estate from nonresidents. Buyers of Maine real property purchased from nonresidents must withhold an amount equal to 2.5% of the sale price to be used as an estimated tax payment towards any Maine tax liability on the gain realized from the sale. The buyer of the property must remit the real estate withholding to Maine Revenue Services using form REW-1. Exemptions or reductions in the withholding amount may apply in certain situations. See 36 M.R.S. § 5250-A(3).

For more information on income subject to Maine income tax withholding and determining the amounts to be withheld, see Rule 803.

.11 Application date

Unless otherwise indicated, this Rule applies to tax years beginning on or after January 1, 2011.

AUTHORITY: 36 M.R.S. §§ 112, 5142

EFFECTIVE DATE: December 13, 1987

AMENDED:

February 14, 1991 January 1, 1997 November 12, 2000 November 12, 2006

February 11, 2012 – filing 2012-16

LAST AMENDED:

February 11, 2017 – filing 2017-011

AMENDED:

August 18, 2024 – filing 2024-176

Chapter 807 Residency

Code Me. R. 18-125 Ch. 807 Residency {#sec-18-125-ch.-807 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 807}

SUMMARY: This rule addresses the determination and effect of an individual’s residency status with respect to Maine individual income tax.

Outline of Contents:

Definitions

General information

Domicile status

Factors used in determining an individual’s domicile

Statutory residency

Residency safe harbors

Resident and nonresident aliens

Military personnel

Students

Application date

Definitions

1. Nonresident. “Nonresident” means, for individual income tax purposes, a natural person who is not a Maine “resident individual” as that term is defined by 36 M.R.S. §5102(5).
2. Part-year resident. “Part-year resident” means, for individual income tax purposes, a natural person who is domiciled in Maine for less than a full taxable year and who is not a statutory resident in that year.
3. Permanent place of abode. “Permanent place of abode” means a house, apartment, residential care facility, dwelling place, or other residence that an individual maintains as a household for the entire tax year, whether or not that individual owns it. The term does not include a seasonal camp or cottage that is used only for vacations or a dormitory room used by a student during the school year. A place of abode is not considered “permanent” if it is maintained only during a temporary stay in Maine for the accomplishment of a particular purpose.
4. Resident. “Resident” means, for individual income tax purposes, a natural person who is a Maine “resident individual” as that term is defined by 36 M.R.S. §5102(5).
5. Safe harbor resident. “Safe harbor resident” means a natural person who is domiciled in Maine, but who is not treated as a resident individual of Maine for income tax purposes.
6. Statutory resident. “Statutory resident” means a natural person who is a resident individual in accordance with 36 M.R.S. §5102(5)(B).

General information

1. Maine resident. A Maine resident must pay Maine income tax on all taxable income regardless of its source. If a Maine resident is subject to income tax by another state or similar jurisdiction in another country on the same income, the taxpayer may be allowed a credit against Maine income tax for all or some of the tax paid to the other state or jurisdiction.
2. Nonresident or safe harbor resident. A nonresident or a “safe harbor” resident of Maine must pay Maine income tax on all income from work performed in Maine. The nonresident or “safe harbor” resident must also pay Maine income tax on all other income derived from Maine sources, including income derived from business activity in Maine carried out by sole proprietorships, partnerships, and S corporations; capital gains from real or tangible property sold in Maine; and income from rental of Maine property. A nonresident generally is not required to pay Maine tax on interest, dividends, alimony, pensions, or other income from intangible sources, except on certain sales of a partnership interest, unless such income is from property employed in a business carried on in Maine.
3. Part-year resident. A part-year resident of Maine must pay tax on all income for the part of the year during which the individual was domiciled in Maine. A part-year resident must also pay tax on any income derived from Maine sources during the entire year.

Domicile status

The word “domicile” is a common-law (i.e., judge-made law) term that the Maine courts, not the Legislature or Maine Revenue Services, have defined. Under the Maine common law, “domicile” means the place (A) where a person resides, and (B) where that person intends to remain and, whenever absent, intends to return. Thus, according to the Maine courts, domicile has two components: residence and the intent to remain or return, if absent. Once an individual’s domicile is established in Maine, it continues here until domicile is established elsewhere. An individual alleging a change in domicile has the burden to show that domicile was established in another state or country. The intent to move in the future is not sufficient to establish a change in domicile.

Maine Revenue Services considers all of an individual’s relevant facts and circumstances allowed by Maine law when it determines where that individual is domiciled. Although the individual’s intent to remain or return is a critical factor in determining domicile, an individual’s statement as to his or her intent is not necessarily determinative. Evidence of the individual’s intent may be found in many decisions made by the individual. An individual may retain the ability to make certain decisions and determine his or her domicile even though that individual is considered incapable of making, or chooses not to make, other decisions, such as health care choices or financial determinations. Actions by a person responsible for an incapacitated individual’s affairs may be considered when determining the incapacitated individual’s intent to remain. When a guardian has been appointed and chooses the incapacitated individual’s place of abode pursuant to authority as a guardian, the intent of the guardian for the individual to remain or return to a particular location becomes a factor in the determination of the incapacitated person’s domicile. Evidence of the guardian’s intent may be found in relevant statements and actions.

Factors used in determining an individual’s domicile

All relevant facts and circumstances allowed by Maine law are considered in determining where an individual is domiciled. The following factors, while not exclusive or of equal weight, may be used as evidence of domicile.

Property ownership and residence

• 1. Location of the individual’s principal residence under the Internal Revenue Code; 2. Location of the individual’s mailing address; 3. Where the individual spent the most amount of time; and 4. Whether the individual applied for a residential property tax exemption or related benefit in Maine or a comparable benefit in another state.

Family and dependents

• 1. Whether the individual can be claimed as a dependent on another person’s federal income tax return and where that other person is domiciled; 2. Where the individual’s spouse or dependents reside; 3. Where the individual’s dependents attend elementary and secondary school; and 4. Where the individual or the individual’s dependents qualify for in-state college tuition.

Licenses and registrations

• 1. Where the individual is registered to vote; 2. Which state issued the individual’s driver’s license; 3. Where the individual’s vehicles are registered; 4. Where the individual maintains professional licenses; and 5. Where the individual declares residency for hunting and fishing licenses.

Financial data

• 1. Where the individual qualifies for unemployment insurance; 2. Where the individual earns wages; 3. Where the individual filed previous years’ income tax returns; 4. The address recorded for the individual’s insurance policies, deeds, mortgages, or other legal documents; and 5. Where the individual’s safety deposit boxes are maintained.

Affiliations

• 1. Where the individual’s fraternal, social, or athletic memberships are located; 2. Where the individual’s union memberships are maintained; and 3. The location of a church or other house of worship of which the individual is a member.

Other factors

• 1. Where the individual’s personal property is located; 2. Where the individual conducts business; 3. The address listed for the individual in a telephone directory; and 4. Where the individual’s pets are located.

1. Exceptions. Maine Revenue Services does not consider whether a donation was made to an organization located in or outside of Maine when making domicile determinations. Also, the geographic location of an individual’s professional advisors (such as doctors, lawyers, accountants, financial advisors, and investment advisors) or the geographic location of a financial institution with an active account or loan of an individual is not considered. The geographic location of a political organization or candidate that an individual supports financially is not determinative of the individual’s domicile.
2. Presumption. If an individual is married, both that individual and the individual’s spouse are presumed to have the same state of domicile, even though they may live apart for a portion of the year. This presumption can be overcome if the facts clearly show that the spouses are domiciled in different states.

Statutory residency

Even if an individual is domiciled in another state, he or she may still be taxed as a Maine resident if that individual is a statutory resident. If an individual maintained a permanent place of abode in Maine but claims to have been domiciled elsewhere and not present in Maine for more than 183 days during the tax year, that individual must present adequate records to verify that more than half of the year was spent in another state. Records confirming whereabouts commonly include planners, calendars, plane tickets, canceled checks, and credit card and other receipts.

Residency safe harbors

1. Generally. For tax years beginning on or after January 1, 2007, Maine law provides that certain individuals are not treated as resident individuals even though they are domiciled in Maine. In order to qualify for such a statutory “safe harbor,” the individual must fall under either the General Safe Harbor or the Foreign Safe Harbor.
2. General safe harbor: An individual domiciled in Maine will be treated as a nonresident if, during the tax year in question, the individual: 1. Did not maintain a permanent place of abode in Maine; 2. Maintained a permanent place of abode outside Maine; and 3. Spent no more than 30 days in the aggregate in Maine (with any portion of a day counted as a full day).
3. Foreign safe harbor: An individual domiciled in Maine will be treated as a nonresident if: 1. Within any period of 548 consecutive days (the “548-day period”) beginning on or after January 1, 2007, the individual was present in a foreign country (or countries) for at least 450 days; 2. During the 548-day period, the individual is not present in Maine for more than 90 days and does not maintain a permanent place of abode in Maine at which the individual’s spouse (unless the individual and their spouse are legally separated) or a minor child is present for more than 90 days; and 3. During the nonresident portion of the taxable year with which or within which the 548-day period begins and during the nonresident portion of the taxable year with which or within which the 548-day period ends, the individual is present in Maine for a number of days that does not exceed an amount that bears the same ratio to 90 as the number of days contained in the nonresident portion of the taxable year bears to 548.

Resident and nonresident aliens

A. Certain Maine-source income of a nonresident alien, (i.e., an individual who is not a citizen of the United States and who resides outside the United States) may be subject to Maine income tax. An individual who is a resident alien (i.e., an individual who is not a citizen of the United States but who resides in the United States) for federal income tax purposes and a Maine resident for state income tax purposes must pay Maine income tax on all income. This subsection does not apply to tax years beginning on or after January 1, 2020.

B. For tax years beginning on or after January 1, 2020, Maine residency and Maine income tax of resident and nonresident aliens are determined under Maine law without reference to federal resident or nonresident alien status, unless otherwise provided in Maine law.

Military personnel

1. Service member. A military service member’s legal residence does not change solely because of a change in duty assignment. The legal residence designated at the time of entry into the service remains the same until the member establishes a new legal residence. A completed DD Form 2058, “State of Legal Residence Certificate,” is evidence of a change in domicile. 1. Nonresident service member: The military income of a nonresident stationed in Maine will not be taxed by Maine, nor will income from intangible sources, such as interest and dividends. However, additional wages earned performing services at a non-military job in Maine or income from operating a business in Maine are all subject to Maine income tax. 2. Resident service member: Subject to the provisions of 36 M.R.S. §5122(2)(LL), military compensation earned by a Maine resident service member for service performed outside Maine under written military orders will not be taxed by Maine for: 1. Active duty service in the active components of the US Army, Navy, Air Force, Marines, or Coast Guard by a service member whose permanent duty station during such service is located outside Maine; and 2. Active duty service in the active or reserve components of the US Army, Navy, Air Force, Marines, or Coast Guard or in the Maine National Guard by a service member in support of a federal operational mission or a declared state or federal disaster response when the orders are either at federal direction or at the direction of the Maine Governor. A “federal operational mission” is limited to activity in support of overseas deployment and excludes standard duty activity, such as training and administrative activities.

An individual domiciled in Maine who is a member of the Armed Forces of the United States, the National Guard, or Reservists who received federal orders for active duty continues to be domiciled in Maine for income tax purposes for the period of time stationed outside of Maine. The residency safe harbors in section .06 may apply to a service member or spouse if eligibility requirements are met.

1. Spouse of a service member 1. Residency of a military spouse. For tax years beginning on or after January 1, 2009, the spouse of a service member does not lose or acquire residency or domicile for income tax purposes when the spouse is in a state solely to be with the service member in compliance with the service member’s orders. The nonresident spouse of a nonresident service member will not be considered a Maine resident individual if the spouse is in Maine solely to be with the service member who is in Maine in compliance with that service member’s orders and the residence or domicile is the same for the service member and the spouse. In addition, for tax years beginning on or after January 1, 2018, if the spouse of a nonresident service member has elected under 50 U.S.C. §4001(a)(2)(B) to use the same residence for purposes of taxation as the nonresident service member, the spouse will not be considered a Maine resident individual. 2. Income of a military spouse. Income earned from services performed in Maine by the nonresident spouse of a service member is not Maine-source income subject to Maine income tax if the spouse is in Maine solely to be with the service member who is in Maine in compliance with orders.

Students

Students generally remain residents of the state in which they were domiciled prior to attending college, even if they attend college full-time in another state. Thus, a Maine resident who attends school in another state remains a Maine resident and must pay Maine income tax on all taxable income from all sources until that individual establishes a domicile in a different state.

Application date

Except as otherwise specified, this Rule applies to tax years beginning on or after January 1, 2011.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: December 5, 2010 – filing 2010-610
• EFFECTIVE DATE: February 11, 2012 – filing 2012-17
• AMENDED: February 8, 2017 – filing 2017-010
• AMENDED: December 26, 2020 – filing 2020-254
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 808 Corporate Income Tax Nexus

Code Me. R. 18-125 Ch. 808 Corporate Income Tax Nexus {#sec-18-125-ch.-808 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 808}

SUMMARY: This rule describes the circumstances under which a corporation is subject to the income tax jurisdiction of Maine under 36 M.R.S., Part 8.

Outline of Contents:

Definitions

General rule for evaluation of corporate income tax nexus

Activities establishing nexus; tax years beginning prior to January 1, 2022

Corporate income tax nexus; tax years beginning on or after January 1, 2022

Imputed Activity

Exception for certain solicitation activities (P.L. 86-272)

Exemption for certain out-of-state suppliers of spirits; taxable years beginning on or after January 1, 2022

Definitions

1. Assessor. “Assessor” means the State Tax Assessor or any designated agent.
2. Bureau. “Bureau” means the Maine Bureau of Revenue Services, also known as “Maine Revenue Services.”
3. Documentary evidence. “Documentary evidence” means journals, books of account, invoices, expense reports, or other records maintained by a taxpayer in the regular course of its business. Generally, an affidavit or other document prepared in anticipation of, or in response to a tax audit, examination, or litigation is not documentary evidence.
4. Employee. “Employee” means any individual who would be considered an employee under the common law rules governing the employee-employer relationship. An individual is presumed to be an employee of a foreign corporation rather than an independent contractor if the foreign corporation treats the individual as an employee for purposes of the payroll taxes imposed by the Federal Insurance Contributions Act .
5. Foreign corporation. “Foreign corporation” means a business entity subject to income taxation as a corporation under the laws of the United States, as further defined under 36 M.R.S. §5102(6), that is formed under the laws of a jurisdiction other than the State of Maine.
6. Missionary sales activity. “Missionary sales activity” means the activity of generating retail demand for the products of a manufacturer or distributor (and indirectly generating wholesale orders for those products) by promoting the products to retailers who typically order the products from a wholesaler or other middleman.
7. Office. “Office” means a permanent or temporary location where a corporation makes sales or holds itself out to the public as conducting business. The office of a corporation’s sales representative is generally not an “office” of the corporation for purposes of this rule if the representative does not publicly hold him or herself out as doing business on behalf of the corporation at that location, either by publishing the home address as a corporate business address or through other actions.
8. Out-of-state supplier of spirits. “Out-of-state supplier of spirits” means a corporation domiciled in another state that approves an order or request from outside this State for spirits placed by the Maine Bureau of Alcoholic Beverages and Lottery Operations (“BABLO”).
9. Partnership. “Partnership” means any entity subject to taxation under the Internal Revenue Code , Subtitle A, Chapter 1, Subchapter K, other than a financial institution subject to tax pursuant to Title 36 of the Maine Revised Statutes, chapter 819.
10. Sample or display room. “Sample or display room” means a temporary location, such as a hotel room or space in a trade show exhibit, where representatives of a foreign corporation exhibit samples of the corporation’s products, but do not make sales, approve orders for sales, or conduct any of the activities listed at section .03 , subsection (B) below.
11. Samples. “Samples” means representative products of a corporation that are used in sales demonstrations or distributed in limited quantities without charge in order to acquaint existing or prospective customers with the corporation’s products.

General rule for being subject to corporate income tax nexus. A corporation is subject to Maine income tax if it has nexus with Maine and has income properly apportionable to Maine pursuant to Title 36 M.R.S., chapter 821, regardless of whether it is authorized to do business in this State. A corporation has nexus with Maine if it engages in the activities listed in section .03 below or meets the criteria of 36 M.R.S. §5200-B and section .04 below of this rule. However, a corporation’s activities will not subject it to the income tax jurisdiction of Maine if the constitution or laws of the United States, including 15 United States Code §381 et seq . (P.L. 86-272), preclude the exercise of jurisdiction.

Activities establishing nexus; tax years beginning prior to January 1, 2022. For tax years beginning prior to January 1, 2022, a corporation generally has income tax nexus with Maine if it (a) does business in Maine; or (b) owns or uses any part or all of its capital, plant, or other property in Maine in a corporate capacity, as opposed to a strictly fiduciary capacity.

1. Doing business. Without limitation, a corporation does business in Maine if it engages in any of the following activities in this state: 1. Maintains an office or other place of business; 2. Executes a contract; 3. Exercises or enforces contract rights; 4. Buys, sells or procures services or property; or 5. Employs labor.
2. Owning or using property. Without limitation, a corporation owns or uses property in Maine if it: 1. Owns property that is held by another person in this State under a lease, consignment, or other arrangement; 2. Uses in this State property that it holds under a lease, license, or other arrangement; or 3. Maintains a stock of goods in this State.

Corporate income tax nexus; tax years beginning on or after January 1, 2022. For tax years beginning on or after January 1, 2022, a corporation has income tax nexus with Maine if it:

1. Is organized or commercially domiciled in Maine; or
2. Is organized or commercially domiciled outside Maine, and the corporation’s Maine property, payroll or sales exceed any of the following thresholds for the taxable year: 1. Property of $250,000; 2. Payroll of $250,000; 3. Sales of $500,000; or 4. Twenty-five percent of the corporation’s total property, payroll, or sales.

Maine property, payroll, and sales are calculated in the same manner used to determine income apportionment under 36 M.R.S., chapter 821 and rules adopted by the Assessor, except that the sales calculation does not exclude sales of tangible personal property under 36 M.R.S. §5211(14)(B). For a taxpayer permitted or required to use a special apportionment method under 36 M.R.S. §5211(17), the property, payroll, and sales used to determine nexus under this rule must be consistent with the property, payroll, and sales used for the special apportionment method.

A corporation that holds an interest directly or indirectly in a partnership has nexus with Maine if the partnership is organized or commercially domiciled in Maine or if the partnership is organized or commercially domiciled outside Maine and the partnership's property, payroll, or sales exceed the thresholds established in subsection B of this section.

Imputed activity. For the purposes of determining whether a corporation is subject to Maine’s tax jurisdiction pursuant to sections .03 or .04 above, the activities of the corporation’s employees, agents, or representatives, however designated, will be imputed to the corporation. An agent or representative may be an individual, corporation, partnership, or other entity. Activities conducted in Maine on behalf of a corporation by an independent contractor will be imputed to the corporation to the extent allowed by the Constitution and laws of the United States.

.06 Exception for Certain Solicitation Activities (P.L. 86-272). A foreign corporation that has nexus with Maine is nevertheless not subject to the Maine income tax if its activities in this State are all activities that are set forth in P.L. 86-272. P.L. 86-272 precludes Maine from imposing a tax on the income of a foreign corporation if the sole activity of the foreign corporation in the State is the solicitation by the foreign corporation’s representatives (in the name of the foreign corporation or in the name of a prospective customer) of orders for the sale of tangible personal property, provided that the orders are sent outside of the State of Maine for approval or rejection, and provided that the orders are filled by shipment or delivery outside of Maine. Some examples of common solicitation activities are found at subsection (D) of this sectionbelow. See subsection (E) of this section below for examples of unprotected activities.

1. Limitations. P.L. 86-272 restricts a state’s income tax jurisdiction only if the taxpayer’s activity is limited to solicitation of orders for the sale of tangible personal property. P.L. 86-272 does not afford protection in the following circumstances: 1. A combination of solicitation activities and non-solicitation activities in Maine; 2. The solicitation of orders for the sale or provisions of services , either standing alone or in combination with the solicitation of orders for tangible property. Some examples of the sale of a mixture of services and tangible personal property are photographic development and the provision of architectural or engineering services; and 3. The solicitation of orders for the sale, lease, rental, license, or other disposition of real property or intangibles.
2. Scope of “solicitation.” Whether the activities of a foreign corporation fall within the scope of “solicitation” within the meaning of P.L. 86-272 is a factual determination. The examples of activities provided at subsection (D) and (E) of this section below are intended as guidelines. They are not exhaustive and will not precisely describe the activities of many foreign corporations. In applying the guidelines to particular circumstances and activities of specific foreign corporations, the Assessor will use the following rules of construction: 1. The term “solicitation” includes only actual requests for purchases and activities that are entirely ancillary to requests for purchases. An activity is entirely ancillary to the requesting of purchases only if it serves no independent business purpose apart from its connection to the soliciting of orders. 2. Activities conducted by a foreign corporation with respect to a particular order generally do not constitute “solicitation” if they occur after the order has been placed.
3. De minimis activities. Non-solicitation business activities conducted by a foreign corporation in Maine will not subject the foreign corporation to taxation if the activities, taken together, are de minimis. De minimis activities are those that establish only a trivial additional connection with this State. An activity regularly conducted within this State pursuant to company policy or on a continuous basis will not normally be considered trivial. Whether or not an activity consists of a trivial additional connection with Maine is measured on both a qualitative and quantitative basis. If the activity either qualitatively or quantitatively creates a non-trivial connection with the State of Maine, the activity does not qualify for the protection afforded by P.L. 86-272. Establishing that the disqualifying activities account for a relatively small part of the business conducted within this State is not determinative of whether a de minimis level of activity exists. The relative economic importance of the disqualifying in-state activities, as compared to the protected activities, does not determine whether the conduct of the disqualifying activities within the taxing State is inconsistent with the limited protection afforded by P.L. 86-272. If the Assessor believes that a taxpayer conducts in this State any activity listed in subsection (E) of this sectionbelow, the Assessor will require the taxpayer to carry the burden of substantiating any claim that its activities were de minimis. Documentary evidence will be given substantial weight in establishing the nature and extent of the taxpayer’s activities. Affidavits or other evidence not contemporaneous with the events in question will be given little weight.
4. Protected activities. The following in-state activities conducted by a foreign corporation will not cause the loss of protection for otherwise protected sales that occur in the State of Maine: 1. Soliciting orders for sales by any type of advertising; 2. Soliciting of orders by an in-state resident employee or representative of the foreign corporation, so long as such person does not maintain or use any office or other place of business in the state other than an “in-home” office as described in subsection (E) , paragraph 20 of this section below; 3. Carrying samples and promotional materials only for display or for distribution without charge or other consideration; 4. Furnishing and setting up display racks and advising customers on the display of the foreign corporation’s products without charge or other consideration; 5. Providing automobiles to sales personnel for their use in conducting protected activities; 6. Passing orders, inquiries and complaints on to the corporation’s home office; 7. Missionary sales activities and advertising campaigns incidental to missionary sales activities; 8. Coordinating shipment or delivery without payment or other consideration and providing information relating thereto either before or after the placement of an order; 9. Checking of customers’ inventories without a charge therefor (for re-order, but not for other purposes such as quality control); 10. Maintaining a sample or display room for an aggregate of 14 days or fewer during the tax year, provided that no sales or other activities inconsistent with mere solicitation take place; 11. Recruiting, training or evaluating sales personnel, including occasionally using homes, hotels or similar places for meetings with sales personnel; 12. Mediating direct customer complaints with the sole purpose of ingratiating the sales personnel with the customer and facilitating requests for orders; and 13. Owning, leasing, using or maintaining personal property for use in the “in-home” office or automobile of an employee or representative, when the use of the personal property is limited to the conducting of protected activities. Thus the use by a foreign corporation’s employee or representative of equipment such as a cellular telephone, facsimile machine, photocopier or personal computer, when limited strictly to the carrying on of protected solicitation and activity entirely ancillary to such solicitation or permitted by this rule, does not, by itself subject the foreign corporation to Maine’s income tax jurisdiction.
5. Unprotected activities. The following in-state activities (assuming they are not de minimis -- see subsection (C)in this section above) will cause otherwise protected activities to lose their protection: 1. Making repairs or providing maintenance or service to the property sold or to be sold; 2. Collecting current or delinquent accounts, whether directly or by third parties, through assignment or otherwise; 3. Investigating credit worthiness; 4. Installation or supervision of installations at or after shipment or delivery; 5. Conducting training courses, seminars or lectures for personnel other than personnel involved only in solicitations; 6. Providing any kind of technical assistance or services, including, but not limited to, engineering assistance or design services, unless the purpose of such assistance or services is solely to facilitate the solicitation of orders; 7. Investigating, handling, or otherwise assisting in resolving customer complaints, other than mediating direct customer complaints with the sole purpose of ingratiating sales personnel with the customer and facilitating requests for orders; 8. Approving or accepting orders; 9. Repossessing property; 10. Securing deposits on sales; 11. Picking up or replacing damaged or returned property or stale or unsalable inventory; 12. Hiring, training, or supervising personnel, other than personnel involved only in solicitation; 13. Using agency stock checks or any other instrument or process by which sales are made within this state by sales personnel;

l4. Maintaining a sample or display room in excess of two weeks (14 days) at any one location during the tax year;

Carrying samples for sale, exchange, or distribution in any manner for consideration or other value;

Owning, leasing, using, or maintaining any of the following facilities or property:

1. Repair shop.
2. Parts department.
3. Any kind of office other than an in-home office as described in subsection ( 20) of this section below.
4. Warehouse.
5. Meeting place for directors, officers, or employees.
6. Stock of goods other than samples for sales personnel or goods used entirely ancillary to solicitation.
7. Telephone answering service that is publicly attributed to the company or to an employee or agent of the company.
8. Mobile stores, i.e. , vehicles with drivers who are sales personnel making sales from the vehicles.
9. Real property or fixtures to real property of any kind.

Consigning stocks of goods or other tangible personal property to any person, including an independent contractor, for sale;

Conducting any activity not listed in subsection (D) of this section that is not entirely ancillary to requests for orders, even if such activity helps to increase orders;

Except as provided by 36 M.R.S. §5200-B(3), owning an interest in any partnership, grantor trust, or other pass-through entity whose activities, if conducted directly by a foreign corporation, would give Maine jurisdiction over the foreign corporation, unless the activities of the pass-through entity are limited to solicitation protected by P.L. 86-272;

Maintaining, by any employee or other representative, an office or place of business of any kind, other than an in-home office located within the residence of the employee or other representative that (1) is not publicly attributed to the company or to the employee or representative of the company in such capacity, and (2) is used solely for soliciting and receiving orders from customers, for transmitting such orders outside the state for acceptance or rejection by the corporation, or for other activities protected by P.L. 86-272 or subsection (D) of this section. If the corporation maintains a telephone or other public listing within the state either in its own name or in the name of its employee or representative in such capacity, or if there is any other indication through advertising or business literature that the corporation or its employee or representative can be contacted at a specific address within the state, the Assessor will normally view the corporation’s activities as exceeding the protection afforded by P.L. 86-272. However, the normal distribution and use of business cards and stationery identifying the employee or representative’s name, address, telephone and fax numbers and affiliation with the company will not, by itself, be considered unprotected activity. The maintenance of any office or other place of business in this state that does not strictly qualify as an “in-home” office as described above causes the loss of protection. For the purpose of this rule, it is not relevant whether the corporation pays directly, indirectly, or not at all for the cost of maintaining an in-home office; and

Entering into a franchising or licensing agreement; selling or otherwise disposing of franchises and licenses; or selling or otherwise transferring tangible personal property pursuant to such franchise or license by the franchiser or licensor to its franchisee or licensee with the state.

.07 Exemption for certain out-of-state suppliers of spirits; taxable years beginning on or after January 1, 2022. For taxable years beginning on or after January 1, 2022, a corporation that is an out-of-state supplier of spirits sold to BABLO within the Department of Administrative and Financial Services (including a contractor or agent of BABLO) may not be considered to have sufficient nexus, and is not subject to Maine corporate income tax, if the corporation’s in-state activities are limited solely to the activities described in 36 M.R.S. §5202-D(2).

History

• STATUTORY AUTHORITY: 36 MRS §112
• EFFECTIVE DATE: October 2, 1994 – filing 94-397
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: May 20, 2000 – filing 2000-188
• NON-SUBSTANTIVE CORRECTIONS: November 24, 2000 - punctuation only
• AMENDED: May 10, 2022 – filing 2022-078
• AMENDED: May 3, 2023 – filing 2023-064

Chapter 810 Maine Unitary Business Taxable Income, Combined Reports and Tax Returns

Code Me. R. 18-125 Ch. 810 Maine Unitary Business Taxable Income, Combined Reports, and Tax Returns {#sec-18-125-ch.-810 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 810}

SUMMARY: This rule explains standards for determining Maine income tax for unitary businesses and for filing combined reports under 36 M.R.S. §5244 and related tax returns. A combined report is required when an affiliated group of corporations is engaged in a unitary business and at least one member of the group has Maine nexus. The combined report provides the basis for determining taxable income under the laws of the United States and the net income of a unitary business.

Outline of Contents:

Definitions

Combined report

Taxable income under the laws of the United States

Differing year-end dates

Unitary business returns

Computation of tax

Credits

Allocation and use of combined net operating losses

Carry in and carry out of net operating loss deductions

Application date

Definitions

• 1. Affiliated group. “Affiliated group” means a group of 2 or more corporations in which more than 50 percent of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or non-corporate, or by one or more of the member corporations. 36 M.R.S. §5102(1-B). 2. Apportionment factor. The apportionment factor is the sales factor. See 36 M.R.S. §5211(8) and MRS Rule 801 (18-125 C.M.R., Ch. 801.) In the case of an affiliated group of corporations engaged in a unitary business and filing a single return, the factor of the unitary business is the combined factor for all members of the group. In the case of a member of an affiliated group of corporations engaged in a unitary business that is filing a separate return, the numerator of the factor is the amount of sales in Maine attributable directly to that member plus the applicable portion of Maine sales attributable to non-nexus entities as determined under section .05(B) below and the denominator is the sales everywhere of all members of the affiliated group of corporations engaged in a unitary business. 3. Code. “Code” has the same meaning as in 36 M.R.S. §111(1-A). 4. Consistent with federal law or regulations. “Consistent with federal law or regulations” or similar language used in this rule means making a relevant determination in the same manner as under federal law or regulations. “Consistent with federal law or regulations” or similar language used in relation to determining net operating losses and the use of losses means determining in the same manner as under federal law or regulations (a) whether a net operating loss deduction is allowed, (b) the amount of deduction, or (c) the timing of the deduction. It does not mean that a net operating loss for a unitary business - its occurrence, amount, or use as a deduction - is based solely on whether the net operating loss or its use as a deduction is included on a federal return filed by member corporations of the unitary business. 5. Nexus. A corporation has nexus with Maine when it has sufficient contact with Maine to give the State jurisdiction to tax. For taxable years beginning on or after January 1, 2022, a corporation has nexus with Maine if it exceeds the nexus thresholds in 36 M.R.S. §5200-B and does not qualify for the exemption under 36 M.R.S. §5202-D. See MRS Rule 808 (18-125 C.M.R., Ch. 808). 6. Unitary business. “Unitary business” means a business activity that is characterized by unity of ownership, functional integration, centralization of management and economies of scale. 36 M.R.S. §5102(10-A).

Combined report

A taxable corporation that is a member of an affiliated group and that is engaged in a unitary business with one or more other members of that affiliated group must file a combined report. 36 M.R.S. §5220(5). Maine utilizes a “water’s edge” methodology for determining the apportionable income base, meaning the income subject to apportionment is the income required to be reported on the taxpayer’s federal income tax return as modified by Maine law. Therefore, all unitary members of the affiliated group, except those members not required to file a federal return, must be listed on the combined report. Furthermore, the income of a corporation not required to file a federal return may not be included on the combined report. The apportionment factor must include only those amounts attributable to the apportionable income base for that taxable year. Variation may be allowed when petitioned for by the taxpayer or may be required by the Assessor. See 36 M.R.S. §5211(17).

The combined report must indicate whether each corporation has nexus with Maine. The combined report must also include, both in the aggregate and by corporation: the federal taxable income, state modifications provided by 36 M.R.S. §5200-A, sales in Maine and everywhere, and the Maine net income of the unitary business . See 36 M.R.S. §5244. The corporations listed that are unitary members of the affiliated group and that have nexus with Maine must file a Maine corporate income tax return or returns as provided in section .05 below. See 36 M.R.S. §5220(5).

Taxable income under the laws of the United States

The taxable income under the laws of the United States, see 36 M.R.S. §5102(8), of the unitary business is determined in the following manner:

• 1. The separate federal taxable income, as defined under federal consolidated regulations for each member of the unitary business that is a member of a single federal consolidated filing, must be adjusted for eliminations, deferrals, and other modifications allowed under federal law and regulations. In the event that the eliminations, deferrals, and other modifications are based on intercompany transactions, such adjustments must be made only for transactions between corporations included in the combined report. If a unitary group member did not receive the full benefit of an allowable tax benefit (such as a charitable contribution deduction) in the federal consolidated return because of the effect of income of non-unitary members in the consolidated return, the unitary member may take the adjustment that would have been allowed under federal law if only the unitary members had filed the consolidated return. 2. The federal taxable income (before special deductions and net operating loss deductions) from the federal returns of unitary group members that are not members of a federal consolidated group must be added to the income amounts obtained pursuant to subsection A above. 3. The taxable income referenced in subsections A and B above includes, for a corporation with an interest in a passthrough entity (e.g., partnership, LLC, S corporation), its distributive share of the entity income, loss, or deduction in accordance with the Code and 36 M.R.S. §5102(8). The character of any item included in the distributive share is determined as if it were realized or incurred directly by the corporation. The business of the passthrough entity is treated as the business of the corporation . See MRS Rule 801 (18-125 C.M.R., Ch. 801). 4. The income computed in accordance with subsections A and B above must be adjusted by certain intercompany transactions that result in gains/losses between corporate members of the unitary business that have not already been used to adjust income under subsection A above. Adjustments made under this subsection include, but are not limited to, those for (a) dividends paid out of income subject to apportionment under 36 M.R.S., chapter 821 by one unitary member to another unitary member; (b) deferrals of gains/losses from intercompany sales of inventory; and (c) deferrals of gains/losses from intercompany sales of fixed assets. These intercompany transactions are deferred or eliminated for the purpose of reflecting the income of the unitary business as a separate economic unit, similar to the purpose that underlies the federal consolidated filing regulations. Intercompany transactions must therefore be treated in a manner consistent with federal law and regulations. 5. The amount calculated by adjusting the aggregate income computed under subsections A and B above in accordance with subsection D above constitutes the taxable income of the unitary business under the laws of the United States before special deductions (Code §§ 241 et seq .) and net operating loss deductions (Code §172). 6. The amount of the special deductions for the members of the unitary business must be aggregated and adjusted if necessary in a manner consistent with the federal consolidated filing regulations.

The federal taxable income computed in accordance with subsection E above must be combined with the special deductions computed in accordance with subsection F above. If the result of this computation is positive, available net operating loss deductions for members of the unitary business may be applied against the income of the unitary business. If the result of the computation is negative, it constitutes a net operating loss for the unitary business and may be treated as the basis for a net operating loss deduction that may be carried back or forward consistent with the Code and related regulations and with the requirements of section .08 below.

Differing year-end dates

If the taxable years of the members of the unitary business differ, the filing member's (see section .05(A) below) taxable year must be used to determine the net income of the unitary business.

If the precise amount of a unitary member's income can be readily determined from the books for the months involved in the filing member's taxable year, those actual amounts are to be used. In the absence of a precise determination, the income of a unitary member must be converted to conform to the taxable year of the filing member on the basis of the number of months falling within the applicable taxable year. For example, if the filing member operates on a calendar year and a unitary member includible in a combined report operates on a fiscal year ending on April 30, it is necessary to assign 8/12 of that member's income from the current taxable year and 4/12 of the income from the preceding taxable year in order to arrive at a full twelve months' income to be included in the combined report. This method may be used only if the return can be timely filed after the filing member's taxable year ends. As an alternative, the combined report may include the taxable income of a group member for the taxable year ending within the taxable year of the filing member. Once one of these methods is used for a group member, that member must continue to use that method for succeeding years for as long as the corporation remains a member of the unitary business.

After the combined taxable income of the unitary business is determined on the basis of the filing member's taxable year, the apportionment factor must be computed on the basis of the same taxable year.

Unitary business returns

• 1. Single return. Taxable corporations that are members of an affiliated group and that are engaged in a unitary business may file a single return on which the aggregate Maine income tax liability of all those corporations is reported. See 36 M.R.S. §5220(5). The income of the unitary business is the net income, or Maine net income, as the case may be, of the entire group. All members of the unitary business with Maine nexus must be included in the single return.

The single return must be filed in the name and federal employer identification number of the parent corporation if the parent is a member of the unitary business and has nexus with Maine. If there is no parent corporation, if the parent is not a unitary group member, or if the parent does not have nexus with Maine, the members of the unitary business must choose a Maine taxpayer member to file the return. Once this filing member has been selected, it must remain the same in subsequent years unless an ownership change occurs or the filing member no longer has nexus with Maine. The return must be signed by a responsible officer of the filing member as the agent of all unitary business members subject to Maine tax. The Maine combined report of the unitary business must be attached to the Maine corporate income tax return. Members of the unitary group are jointly and severally liable for the tax of the members of the unitary group included in the combined return.

• 1. Separate return. If the single return option is not chosen, each unitary member that has nexus with Maine must file a separate income tax return based on the combined report. Each of the separate returns must list the combined federal taxable income and the combined state modifications of the unitary business. Each separate member determines its apportionment factor as follows. The numerator of the factor is the amount of Maine sales attributable directly to that separate member plus the applicable portion of Maine sales attributable to non-nexus entities described below. The denominator of the factor is the amount of everywhere sales of the unitary business.

The applicable portion of Maine sales attributable to non-nexus entities is determined by applying a fraction to the total Maine sales of the non-nexus entities. The fraction is equal to the separate Maine nexus member’s Maine sales attributable directly to that member (i.e., Maine sales before the addition of a portion of non-nexus affiliate sales) divided by the total Maine sales attributable directly to all nexus entities. A copy of the combined report must be attached to each of the separate returns.

Computation of tax

The gross tax is calculated by applying the Maine corporate income tax rates provided in 36 M.R.S. §5200 against the net income of the unitary group. The gross tax is then adjusted by multiplying that amount by the apportionment factor of the unitary group, the product of which is the Maine tax liability for the nexus members of the unitary group.

If separate returns are filed, each filing member applies its separate apportionment factor, as calculated under section .05(B) above, against the gross tax to determine the member’s Maine tax liability. If an alternate assignment of tax liability is elected by the assignment of the preferential rates provided in 36 M.R.S. §5200 to a specific member or members, the associated reduction of tax liability must result in an equal increase of tax liability to one or more other members of the unitary group. The sum of tax liabilities of the separate filing members must equal the Maine tax liability that would have been imposed on the nexus members of the unitary group if a single return was filed.

Credits

A tax credit generated by a taxable corporation that is a member of an affiliated group engaged in a unitary business may be applied only against the Maine income tax liability of that corporation, and not against the Maine income tax liability of other members of the unitary business, unless otherwise specifically permitted by law. If a tax credit is permitted by law to be applied against the Maine income tax liability of two or more taxable corporations that are members of the unitary business, the credit must be apportioned to each taxable corporation using its separate apportionment factor, as calculated under section .05(B) above.

Allocation and use of combined net operating losses

The allocation and/or use of losses is necessary for purposes of determining the availability of net operating loss deductions to the unitary business in the event that a member leaves the unitary business and/or a new member enters a unitary business. Net operating losses and the use of net operating losses must be allocated to each member of the unitary business that individually sustains a loss or utilizes a net operating loss. The allocation and use of the net operating losses must be done in a manner consistent with federal law and regulations.

In a year in which the unitary business as a whole experiences a loss as determined in section .03(G) above, the loss amount, and the use of the loss amount, allocated to individual members of the unitary business is determined as follows:

• 1. Allocation of losses. The loss allocated to those members that sustained a loss under the calculations performed under section .03(G) above is determined on the basis of each loss member’s proportional contribution to the loss. The proportional factor is applied against the total net loss of the unitary business as a whole to determine the amount allocated to each member that experienced the loss. 2. Allocation of use of losses. Net operating losses that make up the net operating loss deduction must be applied in chronological order. Eligible losses arising in taxable years ending on the same day and that are deductible without limitation in the taxable year are applied on a pro rata basis.

Carry in and carry out of net operating loss deductions

When a unitary business member with an allocated net operating loss carryover leaves the unitary business, the allocated net operating loss amount remaining follows the former member and is no longer available for use by the unitary business. The former member may use the net operating loss carryover when filing a separate Maine income tax return if the member does not become a member of another unitary business. If the former member becomes a member of another unitary business, the member may use the net operating loss in a manner consistent with the Code and related regulations and with the requirements of this rule.

.10 Application date

Except where otherwise stated, this rule applies to tax years beginning on or after January 1, 2010.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: September 3, 2001
• NON-SUBSTANTIVE CORRECTIONS: March 17, 2004 - punctuation only in .10
• AMENDED: March 12, 2008 – filing 2008-99
• AMENDED: September 12, 2010 – filing 2010-391
• AMENDED: April 20, 2022 – filing 2022-056
• AMENDED: May 3, 2023 – filing 2023-065
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 811 Student Loan Repayment Tax Credit

Code Me. R. 18-125 Ch. 811 Student Loan Repayment Tax Credit {#sec-18-125-ch.-811 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 811}

SUMMARY: This rule addresses the Maine student loan repayment tax credit (“SLRTC”) pursuant to 36 M.R.S. § 5217-E.

Outline of Contents:

.01 Definitions

.02 General qualifications

.03 Reduction in earned income requirement; disaster period

.04 Eligibility of education loan payments

.05 Credit limitations

.06 Application

.01 Definitions

Bachelor or associate degree in science, technology, engineering, or mathematics (“STEM”) awarded prior to January 1, 2020.

For purposes of Section .05(A), below, a “bachelor or associate STEM degree awarded prior to January 1, 2020” means an associate or bachelor degree with a major (or if no major is awarded, an equivalent concentration) as recognized by the participant’s accredited community college, college, or university limited to the following courses of study:

Animal, food, or plant science; archeology; biology; chemistry; computer and information sciences; environmental science; physics/physical, earth, or marine sciences; or registered nursing/nursing sciences;

Aeronautical engineering; architectural engineering technology; biotechnology; clinical or medical technologies; communications technology; computer technology; construction engineering technology; drafting and design technology; automotive technology; electrical and electrical engineering technology; electromechanical engineering technology; science technology; or telecommunications technology;

Chemical, civil, construction, electrical, forest, industrial, mechanical, naval, or surveying engineering;

Economics, mathematics, or statistics; or

Any degree listed on the United States Department of Homeland Security, Immigration and Customs Enforcement STEM Designated Degree Program List.

Any degree awarded prior to January 1, 2020, that is considered a STEM degree pursuant to this section will continue to qualify for STEM-degree treatment after December 31, 2019, regardless of whether the taxpayer had previously treated the degree as a STEM degree.

Bachelor or associate degree in science, technology, engineering, or mathematics awarded on or after January 1, 2020, but before January 1, 2022.

For purposes of Section .05(A), below, a “bachelor or associate STEM degree awarded on or after January 1, 2020 but before January 1, 2022,” means an associate or bachelor degree in a program of study classified under one of the following Classification of Instructional Programs (“CIP”) codes according to the Integrated Postsecondary Education Data System (“IPEDS”) of the National Center for Education Statistics (“NCES”):

CIP codes listed on the United States Department of Homeland Security, Immigration and Customs Enforcement STEM Designated Degree Program List as of the year in which the degree was awarded;

Dental Hygiene/Hygienist (CIP code 51.0602);

Kinesiology and Exercise Science (CIP code 31.0505);

Marine Science/Merchant Marine Officer (CIP code 49.0309);

Occupational Therapy/Therapist (CIP code 51.2306);

Registered Nursing, Nursing Administration, Nursing Research, and Clinical Nursing (CIP codes 51.3801 through 51.3899); and

Secondary Education and Teaching: STEM Concentrations (CIP code 13.1205 with a concentration in a field that would qualify as a STEM degree under subparagraphs a through f if the degree was earned in that field directly).

Code. “Code” means the United States Internal Revenue Code of 1986 and amendments to that Code as of the date stated in 36 M.R.S. § 111(1-A).

Earned income. “Earned income,” as defined in 36 M.R.S. § 5217-E(1)(B), has the same meaning as in Code § 32(c)(2). “Earned income” includes, without limitation, wages, salaries, tips, and other employee compensation, but only if such amounts are includible in gross income for federal income tax purposes for the taxable year. “Earned income” also includes net earnings from self-employment for the taxable year (within the meaning of Code § 1402(a)), but such net earnings shall be determined with regard to the deduction for one-half of self-employment taxes under Code § 164(f).

Earned income requirement. “Earned income requirement” means the requirement that earned income of the taxpayer during the taxable year shall be equal to at least the state minimum wage, as set out in 26 M.R.S. § 664(1), as adjusted for cost-of-living increases, as determined on January 1st of the taxable year, multiplied by 936 hours. For tax years not beginning on January 1st of the calendar year, “January 1st of the taxable year” means January 1st of the calendar year during which the taxable year begins.

Financial aid package. “Financial aid package,” as defined in 36 M.R.S. § 5217-E(1)(D), means financial aid obtained by a student for attendance at an accredited community college, college, or university for an associate, bachelor’s, or graduate degree obtained by the student from an accredited community college, college, or university after December 31, 2007. “Financial aid package” may include private loans or less than the full amount of loans under federal programs, depending on the practices of the accredited community college, college, or university.

Person related to the qualified individual. “Person related to the qualified individual” is a person that meets the criteria listed in Code §§ 267(b) or 707(b)(1).

Qualified employer plan. “Qualified employer plan” has the same meaning as in Code § 72(p)(4).

Qualified individual. "Qualified individual" means an individual, including the spouse filing a joint return under 36 M.R.S. § 5221 with the individual, who is eligible for the credit provided in this section. An individual is eligible for the credit if the individual:

Obtained an associate, bachelor's or graduate degree from an accredited community college, college or university after December 31, 2007;

During the taxable year was a resident individual as defined in 36 M.R.S. § 5102(5); and

During the taxable year had earned income of at least the state minimum wage, as set out in 26 M.R.S. § 664(1), as adjusted for cost-of-living increases, as determined on January 1st of the taxable year, multiplied by 936 hours.

.02 General qualifications

Subject to the limitations set forth in this rule, a Maine resident taxpayer who is a qualified individual under 36 M.R.S. § 5217-E may claim on their Maine income tax return the Maine SLRTC for certain eligible education loan payments made during the taxable year and certain unused credit amounts under the Maine educational opportunity tax credit (see 36 M.R.S. § 5217-D), that are related to the award of an associate, bachelor’s, or graduate degree after December 31, 2007. The SLRTC is refundable.

Married taxpayers who are qualified individuals and filing jointly may each separately claim the credit based upon their separately earned incomes.

.03 Reduction in earned income requirement; disaster period

A qualified individual must meet the earned income requirement as defined in section .01(D) to qualify for the SLRTC. The Assessor may reduce the minimum earned income requirement if a portion of the taxable year falls within a disaster period. If such a reduction is authorized by the Assessor, the amount of the reduction will be determined by multiplying the applicable minimum earned income requirement for the taxable year by the ratio of the number of days during the taxable year that fall within the disaster period to the total number of days during the taxable year.

.04 Eligibility of education loan payments

Generally. Eligible education loan payments are payments paid directly by the qualified individual to the lender with respect to loans that are in the name of the qualified individual and that are part of the qualified individual’s financial aid package. Only those loan payments made during that part of the taxable year that the qualified individual is a Maine resident qualify for the credit.

Refinanced and consolidated loans. Payments made with respect to refinanced loans or consolidated loans that are part of the qualified individual’s financial aid package are eligible for the credit if the refinanced loans or consolidated loans remain separate from other debt, but only in proportion to the portion of the loan payments that are otherwise eligible.

Payments reimbursed by employer. Eligible loan payments for which the qualified individual is reimbursed by an employer are eligible for the credit.

Education loan payments not eligible. The following education loan payments are not eligible for the credit:

1. An otherwise qualified individual may not claim payments made on their behalf by another individual or by an employer;
2. Except in the case of a spouse filing jointly with a qualified individual, an individual may not claim payments that they have made on behalf of an otherwise qualified individual;
3. Payments made on loans obtained from a person related to the qualified individual;
4. Payments made on loans obtained from a qualified employer plan;
5. Payments made on loans under a contract purchased under a qualified employer plan;
6. Payments made by the qualified individual prior to the award of their degree.

Refunded loan payments. Loan payments that are refunded by the lender, including refunds occurring after the last day of the taxable year, are not considered to have been paid and may not be claimed for purposes of the SLRTC. If a return claiming the credit was filed prior to the refund of payments, an amended return for the taxable year must be filed by the taxpayer to recalculate the SLRTC.

.05 Credit limitations

The refundable credit is limited to $2,500 per taxpayer annually and is subject to a $25,000 lifetime cap per taxpayer, except for the one-time election described in subsection A below. Each spouse on a married filing joint return is considered a separate taxpayer for purposes of the credit (i.e., except as provided in subsection A below, each spouse who is a qualified individual may receive a credit of up to $2,500 for each taxable year and a lifetime credit of up to $25,000).

A one-time election may be made to claim up to $3,500 (instead of up to $2,500) for either taxable year beginning in 2022 or 2023 by a qualified individual who received the educational opportunity tax credit under 36 M.R.S. § 5217-D during any taxable year beginning in 2019, 2020, or 2021 that was based on loans acquired to obtain a bachelor or associate STEM degree awarded prior to January 1, 2020 as defined by section .01(A) above or to obtain a bachelor or associate STEM degree awarded on or after January 1, 2020 but before January 1, 2022, as defined by section .01(B) above. The one-time increase in the annual maximum credit, up to $1,000, does not apply against the $25,000 lifetime cap.

Unused educational opportunity tax credit amounts that were allowed to be carried forward from prior taxable years under 36 M.R.S. § 5217-D(2)(A) that do not exceed the 10-year carryforward limit may be claimed for purposes of the SLRTC for any taxable year beginning on or after January 1, 2022, and before January 1, 2027. For purposes of 36 M.R.S. § 5217-E(2)(C) and this subsection, unused educational opportunity tax credit amounts do not include unused amounts that result from the educational opportunity tax credit calculation for employers under 36 M.R.S. § 5217-D(5).

.06 Application

Except where otherwise stated, this Rule applies to taxable years beginning on or after January 1, 2022.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5217-E
• EFFECTIVE DATE: May 22, 2024 – filing 2024-121
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 10, 2025

Chapter 812 Credit for Educational Opportunity

Code Me. R. 18-125 Ch. 812 Credit for Educational Opportunity {#sec-18-125-ch.-812 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 812}

SUMMARY: This rule explains in further detail the Maine income tax credit for educational opportunity pursuant to 36 M.R.S. §5217-D and defines certain terms used in the statute, including “science, technology, engineering or mathematics” (STEM), for tax years beginning on or after January 1, 2014, but before January 1, 2022.

Outline of Contents:

.01 General qualifications

.02 Credit refundability

.03 STEM – Definition applicable to degrees awarded prior to January 1, 2020

.04 STEM – Definition applicable to degrees awarded on or after January 1, 2020

.05 Bachelor’s and graduate degrees awarded simultaneously

.06 Credit allowed in the event of forbearance or deferment

.07 Regional accrediting association

.08 Application

.01 General qualifications

A taxpayer who is a qualified individual or the employer of a qualified individual under 36 M.R.S. §5217-D may claim the Maine income tax credit for educational opportunity for certain educational loan payments related to the award of certain associate, bachelor’s, or graduate degrees.

.02 Credit refundability

The credit allowed to a qualified individual is refundable if the credit is based on loans included in the financial aid package acquired to obtain (1) for tax years beginning on or after January 1, 2013, an associate degree or bachelor’s degree in STEM, or (2) for tax years beginning on or after January 1, 2016, an associate degree in any field of study. See 36 M.R.S. §5217-D(3).

.03 STEM – Definition applicable to degrees awarded prior to January 1, 2020

A. For degrees awarded prior to January 1, 2020, a STEM degree means an associate or bachelor’s degree with a major (or if no major is awarded, an equivalent concentration) as recognized by the participant’s accredited community college, college, or university limited to the following courses of study:

1. Animal, food, or plant science; archeology; biology; chemistry; computer and information sciences; environmental science; physics/physical, earth, or marine sciences; or registered nursing/nursing sciences;

2. Aeronautical engineering; architectural engineering technology; biotechnology; clinical or medical technologies; communications technology; computer technology; construction engineering technology; drafting and design technology; automotive technology; electrical and electrical engineering technology; electromechanical engineering technology; science technology; or telecommunications technology;

3. Chemical, civil, construction, electrical, forest, industrial, mechanical, naval, or surveying engineering;

4. Economics, mathematics, or statistics; or

5. Any degree listed on the United States Department of Homeland Security, Immigration and Customs Enforcement STEM Designated Degree Program List.

B. Any degree awarded prior to January 1, 2020, that is considered a STEM degree pursuant to this section will continue to qualify for STEM-degree treatment after December 31, 2019, regardless of whether the taxpayer had previously treated the degree as a STEM degree.

.04 STEM – Definition applicable to degrees awarded on or after January 1, 2020

For degrees awarded on or after January 1, 2020, a STEM degree means a degree in a program of study classified under one of the following Classification of Instructional Programs (CIP) codes according to the Integrated Postsecondary Education Data System (IPEDS) of the National Center for Education Statistics (NCES):

A. CIP codes listed on the United States Department of Homeland Security, Immigration and Customs Enforcement STEM Designated Degree Program List as of the year in which the degree was awarded;

B. Dental Hygiene/Hygienist (CIP code 51.0602);

C. Kinesiology and Exercise Science (CIP code 31.0505);

D. Marine Science/Merchant Marine Officer (CIP code 49.0309);

E. Occupational Therapy/Therapist (CIP code 51.2306)

F. Registered Nursing, Nursing Administration, Nursing Research, and Clinical Nursing (CIP codes 51.3801 through 51.3899); and

G. Secondary Education and Teaching: STEM Concentrations (CIP code 13.1205 with a concentration in a field that would qualify as a STEM degree under subsections A through F if the degree were earned in that field directly).

.05 Bachelor’s and graduate degrees awarded simultaneously

In the case of a bachelor’s degree and a graduate degree awarded simultaneously, the eligible loan payments made during the taxable year for tuition and fees associated with courses taken to acquire the degrees must be apportioned between the degrees using the proration method specified in this section. The proration method is used (1) to apportion amounts due and amounts paid between two separate qualifying degrees for the purpose of claiming each individual credit, and (2) to remove amounts due or amounts paid on loans associated with a nonqualifying degree. Tuition and fees of a course that could reasonably be apportioned to either of the degrees must be apportioned to one degree or the other. For each degree, the proration is a fraction, the numerator of which is the tuition and fees of the courses taken to acquire that degree and the denominator of which is the total tuition and fees of the courses taken to obtain both degrees. The combined tuition and fees apportioned to each degree may not exceed the total tuition and fees to obtain both degrees.

.06 Credit allowed in the event of forbearance or deferment

For tax years beginning on or after January 1, 2020, the payment amount considered due for purposes of 36 M.R.S. §5217-D(2)(B) for any month of the taxable year in which the qualified individual’s or qualified employee’s required student loan payment is suspended due to forbearance or deferment is equal to the student loan payment amount that would be due but for forbearance or deferment, as established by supporting documentation provided to the Assessor that establishes that amount.

Variable Payment Amount. For loans with a payment amount due that varies from month to month, the monthly payment amount considered due during forbearance or deferment is calculated using the average student loan payment due during the months of the taxable year in which the loans were not in forbearance or deferment. If the loans were in forbearance or deferment for the entire taxable year and the amount otherwise due is not known, the monthly payment amount considered due during forbearance or deferment is equal to the benchmark loan payment as determined under 36 M.R.S. §5217-D(1)(A).

Payment Amount Unknown. If the taxpayer does not establish the student loan payment amount that would be due but for forbearance or deferment by providing sufficient supporting documentation to the Assessor, the monthly payment amount considered due during forbearance or deferment is equal to the benchmark loan payment as determined under 36 M.R.S. §5217-D(1)(A).

.07 Regional accrediting association

For purposes of 36 M.R.S. §5217-D, a regional accrediting association is either (1) any of the United States accrediting associations/commissions that comprise the Council of Regional Accrediting Commissions, or (2) an equivalent non-United States accrediting association, commission, or government entity that is a reliable authority on the quality of the education or training provided by the institutions of higher education it accredits or charters and that applies standards substantially equivalent to those utilized by the associations/commissions that comprise the Council of Regional Accrediting Commissions.

.08 Application

Except where otherwise stated, this rule applies to income tax years beginning on or after January 1, 2014 and before January 1, 2022.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112, 5217-D
• EFFECTIVE DATE: April 22, 2013 – filing 2013-102
• AMENDED: May 27, 2015 – filing 2015-099
• AMENDED: January 28, 2021 – filing 2021-027
• AMENDED: May 3, 2023 – filing 2023-066
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 10, 2025

Chapter 813 Property Tax Fairness Credit

Code Me. R. 18-125 Ch. 813 Property Tax Fairness Credit {#sec-18-125-ch.-813 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 813}

SUMMARY: The purpose of this rule is to provide comprehensive definitions and explanations of statutory terms and procedures for claiming the Maine individual income tax property tax fairness credit pursuant to 36 M.R.S. §5219-KK.

Outline of Contents:

Taxpayer

Homestead

Income

Property Taxes Paid

Rent Constituting Property Taxes Paid

Application

Taxpayer

1. Generally. A Maine resident individual is allowed a property tax fairness credit computed in accordance with 36 M.R.S. §5219-KK and this rule. The credit is based on property taxes paid, or rent constituting property taxes paid, by the resident individual, including, for tax years beginning on or after January 1, 2022, property tax paid on the taxpayer’s behalf by the State to a municipality under the Property Tax Deferral Program pursuant to 36 M.R.S. §§ 6250-6266, during the tax year on the individual’s homestead in Maine. The credit allowed is refundable.
2. Unmarried individuals sharing a homestead. Unmarried individuals who shared a homestead in Maine during the tax year and are claiming the property tax fairness credit must each claim the property tax fairness credit based on their individual income and their respective share of the property taxes paid or rent constituting property taxes paid for the right to occupy the homestead.
3. Married individuals filing joint return. Married individuals filing a joint income tax return and claiming the property tax fairness credit must do so based on their joint income and on the property taxes paid or rent constituting property taxes paid during the tax year on their homestead in Maine.

Individuals who married during the tax year may claim on the joint Maine income tax return property taxes paid or rent constituting property taxes paid on the homestead owned or rented in Maine by each prior to marriage.

1. Married individuals filing separate returns

(1) For tax years beginning prior to January 1, 2017, married individuals filing separate returns must each claim the property tax fairness credit based on their separate amounts of income and property taxes paid or rent constituting property taxes paid during the tax year on their homestead in Maine.

If each spouse filing a separate return is entitled to claim property taxes paid or rent constituting property taxes paid on the same homestead, the credit that each spouse may claim cannot exceed 50% of the credit amount for married individuals filing a joint return.

(2) For tax years beginning on or after January 1, 2017, married individuals filing separate returns do not qualify for the property tax fairness credit.

E. Veterans who are permanently and totally disabled. For tax years beginning on or after January 1, 2023, a resident individual who is a veteran and 100% permanently and totally disabled is allowed an additional income tax credit equal to the amount of the property tax fairness credit calculated for the individual under 36 M.R.S. §5219-KK(2-D). The total of the additional credit and the property tax fairness credit calculated under 36 M.R.S. §5219-KK(2-D) may not exceed the property taxes paid and rent constituting property taxes paid during the tax year. For more information, see 36 M.R.S. §5219-KK(2-E).

For married taxpayers filing a joint return, only one spouse is required to be a veteran who is 100% permanently and totally disabled to qualify for the additional credit.

“100% permanently and totally disabled” means having a rating by the United States Department of Veterans Affairs of 100% for one or more service-connected disabilities that are rated permanent.

“Veteran” has the same meaning as 36 M.R.S. §653(1)(E).

Homestead

1. Generally. “Homestead” means the dwelling owned or rented by the taxpayer or held in a revocable living trust for the benefit of the taxpayer and occupied by the taxpayer and the taxpayer’s dependents as a home. The dwelling must have been occupied as the primary residence of the taxpayer during the tax year. A taxpayer may not occupy more than one homestead at the same time except in the case of individual spouses who, prior to becoming married during the tax year, occupied separate homesteads in Maine and who file a married joint Maine tax return. The homestead may consist of a part of a multi-dwelling or multipurpose building and up to 10 acres of contiguous land upon which the homestead is built. Separate parcels of land are considered contiguous if separated solely by a road, or public or private right of way.

“Owned” includes possession by a purchaser under a land contract, possession by one or more joint tenants or tenants-in-common, and possession under a legally binding agreement that allows the owner of the dwelling to transfer title to the property but continue to occupy the dwelling as a home until some future event stated in the agreement.

Ownership of a homestead may be by fee, by life tenancy, by bond for a deed, as mortgagee, or any other similar possessory interest provided that the owner is personally responsible to the municipality or taxing authority for the property tax for which the property tax fairness credit is claimed.

1. “Dwelling” means an individual house or apartment, duplex unit, cooperative unit, condominium unit, mobile home, or mobile home pad.

A dwelling does not include room and board, a nursing home room, or a room in another person’s private home.

Occupying the homestead. The taxpayer must occupy the homestead as the taxpayer’s primary residence during the tax year. A taxpayer is considered to have occupied the homestead during a temporary absence due to exigent circumstances (such as illness, hospitalization and military deployment), provided that the taxpayer does not rent the homestead to another person during the period of temporary absence.

1. Congregate housing / Assisted living facilities. Congregate housing and assisted living facilities generally allow individuals to live independently in a house or apartment. However, the rent amount generally includes heat, utilities, medical services, housekeeping services, transportation, and use of common areas. In addition, meals are generally available in a central dining room for an additional charge. An individual living in congregate housing or assisted living facilities may qualify for the credit, if otherwise eligible, based on the amount of rent paid for the right to occupy the house or apartment. Other amounts paid for heat, utilities, services, meals, or similar items must be excluded from the rent claimed.
2. Seasonal dwelling occupied as a homestead in Maine. When a taxpayer occupied a seasonal dwelling in Maine as a primary residence for part of the tax year and occupied an apartment or other dwelling in Maine as a primary residence for the remainder of the year, the property tax fairness credit must be determined on the basis of the property taxes paid on the seasonal dwelling with respect to that part of the tax year during which the taxpayer occupied the seasonal dwelling as a primary residence in Maine and on the basis of the property taxes paid or rent constituting property taxes paid on the apartment or other dwelling with respect to that part of the tax year during which the taxpayer occupied the apartment or other dwelling as a primary residence in Maine.

Income

The income of the taxpayer is equal to the taxpayer’s federal adjusted gross income increased by:

1. Certain trade and business losses; capital losses; any net loss resulting from combining the income or loss from rental real estate and royalties, the income or loss from partnerships and S corporations, the income or loss from estates and trusts, the income or loss from real estate mortgage investment conduits and net farm rental income or loss; any loss associated with the sale of business property; and farm losses included in federal adjusted gross income;
2. Interest that is not included in federal adjusted gross income;
3. Social security and railroad retirement benefits that are not included in federal adjusted gross income; and
4. Certain amounts deducted in arriving at federal adjusted gross income pursuant to 36 M.R.S. §5219-KK(1)(D)(4).

Property Taxes Paid

Property taxes paid. “Property taxes paid” means property taxes paid during the taxable year on the homestead in Maine exclusive of special assessment, interest and charges for service levied on a taxpayer’s homestead. Property taxes paid does not include property taxes paid on a dwelling in Maine during that part of the tax year the taxpayer was not a resident of Maine.

1. Multiple owners. A taxpayer who is one of two or more owners of a homestead in Maine may claim a credit on the basis of the property taxes paid by the taxpayer to the extent the taxpayer occupies the dwelling as a homestead in Maine. The taxpayer must exclude the amount of property taxes paid by the other owners. Owners who do not occupy the dwelling as a homestead in Maine may not claim the property taxes they paid on the homestead.
2. Part of a larger unit. If a homestead is an integral part of a larger parcel of property, such as a farm or multipurpose or multi-dwelling building, the property taxes that may be claimed for purposes of the credit is limited to the property taxes paid on the taxpayer’s homestead, including up to 10 acres of contiguous land upon which the homestead is built.
3. Business use of the homestead. Property taxes paid does not include property taxes paid on any part of the homestead used exclusively for business purposes. Property taxes paid must exclude property taxes claimed as a business expense on the taxpayer’s federal income tax return for the taxable year.

Rent Constituting Property Taxes Paid

1. Rent constituting property taxes paid. “Rent constituting property taxes paid” means 15% of the gross rent actually paid during the tax year by the taxpayer in cash or its equivalent solely for the right of occupancy of a homestead in Maine. Rent does not include amounts paid for heat, utilities, furniture, furnishings, appliances, housekeeping services, medical services, transportation or for anything other than the right to occupy a homestead. Rent does not include amounts paid by a state or federal government program or by municipal general assistance vouchers.
2. Part-year residents. Rent constituting property taxes paid by a part-year resident means the rent paid on a homestead in Maine during that part of the tax year during which the individual was a Maine resident.
3. Business use of the homestead. Rent constituting property taxes paid does not include rent paid on any part of the homestead used exclusively for business purposes. Rent constituting property taxes paid must exclude rent claimed as a business expense on the taxpayer’s federal income tax return for the taxable year.

Application. Except where otherwise stated, this rule applies to tax years beginning on or after January 1, 2014.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: May 5, 2015 – filing 2015-080
• AMENDED: May 8, 2022 – filing 2022-082
• AMENDED: May 3, 2023 – filing 2023-067
• ACCESSIBILITY CHECK: July 3, 2025
• ACCESSIBILITY CHECK: July 10, 2025

Chapter 815 Dirigo Business Incentives Program

Code Me. R. 18-125 Ch. 815 Dirigo Business Incentives Program {#sec-18-125-ch.-815 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 815}

Summary: The Dirigo Business Incentives Program is established by the Legislature in PL 2023, Chapter 412, Part J. The Department of Economic and Community Development and the Bureau of Revenue Services administer the program. This rule establishes criteria to determine eligibility for the Dirigo Business Incentives program and the process used by businesses to apply for certification as a Dirigo Business Incentives business.

§ 1 – Definitions

Terms used in this rule have the same meaning as defined in 36 M.R.S. §5219-AAA. This section also adds additional clarification to certain terms.

As used in this rule, the following terms have the following meanings:

"Commissioner" means the Commissioner of Economic and Community Development.

"Department" means the Department of Economic and Community Development.

“Eligible sector” means any one of the following industries identified and described by the corresponding code (in parentheses below) contained in the 2022 North American Industry Classification System (NAICS) issued by the United States Office of Management and Budget:

(1) Agriculture, forestry and fishing (1111 through 1141; 1151 through 1153);

(2) Manufacturing (31-33);

(3) Long-distance freight transportation (481112, 481212, 482, 483111, 483113, 483211, 48412, 48423, 48819, 4882, 4883, 4885);

(4) Software publishing (5132), data processing (518) and computer design services (5415); or

(5) Engineering (5413), architecture (5413) and scientific research and development services (5417).

Construction versus manufacturing. In general, on-site construction and assembly of an asset is considered part of the construction industry and is not an eligible sector, while the off-site production of an asset may be considered manufacturing and is an eligible sector. For example, the on-site construction of “stick-built” residential housing is not an eligible sector, but the production of manufactured housing at a central facility is an eligible sector. Similarly, the on-site construction of a power generation structure would be classified as construction while the off-site assembly and preparation of the structure components may be classified as manufacturing. For example, the assembly and preparation of an offshore wind turbine at an onshore facility would be classified as manufacturing while the final installation and ongoing operation activities would be classified as construction and electric power generation, respectively.

Local and long-distance trucking. NAICS defines “long-distance” trucking transportation establishments as those that carry goods between metropolitan areas. Local trucking establishments are those that primarily carry goods within a single metropolitan area and its adjacent nonurban areas and are not considered an eligible sector for Dirigo Business Incentives.

“Qualified business activity” means a business activity carried on primarily in an eligible sector. When determining whether an activity is carried on primarily in an eligible sector, the Department will refer to the production or service description for the relevant industry code contained in the 2022 NAICS. For example, a qualified business activity for a logging operation (NAICS code 113310) would relate to “one or more of the following: (1) cutting timber; (2) cutting and transporting timber; and (3) producing wood chips in the field.” The qualified business activity described in the letter of certification may be more specific or limited, such as “cutting timber,” or combined with other qualified business activities, such as “cutting and transporting timber and operating a sawmill.”

The entirety of spaces, property, and functions of the business will be considered in determining whether the business is engaged in one or more qualified business activities. Supporting activities that on their own would not be considered qualified business activities would nonetheless be considered as such if conducted exclusively in direct support of the business’s core qualified business activity. For example, the activities of a life sciences research operation that might be considered supporting components of a qualified business activity include those associated with lab and production areas, warehouses that receive raw material, administrative offices, quality control labs, cafeterias for employees, warehouses that hold products prior to shipment, and employee gyms and locker rooms.

A business may seek a new or revised letter of certification for any additional qualified business activity not included in the original or previous application for certification. For example, a business that receives a letter of certification establishing a qualified business activity as a precision machining operation may not claim a credit for purchasing forestry equipment, as that property is not related to the qualified business activity described in the original letter of certification issued to the business. However, the business may request that the Department amend the letter of certification to include the additional qualified business activity.

§ 2 – Certification of Qualified Dirigo Businesses

Eligibility

To be certified as a qualified business, a business must be a for-profit business in this State engaged in an eligible sector, or in the case of a new business to the State, will be engaged in an eligible sector when their business activity begins. The business must intend to place eligible business property into service or begin training as part of a qualified worker training program within two years of filing their application for certification. Capital investment or worker training begun prior to the issuance of a letter of certification from the Commissioner will not be eligible for the credit under 36 M.R.S. §5219-AAA(4).

Application requirements

A business seeking certification shall electronically submit for the Commissioner’s review one original, signed application containing the following information:

Information on the business’s activity:

1. A description of the qualified business activity in which the business will be engaged.
2. The addresses of business operations in Maine, including planned new locations, that will be the site of qualified business activities for the Dirigo program. If the business has identified a new location but not yet closed the sale or finalized a lease for the property at the time of application, they may choose to list only the municipality or county instead of the full address of that location.
3. The eligible sector or sectors within which the business will perform its qualified business activity.

Information on the business’s investment, training, and overall expansion plans:

1. The timeframe of the project(s) the business is undertaking for which it is applying for certification.
2. The dollar amount, per year and in total, planned to be expended on the project that is expected to constitute eligible capital investment, as well as any additional project investment that is not expected to be eligible for the credit allowed under 36 M.R.S. §5219-AAA(4);
3. Confirmation that the business has reviewed and understands the limitations on eligible business property as described in 36 M.R.S. §5219-AAA.
4. A list of any planned qualified training programs, including: 1. The number of workers per year planned to be trained by the qualified training program; 2. A description of the type(s) of training provided, including the number of training hours per worker; and 3. A list of the training provider(s) the business intends to use. This may be the specific organization if known at the time of application and/or the category of qualified program as listed in 36 M.R.S. §5219-AAA(1)(P).

Confirmation that the business meets all eligibility criteria, including that the business:

1. Is a for profit business operating or planning to begin operations in Maine;
2. Is not a public utility as defined by 35‑A M.R.S. §102(13);
3. Is not currently certified under the Pine Tree Development Zone or Employment Tax Increment Financing programs;
4. Is not currently certified to receive one of the tax credits allowed under 36 M.R.S. §§ 5219-RR or 5219-YY; and
5. Has not undergone a layoff in the past two tax years as defined in 36 M.R.S. §§ 5219-AAA(1)(I). The Department may request the business to provide documentation to support this requirement, including, but not limited to, employment numbers as submitted on Line 1 of state quarterly wage reports (Form ME UC-1 or equivalent).

General information about the business, including:

1. Preferred contact information;
2. Information to correctly identify the taxpayer entity, including taxpayer identification number and business structure (e.g., LLC, C-Corp, S-Corp, sole proprietorship);
3. Number of employees in Maine at the time of application;
4. The name, relationship, and shared ownership percentage of any affiliated businesses operating in Maine.

Any other information the Department may reasonably require.

The information contained in a business’s application is confidential to the extent provided by 36 M.R.S. §191(2)(SSS).

Applications may be submitted beginning July 1, 2024.

Letter of Certification

The Commissioner will review and act upon submitted applications for Dirigo Business Incentive certification. Before issuing a letter of certification for a business, the Commissioner will determine that the application is complete, the applicant meets the criteria to be a qualified business engaged in (or will be engaged in) a qualified business activity, and the applicant will engage in eligible capital investment or a qualified worker training program in service of the qualified business activity.

If all criteria have been met, the Commissioner will issue a letter of certification to the qualified business stating:

The name of the certified entity, including any affiliated businesses that will be engaged in the qualified business activity.

The qualified business activity, including:

1. A written description of the qualified business activity;
2. The eligible sectors within which the business will perform its qualified business activity; and
3. The planned location(s) of the qualified business activity.

The effective date and expiration date of the letter of certification.

The eligibility requirements for remaining a qualified business and receiving any tax benefits allowed under section 36 M.R.S. §5219-AAA.

The letter of certification will be valid for five years beginning with the date it is issued. For example, a letter of certification issued on February 1, 2025, will be valid until February 1, 2030. Letters of certification issued between July 1, 2024, and December 31, 2024, will have an effective start date of January 1, 2025, and an end date of January 1, 2030.

If an application does not meet the criteria to receive a letter of certification, the Commissioner will issue a provisional denial to the applicant with an explanation of the criteria not met. A business may file an appeal with the Department within 30 days of receiving the provisional denial if they believe the denial was issued in error. The appeal must include a response to the explanation included in the provisional denial. The Commissioner will review the appeal and original application and issue either a letter of certification or a final denial.

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History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5219-AAA
• EFFECTIVE DATE: March 20, 2024 – filing 2024-072

Chapter 816 Dirigo Business Incentives Tax Credit

Code Me. R. 18-125 Ch. 816 Dirigo Business Incentives Tax Credit {#sec-18-125-ch.-816 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 816}

SUMMARY: This joint rule is coordinated with the Department of Economic and Community Development (“DECD”) and Maine Revenue Services (“MRS”) Joint Rule 300/815 (Dirigo Business Incentives Program) and explains in further detail the Maine Dirigo Business Incentives Tax Credit (“DTC”) established by 36 M.R.S. § 5219-AAA.

Outline of Contents:

.01 Definitions

.02 Taxpayers eligible for the DTC

.03 Credit allowed

.04 Credit limitation, refundability, carryover

.05 Recapture and disallowance of the DTC

.06 Information required when claiming the DTC

.07 Application

.01 Definitions. The following terms have the following meanings:

Affiliated business. “Affiliated business,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(A), means a member of a group of 2 or more businesses in which more than 50% of the voting stock of each member corporation or more than 50% of the ownership interest in a business other than a corporation is directly or indirectly owned by a common owner, either corporate or noncorporate.

Beneficiary’s pro rata share of tax credits. “Beneficiary’s pro rata share of tax credits” means the beneficiary’s share of federal distributable net income of the estate or trust. If the estate or trust has no federal distributable net income for the taxable year, the beneficiary’s pro rata share of tax credits is equal to the proportion of that beneficiary’s share of the estate or trust income for that year, under local law or the terms of the instrument, which is required to be distributed currently, and any other amounts of income distributed in that year.

Catastrophic event. “Catastrophic event,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(B), means a fire, flood, hurricane, windstorm, earthquake or other similar event or a declared state disaster or emergency within the meaning of 10 M.R.S. § 9902(1) that is not within the control of a business to prevent.

Code. “Code” has the same meaning given that term by 36 M.R.S. § 111(1-A).

Eligible business property. “Eligible business property” means, as provided by 36 M.R.S. §§ 5219-AAA(1)(E) and (8), business property of the qualified business that is:

Tangible personal property or real property (other than land)

Purchased on or after the date of the letter of certification issued by the DECD;

Placed in service in Maine during the taxable year beginning after December 31, 2024;

Used exclusively in the qualified business activity described in the letter of certification; and

Subject to an allowance of depreciation of 5 years or more, or would be subject to an allowance of depreciation of 5 years or more if the property had not been expensed under Section 179 of the Code.

Eligible business property does not include:

Property purchased or transferred from an affiliated business;

Property located at a retail sales facility and used primarily in a retail sales activity;

A vehicle upon which an excise tax under 36 M.R.S., chapter 111 has been imposed;

A watercraft upon which an excise tax under 36 M.R.S., chapter 112 has been imposed;

Property used to calculate the credit for rehabilitation of historic properties under 36 M.R.S. § 5219-BB; or

Real property placed in service in Maine prior to the taxable year for which the DTC under 36 M.R.S. § 5219-AAA is sought.

Eligible capital investment. “Eligible capital investment,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(F), means the total of business expenditures that exceed $50,000 incurred by the taxpayer after receiving a letter of certification to purchase eligible business property that was placed into service during the tax year. For example, the eligible capital investment may occur in a year that is different than the year during which the eligible business property is placed in service; however, the credit may only be claimed in the year during which the eligible business property is placed in service.

Lease payments for the use of property do not qualify as an expenditure for the purchase of eligible capital investment.

Eligible sector. “Eligible sector,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(G), means one of the following industries only:

1. Agriculture, forestry and fishing;

2. Manufacturing;

3. Long-distance freight transportation;

4. Software publishing, data processing and computer design services; or

5. Engineering, architecture and scientific research and development services.

Exclusively. “Exclusively” means 100% use.

“Four quarters. “Four quarters” means the 364 consecutive-day period (365 consecutive-day period in the case of a leap year) that ends on the date immediately preceding the date the layoff occurs. Each quarter during the four-quarter period consists of 91 days (92 days for any quarter during a leap year that includes February).

Layoff. “Layoff” has the same definition as in 36 M.R.S. § 5219-AAA(1)(I).

The percentage of employment loss must be determined based on the number of employees employed by the taxpayer on the date immediately preceding the date that the reduction in workforce commences. Vacant positions must be excluded when determining the number of employees employed. If a reduction in workforce is phased-in over time, the percentage must be calculated each day that a reduction occurs to establish the date on which the 20% threshold has been reached.

Letter of certification. “Letter of certification” means the letter issued by the DECD in accordance with 36 M.R.S. § 5219-AAA(3) and Joint Rule 300/815 that certifies that the business is a qualified business and that describes the qualified business activity of the qualified business.

Placed in service. “Placed in service” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(J), means the date the property is placed in service for purposes of depreciation under Sections 167 or 168 of the Code or would be eligible for depreciation if the property had not been expensed under Section 179 of the Code.

Primarily. “Primarily,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(K), means more than 50% of the time and, with respect to a building or other structure, more than 50% of the usable space.

Pro rata share of the partner or shareholder. “Pro rata share of the partner or shareholder” means, in the case of a partner in a partnership, the partner’s percentage interest in the taxable income or loss of the partnership for federal income tax purposes for the taxable year or, in the case of a shareholder in an S corporation, the shareholder’s percentage share of stock of the S corporation as of the end of the taxable year.

Property used exclusively in the qualified business activity. “Property used exclusively in the qualified business activity” means eligible business property that is used for no activity other than the qualified business activity described in the letter of certification, including property used in direct support of the qualified business activity described in the letter of certification. For example, property purchased and placed in service in Maine during the taxable year by the qualified business in administrative offices, warehouses, production facilities, quality control facilities, cafeterias, employee gyms and locker rooms, and other facilities used exclusively in support of the qualified business activity described in the letter of certification would be considered property used exclusively in the qualified business activity as long as the property also meets the criteria contained in the definition of eligible business property.

Qualified business. “Qualified business,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(M), means a for-profit business in Maine engaged in an eligible sector that has received a letter of certification as a qualified business.

Qualified business activity. “Qualified business activity,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(N), means a business activity carried on primarily in an eligible sector.

Qualified employee. “Qualified employee,” which has the same definition as in 36 M.R.S. § 5219-AAA(1)(O), means an employee who is employed in Maine by a qualified business and works primarily in a qualified business activity in Maine.

Qualified employee training program. “Qualified employee training program," which has the same definition as in 36 M.R.S. § 5219-AAA(1)(P), means a qualified business’s training activities for a qualified business activity described in a letter of certification issued by the DECD for a minimum of three qualified employees that provide a minimum of 20 total training hours for each qualified employee and are:

An apprenticeship program registered under the Maine Apprenticeship Program pursuant to 26 M.R.S., chapter 37;

An on-the-job training contract pursuant to 26 M.R.S. § 2172;

A training provided by or approved funding from the Maine Community College System; or

Education or training provided by the University of Maine System or other accredited university or college in Maine;

“Qualified employee training program” includes only training hours during which the qualified business pays a participating qualified employee the employee’s regular hourly rate or training hours for which the qualified business pays more than $2,000 per participant.

Regular hourly rate. “Regular hourly rate” means, for purposes of a qualified employee training program, the hourly rate of compensation applicable to the employee immediately prior to the employee commencing a qualified employee training program or, if employment commences on the same date as the training program, the hourly rate of compensation that is, or would otherwise be, applicable on the first date of employment. “Regular hourly rate” does not include any additional or premium rate of compensation, such as an additional rate of compensation applicable to overtime.

Removed from service. “Removed from service” means, with respect to eligible capital investment property, property no longer used exclusively in the qualified business activity described in the letter of certification. Examples of property removed from service include, but are not limited to, the sale of the property, moving the property to a location outside Maine, repurposing the property for use in an activity other than a qualified business activity, and discontinuing use of the property. “Removed from service” does not include temporarily discontinuing use of the property for maintenance or repair or as a result of a catastrophic event.

Taxable corporation. “Taxable corporation,” which has the same definition as in 36 M.R.S. § 5102(10), means, for any taxable year, a corporation that has nexus with Maine pursuant to 36 M.R.S. § 5200‑B, including any corporation with income subject to federal tax under the Code, Section 1374 or 1375, and that has, at any time during that taxable year, realized Maine net income.

Two consecutive months. “Two consecutive months” means, for purposes of determining a layoff, any consecutive 60-day period that occurs during the taxable year of the taxpayer.

Unitary business. “Unitary business,” which has the same definition in 36 M.R.S. § 5102(10-A), means a business activity which is characterized by unity of ownership, functional integration, centralization of management, and economies of scale.

.02 Taxpayers eligible for the DTC. A taxpayer eligible for the DTC is a taxpayer that:

Received a letter of certification; and

Made and/or had:

1. the required eligible capital investment to purchase eligible business property that was placed in service in Maine during the taxable year;
2. qualified employees that completed a qualified employee training program during the taxable year.

.03 Credit allowed. Subject to sections .04 and .05 below, the amount of DTC allowed is equal to the total of subsections A and B of this section.

Eligible capital investment portion of the credit. The eligible capital investment portion of the credit is equal to the total of the following:

1. Ten percent of the eligible capital investment placed in service in Maine during the taxable year by the qualified business outside of Cumberland, Sagadahoc, and York counties; and
2. Five percent of the eligible capital investment placed in service in Maine during the taxable year by the qualified business in Cumberland, Sagadahoc, and York counties.

Training portion of the credit. The training portion of the credit is equal to $2,000 for each new or existing qualified employee who completed a qualified employee training program during the tax year. The training must commence on or after the date the letter of certification is issued.

Zero credit amount. Notwithstanding subsections A and B of this section, the DTC for a taxable year is zero if all of the eligible capital investment property forming the basis of the credit for the taxable year under subsection A of this section is removed from service during the same taxable year in which the property was placed in service. This paragraph does not apply if the property was removed from service temporarily for maintenance or repair or as a result of a catastrophic event.

.04 Credit limitation, refundability, carryover

Credit Limitation. Except as provided by paragraphs 1 through 4 of this subsection, the total credit allowed under section .03 above that may be claimed by the taxpayer in any one taxable year, including the refundable amount determined in accordance with subsection B of this section and the amount of the credit carried over to the taxable year from a prior taxable year determined in accordance with subsection C of this section, is limited to $2,000,000.

1. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder.
2. In the case of a taxpayer that is a beneficiary of an estate or trust that is a partner in a partnership or shareholder in an S corporation, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by each beneficiary’s pro rata share of tax credits.
3. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation that is an affiliated business, the credit may not exceed $2,000,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by a ratio, the numerator of which is the eligible capital investment of the affiliated business during the taxable year plus $2,000 for each qualified employee of the affiliated business engaged in a qualified employee training program completed during the taxable year and the denominator of which is the total eligible capital investment of all members of the affiliated business group during the taxable year plus $2,000 for each qualified employee of all members of the affiliated business group engaged in a qualified employee training program completed during the taxable year.
4. In the case of corporations that are members of an affiliated business group engaged in a unitary business, the credit may not exceed $2,000,000 for the entire group. The credit limit of $2,000,000 must be apportioned among the taxable corporations in the affiliated business group in the same proportion that the tax liability of each taxable corporation in the affiliated business group bears to the total tax liability of all the taxable corporations in the affiliated business group.

Refundability. Except as provided by paragraphs 1 through 4 of this subsection, the credit for the taxable year determined in accordance with section .03 above is refundable up to $500,000.

1. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation, the credit is refundable up to an amount equal to $500,000 multiplied by the pro rata share of the partner or shareholder.
2. In the case of a taxpayer that is a beneficiary of an estate or trust that is a partner in a partnership or shareholder in an S corporation, the credit is refundable up to an amount equal to the amount determined in accordance with paragraph 1 for the estate or trust multiplied by each beneficiary’s pro rata share of tax credits.
3. In the case of a taxpayer that is a partner in a partnership or a shareholder in an S corporation that is an affiliated business, the credit is refundable up to an amount equal to $500,000 multiplied by the pro rata share of the partner or shareholder, the result of which is multiplied by a ratio, the numerator of which is the eligible capital investment of the affiliated business during the taxable year plus $2,000 for each qualified employee of the affiliated business engaged in a qualified employee training program completed during the taxable year and the denominator of which is the total eligible capital investment of all members of the affiliated business group during the taxable year plus $2,000 for each qualified employee of all members of the affiliated business group engaged in a qualified employee training program completed during the taxable year.
4. In the case of corporations that are members of an affiliated business group engaged in a unitary business, the credit under this section is refundable up to $500,000 for the entire group. The credit limit of $500,000 must be apportioned among the taxable corporations in the affiliated business group in the same proportion that the tax liability of each taxable corporation in the affiliated business group bears to the total tax liability of all the taxable corporations in the affiliated business group.

Carryover. Any credit allowed under section .03 above for the taxable year that is unused may be carried over, as reduced from year to year, to the next succeeding 4 taxable years, except as otherwise limited under section .05(B) below.

.05 Recapture and disallowance of the DTC

Recapture. The DTC claimed by the qualified business for a taxable year under section .03 above is subject to recapture as follows:

1. Incidence of recapture. The DTC for any taxable year is subject to recapture if any portion of the eligible capital investment property forming the basis of the credit is removed from service in Maine prior to the 5th anniversary of the date the property was placed in service in Maine by the qualified business. Recapture of the DTC applies to the taxable year during which the property is removed from service.
2. Amount of recapture. The amount of the recapture under paragraph 1 of this subsection is equal to the result of the following: 1. The total credit claimed by the taxpayer under section .03 above (as limited by section .04(A) above) for the taxable year during which the property was placed in service in Maine multiplied by a fraction, the numerator of which is the amount of the eligible capital investment of the property removed from service and the denominator of which is the total amount of eligible capital investment for the taxable year during which the property was placed in service in Maine, multiplied by subparagraph b. 2. A fraction, the numerator of which is the number of years remaining in the five-year period beginning with the date the property that was removed from service was placed in service in Maine, rounded up to the next whole number, and the denominator of which is 5.
3. Reporting and paying the recapture amount. The amount of recapture determined under paragraph 2 of this subsection must be reported as an additional tax amount on, and the recapture amount paid with, the taxpayer’s Maine income tax return for the taxable year during which the property is removed from service.
4. Recapture not applicable. There is no recapture of the employee training portion of the credit allowed under section .03(B) above unless there is also a recapture of the eligible capital investment portion of the credit claimed for the same taxable year that the taxpayer claimed the employee training portion of the credit.

Disallowance

1. Incidence of disallowance. Unused credit carryover amounts determined under section .04(C) above are subject to disallowance if: 1. Any portion of the eligible capital investment property forming the basis of the credit is removed from service prior to the fifth anniversary of the date the property was placed in service in Maine by the qualified business; or 2. A layoff has occurred during the taxable year.
2. Amount of disallowance. The amount of the disallowance is determined as provided by this paragraph. 1. In the case of subparagraph a of paragraph 1 of this subsection, the disallowance is equal to the total credit claimed under section .03 above (as limited by section .04(A) above) for the taxable year during which the property was placed in service in Maine: 1. Multiplied by a fraction, the numerator of which is the amount of the eligible capital investment of the property removed from service and the denominator of which is the total amount of eligible capital investment for the taxable year during which the property was placed in service in Maine, multiplied by subparagraph ii below. 2. A fraction, the numerator of which is the number of years remaining in the five-year period beginning with the date the property was placed in service in Maine, rounded up to the next whole number, and the denominator of which is 5. 2. In the case of subparagraph b of paragraph 1 of this subsection, the total of the unused carryover amounts determined under section .04(C) above with respect to all taxable years prior to the year of the layoff.

.06 Information required when claiming the DTC. In addition to any other information, the State Tax Assessor may require the following information to be provided by the taxpayer claiming the DTC:

The name, municipality in Maine in which the qualified business’s primary place of business is located, and business type, including the parent company, if applicable, of the qualified business;

The number of qualified employees engaged in a qualified employee training program completed during the taxable year;

The value of eligible capital investment expenditures by county of eligible capital investment property placed in service in Maine during the taxable year;

The credit claimed with respect to each of the following categories:

1. Eligible capital investment property placed in service in Maine during the taxable year in Cumberland, Sagadahoc, and York counties;
2. Eligible capital investment property placed in service in Maine during the taxable year outside of Cumberland, Sagadahoc, and York counties;
3. Qualified employees completing a qualified employee training program during the taxable year;

The eligible sector of the qualified business as identified in the letter of certification.

.07 Application.

This Rule applies to taxable years beginning on or after January 1, 2025.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5219-AAA(9)
• APAO ACCESSIBILITY CHECK: July 25, 2025
• EFFECTIVE DATE: August 2, 2025 – filing 2025-153

Chapter 818 Renewable Chemicals Tax Credit

Code Me. R. 18-125 Ch. 818 Renewable Chemicals Tax Credit {#sec-18-125-ch.-818 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 818}

SUMMARY: This rule addresses required information reporting by taxpayers and third-party testing of renewable chemicals for purposes of the renewable chemicals tax credit.

Outline of Contents:

.01 Definitions

.02 Information reporting by taxpayer

.03 Affidavit of third-party testing

.04 Application date

.01 Definitions

A.As used in this rule, the terms “biobased content,” “cellulose nanomaterial,” “renewable biomass,” and “renewable chemical” have the same meanings as given those terms in 36 M.R.S. §5219-XX(1).

.02 Information reporting by taxpayer. A taxpayer claiming a renewable chemicals tax credit (the “credit”) for the tax year must provide with the return claiming the credit the following information in order to meet the requirements of 36 M.R.S. §5219-XX(5) and establish eligibility for the credit.

A written explanation of how the chemicals used to calculate the credit meet the definition of renewable chemical contained in 7 U.S.C. §8101(14).

Documentation establishing that the renewable chemical produced by the taxpayer in the State of Maine during the tax year is either (1) cellulose nanomaterial or (2) the product of, or reliant upon, biological conversion, thermal conversion, or both biological and thermal conversion.

Documentation establishing the type of renewable biomass used in the production of the renewable chemical produced by the taxpayer in the State of Maine during the tax year.

Documentation establishing the percentage of biobased content for each type of renewable chemical produced by the taxpayer in the State of Maine during the tax year. The percentage of biobased content must be determined via annual testing by a third-party contractor as described in section .03 of a representative sample of each type of renewable chemical produced by the taxpayer in the State of Maine during the tax year. The percentage determined in accordance with this subsection must be expressed as a decimal rounded to the hundredth decimal place (e.g., 45.67%).

Documentation establishing the weight of renewable chemical produced by the taxpayer in the State of Maine during the tax year. The weight must be expressed in terms of pounds produced for each type of renewable chemical.

A written description of the sale or use of the renewable chemical produced by the taxpayer in the State of Maine during the tax year.

Written notification/certification by the State of Maine Department of Economic and Community Development that the taxpayer meets the requirements of 36 M.R.S. §5219-XX(2).

The third-party contractor’s affidavit required by section .03.

Any other documentation or information the assessor may require.

.03 Affidavit of third-party testing

A taxpayer claiming the credit must obtain an affidavit from an independent third-party contractor, containing the following information:

1. A statement certifying the accuracy of the percentage of biobased content in each representative sample of renewable chemicals produced by the taxpayer in the State of Maine during the tax year provided in accordance with section .02, subsection D.
2. The date, method, and result of testing conducted by the third-party contractor.
3. The third-party contractor’s attestation that the contractor has performed the testing using the ASTM International D6866 standard test methods.
4. Attestations that the third-party contractor is not: 1. A member of an “affiliated group,” as defined by 36 M.R.S. §5102(1-B), of which the taxpayer is a member; or 2. A member, or a business of which a principal owner is a member, of the taxpayer’s immediate family. For purposes of this subparagraph, a member of the taxpayer’s immediate family consists of the taxpayer’s spouse, son, daughter, mother, father, brother, and sister.

.04 Application date. This rule applies to tax years beginning on or after January 1, 2021.

History

• STATUTORY AUTHORITY: 36 M.R.S. §§ 112 & 5219-XX(5)
• EFFECTIVE DATE: March 7, 2022 – filing 2022-032

Chapter 825 Tribal Member Income from Sources on Tribal Land

Code Me. R. 18-125 Ch. 825 Tribal Member Income from Sources on Tribal Land {#sec-18-125-ch.-825 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 825}

SUMMARY: This rule provides income tax guidance for tribal members and certain estates of tribal members for purposes of calculating the income modifications under 36 M.R.S. §§ 5122(1)(PP) and 5122(2)(ZZ) and regarding the application of Maine withholding requirements on payments made to tribal members. The guidance includes:

Determination of when an individual qualifies as a tribal member residing on tribal land; and

Determination of when income is derived from or connected with sources on tribal land.

Outline of Contents:

.01 Definitions

.02 Tribal member residing on tribal land

.03 Maine adjusted gross income from sources on tribal land

.04 Income sourced to tribal land

.05 Special sourcing rules

.06 Estate of tribal member decedent

.07 Maine income tax withholding requirements on payments to tribal members

.08 Application date

.01 Definitions

Enrolled member. “Enrolled member” means an individual who is enrolled with, and appears on the tribal membership roll of, the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, or the Penobscot Nation. Membership rolls of enrolled members are in the possession of, and maintained by, the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, and the Penobscot Nation.

Houlton Band of Maliseet Indians. “Houlton Band of Maliseet Indians” has the same meaning as in 30 M.R.S. § 6203(2).

Houlton Band Trust Land. “Houlton Band Trust Land” has the same meaning as in the federal Houlton Band of Maliseet Indians Supplementary Claims Settlement Act of 1986, Public Law 99-566, Section 2(2).

Intangible property. “Intangible property” means a right or possession of a nonphysical or abstract nature that has value, or a financial asset that has no intrinsic value but that represents value. Intangible property includes but is not limited to copyrights, patents, licenses, bills of exchange, trademarks, business books and records, business goodwill, covenants not to compete, securities, bonds, notes, insurance policies, and accounts receivable.

Original Cost. “Original cost” means the basis of the property for federal income tax purposes prior to any federal adjustments at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof by reason of sale, exchange, abandonment, or other disposition.

Passamaquoddy Indian territory. “Passamaquoddy Indian territory” has the same meaning as in 36 M.R.S. § 111(2-A). The term as defined by 30 M.R.S. § 6203(6) means the territory as defined by 30 M.R.S. § 6205(1).

Passamaquoddy Tribe. “Passamaquoddy Tribe” has the same meaning as in 30 M.R.S. § 6203(7).

Pass-through entity. “Pass-through entity” means a corporation that for the applicable tax year is treated as an S corporation under the Internal Revenue Code, or a general partnership, limited partnership, limited liability partnership, limited liability company, trust, or similar entity that for the applicable tax year is not taxed at the entity level for federal income tax purposes. “Pass-through entity” does not, for Maine income tax purposes, include a financial institution subject to tax under 36 M.R.S., chapter 819.

Payroll factor. “Payroll factor” means the ratio of compensation paid by the taxpayer to employees during the taxable year whose base of operations is on tribal land to compensation paid by the taxpayer to employees during the taxable year everywhere. The following apply only for purposes of determining the payroll factor:

Effect of accounting method. If a taxpayer has adopted the accrual method of accounting, all compensation properly accrued will be deemed to have been paid. However, compensation may be included in the payroll factor by use of the cash method if the taxpayer is required to report such compensation under that method for unemployment compensation purposes.

Base of operations. “Base of operations” means the taxpayer’s place of business from which an employee customarily begins work or to which the employee customarily returns at some other time to receive instructions, direction and supervision from the taxpayer or communications from customers or other persons, to replenish stock or other materials, to repair equipment, or to perform any other function necessary to the exercise of the employee’s trade or profession.

Compensation. “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services. Payments made pursuant to a contract to an employee-leasing company for leased employees are included at 85% as compensation or to a temporary service company for temporary employees are included at 100% as compensation. Payments made to an independent contractor, or any other person not properly classifiable as an employee, are excluded. Only amounts paid directly to employees are included in the payroll factor. Amounts considered paid directly include the value of board, rent, housing, lodging and other benefits or services furnished to an employee by the taxpayer in return for personal services provided that such amounts constitute income to the recipient under the Internal Revenue Code. In the case of employees not subject to the Internal Revenue Code (e.g., those employed in foreign countries), the determination of whether such benefits or services would constitute income to the employees is made as though such employees were subject to the Internal Revenue Code. Employer contributions under a retirement plan, qualified cash or deferred arrangement as defined in Internal Revenue Code § 401(k), and employer contributions to nonqualified deferred compensation plans are generally included in the payroll factor.

Employee. “Employee” means any officer of a corporation or any individual who would be considered an employee under the common law rules governing the employer-employee relationship. Generally, an individual is considered to be an employee if the individual is included by the taxpayer as an employee for purposes of the payroll taxes imposed by the Federal Insurance Contributions Act (“FICA”). This presumption may be overcome by evidence provided by a taxpayer that an individual who is included as an employee for purposes of FICA would not be an employee of the taxpayer under the usual common law rules. Generally, an independent contractor is not considered an employee.

Independent contractor. “Independent contractor” means any individual who performs services for a taxpayer, but who is not an employee of the taxpayer, and who is not otherwise subject to the supervision or control of the taxpayer in the performance of the services.

Payroll in states in which taxpayer is not taxable. Compensation paid to employees whose services are performed entirely in a state where the taxpayer is immune from taxation, for example, by 15 U.S.C. § 381 et seq. (P.L. 86-272), is included in the denominator of the payroll factor.

Penobscot Indian territory. “Penobscot Indian territory” has the same meaning as in 36 M.R.S. § 111(2-C). The term as defined by 30 M.R.S. § 6203(9) means the territory as defined by 30 M.R.S. § 6205(2).

Penobscot Nation. “Penobscot Nation” has the same meaning as in 30 M.R.S. § 6203(10).

Permanent place of abode. “Permanent place of abode” means a house, apartment, residential care facility, dwelling place, or other residence that an individual maintains as a household for the entire tax year, whether or not that individual owns it. The term does not include a seasonal camp or cottage that is used only for vacations or a dormitory room used by a student during the school year. A place of abode is not considered “permanent” if it is maintained only during a temporary stay on tribal land for the accomplishment of a particular purpose.

Property factor. “Property factor” means the ratio of the average value of the taxpayer’s real and tangible personal property owned or rented and used on tribal land during the taxable year to the average value of all of the taxpayer’s real and tangible personal property owned or rented and used during the taxable year. The following apply only for purposes of determining the property factor:

Real and tangible personal property. The term “real and tangible personal property” includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible personal property but does not include coin or currency.

Property used during the taxable year. Property is included in the property factor if it is actually used or is available for use or capable of being used during the tax period by the taxpayer. Property held in reserve or standby facilities or property held as a reserve source of materials must be included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includable in the factor. Property or equipment under construction during the tax period (except inventoriable goods in process) must be excluded from the factor until such property is actually used by the taxpayer. If the property is partially used by the taxpayer while under construction, the value of the property to the extent used must be included in the property factor. Property used by the taxpayer must remain in the property factor until its permanent withdrawal is established by an identifiable event such as its sale or the lapse of an extended period of time (normally, five years) during which the property is held for sale.

Property in transit; mobile property. Property in transit between locations of the taxpayer to which it belongs is considered to be located at the destination for purposes of the property factor. Property in transit between a buyer and seller that is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices must be included in the numerator according to the destination. The value of mobile or movable property, such as construction equipment, trucks or leased electronic equipment, that is located both within and without of tribal land during the taxable year, is determined for purposes of the numerator of the property factor on the basis of total time within tribal land during the taxable year. Automobiles assigned to traveling employees are included in the numerator of the factor to the location to which the employee's compensation is assigned under the payroll factor.

Valuation of owned property. Property owned by the taxpayer is valued at its original cost. Capitalized intangible drilling and development costs are included in the factor whether or not they have been expensed for either federal or state tax purposes. If the original cost cannot be determined, the property must be included in the factor at its fair market value as of the date acquired by the taxpayer.

Generally, the average value of all property owned by the taxpayer is determined by averaging the values at the beginning and ending of the tax period. However, the assessor may require or allow averaging of monthly values if substantial fluctuations in the values of the property exist during the taxable year or if property is acquired after the beginning of the taxable year or disposed of before the end of the taxable year.

Valuation of rented property. Property rented by the taxpayer is valued at 8 times the net annual rental rate. Subrentals are not deducted.

If property is used at no charge or rented for a rate other than a reasonable market rate, the property must be included in the property factor on the basis of a reasonable market rental rate.

The “annual rental rate” is the amount paid as rent for the property for a twelve-month period. When property is rented for less than a twelve-month period, the net rent paid for the actual period of rental constitutes the “annual rental rate” for the tax period. However, when a taxpayer has rented property for a term of 12 or more months and the current tax period covers a period of less than 12 months, the net rent paid for the short tax period must be annualized. If the rental term is for less than 12 months, the rent must not be annualized beyond its term. Rent will not be annualized because of the uncertain duration when the rental term is on a month-to-month basis.

“Rent” is the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use of the property and includes:

Any amount payable for the use of real or tangible personal property, or any part thereof, whether designated as a fixed sum of money or as a percentage of sales, profits or otherwise;

Any amount payable as additional rent or in lieu of rents, such as interest, taxes, insurance, repairs or any other items required to be paid by the terms of the lease or other arrangement but does not include amounts paid as service charges, such as utilities, janitor services, etc. If a payment includes rent and other charges unsegregated, the amount of rent must be determined by consideration of the relative values of the rent and the other items.

“Rent” does not include incidental day-to-day expenses such as hotel or motel accommodations, daily rental of automobiles, etc. “Rent” does not include royalties based on extraction of natural resources, whether represented by delivery or purchase. For this purpose, a royalty includes any consideration conveyed or credited to a holder of an interest in property that constitutes a sharing of current or future production of natural resources from such property, irrespective of the method of payment or how such consideration may be characterized, whether as a royalty, advance royalty, rental or otherwise.

Leasehold improvements are treated as property owned by the taxpayer regardless of whether the taxpayer is entitled to remove the improvements or of whether the improvements revert to the lessor upon expiration of the lease.

Tangible personal property. “Tangible personal property” means personal property that has physical existence. It can be seen, weighed, measured, felt, touched or in any other manner perceived by the senses, but does not include anything that constitutes intangible property as defined in section .01(D) above.

Tribal land. “Tribal land” means land within the Houlton Band Trust Land, the Passamaquoddy Indian territory, or the Penobscot Indian territory.

Tribal member. “Tribal member” means an enrolled member of the Houlton Band of Maliseet Indians, the Passamaquoddy Tribe, or the Penobscot Nation.

Tribal member residing on tribal land. "Tribal member residing on tribal land" means an individual who is a tribal member and:

Who is domiciled on tribal land, unless:

The tribal member does not maintain a permanent place of abode on tribal land, maintains a permanent place of abode off of tribal land and spends in the aggregate not more than 30 days of the taxable year on tribal land; or

Within any period of 548 consecutive days, the tribal member:

Is present in a foreign country or countries for at least 450 days;

Is not present on tribal land for more than 90 days;

Does not maintain a permanent place of abode on tribal land at which a minor child of the tribal member or the tribal member's spouse is present for more than 90 days, unless the tribal member and the tribal member's spouse are legally separated; and

During the nonresident portion of the taxable year with which, or within which, such period of 548 consecutive days begins and the nonresident portion of the taxable year with which, or within which, such period ends, is present on tribal land for a number of days that does not exceed an amount that bears the same ratio to 90 as the number of days contained in such portion of the taxable year bears to 548; or

Who is not domiciled on tribal land, but maintains a permanent place of abode on tribal land and spends in the aggregate more than 183 days of the taxable year on tribal land, unless the tribal member is in the Armed Forces of the United States (“U.S.”).

The geographic location of a political organization or political candidate that receives one or more contributions from the tribal member is not in and of itself determinative on the question of whether the tribal member is domiciled on tribal land. The geographic location of a professional advisor retained by a tribal member or the geographic location of a financial institution with an active account or loan of a tribal member may not be used to determine whether or not a tribal member is domiciled on tribal land. For purposes of this subsection, "professional advisor" includes, but is not limited to, a person that renders medical, financial, legal, accounting, insurance, fiduciary or investment services. Charitable contributions may not be used to determine whether or not a tribal member is domiciled on tribal land.

.02 Tribal member residing on tribal land

For purposes of this rule, a tribal member residing on tribal land is a Maine resident individual, as that term is defined by 36 M.R.S. § 5102(5). This section provides guidance to assist in making a determination as to whether an individual is, for the taxable year, a tribal member residing on tribal land.

Domicile on tribal land. An individual is considered to be a tribal member residing on tribal land if the member is domiciled on tribal land.

Generally. The word “domicile” is a common-law term that has been defined by Maine courts. Under Maine common-law, “domicile” means the place (A) where a person resides, and (B) where that person intends to remain and, whenever absent, intends to return. Thus, under Maine law, domicile has two components: residence and the intent to remain or return, if absent. Once an individual’s domicile is established, it continues until domicile is established elsewhere. An individual alleging a change in domicile has the burden to prove that domicile has been established elsewhere. The intent to move in the future is not sufficient to establish a change in domicile.

Maine Revenue Services considers all of an individual’s relevant facts and circumstances allowed by Maine law to determine the domicile of an individual. Although an individual’s intent to remain or return is a critical factor in determining domicile, an individual’s statement as to intent is not necessarily determinative. Evidence of an individual’s intent may be found in many decisions made by the individual. An individual may retain the right to make decisions that determine his or her domicile, even though that individual is considered incapable of making, or chooses not to make, other decisions, such as health care choices or financial decisions. Actions by a person responsible for an incapacitated individual’s affairs may be considered when determining the incapacitated individual’s intent to remain. When a guardian has been appointed and chooses the incapacitated individual’s place of abode pursuant to authority as a guardian, the intent of the guardian for the individual to remain or return to a particular location becomes a factor in the determination of the incapacitated person’s domicile. Evidence of the guardian’s intent may be found in relevant statements and actions.

Factors used in determining an individual’s domicile. All relevant facts and circumstances allowed by Maine law are considered in determining where an individual is domiciled. The following factors, while not exclusive or of equal weight, may be used as evidence of domicile.

1. Where the individual is enrolled as a tribal member.
2. Property ownership and residence. 1. Location of the individual’s principal residence under the Internal Revenue Code; 2. Location of the individual’s mailing address; 3. Where the individual spent the most amount of time; and 4. Whether the individual applied for a residential property tax exemption or related benefit for property in Maine on tribal land or a comparable benefit for property located elsewhere.
3. Family and dependents. 1. Whether the individual can be claimed as a dependent on another person’s federal income tax return and where that other person is domiciled; 2. Where the individual’s spouse or dependents reside; and 3. Where the individual’s dependents attend elementary or secondary school.
4. Licenses and registrations. 1. Where the individual is registered to vote; 2. The address listed on the individual’s driver’s license; 3. Where the individual’s vehicles are registered; and 4. Where the individual maintains professional licenses.
5. Financial data. 1. Where the individual earns wages; 2. The address recorded for the individual’s insurance policies, deeds, mortgages, or other legal documents; and 3. Where the individual’s safety deposit boxes are maintained.
6. Affiliations. 1. Where the individual’s fraternal, social or athletic memberships are located; 2. Where the individual’s union memberships are maintained; and 3. The location of a church or other house of worship of which the individual is a member.
7. Other factors. 1. Where the individual’s personal property is located; 2. Where the individual conducts business; 3. The address listed for the individual in a telephone directory; and 4. Where the individual’s pets are located.
8. Exceptions. Maine Revenue Services does not consider whether a donation was made to an organization located in or outside of tribal land when making domicile determinations. Also, the geographic location of an individual’s professional advisors (such as doctors, lawyers, accountants, financial advisors, and investment advisors) or the geographic location of a financial institution with an active account or loan of an individual is not considered. The geographic location of a political organization or candidate that an individual supports financially is not determinative of the individual’s domicile.

Presumption. If an individual is married, both that individual and the individual’s spouse are presumed to have the same domicile, even though they may live apart for a portion of the year. This presumption can be overcome if the facts clearly demonstrate that the spouses are domiciled in different locations.

Exceptions to domicile on tribal land.

1. Generally. Certain individuals domiciled on tribal land are treated as not residing on tribal land as described in sub-paragraphs b and c below:
2. General exception: A tribal member domiciled on tribal land will be treated as not residing on tribal land if, during the taxable year, the tribal member: 1. Did not maintain a permanent place of abode on tribal land; 2. Maintained a permanent place of abode outside of tribal land; and 3. Spent no more than 30 days in the aggregate on tribal land (with any portion of a day counted as a full day).
3. Foreign exception. A tribal member domiciled on tribal land will be treated as not residing on tribal land if: 1. Within any period of 548 consecutive days (the “548-day period”), the tribal member is present in a foreign country (or countries) for at least 450 days; 2. During the 548-day period, the tribal member is not present on tribal land for more than 90 days and does not maintain a permanent place of abode on tribal land at which the tribal member’s spouse (unless the tribal member and their spouse are legally separated) or a minor child is present for more than 90 days; and 3. During that period of the taxable year the tribal member did not reside on tribal land with which or within which the 548-day period begins and during that period of the taxable year the tribal member did not reside on tribal land with which or within which the 548-day period ends, the tribal member is present on tribal land for a number of days that does not exceed an amount that bears the same ratio to 90 as the number of days contained in the period not residing on tribal land during the relevant taxable year bears to 548.

Statutory residency on tribal land. Even if a tribal member is not domiciled on tribal land, he or she will be considered to be residing on tribal land if the tribal member maintained a permanent place of abode on tribal land and was present on tribal land for more than 183 days during the taxable year, unless the tribal member is in the Armed Forces of the United States.

.03 Maine adjusted gross income from sources on tribal land

General. For purposes of determining the income modifications under 36 M.R.S. §§

5122(1)(PP) and 5122(2)(ZZ), the Maine adjusted gross income of a tribal member derived from or connected with sources on tribal land is the sum of the following amounts:

The net amount of items of income, gain, loss and deduction entering into the tribal member’s federal adjusted gross income that are derived from or connected with sources on tribal land including:

1. The tribal member’s distributive share of partnership or limited liability company income and deductions derived from or connected with sources on tribal land determined following the methods for sourcing income to this State under 36 M.R.S. § 5192, except that 36 M.R.S. § 5132(2) - (6) and not 36 M.R.S. § 5142 apply under 36 M.R.S. § 5192(1);
2. The tribal member’s share of estate or trust income and deductions derived from or connected with sources on tribal land determined following the methods for sourcing income to this State under 36 M.R.S. § 5176, except that 36 M.R.S. § 5132(2) - (6) and not 36 M.R.S. § 5142 apply under 36 M.R.S. § 5176(1); and
3. The tribal member’s pro rata share of the income of an S corporation derived from or connected with sources on tribal land; and

The portion of the modifications described in 36 M.R.S. §§ 5122(1) and (2) that relates to income derived from or connected with sources on tribal land, including any modifications attributable to the tribal member as a partner of a partnership, shareholder of an S corporation, member of a limited liability company, or beneficiary of an estate or trust.

Attribution. Items of income, gain, loss, and deduction derived from or connected with sources within tribal land are those items attributable to:

The ownership or disposition of any interest in real or tangible personal property on tribal land;

A business, trade, profession, or occupation carried on within tribal land; and

Proceeds from any gambling activity conducted on tribal land or lottery tickets purchased on tribal land, including payments received from a 3rd party for the transfer of the rights to future proceeds related to any such gambling activity or lottery tickets, except that proceeds from Maine State Lottery tickets, including payments received from a 3rd party for the transfer of the rights to future proceeds related to the lottery tickets, are not derived from or connected with sources on tribal land.

Intangibles. Income from intangible personal property including annuities, dividends, interest and gains from the disposition of intangible personal property constitutes income derived from sources within tribal land only to the extent that such income is from property employed in a business, trade, profession or occupation carried on within tribal land.

Gain or loss on sale of partnership interest. Notwithstanding section .03(C) above, the gain or loss on the sale of partnership interest is sourced to tribal land in an amount equal to the gain or loss multiplied by the ratio obtained by dividing the original cost of partnership tangible property located on tribal land by the original cost of partnership tangible property everywhere, determined at the time of the sale. Tangible property includes property owned or rented and is valued in accordance with 36 M.R.S. § 5211(10). If more than 50% of the value of the partnership’s assets consists of intangible property, gain or loss from the sale of the partnership interest is sourced to tribal land in accordance with the property and payroll factors of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold. For purposes of this subsection, the property and payroll factors of a partnership are determined in accordance with 36 M.R.S., chapter 821. This subsection does not apply to the sale of a limited partner’s interest in an investment partnership where more than 80% of the value of the partnership’s total assets consists of intangible personal property held for investment, except that such property cannot include an interest in a partnership unless that partnership is itself an investment partnership.

If the apportionment provisions of this subsection do not fairly represent the extent of the partnership’s business activity on tribal land, the taxpayer may petition for, or the State Tax Assessor may require, in respect to all or any part of the partnership’s business activity the employment of any other method to effectuate an equitable apportionment to tribal land of the partner’s income from the sale of the partnership interest.

Deduction for losses. Deductions with respect to capital losses, net long-term capital gains and net operating losses must be based solely on income, gains, losses, and deductions derived from or connected with sources on tribal land, under regulations to be prescribed by the assessor, but otherwise must be determined in the same manner as the corresponding federal deductions.

Apportionment. If a business, trade, profession, or occupation is carried on partly within and partly without tribal land, the items of income and deduction derived from or connected with sources within tribal land must be determined as apportioned to tribal land according to the following methods:

Except as provided in paragraph 2 below of this subsection, according to the methods for apportioning income to this State under 36 M.R.S., chapter 821, except that instead of apportioning income to tribal land using the sales factor pursuant to 36 M.R.S. § 5211(8), income is apportioned to tribal land by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor and the denominator of which is 2; or

In the case of the rendering of purely personal services by a tribal member, according to the methods established in regulations to be prescribed by the assessor.

.04 Income attributable to tribal land. For purposes of subsection .03(B) above the following apply:

Generally. Income received by a tribal member is attributable to tribal land when the income is derived from or connected with sources on tribal land. The itemized and standard deductions, credits, income modifications, and personal exemptions apply to tribal members in accordance with Maine law. A loss is sourced to tribal land in the same manner that a gain is sourced to tribal land.

Compensation for personal services derived from or connected with sources on tribal land. Personal services compensation derived from or connected with sources on tribal land is the income derived from personal services performed on tribal land. Compensation includes, but is not limited to, wages, salaries, taxable benefits such as annual and sick leave, commissions, fees, and payment in kind. Personal services compensation attributable to tribal land includes sick time and vacation time earned while working on tribal land. Compensation for personal services is includable for purposes of this subsection unless it is excluded from “gross income” under the Internal Revenue Code. For example, amounts withheld by an employer for federal and state income taxes, FICA contributions, medical insurance plans, or other similar payroll deductions are considered compensation for personal services.

Unemployment compensation received by a tribal member that is derived from employment on tribal land is attributable to tribal land.

Generally, incentive stock options, nonstatutory stock options, and employee stock purchase plans are compensation for personal services in the amount that represents the fair market value of the stock on the date exercised (i.e., when the employee has purchased the stock) that exceeds the option price of the stock at the time the option is granted. Income from stock option plans reported as capital gains on the federal income tax return is, for purposes of this paragraph, compensation from personal services. If the period between the grant of a stock option and the exercise of the option straddles employment on and off tribal land, the amount attributable to employment on tribal land must be determined in accordance with section .05(B) below and the amount so determined is compensation derived from or connected with sources on tribal land for the same taxable year that the income is included in federal adjusted gross income.

Income from a trade or business. All income derived from or connected with the carrying on of a trade or business on tribal land is income sourced to tribal land. Generally, a tribal member has a trade or business if:

The tribal member, directly or through agents or employees or through a pass-through entity in which the tribal member is a shareholder, member, or partner, maintains or operates or shares in maintaining or operating a desk, room, office, shop, store, warehouse, factory, or any other place on tribal land where business affairs are systematically and regularly conducted; or

The tribal member, directly or through agents or employees or through a pass-through entity in which the tribal member is a shareholder, member, or partner, is present for business on tribal land on other than a systematic or regular basis and earns or derives gross income during the taxable year from contractual or sales-related activities.

Income from ownership of real or tangible personal property. All income derived from the ownership of real or tangible personal property located on tribal land is income sourced to tribal land; however, unless the property was employed in a business, trade, profession, or occupation carried on within tribal land, interest income earned from the sale of such property is not subject to sourcing to tribal land. Income sourced to tribal land includes rents derived from and gains from a federally taxable sale or exchange of:

Real property located on tribal land;

Tangible personal property having a situs on tribal land; or

Any interest in a time-share or similar arrangement on tribal land.

.05 Special sourcing rules

Allocation or apportionment required. When a tribal member earns or derives income, including income from pass-through entities or sole proprietorships, from sources both on tribal land and elsewhere, an allocation or apportionment of the income must be made to determine the amount of income sourced to tribal land. The following provisions set forth the rules for the determination of a tribal member’s income sourced to tribal land. For the purpose of this section, the term “income” includes, in the alternative, the term “loss.” A tribal member may, with the return for the taxable year, request an alternative method of allocation or apportionment of income with a full explanation of the method. The proposed method is subject to review and modification by the Assessor. Allocation or apportionment of income from the rendering of purely personal services by employees, salespersons, athletes, and entertainers is addressed below.

Employees generally. When a tribal member employee establishes the exact amount of compensation received for services performed on tribal land, that amount is the amount of income sourced to tribal land. When a tribal member is unable to establish such exact determination of amounts earned on, or derived from, tribal land, the compensation must be apportioned to tribal land. The apportionment is calculated by multiplying the gross compensation wherever earned by a fraction, the numerator of which is the number of days spent working on tribal land and the denominator of which is the total working days. The result is the amount of the tribal member’s compensation sourced to tribal land. Holidays, sick days, vacations, and paid or unpaid leave are included in both the numerator and the denominator. When a working day is spent working partly on tribal land and partly elsewhere, it is treated as one-half of a day spent working on tribal land.

For purposes of this subsection, salaries and wages earned while teleworking or working remotely on tribal land, whether for the convenience of the tribal member employee or the employer, are items of income derived from sources on tribal land. Conversely, salaries and wages earned while teleworking or working remotely off tribal land, whether for the convenience of the tribal member employee or the employer, are not items of income derived from sources on tribal land.

Salespersons. Tribal land income of a tribal member who is a salesperson or whose compensation is based in whole or in part upon commissions is computed as follows: The gross income earned by the tribal member from sales everywhere is multiplied by a fraction, the numerator of which is the amount of sales made by the tribal member on tribal land and the denominator of which is the amount of sales made by the tribal member everywhere. For the purposes of this calculation, the "amount of sales" is determined under the same method by which the amount of sales is determined for purposes of calculating the tribal member’s commissions. Sales are sourced to the location where the tribal member performs the activities in obtaining the order, not to the location of the formal acceptance of the contract.

Professional Athletes.

Exhibition and regular season games. A tribal member who is a professional athlete must include in the income sourced to tribal land the entire amount of compensation received for games played on tribal land. In the case of a tribal member athlete not paid specifically for the game played on tribal land, the following apportionment formula must be used: The income earned on tribal land is the total compensation earned during the taxable year, including incentive payments, bonuses, and extras, but excluding signing bonuses and league playoff money. Total compensation is multiplied by a fraction, the numerator of which is the number of exhibition and regular season games the tribal member played (or was available to play for the tribal member’s team, as, for example, with substitutes) on tribal land during the taxable year, and the denominator of which is the total number of exhibition and regular season games that the tribal member was obligated to play under contract or otherwise during the taxable year, including games in which the tribal member was excused from playing because of injury or illness.

Playoff games. For playoff games played on tribal land, the amount of league playoff money earned by the tribal member for playing or being available to play in such games is determined by the following formula: League playoff money earned on tribal land is the total league playoff compensation earned during the taxable year multiplied by a fraction, the numerator of which is the number of playoff games the tribal member played or was available to play on tribal land during the taxable year, and the denominator of which is the total number of playoff games which the tribal member’s team played during the taxable year, including playoff games in which the tribal member was excused from playing because of injury or illness.

Signing bonuses. Any amount received by a tribal member as a signing bonus is excluded from the income subject to apportionment.

Entertainers. Tribal land income of a tribal member who is an entertainer is the entire amount received by the tribal member for performances, engagements, or events that occurred on tribal land. In the case of a tribal member who is not paid specifically for a performance on tribal land, the following apportionment formula must be used: The income earned on tribal land is the tribal member’s total annual compensation multiplied by a fraction, the numerator of which is the number of performances the tribal member performed (or was available to perform, as, for example, with understudies) on tribal land, and the denominator of which is the total number of performances which the tribal member was obligated to perform under contract or otherwise during the taxable year.

.06 Estate of tribal member decedent

An estate of a decedent who at the time of death was a tribal member residing on tribal land must apply the provisions of this Rule to determine the income modifications under 36 M.R.S. §§ 5122(1)(PP) and 5122(2)(ZZ) to calculate the income of the estate subject to Maine income tax under 36 M.R.S., Part 8.

.07 Maine income tax withholding requirements on payments to tribal members

See MRS Rule 803 (18-125 C.M.R., ch. 803) for the Maine withholding requirements on wage and non-wage payments to a tribal member.

.08 Application date

Except where otherwise stated, this Rule applies to taxable years beginning on or after January 1, 2023.

History

• STATUTORY AUTHORITY: P.L. 2021, c. 681, Part H; 36 M.R.S. § 112(1)
• EFFECTIVE DATE: September 30, 2023 – filing 2023-179
• ACCESSIBILITY CHECK: July 3, 2025

Chapter 901 Maine Residents Property Tax Program

Code Me. R. 18-125 Ch. 901 Maine Residents Property Tax Program {#sec-18-125-ch.-901 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-125 Ch. 901}

SUMMARY: The purpose of this rule is to provide comprehensive definitions and explanations of statutory terms and procedures for claiming benefits under the Maine Residents Property Tax Program for applications filed before August 1, 2013.

Outline of Contents

.01 Claimant

.02 Homestead

.03 Household and Household Income

.04 Property Taxes Accrued

.05 Rent

.06 Application Date

.01 Claimant

A. Generally. A claimant must have been domiciled in Maine and owned or otherwise maintained a homestead in Maine during the entire calendar year for which relief is requested under the Maine Residents Property Tax Program. In addition, a claimant must have occupied the homestead for at least six (6) months during that year, and, except for a homestead held in a revocable trust or under a legally binding agreement that allows the owner to transfer title to the property but continue to occupy the dwelling as a home, must have been personally responsible for the payment to the municipality or other taxing authority of property tax on the homestead or for the payment to the lessor of rent on the homestead. The legal guardian or attorney in fact of a claimant may file a claim on behalf of the claimant.

B. Death of Claimant. The right to file a claim does not survive the claimant’s death. If a valid claim was filed prior to death, reimbursements made after the death of the claimant will be made to the claimant’s spouse, or if no spouse, will be divided equally among surviving members of the household. If the claimant was the only member of the household, reimbursement may be made to the claimant’s personal representative. If a personal representative is not appointed within two (2) years of the filing of the claim, the amount of the claim escheats to the State.

C. Unmarried individuals. If a homestead is occupied by two or more unmarried individuals, none of whom is a dependent of another, and all of whom meet the qualifications of a claimant, each must file a separate application as if living alone. Each must list his or her income and claim his or her share of the total tax assessed or rent paid.

D. Marital status. If a married couple was living together in the same homestead on the last day of the claim year, only one application can be filed. The claimant may be either the husband or the wife, but there may be only one claimant per household. If the spouses are living apart and thereby do not occupy the same homestead on the last day of the claim year and filed Maine income tax returns as married filing separate, separate applications may be filed containing the claimant’s and dependents’ household income (excluding the spouse's income) and claiming the property tax or rent on the separate homestead. However, if the spouses file a joint Maine income tax return, only one application can be filed. On this application, they must include their combined household income and can claim the tax or rent on only one of the homesteads as if they were living together.

E. One spouse a resident, the other a nonresident. If the homestead is jointly owned by the spouses, the spouse who is the Maine resident is the claimant. The claimant must include the income of both spouses on the application and claim the total property tax assessed or rent paid on the Maine homestead.

F. Spouse confined to a nursing home. If a husband and wife own a homestead jointly and one spouse is a patient in a nursing home, the application must include the income of both spouses and claim the total property tax assessed or rent paid on the homestead only.

G. Dependent. A dependent is a person who is claimed (or could be claimed) as a dependent on another person’s income tax return. A dependent does not qualify as a claimant.

H. Ownership of homestead as heirs or devisees. To qualify as a claimant, an heir or devisee must document his or her ownership of the homestead for the entire year for which a claim is filed, occupy the homestead for at least six months of the year for which a claim is filed, and otherwise qualify to be the claimant. A copy of a will listing all the devisees to the property is one example of acceptable documentation of ownership. If more than one heir or devisee has an ownership interest in the property (even if merely beneficial), a written statement is required from all other heirs or devisees stating that they did not occupy the homestead or, if occupancy was shared, must include information related to the actual percentage of occupancy claimed for purposes of their own application for refund.

.02 Homestead

A. Generally. “Homestead” means the dwelling owned or rented by the claimant or held in a revocable living trust for the benefit of the claimant and occupied by the claimant and the claimant’s dependents as a home. The homestead may consist of a part of a multi-dwelling or multipurpose building and up to 10 acres of contiguous land. Separate parcels of land are considered contiguous if separated solely by a road, or public or private right of way. “Dwelling” means an individual house, apartment, duplex unit, co‑op unit, condominium unit, mobile home, or mobile home pad. “Owned” includes possession by a purchaser under a land contract and one or more joint tenants or tenants-in-common and possession under a legally binding agreement that allows the owner of the dwelling to transfer title to the property but continue to occupy the dwelling as a home until some future event stated in the agreement.

B. Ownership of homestead. Ownership of a homestead may be by fee, by life tenancy, by bond for a deed, as mortgagee, or any other similar possessory interest provided that the owner is personally responsible to the municipality or taxing authority for the property tax for which a refund is claimed.

C. Room and Board. A homestead does not include room and board when amounts paid for food, personal care, laundry, or similar items or services are not distinguishable from amounts paid for the right to occupy a homestead. A homestead also does not include a nursing home or a room in another person’s private home.

D. Seasonal Dwelling Occupied as a Home. Generally, a claimant who has more than one home or apartment at the same time during the year must base a claim on the claimant’s primary homestead. For example, an applicant owns a seasonal house which he or she occupies as a home for part of the year. During the remainder of the year, the claimant rents and occupies an apartment. Both the house and the apartment are in Maine. The claim must be based on a prorated share of the tax on the seasonal home and the rent paid for the apartment during occupancy. The prorated tax amount is based on the time the claimant occupies the seasonal home divided by the period of ownership.

E. Congregate Housing. Congregate housing generally allows individuals to live independently. However, the rent amount usually includes heat, utilities, housekeeping services, transportation, and use of common areas. In addition, meals are available in a central dining room for an additional charge. An individual living in congregate housing may qualify as a claimant (if otherwise eligible) based on the amount of rent paid for the right to occupy the apartment. The remainder of the monthly rent amount that covers heat, utilities, services, meals, or similar items must be excluded from the rent claimed on the application.

F. Occupying the homestead. A claimant must have occupied his or her homestead for at least six months during the claim year in order to be eligible for a refund. A claimant is considered to have occupied the homestead during a temporary absence due to exigent circumstances such as illness, hospitalization, and military deployment, provided that the claimant does not rent the homestead to another person during the period of temporary absence.

G. Maintaining the homestead. A claimant must have owned or rented (as a lessee) one or more homesteads in Maine for all 12 months during the year for which relief is requested. A homestead is not maintained during any period in which the owner or lessee leases or sub-leases the dwelling to another person.

.03 Household and Household Income

A. Household. A “household” is comprised of a claimant, spouse and any individual who the claimant is entitled to claim as a dependent under Maine income tax laws for the year for which relief is requested, whether or not the individual is actually claimed as a dependent on a tax return. A spouse is not considered a member of the household only if: (1) the spouse is living in a homestead other than the homestead of the claimant; and (2) separate applications are being filed in accordance with section .01(D) above.

B. Household income; amounts included. Annual household income includes the following income received by all members of the household, including the claimant and the claimant’s spouse and any dependents:

1. The sum of Maine adjusted gross income, defined as federal adjusted gross income modified by 36 M.R.S. §5122, reported or required to be reported on all Maine income tax returns filed by each member of the household; plus

2. Income (other than amounts excluded below) that is received by each member of the household that is not included in Maine adjusted gross income, including, but not limited to:

(a) Salaries and wages;

(b) Dividends and interest;

(c) Loss add-back amounts;

(d) Social Security benefits, railroad retirement benefits, pensions, and distributions from ROTH IRAs;

(e) Contributions to pension, annuity or retirement plans made on behalf of that member of the household;

(f) Cash public assistance;

(g) State supplemental income;

(h) Alimony payments;

(i) Capital gains;

(j) Child support payments;

(k) Gambling and lottery winnings;

(l) Cash inheritances (except as provided by subsection C below);

(m) Jury duty payments;

(n) Life insurance proceeds (except as provided by subsection C below);

(o) Nontaxable lawsuit awards (except as provided by subsection C below);

(p) Nontaxable strike benefits;

(q) Nontaxable employee contributions to a Flexible Spending Arrangement;

(r) Employer-paid benefits for a Dependent Care Assistance Program under Section 129 of the Internal Revenue Code;

(s) Prizes and awards;

(t) Rental income;

(u) Unemployment compensation;

(v) Worker's compensation and loss of time insurance; and

(w) Any other income received by each household member who did not file a Maine income tax return to the extent the income should have been included in Maine adjusted gross income if the household member had filed a Maine income tax return.

C. Household income; amounts excluded. Annual household income does not include:

1. Rollovers of IRA, pension or annuities into another IRA, pension or annuity, even if they were included in Maine adjusted gross income;

2. Refunds received from the Maine Residents Property Tax and Rent Refund Program;

3. The first $5,000 in proceeds of a life insurance policy, whether paid in a lump sum or in the form of an annuity. An applicant who receives a lump-sum benefit should subtract $5,000 from the amount received and report the remainder as income. For example, an applicant who receives $25,000 in life insurance benefits would include $20,000 in income on the application ($25,000 minus $5,000). If the benefits are being paid in an annuity, the benefits received must be included in income once the first $5,000 is exceeded. For example, an applicant who receives $3,000 a year for 20 years would exclude the $3,000 received in the first year and $2,000 received in the second year. The remaining $1,000 received in the second year and all benefits received in the succeeding years must be included in income;

4. Gifts from nongovernmental sources or surplus foods or other relief in-kind that is supplied by a governmental agency;

5. Inheritance from a deceased spouse; or

6. Reimbursement of medical and legal expenses resulting from a lawsuit award.

.04 Property Taxes Accrued

A. Definition. “Property taxes accrued” means property taxes exclusive of special assessment, delinquent interest, and charges for service levied on a claimant’s homestead in this State as of April 1 of the claim year. “Property taxes accrued” means only the portion of property taxes levied that was not abated for infirmity or poverty during the year for which the claimant requests relief. If a claimant owns and occupies two (2) or more different homesteads in Maine in the same calendar year, property taxes accrued means the total of the property taxes owed for the time that each property was occupied by the claimant and claimant’s household as a homestead. To calculate the amount attributable to each property, the April 1 assessment on each homestead is multiplied by the percentage of 12 months that each property was owned and occupied by the claimant as the claimant's homestead during the year for which relief is requested. When a municipality changes the dates of its fiscal year (for example, from January 1-December 31 to July 1-June 30) and assesses an eighteen-month tax amount, the property taxes accrued will be the eighteen-month amount based on the April 1 assessment for that claim year, even if the municipality issues two separate tax bills spaced several months apart.

B. Exemptions. If the claimant has an exemption for part of the valuation of the property, such as a veteran’s exemption or a homestead exemption for part of the valuation of the property and the homestead is part of a larger unit, the amount of the exemption must be subtracted from the valuation of the house and house lot.

C. Multiple owners. Generally, a claimant who occupies a homestead that is owned by several persons, one of whom is the claimant, must base the claim on his or her pro rata share of the property tax assessed on the homestead. For example, if a homestead is owned by three persons and one of those persons occupies it, that person is the claimant and can claim one-third of the total tax. The others cannot file a claim based on that homestead because they live elsewhere. If, however, the claimant is solely responsible for the payment of the tax under the terms of a written agreement with all the other owners that states the claimant is allowed to occupy the homestead, he or she can base the claim on the total tax.

D. Part of a larger unit. If a homestead is an integral part of a larger parcel of property, such as a farm or multipurpose or multi-dwelling building, the property taxes accrued for the homestead equal a percentage of the total property taxes that represent the percentage of the homestead’s value to the total value of the larger unit.

.05 Rent Constituting Property Taxes Accrued

The term “rent,” for purposes of 36 M.R.S. §6201(11) and (11-A), means the gross rent actually paid in cash or its equivalent for right of occupancy in any year for which relief is requested by the claimant or a member of the claimant’s household. Rent does not include amounts paid by municipal general assistance vouchers. Rent also does not include amounts paid for utilities, services, furniture, furnishings, or personal property appliances or for anything other than the right to occupy a homestead. First-time claimants must provide proof of payment for rents exceeding $9,000 annually.

.06 Application. This rule applies to Maine Residents Property Tax Program applications filed before August 1, 2013.

History

• STATUTORY AUTHORITY: 36 M.R.S. §112
• EFFECTIVE DATE: January 1, 1997
• NON-SUBSTANTIVE CORRECTIONS: February 19, 1998 - converted to Microsoft Word
• AMENDED: September 25, 2004 - filing 2004-414
• MINOR CORRECTION: March 22, 2005 – Section .04.D
• REPEALED AND REPLACED: July 11, 2006 – filing 2006-303
• AMENDED: February 11, 2008 – filing 2008-70
• AMENDED: August 19, 2012 – filing 2012-229
• AMENDED: May 5, 2015 – filing 2015-081
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 3, 2025

18-127 Maine Library of Geographic Information Board

Chapter 158 Standards for Digital Parcel Maps

Code Me. R. 18-127 Ch. 158 Standards for Digital Parcel Maps {#sec-18-127-ch.-158 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-127 Ch. 158}

STATE OF MAINE

STANDARDS FOR DIGITAL PARCEL FILES

Presented to the Maine Geolibrary Board

by the

Digital Parcels Standards Committee

January 19, 2005

Version 1.3 November 9, 2004

Effective date under APA rule-making: February 13, 2005, filing 2005-51

1. INTRODUCTION

2. DEFINITIONS

3. STANDARDS FOR SPATIAL DATA

1. Digital Parcel Standards Level I
2. Digital Parcel Standards Level II
3. Digital Parcel Standards Level III
4. Digital Parcels at Surveying/Engineering Standards
5. Spatial Data Formats

4. STANDARDS FOR ATTRIBUTE DATA

1. Required Feature Attribute Table Fields

4.2 Required Relational Database Fields

4.3 Suggested Relational Database Fields

APPENDIX A: Data Standards For Maine Geographic Information Systems, June 27, 2002

APPENDIX B: Example of the PARENT field link

APPENDIX C: Feature Level Metadata

1. INTRODUCTION

For the GIS Needs and Requirements Analysis mandated by the legislature, a survey was issued to a wide group of Maine GIS stakeholders in October of 2001. As part of that survey and interviews conducted by a contractor, GIS users were asked to identify data layers that would most benefit their operations, but which were not available to them. Of the layers requested, property parcels ( digital cadastral maps) had the highest priority. Consequently the final report^[1] recommended the development of parcel data as a statewide data layer and the development of detailed standards for digital parcel data.

Property Maps are one of the most important local government information assets. It is a fundamental base for many municipal activities. Although GIS parcel data cannot replace detailed ground surveys, the data does assist municipal officials with functions such as accurate property tax assessment, planning and zoning. Towns can link their maps to their assessor’s databases and display local information. Officials can show tax-payers how proposed development or changes in municipal services and regulations will affect them and their neighbors. In many towns, parcel data also helps to provide public notices, plan bus routes, and carry out other municipal services.^[2]

In January of 2003, under the auspices of the Maine Geolibrary Board, a Digital Parcel Standards Committee was formed to develop published standards for digital tax parcel data. The committee was composed of representatives from the following public and private sector organizations: Bureau Information Services, Central Maine Power Company, City of Bath, City of Portland, Department of Conservation, Department of Transportation, Greater Portland Council of Governments, Hancock County Planning Commission, Island Institute, James W. Sewall Company, Maine Revenue Service, Maine State Archives, Northern Maine Development Commission and the State Planning Office.

The Committee, thru meetings and electronic review, worked out the basic standards for the acceptance of parcel (cadastral) spatial and tabular data into the Geolibrary. These standards were formalized into a publication which was then presented along with certain recommendations to the Geolibrary Board on May 21^st, 2003.

2. DEFINITIONS

ASCII – American Standard Code for Information Interchange. The de facto standard for code numbers used by computers to represent Latin letters, numbers and punctuation.

Assessor’s Database – The database of property assessment information maintained by the

assessor; it is also referred to as the tax list, property list, CAMA system, CAMA database,

appraisal database etc.

Attribute – A single element of non-graphic (e.g., name of owner, property area, property value)

information stored in a database field and usually, in the context of this standard, associated with

a single geographic feature (e.g. a property parcel on a map).

Base Map – A map portraying basic reference features on the earth's surface (both

natural and cultural) onto which other, specialized, features (e.g., property boundaries, water

mains) are placed. A common example is a U.S. Geological Survey topographic map.

CAD – Computer Aided Design. Also sometimes called computer aided drafting, CAD systems assist in 2 and 3 dimensional engineering, architectural design and can be used for cartographic purposes.

Cadastral Map - A map showing the boundaries of the subdivisions of land for

purposes of describing and recording ownership and taxation.

CAMA - Computer Assisted Mass Appraisal, an automated system for maintaining property

data, valuing property, notifying owners, and ensuring tax equity through uniform

valuations.

COGO – Coordinate geometry. A system for encoding and manipulating bearings, angles and distances from survey data into a digital system

Comma Delimited File – A flat ASCII text file in which the information such as the unique ID and field values are separated by a comma.

Digital Parcel File – A specific type of vector Spatial Data and is a representation of the boundary information originally depicted and maintained on a city or town assessor’s maps. Besides fee ownership boundaries that may appear in this file or files, include public and private rights of way and various different kinds of easements. These files are typically created in and maintained using GIS software.

Digitizing - The process of converting features on a physical map into digital format. The x,y coordinates of the map features are recorded and stored as spatial data. Digitizing can be done manually on a digitizing tablet, on which the map is registered to a coordinate system and the features traced or by scanning the map and converting the image to vector data either with special software or by manual overtracing on screen.

Feature Attribute Table – A digital table, also known as an FAT, used to store the attributes of a specific feature class. The Feature Attribute Table is linked directly to a Spatial Data File . Examples are an ArcView shapefile Dbase table (.DBF), an Arc/Info Polygon Attribute Table (.PAT)

Parcel – The polygon representing the boundaries of legal ownership or interest on a city or town assessor’s maps.

Polygon – A closed figure of three sides or more bounded by line strings intersecting at nodes.

Raster – A digital image file in which spatial data expressed as a matrix of discrete units called cells or pixels. Examples are an Arc/Info grid (cells) or a geotiff (pixels).

Registration - The process of finding reference points on a map or image document and assigning them coordinates from their known positions in the real-world. Once coordinates are specified for enough points on the map/image document, the entire digital document may be mathematically transformed to real-world coordinates for GIS display and analysis.

Related Database - An attribute table that can be temporarily associated with a Feature Attribute Table by making a connection between a record in the Feature Attribute Table and a corresponding record in the related attribute table.

Scan - The process of making a digital image of a document (e.g., a map, text

document, or photo). A scanned document can be displayed on a computer screen, but until

locations on the document are assigned ("registered") to map coordinates, it cannot be overlaid

with map features in a GIS database.

Spatial Data – A digital file showing the location, shape of and relationships between geographic features. Spatial data can be in either vector or raster format. An example of a vector Spatial Data File would be a shape file. An example of a raster Spatial Data File would be a GeoTiff file.

Vector – A digital file in which geographic locations are represented by x and y coordinates. Points are located with a single x,y pair, lines defined by a series of x,y pairs and areas are defined by the line segments that enclose that area, or polygons.

3. STANDARDS FOR SPATIAL DATA

1. Digital Parcel Standards Level I

All digital parcel files submitted to the Geolibrary must conform to at least Standards Level I.

The parcel maps must exist as digital vector data.

The digital data must be a single data layer or file containing a seamless depiction of all of a town’s property boundaries and other legal interests shown on the physical maps.

The data must conform to the spatial standards as described in sections 3.6 and 3.7 of the Data Standards For Maine Geographic Information Systems , June 27, 2002. (appendix A)

The data can be in digitizer units or real world units. If in real world units, the projection system, datum, units and zone if applicable must be specified.

Annotation is not required.

3.2 Digital Parcel Standards Level II

The digital data submitted must conform to the minimum specifications of Level I.

The digital data must be georeferenced to as many well defined points as possible on an orthophoto or vector base data that meets National Map Accuracy Standards for 1” = 400 ‘ or better. Well-defined points are those that are easily visible on the orthophoto or vector base and that represent features easily identifiable on the digital parcel data. Examples would be road intersections, railroad to railroad or railroad to road intersections and the intersections of fence lines or stone walls.

The digital data must meet all requirements of the Data Standards For Maine Geographic Information Systems , June 27, 2002

3.3 Digital Parcel Standards Level III

The digital data submitted must conform to the minimum specifications of Level II.

The digital parcel data must be digitally recompiled to fit all coincident features on an orthophoto or on vector base data.

1. The orthophoto or the vector base data must meet National Map Accuracy Standards for 1 inch = 400 feet or better.
2. Property boundaries are often coincident with clearly defined and visible features. These include features such as stone walls, hedges and tree lines. When appropriate as determined by the map compiler, parcel boundaries should be registered as accurately as possible to features visible on the orthophoto or digital base map.
3. Roads should nominally lie completely within the rights of way shown on the parcel data. An exception to this requirement would be if in the judgment of the map compiler the street were not in fact built within the right of way or there are undeveloped rights of way or newly constructed roads for which no representation exists on the orthophoto or in a road centerline file
4. Where discrepancies between adjacent town lines are more than the accuracy stated above, an attempt must be made to reconcile the difference. If the differences cannot be reconciled, then overlaps, gaps and gores must be separate polygons indicated as being “In Dispute”.

The digital data must meet all requirements of the Data Standards For Maine Geographic Information Systems , June 27, 2002

1. Digital Parcels at Surveying/Engineering Accuracy

In Maine, the larger and more populated municipalities are likely to have some or all of their digital parcel data at a surveying and engineering level of accuracy. These are presented as a very high level of accuracy for parcel mapping, but not a recommended standard for the majority of Maine communities.

The digital data must conform to the minimum specifications of Level III.

The digital parcel data must be located in relationship to cadastral markers. Suitable cadastral markers may include those sorts of features referred to in land records, such as deeds, survey plans, survey plats and other land surveying records which purport to monument or mark property lines or points geometrically related to property lines. The intent is to more accurately associate the parcel data with points that are directly related to the underlying land record information.

The data must be referenced to geodetic control points of the National Geodetic Surveyor (or successor), the Maine Department of Transportation and/or points established by other parties using geodetic grade surveying equipment and methods.

The data need not include every cadastral marker in a given location, but should include sufficient cadastral reference points to accurately reproduce the intent of the original land records used in the compilation of the mapping.

To correct errors in the parcel data and to close lots geometrically, the available information–the bearing, course, and distance of parcel lines– will be entered into a COGO software system. This information is then referenced to cadastral markers.

1. Spatial Data Formats

All spatial data files submitted to the Geolibrary must be in one of the following standard formats.

Autodesk Data Exchange Format (.DXF) A vector transfer format that has become the de facto standard for transfer of data between CAD systems. Arc/Info, ArcView and most GIS softwares will read and/or convert a DXF file.

Arc/Info Export file (.E00) A vector transfer format, either ASCII or compressed into binary used to transfer files between different versions of ARC/INFO. This is preferred over submitting Arc/Info coverages.

ArcView Shapefile. A vector format consisting of at least 3 types of files (.SHP .SHX .DBF) openly published and available for use by all GIS vendors.

Coma delimited ASCII file. An interchange format for spatial data in which, for each feature, the unique ID number and corresponding coordinates are carried on a single line separated by commas. The feature attribute table is supplied as a separate file.

MapInfo Interchange Format (.MIF). A vector transfer format, MIF files transfer graphics, MID files transfer attributes. Arc/Info will convert a .MIF file.

Spatial Data Transfer Standard SDTS. A standard format used by federal agencies to support all types of vector and raster data.

4. STANDARDS FOR ATTRIBUTE DATA

Attribute field names must be kept under 10 characters in length to avoid truncating the field name during conversion operations. For example, a shape file with the field name CARTOGRAPHIC will be truncated to CARTOGRAPH if the shape file id converted to ArcInfo. File names should be kept under 8 characters in length to conform to the “eight and three” standard.

4.1 Required Feature Attribute Table Fields

These fields are required to be in a feature attribute table directly associated with the corresponding digital parcel file. For example, if the digital parcel file is a shapefile, then these items must be in the Dbase file (.DBF)

STATE_ID

A unique, statewide identifier for each parcel. The township geocode constitutes the first five numbers of the identifier followed by a unique, sequential number generated by software for each parcel in the township. (numeric field)

MAP_BK_LOT

A municipal designation field which carries the map, block and lot assigned to each parcel by the municipal assessor. This field is the link to the municipal databases. It may not be possible to make this link between the assessor’s database and the digital parcel map for every parcel or property record – a one to one relationship. This standard requires only an initial effort to make the linkage as complete as possible. (character field)

PARENT

The map_bk_lot listing in the assessor’s database where information about a parcel may be found. Some Maine towns organize their tax assessing database so that only one bill is sent to each property owner. If the property owner holds several lots only one listing in the assessor’s database will be made to serve for all of them. In these cases one map-block-lot designation will be assigned to the combined listing. For the remaining lots, the parent field contains a pointer to the appropriate map-block-plot listing. (See Appendix B)

PROP_LOC

The physical address of the property, if applicable. (character field)

4.2 Required Related Database Fields^[3]

These fields are required to be in a related database table, which can be linked to the corresponding feature attribute table. The table should be of a standard type such as DbaseIV or comma-delimited ASCII.

MAP_BK_LOT

A municipal designation field which carries the map, block and lot assigned to each parcel by the municipal assessor. This field is the link to the feature attribute table.

Due to privacy and security concerns, the municipal officers of each municipality shall, pursuant to a public hearing, vote as to which if any of the following 6 fields are to be populated for use in the state Geolibrary.

1)OWNER

Name of first owner of record (character field)

2)OWN_ADDR

Owner’s address (character field)

3)OWN_CITY

Owner’s city or town. (character field)

4)OWN_STATE

Owner’s state if not Maine (character field)

5)OWN_ZIP

Owner’s zip code, plus four if available. (character field)

6)OWN_CNTRY

Owner’s country if not U.S.A. (character field)

LAND_VAL

The current total assessed value for land (numeric field)

BLDG_VAL

The current total assessed value for building(s) (numeric field)

FY

Date of assessed value (date field)

LOT_SIZE

The assessed area (numeric field, allowing for up to two decimal places)

SIZE_UNITS

The area units (character field; valid values are “S” for square feet and “A”

for acres)

LS_DATE

Last sale date (date field)

LS_PRICE

Last sale price (numeric field)

LAND_USE

State land use code (numeric field)

LS_BOOK

Last sale Registry of Deeds book (character field)

LS_PAGE

Last sale Registry of Deeds page (character field)

LIV_UNITS

Number of living/dwelling units, apartments and condominiums, if available (numeric field)

BLDG_SIZE

Building area (square feet) for commercial/industrial properties as defined by the state use codes.( numeric field)

POLY_TYPE

A field to explain polygons in the file that are not legal interests (character

field; valid values are RAIL ROW = railroad right-of-way, TRAFFIC ISLE = traffic islands

in street right-of-way, WATER = ponds/rivers, ISLE = island in pond or river, and OTHER

4.3 Suggested Related Database Fields

YEAR_CREATED

The date a lot was created by split or subdivision (numeric field)

SOURCE

Boundary feature source (character field; valid values are DEED,

SUBDIVISION, ROAD PLAN, SURVEY, OTHER).

PLAN_ID

Identifying information for plan (example: subdivision or road plan) used to update

the digital file (character field).

UPD_DATE

The date of update to the property boundary. Should include the year and

month of the update (character field).

RES_AREA

Total residential living area in square feet. This is a useful attribute when

evaluating development proposals relative to surrounding residences, but a difficult one to

create because it requires adding areas from multiple fields in the assessor’s database

(numeric field).

CI_AREA

Total building area for commercial/industrial properties in square feet. This is a

very useful attribute for evaluating proposed and existing development, but it is difficult to

create because it requires adding areas from multiple fields in the assessor’s database

(numeric field).

Feature Level Metadata (See Appendix C for an explanation of feature level metadata)

FMSRC source

FMSRCORG source originator

FMPROCSS process

FMUPDORG organization of edit

FMUPDAT date of edit

Required Fields – Feature Attribute Table

Field Name Type Size Decimal Places Notes

STATE_ID N 10

MAP_BK_LOT C 24

PARENT C 24

PROP_LOC C 50

Required Fields – Related Database

Field Name Type Size Decimal Places Notes

MAP_BK_LOT C 24 link to feature attribute table

OWNER C 50

OWN_ADDR C 50

OWN_CITY C 24

OWN_STATE C 2 standard USPS abbreviations

OWN_ZIP C 10

OWN_CNTRY C 24

LAND_VAL N 9

BLDG_VAL N 9

FY D 8 YYYYMMDD

LOT_SIZE N 6 2

LOT_UNITS C 1 must enter S for sq ft or A for acres

LS_DATE D 8 YYYYMMDD

LS_PRICE N 9

LAND_USE N 6

LS_BOOK C 6

LS_PAGE C 4

LIV_UNITS N 4

BLDG_SIZE N 6 in square feet

POLY_TYPE C 18 RAIL ROW = railroad right-of-way, TRAFFIC ISLE = traffic islands in street right-of-way, WATER = ponds/rivers, ISLE = island in pond or river, and OTHER

Recommended Fields – Related Database

Field Name Type Size Decimal Places Notes

YEAR_CREATED N 4 YYYY

SOURCE C 10

PLAN_ID C 24

UPD_DATE D 8 YYYYMMDD

RES_AREA N 6 in square feet

CI_AREA N 6 in square feet

Recommended Feature Level Metadata Fields- Related Database

FMSRC C 12

FMSRCORG C 12

FMPROCSS C 12

FMUPDORG C 12

FMUPDAT D 8

Appendix A

DATA STANDARDS FOR

MAINE GEOGRAPHIC INFORMATION SYSTEMS

Presented to the Information Services Policy Board

by

GIS Executive Committee Chair, Richard Dressler

June 27, 2002

Approved by the ISPB

June 27, 2002

1. INTRODUCTION

2. MAP COMPILATION/RECOMPILATION

2.1 Map Scale

2.2 Map Media

2.3 Coordinate Reference

2.4 Projection

2.5 Line Work

2.6 Coincident Features

2.7 Data Not Recompiled on Standard Basemaps

3. DATA AUTOMATION SPECIFICATIONS

3.1 Automation Technique

3.2 Compatibility

3.3 Digital Tolerances

3.4 Cartographic Accuracy

3.5 Data Capture

3.6 Spatial Topology

3.7 Edge Matching

3.8 Coding Accuracy

3.9 Accuracy Assessment

3.10 Proof Plots

3.11 Attribute Coding Schemes

3.12 Database Development

4. DOCUMENTATION

4.1 Basics of FGDC

4.2 Technical Support for FGDC

4.3 More About FGDC

5. REFERENCES

1. INTRODUCTION

This document provides guidelines covering the digital conversion of geospatial data into geographic information system (GIS) format. The overall goal is to ensure that a high quality, well-documented GIS database is built for the State of Maine. The document objectives are three-fold:

1. Set technical specifications for geospatial data automation and development;

2. Provide basic guidance in map compilation/recompilation; and

3. Provide standard procedures for documenting the history of each geospatial data layer and source map to aid users of the Maine GIS database in determining the viability of those data for specific applications.

All proposals, agreements, contracts and grants for GIS data automation should require that these standards be met or exceeded.

If agencies are planning projects that will generate large amounts of digital data, it is recommended that a pilot project be performed on a small area covering all aspects of the process from map compilation to the actual application. A pilot project insures that all systems and procedures used do in fact generate adequate data. The project should cover at least two study area modules (e.g. quad sheets) so that edge matching capabilities can be assessed. GIS personnel should participate in all aspects of the pilot project.

2. MAP COMPILATION/RECOMPILATION

The ultimate quality of a GIS database is as dependent on the quality of the source map as it is on the care used in the digital automation process. Whether new map data are being compiled onto a basemap or old maps are being recompiled onto a new base, certain basics need to be addressed. Precise automation procedures, although very important, will not improve an inferior source map. Georeferenced, rectified photographs and images, as well as vector basemaps may serve as source maps. Important considerations are:

2.1 Map Scale

o Varies with intended use and companion data layers

o Data submitted for inclusion in the Maine GIS database will conform to National Map Accuracy Standards (NMAS) for scale.

The choice of a basemap is the first step in the map compilation/recompilation process. Mapped data at any scale may be input to the system, but digital maps retain the accuracy of their original source map regardless of the scale at which they are plotted. Thus, a 1:100,000 map retains its original accuracy even when plotted at a 1:24,000 scale. The map scale also determines the best use of the final data. The following table illustrates how applications vary depending on the scale of the original map.

TABLE 1: Relationship among scale, use, and number of maps

MAP MAP # MAP SHEETS TO

SCALE UTILITY COVER MAINE

Small scale

1:500,000 Statewide studies, planning 1

1:250,000 Statewide studies, planning 13

1:100,000 Regional studies, planning 35

1:62,500 Detailed studies, local planning appx. 200

1:24,000 Detailed studies, local planning appx. 800

1:12,000 Parcel level studies, detailed local planning appx. 3,200

1:5,000 Parcel level studies appx. 18,400

Large scale

USGS 7.5 minute quadrangle series have served as the standard digital basemap for agency data development since 1990. The 1:24,000 scale properly balances the economic and accuracy considerations of data development for most planning and natural resource activities. Basemaps of larger scales or different sources may be considered, but the decision must be carefully judged relative to the intended use, the scale of currently available digital data and the proposed basemap's quality.

Data submitted for inclusion in the Maine GIS database will conform to National Map Accuracy Standards (NMAS). For maps on publication scales larger than 1:20,000, not more than 10% of the points tested will be in error by more than 1/30 inch, measured on the publication scale; for maps on publication scales of 1:20,000 or smaller, 1/50 inch. The following table shows the NMAS for some common map the scales:

TABLE 2: Common Scales and NMAS horizontal accuracy requirements

Scale Engineering Scale NMAS

Feet Meters

1:500,000 1” = 7.89 miles +/- 833.33 appx. 254

1:250,000 +/- 416.66 appx. 127

1:100,000 +/- 166.67 appx. 51

1:63,360 1” = one mile +/- 105.60 appx. 32

1:24,000 1” = 2000’ +/- 40.00 appx. 12

1:12,000 1” = 1000’ +/- 33.33 appx. 10

1:4,800 1” = 400’ +/- 13.33

1:1,200 1” = 100’ +/- 3.33 appx. 1

A map resulting from the combination of two or more maps, photographs, or images of differing scale retains the accuracy of the least accurate source map. It is, therefore, important to consider the scales of data layers you expect will be most commonly used with the maps being prepared when choosing a scale for your data. This will have a bearing on both the technical and economic aspects of a project.

2.2 Map Media

o Stable-base mylar

Whenever possible, the mapped data should be drafted on the most scale-stable medium available. Shrinking and swelling in non-stable base media due to changes in atmospheric conditions can have a profound effect on the spatial accuracy of the final digital product. The following represents, from most to least desirable, the media to be used as the mapped data source for automation:

1. Mylar original

2. Mylar contact reproduction from mylar original

3. Non-stable base paper from mylar original

4. Non-stable base paper

Manuscript maps should not be folded. They should be stored in flat files or rolled up in map tubes.

2.3 Coordinate Reference

o Minimum of four reference points

Each map, photograph or image included in the Maine GIS database through digitizing or other means must have a minimum of four reference points (tics) for which the geographic coordinates are known and are printed on the map. Coordinates may be latitude/longitude pairs, or other units consistent with the projection of the map. If no coordinate reference is provided on the map, reference points must be calculated. Increasing the number of “quality” reference points will increase the accuracy of the registration.

2.4 Projection

o Projection of a map must be known and defined.

Prior to digitizing, and for later digital manipulation of map information, the projection of a map must be known. Maps are printed in many different projection systems. For example, most U.S. Geological Survey maps at 1:24,000 and 1:62,500 scales are in the Transverse Mercator or polyconic projection, although many other projection systems can be handled by current GIS technologies. Once in digital form, a map can be transformed from one projection to any other. The current standard projection for data in the Maine GIS database is Universal Transverse Mercator (UTM), North American Datum 1983 (NAD83), Zone 19, Meters. To facilitate inclusion in the Maine GIS database, data should be submitted in this standard projection and projection should be defined.

2.5 Line Work

o Maximum line width of 0.013 inch

Lines to be digitized will be drafted with a standard 00 technical drafting pen producing a line width of no more than 0.013 inch Lines that are too thick introduce subjectivity on the part of the digitizer operator.

2.6 Coincident Features

o Compile/recompile coincident features to avoid topological error.

Coincident features are those that are common to two or more data layers. For example, the mean high water mark of a pond may serve as a boundary for a residential zone, a soil type, and a wildlife management area; the mean high water mark, soil boundary and management area boundary are coincident features; therefore, coincident features should be digitized only once. Regardless of the care taken in digitizing, slight differences may lead to problems with small "slivers" if the layers are topologically joined. To avoid this phenomenon, use and reuse coincident features in new data layer development.

Coincident features should be clearly symbolized and labeled. During manual map compilation or recompilation a coincident feature should be symbolized in drafting and labeled by source. A standard method is to draft coincident features with a dashed line. If a coincident feature is to be extracted from an existing digital map and added to a new digital data layer, it should be attributed with information on the source from which it is extracted. Dashed line symbology may also be incorporated as an attribute value to allow the feature to be displayed and/or selected as a coincident feature.

2.7 Data not Recompiled on Standard Basemaps

In some cases it may not be feasible to recompile existing data on a standard basemap. The preparation of these data for entry into the Maine GIS database must be considered on a case-by-case basis with GIS personnel. The issues of media, coordinate reference, projection, and line work are particularly important under those circumstances.

3. DATA AUTOMATION SPECIFICATIONS

3.1 Automation Technique

o Features automated by heads up digitizing will be attributed with information on the source, and the process, used to add the feature to the data set and will equal or exceed NMAS standards for scale, of the original map, photograph, or image.

Tablet digitizing and scanning are currently the most commonly used techniques for automating maps. The selection of an automation technique depends on issues such as the complexity and quality of the source map, type of scanner, and the number of maps.

Data automation by heads-up digitizing has become more common with the increased availability of online scanned high resolution imagery. This is an interactive process in which data is created using previously scanned and georeferenced images such as scanned topographic sheets or photography. The process is similar to conventional tablet digitizing, but rather than using a digitizing tablet and a cursor, the user creates the data layer on the screen with the mouse and typically with referenced imagery as a background. The attention of the user is focused up on the screen, and not on a digitizing tablet. The accuracy of heads-up digitizing as a method of data automation depends on the type of image being used and the experience of the operator. For example, drafting features from a scanned topo sheet is easier to

do with precision because the features have already been cartographically interpreted and drawn. By contrast, accurate drafting of features from a photograph requires the use of more photo-interpretation skill.

3.2 Compatibility

o Final format will be compatible with this standard.

As Maine’s state government GIS network evolves, emerging systems will use ARC/INFO or will be fully compatible with ARC/INFO through a common data interchange format so existing digital spatial data can be shared.

Therefore, all data developed for the Maine GIS database must be in a format that is easily converted to an interchange format compatible with other components of the statewide GIS.

3.3 Digitizer Tolerances

o Strictly follow software and hardware vendor guidelines for digitizing

There are several digital tolerances which affect the accuracy and resolution of a digital map that can be explicitly defined during the map automation process. The tolerances recommended by the vendor should be strictly adhered to when digitizing or editing data on a particular system.

o RMS error not to exceed 0.005

The Root Mean Square Tolerance (RMS) defines the error incurred when predefined tics are used to register a map on the digitizing board for automation. In order to maintain the spatial relationship of map features during digitizing, the RMS error must be kept as low as possible when a map is registered on the digitizing table. The recommended maximum RMS error is 0.005.

o Tolerance equivalent to 0.005 digitizer units

The tolerance defines the minimum distance separating line coordinates, and the tolerance set corresponds to the resolution of the digitizer.

3.4 Cartographic Accuracy

o Digitize map features to within the equivalent of 0.01 inches of the original manuscript.

Digitizing spatial data involves taking a hard copy map and tracing it with a cursor to produce a digital file. Errors and distortions can easily occur in the tracing process. These errors are often small or negligible, but this may not always be the case. Careful, consistent and systematic digitizing, plus thorough verification are essential to adequately retain the quality of the source maps.

o Scanned data will be georeferenced and vectorized to within the equivalent of 0.01 inch of the original manuscript

o Data collected with Global Positioning System (GPS) equipment will have an accuracy equal to or greater than the base data to which it will be added.

Base stations and differential correction should be used to maximize the accuracy of GPS data collection. An accuracy assessment and documentation of method, collection parameters, and technology that affect data accuracy should be provided with the data.

Required standards for feature accuracy are:

o 90 percent of the planimetric features on the digital map will be within 0.01 inch of the centerline of that feature on the manuscript map when plotted at the original scale.

o 100 percent of all features will be within 0.02 inch.

The 0.01 inch interval is equivalent to a standard 0.01 plotter pen width. When a proof hardcopy plot of the digital map is overlaid on the original basemap, discrepancies in line work will be seen as an open space between the plotted feature and the original manuscript. Discrepancies in point data are more difficult to judge.

It should not be assumed in conversion between data formats, i.e. shapefile to coverage or coverage to SDE layer, that cartographic accuracy will be preserved. Careful management of tolerances and precision of the work environment will greatly improve the results of such a conversion and the conversion process should be documented.

3.5 Data Capture

o Use a minimum number of coordinates to define a line.

Storing many layers of statewide digital data requires efficient use of available computer storage, so digitize the minimum number of vertices needed to accurately represent the cartographic feature within the 0.01 inch accuracy limit.

o Digitize the exact center of a point map symbol

If possible, point locations should be entered directly into the system for exact known coordinates such as latitude and longitude rather than by digitizing. When digitizing points from a source map, digitize the exact center of the point map symbol.

3.6 Spatial Topology

o No overshoots

o No slivers

o No open polygons (e.g. undershoots)

o No label errors

o No unresolved node errors

o No unresolved line segment intersections

Digital data submitted for inclusion in the Maine GIS database will be topologically clean and free of errors. All points, lines, and polygons will have a single unique user-id number. Figure 1 shows graphic examples of acceptable and unacceptable topological conditions.

FIGURE 1: Graphic examples of unacceptable and acceptable

topological data conditions for digital data

Topologically Topologically

Unacceptable Acceptable

Overshoots

Slivers

Open polygons

Multiple user-ids

3.7 Edge Matching

o Contiguous features should be edge matched or closed.

Line segments (arcs) that intersect the boundaries of a coverage must be accurately edge matched with the corresponding arcs in the adjacent coverages. Computer edge matching techniques ensure an exact match. In lieu of an exact match, arcs must be matched to within 0.01 inch, centerline to centerline.

o Closure lines should be attributed as “closure”.

In the absence of more accurate data, where edgematching line segments from adjacent coverages would move a feature or features a distance that exceeds NMAS standards for scale, the addition of a closure line is the preferred. A closure line is an arbitrary feature drawn to close a polygon or arc. Features that represent closure lines should be attributed accordingly.

o Map features should not to extend beyond prescribed dataset boundaries.

Arcs must not extend beyond (overshoot) nor fall short of (undershoot) the dataset boundary.

3.8 Coding Accuracy

o 99.5 percent of all attributes will be coded correctly.

The most serious problem is miscoding a feature. Coding an area of glacial till as a sand and gravel deposit is an example of this type of error. Other errors in attribute coding include any occurrence of misspelling or omissions. All attributes will be coded correctly.

3.9 Accuracy Assessment

The following assessments will measure data accuracy:

o 90 percent of all features within 0.01 inches when reproduced at the scale of original manuscript map

o 100 percent of all features within 0.02 inches when reproduced at the scale of original manuscript map

o Topology complete and accurate

o 100 percent of all attributes coded correctly

It is the responsibility of the producing agency to verify that the original data have been encoded within the accuracy limits set by these standards. Ninety percent of the cartographic features on a map will be digitized within 0.01 inches measured from the centerline or center point of a feature. One hundred percent of all cartographic features will be digitized within 0.02 inches.

There are many ways to formulate a scheme to assess data accuracy. Methodology to assess data accuracy should be developed with the automation contractor or within the producing agency if data are automated in house.

If all criteria are met, then note in the documentation (next section) that the digital map meets these standards.

3.10 Proof Plots

o Mylar proof plots

o Pen width - 0.01 inch

For each digital map created, a mylar proof plot of that map should be made to verify that the original data have been digitized within the accuracy requirements of these standards. The proof plot should be plotted on mylar at the same scale as the manuscript. All lines on the proof should use a linewidth of 0.01 inch or less and be drawn with liquid ink pens. Point data should be represented with the "+" symbol.

3.11 Attribute Coding

o Choose attribute coding schemes that are well defined and in common use.

o Names of new datasets should not be the names of existing datasets in the Maine GIS database.

o Begin all dataset names, item names, and attribute codes with a letter.

o Eliminate punctuation, i.e. hyphens, pound signs, periods from dataset names, item names and attribute codes.

o Limit the length of dataset names and item names to 8 characters or digits.

o Define items according to intended use, i.e. numeric data types for statistical data or for data that will be used for calculation, characters data types where these functions are not anticipated.

o Limit the length of attribute codes to 12 characters or digits.

o Eliminate the use of the Boolean values 0 and 1 as attribute codes.

o Wherever practicable utilize character attribute codes, i.e. previously defined acronyms or abbreviations in common use.

Naming conventions, item length, and punctuation recommendations are based on format conversion and compatibility requirements. For example, conversion to shapefile format changes some characters ( # - .) to underscores; item names over 8 places are truncated; the Boolean values 0 and 1 impact the results of geographic analysis. An effort will be made over time to consider these limitations in item names and to eliminate the use of these characters in data included in the Maine GIS database.

o Use Standard Geocodes for Maine.

As an information service to state agencies and the public, Standard Geographic Codes for Maine, are available for download through the Maine Office of Geographic Information Systems (MEGIS) Data Catalog. The published table contains the first official Standard Geographic Code endorsed and adopted by the Governor of Maine, on July 1, 1971. Geocodes have undergone subsequent revisions, all of which were "officially" rolled back to this 1971 list by Maine's Information Services Policy Board (ISPB), as of January 2000. In 1971, all Maine state agencies were requested to implement these five digit geocodes, in agency information systems, to build a base of data for Maine's Minor Civil Divisions (MCDs) and to promote data sharing. Data coded by MCD may subsequently be summarized by any other type of region, administrative district, natural area, etc. The first two digits of the geocode represent the federal code (FIPS) for Maine counties, the remaining three digits uniquely identify each of Maine's MCDs and Reservations.

Prior to the development of important new data sets, a detailed series of data layer specific content standards that expand on existing standards should be completed. Attribute coding and content for all new data sets will expand on adopted standards and reflect coordination with federal and regional content standards. For example, coding of a soils database will follow the conventions of the USDA Soil Conservation Service. Nationally recognized formats also exist for coding of data layers such as wetlands and land use. When devising a new scheme, it is important to allow for as many different foreseeable uses of the data as possible. For example, in a land use coding scheme, it is preferable to have individual codes for different types of agricultural use (e.g. cropland and pasture) than a single code specifying agricultural use. The individual codes may be aggregated, but the single code cannot be broken into its components.

3.12 Database Attributes

o Add and properly define a database field to store a standard geographic reference.

Standard geographic reference exist at all levels of government and in the private sector, for example the U.S. Board of Geographic Names responsible for the Geographic Names Information System(GNIS), the National Bureau of Standards, Federal Information Processing Codes (FIPS). Many Maine state agencies maintain standard geographic reference information relating to their programs. Examples include the Maine State Planning Office, Standard Geographic Codes for Maine Minor Civil Divisions (GEOCODES), Maine Bureau of Parks and Lands, Coastal Island Registry (CIREG), Maine Inland Fisheries and Wildlife Maine Information Display and Analysis System (MIDAS). An effort is ongoing to promote the standardization of database attributes by working with agencies who serve as primary sources for geographic references. To take full advantage of Maine's growing capability to process, analyze and display geographic information, databases developed within state government, whose records relate to a geographic feature, should include a minimum of one field that stores a related standardized geographic reference from a primary source, such as:

o Standard Geocode for Maine Minor Civil Divisions

o Federal Information Processing Standard or FIPS Code

o Latitude and longitude to the nearest second

o Universal Transverse Mercator Eastings and Northings to 6 and 7 digits, respectively.

o Coastal Island Registry Number

o MIDAS Number

o Tax Map Identifier and Lot Identifier

o Street Address

Georeferenced databases can be linked in the GIS environment for analysis and display with the spatial data that makes up the Maine GIS database. Georeferences can be very specific, for example: latitude and longitude locations for storage tanks and hospitals. Some data, for example disease occurrences or demographic data, can be assigned a less specific georeference like a geocode or a census geographic unit. Many phenomena can be mapped including: bus routes and school bus stops, chemical and oil spills, contamination, hazardous material locations, storage tanks, administrative districts, emergency service locations, disease occurrences, demographic characteristics, clients, services, natural and biological resources.

4. FGDC DOCUMENTATION

o Federal Geographic Data Committee (FGDC) compliant documentation is required for all data to be included in the Maine GIS database .

The FGDC Content Standard for Digital Geospatial Metadata (CSDGM) has been adopted by the GIS EC as the documentation or "metadata" format for all data included in the Maine GIS database. Participating agencies are responsible for providing documentation in FGDC compliant metadata format for geospatial data products. The metadata must be stored and maintained by the agency developing and maintaining the geospatial data.

FGDC metadata is the required documentation of all geospatial data products produced through partnerships, grants or contracts with federal agencies. Federal agencies collecting or producing geospatial data, either directly or indirectly (e.g. through grants, partnerships, or contracts with other entities), are required to ensure, prior to obligating funds for such activities, that data will be collected in a manner that meets all relevant standards adopted through the FGDC process. (Executive Order 12906, published in the April 13, 1994, edition of the Federal Register, Volume 59, Number 71, pp. 17671-17674. COORDINATING GEOGRAPHIC DATA ACQUISITION AND ACCESS: THE NATIONAL SPATIAL DATA INFRASTRUCTURE)

Metadata is "data about data". Like a style guide, the FGDC CSDGM defines what information belongs in a metadata record and the order in which it is presented. The goals and objectives of Maine’s FGDC compliant documentation can be summarized as follows:

1. to provide a history of each geospatial data set included in Maine’s GIS database with standardized information on content, location, purpose, accuracy, condition, quality, collection and development processes, scale, projection, feature attribution, and other characteristics of geospatial data necessary to determine the utility of a map for a specific purpose;

2. to protect Maine’s investment in geospatial data by minimizing the risk of data loss, and minimizing the recreation of existing data, through systematized documentation of geospatial information; and

3. to promote data sharing by providing information about Maine geospatial data holdings to external catalogues, clearinghouses, and brokerages and by providing information on the processing and interpretation of spatial data received through a transfer from an external source.

4.1 Basics of FGDC

FGDC compliant documentation or metadata tells you the who, what, why, how, when and where of geospatial data. The standard organizes a metadata record into seven main sections.

o Identification Information

o Data Quality Information

o Spatial Data Organization Information

o Spatial Reference Information

o Entity and Attribute Information

o Distribution Information

o Metadata Reference Information

4.2 Technical Support for FGDC

Technical support for content development of FGDC metadata and information on FGDC compliant software for metadata development is available through the MEGIS, Data Center, Technical Support phone line at (207) 287-6144. A link to additional FGDC resources is available under “Standards and Guidelines”, MEGIS homepage, http://apollo.ogis.state.me.us.

4.3 More About FGDC

Maine FGDC compliant metadata is published through the MEGIS internet Data Catalog. FGDC metadata documents are also the basic components of the National Geospatial Data Clearinghouse, and FGDC compliant metadata for Maine’s geospatial data can be made available to clearinghouse nodes nationwide. The National Geospatial Data Clearinghouse is a distributed online catalog of digital spatial data, part of the National Spatial Data Infrastructure (NSDI) (Executive Order 12906). NSDI goals are to reduce duplication of effort among agencies, improve quality and reduce costs related to geographic information, to make geographic data more accessible to the public, to increase the benefits of using available data, and to establish key partnerships with states, counties, cities, tribal nations, academia and the private sector to increase data availability.

REFERENCES

Arkansas State Land Information Board, 2001. Standards for Collecting Mapping Grade Global Positioning System Positions. Arkansas Legislative Subcommittee on Rules & Regulations, Arkansas State Land Information Board. Little Rock, Arkansas. More information on this document is available at http://www.gis.state.ar.us/LIB/GPS.htm.

Department of Conservation, 1989. Interim Geographic Information

System Policies and Quality Standards. Department of Conservation, Augusta, Maine.

Environmental Data Center, 1988. Digital Database Standards for

the Rhode Island Geographic Information System. Department of Natural Resources Science, The University of Rhode Island, Kingston, Rhode Island.

EOEA Data Center, 1987. Draft Data Standards for the Massachusetts Executive Office of Environmental Affairs Geographic Information System. EOEA, Boston, Massachusetts.

Federal Geographic Data Committee. Content Standard for Digital Geospatial Metadata Workbook Version 2.0. Federal Geographic Data Committee. Washington, D.C.

Federal Geographic Data Committee. FGDC-STD-001-1998. Content Standard for Digital Geospatial Metadata (revised June 1998). Federal Geographic Data Committee. Washington, D.C.

Maine Geographic Information System, 1990. Data Standards for Maine Geographic Information Systems. Maine Department of Conservation, Augusta, Maine.

Maine Office of Geographic Information Systems, 2000. Maine Geographic Codes for Minor Civil Divisions (GEOCODES). Maine GIS Technical Group subcommittee report, additional information on this initiative and other Maine GIS recommendations is available at http://apollo.ogis.state.me.us/standards/standards.asp, Augusta, Maine.

Maine Office of Geographic Information Systems, 2000. Maine GIS Feature Metadata Recommendation 2000. Executive Council for Geographic Information Systems (GIS EC), additional information on this initiative and other Maine GIS recommendations is available at http://apollo.ogis.state.me.us/standards/standards.asp , Augusta, Maine.

Maine Office of Geographic Information Systems, 2001. Maine GIS Remote Sensing Final Report, Draft Land Cover Classification. Maine GIS Technical Group subcommittee report, additional information on this initiative and other Maine GIS recommendations is available at http://apollo.ogis.state.me.us/standards/standards.asp , Augusta, Maine.

Maine Office of Geographic Information Systems, 2002. GIS Recommendations for ARC/INFO Work Environments. Augusta, Maine.

Office of Geographic Information Services, 1989. Proposed Digital Data Standards for the Vermont Geographic Information System (VGIS). School of Natural Resources, The University of Vermont, Burlington, Vermont.

RTSe, 2000. Spatial GIS Metadata/Data Manager, User Guide, Version 3.1 for Oracle 8. RTSe USA, Redmond, Washington.

University of Texas at Austin School of Architecture, 1999. National Map Accuracy Standards (NMAS) Horizontal Accuracy Examples. Community and Regional Planning Program, University of Texas at Austin, Austin, Texas.

Appendix B

Dr. Smith owns two lots, map 17 lot 15 and map 17 lot 16 but in this database they are both carried under one listing : 17-15

assessor’s database

MAP_BK_LOT OWNER OWN_ADDR LAND_VAL

17-15 Dr. Jonathan Smith 119 Old Post Rd $135,000 incl 17-16

17-14 Ansel Jones 21 Old Post Rd

The parent field shows that 17-15 carries the information for 17-16

digital parcel file

STATE_ID MAP_BK_LOT PARENT PROP_LOC

21020-00001 17-6 11 Old Post Rd

21020-00002 17-13

21020-00003 17-14 21 Old Post Rd

21020-00004 17-8

21020-00005 17-15 119 Old Post Rd

21020-00006 17-9

21020-00007 17-16 17-15 120 Old Post Rd

Appendix C

Maine GIS Feature Metadata Recommendation 2000

The Maine GIS Feature Metadata Recommendation was presented to the GIS Technical Group in October 2000, by the GIS Technical Group feature metadata subcommittee, and was submitted to the GIS EC in December of the same year. Additional information on this initiative and other Maine GIS recommendations is available at http://apollo.ogis.state.me.us/standards/standards.asp .

FEATURE METADATA RECOMMENDATION Brief

The use of FM items and codes in feature attribute tables is recommended, to provide accessible readable standardized notation that describes the quality and currentness of each geospatial feature’s location. Recommended FM items are FMSRC, FMSRCORG, FMPROCSS, FMUPDORG, FMUPDDAT with two optional items FMSRCDAT and FMNOTE. These items are recommended for use to record the following information about the location of a feature: the source used to identify the feature’s location, the source originator, the process used to incorporate the feature, also the organization of edit and date of edit if applicable. It is recommended that the items be populated with standardized and defined FM codes. FM codes for use in these items, like the items themselves, are designed to be unique references, as short, clear and self-explanatory as possible. All have been listed, standardized, and defined so that each represents a single information type and entity. For example what is meant by the item FMSRC coded 24k, tigers90, gps, engplan, sketch, or roughsrvy, FMSRCORG coded usgs, medot, uscb, FMPROCSS coded closure, edgematch, or screendig is specific and defined. Codes are in text, all lower case and include no hyphens, punctuation or spaces. Codes for use in source originator and organization of edit are organizational acronyms that have been confirmed. Wherever possible federal agencies carry the "us" prefix and state agencies carry the postal prefix "me" for the state of origin, i.e. medot, medhs, megis. The FM subcommittee has defined this set of items and related codes with reference to elements in FGDC metadata. The FM recommendation is flexible and will function in most GIS environments independent of FGDC metadata or specific metadata tools; however, because coordination of feature attribute tables with FGDC metadata maximizes available information and minimizes attribute load, parallel or subsequent development of FGDC metadata, and use of cross references to same, is assumed and recommend

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Applied Geographics Inc., State of Maine GIS Needs Assessment & Requirements Analysis and Strategic Plan to Develop The Maine Public Library of Geographic Information, January 2002, page 29, page 22 ↑

Vermont Center for Geographic Information, Handbook, Part 3 – Guidelines Section A, Municipal Property Mapping, December 2000, ver. 2.0 ↑

Some of the following items are reprinted, courtesy of MassGIS, from MassGIS Standard for Digital Parcel Files and Related Data Sets, Version 1.0, July 2001,The Massachusetts Office of Geographic and Environmental Information, 251 Causeway St, Boston, MA, 02114 ↑

18-134 Capitol Planning Commission

Chapter 1 Capitol Area Rules and Regulations

Code Me. R. 18-134 Ch. 1 Capitol Area Rules and Regulations {#sec-18-134-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-134 Ch. 1}

Summary: This chapter contains regulations governing the construction, reconstruction, or demolition of buildings within the Capitol Area of the City of Augusta as defined in 1 M.R.S.A. §814 and 5 M.R.S.A. §303 thereafter sometimes referred to as "the area". They describe the procedure for site plan review and pronounce design requirements which include height, setback, driveway location, exterior design, landscaping, parking regulations, signage, and materials. They further set forth certain regulations establishing prohibited uses of structures within the area. These rules and regulations shall be known and may be cited as the "Capitol Area Rules and Regulations” and will be referred to herein as these "regulations". They have been adopted in accordance with 5 M.R.S.A. Chapter 14-A, as amended.

The purpose of this Chapter is to insure orderly development of the Capitol Area and provide effective planning for possible further growth of the governmental agencies of the State of Maine. It is the goal of the State of Maine to maintain and improve the integrity and individuality of the Capitol Area as a distinct planning area and develop all structures within the area with compatible design requirements and harmonious uses.

SECTION 1 – General 2

SECTION 2 – Establishment of Districts 4

SECTION 3 – Definitions 7

SECTION 4 – Procedure for Review and Approval of Projects 10

SECTION 5 – Design Requirements for Projects 14

SECTION 6 – Land Use in Capitol Area 58

SECTION 7 – Variance & Appeals 60

SECTION 1 – General

1. Basic Requirements

All buildings or structures hereinafter erected, reconstructed, altered, enlarged or moved, and uses of premises in the Capitol Area shall be in conformity with the provisions of these regulations. No building shall be designed or used in any manner within the Capitol Area except as permitted by these regulations.

2. Non-Conforming Uses and Designs

A. Continuance of Non-Conforming Uses and Designs

(1) The use and design of buildings or structures lawful at the time of adoption or subsequent amendment of these regulations may continue, although such uses and designs do not conform to the provisions of these regulations.

(2) Non-conforming uses of structures may be continued but the area of non-conforming uses may not be extended or expanded except in conformity with these regulations.

(3) Non-conforming uses and designs, if damaged or destroyed by fire or other natural disaster, may be replaced, reconstructed or reutilized in the same shape, size, design and manner within one (1) year.

(4) A non-conforming use may not be changed to another non-conforming use without approval of the Commission. The Commission may grant approval only upon a determination that the proposed use is substantially similar in type, character, and scope to the existing non-conforming use, and that the new non-conforming use is consistent with the policies of the Commission as outlined in the enabling statute.

B. Discontinuance of Non-Conforming Uses

A non-conforming use which is discontinued for a period of one (1) year may not be resumed. The uses of structures shall thereafter conform to the provisions of these regulations.

C. Rule of Precedence

Whenever a non-conforming use or design of a structure is superseded by a permitted use or design, such use or design shall thereafter conform to these regulations and the non-conforming use or design may not thereafter be resumed.

D. Transfer of Ownership

Ownership of land and structures which remain lawful but become non-conforming by the adoption of these regulations or amendments to these regulations may be transferred and the new owner may continue the non-conforming use and design subject to the provisions of these regulations.

E. Applications for Building Permits

Nothing in these regulations shall require any change in the use or design of any building or structure or part thereof for which a building permit has been issued by the City of Augusta, provided construction shall start within sixty (60) days after issuance of any such permit; or upon which construction commenced prior to the adoption or amendment of these regulations.

F. Buildings used for Residential Purposes

These regulations shall not apply to the erection, reconstruction or repair of any building which is used for residential purposes and does not exceed eight (8) dwelling units. (These regulations shall apply, however, to constructions of multiple excepted dwelling units on contiguous parcels of property).

3. Validity and Severability

Should any section or provision of these regulations be declared by the Courts to be invalid, such decisions shall not invalidate any other section or provision of these regulations.

4. Conflict with other laws or Ordinances or Regulations

These regulations shall not repeal, annul or in any way impair or remove the necessity of compliance with any other rule, regulation, by-law, permit or provision of law. Where these regulations impose greater restrictions upon the use or design of buildings or structures the provisions of these regulations shall apply.

5. Amendments

Amendment of these regulations shall be conducted in accordance with the Administrative Procedure Act of Maine, 5 M.R.S.A. §§ 8051 - 8058.

SECTION 2 – Establishment of Districts

1. Zoning Districts

To implement the provisions of this Ordinance, the Capitol Area of Augusta is hereby divided into the following Districts:

A. Arsenal Zone (ARZ)

B. Capitol Complex Historic Zone (CCHZ)

C. East Campus Zone (ECZ)

D. Gateway Zone (GZ)

E. Municipal Resource Zone (MRZ)

F. Residential Zone (RZ)

G. State Development Zone (SDZ)

H. State House & Capitol Park Zone (SHCPZ)

2. Location of Districts

Said Districts are located and bounded as shown on the Capitol Planning Commission District Capitol Area Map, dated August 2006, and on file at the Bureau of General Services.

3. Uncertainty of Boundary Location

Where uncertainty exists with respect to the boundaries of the various Districts as shown on the Capitol Area Map, the following rules shall apply:

A. Boundaries indicated as approximately following the center lines of streets, highways, or alleys shall be construed to follow such center lines;

B. Boundaries indicated as approximately following well established lot lines shall be construed as following such lot lines;

C. Boundaries indicated as approximately following municipal limits shall be construed as following municipal limits;

D. Boundaries indicated as following railroad lines shall be construed to follow such lines;

E. Boundaries indicated as being parallel to or extensions of features indicated in sub-sections above shall be so construed. Distances not specifically indicated on the Capitol Area Map shall be determined by the scale of the map; and

F. Where physical or cultural features existing on the ground are at variance with those shown on the Capitol Area Map, or in other circumstances not covered by sub-sections above, the Capitol Planning Commission shall interpret the District boundaries.

4. Division of Lots by District Boundaries

Where a Zoning District boundary line divides a lot or parcel of land of the same ownership of record at the time such line is established by adoption or amendment of this Ordinance, the regulations applicable to the less restricted portion of the lot are applicable.

SECTION 3 – Definitions

1. Definitions

As used in this Chapter, unless the context otherwise indicates, the following terms have the following meanings:

A. Building Height means the vertical height from the sidewalk or finished grade at the center of the front of the building to the highest point of the roof surface, if a flat roof; to the deck line of mansard roofs; and to the mean height between eaves and ridges for gables, hip, and gambrel roofs.

B. Family means one (1) or more persons occupying a premise and living as a single housekeeping unit.

C. Eight Unit Dwellings means a free standing building intended and designed to be occupied and used exclusively for residential purposes by each of not more than eight families.

D. Interested Parties means State agencies such as the Department of Transportation, Maine Historic Preservation Commission, Maine Arts Commission, City Officials, abutters or neighbors across the street but are not limited to those stated herein.

E. Lot means a registered or recorded parcel of land of at least sufficient size to meet minimum zoning requirements for use and dimensions and to provide such yards and other open spaces as are required. An easement shall not be considered a lot.

F. Lot Lines

(1) Front means the line separating any lot from a street or streets.

(2) Rear means a line which is opposite and most distant from the front lot line; in the case of a triangular or irregular lot, a line ten (10) feet long within the lot, parallel to and farthest from the front lot line.

(3) Side means any lot line not a front or rear lot line.

G. Lot Measurements

(1) Lot Frontage means the fee simple or leasehold boundary line of a lot which extends along a recorded or recordable street/road Right-of-Way which meets the minimum width requirements for the intended use on said lot. For the purpose of determining yard requirements on corner lots and through lots, all sides of a lot adjacent to streets shall be considered "frontage" and yards shall be provided as indicated under "yards" in this section.

(2) Lot Depth means the distance between the midpoint of straight lines connecting the foremost points of the side lot lines in front and the rearmost points of the side lot lines in the rear.

(3) Lot Width means the distance between straight lines connecting front and rear lot lines at each side of the lot, measured across the rear of the required front yard.

H. Non-Conforming Use means the use of buildings, structures, premises, land or parts thereof which is not permitted in the district in which it is situated, but which is allowed to remain solely because it was in lawful existence at the time these rules and regulations or subsequent amendments took effect.

I. On Premise Sign means a sign which is erected and maintained according to the standards set forth in these regulations upon the same real property that the residence, business, facility or point of interest is located. The signs shall only advertise the business, residence, facility or point of interest conducted thereon or the sale, rent, or lease of the property upon which it is located.

J. Parking Lot means a parcel or area of land designed for the parking of motor vehicles.

K. Project means any changes as described in these regulations to buildings or property within the zoning districts noted that require review by the Capitol Planning Commission.

L. Quasi-Public means a public or non-profit corporation or institution.

M. Re-construction means the rebuilding of a structure or building in which changes are made to the structure so that the spaces enclosed and/or the shape and/or the size of the building is changed.

N. Renovation means repairs and improvements which do not change the external structure, shape, or size of the building.

O. Setback means the nearest horizontal distance from a lot line or normal high-water line to the nearest part of a structure, road, parking space or other regulated object or area.

P. Story means that portion of a building including between the surface of any floor and the surface of the floor or the roof next above it. A basement shall be considered a story for the purpose of height measurement where more than one-half (1/2) of its height is above the average level of the adjoining ground.

Q. Streets mean any public or private Right-of-Way of a specified width, or a Right-of-Way shown on a recordable subdivision plan approved by the City of Augusta Planning Board, not including State owned driveways.

R. Structural Alteration means changes in supporting members of a building, such as supporting walls, beams, columns, and girders.

S. Structure means anything built for the support, shelter or enclosure of persons, animals, goods or property of any kind, together with anything constructed or erected with a fixed location on or in the ground, exclusive of fences, utility poles and associated appurtenances, sidewalks and handicap ramps. The term includes structures permanently or temporarily located, such as decks, signs, gas or liquid storage tanks that are principally stored above ground and satellite dishes.

Any structure having a roof supported by columns or walls. Buildings separated only by party walls or abutting walls without openings shall be deemed to be separate buildings.

T. Yard

(1) Front means a yard adjoining the front lot line, extending between the principal structure and the street.

(2) Rear means a yard adjoining the rear lot line and extending between the rear lot line and the principal structure.

(3) Side means a yard adjoining a side lot line extending from the front lot line to the rear lot line as required by district regulations.

SECTION 4 – Procedure for Review and Approval of Projects

1. Basic Requirements

All projects in the Capitol Area must be reviewed and approved by the Capitol Planning Commission before any construction, development, demolition, or change of use of property within the area takes place unless otherwise exempted by these regulations.

2. Procedure for Approval of Projects

A. Preliminary Concept:

Any person contemplating a project within the Capitol Area shall submit concept plans and a written description of the project to the Director of the Bureau of General Services and the Capitol Planning Commission.

(1) Submissions shall include appropriate information such as site plans showing boundaries, topography, size of plot, buildings, parking on site, location of streets and utilities, pictures of property and buildings, and construction materials, as applicable.

(2) The Director or Commission may request additional information if further clarification is required.

(3) Upon receipt, the Capitol Planning Commission shall review the plans and by majority vote, approve or disapprove the plan within thirty (30) days unless an extension is required by the Commission.

(4) Within one (1) week of receipt, the Commission may invite review by any groups, agencies or parties as it may deem appropriate. Said reviews shall be completed within ten (10) days of notice or it will be assumed that no comments are to be made.

(5) Preliminary approval of the plans may be conditioned upon compliance with specific conditions to be met in the final design submission.

(6) Preliminary approval of concept plans shall be valid for a period of one (1) year.

(7) If preliminary approval is denied, the applicant may request and receive a public hearing with the Capitol Planning Commission.

(8) If a public hearing is scheduled, notice to interested parties shall be given in accordance with 5 M.R.S.A. §§ 9052 - 9064 of the Administrative Procedure Act. (A.P.A.)

B. Final Design

(1) If preliminary approval has been granted, the final design shall be submitted to the Director of the Bureau of General Services and the Capitol Planning Commission within a reasonable time, but in no event later than one (1) year from the date of the preliminary approval.

(2) Final Design Submission

Two (2) copies of final design submissions shall include appropriate information such as plans, materials, and color selections, as applicable, demonstrating the following:

(a) Compliance with all conditions set forth in any preliminary concept plan approved.

(b) Be at a scale of 1:10 or as otherwise agreed by the Director of the Bureau of General Services.

(c) Show location and sizes of all utilities.

(d) Show the entire plot of land, adjacent properties, streets and topography.

(e) Show elevation drawings.

(f) Show landscaping, site furnishings, and fixtures.

(g) Be accompanied by a statement and signature/seal of a registered architect or registered engineer that all design requirements of the Capitol Area rules and regulations are adequately met in the plans.

(h) Show samples of exterior materials and color selections.

(i) A model of the new construction or reconstruction with detailed fenestration, landscaping, and parking at a scale of ¼” = 1’-0”, or a scale mutually agreeable to the applicant and the Commission may also be submitted for consideration.

(j) The Director or Commission may request additional information to satisfactorily demonstrate compliance with the design requirements enumerated in Section 5.

(3) Within one (1) week of submission the Capitol Planning Commission shall invite interested parties to review the plans.

(4) Final design submission shall be reviewed upon their receipt by the Commission and a public hearing held within thirty (30) days unless an extension is agreed upon.

(5) Final approval of design submission shall be voted by a majority of the Commission. The Commission shall provide notice to the applicant of approval or disapproval within ten (10) days of hearing.

(6) If final approval is not granted, the Commission shall prepare a written report to be recorded and delivered to the applicant stating the reasons for disapproval of the plans.

(7) Notice of public hearing shall be provided in accordance with the Maine A.P.A. 5 M.R.S.A. §§ 9052 - 9064.

C. Special or Temporary Use Permit

Special or Temporary Use Permits may be issued by the Capitol Planning Commission under the following provisions:

(1) General

A Special or Temporary Use Permit may be issued to permit an applicant to undertake an activity within the Capitol Area that otherwise is prohibited by the provisions of these Regulations. The Capitol Planning Commission may act on a request for issuance of Special or Temporary Use Permits at a regular meeting.

(2) Application

The person or organization seeking a Special or Temporary Use Permit shall submit an application to the Commission, and stating the intended use, activity, operation or undertaking; the dates on which it would be initiated and terminated; location; name of the sponsoring entity, organization or individual; and a description of the use or activity including hours of operation and anticipated effect on surrounding properties. All other provisions of these Regulations with respect to the application process are applicable.

(3) Standards

In carrying out the purpose of this section, the Commission shall be influenced by the following standards, and the appropriateness of these standards shall be determined at the discretion of the Commission for each specific Special or Temporary Use location.

(a) The proposed use or activity is so designated, located and proposed to be operated that the public health, safety and welfare will be protected.

(b) The proposed use or activity is compatible with and will not adversely affect other property in the area where it is proposed to be located.

(4) Permit

The permit as may be issued by the Commission shall stipulate the name of the sponsoring entity, the location of the activity or use, the permissible hours and days of operation, the designated date on which the activity or use will commence and the date for termination, and any special conditions or safeguards the Commission may impose.

D. Administrative Procedure Act

In the event these regulations are interpreted to conflict with the requirements of the Maine Administrative Procedure Act, the Administrative Procedure Act shall control. Further it is noted that the Administrative Procedure Act shall apply to any circumstances not covered by these rules and regulations.

SECTION 5 – Design Requirements for Projects

1. Purpose

The Capitol Area is distinct from other areas within the city and state in both form and function. The following design requirements include guidelines and standards formulated to protect the Capitol Area from development inconsistent with its unique characteristics, which could diminish its historic importance and emphasis on the open and easy access to state government by all. These requirements define the policy of the State of Maine such that development in the Capitol Area shall proceed in a manner that reflects careful planning and consideration of aesthetic quality, wise use of resources, and historic context, with due regard for the interests of the public involved.

2. Basic Requirements

All projects in the Capitol Area must comply with the design requirements set forth herein, and be developed in a manner reflective of their spirit and intent.

A. Standards and Guidelines

The Capitol Area is divided into eight types of zones, as indicated on the Capitol Area Map. Design standards and guidelines for building and site construction are provided for each zone.

Standards are used to determine the appropriateness of proposals for adding new buildings or site development within the zone. Meeting the applicable standards for each zone is a requirement for approval of any project by the Capitol Planning Commission.

Guidelines, also provided for each zone in a separate document titled Guidelines for the Design of Projects in the Capitol Area, are more general design and technical recommendations that are meant to help applicants apply the standards. It includes information to assure that such projects take into account the character-defining features of each zone.

Guidelines should be considered recommendations, whereas standards should be considered requirements.

3. Building Height

New building construction in the Capitol area shall be relative to location within the District, proximity to state buildings, and size of lot as follows:

A. Within the Capitol Complex Historic (CCHZ), and Western Gateway (WGZ) zones, height shall not exceed 6 stories, or as further defined herein. No building, building related structure or appurtenance shall be greater in height than the base of the State House dome.

B. Within the Eastern Campus (ECZ) zone, height shall not exceed 5 stories.

C. Within the Arsenal (AZ) zone, height in Development Zone shall not exceed 5 stories. Height in the Limited Development Zone shall not exceed 3 stories.

D. Heights of buildings in all other zones shall conform to city standards.

E. Within the State Development (SDZ) Zone, height shall not exceed 3 stories (45 feet from highest point of grade around the building) or exceed that of the lowest immediately adjacent structure.

4. Building Setbacks

Placement of new building construction shall conform to and respect established building lines along city streets within the District, reinforcing the street edge and maintaining a cohesive campus environment. Where prescribed front setbacks would create a non-conforming situation that would be visually conflicting with greater than 50% of the existing structures within the block, the Commission may elect to waive or modify the setback requirements.

Building setbacks shall be as defined in the City of Augusta ordinance except as follows:

A. Sewall Street

(1) 35 feet front setback within the State Development (SD), Capitol Complex Historic (CC), and Western Gateway (WG) zones.

(2) 25 feet front setback within the Residential (R) zone.

(3) Side and rear setbacks as per City of Augusta ordinance.

5. Driveways

Driveway size and placement shall be per city standard except as noted herein:

A. Driveways shall be limited to one per lot unless the lot exceeds 200 feet of frontage on any one street, in which case two driveways may be allowed.

B. Driveways shall be a minimum of 50 feet from street intersections as measured from the projection of the intersection of the street rights-of-way to the nearest edge of driveway paving.

6. Space and Bulk

New development within the District shall be in keeping with the context within which the new development is to be located, preserving and enhancing the campus environment. Lot coverage, impervious surface coverage, and floor area ratio for development within the District shall conform to city standards except as noted herein.

7. Cross-Referencing

The applicant shall be responsible for reviewing standards for Capitol Area zones that abut the zone in which the proposed project resides. In some cases standards for one zone may contain standards that apply or refer to, or impact, other zones.

8. Building and Site Construction Design Standards

A. Existing Buildings

The Capitol Planning Commission, with the assistance of the Maine Historic Preservation Commission, shall use The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings, for the evaluation of proposed projects relating to the existing buildings of the various zones, and only the existing historic buildings in the RZ. Projects involving additions to the existing buildings, and only the existing historic buildings in the RZ, will be subject to both the New Construction Design Standards and the Secretary of the Interior’s Standards for the Treatment of Historic Properties.

B. New Construction Design Standards

These standards establish the framework for placing new buildings in the various zones. In addition, The Secretary of the Interior’s Standards for the Treatment of Historic Properties shall apply as appropriate. Because each of the zones represents a unique set of circumstances and a distinct context, design standards will be provided for individual zones where applicable. If no designation is given, the standard applies to all areas.

(1) Color

Exterior paint and finish material colors shall be reviewed and approved by the CPC.

(2) Materials

Exterior wall materials shall be reviewed and approved by the CPC.

(3) Accessibility (exceptions: RZ)

All new buildings and additions shall be fully accessible to persons with disabilities.

(4) Sustainability

Projects involving State-owned, State-leased, or State-occupied buildings shall comply with the energy provisions to the extent possible and appropriate for historic buildings. Sustainable design provisions shall not result in the loss of or damage to character-defining features. Solar panels, wind turbines, and other similar technology used for sustainable energy features shall be reviewed and approved by the CPC. The designer shall incorporate the standards developed by the United States Green Building Council’s Leadership in Energy and Environmental Design (“LEED”) Version 2.1, or the most recent version, to achieve maximum energy efficiency and environmental sustainability, provided this can be accomplished cost effectively, considering construction and operating costs over the life cycle of the building being constructed or expanded, and, in the case of an addition, provided this can be accomplished without compromising any of the character defining features of the existing building. State requirements for sustainable design shall be met.

(5) Building-Mounted Lighting

Building-mounted lighting shall be architectural and decorative, of high quality, and integrated with the building design. Wall packs and “cobra heads” are prohibited.

(6) Building Quality (exceptions: GZ, RZ)

New buildings shall be constructed of enduring materials, components and systems, designed and constructed to provide the best value possible, resulting in “100-year buildings” and to match or complement those of adjacent historic buildings.

C. New Site Development Design Standards

These standards are supplemental to those set forth in the “Guidelines for Rehabilitating Cultural Landscapes”, part of The Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for the Treatment of Cultural Landscapes (most recent version), hereinafter referred to as the “Secretary’s Standards.” In these, key factors that contribute to the nature of a cultural landscape are:

Spatial organization and land patterns

Topography

Vegetation

Circulation

Water features, and,

Structures, furnishings and objects

Important steps when considering development in a cultural landscape and how it might be affected in these general categories are:

Identify existing historic features and materials

Protect and maintain historic features and materials

Repair or replace deteriorated historic materials and features

Design for the replacement of missing historic features and alterations/additions for new use(s)

Consideration is also given to accessibility, health and safety, environmental quality, and energy efficiency.

All proposed construction must meet or exceed all applicable local, state, and federal standards in addition to conforming with CPC rules and being approved by the Capitol Planning Commission. Site plans must be prepared by a registered professional possessing design, planning, and technical expertise, such as a licensed landscape architect, or similarly qualified individual.

(1) Pedestrian Access

Issues of accessibility shall be addressed as required by the Americans with Disabilities Act (ADA).

(2) Walks and Curbs

Sidewalks shall be a minimum of 6 feet in width, or the minimum allowed by ADA, and a maximum of 8 feet. Vertical granite curbing shall line roadway edges. Where buildings come up to the property line (0 setback), the walk may abut the building face, providing opportunity for more of a public gathering space and/or provision of site furnishings. Acceptable walk materials include:

West Campus Standard: cast-in-place concrete with joints placed to accentuate and respond to surrounding elements.

West Campus Special: precast concrete pavers (8-inch x 8-inch on bituminous pavement or other structural base; running bond pattern perpendicular to axis of primary pedestrian flow) in mixed gray tones, with granite edging (4-inch x 12-inch – vertical and flush with the paving surface) defining the inside edge unless building faces do so.

West Campus Accent: granite accent paving should be used to emphasize areas of special interest or importance.

East Campus: where the landscape is more open, in the ECZ and AZ zones, bituminous pavement shall be used. As the scale becomes tighter in the Municipal and East Campus zones, cast-in-place concrete shall be used.

Sidewalks and curbs meeting these standards shall be provided on all public streets within the applicable zones.

(3) Site Lighting (exceptions: ARZ, ECZ)

Lighting fixtures shall be consistent with the Capitol Area standard, and shall be especially oriented and sized to be compatible with a pedestrian-oriented environment. Lighting fixtures for different functions shall come from the same family or be judged by the Commission or its advisors to be functionally and aesthetically compatible. Roadway and parking area lighting shall be from the same family as pedestrian-oriented lighting while meeting local illumination and safety requirements, or guidelines established by the Illumination Engineering Society of North America (IESNA).

Rule:

In general, the Capitol Area standard shall be the “single-acorn” style fixture currently in use on the East Campus roadways. Special emphasis shall be placed on the Connector Overlays (portions of State, Capitol, Hospital and Union Streets), where the “double-acorn” style fixture shall be used, consistent with the City of Augusta’s emphasis in the downtown area and on east Capitol Street along Capitol Park.

(4) Planting (exceptions: ARZ, ECZ)

Street tree planting shall be implemented utilizing species that are well adapted to survive and thrive in the urban environment. Special attention shall be paid to tree planting in paved areas to insure that adequate soil mix, water, and air are made available to foster healthy tree growth and reduce the need for replacement. Plant materials shall be vigorous, healthy, and well developed, typical of their species and kind. The largest materials shall be employed to the greatest extent possible to promote a more dignified and mature landscape. Plant sizes shall be a minimum of (proportions to be per American Association of Nurserymen Standards, latest edition):

Large Deciduous Trees: 4-inch caliper

Small Flowering Trees: 1 ¾” – 2” caliper

Evergreen Trees: 8’ – 10’ height

Large Shrubs: 3’ – 4’ height

Small Shrubs: 18”-24” spread

Groundcovers: #2 container

Other site landscaping such as screening or buffering at service functions, parking lots and side setbacks shall be in accordance with City requirements.

(5) Utilities

New telephone, lighting and power, cable TV, internet, and other wiring and cabling shall be installed underground at all locations. Where existing overhead utilities are present, they shall be placed underground whenever feasible. Road reconstruction projects and major utility replacement projects should include placement of overhead utilities underground.

(6) Site Furnishings (exceptions: ARZ, ECZ)

A palette of site elements, including benches, bollards, flags and banners, drinking fountains, trash receptacles, bicycle racks, etc., is maintained by the CPC. These items shall be employed to provide added interest, design consistency, protection, convenience, and comfort as needed and appropriate.

D. Arsenal Zone (ARZ)

(1) New Construction Design Standards

The New Construction Design Standards that follow shall apply to new development proposed for the Development and Limited Development areas.

(a) Context

New buildings shall be of their own time, obviously new and with no attempt to adopt a period appearance or otherwise duplicate the historic buildings of the Arsenal. At the same time, new buildings shall be designed to be compatible with these historic buildings and structures.

(b) Scale and Massing

The mass and scale of new buildings shall be compatible with the mass and scale of the existing historic buildings of the Arsenal.

(c) Building Height

Building height shall not exceed five stories in the Development Zone (with the intent that new development shall not exceed the height of Old Max). Building height shall not exceed three stories in the Limited Development Zone. In no case shall the building be less than two stories above grade at the façade. Architectural elements such as towers, cupolas, etc., may exceed the building height requirement.

(d) Rooftop Equipment

Roofs shall be designed to avoid the visibility of accessory roof structures and equipment penthouses normally built above the roof. Mechanical equipment, whether on the roof or elsewhere on the building, or on the ground, shall be screened from view within the site and from the West and East campuses by architectural or landscape elements.

(e) Outbuildings and Support Structures

Outbuildings and support structures shall be constructed of the same materials used for the primary building. Brick and architectural metals will be considered by the CPC for limited applications.

(f) Buffering

New buildings abutting other zones shall be buffered from adjacent buildings.

(g) Pedestrian Environment

New development shall facilitate pedestrian movement within the zone and minimize the impact of vehicles within the zone. New development planning shall also consider movement and access between buildings and throughout the Arsenal Complex.

(h) Views

New development shall offer opportunities for public views of the State House, Capitol Park, the river, the Arsenal buildings and grounds, and the East Campus.

(i) Amenities

New development shall offer opportunities for public amenities such as viewpoints or sheltered areas, interpretive displays, or visitor facilities.

(2) New Site Development Design Standards

The following standards focus on site design and construction associated with new development efforts in the Kennebec Arsenal zone.

(a) Vehicular Access and Parking

Existing parking in the parking and service area shall be buffered with vegetative screening from views to it from the west and east, minimizing its visual impact on the site.

Road widths shall be kept to a minimum. Materials in keeping with the historic resource shall be considered whenever possible. Curbing, if needed, shall be granite, but kept to a minimum as it sets a more urban tone than would originally have existed. Alternate methods of stormwater direction or pedestrian-vehicular separation shall be investigated. Additional parking and vehicle circulation if required shall be sited so as to minimize their visual impact on immediately adjoining and distant vantage points. Emergency and/or service access to the historic wharf area, if required, shall balance the requirements of modern vehicles with use of historically appropriate materials and surfacing treatments.

(b) Pedestrian Access

Pedestrian access shall be enhanced and provided for from point to point within the site, and in links from the site to the city and East Campus beyond.

The placement of sidewalks or paths within the Arsenal Zone shall be carefully considered. Research to determine the location of original sidewalks and paths shall be undertaken to determine appropriate locations for pedestrian access routes. Only the most heavily traveled routes shall be designated for improvement. Otherwise, lawns shall be strengthened with grass varieties that can support pedestrian use.

(c) Earthwork

New development shall be positioned to minimize earth movement to the greatest extent practicable.

(d) Vegetation

Planting in and around the core shall be minimal, leaving views to the west largely open. Shrub planting in the core may be installed adjacent to non-river facing areas, but only as approved. Screen planting shall be installed to block views of the parking and service area and other auxiliary functions throughout the site.

(e) Site Elements and Furnishings

New site furnishings shall be contextually appropriate and in accordance with the Secretary’s Standards. Similarly, site signage shall be kept to a minimum for wayfinding, building identification, and interpretation. A comprehensive signage and graphics approach shall be employed that is sensitive to the historical resource.

(f) Lighting

New site lighting shall be compatible with adjoining city and campus systems, promoting integration into the surroundings, providing adequate and safe levels of light for its users. Light fixtures in parking and new development areas shall minimize direct glare and skyward oriented light pollution (low or full cut-off photometrics). Fixture styling shall be appropriate for the development and historic context. Bulb type (high pressure sodium, incandescent, metal halide) shall be consistent throughout the Arsenal. Architectural accent lighting may be allowed on an individual building basis subject to approval and in accordance with the Secretary’s Standards.

(g) Historic Site Features

Care must be taken to maintain the historical resources of the extensive remaining granite base and wrought iron fence defining the Arsenal boundary, the wharf, the granite gate posts at the northern entry, the large powder magazine, the small magazine, the parade ground, and the historic buildings and grounds themselves.

(h) Utilities

Sufficient storm, sanitary sewer, and water services exist within a relatively short distance from the Arsenal site. New transformers and other aboveground communications or power related equipment shall be adequately screened with architectural screens or planting. Stormwater management and control shall take place underground throughout the site (mandatory below Arsenal Street) to minimize introduction of excessive earthwork or control structures and ponds. Effort shall be made to foster positive drainage by sheet flow into existing vegetative areas, maximizing their natural buffering capacity in accordance with state stormwater requirements.

E. Capitol Complex Historic Zone (CCHZ)

(1) New Construction Design Standards

(a) Context

Because any new structures that might be constructed in the CCHZ must be closely related to the existing historic buildings in the district, physically, visually and functionally, such construction must be designed to be compatible with the historic buildings and landscapes of the Capitol Complex Historic District.

(b) Roofs

Roof shall be compatible with adjacent buildings in forms and materials. Skylights are not permitted on roof surfaces visible from a public way or from the State House or the Blaine House or their associated grounds unless historically accurate.

(c) Rooftop Equipment

No rooftop mechanical equipment will be allowed in this zone. Mechanical equipment shall be located on the ground and shall be screened from view by architectural or landscape elements. Elevator overruns shall be accommodated within the building unless a penthouse design is reviewed and approved by the CPC.

(d) Building Height

Building height shall not exceed that of the lowest immediately adjacent structure. No new architectural elements such as towers, cupolas, etc., that would visually compete with existing historic structures, are permitted within this zone. In no case shall building height exceed six stories (90 feet maximum) or the height of the base of the State House dome.

Rules:

New construction shall not alter historic relationships between buildings or settings of the Historic District.

No historic buildings, building features, or landscape features shall be removed as a result of a new construction project within the CCHZ.

If any of the existing historic buildings within this zone are destroyed, State Development Zone design standards and guidelines will apply to new replacement construction.

(2) New Site Development

The landscapes of the CCHZ and the SHCPZ that abuts it feature broad lawns, mature trees, and site structures such as fences and walls. In most cases these elements are historic features or are modern construction that was designed to be compatible with the architectural and landscape resources of the historic district. These are the characteristics of the Blaine House and State House grounds, and to a lesser extent of the other residential properties on State Street. The site design standards are designed to protect and enhance these elements.

However, the CCHZ also features large expanses of paved and unpaved parking lots, and there are additional lots in other zones that directly abut the CCHZ. The new site development standards are intended to foster the improvement of these areas, either through redesign and additional landscaping of the lots, or through appropriate site development if any of these lots are replaced by new construction.

F. East Campus Zone (ECZ)

(1) New Construction Design Standards

The following standards focus on positive aspects of the historic architecture of the East Campus to provide direction for contemporary designers and are provided for each of the areas identified above. They are offered to assure that the core former AMHI buildings are preserved and re-used, while promoting the concept of the potential expansion of some of these buildings and the construction of new buildings within the historic campus context according to well-established design principles.

In general, the designers of new buildings and additions in the AMHI and Campus Service areas on the East Campus shall take into consideration the character-defining elements of the original buildings, using them selectively to help integrate the new buildings into the historic setting and to unify the former AMHI campus.

Those responsible for the design of new buildings within the East Campus Zone are required to meet these standards.

(a) Outbuildings and Support Structures

Outbuildings and support structures shall be constructed of the same materials used for the primary building. Brick and architectural metals will be considered by the CPC for limited applications.

(b) Buffering

New buildings abutting other zones shall be buffered from or be compatible with adjacent buildings.

(c) Views

New development shall offer opportunities for public views of the State House, Capitol Park, the river, the Arsenal buildings and grounds, and other East Campus buildings and landscapes.

(d) Amenities

New development shall offer opportunities for public amenities.

(e) AMHI and Campus Service Areas Design Standards

(i) Scale, Height and Massing

Buildings shall be horizontal in orientation, consistent with the river axis and the grain of the land. Larger structures shall be broken by vertical elements on the facades and perpendicular projections to the rear, similar to those found on the existing historic buildings. The height of a new building shall not exceed that of buildings directly adjacent, nor applicable City of Augusta zoning requirements. Maximum building height shall be five stories. Minimum building height shall be two stories.

(ii) Façade Composition

Façades shall follow the traditional compositional framework of base, middle and top. Finish wall materials shall extend to or below grade.

(iii) Roofs

Roofs shall be sloped, in either hipped or gable form. If gable forms are used, end wall parapets shall be utilized, and mid-building parapets may be provided if the length of the building is such that vertical divisions are used. Roof materials shall be non-reflective. Slate or dark asphalt shingles are appropriate. Non-glare metal roofing such as copper, lead-coated copper, or terne metal standing seam roofing may be appropriate. Roof forms can be animated through the use of turrets, chimneys, cupolas, ventilators, or other elements similar to those found on the existing buildings. Skylights shall be permitted at the discretion of the CPC.

(iv) Fenestration

Façades shall contain vertically-oriented windows or window groups recessed within, rather than flush with, the exterior walls. Windows may be larger than those found on the existing buildings but there shall still be sufficient solid wall material to reflect the strength and simplicity of the wall construction of the original buildings. Wall planes shall appear predominantly solid. Large expanses of glass shall be used judiciously.

(v) Entrances

Main and secondary entrances shall be prominently defined.

(vi) Wall Materials

Primary and secondary wall materials shall harmonize with the color, texture, scale and reflectivity of the AMHI buildings. Stone, brick, cast-in-place concrete, precast concrete, cast stone, and glass, in wooden or metal frames, are the most appropriate materials. Appendages may be of other high-quality materials found in the complex such as historical metals (iron, steel, copper, lead), or wood, in addition to the primary and secondary wall materials.

(vii) Trim and Decorative Elements

Trim elements and linear components such as water courses, belt and string courses and cornices, may be used to contribute interest and to the predominantly horizontal lines of building elevations.

(viii) Outbuildings and Supporting Structures

Outbuildings and support structures shall be constructed of materials as outlined above and located as addressed in the site construction standards. Screens for trash collection areas, etc., shall be of permanent construction, coordinated with adjacent buildings and of the same quality of materials (for example, screen walls in the core shall be constructed of brick with precast or stone caps; wooden fences of any kind are not permitted).

(ix) Rooftop Equipment

Rooftop equipment and elevator penthouses shall be avoided if possible. Roofs shall be designed to minimize the visibility of accessory roof structures and equipment penthouses normally built above the roof. Mechanical equipment, whether on the roof, elsewhere on the building, or on the ground, shall be screened from view within the site and from the West and East campuses by architectural and/or landscape elements.

(x) Adaptability and Phasing

New buildings shall be designed to adapt to changing functional and operational requirements over the life of the structure. The first phase of a multi-phased building, and each phase thereafter, shall result in a building that looks like and functions as a complete building.

(xi) Image

New buildings shall be distinguished, as appropriate for the seat of State Government, reflecting the history of the institution of State Government in the State of Maine.

(xii) Pedestrian Environment

New development shall facilitate pedestrian movement and minimize the impact of vehicles within the zone. New development planning shall also consider movement and access between buildings and throughout the Arsenal and East Campus zones.

(f) Riverview Area Design Standards

(i) Scale, Height and Massing

Any new construction in the Riverview Area shall be directly related to the existing Psychiatric Treatment Hospital. If an addition is to be constructed, it shall be designed to refer to adjacent construction in scale, height and massing. If a free-standing building is to be located elsewhere on the site, the new structure shall be no higher than the existing building, and shall be designed in plan and elevation to include elements of similar scale. Orientation shall be aligned with the adjacent components of Riverview. Any new construction shall not project toward the Kennebec River beyond a line representing the setback of the former AMHI warehouse/coal pocket complex.

(ii) Proportion

Whether an addition or a free-standing building, new construction in this precinct shall reflect the proportions of the existing building and its sub-components.

(iii) Fenestration

The window and door patterns and trim of the existing Riverview facility are major elements of its design. New construction in this zone shall be similar to the main building in these respects.

(iv) Entries

The existing building has several different types of entries, from major public entrances to secure patient, staff and service locations. Any new construction will likely present a similar variety of special entrance issues, but public entries shall be similar to that of Riverview, i.e. obvious as to location, and presenting a welcoming yet dignified and secure image to visitors. Staff entrances shall be friendly, and service entrances hidden from public view.

(v) Symmetry

Due to the many specialized program areas within its walls, Riverview is asymmetrical. The exterior design of free-standing new buildings shall reflect their plans and programs in similar fashion.

(vi) Materials and Color

The color and material palette of the existing facility is varied and offers the designer of new construction within this precinct considerable latitude for design expression.

(vii) Roofs

Roofs shall be similar in form and materials to those of the Riverview facility. Roof materials shall be non-reflective. Skylights shall be permitted at the discretion of the CPC.

(viii) Pedestrian Environment

New development planning shall also consider movement and access between buildings and throughout the East Campus and Campbell Barn zones.

(g) Public Safety Area Design Standards

(i) Scale, Height and Massing

A new free-standing building of two or three stories (the exact height would have to be confirmed according to City zoning requirements) with its mass close to and extending along Hospital Street would form a strong gateway to the northern corner of the East Campus and relate to the busy street. The scale of the principle façade shall relate to the street environment while helping to establish a friendly pedestrian environment that will link the neighborhoods to the north with the Open Space Area and the remainder of the Campus. Thus even though the main building entrance will be on the west elevation (as parking will be located behind the building), a major pedestrian entrance shall be provided on the Hospital Street side to provide a human scale. The building can be linear in nature along the street, but shall be broken into two or more elements to relate the mass of the building to the neighborhood context.

An addition to either the Crime Lab or the Medical Examiner’s Building shall adhere to the design vocabulary of the existing building in terms of height, scale and massing. The design should also take into account proximity to the Large Powder Magazine if new construction is to be considered proximate to this historic structure. This means low height and small scale, with footprints necessarily being relatively small because of the amount of land available after parking is provided per City ordinance. The low height will allow an addition to the Medical Examiner’s Building to present a minimal face to the Arsenal Zone and to views from across the river.

(ii) Proportion

Proportions of major elements of a significant new building on this site shall relate to the surrounding structures. Windows and doors shall be proportioned to relate to pedestrians walking past and using the building, and to the buildings of the AMHI Area. Classical proportions appropriate for use on institutional buildings may be referenced.

(iii) Fenestration

The designer has considerable latitude in this precinct for door and window sizes, types and placement. The new building may be quite transparent, but shall have enough wall mass to complement the nearby historic structures of the AMHI Area and the Arsenal Zone. Punched windows or window groupings are preferred, but some high-quality curtain walls, using materials identified elsewhere in these standards, would be appropriate. Glare that could affect residential neighborhoods to the north and east and the West Campus shall be minimized.

Doors and windows of additions to the two buildings to remain shall harmonize with those of the existing buildings.

(iv) Entries

Major entrances at the new building shall be provided to access both the interior site parking lot and Hospital Street. Entrances for additions to the two newer buildings shall harmonize with existing entrances and face the main parking lot.

(v) Symmetry

There is no precedent for symmetry within the Public Safety Area context, so the designer is free to explore varied approaches to resolving programming, plan and elevation issues.

(vi) Color and Materials

The two existing buildings to remain in the precinct are red brick with stone or precast trim, some metal wall panels, and metal-framed windows. Major new buildings constructed for Maine State Government shall be 100-year buildings presenting a dignified yet welcoming image. The material palette for a proposed new building shall include brick, stone, high-quality architectural metals, and non-reflective glazing in metal frames. Colors shall be limited to those of the natural materials and restrained, coordinating colors on painted elements.

Materials and colors of additions to the two remaining buildings shall match those of the existing structures.

(vii) Roofs

Roofs shall be similar in form and materials to those of the existing buildings in this area and/or to those of the adjacent Arsenal Zone buildings, i.e. gable or hipped. Roof materials shall be non-reflective. Skylights shall be permitted at the discretion of the CPC.

(viii) Pedestrian Environment

New development planning shall also consider movement and access between buildings and to and from the East Campus and Arsenal zones.

(h) Campbell Barn Area Design Standards

(i) Scale, Height and Massing

As there is only one likely site for a free-standing new building within this precinct, and the two existing buildings, the Campbell Barn and the Farm Manager’s House, strongly reflect the agricultural history of the former AMHI, any new buildings shall continue this historical theme by using scale, height and massing to recall previously-existing groupings of agricultural buildings. Any new free-standing building shall be of smaller mass than the barn, and lesser height and smaller scale to allow the barn to remain the dominant structure within the precinct. Simple rectangular forms would be most appropriate, with gable or gambrel roofs. A wide variety of agricultural structures of varying scale existed nearby on the AMHI campus for most of the institution’s existence. Photographic evidence is available which could guide the designer toward appropriate shapes and sizes of buildings for this precinct.

Additions to either building shall be subservient to the original main structure. In the case of the Farm Manager’s House, the traditional Maine “big house, little house, back house” approach shall be followed. As for the barn, the mass and scale of this building, and the availability of precedents, are such that additions shall be relatively small, but there could be several and they could be varied.

(ii) Proportion

The proportions of the farm house are easily documented and utilized for additions. Windows and doors and dimensions of the different parts of the composition, are human in scale and shall be replicated in any addition.

The proportions of the Campbell Barn are related to the original use. Consequently, everything, with the exception of the windows, is big. The stone and wood surfaces of the barn and the main barn doors are quite large; thus the windows and pedestrian doors appear very small, even in proportion to residential windows and doors. New additions designed for human habitation, rather than animal habitation and the storage of feed, may incorporate more human-proportioned windows and doors. Eave heights and other major features of new construction shall strike a balance between remaining secondary to the barn and maintaining a human scale.

Proportions of new construction shall find the same balance between simple forms and large wall planes with small windows and doors, and significant amounts of glazing and design emphasis at appropriate locations such as entrances and public spaces within the overall composition.

(iii) Fenestration

Windows and doors in new construction shall reflect agricultural antecedents as found on the Campbell Barn or in photos of AMHI farm buildings no longer standing for most wall surfaces, with accents and emphasis at entrances and other special places created through the use of more extensive glazing.

(iv) Entries

Entries shall follow agricultural precedents, providing the designer with many possible avenues. For example, many barns on Maine farms exhibited large doors with transoms at gable ends (in contrast with the Campbell Barn, which has no doors in the gable ends). Thus a new building in the form of a smaller, gable- or gambrel-roofed barn could have relatively solid side walls with small windows and doors, with an amply-glazed entrance wall on one or both of the gable ends.

(v) Symmetry

Neither existing building in the precinct is symmetrical, although the form of the Campbell Barn is very “regular.” Precedents can be found for symmetrical or asymmetrical facades and elevations on a variety of agricultural buildings. Thus the designer shall be free to develop a form that is appropriate for its use and its exact location within the precinct.

(vi) Color and Materials

The Farm Manager’s House is constructed of brick, with windows which may be wood or clad. The barn features clapboard siding, slate roof, and wood windows and doors. A new building shall be clad in brick or wood clapboard depending on its use and location within the precinct. The designer shall determine the original colors or continue using the existing color palette, which is appropriate for the historic or new buildings.

The roof of a new building could appropriately be covered with slate shingles, asphalt shingles, or standing seam metal (in a neutral, low-reflectance, color). Windows in new construction shall be wood or clad; doors shall be wood.

(vii) Pedestrian Environment

New development planning shall also consider movement and access between buildings and to and from the AMHI and Riverview areas.

(viii) Views

New development shall offer opportunities for public views of the State House, Capitol Park, the river, and the AMHI Area buildings and landscapes.

(i) Open Space Areas Standards for New Construction

The only Open Space area where new construction is permitted is the Open Parkland Area. Consequently these standards apply only to that area.

(i) Scale, Height and Massing

New structures shall be human-scaled, low in height and of minimal mass to be secondary to the landscape.

(ii) Proportion

Eaves shall be low, overhangs shall be wide, and roof pitches shall be relatively shallow to shelter visitors and occupants and, again, to allow the emphasis to be placed on the landscape. Window and door proportions shall be appropriate for the intended purpose of the structure. A flat roof may be considered only if it is to be a green roof.

(iii) Fenestration

Depending on the use of the building, doors and windows shall be human-scaled and welcoming. Where appropriate, large amounts of glass shall provide views from a sheltered environment to the surrounding open spaces (such an approach would obviously not be appropriate for a comfort station, where an elegantly-detailed wood clapboard or masonry wall with small, frosted, multi-light windows would be a desirable fenestration solution). Doors shall be easy to find but blended into the wall design. Service buildings shall be just as carefully considered as buildings for human occupancy. Equipment doors shall be of the same material and level of detailing as pedestrian doors.

(iv) Entries

Entrances shall be readily-discernable, but well-integrated into the overall design of the building so as not to call unnecessary attention to themselves at the expense of the surrounding environment.

(v) Symmetry

As there are no existing buildings within the area to use as context (except for the visitor’s center in the Arboretum), symmetry need not be a concern unless placement on the site (for example, at the head of a major walkway or landscape feature) demands a classically-derived solution. In that case, a symmetrical building may be the most appropriate approach.

(vi) Color and Materials

Colors and materials shall be derived from nature’s palette. Colors shall be earth tones with some subdued accent colors possible. Materials shall be wood, brick or stone with high-quality architectural metals such as copper, bronze, brass, or in some cases aluminum as accents. Roofs shall be clad with standing seam copper or lead-coated copper, galvanized metal (in low-gloss earth-tones or pre-weathered natural finish); slate; wood shingles; or architectural asphalt shingles. Windows and doors shall be wood, metal-clad wood, appropriately-finished colored aluminum, or painted steel.

(vii) Signage

Signage shall also be in accordance with a CPC-approved overall landscape and signage plan for the proposed memorial park.

(viii) Pedestrian Environment

New development planning shall also consider movement and access between buildings and to and from the East Campus and Arsenal zones.

(2) New Site Development Design Standards

The following standards focus on site design and construction associated with redevelopment and new development on the East Campus under the auspices of the Capitol Planning Commission.

These standards are intended to provide an approach for site construction and improvement, creating a consistent level of high quality development that respects and unifies the diversity of the campus.

(a) Vehicular Access and Parking

Drives and roads shall be kept to the minimum width required for safe and efficient vehicle, service, and emergency access. Granite curbing shall be used where pedestrian walks must be located directly adjacent to drives, and at intersections. Provisions shall be made for bicycle traffic through use of dedicated bike lanes, or widened paved shoulders where wider pavement would not negatively impact the historic character of the area. Pedestrian crosswalks with appropriate signage shall be provided at intersections, or where through-site pedestrian paths cross. Surface parking facilities shall contain breaks or islands for landscaping and direction of flows.

(b) Pedestrian access

Pedestrian access shall be facilitated and enhanced throughout the East Campus, providing safe and efficient access between buildings and parking, between areas, and to the surrounding city via links to existing municipal walks, open spaces, and recreational trails. In all instances, walkway design and connections shall be in accordance with applicable standards and guidelines, and as required by the Americans with Disabilities Act (ADA). Modern materials are acceptable, subject to CPC approval. All proposed materials in the AMHI Area shall be sensitive to the historical context in accordance with the Secretary’s Standards.

(c) Topography

New development shall be positioned to minimize earth movement to the greatest extent practicable by working with, not against, existing grades and landforms.

(d) Vegetation

Planting shall reinforce and enhance the exterior environment, and serve to guide circulation, highlight important areas, guide or screen views, and provide visual relief in heavily developed areas. Invasive non-native species shall be avoided and native plants shall be used whenever possible. Mono-cultural planting, especially of street trees, shall be avoided, and a gradual transition from the more highly maintained to the more natural landscape shall be created.

(e) Site Furnishings

A palette of site furnishings shall be chosen that works with the site context and is in accordance with the Secretary’s Standards in the core AMHI precinct.

(f) Lighting

New site lighting shall be compatible with existing Arsenal Street lighting and the Capitol Area standard, promoting integration into the surroundings, and providing adequate and safe levels of light for its users. Light fixtures in parking and new development areas shall minimize direct glare and skyward oriented light pollution (low or full cut-off photometrics). Fixture styling shall be appropriate for the development and historic context. Bulb type (high pressure sodium, incandescent, metal halide) shall be consistent throughout the East Campus.

Buildings and signs shall be lit with external hidden or shielded lighting fixtures to wash the sign or building surface. Recessed step or wall lights or low-level walkway lights shall be used to provide security illumination where required. Building-mounted wall pack lighting shall be avoided.

(g) Utilities

New transformers and other aboveground communications or power related equipment shall be adequately screened with architectural screens or landscape planting. Underground vaults are strongly encouraged for these items to minimize visual impact. Sufficient storm, sanitary sewer, and water services exist within the site. Stormwater management and control shall take place underground throughout the site (mandatory below Arsenal Street) to the greatest extent practical to avoid introduction of excessive earthwork or control structures/ponds. Effort shall be made to foster positive drainage by sheet flow into existing vegetative areas, maximizing their natural buffering capacity in accordance with state stormwater requirements.

(h) Standards for Specific East Campus Areas

(i) AMHI Area

Preserve and maintain the historic landscape character in and around buildings. Preserve the open lawn between the Ray Building and Hospital Street. Preserve and, if possible, restore original landscape elements in the original front lawn between the Stone Building and Arsenal Street. Maintain and enhance pedestrian access in and around the buildings, and to adjoining precincts. This includes facilitation of pedestrian linkages available for public use between the Kennebec Greenway at river’s edge, through the campus, and into the Arboretum and municipal recreation resources to the east. Locate the parking so as to maintain major north-south campus walkway between the Stone Building and the Male and Female Pavilions to the Open Space. Screen or conceal modern service functions and components using architecturally compatible forms and materials. Trash and recycling containers, loading docks, and utility equipment shall be located in areas hidden or away from primary pedestrian and vehicular circulation routes. Accommodations for vehicles shall be kept principally outside the area except for the minimum spaces required for temporary visitor, handicapped, service, and emergency access needs.

(ii) Campus Services Area

Redevelopment, consisting primarily of utilitarian functions, shall be compatible with and sensitive to the adjacent historic AMHI area. The area shall be appropriately screened and otherwise visually integrated into the landscape to minimize jarring visual impact to views from the north and east. The existing “front lawn” between the historic AMHI buildings and Hospital Street shall be reclaimed in this area, tying the campus frontage together visually, and providing a green linkage to adjoining open spaces.

(iii) Campbell Barn Area

Promote and insure development that is compatible and supportive of the high visibility location. The Campbell Barn could be redeveloped as a conference/training facility. While such a facility would be available to all of State Government, and perhaps to the public and to private sector groups, the most frequent users would likely be occupants of East Campus facilities. Therefore, promote pedestrian connections between it and these adjacent structures. Provide appropriate screening of adjoining parking areas.

(iv) Riverview Area

New development shall be compatible with and reflect the design and quality standards of the AMHI area and existing Riverview development, as well as the mission of the Riverview facility. Maintain and promote pedestrian linkages with adjoining precincts and open spaces as appropriate and within the necessary limitations of the Riverview function. Site development shall enhance the role of the landscape surrounding the Riverview facility as a therapeutic environment.

(v) Public Safety Area

New building construction massing and form shall be compatible with the Arsenal as a whole, recognizing that this area forms the Arsenal’s upper visual boundary. New development shall respect the urban context and street environment within which it lies. This area forms the northern “gateway” to the eastern Capitol Area and, as such, introduces the visitor from the north to the state facilities. Promote efficient and safe pedestrian connections to the rest of the East Campus and the Arsenal. Lighting shall be designed to minimize glare and reflectance. Buffer new construction from the residential neighborhood to the north.

(vi) Open Space Area

Maintain and preserve existing landscape, visual, and environmental character.

Riverside Woodlands

Enhance pedestrian access and connections to neighboring areas.

Riverside Meadows

Limit landscape maintenance to periodic mowing to minimize a “manicured” appearance in favor of a more field-like one. Promote pedestrian access through the area from adjoining precincts to the Riverside Woodlands trail.

Open Parkland

Provide for appropriate site development (for significant memorials and monuments) for the East Campus, reflecting Capitol Park on the West Campus. Promote pedestrian circulation and movement within and connecting adjoining areas. Preserve and enhance views to the Arsenal, river, and the Capitol Complex.

G. Gateway Zones (NGZ, SGZ, WGZ)

(1) New Construction Design Standards

(a) Building Quality

Buildings shall reflect high quality design principles and shall be constructed of durable materials, components and systems to contribute to an attractive and appropriate approach to the State campuses.

(b) Context

New buildings shall be of their own time, obviously new and with no attempt to adopt a period appearance or otherwise duplicate the historic buildings of the State campuses. At the same time, new buildings shall be designed to be compatible with these buildings.

(c) Rooftop Equipment

Because all gateway zones incorporate viewsheds toward historic State-owned buildings, roofs shall be designed to minimize the visibility of accessory roof structures and equipment penthouses normally built above the roof. Mechanical equipment, whether on the roof, elsewhere on the building, or on the ground, shall be screened from view within the site and from adjacent zones by architectural or landscape elements.

(d) Building Height

Building height shall not exceed the height limits of City of Augusta municipal ordinances, except a maximum height of six stories (90 feet maximum) is permitted in the WGZ.

No part of any building within the North Gateway Zone, except for those at the northern end of the zone fronting on Memorial Circle or Memorial Drive, should be higher than the Blaine House cupola.

(e) Façade Orientation

The façades of new buildings should face the primary gateway streets.

(f) Buffers

New Gateway Zone buildings abutting residential districts within the Gateway zones and in adjacent zones shall be buffered from and be compatible with adjacent residential buildings.

(g) Neighborhood Character

In order to protect the character of adjacent neighborhoods, new development to be implemented on or near zone boundaries should recognize neighborhood character, views, established pedestrian and vehicular circulation patterns, historic resources, and activities as design parameters.

(h) Views

New buildings shall be sited so as to preserve views from major streets to the historic buildings of the State campuses. New development shall offer opportunities for public views of the significant and historic buildings and landscapes of the State campuses.

(i) Pedestrian Movement

New development shall facilitate pedestrian movement within the zone and minimize the impact of vehicles within the zone. New development shall also consider movement and access between the Gateway zones and adjacent zones.

H. Municipal Resource Zone (MRZ)

(1) New Construction Design Standards

(a) Context

New buildings shall be of their own time, obviously new and with no attempt to adopt a period appearance or otherwise duplicate the historic buildings of the East or West campuses. At the same time, new buildings shall be designed to be compatible with the historic buildings and structures that form the context of the two MRZ areas.

(b) Image

New buildings shall be distinguished, as appropriate for use by significant governmental agencies and other institutions.

(c) Building Height

Building height shall be per City of Augusta municipal ordinances. In no case shall the building be less than two stories above grade at the façade. Along the northern boundary of the MRZ adjacent to Capitol Park, maximum building height shall not exceed 3 stories (45 feet maximum from the highest point of grade around the building) or exceed that of the lowest immediately adjacent structure.

(d) Façade

The façades of buildings on Union Street or Hospital Street should face the street.

(e) Rooftop Equipment

Roofs shall be designed to minimize the visibility of accessory roof structures and equipment penthouses normally built above the roof. Mechanical equipment, whether on the roof, elsewhere on the building, or on the ground, shall be screened from view within the site and from the West and East campuses by architectural or landscape elements. Elevator penthouses and mechanical equipment located on the roof shall be as unobtrusive as possible.

(f) Pedestrian Movement

New development shall facilitate pedestrian movement and minimize the impact of vehicles within the Zone. New development planning shall also consider movement and access between buildings and throughout the East and West campuses.

(g) Views

New development shall offer opportunities for public views of the State House, Capitol Park, the river, the Arsenal buildings and grounds, and the East or West Campus as applicable.

(h) Public Amenities

New development shall offer opportunities for public amenities for employees, customers and visitors.

I. Residential Zone (RZ)

(1) New Construction Design Standards

(a) Building Height

Building height shall be in accordance with City zoning requirements.

(b) Building Massing and Scale

Building massing and scale shall reflect the vernacular residential character of surrounding buildings.

(c) Windows and Doors

Large expanses of glass shall be avoided in favor of window and door groupings with divisions to reduce the scale of glass surfaces and to minimize large reflecting surfaces.

(d) Decks

Deck levels and design shall be coordinated with adjacent buildings and shall be as simple in detail as possible.

(e) Roofs and Dormers

Dormers and roof shapes shall reflect the residential character of nearby structures. Mansard roofs shall not be permitted. Roof materials shall be non-reflective.

(f) Materials

Materials shall be residential in character.

(g) Service and Parking Areas

Where visible from across the river, service areas and parking areas shall be enclosed in construction matching the primary structure, or shall be screened using the same materials as used for the primary structure.

(h) Mechanical Equipment

Heating, ventilating and air conditioning equipment shall be screened with plant material or enclosed with construction matching the primary structure.

(2) New Site Development

(a) Applicability of Design Standards

Any proposed change in use or density within these areas or development impacting the Zone shall be subject to CPC review. Visual impact shall include consideration of views to and from the proposed development, as well as from surrounding buildings and sites. Impacts to the District may include, but are not limited to, changes to views to, from and within the District, and/or increases in traffic within the District.

Project review shall be based on the application of site development standards for zones abutting the Residential Zone area under consideration. In cases where the proposed development abuts more than one CPC district zone, the CPC shall determine which zone standards shall be used to evaluate proposed development. Where appropriate, more than one set of standards and may be applied.

Site construction or alterations not relating to a change of use or density and conforming to City ordinances shall not be subject to CPC review, except in the area of the Kennebec River Embankment. Site construction or alterations relating to a change of use or density shall be subject to City site plan review as well as CPC review.

(b) Overlay New Site Development Design Standards at the Kennebec River Embankment

Due to the high degree of visibility of the rear elevations of buildings on the east side of Gage Street within the Gage Street Area from the Arsenal, from the East Campus, from downtown Augusta, and from up and down the river, the CPC shall review proposed new site development that is visible from public ways in this area. The CPC shall use City zoning and site plan provisions as its review criteria, and in addition shall review primarily for site landscaping and screening of parking areas and mechanical located under or at the rear of proposed development.

(i) Screening of Parking Areas and Mechanical Equipment

Parking areas, garage entrances, and mechanical equipment such as air conditioning condenser units, where visible from a public way, including from the riverbanks in the Arsenal and East Campus areas, shall be screened from view by landscape materials and/or by architectural screens constructed of the same materials as the primary building.

J. State Development Zone (SDZ)

(1) New Buildings Design Standards

New buildings in the SD zone should be differentiated from adjacent older buildings and should be compatible with the character-defining features of historic neighboring buildings.

(a) Context

New buildings shall be of their own time, obviously new and with no attempt to adopt a period appearance or otherwise duplicate the historic buildings of the Capitol Complex Historic District. At the same time, new buildings shall be designed to be compatible with these historic buildings and structures.

(b) Image

New buildings shall be distinguished, as appropriate for the seat of State Government, reflecting the history of the institution of State Government in the State of Maine.

(c) Building Height

Building height shall not exceed 3 stories (45 feet maximum from highest point of grade around the building) or exceed that of the lowest immediately adjacent structure. Along Union Street, the reference to the lowest immediately adjacent structure does not include residential structures. Architectural elements such as towers, cupolas, etc., may exceed the allowable height with the approval of the CPC.

(d) Roofs and Rooftop Equipment

Roofs shall be designed to minimize the visibility of accessory roof structures and equipment penthouses normally built above the roof. Mechanical equipment, whether on the roof, elsewhere on the building, or on the ground, shall be screened from view within the site and from the West and East campuses by architectural or landscape elements.

Skylights are prohibited from all roof surfaces that face the Historic District.

(e) Buildings Facing Capitol Park

The primary façades of buildings on Capitol Street east of State Street or on Union Street should face Capitol Park.

(f) Building Environment

New construction shall result in a safe, healthy, productive, appropriate and functional environment for State employees, customers and visitors.

(g) Amenities

New development shall offer opportunities for public amenities for State employees, customers and visitors.

(h) Adaptability

New buildings shall be designed to adapt to changing functional and operational requirements over the life of the structure. The first phase of a multi-phased building, and each phase thereafter, shall result in a building that looks like and functions as a complete building.

(i) Pedestrian Environment

New development shall facilitate pedestrian movement within the zone and minimize the impact of vehicles within the zone. New development planning shall also consider movement and access between buildings and throughout the Capitol Complex.

(j) Views

New development shall offer opportunities for public views of the State House, Capitol Park, the river, the Arsenal buildings and grounds, and the East Campus.

(k) Buffering

New buildings abutting the residential portion of the Historic District (north of Capitol Street), or abutting residential zones, shall be buffered from or be compatible with adjacent residential buildings.

(l) Sensitivity to Neighborhoods

In order to protect neighborhood character, paths, views, pedestrian and vehicular circulation patterns, historic resources, and activities of the surrounding neighborhoods shall be recognized as design parameters for all facilities located on or near SD Zone boundaries.

(m) Outbuildings and Support Structures

Outbuildings and support structures shall be constructed of the same materials used for the primary building.

K. State House and Capitol Park Zone (SHCPZ)

(1) Introduction

The State House and Capitol Park Zone (SHCPZ) includes the Maine State House building and grounds, and the grounds and structures of Capitol Park. These resources are listed as contributing in the Capitol Complex Historic District.

(2) Applicability to Projects

Because the preservation of these buildings and grounds, and review and approval of any changes proposed to them are under the authority of the State House and Capitol Park Commission (SHCPC), which has dedicated legislation and rules for the review of any proposals in this regard, the SHCPZ is specifically excluded from the Capitol Area as defined in the Capitol Planning Commission Capitol Area Rules and Regulations, and these same Rules and Regulations do not apply within this Zone.

The CPC recognizes, however, that any developments in areas of the Capitol Complex Historic Zone adjacent to the SHCPZ, or in the SHCPZ itself, would be functionally and visually related and have an impact on each other. The CPC therefore recommends that developments that may affect both zones should be the subject of coordinated planning by the CPC and the SHCPC through an advisory joint review process, to allow members of either commission the opportunity to review and comment upon projects proposed for the SHCPZ.

L. Parking Structures

(1) New Parking Structures and Additions Design Standards

(a) Overlay Design Standards:

A proposed new parking structure, whether an addition or free-standing new construction, shall be designed according to the standards for the zone in which it is to be constructed. The application of these standards to parking structures shall be subject to modification according to the Design Guidelines for parking structures, which shall apply to a proposed parking structure in any zone.

The six possible parking structure sites are located in three different CPC zones:

State Development Zone:

DOT/Child Street site

Cross Building site

Existing Parking Deck site

Cultural Building site

Western Gateway Zone:

MDOT/Capitol Street site

East Campus Zone:

Core Campus/East Campus site

(2) New Site Development Design Standards

(a) Overlay Design Standards

A proposed new parking structure, whether an addition or free-standing new construction, shall be designed according to the standards for the zone in which it is to be constructed. The application of these standards to parking structures shall be subject to modification according to the Design Guidelines for parking structures, which shall apply to a proposed parking structure in any zone.

(b) Setbacks

A new parking deck should harmonize with the surrounding landscape environment and architectural context. An adequate setback should be maintained to allow the introduction of green space containing plantings to help soften, screen, and bring down to pedestrian scale, between new structures and existing or proposed pedestrian ways, driveways, or streets. The CPC shall determine the appropriate depths of such setbacks depending on the proposed site.

M. Capitol Hill Entry Plaza (Green Space)

(1) New Site Development Design Standards

All physical items incorporated into the Plaza as described below shall be of high quality and long-lasting manufacture, made with durable materials and finishes.

(a) Scale and Form

The Plaza area shall be stately and respectful of the important structures and functions that surround it. The form shall emphasize and support a unified connection in scale with its surroundings.

(b) Paving Materials

Use of special paving shall be employed to differentiate areas of special significance and importance, and to help define and separate vehicular and pedestrian dominated areas. Paving materials shall be consistent with the palette currently established in the Capitol Complex. Curbing, where required, shall be vertical granite, and limited principally to islands or other similar protected areas. Abrupt level changes shall be avoided in pedestrian areas, especially.

(c) Site Lighting

Lighting fixtures in the Plaza shall be consistent with those already approved for the Capitol Complex, and shall be especially oriented and sized to the pedestrian. A separate and distinct lighting style, currently established at the State House, shall be employed within the limits of the berm. Architectural accent lighting may be utilized to highlight and accentuate the three main buildings as appropriate, reinforcing their positions of civic importance.

(d) Planting

A variety of trees, shrubs, and annual and perennial groundcovers shall be utilized to accentuate and reinforce the Plaza design. Properly placed planting provides guidance, directs views, provides shade, and provides visual interest in what could be an otherwise harsh landscape.

9. Signs

A. Purpose

The purpose of the following standards is to protect the public health, safety, and welfare, and enhance the natural, historical, architectural and landscape environment of the area of the City of Augusta comprising the Capitol Area as defined elsewhere in these Capitol Area Rules and Regulations by ensuring signs that:

(1) Enhance the appearance and dignity of the campuses and environs of Maine State Government;

(2) Harmonize with the architectural style of the buildings or structures with which they are associated, and with the New England character of the City;

(3) Allow pedestrians, motorists, and cyclists to see one another clearly, to readily discern their destinations, to park their vehicles in appropriately-designated and designed areas, and to reach their destinations in a safe, convenient, pleasant, and timely fashion; and

(4) Pose no hazards to people or property.

B. Adoption of the City of Augusta Sign Regulations

The Capitol Planning Commission (CPC) hereby adopts by reference the City of Augusta Ordinances, entitled Sign Regulations, as the Sign Standards for the CPC Rules, applicable to all properties within the Capitol Area, except as amended, supplemented, or modified by the following provisions.

These Rules will always refer to the latest version of the City of Augusta Regulations Municipal Ordinance. However, the CPC reserves the right to review all proposed revisions to the Ordinance in whole or in part, and to make changes or revisions to any portion of the Ordinance to be applied in the Capitol Area in order to maintain the Purpose of these Rules. The Code Enforcement Officer (CEO) of the City of Augusta shall notify the CPC of all proposed revisions to the Ordinance, and shall forward proposed modified language to BGS for distribution to and review and comment by the CPC. The CPC shall have the opportunity to review and comment on these proposed modifications before a final action to adopt is implemented so that any changes proposed by the CPC, with consideration by the City, may be incorporated in the revised Ordinance.

C. General Standards

(1) Permit required: A sign or advertising device of any nature, except as allowed by these standards, may not be erected, assembled, affixed out of doors, or painted on the exterior of a building or structure, without a permit from the CEO of the City of Augusta following the provisions of the Ordinance and State Law. Before any permit is granted for a sign, plans and specifications shall be filed with the CEO showing the location, dimensions, materials, landscaping, and required details of construction, including loads, stresses, and anchorage.

(2) Review by the CPC: As a prerequisite to obtaining a sign permit from the CEO of the City of Augusta, applications for a sign permit in the following categories must reviewed for appropriateness and compliance with the standards of this section of the Rules by the CPC:

(a) any application filed by an agency of Maine State Government or an authorized agent or representative thereof

(b) any application filed by a private property owner within the State, Development, Gateway, or Arsenal zones of the Capitol Area

(c) any application filed by a property owner within any other zone of the Capitol Area when the subject property has frontage on Capitol Street, State Street, Union Street, Arsenal Street, Child Street, or Hospital Street.

(d) any municipal, county, regional, or federal governmental agency proposing to erect a sign within the Capitol Area.

(3) Application process: Applications falling within any one or more of these categories, after preliminary review and approval by the Augusta CEO, shall be forwarded by the CEO to the State of Maine Bureau of General Services (BGS), which shall submit the application to the CPC for review according to a process detailed in these Rules. If the application meets applicable requirements, a Certificate of Appropriateness will be issued by BGS on behalf of the CPC to the CEO. Receipt of the Certificate of Appropriateness will be a prerequisite to final approval of the applications and issuance of a permit by the City of Augusta CEO.

(4) Longevity of permits: Permits for signs within the Capitol Area shall be valid for five (5) years. When permits expire, another permit must be obtained and the sign must conform to existing requirements of these regulations and their amendments to receive a renewed permit.

(5) Materials: Materials such as corrugated plastic, bulbous plastic letters, non-textured plastic, and gloss tile are prohibited. Traditional, durable materials such as wood, stone, or architectural metals are encouraged. Concrete may be used with CPC approval. Sign materials should be compatible with those of the building to which the sign is to be attached.

(6) Clarity: Signs should be simple and use a minimal number of type faces or lettering styles in order to present a clear message.

(7) Colors: Multiple colors may be used but the color scheme must be respectful of the sign’s context (the landscape and neighboring buildings) and the colors of the building to which it is to be attached. The mounting fixtures for the sign may be a different, coordinated color. All colors must be approved by the CPC. In general, fewer colors are better, and the colors should be tasteful and coordinated with each other.

(8) Placement: New signs should respect the size, scale and design of buildings and/or landscapes with which they are associated. New signs should not obscure significant features of the buildings or landscape elements to which they are attached or relate.

(9) Existing signs, if determined to be of historic significance in their own right or to be a character-defining feature of a designated historic building or structure, or of a building or structure determined to be eligible for designation by the Maine Historic Preservation Commission, shall be retained and restored if necessary, unless the applicant can provide proof that to do so would compromise the public health, safety, and welfare.

D. Variations from the City of Augusta Sign Regulations

The following revisions, supplements, and alterations to the City of Augusta Sign Regulations, Article 5.1.17 of the Municipal Ordinances, apply to all applications for signs to be erected, assembled, affixed out-of-doors, or painted on the exterior of a building or structure that affect properties within the Capitol Area.

(1) With reference to (3), off-premises signs shall be prohibited.

(2) With reference to (4), internally-lit signs are prohibited.

(3) With reference to (4)(a)(ii)(D), neon lighting is prohibited within the State Development, State House, Arsenal, East Campus, Riverview, and Capitol Complex Historic District zones.

(4) With reference to (4)(a)(ii)(E), the CPC shall not permit any signage on private property that uses similar designs to those proposed by the State, unless the subject property is leased by a State agency, in which case signage shall be designed, fabricated and installed with review and approval by the CPC.

(5) With reference to (4)(a)(ii)(G), no signage shall be erected or maintained upon trees or painted or drawn on rocks or other natural features.

(6) With reference to (4)(b)(v), portable signs are prohibited.

(7) With reference to (4)(d), roof signs are prohibited.

(8) With reference to (4)(e), graphic displays shall be restricted to awning valances only.

(9) With reference to (4)(f), vehicular signs are prohibited.

(10) With reference to (4)(g), franchise signs are prohibited within the SD, SHCP, EC, Gateway, Arsenal, and CCHD zones.

(11) With reference to (5)(a)(i), public safety sign design and location within the CCHD, SD, SHCP, EC, Arsenal, Gateway, and Riverview zones must be reviewed by the CPC.

(12) With reference to (5)(a)(iii)(A), organization signs are prohibited within the SHCP, CCHD, SD, Arsenal, East Campus, Riverview, and Gateway zones.

(13) With reference to (5)(a)(iii)(B), real estate signs are prohibited within the SHCP, CCHD, SD, Gateway, Arsenal, East Campus, and Riverview zones.

(14) With reference to (5)(a)(iii)(D), temporary home sales signs are prohibited within the SHCP, CHD, SD, Arsenal, East Campus, Riverview, and Gateway zones.

(15) With reference to (5)(a)(iii)(E), political signs are prohibited within the SHCP, CCHD, SD, East Campus, and Riverview zones.

(16) With reference to (5)(a)(iv), signs identifying occupants of residential property are prohibited within the SHCP, CCHD, SD, Arsenal, East Campus, Riverview, and Gateway zones.

(17) With reference to (5)(a)(v), flags or insignia of any government within the SHCP, CCHD, SD, Arsenal, East Campus, Riverview, and Gateway zones shall be reviewed by the CPC.

(18) With reference to (5)(a)(vi), public notices within the SHCP, CCHD, SD, Arsenal, East Campus, Riverview, and Gateway zones shall be reviewed by the CPC.

(19) With reference to (5)(b)(ii, iii, and iv), institutional signs, directional signs, and directories proposed by State and local governmental agencies shall be located, designed and installed with review and approval by the CPC.

(20) With reference to (5)(b)(v), advertising and promotional signs are prohibited.

(21) With reference to (5)(b)(vii), signage approved by the CPC shall supersede this section of the Augusta Sign Regulations in the SHCP, CCHD, SD, EC, and Riverview zones.

(22) With reference to (5)(c)(iv)(A), projecting signs may be permitted if reviewed and approved by the CPC.

(23) With reference to (5)(c)(iv)(D), internally lit signs are prohibited in the Capitol Area.

E. State Facilities Signage and Wayfinding

Signs proposed for erection, assembly, affixing out of doors, or painted on the exterior of a building or structure within the Capitol Area by any agency of Maine State Government must be designed, fabricated, erected, installed, reviewed and approved by the CPC.

Signs for special government sites, parks and memorials may vary as described below.

F. Special Government Sites, Parks and Memorials

Large parcels of property within the Capitol Area owned by the State, County, Local, or Federal Government that are designed as special entities, such as parks or memorials, may incorporate signs based on unique signage and wayfinding plans that are integral with the landscape and/or architectural design of these entities, provided that such signage plans are reviewed and approved by the CPC. Signage and wayfinding plans shall be submitted to the CPC as part of the schematic, design development, and contract document packages during the design process.

New signs proposed for parks, memorials or sites after the initial installations are complete (i.e. subsequent installations) shall be designed, located and installed according to the standards of the original signage and wayfinding plan, preferably designed by the designer of the original installation, and shall be reviewed and approved by the CPC.

In no case shall standard State sign designs be used for subsequent signage on State-owned parcels, nor shall a sign protocol differing from the original designs be used unless proposed by the original sign designer and approved by the CPC.

Size, installation height, and quantity regulations for all signs in such areas shall be reviewed and approved by the CPC.

G. Privately-Owned Campuses

Large privately-owned parcels of property within the Capitol Area that are designed as special entities, such as an office park or a residential development (such as the Arsenal), may incorporate signs based on unique signage and wayfinding plans that are integral with the landscape and/or architectural design of these entities, provided that such signage plans are reviewed and approved by the CPC. Signage and wayfinding plans shall be submitted to the CPC as part of the schematic, design development, and contract document packages during the design process.

New signs proposed for such parcels after the initial installations are complete (i.e. subsequent installations) shall be designed, located and installed according to the standards of the original signage and wayfinding plan, preferably designed by the designer of the original installation, and shall be reviewed and approved by the CPC. In no case shall the standard State sign protocol be used for subsequent signage, nor shall a different sign protocol be used unless proposed by the original sign designer and approved by the CPC.

Size, installation height, and quantity regulations for all signs in such areas shall be reviewed and approved by the CPC.

H. Memorial Signs, Tablets and Plaques

Memorial signs, tablets or plaques containing the names of buildings, date of construction, or names of persons associated with the planning, design, funding and construction of a building, when cut into masonry surface or when constructed of bronze or other appropriate, durable, historically-appropriate materials shall be permitted in addition to other permitted signs, when reviewed and approved by the CPC. Such signs, plaques or tablets shall respect the size, scale and design of buildings, structures, site development and landscape component that represent the context of the proposed new element(s).

I. Applicability of CPC Rules

Title 23 M.R.S.A. sections 1091-1025 and City of Augusta Ordinances shall always apply where they impose more restrictive provisions than these regulations and to all circumstances not otherwise covered by these provisions.

10. Landscaping

Landscape planting shall be provided as specified within each zone. Other landscape requirements as defined by municipal ordinance, such as those for buffer yards, service screening, and parking lots, shall apply. All landscaped areas shall be preserved, protected, and maintained in good condition.

11. Parking

Parking areas shall be developed and constructed as specified within each zone and shall meet municipal ordinance standards and requirements for layout, size, and quantity.

12. Energy

Maine is dedicated to the mutually compatible goals of energy efficiency, environmental protection, and economic growth, and to providing its employees with healthy, safe, efficient and effective work environments. In addition, Maine is committed to meeting the goals and policies of the Energy Conservation in Buildings Act, 5 M.R.S.A. 1761 et. Seq. (“ECBA”), as applicable to State buildings, which promotes evaluation of life cycle costs and energy efficiency in the design of public improvements.

To this end, all State-owned, State-leased, or State-occupied buildings constructed, renovated, and/or expanded within the Capitol Area as defined in these Rules, shall be subject to An Order Regarding the Use of “LEED” Standards for State Buildings, issued as an Executive Order by John E. Baldacci, Governor, on November 24, 2003. The Executive Order excludes school administrative districts and municipalities from meeting these requirements.

The LEED Green Building Rating System is a voluntary, consensus-based, market-driven building rating system based on existing proven technology. It evaluates environmental performance from a whole building perspective over a building's life cycle, providing a definitive standard for what constitutes a "green building."

The Executive Order is incorporated in these Rules by reference.

Applicants proposing projects that are not to be State-owned, State-leased, or State-occupied, will be encouraged to meet energy efficiency and sustainability standards and principles as appropriate for the scale of the project being submitted.

13. Demolition

Demolition or removal of any existing building within the Capitol Complex Historic Zone (CCHZ), Arsenal Zone (ARZ), or East Campus Zone (ECZ), is prohibited without the express written approval of the Capitol Planning Commission.

The CPC shall direct the Maine Historic Preservation Commission to review and comment on any proposed demolition within these zones. The MHPC shall offer recommendations for mitigation.

The CPC shall only consider demolition if such demolition or removal is called for in the Augusta State Facilities Master Plan, and/or, in the case of a building or structure, if there is no feasible and prudent alternative for re-use, either as a stand alone building or as expanded. The CPC shall approve an application for demolition only after all other options for retaining and using the building or structure have been fully explored.

SECTION 6 – Land Use in Capitol Area

1. Arsenal, Capitol Complex, East Campus, Gateway, Municipal Resource, State Development, and State House & Capitol Park Zones

A. Purpose

To protect the integrity and majesty of the Maine State Capitol Building, Blaine House, and other State Buildings and functions, and to insure that only governmental and limited related and essential uses be permitted in this area, thereby providing a central and accessible complex of State government buildings, departments, and information centers for the Citizens of Maine.

B. Permitted Uses

Public, Quasi-Public, Institutional, Residential.

2. Residential Zone

A. Purpose

To provide for and protect the traditionally residential areas surrounding the Maine State Capitol and provide for home occupation or professional uses.

B. Permitted Uses

Residential and home occupation or professional uses. A home occupation or professional use is: accessory to a residential use and is customarily carried on in a dwelling unit or in a building or other structure accessory to a dwelling unit; carried on by a member of the family residing in the dwelling unit; clearly incidental and secondary to the use of the dwelling unit for residential purposes and conforms with the following conditions:

(1) The occupation or profession shall be carried on wholly within the principal building or within a building or other structure accessory thereto.

(2) Not more then two people outside the family shall be employed in the home occupation. There shall be no stock in trade.

(3) There shall be no exterior display, no exterior sign (except as expressly permitted by this regulation), no exterior storage of materials and no other exterior indication of the home occupation or variation from the residential character of the principal building.

(4) No nuisance, offensive noise, vibration, smoke, dust, odors, heat, glare, or electrical disturbance shall be generated.

(5) No traffic shall be generated by such home occupation in greater volumes than would normally be expected in the neighborhood.

(6) In addition to the off-street parking provided to meet the normal requirements of the dwelling, adequate off-street parking shall be provided for the vehicles of each employee and the vehicles of the maximum number of users the home occupation may attract during peak operating hours and otherwise in accordance with this regulation.

(7) The home occupation shall not utilize more than 30% of the total floor area of the dwelling unit, but not more than 500 square feet. A home occupation shall include, but not be limited to, the following:

Art Studio

Dressmaking Shop

Hairdressing Shop

Teaching or Tutoring Facilities

Office of a Physician, Dentist, Optometrist, Lawyer,

Engineer, Architect, or Accountant

Office of a Real Estate Broker or Agent

Office of an Insurance Agent or Broker

3. Prohibited Uses - All Zones

The following uses shall be prohibited: New and used car sales lots, or other sales of snowmobiles, boats or recreational equipment, sales of farm equipment or industrial equipment, pet or livestock stores, amusement centers, furniture stores, appliance stores, gasoline and/or automobile service stations, and all industrial, manufacturing and warehousing uses and all other uses not specifically permitted in either zone.

SECTION 7 – Variance & Appeals

1. Variance Application Procedure

A variance from the terms of these regulations shall not be granted by the Capitol Planning Commission unless and until a written application for a variance is submitted to the Commission and Bureau of General Services, containing:

A. Name, address and telephone number of applicants;

B. Legal description of the property; and

C. Description of variance requested.

2. Variance Standard

The Capitol Planning Commission, by 2/3 majority vote, may grant a variance only where strict application of the regulations, or a provision thereof, to the applicant and his property would cause undue hardship. The works "undue hardship" as used in this subsection mean:

A. That the land in question cannot yield a reasonable return unless a variance is granted;

B. That the need for a variance is due to the unique circumstances of the property and not to the general conditions in the neighborhood; and

C. That the granting of a variance will not alter the essential character of the locality.

3. Findings

A variance shall not be granted unless the Commission makes specific findings of fact based directly upon the particular evidence presented to it which support conclusions that the standards and conditions imposed by this section have been met by the applicant.

4. Appeal

Any person aggrieved by approval or disapproval of a project within the Capitol Area by the Capitol Planning Commission shall be entitled to judicial review thereof in the Superior Court.

5. Procedure

The appeal process is more specifically set forth in the Maine Administrative Procedure Act 5 M.R.S.A. §§ 11002-11008.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §298
• EFFECTIVE DATE: September 27, 1983
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED: July 10, 2007 – filing 2007-279
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

18-185 State Claims Commission

Chapter 110 Rules of Practice Governing Conduct of Adjudicatory Proceedings for Real Property Acquisition Cases

Code Me. R. 18-185 Ch. 110 Rules of Practice Governing the Conduct of Adjudicatory Proceedings for Real Property Acquisition Cases {#sec-18-185-ch.-110 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-185 Ch. 110}

SUMMARY: These rules of practice prescribe the manner in which proceedings are to be held in and before the State Claims Commission in Real Property Acquisition cases, including but not limited to requirements for notice, conferences, and discovery.

1. Scope and Applicability of Rules

These rules shall govern formal proceedings in and before the State Claims Commission as relates to real property acquisition cases, and, where so provided, informal proceedings, including conferences. “Real property acquisition cases” include, in addition to cases brought under Title 23 M.R.S. Section 154, cases brought pursuant to 23 M.R.S. Section 246(1) (relocation assistance) and cases brought pursuant to Title 23 M.R.S. Section 652. (change of grade and alleged damage to private water supplies.)

2. Practice Before the State Claims Commission

Any person may appear before the Commission in his or her own behalf, or by an attorney authorized to practice law in this State. In unusual or extraordinary circumstances a person may designate by written authorization a disinterested representative to act on his or her behalf. Non-attorney representation may be permitted at the discretion of the Commission, providing that the rules and regulations and legal procedures are otherwise complied with. An attorney from another jurisdiction, in good standing there, may at the discretion of the Commission be permitted to participate in proceedings before the Commission. Nothing in this rule shall be interpreted in such a way as to permit the unauthorized practice of law; nor shall this rule in any way be construed to restrict or limit the right of any person to conduct his or her own business with or before the Commission.

3. Place of Sessions

Hearings shall be conducted in the county in which the property interest that is the subject of the hearing is located, unless at the complete discretion of and in the best judgment of the Clerk of the Commission there are overriding issues related to the convenience of the parties or the efficiency in conducting the hearing that require the choice of a location outside of the county. The exact location of any hearing shall be suitable for a full presentation of all evidence. In choosing the exact location of the hearing, the Clerk may take into consideration factors including but not limited to the capacity of the proposed site to accommodate the anticipated number of persons attending the hearing, the needs of anyone attending the hearing who might have a disability, the degree to which the proposed site is perceived by the parties as being neutral to each party, and the degree to which the proposed site can meet the technological requirements of any party presenting evidence. Regardless of the selected hearing location, the county commissioner appointed for the hearing shall be a commissioner of the county in which the subject property is located.

4. Hearings

All hearings shall be open to the public and a record of all hearings in a form susceptible to transcription shall be made.

5. Transcription of Hearings

(A) The Clerk of the Commission may engage the services of a court reporter to create a verbatim record of the hearing whenever in the opinion of the Clerk it is desirable to do so.

(B) A party may request that a verbatim record of the hearing be made of the hearing by a court reporter. The request must be submitted to the Clerk of the Commission with sufficient advance notice to arrange for the presence of the court reporter and to insure that space arrangements may be made to accommodate the court reporter at the site of the hearing.

(C) In lieu of using a court reporter, the Clerk of the Commission may utilize voice recognition technology to create a record of the hearing.

(D) In cases in which a recording is made but no transcription of the hearing has been made, a party may request a copy of the tape or other modality that contains the recorded version of the hearing. The State Claims Commission shall retain the original tape, disc, or other modality that contains the recorded version of the hearing.

6. Payment for the Transcription or Recording of the Hearing

(A) When the Clerk of the Commission has engaged the services of a court reporter pursuant to paragraph 5(A) above, the direct cost of the court reporter shall be paid by the Commission. The cost for the transcription and preparation of the record shall be borne by the person or entity requesting the transcript.

(B) When a party has requested a court reporter pursuant to paragraph 5(B) above, the cost of the court reporter, the transcription, and the preparation of the record shall be paid by the person or entity requesting the court reporter.

(C) The cost of production of the voice recognition transcript pursuant to paragraph 5(C) above or the cost of reproducing the tape, disc, or other modality pursuant to paragraph 5(D) above shall be borne by the person or entity requesting the record.

(D) A person or entity requesting a transcript or record pursuant to paragraphs (A), (B), or (C) of this section may share with other persons or entities the costs of transcription, or preparation of the transcript or record equally or in whatever proportion of payment that the parties or entities requesting the transcript or record may agree upon. In cases in which the parties or entities are sharing costs, a written request signed by each person or entity sharing the cost incurred or to be incurred by the State Claims Commission must be submitted to the Clerk of the State Claims Commission stating the proportional payments to be borne by each party or entity. In any case, a copy of the transcript shall be provided to the State Claims Commission at no cost.

7. Order of Procedure for the Hearing

The Department of Transportation and other parties who initiate condemnation proceedings involving the acquisition of land or any interest therein and which are statutorily referred to the Commission for the determination of just compensation, shall ordinarily be required to present their evidence and witnesses first and they will testify, under oath, as to the basis of their determination of just compensation. At the conclusion thereof, the property owner or other claimants shall present their evidence supporting the property owner’s opinion regarding just compensation. Notwithstanding the above, the Clerk of the Commission and the Attorney member of the hearing commission shall have the discretion to decide jointly which party shall present first.

8. Conferences

A person desiring a conference with the Commission with respect to any matter which is, or which may come, before the Commission shall direct his or her request for such a conference in writing to the Clerk, stating the subject desired to be considered, and shall give notice of such request to all parties of record in such matter, or known or reasonably believed to have a direct interest therein.

9. Copies of Communications

Whenever any proceeding shall have been commenced before the Commission, a party writing to, or forwarding written material to, the Commission with respect to such proceedings, shall at the same time forward a copy of such letter or material to every other party of record, and shall show compliance with this rule by statement or certificate attached to such letter or material.

10. Views and Inspections

Except as provided in this section, the State Claims Commission shall view the property involved with or without the presence of the interested parties, but it shall first notify the interested parties of the time when it will view the property. Such view may be taken either before or after any hearing which may be held. A property owner may waive the right to a view of the property by the Commission. The Commission is not required to view a property prior to issuing a default judgment pursuant to Section 18 of these rules.

11. Additional Parties

The Commission may, in any proceeding pending before it, order that any person whose interest will be affected by any orders made therein be made a party to the proceeding. A person thus made a party shall be governed by these rules.

12. Appearances

At any hearing, any party of record shall be entitled to enter his or her appearance, introduce evidence, examine and cross-examine witnesses, make arguments and generally participate in the conduct of the proceeding. Appearances shall be entered either in writing or, at the discretion of the Commission, upon the record of the hearing. If appearance in writing is filed, a copy thereof shall be delivered, or mailed postage prepaid, to all other parties to the proceeding by the filing party.

13. Pre-Hearing Conferences

Prior to any proceeding the Chairperson or his or her designee may upon the request of a party or upon his or her own motion hold a pre-hearing conference. The purpose of the conference may be but is not limited to the simplification of the issues in the case, the establishment of facts upon which the parties can agree, the identification of documents the parties intend to introduce into evidence, the identification of expert witnesses, the order, scope, and timing of discovery, the resolution of any questions of procedure, the fixing of the location and time of any hearing, and in general the consideration of such other subjects that may enhance the efficiency of the hearing process or aid in the disposition of the case. The Chairperson or his or her designee may establish a calendar that states the date by which actions identified in the pre-conference shall take place. For any pre-hearing conference that is held, the Chairperson or the designee shall make a written order which recites the action taken at the pre-hearing conference and that order, unless otherwise modified in writing at a later date by the Chairperson or the designee, shall control the subsequent course of the case. The Chairperson or the designee may impose sanctions upon a party or a party’s attorney which may include the imposition of costs, including attorney fees and travel costs, as appropriate, for the failure to comply with an order made pursuant to this section.

14. Consolidation

The Commission may, after notice to all parties, upon its own motion or motion of any party, make such order for the consolidation of any cases pending before it as justice and convenience requires. Such proceedings may be consolidated in whole or in part as the Commission may determine.

15. Notice of Hearing

(A) The Commission shall give notice of the time and place for the hearing which shall be mailed registered or certified mail to all interested parties at least fourteen (14) days before the date of the hearing, or by personal service as required for service of a summons on a complaint in the Superior Court.

(B) The Clerk of the Commission or his or her designee may send a property owner a second copy of the notice of the hearing by regular mail. Such a notice may be mailed less than fourteen (14) days prior to the hearing.

(C) Any party or interested person may agree to accept a notice of hearing of less than fourteen (14) days.

(D) In the event a notice of hearing mailed pursuant to paragraphs (A) or (B) above is returned to the Commission marked “refused”, “returned to sender”, “unclaimed”, “unable to forward”, “addressee unknown” or any of the above, the Clerk of the Commission may reschedule the hearing to a later date but is not required to do so. The Clerk of the Commission or his or her designee shall notify the Maine Department of Transportation or other party of any notice of hearing that is refused, returned, unclaimed, or that the Postal Service is unable to forward.

(E) The Clerk of the Commission or his or her designee may receive additional information from the Department of Transportation or other party pertaining to the correct or most current address of the property owner. If such information is received from the Department of Transportation or from any other source deemed reliable by the Clerk of the Commission, the Clerk of the Commission or his or her designee shall record the most recent address of the property owner in the records of the State Claims Commission.

(F) Upon receipt of a written request from the Maine Department of Transportation or other interested person the Clerk of the State Claims Commission or his or her designee may order service by publication. In making the decision as to whether to utilize service by publication the Clerk of the Commission may take into account factors such as the anticipated expense of any notice of publication, and the likelihood that the published notice will accomplish the goal of giving actual notice to the property owner or other intended recipient of the published notice.

16. Protection for Minors or Persons with a Disability

The Chairperson of the Commission may appoint a guardian ad litem to protect the interests of any minor or incompetent person who has an interest in a case before the State Claims Commission. Any guardian ad litem appointed under this section shall submit an itemized request for costs, expenses, and compensation to the State Claims Commission. The State Claims Commission shall determine the reasonable costs, expenses, and degree of compensation for the guardian ad litem. When the condemning authority is the Department of Transportation, such costs and expenses and compensation shall be borne by the Department of Transportation.

17. Continuances

(A) Requests for continuances must be submitted in writing to the Clerk of the Commission at least seven (7) days prior to the date of hearing. A request for a continuance may be submitted by letter, facsimile (“fax”) or by e-mail. Changes in the time and place of the hearing in any proceeding will be granted only for good cause shown. Continuances will not be granted if requested within seven (7) days prior to the date of the hearing except for compelling circumstances, and such requests shall contain a full statement of the reason for the need for the continuance. No continuance will be granted automatically. The Clerk will notify the parties in writing of any decision pertaining to the request for a continuance.

(B) The Commission may continue a hearing from time to time for cause shown or by agreement of parties. If the request for a continuance is made at the request of the property owner, the Commission shall require interest be waived for the period of the continuance.

18. Default

When the Clerk of the Commission or his or her designee has attempted to notify a property owner of a hearing pursuant to Section 15 of these regulations, or when all interested parties have been notified of a hearing, and the property owner does not attend such hearing either in person or by an authorized representative and the property owner fails to obtain a continuance from the Commission prior to the scheduled time of the hearing, the Commission shall grant a judgment of default against the property owner. Such a judgment of default shall be valid once signed by at least one Commissioner, so long as any Commissioner signing the entry of default is present for the call of the docket on the day of the scheduled hearing and that Commissioner has been a witness to the failure of the property owner or someone representing the property owner to appear at the hearing. The docket may be called either by the Clerk of the Commission or by a Commissioner.

(A) Notice of Default Judgment: The Clerk of the Commission or his or her designee shall mail a copy of the default judgment by registered or certified mail to the property owner who is the subject of the default decision at the last current recorded address of the property owner known to the Commission. If the mailed default decision is returned to the Commission marked “refused”, “return to sender”, “unclaimed’, “unable to forward”, or any of the above, the Clerk of the Commission or his or her designee shall notify the Department of Transportation or other party that the default judgment has been returned. The Clerk of the Commission or his or her designee may receive information from the Department of Transportation or from any other reliable source deemed reliable by the Clerk pertaining to the most current address of the property owner. The Clerk of the Commission or his or her designee shall mail a second copy of the default judgment to the property owner by regular mail to the most current address known or made available to the Commission.

(B) Relief From Default: Upon written request and upon a showing of excusable neglect the Clerk of the Commission may relieve a property owner or other interested party from the default judgment provided that the written request is made within sixty (60) days from the date of the default judgment. The date of the default judgment may be later than the date of the hearing. A written request under this subsection may be submitted to the Commission by letter, by facsimile (“fax”), or by e-mail.

19. Form

Documents constituting pleadings, motions and briefs shall be typewritten or printed, (or otherwise mechanically produced or reproduced) on white paper 8-1/2 x 11 inches in size. The initial sheet shall have across the top thereof the heading of the "State Claims Commission" and underneath thereof the words "Department of Administrative and Financial Services", and it shall set forth that the matter is before the State Claims Commission, it shall show the names of the parties, so far as known, the nature of the document and the Docket Number. Such documents shall be signed by the party, or by the party’s attorney, or by the party’s representative who has been duly authorized as required by Section 2 of these rules. Unless otherwise jointly agreed by the parties and the Commission or by order of the Commission, there shall be filed with the Commission an original and three (3) copies of all such documents. Where the Commission has prescribed forms for the types of such documents, such forms shall be used as provided therein. All such documents filed subsequent to the initial petition of the Department of Transportation or other parties shall bear a statement indicating that a copy thereof has been delivered or mailed to every other party of record.

20. Amendments

The Commission may, in its discretion and upon such notice to other interested parties as it shall direct, permit the amendment of any document filed with the Commission.

21. Briefs

Briefs as to facts and law will be received and may be required to be submitted in any proceeding. The day for filing briefs will be designated by special order of the Commission during or upon the conclusion of the hearing. Unless jointly agreed to by the parties and the Commission or by order of the Commission, an original and four (4) copies of each brief shall be filed with the Commission and a copy thereof, shall be delivered to or mailed to each party of record prior to or simultaneously with delivery or mailing to the Commission. Certification of such mailing or delivery shall be filed with the Commission.

22. Evidence

Any oral or documentary evidence, which is relevant material, and not unduly repetitious or cumulative, may be admissible at any hearing before the Commission. While the Commission is not bound by the rules of procedure, it may apply such rules, or any of them, when, in its judgment, such application is necessary or appropriate to afford the parties a full and fair hearing and to bring about the production of needed and proper evidence speedily and definitely. The Chairperson shall resolve all questions of admissibility.

23. Official Notice

A party desiring the Commission to take official notice of the Commission’s own records shall specify the portions of such records, by page number or other convenient reference, for which it is desired that official notice be taken.

24. Incorporation by Reference

Documents and records, including the documents and records of the Commission, may, in the discretion of the Commission, be incorporated by reference into the record of a proceeding. Only such specific portions of the documents and records that are designated by page number or other convenient reference shall be so incorporated. The Commission will not ordinarily permit incorporation by reference of the entire record, or transcript of hearing, of a prior proceeding.

25. Exhibits

(A) Where evidence to be given consists of numerous figures, tabulations or technical data, it may be presented in written form as a visual aid or any exhibit provided the author is available for cross-examination.

(B) Space shall be provided in the upper right corner of each sheet of an exhibit for the insertion of the Docket Number, the name of the witness through whom it is presented, and the number of the exhibit.

(C) The party offering an exhibit shall provide four (4) copies to the Commission, unless the Commission otherwise directs.

26. Stipulation of Facts

The parties to any proceeding before the Commission may, by stipulation in writing, filed with the Commission or entered in the record at the hearing, agree upon the facts or any portion thereof, involved in the hearing, which stipulation shall be regarded and used as evidence in the decision of the matter.

27. Discontinuance of Proceeding

Except for agreements for settlement, a proceeding that has begun before the Commission shall not be discontinued or abandoned without the approval of the Commission nor, except with like approval, will any pleading or document filed with the Commission be withdrawn.

28. Certification of Official Acts

(A) Each member of the Commission, for its official purposes, may administer oaths, certify to official acts and issue all process necessary to the performance of the duties of the Commission.

(B) The Clerk of the Commission shall also have authority to certify to all official acts of the Commission, administer oaths, issue subpoenas, and issue all processes, notices, orders or other documents necessary to the performance of the duties of the Commission.

29. Award

As promptly as possible after the conclusion of the hearing, the Commission shall make an award in writing specifying the items as contained in Title 23 M.R.S., Section 156, as amended, or to make an award in accordance with Title 23 M.R.S., Section 246, Subsection 1 (Relocation Assistance) or Section 652, Subsection 1 (Change of Grade), or Subsection 2, Paragraph E (Private Water Supplies).

30. Interest on Awards

(A) Unless in the course of the proceedings the property owner has requested a continuance and that request for continuance has been granted, in which case no interest shall be paid during the duration of that continuance as required by Section 17(B) of these rules, simple interest from the date of taking until the date of the award shall be allowed at the one-year United States Treasury bill rate plus three (3) percent.

(B) For purposes of this section, “the one-year United States Treasury bill rate” means the average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last full week of the calendar year immediately prior to the calendar year in which the acquisition or “taking” by the condemning authority of the property interest that is the subject of the award occurred.

(C) If the Board of Governors of the Federal Reserve System ceases to publish the weekly average one-year constant maturity Treasury yield or if the rate defined in paragraph (B) above is otherwise unavailable, then the rate as established by the Maine Supreme Judicial Court pursuant to 14 M.R.S. Section 1602-B(3)(B), as amended, shall be the rate upon an award under this section is calculated.

31. Recess and Adjournment

The Commission may from time to time, recess, adjourn and continue any hearings as may be necessary in its discretion.

32. Waiver of rules

The Commission may waive the application of any rule, as justice may require.

33. Motions

With respect to all motions, including motions for continuances, unless the opposing party requests a hearing upon any motion within ten (10) days after the filing thereof, the party shall be deemed to have waived hearing and the Commission may act thereon.

34. Witnesses

Witnesses shall be sworn and every such witness shall be subject to oral cross-examination. No sworn written evidence shall be admitted unless the author is available for cross-examination or subject to subpoena, except for good cause shown.

35. Subpoenas and Discovery

(A) Any party shall be entitled to require the attendance and testimony of witnesses through the issuance of subpoenas in the name of the Commission. In addition any party shall be entitled upon request to the other party to the production of any evidence relating to any issue of fact in the proceeding to the extent that evidence is not privileged or protected by statute, rule or the United States or Maine Constitutions.

(B) The Commission may prescribe the form of subpoena, but it shall adhere, insofar as practical, to the form used in civil cases before the Courts. Witnesses shall be subpoenaed only within the territorial limits, and in the same manner as witnesses in civil cases before the Courts, unless another territory or manner is provided by law. Witnesses subpoenaed shall be paid the same fees for attendance and travel as in civil cases before the Courts. Such fees shall be paid by the party requesting the subpoena.

(C) Any subpoena issued shall show on its face the name and address of the party at whose request it was issued.

(D) Any witness subpoenaed may petition the Commission to vacate or modify a subpoena issued in the Commission’s name. The Commission shall give prompt notice to the party who requested issuance of the subpoena. After such investigation as the Commission considers appropriate, it may grant the petition in whole or in part upon a finding that the testimony or the evidence whose production is required does not relate with reasonable directness to any matter in question, or that a subpoena for the attendance of a witness or the production of evidence is unreasonable or oppressive or that it has not been issued a reasonable period in advance of the time when the evidence is requested.

(E) Failure to comply with a subpoena lawfully issued in the name of the Commission and not revoked or modified by the Commission as provided in this section shall be punishable as for contempt of Court.

36. The Commission’s Presiding Officer and His or Her Duties

One of the two attorney members of the Commission shall be the Chairperson of the Commission, as required by 22 M.R.S. Section 152, paragraph one. The Clerk of the Commission shall assign one of the two attorney members of the Commission to be the presiding officer in any case or proceeding before the Commission. Except where these rules specifically state that the Chairperson of the Commission alone is authorized to make a ruling or decision, the other attorney member of the Commission may act as the Chairperson’s designee and may act as the presiding officer of the Commission. The presiding officer may:

Administer oaths and affirmations;

(B) Rule on the admissibility of evidence;

(C) Regulate the course of the hearing, set the time and place for continued hearings, and fix the time for filing of evidence, briefs, and other written submissions;

(D) Take other action authorized by statute or Commission rules.

History

• STATUTORY AUTHORITY: Title 23 M.R.S. Section 152
• EFFECTIVE DATE: June 30, 1978 – filing 78-61
• AMENDED: May 9, 1982 – filing 82-88
• AMENDED: November 1, 1990 – filing 90-440
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• AMENDED: April 3, 2017 – filing 2017-054
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 120 Rules of Practice Governing Conduct of Adjudicatory Proceedings for State Claims

Code Me. R. 18-185 Ch. 120 Rules of Practice Governing the Conduct of Adjudicatory Proceedings for State Claims {#sec-18-185-ch.-120 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-185 Ch. 120}

Summary: These rules of practice prescribe the manner in which claims are to be submitted before the State Claims Board.

1. Scope and Applicability of Rules

These Rules shall govern the submission of claims before the State Claims Board and which claims shall include, but shall not be limited to, claims for damage or injury caused by patients, inmates, prisoners in the care or custody of the Department of Mental Health and Corrections or of an institution administered by a department, by children in the custody of the Department of Human Services and for damage to sheep done by dogs or wild animals.

2. Jurisdiction of Claims

A claim may be submitted to the State Claims Board and heard and decided by it if:

A. The claim was submitted under the pursuant to Title 5 M.R.S.A., Section 1510-A, subsection 1 to a state agency which refused to hear it;

B. The claim cannot be submitted under a specific statutory provision other than Title 5 M.R.S.A., Section 1510-A, subsection 1 because the claimant, as a result of an action or omission of a state agency or state agent, has not complied with time limits contained in that specific statutory provisions.

3. Appeal from Departmental Decisions

A. Any claim disapproved in whole or part by a state agency hearing that claim under Title 5 M.R.S.A., Section 1510-A, subsection 1 may be appealed to the state Claims Board within thirty (30) days from disapproval or partial disapproval. The State Claims Board shall hear de novo any claim so appealed.

B. Any payment resulting from a decision of the State Claims Board on claim submitted to it under Title 5 M.R.S.A., Section 1510-A, subsection 3 shall be paid by the state agency or agencies found responsible by the State Claims Board or, if there is no clearly identifiable responsible state agency, the payment shall be paid from the state contingent fund.

4. Appeal form State Claims Board Decision

Any party aggrieved by an award of the State Claims Board may appeal therefrom to the Superior Court within 30 days after the date of the receipt of the notice of the award. The appeal shall be taken by filing a complaint setting forth, as in other civil matter, substantially the facts upon which the case shall be tried. Service shall be made on the opposing party and the State Claims Board by sending a true copy of the complaint by registered or certified mail within the time limit set out in this subsection. The complaint shall be filed in the Superior Court for the county where on or more of the parties resides or have their principal place of business or where the activity or property which is the subject of the proceeding is located. The court’s determination shall be de novo and without a jury or, if all parties agree, by a referee or referees. (See Chap. 553, Sec. 2, P.L., 1983).

5. Jurisdiction Over Claims Prior to January 4, 1977

The jurisdiction of the State Claims Board over claims subject to Title 5 M.R.S.A., Section 1510-A includes those claims which have arisen prior to Jan. 4, 1977, unless they have been ruled upon by the Governor and Executive Council or by the Legislature prior to Jan. 4, 1977.

6. Different Procedures

A claim submitted pursuant to Title 5 M.R.S.A., Section 1510-A shall not be disapproved solely because a claim based on the same facts was submitted under a different statutory procedure and was disallowed.

7. Hearings

Hearings on claims submitted pursuant to Title 5 M.R.S.A., Section 1510-A, subsection 2 or appeals made pursuant to subsection 3 shall be held at a time and place which the Board shall determine. The Chairman shall assign one or 3 members to hear and determine each claim.

8. Practice Before the State Claims Board

a. Any person may appear before the Board in his own behalf, or by attorney authorized to practice in this State. Non-attorney representation may be permitted at the discretion of the Board, providing that the rules and regulations and legal procedures are otherwise complied with. In unusual or extraordinary circumstances, and at the discretion of the Board, a person may appear by a representative thereunto authorized in writing. Nothing in this Rule shall be interpreted in such a way as to permit the unauthorized practice of law; nor shall this Rule in any way be construed to restrict or limit the right of any person to conduct his own business with or before the Board.

B. Every party, in a sequence designated by the presiding officer, shall have the right to present evidence and argument on all issues and to call and examine witnesses and make oral cross-examination of any person present and testifying. However, the presiding officer may limit testimony to avoid repetition.

9. Procedures for Submission of Claims

A. Name, address and telephone number of claimant.

B. Name, address and telephone number of any representative of claimant.

C. State department or agency against which claim is asserted.

D. Date, time and place of incident giving rise to the claim.

E. The name and address of each State employee who was involved in or who witnessed the incident which gave rise to the claim.

F. The name and address of any other State Employee who the claimant or claimant’s representative has contacted or who the claimant is aware has been contacted regarding the claim.

G. The name and address of any other person who witnessed the incident or whom the claimant intends to present in support of his claim.

H. The name and agency of any law enforcement personnel who investigated the claim.

I. A concise statement of the basis of the claim.

J. Estimated dollar value of the claim with receipts or estimates by parties having no relation to the claimant which objectively indicate the cost of repairing or replacing any property and who are qualified to make such estimates with their address and telephone number.

10. Notice of Hearing

Notice of hearing shall be provided to the claimant and to other parties deemed by the Board to have an interest by regular or certified mail.

11. Opportunity to be Heard

The opportunity for any hearing on any claim shall be afforded without undue delay and every party shall have the right to present evidence and arguments on any claim, and at any hearing to call and examine witnesses and to make oral cross-examination of any person present and testifying.

12. Evidence

The State Claims Board need not observe the rules of evidence observed by Courts, but shall observe rules or privilege recognized by law. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The Board may exclude irrelevant or unduly repetitious evidence

13. Witnesses

Witnesses shall be sworn and every such witness shall be subject to oral cross-examination. No sworn written evidence shall be admitted unless the author is available for cross-examination or subject to subpoena, except or good cause shown.

14. Official Notice

The Board may take official notice of any facts of which judicial notice could be taken, and in addition, may take official notice of general, technical or scientific matters within their specialized knowledge and of statutes, regulations and nonconfidential agency records. Parties shall be notified of the material so noticed, and shall be afforded an opportunity to contest the substance or materiality of the facts noticed.

15. Evaluation of Evidence

The Board may utilize their experience, technical competence and specialized knowledge in the evaluation of the evidence presented to them.

16. Record

The Board shall record all hearings in a form susceptible to transcription. The Board shall make a copy of the record or any portion thereof shall be available to any person at actual cost.

17. Documentary Evidence

Documentary evidence may be incorporated in the record by reference when the materials so incorporated are made available for examination by the party before being received in evidence.

18. Subpoenas and Discovery

A. Any party shall be entitled to the issuance of process in the name of the Board (to the extent permitted by law) to require the attendance and testimony of witnesses and the production of any evidence relation to any issue of fact in the proceeding to the extent not privileged or protected by stature, rule or constitution.

B. The Board may prescribe the form of subpoena, but it shall adhere insofar as practical to the form used in civil cases before the Courts. Witnesses shall be subpoenaed only within the territorial limits and in the same manner as witnesses in civil cases before the Courts, unless another territory or manner is provided by law. Witnesses subpoenaed shall be paid the same fee for attendance and travel as in civil cases before the Courts. Such fees shall be paid by the party requesting the subpoena.

C. Any subpoena issued shall show on its face the name and address of the party at whose request it was issued.

D. Any witness subpoenaed may petition the Board to vacate or modify a subpoena issued in its name. The Board shall give prompt notice to the party who requested issuance of the subpoena. After such investigation as the Board considers appropriate, it may grant the petition in whole or in part upon a finding that the testimony or the evidence whose production is required does not relate with reasonable directness to any matter in question, or that a subpoena for the attendance of a witness or the production of evidence is unreasonable or oppressive or has not been issued a reasonable period in advance of the time when the evidence is requested.

E. Failure to comply with a subpoena lawfully issued in the name of the Board and not revoked or modified by the Board as provided in this section shall be punishable as for contempt for Court.

19. Decisions

The Decision of the Board shall be made in writing and shall include reasons for the basis for the decision. A copy of the Decision shall be delivered or promptly mailed to each party or his/her representative or record by regular or certified mail. Written notice of the party’s rights to appeal the Decision, if applicable, will be given to each party with the Decision.

20. Presiding Officer; Duties

The Chairperson of the Board shall assign either one or 3 members to hear and determine each claim and if the composition of the Board is 3, than the presiding officer shall be either the Chairperson or other attorney member and if one member, than in that event, the presiding officer can be either the Chairperson, the other attorney member or other member of the Board.

The presiding officer may:

A. Administer oaths and affirmations;

B. Rule on the admissibility of evidence;

C. Regulate the course of the hearing, set the time and place for continued hearings, and fix the time for filing of evidence, briefs and other written submissions; and

D. Take action authorized by stature or Board rules.

STATUTORY AUTHORITIY: Title 5 M.R.S.A., Section 1510-A (8)

EFFECTIVE DATE:

June 30, 1978 (Filed with Sec. of State 7-20-78)

AMENDED:

May 9, 1982; Section 4 changed as a result of PL 553, 1983.

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 1, 1996

CORRECTION:

January 27, 2016 – spelling, format only

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

18-352 State Employee Health Commission

Chapter 1 Rules Of Practice Gov. Adjudicatory Proceedings of State Employees Health Commission

Code Me. R. 18-352 Ch. 1 Rules of Practice Governing Adjudicatory Proceedings of the State Employee Health Commission {#sec-18-352-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-352 Ch. 1}

SUMMARY: These rules establish the procedure to be used for the taking of appeals and the conduct of hearings.

1. Proceedings before the Appeal Panel and the Commission

A. Notice

(1) Notice of the right to appeal a determination made pursuant 5 MRSA, subsection 286 appeal panel and/or the Commission shall be given as follows: By regular mail to the person or persons whose legal rights, duties, or privileges are at issue, sufficiently in advance of the hearing date to afford an adequate opportunity to prepare and submit evidence and argument and to request a hearing if so desired.

(2) All notices of hearing shall contain the following:

a. A statement of legal authority and jurisdiction under which the proceeding is being conducted;

b. A reference to the particular substantive issue;

c. A short and plain statement of the nature and purpose of the proceeding and of the matters asserted;

d. A statement of the time and place of hearing;

e. A statement of the manner and time within which evidence and argument may be submitted to the agency for consideration;

f. A statement advising the parties that the Commission or appeal panel may schedule a telephone hearing in lieu of in-person proceedings If either party demonstrates that a telephone hearing may expedite the process or prevent undue hardship.

(3) Notice of appeal rights must state the place and manner of taking an appeal and the period within which an appeal may be taken. As to the Commission, notice of appeal rights shall state that the Commission is not required to hold a hearing and that it is the burden of the interested party to show a need for such a hearing.

B. Disposition without full hearing.

(1) The Commission or the appeal panel may make informal disposition of any adjudicatory proceeding by default when any party fails to appear at the scheduled hearing, provided notice of the consequences of such failure to appear has been given said party. Any such default may be set aside by the Commission or appeal panel for good cause show.

(2) The Commission or appeal panel may limit the issue to be heard or vary any procedure prescribed by Commission rule or the administrative procedures act if the parties and the Commission or appeal panel agree to such limitation or variation, or if no prejudice to any party will result.

C. Exparte Communications: Separation of Functions

(1) In any adjudicatory proceeding, no Commission or appeal panel member authorized to take final action or to make findings of act and conclusions of law shall communicate directly or indirectly, in connection with any issue of fact, law or procedure, with any person except upon notice and opportunity for all parties to participate.

(2) This subsection shall not prohibit any commission or appeal panel member or other presiding officer described above from:

a. Communicating in any respect with other members of the Commission or appeal panel; or

b. Having the aid or advice of those members of his/her own agency staff, counsel or consultants retained by the agency who have not participated and will not participate in the Commission or appeal tribunal proceeding in an advocate capacity.

D. Opportunity to be heard

(1) The opportunity for hearing shall be afforded without undue delay.

(2) Unless limited by stipulation under subsection (B) (2) or unless otherwise limited by the Commission or appeal panel to prevent repetition or unreasonable delay in proceedings, every party shall have the right to present evidence and arguments on all issues, and at any hearing to call and examine witnesses and to make oral cross-examination of any person present and testifying.

E. Evidence

(1) The Commission and appeal panel need not observe the rules of evidence observed by the courts, but shall observe the rules of privilege recognized by law.

(2) Evidence shall be submitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The commission or appeal panel may exclude irrelevant or unduly repetitious evidence.

(3) All witnesses shall make affirmation of truthful testimony.

(4) Subject to these requirements, the commission and appeal panel may, for the purposes of expediting adjudicatory proceedings, require the prefiling of all or part of the testimony of any witness in written form. Every such witness shall be subject to oral cross-examination.

(5) Generally sworn written evidence shall not be admitted unless the author is available for cross examination or subject to subpoena. The Commission or appeal panel may, however, accept sworn written evidence without the necessity of the author being present if no prejudice would result to the other party.

F. Official Notice

(1) The Commission and/or the appeal panel may take official notice of any facts of which judicial notice could be taken, and in addition may take official notice of general, technical or scientific matters within their specialized knowledge and of statutes, regulations and non-confidential agency records. Parties shall be notified of the material so noticed, and they shall be afforded an opportunity to contest the substance or materiality of the facts noticed,

(2) Facts officially noticed shall be included and indicated as such in the record.

(3) Notwithstanding the foregoing, the Commission and/or the appeal panel way utilize their experience, technical competence and specialized knowledge in the evaluation of the evidence presented to them.

G. Record

(1) in all adjudicatory proceedings the Commission and/or the appeal panel shall make a record consisting of the following:

a. All applications, pleadings, motions, preliminary and interlocutory rulings and orders;

b. Evidence received or considered;

c. A statement of facts officially noted;

d. Offers of proof, objections and rulings thereon;

e. Proposed findings and exceptions, if any;

f. The recommended decision, opinion or report, if any, by the presiding officer;

g. The decision of the Commission or the appeal panel; and

h. All staff memoranda submitted to the members of the Commission or the appeal panel by staff in connection with their consideration of the case, except memoranda of counsel to the Commission or the appeal panel.

(2) The Commission and/or the appeal panel shall record all hearings in a form susceptible to transcription. Portions of the record as required and specified in subsection (G) (1) way be included in the recording The Commission and/or the appeal panel shall transcribe the recording when necessary for the prosecution of an appeal.

(3) All material, including record, reports and documents in possession of the Commission or the appeal panel, of which it desires to avail itself as evidence in making a decision, shall be offered and made part of the record and no other factual information or evidence shall be considered in rendering a decision.

(4) Documentary evidence may be incorporated in the record by reference when materials so incorporated are made available for examination by the parties before being received in evidence.

(5) orders for supplying information from the records of the Commission or the Bureau:

a. Orders for supplying information from the records of the Commission or the Bureau to interested parties to the extent necessary for a proper hearing on the issues involved in a claim shall be issued only upon application therefore, setting forth the reasons therefore. All applications for information from the records of the Commission or the Bureau shall state as nearly as possible the nature of the information desired.

b. In all cases where application to supply an interested party with information from records of the Commission or the Bureau is granted, other interested parties shall be furnished with a copy of such information.

H. Subpoena

(1) In any adjudicatory proceedings, any party shall be entitled as of right to the issuance of a subpoena in the name of the State Employee Health Commission to require the attendance and testimony of witnesses and the production of any evidence relating to any issue of fact in the proceeding.

(2) Authorized subpoenas shall be issued in accordance with. the following:

a. The form of the subpoena, shall adhere, insofar as practicable, to the form used in all cases before the court. Witnesses shall be subpoenaed only within the territorial limits and in the same manner as witnesses in civil cases before the courts, unless another territory or manner is provided by law.

b. Witnesses subpoenaed for any hearing before any appeal panel or the Commission shall be paid witness and mileage fees by the Commission in accordance with the following schedule, except that no attendance or mileage fee shall be due or payable when a subpoena is issued to compel a carrier or contracted managed care representative to appear and produce records and reports for the purpose of making a determination as to liability or for the purpose of completing routing reports as provided under the Maine employment security law: $10.00 for each day's attendance and 20 cents for each mile's travel going and returning home.

c. The subpoena shall show on its face the name and address of the party at whose request it was issued.

d. Any witness subpoenaed may petition the Commission or appeal panel to vacate or modify a subpoena in its name. The Commission or appeal panel shall give prompt notice to the party who requested issuance of the subpoena. After such investigation as the Commission or the appeal panel considers appropriate, it may grant the petition in whole or in part upon a finding that the testimony or the evidence whose production is required does not relate with reasonable directness to any matter in question, or that a subpoena for the attendance of a witness or the production of evidence is unreasonable or oppressive or had not been issued a reasonable period in advance of the time when the evidence is requested.

e. Pursuant to Title 5 M.R.S.A. Section 9060 (1) (D) failure to comply with a subpoena lawfully issued and not revoked or modified shall be punishable by a fine of not less than $5,000, or by imprisonment not to exceed 30 days, or both.

I. Decisions

(1) Every decision of the Commission and/or appeal panel made at the conclusion of an adjudicatory proceeding shall include findings of fact sufficient to apprise the parties and any interested member of the public of the basis for the decision. A copy of the decision shall be delivered or promptly mailed to each party to the proceeding or his representative of record. Written notice of the party's rights to review or appeal of the decision to the Commission or review of the decision by the courts, as the case may be, and of the action required and the time within which such action must be taken in order to exercise the right of review or appeal, shall be given to each party with the decision.

(2) The Commission and appeals panel shall maintain a record of the vote of each member of the Commission with respect to the Commission or appeals panel decision.

J. Presiding-officers

(1) Whenever a Commission member or appeal panel or hearing examiner is disqualified or it becomes impracticable for him to continue the hearing, the remaining Commission members or another appeal panel hearing examiner may continue with the hearing; provided that, if it is shown prejudice to any party will thereby result; the remaining Commission-members or substitute appeal panel bearing examiner shall commence the hearing anew.

(2) It shall be the duty of the Commission and appeal panel members to:

a. Administer oaths and affirmations;

b. Rule on the admissibility of evidence;

c. Regulate the course of the hearing, set the time and place for continued hearings, and fix the time for filing of evidence, briefs and other written submissions, and

d. Take other action authorized by statute or Commission rule.

(3) In the event that the Commission or the appeal panel prepare any report or proposed findings, the report or findings shall be provided to each party and an opportunity shall be provided for response or exceptions to be filed by each party.

(4) Hearings shall be conducted in an impartial manner. Upon the filing in good faith by a party of a timely charge of bias or of personal or financial interest, direct or indirect, of a Commission member or appeal panel or hearing officer in the proceeding requesting that that person disqualify himself, that person shall determine the matter as a part of the record.

K. Representation before the Commission and appeal panel

(1) Any individual may appear for himself in any proceeding before any appeal panel and/or the Commission. Any partnership may be represented by any of its members-or a duly authorized representative.

(2) Any interested party may be represented by an attorney-at-law who is admitted to practice before the highest court of this State or the highest court of any state or territory of the United States, or by an authorized agent.

(3) The Commission or an appeal panel may, in its discretion, refuse to allow any person to represent others in any proceeding before it who persists in unethical conduct or who intentionally and repeatedly fails to observe the provisions of Maine law or regulations and proper instructions of the Commission.

2. Proceedings before the Commission.

The Commission may remand any issue to an appeal panel for the taking of additional evidence as the Commission may deem necessary. Such testimony shall be taken by the appeal panel in the manner prescribed for the conduct of hearings on appeals before appeal panels. Upon the completion of the taking of evidence by an appeal panel pursuant to the direction of the Commission, the claim or the issues involved in such claim shall be returned to the Commission for its decision thereon. In addition to what is described above, the Commission may, as it deems necessary, in cases where there has been no appeal panel hearing conducted, remand such claim or issue to the appeal panel for the purpose of holding a de novo hearing. In such cases, the appeal panel shall render Its own decision instead of returning the case to the Commission for further action.

3. Reconsideration of Commission Decision

A. Any interested party may request the Commission to reconsider its decision in a case, only if such request for reconsideration is filed with the Commission within 10 days of receipt of the original commission decision.

B. Unless an interested party appears at the appeal panel hearing or the Commission hearing, if one was held, he/she may not request reconsideration of the decision, unless such nonappearance was for good cause recognized by the Commission.

EFFECTIVE DATE: December 21, 1988 (EMERGENCY)

EFFECTIVE DATE OF PERMANENT RULE: October 28, 1989

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996

NON-SUBSTANTIVE CORRECTIONS: August 13, 1996 -- incorporated minor spelling corrections as received from the agency, and corrected Section 1(I)(2) which had not been properly updated at the time of a previous amendment.

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

18-352 Chapter 1 page 1

18-389 Bureau of Human Resources

Chapter 1 Purpose, Adoption and Amendment of Rules and Definition of Terms

Code Me. R. 18-389 Ch. 1 Purpose, Adoption and Amendment of Rules and Definition of Terms {#sec-18-389-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 1}

SUMMARY: This chapter states the purpose of Civil Service Rules, outlines the mechanism for adoption or amendment and gives listing of terms used in the body of the rules. Procedures for interpretation and/or advisory ruling are also presented.

1. PURPOSE OF RULES

These rules implement the State Civil Service Law (Title 5 MRSA, Chapters 56, 60, 65, 67, 68, 69, 71 and 372). The rules shall be applied in accordance with the objectives of the Civil Service Law which are interpreted to be:

A. Promoting effective service, and economy in state office and employment.

B. Providing a modern and comprehensive personnel administrative system, in which:

1. Positions essentially alike in content shall receive equal treatment in all personnel processes.

2. Fair and equal opportunity shall be afforded to all qualified Maine citizens to enter State Service, on the sole basis of merit, as determined through practical competitive examinations.

3. The State Service shall be made attractive as a career.

4. ADOPTION, AMENDMENT AND INTERPRETATION

A. The Director of Human Resources shall prepare, amend, and adopt rules in accordance with requirements of Civil Service Law and the Maine Administrative Procedure Act. New or amended rules will be adopted only after public hearing. Public notice will be made at least twenty days prior to this hearing and again, in the same newspapers, not more than ten nor less than seven days before the hearing.

B. Any person may propose a new rule or amendment to an existing rule by filing a petition in proper format with the Director of Human Resources. Notification of the disposition of each petition filed will be made within sixty days.

C. Copy of each rule or amendment adopted will be provided to:

1. All State Government agencies.

2. The Attorney General, for review and approval.

3. The Secretary of State for record; and inspection by and distribution to the public.

4. The general public upon request, and upon payment of actual cost of material requested.

D. Routine interpretation or clarification of any rule or statute administered by the Director of Human Resources will be provided upon request. Requests for routine interpretation or clarification need not be in writing.

Where a more authoritative interpretation is needed or desired in order to better understand the applicability of the law and rules to a particular circumstance, or set of circumstances, the Director of Human Resources may offer or provide interpretation through advisory ruling. Requests for advisory ruling must be in writing and provide clear and full description of the basis for this request. Advisory ruling, if made, will also be in writing. All advisory rulings will reflect only a best opinion in consideration of the particular circumstance(s) and the intent and practice of law and rules then in effect. In no case will an advisory ruling be legally binding upon the Director of Human Resources or this agency.

E. Personnel actions taken prior to the effective date of new or amended rules shall be governed by the rules in operation on the effective date of the action unless such rule or amendment is by its own terms retroactive.

3. DEFINITION OF TERMS

The following words and terms wherever used in these rules shall have the meaning indicated below:

A. "Agency" means a department, division, board, institution, or other branch of the State Service, in which all positions are under the same appointing authority.

B. "Allocate" means the assignment of a position to a class in the classification schedule as established or amended.

C. "Appointing Authority" means a person or group of persons empowered by the constitution, by statute, or by lawfully delegated authority to make appointments to positions in the State Service.

D. "Class" (also classification) means a group of positions so sufficiently alike with respect to duties, responsibilities and authority that the same descriptive title may be used with clarity to designate each such position; the same knowledges, skills, and abilities applied, the same process used to recruit, qualify and examine persons for each such position; and the same schedule of pay applied with equity to each such position.

E. "Classification Plan" means a system of identifying and describing the different kinds and levels of work which comprise State Service whereby significantly similar positions are grouped under a common class title and pay schedule.

F. "Classification Schedule" means the listing of unique classes and their designated pay ranges, and any amendment/adjustments thereto, resulting from application of the classification plan.

G. "Day" means calendar day of 8 hours except where otherwise specified in the specific rule.

H. "Demotion" means a change of an employee from a position in one class to a position in another class with less responsible duties and a lower salary range.

I. "Department" means the Department of Administrative and Financial Services, Bureau of Human Resources, and the employees thereof.

J. "Eligible" means any person whose name is on an eligible register.

K. "Full-time Employee" means an employee normally expected to work at least the standard work week (40 hours) for the class and agency.

L. "Intermittent Employee" means an employee who is hired from time to time to work irregular hours or weeks. Note: See Chapter 2 for a more complete definition.

M. "Limited Period Position" is a position, as authorized by the State Budget Officer, of other than project nature which, because of budgetary limitations, has a time limit set at the time of establishment.

N. "Military Leave" means the leave of absence granted to employees entering active duty in the armed forces of the State or the United States.

0. "Organization Unit” means a geographic, organizational, or other unit of an agency which is approved by the Director of Human Resources as a unit for the purposes of employment or layoff, or both.

P. "Part-time Employee" means an employee working less than the standard work week for the class and agency, on regularly scheduled hours per week for the position.

Q. "Permanent Employee" means an employee who has been appointed to a position after successfully completing his probationary period.

R. "Position" means a group of current duties and responsibilities assigned or delegated by competent authority, requiring the full-time, part-time, or intermittent employment of one person.

S. "Position Management" means an objective and documented evaluation of the organizational and functional components of an agency or subsection thereof. Evaluation considerations include, but are not limited to: overlapping responsibilities, layers of supervision, duplication of effort and poor mix of senior, journeyman, and junior positions.

T. "Probationary Period" means a working test period during which a new employee is required to demonstrate fitness for the position to which appointed by actual performance of the duties of the position.

U. "Project Position" is a position which is restricted to a planned work program to be completed within a specified limited period of time and which is not of a seasonal or regularly recurring nature.

V. "Promotion" means a change of an employee from a position of one class to a position of another class with more responsible duties and a higher salary range.

W. "Reallocate" means to alter an allocation decision by changing the assignment of a position to one class and reassigning it to another class in the Classification Schedule as established or amended.

X. 'Regular Appointment" means an appointment of an employee without current civil service rights from an open competitive register or an appointment to the non-competitive or labor division.

Y. "Seasonal Position" means a position established for less than full year periods and expected to be of a regularly recurring nature.

Z. "Substitute Appointment" means an appointment to fill a vacancy created by an employee on leave of absence.

AA. "Temporary Appointment" means an appointment for a period not to exceed three (3) months.

BB. “Transfer” means a change by an employee from one position to another position of the same class or of another class in the same salary range, usually involving the performance of similar duties and requiring essentially the same basic qualifications.

4. WAIVER OF RULES

The Director of Human Resources may waive, for up to a two-year period, with the possibility of extension, any one or a combination of the provisions of these rules for innovative or research projects designed to improve the merit system or its operation. Any such project shall be consistent with Federal standards for a merit system and shall comply with all applicable provisions of the Civil Service Law. Upon completion, any such project will be evaluated to determine whether its objectives have been achieved.

History

• STATUTORY AUTHORITY: 5 M.R.S.A., Ch. 372, Sec. 7036
• EFFECTIVE DATE: January 9, 1979
• AMENDED: September 6, 1988
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 2 Intermittent Employment

Code Me. R. 18-389 Ch. 2 Intermittent Employment {#sec-18-389-ch.-2 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 2}

SUMMARY: This chapter defines the nature and purpose of intermittent employment and identifies specific rights, privileges and benefits to which intermittent employees are entitled under law.

1. DEFINITION OF INTERMITTENT POSITIONS

A. An intermittent position is one which is used from time to time to support and supplement a regularly scheduled work force.

B. Any one intermittent position shall not be occupied for more than 19 hours in any one week or more than 475 hours in any one calendar year.

C. Violation of either time limitation shall result in loss of the affected position.

NOTE: This definition applies only to hours worked after July 6, 1978. Any hours worked prior to this date are to be discounted for purposes of compliance with this definition.

2. ESTABLISHMENT OF INTERMITTENT POSITIONS

Establishment shall require individual agency justification that work to be done is not of sufficient amount or duration to warrant regularly scheduled hours and/or weeks.

3. POSITION USE

A. Once an employee is assigned to an intermittent position, no other employee may be assigned to work that same position unless or until the first employee is separated.

B. If during an employment year, an employee resigns an intermittent position before the position has been occupied for 475 hours, the position may be refilled only for the balance which remains.

C. An employee who is assigned to work one intermittent position shall not be eligible for employment in any other intermittent position unless and until the first is separated. In any event, if more than one intermittent position is worked during an employment year, the total of hours worked in all these positions is not to exceed 475.

4. BENEFITS AND PRIVILEGES

A. Examination and Certification

1. An intermittent employee who, on or after July 6, 1978, has been employed in intermittent status in excess of 1040 hours, and who meets standards for admission, shall be eligible to participate in agency and statewide promotional opportunity examinations.

2. Admission to an agency or statewide promotional examination opportunity shall further require that any interested and qualified intermittent employee file application with the Bureau of Human Resources.

3. Names of intermittent employees who qualify by examination shall be placed on agency and statewide promotional lists, together with the names of other employees entitled to placement on these lists.

4. As appropriate, certification will be by score from among all agency or statewide personnel whose names are included on these lists. If specifically requested by the appointing authority, and if approved by the Director of Human Resources, certification will be by score only (open competitive certification).

B. Vacation and Sick Leave

1. Vacation: Eligibility for credits

a. Individual eligibility to accrue and use vacation credits shall require employment in intermittent status for more than 1040 hours.

b. Rate of accrual shall be as follows:

Employment Period Rate of Accumulation

0 - 5th year 1 day per 173 hours of employment

6 - 10th year 1 1/4 days per 173 hours of employment

11 - l5th year 1 1/2 days per 173 hours of employment

16 - 20th year 1 3/4 days per 173 hours of employment

21 - 2 days per 173 hours of employment

NOTE 1: One year (12 months) of employment equals 2080 hours; one month of employment equals 173 hours.

NOTE 2: Accrual of more than one day per 173 hours is contingent upon continuous employment for the last 5 years.

c. Employment time to be credited shall include only hours worked after July 6, 1978.

2. Sick leave: Eligibility for credits

a. General eligibility to accrue and use sick leave credits shall require employment in intermittent status for more than 1040 hours. Specific eligibility shall further require that the employee must have been scheduled and/or notified to report for work at least one calendar day in advance of the day(s) (or portion(s) thereof) claimed for this purpose.

b. Rate of accrual shall be one (1) day per 173 hours of employment.

c. Employment time to be credited shall include only hours worked after July 6, 1978.

C. Holiday Pay

1. General eligibility for holiday pay shall require employment in intermittent status for more than 1040 hours. Specific eligibility shall further require that the employee has worked on the regular agency work day preceding and the regular agency work day following the holiday in question.

2. The amount of compensation for holidays authorized intermittent employees shall be an individual agency determination. This compensation shall be dependent upon work circumstances existing at the time and every reasonable effort shall be made by the agency to ensure that the eligible employee's total earnings for the week in which the holiday falls approach earnings which would have been realized were it not for the holiday.

D. Health Insurance

Employees holding positions on an intermittent basis may elect to participate in, or continue participation in, the state employees' group health insurance plan, but eligibility for reimbursement by the state shall require employment in intermittent status for more than 1040 hours. Employees meeting this requirement for reimbursement will be billed directly on a quarterly basis by Blue Cross and Blue Shield. The state shall reimburse such employees twice annually, provided request for reimbursement is properly completed and filed with the Bureau of Accounts and Control. Reimbursement shall equal the percentage of hours worked to 1040 hours times the "state's share" as computed for full time employees. Until such time as the 1040 hour requirement is met and satisfied, however, participants must bear the full cost of premiums.

E. Probation

Employees who have 1040 hours in intermittent status shall upon the accumulation of an additional 1040 hours be considered to be "off-probation", and may be separated from their position only with just cause. Employment time to be credited for this additional 1040 hours shall include only hours worked after July 6, 1978.

F. Merit Evaluation

Individual eligibility to receive a step increase in salary on basis of performance shall require employment in intermittent status for 1040 hours. Employment time to be credited for this purpose shall include only hours worked after July 6, 1978, and evaluation date shall be that date after July 6, 1978, on which 2080 hours are earned and credited. Ratings shall be on basis of standards of performance established under requirements of the Performance Appraisal System prescribed by the Director of Human Resources.

G. Retirement

Employees assigned to positions having intermittent status are required to participate in the Maine State Retirement System. Contribution shall begin with the first day of employment. Credit shall be granted according to the following formula: Actual number of days worked x 1.6, converted to years, months, and days. One day equals 8 hours.

H. Transfers, Promotions and Demotions

1. A transfer from an intermittent position to another intermittent position, whether between positions in the same class or positions in different classes at the same pay range (and the employee has the needed minimum qualifications), shall be at the discretion of the agency to which transfer is requested. Employees who desire a transfer of this kind shall be responsible for contacting the appropriate agency (or sub-division) directly. An application shall be required by the Bureau of Human Resources only when transfer to a different class is requested.

2. Any transfer, demotion or promotion from an intermittent position to a position for which status is based on examination and certification from a register shall not be allowed unless and until eligibility for and placement on this register is accomplished. If specified by the requesting agency, names on transfer and demotion lists will be included as a supplement to a promotional or open competitive certification. Applications shall be required for this purpose and may be filed with the Bureau of Human Resources at such times as the class of position desired is open to recruitment and examination.

3. A promotion from an intermittent position to another intermittent position (e.g., movement from one intermittent position to another intermittent position at a higher pay range) shall be at the discretion of the agency involved. Employees shall by required to contact the appropriate agency (or sub-division) directly and must file an application with the Bureau of Human Resources to establish qualification for the class to which promotion is made.

4. A demotion from an intermittent position to another intermittent position, whether to a position in a related or unrelated class (and the employee has the needed minimum qualifications), shall be at the discretion of the agency to which demotion is requested. Employees who desire a demotion of this kind must contact the appropriate agency (or sub- division) directly. An application shall be required by the Bureau of Human Resources.

I. Classification

Present rules and procedures governing the classification of positions shall apply universally to all positions in the classified and unclassified service, regardless of position status (e.g., permanent part-time, project intermittent, limited period full-time, etc.).

J. Compensation

Compensation shall be according to the range/step salary schedule published and revised by the Bureau of Human Resources, unless and until this schedule (or portion thereof) is rescinded and replaced via the collective bargaining process.

K. Other Benefits

Any other benefits, rights or privileges not specifically addressed by this Chapter, but which are provided by Civil Service Law and Rules having universal and unqualified application to all classified employees are to remain in effect for persons employed in intermittent status.

AUTHORITY: 5 MRSA, Ch. 372 § 7053.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

NON-SUBSTANTIVE CORRECTION: June 4, 1996 - Correction of a conversion error in §4 paragraph H, changing “Use” to “the”.

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 3 Division of Classified Service

Code Me. R. 18-389 Ch. 3 Divisions of the Classified Service {#sec-18-389-ch.-3 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 3}

SUMMARY: This chapter identifies the competitive, non-competitive, and labor divisions of Maine State Service.

1. COMPETITIVE DIVISION

The competitive division of the classified service shall include all positions in the classified service which are not placed in the non-competitive or labor divisions by this chapter.

2. NON-COMPETITIVE DIVISION

The non-competitive division of the classified service shall include those advanced professional and administrative classes which are designated by the Director of Human Resources, the positions of those persons engaged for highly specialized technical or professional services on a part-time or temporary basis, and the positions of certain students and/or interns as defined by Chapter 8, Section 1A(3).

3. LABOR DIVISION

The classes of positions involving unskilled and semi-skilled labor, attendant, domestic or custodial duties shall comprise the labor division.

The Director of Human Resources may, at any time, review the duties performed by any labor division employee. The appointing authority and the employee shall supply any information requested by the Director of Human Resources in connection with this review. If the Director of Human Resources thereafter determines that the duties performed are not properly those of a position in the labor division, the Director of Human Resources shall take such action as deemed necessary to comply with the Civil Service Law and these rules.

AUTHORITY: 5 MRSA Ch. 372 §7036 and §7062.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 4 Classification Plan

Code Me. R. 18-389 Ch. 4 Classification Plan {#sec-18-389-ch.-4 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 4}

SUMMARY: This chapter explains the classification plan and mechanism for its maintenance. It defines allocation and re-allocation of positions, and related actions. It identifies the purpose and use of class specifications and class titles and states the mechanism for appeals of classification.

1. AUTHORITY

The Director of Human Resources shall provide for the preparation, maintenance, and revision of a classification plan for all positions in the classified and unclassified service on the basis of similarity of duties performed and responsibilities assumed. Application of this plan shall result in a classification schedule and the Director shall follow this schedule to allocate or reallocate the position of each covered employee to the appropriate class.

2. MAINTENANCE AND ADMINISTRATION

A. Director of Human Resources - The Director shall be responsible for establishing such necessary rules and/or procedures as may be necessary to maintain one classification plan having consistent interpretation and application statewide, and shall, on his/her own initiative and/or on justifiable request by department head or employee, conduct such surveys and take such action as deemed proper and essential to maintain this plan.

B. Department Heads - Responsibility for adherence to and maintenance of the classification plan shall extend to each user agency, and each user agency shall ensure that all personnel actions, plans and decisions which may alter position assignments and/or effect major or minor organizational change are accomplished in accordance with the intent and purpose of this plan. It shall also be the responsibility of the user agencies to inform the Director of Human Resources of significant personnel actions, whether actual or anticipated, in order that these actions be completed cooperatively and expeditiously.

C. Employees - It shall be the responsibility of individual employees to gain understanding of the classification plan so that they may make accurate and justifiable report to management and/or the Director of Human Resources concerning changes of assignment (other than incidental or temporary ones) experienced in their own positions and/or observed in positions occupied by others which, on the basis of this plan, require corrective action.

3. REVISIONS

A. Reallocations -

1. The classification plan shall be dynamic in the sense that allocations previously made will be re-examined should organizational needs of user agencies justifiably require and/or result in:

a. gradual upward or downward growth of positions by addition or change of duties,

b. addition, deletion or split of agency functions, or

c. new mechanization processes.

2. These changes and subsequent review are subject to the provision that the duties and responsibilities of affected positions have changed to the extent that these positions are no longer similar to other positions assigned to the same class. A review may be conducted whether or not such positions are vacant or occupied.

3. User agencies shall report these changes according to rules and procedures in effect for such purpose. The Director of Human Resources shall investigate and evaluate each such request against standards of the classification plan and shall authorize such reallocations and/or make such other recommendation as deemed essential to update this plan.

4. Unoccupied positions which are reallocated shall be considered vacant positions and shall be subject to applicable recruitment and examination standards.

B. Amendments - Should original allocation or reallocation evaluations result in combinations of position functions not characteristic of any class comprising the then existing classification schedule, and provided alternate position management considerations are not applicable, the Director of Human Resources shall authorize amendment of the classification schedule by addition of another class.

C. Deletions - The Director of Human Resources shall remove from the classification schedule those classes which serve no useful purpose.

D. Approval - No allocation or reallocation shall become effective until funding basis is verified and the Director of Human Resources makes final approval known to the appointing authority and employee(s).

4. CLASS SPECIFICATIONS AND SUPPORTING DOCUMENTATION

A. Class Specifications - The Director of Human Resources shall provide and maintain written specifications for each member class of the classification schedule. Each specification shall be the summary document of all positions comprising the class and have the following characteristics:

1. The class specification shall include class title, brief description of type/level of work performed, examples of entrance and full performance knowledges, skills and abilities, minimum entrance qualifications and other information special to the class.

2. Information provided by the class specification is intended to be representative of several positions and use of particular examples of duties performed or responsibilities held shall not exclude others of similar kind and difficulty not mentioned.

3. The class title assigned to a class specification shall be the official title of each position it represents and this name, or abbreviation approved by the Director of Human Resources, shall be used by the appointing authority on all official records/reports relating to each such position.

B. Job Evaluation Reports/Forms -- The Director of Human Resources shall gather and maintain documentation which describes individual positions and/or establishes their relation to the organization of which they are a part. Such information may include position description forms, position analysis and/or evaluation forms, organizational charts and general research data.

C. Basis for Allocation and Reallocation - The class specification when considered together with the foregoing supportive data shall provide basis for allocation and reallocation actions.

5. NOTIFICATION

Upon completion of each job evaluation process for allocation of new positions or reallocation of existing positions, the Director of Human Resources shall make written notice to the appointing authority and/or employee to report actions taken and decisions reached.

6. APPEALS PROCESS

Any appointing authority or employee, classified or unclassified, who is aggrieved by an allocation or reallocation decision offered by the Director of Human Resources shall have right to appeal the decision before the Civil Service Appeal Board. All appeals of this kind must be filed with the Board within thirty (30) days following notification of the Director’s action.

In the event any request for allocation or reallocation is not processed by the Director within the statutory time limit of forty-five (45) days from date of filing, the requesting party shall have right to appeal to the Civil Service Appeal Board on basis of inaction. All appeals of this kind must be filed with the Board within ten (10) days of the 45 day period allowed by law.

NOTE: Requests for allocation/reallocation shall not be considered properly filed until all job analysis forms and other related information (see Section 4B) required of the Director to analyze the request and make a ruling have been provided.

7. EMPLOYEE RIGHTS

A. An employee who occupies a position which is to be reallocated to a higher level class in the same or similar job family shall be subject to non-competitive examination. This examination shall be promotional in nature and require that:

1. Minimum entrance requirements established for the class to which reallocation is made be met by the employee.

2. Current application be completed by the employee and forwarded to the Bureau of Human Resources.

3. Current service rating be completed by the appointing authority and forwarded to the Bureau of Human Resources.

B. An employee who occupies a position to be reallocated to a lower level class in the same or similar job family shall be considered fully examined and qualified for such position on the basis of work experience at the higher level.

C. An employee who occupies a position to be reallocated to a higher or lower level position in a different job family shall be subject to examination standards in effect for the class, such examination to be conducted on a non-competitive basis.

D. Any employee who occupies a position to be reallocated shall continue status in his/her present class until the reallocation process is completed and an effective date established.

AUTHORITY: 5 MRSA, Ch.372, §§ 7036, 7061 and 7082.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 5 Compensation Plan

Code Me. R. 18-389 Ch. 5 Compensation Plan {#sec-18-389-ch.-5 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 5}

SUMMARY: This chapter defines the compensation plan in terms of fixed salary schedules as adopted, published and amended for covered classes of work in Maine State Service. It identifies regular weekly/hourly rates, presents overtime provisions and gives rates of pay for specific personnel actions such as new-hires, promotions, demotions, transfers, non-standard work designations and project appointments.

1. NATURE OF THE COMPENSATION PLAN

A. Use and Structure of Salary Schedules

The pay of classified and covered unclassified employees shall be on the basis of appropriate weekly schedules or hourly wage rates as adopted and published by the Director of Human Resources for the respective classes of positions. Each schedule shall consist of an entrance rate, intermediate rate or rates, and a maximum rate except for those classes where a flat or single rate is prescribed by the Director. The schedule of weekly salaries and hourly wage rates, including amendments made in accordance with the Civil Service Law and these rules, shall constitute the official compensation plan for all covered classified and unclassified positions.

B. Full-Time Basis of Salary Schedules

1. Standard Conditions

The salaries provided in the standard salary schedules are fixed on the basis of full-time service for work weeks of 40 hours.

2. Non-Standard Conditions

The salary rates for classes of positions specified by the Director of Human Resources as "non-standard", and so identified in the official Salary Schedule, are established on the basis of full-time service for the variable work week required by working conditions or outside operating duty.

C. Application of Salary Amounts

1. Total Remuneration

Any salary paid to an employee in the classified service shall represent the total remuneration for the employee, not including reimbursements for official travel. Except as otherwise provided, no employee shall receive pay from the state in addition to the salary authorized under the schedules provided in the pay plan for services rendered, either in the discharge of ordinary duties, or the performance of any additional duties which may be imposed, or which may be undertaken or performed voluntarily.

2. Subsistence and Maintenance Allowances

Subsistence or maintenance allowances received in lieu of cash shall be considered as part of the total salary. Whenever subsistence or maintenance is allowed in lieu of cash, a schedule of such maintenance together with a statement of the policy and rules to be followed in making charges therefor shall be submitted by the appointing authority for the approval of the Director of Human Resources.

3. Salaries of Professional, Technical, and Administrative Personnel

The salary schedules for professional, technical, supervisory and administrative positions, while generally based on the standard work week, are intended to include compensation for such additional time as may be required to satisfactorily perform the duties of the respective positions.

4. Hourly Rates Allowed

Weekly rates of pay shall be paid except that on certification by an appointing authority that payment of weekly rates for certain classes within his/her jurisdiction is not feasible because of the variable, temporary or intermittent nature of the work, the Director of Human Resources may authorize the payment of hourly rates for the classes concerned. Such hourly rates shall be from among those published in the salary schedule for the particular class of work involved.

2. MAINTENANCE OF THE COMPENSATION PLAN

A. Determination of Salary Amounts

Salary ranges shall be linked directly to the classification plan and shall be determined with due regard to:

1. Ranges of pay for other classes;

2. The relative difficulty and responsibility of work in the several classes;

3. The recruiting experience of the state, and the availability of employees in particular occupational categories;

4. Prevailing rates of pay for similar employment in private businesses in the state and in other governmental jurisdictions;

5. Cost of living factors; and

6. The financial policies of the state, and other economic considerations.

The minimum and maximum rates of pay ranges assigned the several classes shall be those which most nearly reflect these factors.

NOTE: Range differentials are now made in accordance with the Hay Point-Factor Evaluation System. Factors include: know-how, problem solving, accountability and working conditions.

B. Adjustment of Salary Amounts

In advance of the convening of the regular sessions of the legislature as well as at other times, the Director of Human Resources shall make or cause to be made such comparative studies as deemed appropriate of factors affecting the levels of salaries in the classified service. On the basis of information derived from such studies and after consultation with appointing authorities, fiscal authorities of the state, and others, the Director shall recommend appropriate changes in the compensation plan.

C. Effects of Revisions

On the effective date of an amendment to the compensation plan, the rates paid to employees in positions of any class for which a pay range is established or changed, shall be adjusted as follows:

1. Range Determination Increased or Unchanged

If the effect of the amendment is to provide a pay range approximately equal to or higher than that previously in force for positions of the class, the salary rate of any employee who is paid at or below the maximum of the range prescribed for the class shall be adjusted to that step in the newly established range of the class which corresponds to the step at which the employee was paid prior to the amendment.

2. Range Determination Lowered

If the effect of the amendment is to provide a pay range lower than that previously in force for positions of the class, the salary rate of any employee paid at or below the maximum of the range prescribed for the class shall not be adjusted unless an adjustment to the next lower step should be necessary to place the employee at a step in the new range; and in such case the salary rate of any employee paid at a rate in excess of the maximum for the range prescribed for the class shall be reduced to the maximum rate in the range prescribed for the class.

3. ADMINISTRATION OF THE COMPENSATION PLAN

The following provisions assume that funds are available and that expenditures have been authorized by the appropriate fiscal authorities of the state.

A. Beginning Salary

1. Original Appointment

a. The minimum rate of pay for a class shall normally be paid upon appointment to the class; except that:

b. Upon written certification by the appointing authority, that original appointment at one of the salary steps above the minimum rate is justified by exceptional qualifications of the eligible or by lack of available eligibles at the minimum rate, the Director of Human Resources shall consider the pay rates of employees in the same class and agency, and may authorize such appointment provided other eligibles and employees in the class having similar qualifications are offered the same rate.

2. Transfer, Promotion or Demotion

When an employee is transferred, promoted or demoted, the rate of pay for the new position shall be determined as follows:

a. If the rate of pay in the previous position is less than the minimum rate established for the class of the new position, this former rate of pay shall be advanced to the minimum for the class of the new position.

b. If the rate of pay in the previous position is more than the maximum rate established for the class of the new position, this former rate of pay shall be reduced to the maximum step within the range for the class of the new position.

c. If rate of pay in the previous position falls within the range of pay established for the class of the new position, this former rate shall be adjusted to the next higher rate of pay in case of promotion, next lower rate in case of demotion, or remain unchanged in the case of transfer.

NOTE: Prior to implementation of the October 1976 salary adjustment, salary schedules were structured in a manner which provided intervals of approximately five percent (5%) between ranges and steps. To maintain consistency with this past practice, the following policy is now in effect for determining rates of pay in instances of transfer, promotion and demotion:

1. Transfer. Rate of pay remains unchanged.

2. Promotion. Rate of pay adjusted to lowest rate in new class which is at least 5% higher than rate in class from which promoted.

3. Demotion. Rate of pay adjusted to highest rate in new class which is at least 5% lower than rate paid in class from which demoted.

d. Upon promotion, increases of more than one step may be made with the approval of the Director of Human Resources.

3. Reinstatement from Layoff

If a former employee is reinstated from a layoff register in a class in which previously employed, the appointing authority shall make the appointment at the same step in the pay range as the employee had been paid at the termination of service.

4. Reemployment

If a former employee is reemployed in a class in which previously employed, the appointing authority may make an appointment at the same step in the pay range as the employee had been paid at the termination of service.

5. Provisional to Regular Appointment

a. Same or Comparable Class of Work. If a provisional employee subsequently receives an appointment to a position in the same or comparable class after regular certification from an eligible register without interruption in service to the state, the employee shall be eligible to continue in his/her regular appointment at the same rate of pay he/she was receiving as a provisional employee.

b. Lower Class of Work. Upon written recommendation of the appointing authority, a provisional employee who is appointed, by regular certification from an eligible register without interruption in service to the state to a position in a class having a lower salary range, may be appointed at a salary rate within the range which does not exceed one step for each year of continuous service.

6. Project Employment

For employment on a strictly non-recurring project duty, the Director of Human Resources may authorize, as necessary due to recruiting difficulties, a rate of pay which may exceed the maximum of the range provided by not more than 50%. In any case authorized because of the project nature of the work the employee shall not be entitled to vacation, sick leave or holidays.

B. Subsequent Salary Adjustments

1. Merit Increase Awards

a. Salary adjustments within an established range shall be dependent upon specific written recommendations by the appointing authority, which shall be based upon standards of performance as indicated by service ratings or other pertinent data.

b. Ordinarily, increases in salaries shall not be more than one step, and shall not be made more often than once every 12 months, except that an appointing authority may propose salary increases of more than one step or more frequently than once every 12 months upon detailed written statements to the Director of Human Resources specifying the employee's exceptional performance or the unusual employment conditions that make such action necessary.

c. The Director of Human Resources shall review each request for an increase of more than one step in the pay range for the class, giving due consideration to the salary rates paid other employees in the same class and agency, and may deny any request which is judged to be contrary to the best interest of the service.

d. Every appointing authority shall at least once in every 12 months review the work performance of each employee to determine whether the rate of pay of that employee should be advanced to the next step in the range and shall advise the employee in writing of his/her determination, and reasons therefor.

2. Salary Decreases

An appointing authority for just cause may reduce the salary of an employee within the salary range prescribed for the class. In the case of a permanent employee, notice of intention to effect a reduction in pay and reasons for such action shall be given to the employee and to the Director of Human Resources at least seven (7) calendar days prior to the effective date of the reduction. The permanent employee so affected may appeal a reduction in salary under provisions of Chapter 13 as annotated.

4. REQUIREMENT OF AGENCY COMPENSATION PLANS AND PRACTICES

A. Regular Hours of Work.

1. Each appointing authority shall, within 60 days of the effective date of these rules, prepare and submit to the Director of Human Resources for approval a schedule of the regular hours of work for each class of position in each organizational unit under his/her jurisdiction.

2. Such schedule shall, insofar as operational necessities permit, establish a work week of no less than 40 hours.

3. Where such schedules establish a work week in excess of forty (40) hours for an employee or employees in any class of positions not exempted on basis of non-standard or professional, technical or administrative designation, the Director of Human Resources shall consider the need for, and may authorize the compensation of such employee or employees on an overtime basis. Such extended work weeks shall be reported and justified as requested by the Director.

4. Upon the approval of work schedules by the Director of Human Resources, the appointing authority shall post or otherwise distribute to employees under his jurisdiction such schedules.

B. Overtime Provisions

1. The employment and work program of each agency or organizational unit should be so arranged as to reduce to a minimum the necessity for overtime work except under emergency conditions; and

2. Each appointing authority requiring or permitting work beyond the scheduled regular work week shall prepare written regulations governing such overtime which shall include the following:

a. Conditions under which compensatory time off may be accrued, and used, including the policies to be followed at the time an employee is separated from service; and

b. Conditions under which cash payment for overtime is authorized; and

c. Conditions under which neither compensatory time off nor overtime payment in cash will be allowed.

3. Such regulations governing overtime shall be effective when approved by the Director of Human Resources and shall remain in effect until canceled in writing by the appointing authority or the Director.

4. The appointing authority shall post or distribute copies of regulations so approved in order to inform affected employees.

5. Overtime work required shall be reported and justified as requested by the Director of Human Resources.

C. Overtime Compensation Guidelines

1. Eligible employees shall be compensated for authorized overtime by equal time off or by payment in cash at the straight time rate.

2. Compensation for overtime work shall be at rates which the Director of Human Resources deems advisable and these rates shall be based on the regular rates of pay provided in the salary plan.

3. Only such hours shall be compensated as are worked in excess of a forty (40) hour work week.

4. No compensatory time off or cash payment for overtime work ordered by the appointing authority or voluntarily performed by an employee shall be allowed unless regulations are effective as provided under Section 4B of this chapter.

5. Approved overtime accumulated in any calendar year shall ordinarily be liquidated by compensatory time off or, if such action is not practicable, by payment in cash, within six months after the end of the calendar year, upon approval by the Director of Human Resources and certification by the State Budget Officer that funds are available.

6. Employees who occupy professional, technical, and administrative positions specified by the Director of Human Resources shall not be eligible for overtime compensation.

7. Employees whose work week under normal conditions of employment is irregular and who are compensated on the basis of a "non-standard" work week, as specified by the Director of Human Resources and identified in the Salary Schedule, shall not be eligible for credit and granting of overtime compensation.

8. Complete records of overtime shall be maintained by each department head and no additional overtime will he allowed when accrual for time off purposes has reached eighty (80) hours, until such accrual shall have been reduced by time off or by payment in cash.

9. No allowance of any kind shall he provided for overtime work not authorized by the appointing authority or his properly constituted representative.

NOTE: In 1974, the provisions of the Fair Labor Standards Act (FLSA) governing the payment of time and one-half rate for overtime work were extended to include state employees. The Supreme Court of the United States, in 1976, ruled this provision of the Act unconstitutional, and States were no longer obligated to compensate overtime hours at the time and one-half rate. The Personnel Board, however, ruled that it was in the best interest of the State to retain FLSA definitions/provisions governing overtime hours and continued the practice of paying time and one-half rates for overtime worked. Thus, these provisions, including exemption determinations under FLSA (classes ruled to meet definition of Executive, Administrative or Professional) remain in effect together with these rules.

AUTHORITY: 5 MRSA Ch. 372 §§ 7036 and 7065; Ch. 147, Part D, P&SL, 6-14-76.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 6 Applications and Examinations

Code Me. R. 18-389 Ch. 6 Applications and Examinations {#sec-18-389-ch.-6 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 6}

SUMMARY: This chapter provides information and procedure with respect to the character and content of examinations and related announcement/exam administration practices. It gives requirements for admission, outlines exam scoring and notice procedures, and presents the mechanism for appeal of examination results.

1. CHARACTER OF EXAMINATIONS

A. Competitive Examinations: Original Appointment

1. Job-Related Components

All competitive examinations for positions in the classified service shall relate to those matters which will fairly test the capacity and fitness of the persons examined to discharge efficiently the duties of the office or employment sought by them. Any means or measures may be used which are reasonably well calculated to test the fitness of candidates to become employees in positions of the class for which the examination is held. Such means or measures may include:

a. Any required statement or any investigation of education, experience, or record of accomplishment;

b. Any test of knowledge, skill capacity, intelligence, or aptitude; and

c. Any inquiry into the moral character, or any other quality or attribute which, in the judgment of the Director of Human Resources, seems desirable.

2. Non-Discrimination Guidelines

No test or question in any application or examination shall be constructed to call for or lead to disclosure of any information concerning any political, religious, fraternal, or racial affiliations, preferences, or opinions. Any disclosure thereof shall be discountenanced, and any such information which may nevertheless be revealed, shall be disregarded. The foregoing shall not, however, prevent inquiry as to whether the applicant, employee, or eligible advocates or is a member of an organization which advocates overthrow of or resistance to our form of government by force.

B. Competitive Examinations: Promotional Opportunity

The tests in any examination for promotion shall be of the like kind and character to the corresponding tests in any examination for original appointment to positions of the same class, and the same standards shall be applied to the rating thereof. In addition to other factors, promotional examinations shall take into consideration the quality and length of service.

C. Open Continuous Examinations

When necessary to meet continued requirements for filling positions and when there is not available a sufficient number of applicants for a class, the closing date for any examination may be indefinite and applicants may be examined continuously in such manner and at such times and places as the Director of Human Resources may provide. The closing date for any open continuous examination may be set at any time by the Director, but notice of this action shall be posted at least ten days prior to the effective date of the action.

D. Non-Competitive Examinations

1. For positions involving unskilled labor or domestic, attendant or custodial work, when the character or place of the work or other conditions of employment make it impracticable to supply the needs of service by adherence to the recruitment and examination provisions of this rule, the Director of Human Resources may adopt or authorize the use of such other procedures as determined to be appropriate in order to meet the needs of the service, while assuring the selection of such employees on the basis of merit and fitness.

2. Such procedures may include the examination of applicants singly or in groups, at periodic intervals, at the place of employment or elsewhere, after such notice as the Director of Human Resources considers adequate; the registration of applicants who pass a non-competitive examination or submit satisfactory evidence of their qualifications; or any variation or combination of the foregoing, or other suitable method. Examinations so given shall conform with and utilize such methods, forms, and techniques as the Director may require.

E. Alternative Examination Procedure

The Director of Human Resources may waive the established examination process to enable persons with severe disabilities to participate in the State of Maine's Special Appointment and Supported Employment Programs. In place of the established examination process, participants in the Special Appointment and Supported Employment Programs will be appointed to positions on an acting capacity basis for a trial employment period in accordance with the provisions and requirements of' Chapter 8, Section 6 of the Civil Service Rules.

2. ANNOUNCEMENT OF EXAMINATIONS

A. Content

1. Announcements shall specify the title and salary range of the class for which the examination is announced; the nature of the work to be performed; the experience and training desirable as preparation for performance of the work of the class; the time, place, and manner of making application; the necessary special qualifications established for admission to the examination; and other pertinent information consistent with the Civil Service Law and these rules.

2. The announcements of promotional examinations shall indicate, in addition to the above information, the organizational unit or units for which the examination is given.

B. Examination Notice Procedure

1. Public notice of examinations shall be given at least two weeks in advance of the last date for filing of applications by means of announcements posted on the official bulletin boards of the department. Announcements of all examinations shall be given such other publicity as the Director of Human Resources deems warranted in the interest of attracting adequate numbers of qualified applicants.

2. In the case of promotional examinations, announcements shall be supplied to each appointing authority under whom there are employees eligible to compete therein, and it shall be the duty of such appointing authority to call such notices to the attention of all employees of his department eligible therefor.

C. Postponement or Cancellation of Examinations

In the event a sufficient number of qualified candidates has not made application for an examination, either open competitive or promotional, the Director of Human Resources may postpone the last filing date and the date of examination, or cancel the examination, and shall, in such cases, provide suitable notice thereof.

3. APPLICATION AND ADMISSION

A. The Application Form

Applications shall be made on forms prescribed by the Director of Human Resources. Such forms shall require information covering experience, training, and other pertinent information as may be called for in the examination announcement. Applications shall be signed by the applicant and the truth of all statements contained therein certified by such signature.

B. Admission to Examinations

1. Application Review

a. Persons who submit applications on or before the last date for filing and whose applications clearly show that the applicants meet the requirements for admission to the examination as specified in the official announcement shall be admitted to compete in the examination for which they are applying.

b. Where doubt exists as to whether an applicant meets the requirements for admission to an examination, the Director of Human Resources may authorize conditional admission to the examination, but such action shall not be construed as entitling the applicant to become eligible for certification or appointment until the circumstances leading to the conditional acceptance are clarified to the Director’s satisfaction.

c. The Director of Human Resources may accept late applications provided that acceptance does not impede the progress of establishment of an eligible register.

2. Applicant Notification

Each applicant whose application has been accepted for any examination shall be notified by mail, of the date, time and place of the examination and such notice shall be authorization to take the examination. No person shall be permitted to take any examination without such an authorization or other satisfactory evidence of acceptance or conditional acceptance by the Director of Human Resources.

4. ELIGIBILITY TO COMPETE IN EXAMINATIONS

A. Open Competitive Examinations

1. Competitive examinations for original appointment to classified positions in the state service shall be open to all applicants who are citizens of the United States, who are residents of Maine immediately preceding date of employment and who meet reasonable standards of requirements fixed by the Director of Human Resources with regard to experience, character, age, education, physical condition, and such other factors as may be held to relate to the ability of the candidates to perform with reasonable efficiency the duties of the position.

2. No application shall be rejected solely because the applicant lacks educational qualifications, except where such educational qualifications are reflected in necessary registrations such as to practice law, medicine, or engineering, or where such educational requirements are set as standards by federal agencies making grants-in-aid or otherwise contributing to state programs.

3. In the case of classes of positions requiring professional, technical, or unusual qualifications, eligibility for competitive examinations may be extended by the Director of Human Resources to non-residents who are citizens of the United States and otherwise qualified.

B. Promotional Examinations

Promotional examinations shall be open to all permanent or probationary employees or persons on layoff registers who meet the requirements described in the foregoing rule, and who are serving in or on layoff from the agency or other organizational unit for which the examination is being held.

C. Cause for Disqualification

The Director of Human Resources may reject the application of any person for admission to an examination, or refuse to test any applicant, or refuse to certify the name of any eligible for employment who:

a. Has been found to lack any of the established qualifications for the position for which he/she applies or for which he/she has been tested;

b. Has made false statement of any material fact or has practiced or attempted to practice deception or fraud in his/her application or-examination;

c. Is medically or physically unfit to perform effectively the essential duties of the position, and documentation exists to support this claim;

d. Has unsatisfactory record of employment, public or private, which provides a reasonable doubt as to the person's ability to perform satisfactorily the duties of the position, and documentation exists to support this claim; or

e. Is otherwise in violation of Civil Service Law or these rules.

2. The Director of Human Resources may establish procedures concerning investigation of the character, reputation and experience/training of applicants, but shall take reasonable precaution as to the confidentiality of such investigation, and in addition shall seek and consider positively any evidence of rehabilitation of the person with respect to disqualifying evidence reported.

3. Any determination of disqualification shall be reported in writing to the person, applicant, or eligible, together with a statement expressing a right to appeal such determination to the Director of Human Resources.

4. CONDUCT OF EXAMINATIONS

A. Examinations shall be held at such times and places as, in the judgment of the Director of Human Resources, most nearly meet the convenience of applicants, practicability of administration and needs of the service. The examination shall be conducted either by the Director or by persons designated by the Director. No person whose application has been accepted for any examination shall be entitled to take such examination at any date, time, or place other than those stated in the announcement, except as the Director, for proper cause, may authorize. All reasonable precautions shall be taken to keep secret the identity of applicants.

B. Persons under such physical disability as not to make them ineligible by reason thereof, shall be examined in such manner as will fairly test ability to perform the duties of the position, notwithstanding such physical disability.

6. RATING OF EXAMINATIONS

A. Appropriate scientific techniques and procedures shall be used in rating the results of examinations and determining the relative ratings of the competitors. In all examinations the minimum ratings by which eligibility may be achieved shall be set by the Director of Human Resources. The final examination grade may be based on all factors of the examination, including educational requirements, experience and other qualifying elements as shown in the competitor's application or other verified information. The final earned rating of each competitor shall be determined by averaging the earned ratings on each part of the examination in accordance with the weights established for each part prior to the date of the examination. All competitors shall be required to obtain at least a minimum rating in each part of the examination in order to receive a final passing grade or to be rated on the remaining parts of the examination.

B. The Director of Human Resources may announce, in advance of the establishment of an eligible list, the maximum number of competitors who shall have their names placed on the list, or who shall be permitted to compete in any of the separate parts of the examination. Under such procedure, those considered as having passed, or as being permitted to take the remainder of the examination, shall be the set number of candidates scoring highest in the examination or part thereof.

C. The results of examinations of competitors who fail to qualify as eligibles for the class for which the examinations were taken, may, with the approval of the Director of Human Resources, be rated with reference to their eligibility for a lower class for which an examination is in process, in case the competitors have signified their willingness to accept appointments to positions of such eligible register for such lower class.

7. NOTIFICATION OF RESULTS

All persons competing in any examination shall be notified in writing of their rating on the examination. The examination papers and records of ratings of competitors shall be held as official records of the Bureau of Human Resources. Reports of character and other investigations made by the Bureau of Human Resources, however, shall be kept confidential.

8. RE-EXAMINATION

Applicants who fail to achieve a passing score may be re-scheduled as follows, provided that the position for which application has been made is open to application and examination:

1. Written examinations - No sooner than three months following the original date of taking the examination.

2. Performance examinations - Typing, stenography, data processing: immediate arrangements may be made for re-examination, no sooner than one month following failure to achieve a passing score.

3. Physical aptitude examinations and oral boards - The next succeeding series of the examinations.

4. APPEALS FROM RATINGS

A. Any competitor may appeal to the Director of Human Resources for reconsideration of his/her rating in any examination within thirty (30) calendar days after the date notice of rating is mailed, by written request to the Director for review of such rating. The Director shall grant such review in the event that satisfactory reasons are presented therefor, and may change the rating of the competitor if, upon such review, it is determined that an error was made in the original rating. If such review shall disclose errors affecting the ratings of other competitors, then the review may be extended to the ratings of such other competitors.

B. No change made in the ratings of any competitor shall invalidate or in any way affect any appointment already made as a result of any original rating which may have been changed pursuant to this Chapter.

C. During the period an announced examination is being held open for continuous recruitment an applicant who has taken the examination will not be permitted to inspect the test booklet. The applicant may, however, be given information by the Bureau of Human Resources as to areas of weakness indicated.

10. EXAMINATIONS FOR RETURNING SERVICEMEN

A. Whenever a promotional examination for a class shall have been given during the absence on MILITARY LEAVE of a permanent employee eligible to take such examination, such employee shall have the right to take a promotional examination for such class, provided application therefor is made to the Director of Human Resources within 60 days from the date of the reinstatement of the employee. The employee shall be given the same examination as given at the original promotional examination or the equivalent thereof. If the employee attains a final rating above passing, his/her name shall be placed upon the original promotional register made from the original promotional examination in the same manner as if he/she had taken the original promotional examination, provided such register has not expired. If the employee attains a final rating which is equal to or higher than that of the lowest ranking person certified to an appointing authority from the original promotional register, the name of the employee shall be certified to the appointing authority who may appoint him/her to a position which has been already filled by a person appointed from the original promotional register or from the original promotional register modified as above provided. An employee so displaced shall have his/her name placed upon the appropriate reemployment register, and shall be restored to the position which he/she held when promoted.

B. Whenever, during the absence in military service of a person who was a provisional employee at the time of entrance into military service, an examination was held for the class in which he/she was employed, such person, if qualified, shall have the right to take an examination for the same class of position, provided application therefor is made to the Director of Human Resources within 90 days from the date of his/her honorable discharge or other form of release by proper authority indicating that his/her military or naval service was satisfactory; and provided further that the eligible register established by an examination given during his/her absence is still in effect. The employee shall be given the same examination as given at the original examination or the equivalent thereof. If the employee attains a final rating above passing, his/her name shall be placed upon the original register made from the original examination in the same manner as if he/she had taken the original examination.

AUTHORITY: 5 MRSA c. 65, c. 372 §§ 7036, 7051, 7052, 7054, 7055, 7062, 7063 and 7064.

EFFECTIVE DATE: January 9, 1972.

AMENDED: November 15, 1992.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 7 Eligible Registers

Code Me. R. 18-389 Ch. 7 Eligible Registers {#sec-18-389-ch.-7 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 7}

SUMMARY: This chapter identifies the types of registers and the manner in which they are maintained and used. It presents a mechanism for adding and removing names, and specifies the normal duration of registers.

1. CLASS REGISTERS

A. Maintenance

The Director of Human Resources shall establish and maintain eligible registers necessary to carry out the purpose of the Civil Service Law and Rules. In general:

1. Eligible lists shall be by class of employment and shall be statewide in application except where these rules or action of the Director of Human Resources specifically makes provision for establishment of lists by geographical area, agency or organizational unit.

2. Names of eligibles shall be placed on registers in the order of their final earned rating plus preference credit as allowed by law.

3. In the case of a tie between a veteran and a non-veteran, the name of the veteran shall be placed ahead of that of the non-veteran.

4. In the case of other ties in final ratings, names shall be placed on the register in the order of rating earned in the part of the examination given the greatest weight. Any remaining ties shall be broken by arranging names alphabetically.

B. Use of Class Registers

1. Competitive Appointments

All vacancies in the competitive division of the service shall be filled by certification and appointment from eligible registers.

NOTE: In the absence of an appropriate class register, the Director of Human Resources may authorize other appointments as provided by Chapter 8, Section 3.

2. Non-Competitive and Unclassified Service Appointments

The Director of Human Resources, upon request, shall make the names of job candidates from eligible lists available to appointing authorities for the purpose of making appointments to positions in the unclassified service and in the non-competitive division of the classified service.

C. Duration of Class Registers

1. The Director of Human Resources shall determine the period during which all eligible registers shall remain in effect, but this period shall not be more than three years.

2. When an eligible register exists for any class and the Director of Human Resources deems it necessary to establish another such register for the same class, the existing register ordinarily shall be canceled.

3. Layoff and reemployment registers shall be deemed to be in continuous existence. The eligibility of individual names placed on such a register shall expire one year after placement on the register but the Director of Human Resources may extend such eligibility for an additional period or periods, provided, however, that no such extension shall continue the name of any individual on such a register to a date beyond three years after placement on the register.

4. MERGING OF CLASS REGISTERS

The Director of Human Resources may combine a new and an existing register by placing the names of all eligibles in new order of final ratings. If the higher rating was made on the examination to establish the older register, the eligible shall continue in such rank on the combined register only for the period for which the older register was established. Thereafter, rank will be determined by the rating in the new examination.

3. SUB-DIVISIONS OF CLASS REGISTERS

A. Layoff Register

1. Maintenance

Layoff registers shall be established by agency organizational unit or, as the Director of Human Resources deems appropriate, on an agency or state-wide basis. Layoff registers shall contain the names of all permanent or probationary employees laid off, or who have been served official notice of impending layoff at a definite effective date, from other than a seasonal, project, intermittent or similar position having a known or expected termination date. Names shall be placed on the layoff register in order of seniority as determined under the provisions of Chapter 12.

NOTE: Employees laid off, or who face an impending layoff may, from date notice is made, file application and be examined for any class other than that from which laid off and for which they qualify, whether or not such class is open to general recruitment and examination. Placement on these additional eligible registers shall be without layoff status.

2. Special Provision

Upon written application approved by the Director of Human Resources, a permanent or probationary employee whose application for reinstatement prior to expiration of approved leave of absence has been denied by his/her appointing authority may have his/her name placed on the appropriate layoff register for the unexpired period of the leave of absence. Names shall be placed on the layoff register in order of seniority as determined under the provisions of Chapter 12.

B. Agency Promotional Registers

1. Maintenance

Agency promotional registers shall consist of the names of all permanent and probationary persons employed in the agency or organizational unit or employees on layoff registers from the agency or organizational unit who have passed the agency promotional examination for the class for which the list is established. Names shall be placed on an agency promotional register in the order of final earned ratings.

2. Special Provisions

Agency promotional registers shall be established by organizational unit when such subdivision has been approved in accordance with Chapter 12 prior to the date of the promotional examination.

C. Statewide Promotional Registers

Statewide promotional registers shall be established by class of employment and shall consist of the names of all persons employed by the state or on a layoff register in an eligible class as determined by the Director of Human Resources, and who have passed the promotional examination for the class for which the statewide promotional register is established. Names shall be placed on a statewide promotional register in the order of final earned ratings.

D. Open Competitive Registers

1. Maintenance

Each open competitive register shall be established by class of employment and shall consist of a list of the names of all persons who have passed the examination for the class for which the open competitive register is established. Names shall be placed on an open competitive list in the order of final earned ratings plus preference credit as allowed by law.

2. Exception

Persons who are receiving retired pay benefits through the Maine State Retirement System shall not be eligible for placement on an open competitive register.

E. Reemployment Register

1. Applications for Reemployment. The Director of Human Resources shall consider the recommendation of the last appointing authority before approving applications for former employees, and shall disapprove each application where the quality of service was unsatisfactory as evidenced by a service report submitted by the last appointing authority.

2. Maintenance of Reemployment Registers. A reemployment register shall contain the names of all permanent or probationary employees laid off from the class of employment and the names of former permanent or probationary employees in the class whose written applications made within three years of separation in good standing, are approved by the Director of Human Resources. Names shall be placed on a reemployment register in order of combination of quality of service and previous seniority.

3. Exception. Persons who are receiving retired pay benefits through the Maine State Retirement System shall not be eligible for placement on a reemployment register.

4. REMOVAL OF NAMES

In addition to the causes for disqualification stated in Chapter 6, Section 4C, or in the Civil Service Law or elsewhere in these rules, the Director of Human Resources may remove names from eligible registers, permanently or temporarily, for any of the following reasons:

A. Appointment through certification from such list to fill a permanent position.

B. Appointment to fill a permanent position through certification from another register, or from a register for another class at the same or higher salary. Any person whose name is so removed may have his/her name restored for the duration of such registers other than the one from which appointment was made, by making written application for such action to the Director of Human Resources.

C. Failure to respond within five days to a written inquiry of the Director of Human Resources or appointing authority relative to availability for appointment.

D. Failure to respond within two days to a telegraphed inquiry from the Director of Human Resources or appointing authority relative to availability for appointment.

E. Declination of appointment under such conditions as the eligible previously indicated as being acceptable.

F. Failure to report for duty within the time prescribed by the appointing authority.

G. Expiration of the term of eligibility on the eligible register.

H. Failure to maintain a record of the current address at the Bureau of Human Resources. For this purpose, the return of a letter by the postal authorities if properly addressed to the last address on record, shall be deemed sufficient grounds for such removal of the name from the eligible register.

I. Upon certification three times to the same or different appointing authorities if not appointed.

J. In the case of agency promotional registers, appointment or transfer of an employee to a new agency or another duly established organizational unit.

K. In the case of promotional registers, upon termination except by layoff in the state service.

5. RESTORATION OF NAMES

A. An eligible whose name is removed from an eligible register, may make a written request to the Director of Human Resources for the restoration of his/her name to such register for its duration. Such request shall set forth the reasons for the conduct resulting in removal of the name from the register, and shall further specify the reasons advanced for the restoration of the name. The Director, after full consideration of the request, may restore the name to the eligible register, or may refuse such request. The eligible shall be notified of the Director’s action.

B. A former employee reemployed in the state service shall have his/her name restored to any existing statewide promotional register from which it was removed because of separation from the state service, provided the Director of Human Resources approves the employee’s written application for such action.

C. A former employee reemployed in the state service shall have his/her name restored to any existing agency promotional register from which it was removed because of separation from the state service, provided written application for such action is approved by the Director of Human Resources.

D. A probationary or permanent employee whose name has been removed from an agency promotional register because of transfer or original appointment with probationary or permanent status under a new appointing authority may have his/her name placed on the agency promotional register for the same class in the new agency, provided written application, made by the employee during the duration of the register from which the name was removed, is approved by the Director of Human Resources.

AUTHORITY: 5 MRSA Ch.372 §§ 7036, 7052, 7053, 7062 and 7064.

EFFECTIVE DATE: January 14, 1979.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 8 Certification and Appointment

Code Me. R. 18-389 Ch. 8 Certification and Appointment {#sec-18-389-ch.-8 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 8}

SUMMARY: This chapter presents rules which govern appointments made to position vacancies in the competitive and non-competitive divisions of the classified service. It includes procedures for appointments made by certification from class registers and for appointments resulting from nominations submitted by appointing authorities. Provisions are also included for: Apprentice/Trainee and Conditional Appointment referrals which may be authorized by the Director of Human Resources; Acting Capacity assignments; and the reemployment of retired persons.

1. FILLING OF VACANCIES

A. Appointment Procedure - Competitive Division

Provided layoff and recall provisions are met and satisfied, appointments to position vacancies shall be made from the following sources:

1. Class Registers

Except for appointments to project or intermittent position vacancies, appointments which require the service of an employee for a period of time in excess of three months shall be accomplished by certification from class registers.

When a required class register is not available or is incomplete, the provisions of Section 2C or 3A of this chapter shall apply.

2. Nominations by Appointing Authority

The appointing authority may submit a name in nomination when the appointment is to a project or intermittent position vacancy or when the appointment involves an acting capacity assignment for three months or less. The qualifications of persons so nominated will be reviewed by the Director and persons found qualified will be authorized appointment to State Service under the conditions specified.

Nominations may also be made to reappoint an agency employee who voluntarily transfers from one position to another position of that agency which is assigned to the same class or to reappoint an agency employee who voluntarily demotes to a lower-level class within that agency. A transfer or demotion action will be reviewed by the Director of Human Resources and, provided it is not prejudicial or unfairly detrimental to the employee, reappointment will be authorized under the conditions specified.

3. Apprentice/Trainee Referrals

When names are not available from a class register, the Director of Human Resources may refer persons found eligible to participate in agency-sponsored training programs which have been established and authorized for this purpose.

4. Conditional Appointment Referrals

When permitted by law, the Director of Human Resources may waive a particular license, certification, registration or degree which is required for register certification and/or nomination to a given position vacancy. Such waiver shall be made only when deemed necessary to achieve the results intended by the application of the Civil Service Law and these rules. Persons who are referred and/or nominated as a result of such waiver shall be required to obtain and provide evidence of full qualification within a time period specified by the Director.

B. Appointment Procedure - Non-Competitive Division

Recruitment, examination and selection activities directed to position vacancies in the non-competitive division shall be the delegated responsibility of the individual appointing authority. These delegated activities shall be reviewed by the Director of Human Resources to ensure compliance with merit standards and affirmative action/equal employment opportunity objectives. The qualifications of persons nominated to non-competitive vacancies will also be reviewed by the Director and persons found qualified will be authorized appointment to State Service under the conditions specified.

C. Requisition Form - Competitive and Non-Competitive Divisions

When an agency desires to make an appointment to a position vacancy, the agency shall notify the Director of Human Resources by means of a prescribed requisition form. Appointments to vacancies which involve the acting capacity assignment of an agency or State employee for three months or less will be excepted from this requirement.

2. USE OF CLASS REGISTERS

A. Methods of Certification

Methods of certification shall identify which persons on the class register are eligible for referral as follows:

1. Standard Method

Persons on the class register, as available, and progressively in this order:

First, persons who are employed by the agency where the vacancy occurs and who have examination and referral preference for promotion in the career-service;

Second, employees of other state agencies who have examination and referral preference for promotion in the career-service;

Third, persons seeking reemployment; and

Fourth, non-state employees, unclassified service employees, project employees and other state employees who are not provided examination and referral preference for promotion in the career service.

Progression from the first source to the second, third or fourth source will not take place unless necessary to reach a full complement of persons to be certified. Any agency, state or non-state employee who, by written statement, does not desire the location and/or hours of work requirement (less than full-time, shift, etc.) for the given vacancy will be excluded.

2. Agency Promotional Method

Only persons on the class register who are employed by the agency where the vacancy occurs and who have examination and referral preference for promotion in the career-service. Of these persons, those who, by written statement, do not desire the location and/or hours of work requirement of the given vacancy will be excluded.

3. Statewide Promotional Method

All persons on the class register who are employed by an agency of State government and who have examination and referral preference for promotion in the career-service. Of these persons, those who, by written statement, do not desire the location and/or hours of work requirement of the given vacancy will be excluded.

4. Open Competitive Method

All persons on the class register (by score) except those who do not desire the location and/or hours of work requirement of the given vacancy.

5. Selective Method

Only persons On the class register who evidence the necessary special qualifications particular to the given vacancy. These necessary special qualifications, together with justification thereof, must be reported in writing by the agency (at the time the requisition form is filed) for review and approval by the Director of Human Resources. A selective certification shall be made by the Director only when such action is justified by unique and compelling circumstances.

The selective method may be used in combination with the standard, agency promotional, statewide promotional or open competitive method as defined above.

An agency request for agency promotional, statewide promotional or standard certification shall be reviewed by the Director of Human Resources and, when in the best interest of State Service, the Director may recommend or require an alternative to the method requested.

An agency request for open-competitive or selective certification shall require written justification and approval before a certification is made.

When a method of certification is not specified by the agency, a standard certification will be made.

B. Complete Certification

1. Rule of Six

Whenever register size and composition permit, a certification to a given vacancy shall include six persons. These six persons shall be selected by score, in accordance with the method of certification being made. If a full complement of six persons is not available, a certification shall include that number of persons as close to six as possible. Should this certification contain or result in at least three persons who wish to be considered for the given vacancy, it shall be considered a complete certification. Provided additional names are available on the class register, replacements for persons who voluntarily decline appointment will be made until this minimum of three is reached.

2. Tie Scores

In cases where more than one person has the same examination score, this complement of six persons may be based on fewer than six different scores. When the "sixth" or end score repeats, the "sixth" shall consist of all persons who have this common score

C. Incomplete Certification or Register

Whenever, in accordance with the method of certification, location and hours of work involved, the number of persons on a class register who are available and interested in the position vacancy is less than three, the agency may:

1. Make its selection from this number;

2. Request an alternative method of certification; or

3. Be recommended or required to withdraw and hold its requisition until more names are added.

When requested to make a certification from an incomplete register, the Director of Human Resources may consider the certification of fully qualified persons who may be available on other class registers.

D. Referrals to Multiple Vacancies

One certification may be made to service multiple vacancies in a given class provided all of these vacancies are at the same work location and involve the same working conditions. When register size and composition permit, the complement of persons normally certified to a singular vacancy will be supplemented by one additional referral for each additional vacancy so reported.

E. Order of Certification

Certification from a class register shall be made in the same order as requisitions are received.

F. Concurrent Certification

Any person certified to a position vacancy in one agency shall be eligible for referral to other vacancies in that agency or a different agency for a maximum of three referrals concurrently. This maximum of three concurrent referrals will be waived by the Director of Human Resources when this maximum referral would exclude any person from consideration for a promotional vacancy in his or her own agency or when persons at maximum referral must be included with others on the register in order to fill a vacancy requisition.

Referral to more than one vacancy concurrently shall be dependent upon the methods of certification requested, the location and hours of work requirements of the vacancies involved and examination scores.

G. Extra Names

If requested by the appointing authority, a regular certification may be supplemented by referral of employees on the given register who have notified the Director of Human Resources of a desire to transfer to another agency; or by referral of employees on the given register for whom appointment would mean voluntary demotion. Such employees need not be contacted for interview but if any one of these employees is contacted for interview, the others shall be contacted as well.

H. Removal of names

Any person included on a certification may be removed from that certification by the appointing authority involved, provided the appointing authority forwards written reason for this action to the Director of Human Resources, and this reason satisfies the Director that removal is warranted.

When removal is warranted, the appointing authority shall notify the person of this removal and the reasons thereof. A. copy of this notice shall be provided to the Director. An additional person shall be certified, if available, to replace any person so removed.

I. Selection Procedure

When names are certified from class registers the appointing authority shall, within 21 days from the date such certification is made:

1. Contact and interview each person so certified;

2. Make a selection from among those who are interested and available; and

3. Make written notification to persons selected and not selected.

The requirement to contact and interview each eligible shall be waived when certification is made to accomplish an acting capacity assignment; and the requirement to make a selection shall be waived when the number of persons interested/available is less than three.

3. ACTING CAPACITY ASSIGNMENT

Temporary/emergency employment needs and the replacement of employees on authorized leave of absence shall be accomplished by means of acting capacity assignments made and authorized as follows:

A. Appointment Procedure (Competitive Division)

1. Open Appointment (duration of three months or less)

The appointing authority may appoint any State employee deemed capable of performing the full duties and assuming the full responsibilities of the vacant position. In the absence of such employee, a non-state employee who meets Bureau of Human Resources qualifications may be appointed.

2. Register Appointment (duration of more than three months)

Except for acting appointments that are made under the Special Appointment and Supported Employment Programs, established register and certification procedures shall apply, but all persons certified need not be contacted for interview. In the absence of a suitable register, an open appointment may be made as in "l" above; however, during the three-month period a register will be established and the register appointment procedures will be followed to fill the position for the remainder of time necessary. Acting appointments made under the Special Appointment and Supported Employment Programs are subject to the provisions of Section 6 of this Chapter.

This requirement to establish and use a register may be waived by the Director of Human Resources in situations where such a register would be difficult to establish.

Persons who specify interest in either permanent or temporary employment will be certified to full time vacancies to be filled by acting capacity appointment. Refusal will carry no penalty.

Only persons who specify interest in temporary or less than full-time employment will be certified to part-time vacancies to be filled by acting capacity appointment.

3. Maximum Duration

Acting capacity, assignment shall not exceed one [1] year; except that individual extensions may be granted by the Director of Human Resources when unusual circumstances warrant such extension.

4. Authorization for Release

Approval of and authorization for the release of a career-service employee to accept an acting capacity assignment shall be the decision of the employee's appointing authority. Record of this decision shall be maintained by the appointing authority and a copy of the approved release shall be provided to the employee and the Director of Human Resources when acting capacity appointment is made.

5. Rights

a. Register and recall provisions for persons on layoff who serve on an acting capacity basis will be unaffected by such service.

b. The register status of persons selected from a class register to serve on an acting capacity basis will be unaffected by such service. Names will be retained on that register and referred to fill vacancies in accordance with established certification policy and procedures, including penalty for refusal.

c. In no event may an agency or State employee acquire or earn benefits, status or seniority in the class held on an acting capacity basis. Tenured service (seniority) of an agency or State employee on acting capacity assignment will be credited to the official career-service position and class from which release is made, and the benefits realized by this position will be continued. Telephone, uniform maintenance or other, special allowance which may be applicable to a position shall be provided the employee who holds that position on an acting capacity basis.

d. Acting capacity appointments of persons selected from reemployment or open competitive sources shall be non-status with respect to tenured service (seniority credits), layoff rights and eligibility for career-service examinations. Holiday, vacation and sick leave benefits shall be provided only if employment in acting capacity exceeds three months. Effective date for these benefits shall be the first work day following this three-month period.

e. Persons appointed to acting capacity assignment who are on layoff registers shall resume accrual of leave credits, eligibility for holidays and other benefits, effective the date acting capacity appointment is made.

6. Completion of Assignment

An acting capacity assignment will be completed:

a. On the ending date specified or reported, if made to address a temporary/emergency employment need;

b. With the return of the employee, if made to replace an employee on authorized leave of absence, or at an earlier time determined by the appointing authority; or

c. Separation of the incumbent. (Position will then be filled through normal certification or nomination procedure).

When an acting capacity assignment is completed, the agency or state employee shall be returned to his/her career-service position, and persons appointed from other sources shall be terminated.

7. Compensation

a. If to a class in a higher pay range, as if promoted.

b. If to a class in the same, or lower pay range, continue at regular position rate.

c. If from reemployment or open competitive registers, as if an original appointment.

d. The rules and regulations governing eligibility for overtime compensation, rate of overtime compensation and holiday pay shall be those in effect for the class to which acting capacity appointment is made.

8. Merit Evaluation

Agency or state employees on release from a career-service position and class to serve on an acting capacity basis will continue their established anniversary dates. Any merit increase awarded shall to applicable to both the position and class from which release is made and the position and class to which acting capacity appointment is made.

9. Records

a. No changes to official employee work records will be necessary or made when acting capacity assignment involves a career-service employee.

b. Requisition, certification and/or appointment procedure shall apply when a non-career service employee is to be appointed, or when certification from a class register is required.

c. Record of the acting capacity assignment of career-service employees shall be reported to the Director of Human Resources on a form prescribed for this purpose.

B. Appointment Procedure (Non-Competitive Division)

All provisions for Acting Capacity appointments to the competitive division shall apply to the non-competitive division, except those which set forth procedure for certification from a class register.

4. REEMPLOYMENT OF RETIRED PERSONS

Persons receiving retired pay benefits through or from the Maine State Retirement System shall be eligible for further state employment on a temporary, emergency or project basis only, and such employment shall not exceed 90 working days in any calendar year.

Persons receiving benefits through or from the Maine State Retirement System as the surviving spouse of a retired person are exempted from these restrictions, and may be placed upon any register for which they are eligible in accordance with provisions of Chapter 7.

5. AFFIRMATIVE ACTION

A. Authority and Purpose

The Director of Human Resources shall have authority to take any available and appropriate form of affirmative action when making a certification from a class register. The purpose of this affirmative action shall be to assure that members of particular groups who are underutilized, underrepresented or adversely affected by selection procedures, but who have qualified for placement on a class register, shall be included with the pool of persons from which the selection is made.

B. Basis for Affirmative Action

Such authority may be exercised when:

1. Statistical disparities between the work force representation and the labor market representation of groups historically excluded from or limited in employment due to sex, handicap or minority status are identified and documented; or

2. Analysis of testing procedures for placement on a class register documents an adverse effect on a particular group identified by sex, handicap, age, national origin or minority status.

C. Procedure

1. Requests by Appointing Authority:

When an agency's request to fill a vacancy indicates an underutilization or underrepresentation, the Director of Human Resources shall make an affirmative action certification, subject to the following conditions:

(a) If the normal certification procedure includes members of groups so affected, an affirmative action certification will not be made.

(b) If the normal certification procedure does not include members of the group so affected, the normal certification will be supplemented to include a member of this group whenever such person is available on the class register used.

(c) In no instance will an affirmative action certification exclude any person who would be certified normally. Members of groups which are underrepresented or underutilized shall be added to the normal certification in accordance with their qualifying score.

(d) Affirmative action certification shall be consistent with the type of certification requested or made, regardless of underutilization or underrepresentation.

(e) Approval may be contingent upon presentation of evidence of underutilization or underrepresentation in a format prescribed by the Director of Human Resources.

2. Adverse Impact of Testing Procedure:

When there is sufficient evidence that a selection procedure has an adverse impact on a particular group identifiable by sex, age, handicap, minority status or national origin, the Director of Human Resources shall make an affirmative action certification, subject to the following conditions:

(a) If the normal certification procedure includes members of the groups so affected, an affirmative action certification will not be made.

(b) If the normal certification procedure does not include members of the group so affected, the normal certification will be supplemented to include a member of this group whenever such person is available from the class register used.

(c) In no instance will an affirmative action certification exclude any person who would be certified normally. Members of groups which are adversely affected by testing procedures shall be added to the normal certification in accordance with their qualifying score.

(d) Affirmative action certification shall be consistent with the type of certification requested or made.

(e) Evidence of adverse impact shall be provided by statistical analysis of the testing procedure followed.

(f) An affirmative action certification will not be made to address adverse impact if the testing procedure has been validated.

3. Authority Reserved:

The Director of Human Resources reserves the right to make an affirmative action certification independently whenever this action is deemed to be in the best interest of State service.

In addition, where agency hiring practices show a pattern of adverse impact, the Director may take any available affirmative action to ensure non-discriminatory treatment of persons referred for appointment.

6. SPECIAL APPOINTMENT AND SUPPORTED EMPLOYMENT PROGRAMS

A. Purpose and Objective

The purpose of the Special Appointment and Supported Employment Programs is to provide persons with severe disabilities increased access to positions in the classified service. Persons who are selected for these programs will be matched to job classifications that they have the potential to learn and appointed to these classifications on an acting capacity basis for a trial employment period. The trial employment period will be in lieu of the established examination. Participants will be provided support services and training on an as needed basis during the trial employment period, and those who satisfactorily complete this alternative examination will be transferred from acting appointment to Civil Service appointment status.

B. Definition of Programs

1. Special Appointment

Participants in the Special Appointment Program will be appointed to standard State of Maine job classifications and will be required to meet the minimum qualification requirements for these classifications. Participants must be certified by a qualified vocational rehabilitation professional to have the capability to attain or exceed the entrance-level productivity requirement of the classification used for their employment.

Participants in the Special Appointment Program will require less support and training during the trial employment period than participants in the Supported Employment Program and, with only few exceptions, support services will not be needed once the trial employment period is completed.

2. Supported Employment

Participants in the Supported Employment Program will be appointed to special job classifications that will be established for the specific purpose of this program. A special pay scale will be established for each Supported Employment classification. Participants must be certified by a qualified vocational rehabilitation professional to have the capability to attain an acceptable level of productivity for the special classification used for their employment. Participants in the Supported Employment Program will require more support, and support for a longer period, than is needed for participants in the Special Appointment Program. Some participants may require support and/or training throughout their employment.

C. Acting Capacity Appointment

Persons who are selected to participate in the Special Appointment and Supported Employment Programs will be appointed on an acting capacity basis for a trial employment period. Normally, the trial employment period will not exceed one year.

D. Extensions to Acting Capacity Appointment

Acting Capacity appointments for the Special Appointment and Supported Employment Programs may be extended beyond the normal one-year period when the final evaluation indicates that the participant has not quite attained a level of job productivity that is acceptable by the appointing authority but is expected to reach this level of productivity within a reasonable extension period. The length of the extension will be the joint decision of those providing support services, the appointing authority and the Director of Human Resources.

E. Program Selection and Placement Requirements

The following conditions shall be required for each acting appointment to the Special Appointment and Supported Employment Programs:

1. The person to be appointed has been determined by a qualified professional to have a severe disability.

2. The person to be appointed has been evaluated by a qualified professional and the professional has certified that the person to be appointed has the capability to learn or achieve the knowledge and skills required to perform the work required at a level of productivity that is acceptable for the type of program involved.

3. The environment where the work will be performed has been evaluated by a qualified professional and the professional has certified that the person to be appointed can, with proper support and training, learn to perform the required work in this environment without injury to self or others.

4. The person to be appointed has been interviewed by the employing agency and found to be acceptable.

F. On-the-Job Support Services

Participants in the Special Appointment and Supported Employment Programs will be provided ongoing or as-needed support services during the trial employment period to guide them toward their maximum productivity level. The need and extent of support services that are provided during the trial employment period will be decided by a qualified professional or a team of qualified professionals. Examples of support services include counseling, job coaching and on-the-job instruction. Decisions with respect to the support services that are needed will be made at time of appointment and at regular intervals during the trial employment period. Support services for participants in the Supported Employment Program will be continued after transfer to Civil Service status for as long as these services are needed.

G. Evaluation Requirements for Participants

The performance of participants shall be evaluated 30 days after the initial acting capacity appointment, with additional evaluations at 90 days, 180 days, 270 days and the end of the appointment year. If participants are appointed to their positions with Civil Service status prior to any of these review dates, the remaining review dates will be voided and the standard probationary review process will apply.

H. Transition From Acting Appointment to Civil Service

Participants who attain the level of productivity that is acceptable for their program type will be transferred from acting appointment to Civil Service appointment status as soon as this level of productivity is reached. The transfer to Civil Service appointment status may occur at any time during the trial employment period. Each transition to Civil Service appointment status must be supported by a written performance evaluation that states that the level of productivity that has been attained is acceptable by the appointing authority. Participants who are transferred to Civil Service appointment status will be required to serve a six-month probationary period, starting with the date that the Civil Service appointment is made. This six-month probationary period may be extended up to a maximum of one year.

I. Termination of Acting Appointment and Trial Employment

The participant's acting appointment will be terminated and a Civil Service appointment will not be made if the participant is unable to attain a level of productivity that is acceptable by the appointing authority.

J. Compensation

1. Special Appointment Program

a. Trial Employment Period. During the trial employment period, participants will be compensated at the minimum step rate of the Civil Service pay grade and salary schedule in effect for their job classification.

b. Civil Service Appointment. Participants who are granted Civil Service appointment status will continue to be compensated at the minimum step rate of the Civil Service pay grade and salary schedule unless the level of productivity attained warrants the next higher rate. Evaluations of productivity at time of Civil Service appointment will be made by a qualified professional and the starting rate of pay will be jointly determined by the professional and the Director of Human Resources. Subsequent annual step increases will be the responsibility of the appointing authority.

2. Supported Employment Program

a. During the trial employment period, participants will be appointed to a special job classification and compensated from a special pay scale that is established for that classification. The special pay scale will have minimum, maximum and intermediate step rates. Participants will be paid the step rate that is commensurate with their capability in relation to the job to be learned. Evaluations of capability will be made by a qualified professional, and the step rate of pay for the trial employment period will be jointly determined by the professional and the Director of Human Resources. The determined rate of pay will remain in effect for the duration of the trial employment period.

b. Participants who transfer to Civil Service status will continue to be compensated from the special pay scale established for their trial employment period. The step rate of pay selected for Civil Service appointment will be commensurate with the level of productivity attained. Evaluations of productivity will be made by a qualified professional and the starting rate of pay will be jointly determined by the professional and the Director of Human Resources. The special pay scale will continue to be used for subsequent annual step increases as long as the employee's productivity level remains below the entrance-level productivity requirement of a standard State of Maine job classification. Annual step increases will be the responsibility of the appointing authority. If an employee in the Supported Employment Program attains the entrance-level productivity requirement of a standard State of Maine job classification after Civil Service appointment, the employee must be transferred to the Special Appointment Program and compensated accordingly.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. Chapter 65, c. 372 §§ 7034, 7036, 7051, 7052, 7053, 7054, 7055, 7062 and 7064.
• EFFECTIVE DATE: January 9, 1979
• REPEAL & REPLACE: September 17, 1980 - Sec. 1-4
• AMENDED: September 16, 1981 - Sec. 5
• AMENDED: September 6, 1988 - Sec. 2(F)
• AMENDED: November 15, 1992 - Section 3(A)(2) & 6
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 9 Probationary Period

Code Me. R. 18-389 Ch. 9 Probationary Period {#sec-18-389-ch.-9 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 9}

SUMMARY: This chapter gives the purpose and duration of the probationary period and presents the mechanism for transition from probationary to permanent status.

1. USE AND PURPOSE

The probationary period shall be regarded as an integral part of the examination process, and shall be utilized for closely observing the employee's work, for securing the most effective adjustment of a new employee to his/her position, and for rejecting any employee whose performance does not meet the required work standards.

2. DURATION

All regular and all promotional appointments shall be tentative and subject to a probationary period of six months of actual service, provided, however, that the Director of Human Resources, upon written request of the appointing authority, may extend the probationary period by not more than six months.

3. NON-CREDITABLE TIME

A. Any interruption of service during the probationary period shall not be counted as a part of the probationary period.

B. Time served on temporary or project assignment shall not be counted as part of the probationary period.

4. RATING OF PROBATIONARY SERVICE

At any time during the probationary period and in such manner as the Director of Human Resources may prescribe, the appointing authority shall report to the Director in writing his/her judgment of the qualities of the employee's work performance.

5. TRANSITION TO PERMANENT STATUS

A. Upon written notice submitted within a fifteen calendar day period immediately preceding the expiration of the probationary period by the appointing authority to the Director of Human Resources that the services of the probationer have been satisfactory, and that the employee is therefore given a permanent appointment to his/her position, such employee shall be granted permanent status provided that the service record filed with the Director shows that the quality of service performed by the employee was satisfactory.

B. A copy of such notice shall be given the employee by the appointing authority.

C. In the absence of such grant of permanent status, the employee shall receive no further pay after the expiration of his/her probationary period.

6. SPECIAL PROVISIONS

A. Promotion While on Probation

An employee who is promoted prior to the completion of his/her probationary period to a higher position in the same occupational field shall complete his/her probationary period in the lower position by service in the higher position and the appointing authority shall certify him/her for permanent status in the lower position at the end of the six months' period following original appointment to that position if the employee is to be continued in the state service.

B. Leave to the Unclassified Service

When a probationary employee is granted a leave of absence to accept a position in the unclassified service, the unfulfilled portion of the probationary period in the classified service may be completed by service in the unclassified service position subject to a positive recommendation of the appointing authority and approval of the Director of Human Resources, provided that the work in the unclassified position is within the same general occupational field and is at least equivalent in difficulty and responsibility to the work of the position in the classified service.

C. Reemployment

Former employees appointed from eligible lists other than the layoff list shall be subject to the probationary period beginning the date of new appointment.

D. Reinstatement from Layoff

Former employees laid off during the probationary period shall be credited with time served on probation upon reinstatement from a layoff register.

E. Demotion

The probationary period of an employee demoted without prejudice during or at the end of his probationary period shall include the period of probationary service in the higher class.

AUTHORITY: 5 MRSA Ch.372 §§ 7036 and 7051.

EFFECTIVE DATE: January 14, 1979.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 10 Performance Appraisal and Training

Code Me. R. 18-389 Ch. 10 Performance Appraisal and Training {#sec-18-389-ch.-10 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 10}

SUMMARY: This chapter gives the purpose and requirements of the Performance Appraisal System and establishes a mechanism for internships and apprentice training.

1. NATURE AND BASIS OF PERFORMANCE APPRAISAL RATING

A. Performance Standards

Standards of performance established as basis for service ratings shall have reference to the quality and quantity of work done, the manner in which service is rendered, the faithfulness of employees to their duties and such other characteristics as will measure the value of the employee to the service.

B. Notice

Each employee in the classified service shall be notified by the appointing authority of his/her service rating at the time of such rating with a view to being afforded opportunity for correcting obvious weaknesses.

C. Accuracy of Ratings

The Director of Human Resources may investigate the accuracy of reports of ratings and may take action to secure the adjustment of the ratings to conform to the facts as ascertained. It shall be the duty of the Director to provide for uniformity of application of the standards by different rating officers.

D. Availability of Records

The reports and records on which the ratings of each employee are based may be inspected by the employee or his/her duly authorized representative, by the appointing authority of the employee, and at the discretion of the Director of Human Resources, by any other appointing authority who is considering a transfer of the employee to his/her own jurisdiction. Such ratings, reports, and records shall not be open to inspection by any other persons outside the department.

NOTE 1: Under authority and specific requirement of these Public Laws, the Performance Appraisal System prescribed has application to all employees, classified or unclassified.

NOTE 2: Under authority and specific requirement of these Public laws, the Performance Appraisal System prescribed provides:

1. Current and formal record of actual work accomplishments and the relationship of these accomplishments to job performance expectations; and

2. Basis for recommendations and decisions concerning awards/denials of merit increase awards.

3. TRAINING PROGRAMS

Appointing authorities, with the approval of the Director of Human Resources, may establish intern or apprenticeship training programs. Salaries of such interns or apprentices may be set by the appointing authority with the approval of the Director.

AUTHORITY: 5 MRSA Ch.372 §§ 7036, 7042, 7065 and 7070.

EFFECTIVE DATE: January 14, 1979.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 11 Holidays, Leaves of Absence and Related Compensation Practices

Code Me. R. 18-389 Ch. 11 Holidays, Leaves of Absence and Related Compensation Practices {#sec-18-389-ch.-11 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 11}

SUMMARY: This chapter designates holidays and related compensation procedure and presents regulations governing leaves of absence with pay and leaves of absence without pay - includes sick leave, vacation leave, military leave and educational leave; jury duty or court appearances, workmen's compensation grants and unclassified service appointments.

1. HOLIDAYS

A. Holiday Schedule

The following and any other days designated by the governor, or under authority of the Governor, are holidays; and compensatory time off shall be allowed for work done on these days except where cash payment is allowed under the approved work schedule/regulations of a given department or agency:

New Year's Day Labor Day

Washington's Birthday Columbus Day

Patriot's Day Veteran's Day

Memorial Day Thanksgiving Day

Independence Day Christmas Day

B. Special Provisions/Requirements

1. When a holiday falls on a Sunday, the following Monday shall be observed as the holiday.

NOTE: When a holiday falls on a Saturday, the preceding Friday shall be observed as the holiday.

2. Employees shall be eligible for holiday pay only if they were in pay status on the normal work day immediately preceding the holiday for which payment is to be made.

NOTE: Civil Service policy developed subsequent to this rule further requires that employees be in pay status for all or part of the normal work day immediately following the holiday.

3. Employees holding part-time permanent or part-time seasonal positions shall be eligible for holiday or part holiday pay only if the holiday falls on a regularly scheduled day of work.

4. When a holiday falls on the regularly assigned day off for an employee, such employee shall be compensated by equivalent time off, or by cash payment in accordance with the approved work schedule/regulations of a given department or agency.

C. Employees Eligible for Holiday Benefits

The terms of this rule shall apply to all employees except those serving on a project basis.

NOTE: Reference Chapter 2 for regulations governing intermittent employment.

2. LEAVES OF ABSENCE WITH PAY

A. General Regulations

1. Authorization in Advance. So far as practicable, written grants of leave with pay shall be made prior to the beginning of the periods of absence, and no payment for any absence shall be made until the leave is properly approved by the appointing authority.

2. Charges Against Credits Earned

a. Deductions from leave accumulations for an employee on leave with pay shall be made on a working-day basis.

b. No charges against leave with pay accumulations shall be made for holidays, non-work days, or non-work part days occurring at the beginning or during a period of leave with pay.

c. No charge shall be made for holidays or non-work days occurring at the end of a period of leave with pay if the employee returns to work on the first day thereafter or is granted additional leave.

3. Credits Earned While on Leave. Accrual of vacation leave and sick leave during the period of leave of absence with pay shall occur only if the employee returns to his employment on the first working day following the expiration of such leave with pay or is granted additional leave without pay.

4. Agency Records. Appointing authorities shall maintain records of vacation and sick leave accrued and used by each of their employees. Such records shall be maintained in the form and manner approved by the Director of Human Resources, and shall be subject to audit by the Bureau of Human Resources. In case of dispute of the accuracy of the records, the decision of the Director shall be final.

B. Vacation Leave

1. Eligibility and Rate of Accrual

a. Each employee in the classified service, except temporary emergency or project employees, shall earn vacation with pay on the following basis: One work day shall be earned for each completed full month, or hourly equivalent, of service during the first five years of employment with the state. Thereafter, provided the last five years of service shall have been continuous, vacation shall be earned on the following basis: For each completed full month, or hourly equivalent, of employment with the state, one and one-fourth (1 1/4) days shall be earned until ten years shall have been completed; one and one-half (1 1/2) days shall be earned until fifteen years shall have been completed; one and three-fourths (1 3/4) days shall be earned until twenty years have been completed; thereafter, two days shall be earned.

NOTE 1: Reference Chapter 2 for regulations governing intermittent employment.

NOTE 2: Chapter 147, P&S Law, 1976 enacted 5 MRSA, §16 which establishes these rates of accrual as the minimum rates applicable to employees in both the classified and unclassified service.

b. Continuous service for the purpose of determining eligibility for vacation leave benefits shall be defined as all uninterrupted state service, to include both classified and unclassified service employment.

2. Creditable Time

a. Service shall begin on the date of state employment, and time on layoff, suspension, or leave without pay, except as otherwise provided by the Civil Service Law or by these rules, shall not be counted in determining the date of completion of a full month or a full year of service.

b. Vacation credits shall not be earned or accumulated during periods of authorized educational leave.

3. Agency Approval/Authorization

Vacations shall be granted at such time or times as shall be mutually agreeable to the employees and appointing authorities involved.

4. Maximum Yearly Accrual

a. Employees having less than fifteen completed years of service may accumulate vacation leave to a total of twenty-four (24) work days. Those employees having more than fifteen years of service, the last five years of which have been continuous, may, accumulate vacation time to a total of thirty (30) work days, provided, however, that an employee who is about to lose a day of vacation leave because of the limitation of accrual imposed by this rule, upon advance notice to the appointing authority may within the 30 calendar days following, absent himself/herself with the consent of his/her appointing authority to prevent the loss of such day.

b. An employee on military leave (as provided in 5 MRSA, Chapter 372 § 7051) shall not be limited to 24 work days accrual of vacation leave. The employee may immediately upon reinstatement from military leave, take all vacation leave in excess of 24 work days with or without consent of the appointing authority. In the alternative, the employee may elect to be credited with the vacation leave in excess of 24 work days, but such leave shall be taken at a time determined by the appointing authority, within two years of the date of reinstatement.

5. Disposition of Credits upon Transfer or Separation

a. Separation

1. Any employee who is separated from the state service by layoff, resignation, death or otherwise, shall be paid, or shall have payment made to his/her estate for the number of working days of unused vacation leave and overtime accumulated to his/her credit --OR--

2. At his/her discretion, an employee may utilize accrued vacation credits immediately prior to separation in lieu of a lump sum payment; however, accrual of additional vacation, sick leave or holiday credits shall cease with the commencement of this intended final leave.

b. Transfer

1. Any employee who is transferred to the jurisdiction of a new appointing authority or who accepts employment under the jurisdiction of a new appointing authority or who moves from the classified to the unclassified service or vice versa, shall be paid for the number of working days of unused vacation leave and overtime accumulated to his/her credit --OR--

2. An employee who is transferred to the jurisdiction of another appointing authority or who accepts employment under the jurisdiction of a new appointing authority or who moves from the classified to the unclassified service, or vice versa, shall be entitled to credit in his/her new employment for the accumulated unused vacation credits earned in his/her former employment.

3. Disposition of Credits Upon Completion of Seasonal Work Each Year for Seasonal Employees of the Baxter State Park Authority

a. A seasonal employee of the Baxter State Park Authority may, at the conclusion of seasonal work each year and at the seasonal employee’s option, elect to be paid for the number of working days of unused vacation leave and compensating time in lieu of overtime accumulated to the seasonal employee’s credit. Election of this option by a seasonal employee of the Baxter State Park Authority may not be construed as an interruption in state service if the employee returns to classified or unclassified employment in any capacity within one year.

C. Sick leave

1. Eligibility and Rate of Accrual

a. Sick leave shall be earned by each employee in the classified service, except temporary, emergency or project employees, at the rate of one (1) working day for each completed full month of service.

NOTE 1: See Chapter 2 for regulations governing intermittent employment.

NOTE 2: Chapter 147, P&S Law, 1976 enacted 5 MRSA, §16 which establishes this rate of accrual as the minimum rate applicable to employees in both the classified and unclassified service.

b. Either the appointing authority or the Director of Human Resources may require such medical examination or certificate as deemed necessary before approving the utilization of sick leave.

2. Creditable Time

a. Service shall begin on the date of state employment and time on layoff, suspension or leave without pay, except as otherwise provided by law or these rules, shall not be counted in determining the completion of a full month of service.

b. Part-time employees employed normally the year round and established on a regular hourly work schedule shall be allowed sick leave credits pro-rated on the amount of time worked.

c. Sick leave shall not be earned or accumulated during periods of authorized educational leave.

3. Maximum Accrual and Restoration of Time Lapsed

Unused sick leave may be accumulated to a total of 90 working days. When the maximum limitation has been accumulated, days that would normally thereafter be earned shall lapse but shall be recorded by the appointing authority. Any employee who has such lapsed sick leave to his/her credit may apply to the Director of Human Resources to have the sick leave restored in the event of an extended illness. The Director may authorize restoration of all or any part of the lapsed sick leave after thorough investigation, including complete medical reports of the illness requiring the continued absence of the employee.

4. Authorization for Use

Employees may utilize their allowance of sick leave on the basis of application therefor approved by their respective appointing authorities and reported to the Director of Human Resources, for absences necessitated by:

a. inability to perform the duties of their positions by reason of illness or injury;

b. necessity for acute medical or dental care;

c. exposure to contagious disease under circumstances in which the health of the employees with whom associated or members of the public necessarily dealt with would be endangered by attendance on duty; or

d. illness or death in the immediate family of the employees for such periods as the attendance of the employees shall be necessary. Immediate family as used here shall mean the spouse and the parents of the spouse; and the parents, guardian, children, brothers, sisters or wards of the employee.

5. Expiration Upon Separation

All sick leave shall expire on the date of separation from the state service, and no employee shall be reimbursed for sick leave outstanding at the time of termination of his state employment.

NOTE: Maine State Retirement Law provides that up to 90 days of sick leave accrued and unused at time of separation may be credited as membership service upon retirement.

6. Special Provisions

a. Reappointments

A former state employee who is reappointed within four years of his separation from the service under the provisions of the Civil Service Law and these rules, with probationary or permanent status, may have his previously accumulated and unused balance of sick leave revived and placed to his credit upon approval of the new appointing authority.

b. Transfers

An employee who is transferred to the jurisdiction of another appointing authority or who accepts employment under the jurisdiction of a new appointing authority without interruption of his/her services to the state shall be entitled to credit in his/her new employment for the accumulated unused sick leave earned in his/her former employment.

c. Unclassified Service Appointments

Accumulated sick leave unused at the time of grant of leave of absence to an employee to accept employment in the unclassified service shall be restored at the time of reinstatement of the employee to his classified service position.

NOTE: With the enactment of 5 MRSA, §16, employees who move from the classified service to the unclassified service, or vice versa, may, with approval of appointing authorities, transfer accumulated sick leave credits from one appointing authority to the other, provided such movement is without a four year break in service.

D. Worker's Compensation Grants

1. ln the event an employee is paid or awarded any weekly compensation under the provisions of the Worker's Compensation Act, then the amount that might otherwise be allowed such employee under the provisions of these rules shall be reduced by the amount so paid or awarded under the Worker's Compensation Act. In any such case, the total amount paid to the employee involved shall not exceed the weekly salary rate to which the said employee is then entitled, and seniority in employment shall continue to accumulate.

2. Deductions from available leave credits may be made to pay for such days or parts of days as is necessary to compensate for the balance of the regular weekly salary.

E. Military Leave With Pay

Employees in the classified service who are members of the national guard or other authorized state military or naval forces, and those classified employees who are members of the army, air force, marine, coast guard or naval reserve shall be entitled to leave of absence from their respective duties, without loss of pay, and shall accrue sick and annual leave and seniority during periods of annual training not to exceed 17 calendar days in any calendar year, as specified by provisions of the National Defense Act or Armed Forces Reserve Act of 1952.

F. Jury Duty and Court Appearances

1. Upon approval of the appointing authority, any employee, except intermittent, holding a position in the classified service shall be granted a leave of absence with pay for service upon a jury or appearance before a court, legislative committee, or other judicial or quasi-judicial body as a witness in action involving the federal government, the state, or a political subdivision thereof in response to a subpoena or other direction by proper authority; provided that for such period of required absence he/she shall be entitled only to the difference between his/her regular compensation and the compensation fees received for such services.

2. Any absence whether voluntary or in response to a legal order to appear and testify in private litigation not as an officer or employee of the state, but as an individual, shall be taken as annual leave, as leave of absence without pay, or as a deduction from authorized accumulated overtime.

3. LEAVES OF ABSENCE WITHOUT PAY

A. Personal Leave

Permanent employees may be allowed to be absent from duty without pay for a period not exceeding a total of twelve months in any fourteen consecutive months on the basis of applications for leave without pay approved by their respective appointing authorities and the Director of Human Resources under the following conditions:

1. Such leave shall be granted only when it will not result in undue prejudice to the interests of the state as an employer beyond any benefits to be realized. An application for leave of absence for military school, travel or study calculated to equip the employee to render more effective service to the state may be deemed to involve such compensating benefits to be measured against the loss or prejudice to the interests of the state involved in keeping open the position or filling it temporarily until the return of the employee.

2. No such leave shall be granted primarily in the interests of the employee, except in the case of an employee who is shown by record of service ratings or by other evidence, to be of more than average value to the state, whose services it is desirable to retain, even at some sacrifice.

3. The Director of Human Resources shall refuse to approve any proposed leave without pay which is judged to be contrary to the best interest of the state.

B. Sick Leave Without Pay

Upon application of a probationary or permanent employee, a leave of absence without pay may be granted by an appointing authority for the entire period of disability because of sickness or injury. Such leave need not be limited to one year, but the appointing authority or the Director of Human Resources from time to time, may require that the employee submit a certificate from the attending physician or from a designated physician. In event of a failure or refusal to supply such certificate or if the certificate does not clearly show sufficient disability to preclude the employee from the performance of his/her duties, the appointing authority, with the approval of the Director, may cancel such sick leave and require the employee to report for duty on a specified date.

C. Leaves to the Unclassified Service

1. Upon approval of the Director of Human Resources, an appointing authority may grant a leave of absence without pay to a permanent or probationary employee in the classified service to permit the employee to accept an appointive position in the unclassified service. Such leaves may be continued during the period of service in the unclassified service position; and the employee shall be restored to the status and position held at the time of the grant of leave of absence, within one year of the date of termination of the unclassified service employment, upon written application to the Director.

NOTE: Under provisions of 5 MRSA, Chapter 71, Sub-§2, employees in permanent status in the classified service who accept an appointment to a major policy-influencing position shall have the right, for twelve (12) months subsequent to the major policy-influencing appointment, to be restored to the classified position held immediately prior to the major policy appointment or a position equivalent thereto. Such return will not result in a loss of Civil Service status, seniority, retirement or other rights to which uninterrupted service in the classified position would have provided.

2. Officers and employees in the unclassified service who resigned from positions in the classified service in which they had permanent status, to accept unclassified appointment, prior to the effective date of these rules may be granted reemployment rights on eligible registers for the same or similar classes of employment previously held, provided application is made to the Director of Human Resources within one year of the termination of unclassified appointment.

4. EDUCATIONAL LEAVE

NOTE: Under 5 MRSA §§ 723 and 724, all requests for educational leave, with or without pay, that exceed 30 calendar days must be processed by the Educational Leave Advisory Board established for this purpose.

Eligibility requirements, application procedure and other general guidelines are available from the Bureau of Human Resources and/or heads of state departments and agencies.

5. CANCELLATION OF LEAVES

A. All leaves of absence shall be subject to the condition that the appointing authority may cancel the leave at any time upon prior written notice to the employee and the Director of Human Resources specifying a reasonable date of termination of the leave, and the reason for such cancellation --OR--

B. The Director of Human Resources, upon prior notice to the employee and the appointing authority, may cancel an approved leave of absence at any time the Director finds that the employee is using the leave for purposes other than those specified at the time of approval.

6. ABSENCE WITHOUT LEAVE

A. Any absence of an employee from duty that is not authorized by a specific grant of leave of absence under the provisions of these rules, or taken as earned vacation leave about to expire, shall be deemed to be absence without leave.

B. Any such absences shall be without pay and may be made grounds for disciplinary action.

C. In the absence of such disciplinary action, any employee who absents himself for three consecutive days without leave shall be deemed to have resigned, but such absence may be covered by a subsequent grant of leave without pay in accordance with the provisions of section 3 of this Chapter.

7. RETURN FROM LEAVE OF ABSENCE

A. Reinstatement Provisions

1. Except as otherwise provided by law, a permanent or probationary employee granted a leave of absence must be returned to his/her employment at the expiration of his/her leave, unless the position formally occupied has been abolished and no person with less seniority or status is employed in the same class in the same agency or organizational unit at the date of expiration of the leave.

2. Subject to the same exception, such employee may be returned to his/her employment at any time prior to the expiration of his/her leave, provided the appointing authority files written notice of such action with the Director of Human Resources.

3. A permanent or probationary employee who is denied reinstatement by the appointing authority prior to the expiration of his/her leave shall have his/her name placed on the appropriate eligible registers under provisions of Chapter 7. Such action shall not affect the right of the employee to return to employment at the expiration of his/her leave of absence as above provided unless he/she is appointed from such register prior to the date of expiration of the leave of absence.

B. Layoff Provisions

he name of a permanent or probationary employee who is laid off prior to the expiration of his/her leave because of abolition of his/her position as above provided, shall be placed on the appropriate eligible registers under provisions of Chapter 7.

History

• STATUTORY AUTHORITY: 5 MRSA Ch. 69; c.71; c.372 §7036
• EFFECTIVE DATE: January 14, 1979.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996
• NON-SUBSTANTIVE CORRECTION: June 4, 1996 - correction of a conversion error in §4 NOTE from 3 to 30 days.
• AMENDED: August 11, 2009 – filing 2009-423
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 12 Disciplinary Action, Demotion, Resignation and Layoff

Code Me. R. 18-389 Ch. 12 Disciplinary Action, Demotion, Resignation and Layoff {#sec-18-389-ch.-12 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 12}

SUMMARY: This chapter presents the basis and procedure for demotions, suspensions and dismissals in the State Service; procedure for resignation in good standing; and the statewide mechanism for addressing the unavoidable layoff of employees.

1. DISCIPLINARY ACTION

Any action which reflects discredit upon the service or is a hindrance to the effective performance of state service shall be considered good cause for disciplinary action. Such action may include misconduct, inefficiency, incompetence, insubordination, indolence, malfeasance, or willful violation of the Civil Service Law or of the rules.

A. Suspension

1. Cause for Suspension

An appointing authority may suspend an employee without pay for disciplinary reasons or other cause.

2. Notice of Reason

The reasons therefor shall be furnished the employee and the Director of Human Resources in writing prior to the effective date of the suspension.

3. Seniority Provision

No seniority shall be acquired during the period of suspension, unless the employee is exonerated.

4. Appeal Procedure

An employee may appeal a suspension action under the provisions of Chapter 13 as annotated.

B. Dismissal

1. Cause for Dismissal

a. Probationary Status. Employees who do not have permanent status may be dismissed at any time at the discretion of the appointing authority except that just cause shall be required for those serving the first 30 calendar days of a probationary period following transfer or promotion.

b. Permanent Status. No employee who has permanent status shall be dismissed from a position except for just cause.

c. Non-Status Employees. Project, provisional, emergency and temporary employees may be dismissed at any time and shall not be entitled to a hearing before the Director of Human Resources.

NOTE: Reference Chapter 2 for regulations governing dismissal of intermittent employees.

2. Notice of Reason

The employee and the Director of Human Resources, before such action is taken, shall be furnished with a statement in writing setting forth the reason for the dismissal.

3. Appeal Procedure

An employee may appeal a dismissal action under the provisions of Chapter 13 as annotated.

2. DEMOTION

A. Cause for Demotion

An appointing authority may demote an employee for inefficient performance of duties, for disciplinary reasons, or for other just causes. Such cause may include:

1. Performance During Probation

Any time during the probationary period that an appointing authority determines that the employee's performance does not meet work standards, he/she may demote the employee, except that no employee serving a probationary period following his/her transfer or promotion shall be demoted except for just cause or with his/her consent during the first thirty calendar days of the probationary period.

2. Layoff Action

An appointing authority, with the consent of the affected employee, may demote a permanent or probationary employee in lieu of layoff. No employee so demoted shall displace a permanent or probationary employee except in order of seniority as defined by Section 4 of this chapter.

3. Reinstatement from Military Leave

Any permanent or probationary employee about to be laid off because of the reinstatement or promotional appointment of an employee returning from military leave, shall be demoted to displace any employee with less seniority in any lower class in which he/she previously served unless he/she elects to be laid off. In either event the name of such employee shall be placed on an appropriate layoff register, and upon written application, will also be placed on an appropriate reemployment register.

B. Notice of Reason

The appointing authority shall furnish a permanent employee with a written statement of the reasons for demotion and shall file a copy of the statement with the Director of Human Resources prior to the effective date of action. Notice shall be given 15 calendar days prior to the effective date of this action.

C. Seniority Provision

Seniority of an employee in the class to which he is demoted shall be limited to service in the agency and shall consist of the combined total of his prior seniority in the class to which demotion occurs, in all higher classes, and in all other classes which the Director of Human Resources determines to be sufficiently similar to the class to which demotion occurs.

D. Probationary Provision

The probationary period of an employee demoted without prejudice during or at the end of his/her probationary period shall include the period of probationary service in the higher class.

E. Appeal Procedure

1. An employee may appeal a demotion action under the provisions of Chapter 13 as annotated.

2. A demotion in lieu of layoff shall not entitle the employee to a hearing in the demotion, but his/her name shall be placed on the layoff register, and upon written request may be placed on the reemployment register for the class from which demoted.

3. RESIGNATION

A. Advance Notice to Appointing Authority

An employee may resign from the service by presenting his/her resignation in writing to the appointing authority. To resign in good standing, an employee must give the appointing authority at least 7 calendar days' prior notice.

B. Notice to Director of Human Resources

A copy of such resignation shall be supplied by the appointing authority to the Director of Human Resources.

C. Conditions for Approval

The Director of Human Resources may make such investigation as deemed warranted for the purpose of verifying the facts as to the reasons for such resignation; and:

1. No form of resignation which is filed without date or with a future date, and which is not intended to be a bona fide and voluntary resignation to be acted upon at the time of filing, shall be accepted by the Director of Human Resources as a resignation. Each separation under such circumstances shall be deemed a dismissal and the provisions of the act and these rules relating to dismissals shall apply.

2. Any demand or request of an appointing officer for the filing of any such form or resignation for possible future action at the option of such appointing officer shall be deemed to constitute prima facie evidence of coercion in contravention of the purposes of the Civil Service Law and these rules.

D. Withdrawal

Upon approval of the appointing authority, an employee may withdraw his/her resignation at any time not later than ten days after the effective date of the resignation.

4. LAYOFF: CONDITIONS AND PROCEDURE

A. Conditions

1. An appointing authority may lay off an employee in the classified service by reason of abolition of position, shortage of work or funds, or other reasons outside the employee's control which do not reflect discredit on the service of the employee.

2. Any interruption of employment of fifteen calendar days or less is not considered a layoff.

3. The duties formerly performed by laid off employees may be assigned to other permanent civil service employees who, in the opinion of the Director, hold positions in appropriate classifications.

B. Organizational Units

1. Organizational units may be established within an agency on the basis of geographic, functional, budgetary, statutory or other lines as approved by the Director of Human Resources and which best serve the needs of State Government.

2. In the event that organizational units are established within an agency, the units will thereafter be used for layoff and recall.

3. The appointing authority must post a listing of established organizational units or must distribute copies of the listing to notify affected employees of the establishment of organizational units.

C. Procedure for Layoff

1. Seniority Determinations

a. Seniority for purposes of layoff and recall is the length of continuous employment with permanent or probationary civil service status. There shall be no proration for part time and seasonal employment.

b. Seniority of permanent or probationary employees on leave of absence or layoff will continue to accrue.

c. A former employee who is on layoff and who is reemployed within three (3) years of layoff will be credited with all accrued seniority.

2. Transfer and Demotion in Lieu of Layoff

a. Employees who are laid off from their positions must be offered transfer in lieu of layoff to a vacant position in the same job classification or, if no vacant positions are available, to the position in the same job classification occupied by the employee with least seniority, provided the employee has greater seniority than the employee to be displaced. Transfer must be by agency, or by organizational unit, as appropriate.

b. An employee must be offered demotion if the employee has no transfer rights to any position in the same classification. Demotion is limited to classifications previously held, with status, by the employee. Demotion rights are limited to positions that are either vacant or occupied by the least senior employee in the agency or organizational unit for which the employee to be demoted has greater seniority.

3. Equal Seniority

a. Where it is determined that seniority is equal, transfer or demotion rights will be determined by the date of acquisition of permanent status.

b. If transfer or demotion rights cannot be determined by date of acquisition of permanent status, these rights will be determined by the appointing authority in such a manner as to conserve to the state the services of those employees deemed most valuable.

4. Rights to Other Employment

a. In the event that a probationary or permanent employee is to be laid off from any position while any project, acting capacity or otherwise temporary employee is working in any classification for which the Probationary or permanent employee may have transfer or demotion rights, the permanent or probationary employee must be offered the work.

5. Limitations on Transfer and Demotion

a. Transfer and demotion rights are subject to the availability of funded positions.

b. No employee may transfer or demote to a position if, in the opinion of the appointing authority, the employee is not qualified to perform the duties of the position and the employee cannot acquire the necessary skills and qualifications within a reasonable orientation or training period.

c. In the event that an employee is deemed unqualified to transfer or demote to the position occupied by the least senior employee, the employee must be offered transfer or demotion to the position occupied by the least senior employee for which the employee is qualified to perform the duties, provided the employee has greater seniority than the employee to be displaced.

d. Seasonal employees are not entitled to transfer or demote into year round positions. Year round employees are not entitled to transfer or demote into seasonal positions.

e. Part time employees are not entitled to transfer or demote into full time positions. Full time employees are not entitled to transfer or demote into part time positions.

6. Layoff Registers and Recall

a. The names of permanent or probationary employees laid off or demoted in lieu of layoff must be placed in order of seniority on the layoff register for the classification.

b. Recalls to vacancies must be certified in order of seniority, first to employees who were employed within the agency or organizational unit at time of layoff or demotion, second to employees from other organizational units within the agency, and finally to employees from other agencies.

c. The appointing authority may, with the approval of the Director of Human Resources, refuse to hire an employee for recall if the employee is not qualified to perform the duties of the position and cannot acquire the necessary skills and qualifications within a reasonable orientation or training period.

7. Recall Provisions

a. Probationary Status. Upon recall, employees laid off during the probationary period will be credited with time served prior to layoff.

b. Longevity. An employee who is recalled or reemployed from layoff within three (3) years of layoff will have time on layoff count for the purpose of determining eligibility for longevity pay.

c. Vacation Accrual. Time on layoff will not count for purpose of adjustments to the vacation accrual rate.

8. Notice to Employees

a. In every case of layoff of a permanent or probationary employee, the appointing authority must give written notice at least fifteen calendar days before the date of layoff. The notice must give reasons for the layoff. A copy of the notice must be forwarded to the Director of Human Resources at the time the notice is given to the employee.

b. In the event that an employee is notified of transfer or demotion rights under this Chapter, the employee must inform the appointing authority of his/her decision to accept employment or to accept layoff within three work days.

c. The appointing authority will indicate to all temporary and seasonal employees at time of hire the approximate date of termination of employment. This notice will constitute all notice required under these rules.

d. Notice to employees must inform employees of their right to grieve disputed layoff and recall actions pursuant to Chapter 13 of these rules and sections 7081 - 7084 of the Civil Service Law.

AUTHORITY: 5 MRSA Chapter 372, §§ 7034, 7036, 7051, and 7081 - 7084.

EFFECTIVE DATE: January 14, 1979

AMENDED: June 17, 1991

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 13 Complaints, Grievances and Investigations

Code Me. R. 18-389 Ch. 13 Complaints, Grievances and Investigations {#sec-18-389-ch.-13 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 13}

SUMMARY: This chapter presents the various mechanisms through which complaints and/or grievances of State employees may be discovered, filed and/or heard, and relates the investigatory and enforcement powers of the Director of Human Resources with respect to proper administration/application of the Civil Service Law and these rules.

1. POLICY

It shall be the policy of the State of Maine to attempt to anticipate grievances or to discover them as soon as they arise, to give employees an opportunity to discuss them with supervisors in whom they have confidence and to find mutually satisfactory solutions as rapidly as possible. In the presentation of grievances at any supervisory level, employees are insured freedom from restraint, interference, discrimination or reprisal.

2. LAW AND RULE ENFORCEMENT

The Director of Human Resources shall receive and consider any protests and any matter concerned with the administration of the act and these rules. On the basis of such protest, or as personally decided, the Director shall make such investigation as deemed desirable concerning all matters touching the enforcement and effect of the provisions of the Civil Service Law and these rules and regulations established thereunder.

NOTE: The following appeal mechanisms exist specifically to address the employment concerns of employees in the classified and unclassified services:

1. State Civil Service Appeals Board. This Board has authority to hear and rule on appeals of classification and/or allocation/reallocation actions taken by the Director of Human Resources. Procedures for hearing appeals of classification are on file with the Bureau of Human Resources.

2. State Civil Service Appeals Board. The Board may mediate grievances and disputes between classified employees and their respective state agencies for those employees who are not allowed to bargain pursuant to the State Employees Labor Relation Act.

3. Director of Human Resources. Employment concerns involving examination, examination administration, affirmative action, equal employment opportunity concerns, compensation, and/or possible violation of any law and rule governing merit system administration are heard and addressed by the Director of Human Resources.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. Ch. 372 §§ 7036, 7051, 7081-7085.
• EFFECTIVE DATE: January 9, 1979
• EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 14 Employee Work Records and Payroll Certification Procedure

Code Me. R. 18-389 Ch. 14 Employee Work Records and Payroll Certification Procedure {#sec-18-389-ch.-14 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 14}

SUMMARY: This chapter deals with employment history records maintained by the appointing authority and the Bureau of Human Resources. It gives requirements for information regarding changes to employee status for purposes of payroll authorization and permanent record thereof. It provides access to public records, with restriction.

1. AGENCY PERSONNEL RECORDS

Each department or division shall maintain an adequate set of employee records for the purpose of recording attendance and leave actions. These records shall include the following information: attendance on official duty; vacation leave earned, used and accrued; sick leave earned, used and accrued; and any other leave with or without pay. These records shall be available for inspection of the Director of Human Resources, and individual employees shall be permitted to inspect their own records with respect to their attendance and leave. At the request of any appointing authority, the Director shall provide such assistance as is necessary in establishing or revising appropriate personnel records for the agency.

2. REPORTS TO THE DIRECTOR OF HUMAN RESOURCES

Every appointment, transfer, promotion, demotion, dismissal, change of salary rates, leaves of absence without pay and other temporary or permanent changes in the status of employees in both the classified and unclassified service shall be reported to the Director of Human Resources in writing. Reports required by the Director for unclassified positions shall contain only such information as is necessary for the Director to meet responsibility in certifying to the accuracy of payrolls and in regard to the classification plan. The Director is authorized to prescribe the time, manner, form, and method of making any written report to the Board or Director as may be stipulated in any of the rules.

3. STATEWIDE PERSONNEL ROSTER

The Director of Human Resources shall establish and maintain a roster of all employees in the classified and unclassified service, showing for each employee the class title, the departmental assignment, salary rate, date of employment, employment history, and other pertinent or required employment data.

4. CERTIFICATION OF PAYROLLS

A. Certification: Agency Level

Written certification of an appointing authority, or properly authorized substitute, accompanying any payroll shall constitute official notice that services for which payment is to be made have been performed and that funds are available and allocated for the purpose.

B. Certification: Director of Human Resources

The Director of Human Resources shall provide for an examination of such payrolls and shall certify that the names appearing on the payroll appear there in accordance with appointment and classification provisions of the Civil Service Law and these rules, and that salary rates for classified positions are those authorized by the official compensation plan and by these rules.

C. Unauthorized Items

Any exception taken to unauthorized payroll items shall be noted in writing and such exception shall constitute the Director of Human Resources's official notification to fiscal disbursing officials that such items are in violation of the Civil Service Law and Rules.

No state disbursing or auditing officer shall make or approve, or take any part in making or approving, any payment for personal service to any person holding a position in the classified service unless the payroll voucher or account of such pay bears the certification of the Director or authorized agent of the Director that the persons named therein have been appointed and employed in accordance with the provisions of the Civil Service Law and these rules.

5. AVAILABILITY OF RECORDS

NOTE: In general, records maintained by the Director of Human Resources or State Civil Service Appeals Board shall be available at the Maine State Bureau of Human Resources for inspection by any person during normal business hours, and any portion or portions of these records which are confidential under state or federal statute and/or these rules, will be withheld from public inspection in the least restrictive manner.

AUTHORITY: 5 MRSA Ch.372 §§ 7070 and 7071.

EFFECTIVE DATE: January 14, 1979.

EFFECTIVE DATE (ELECTRONIC CONVERSION): April 24, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 15 The Maine Management Service

Code Me. R. 18-389 Ch. 15 The Maine Management Service {#sec-18-389-ch.-15 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-389 Ch. 15}

SUMMARY: This Chapter defines the Maine Management Service (hereinafter referred to as the MMS) and incorporates the MMS into the State of Maine Civil Service Rules.

§1. Definition and Goals

1. The MMS recognizes the unique nature of confidential executive and management positions in State Government, the importance of strong management, the need to provide greater flexibility and responsibility for managers in hiring, employee development, performance management, and career advancement. The MMS includes all confidential executives and managers who directly manage Maine's public service programs, serve as a manager or consultant in management support functions, and confidential employees who provide advice and assistance to executives as a member of an agency's senior management team. The MMS recognizes that human resource decisions, including hiring process and salary considerations, are best handled by individual agencies in an environment that preserves fairness, statewide equity and merit principles for classified confidential managers.

2. This chapter is intended to incorporate the following goals:

A. A simplified classification system that facilitates movement of managers between agencies and promotes upward mobility.

B. A compensation system that provides flexibility in setting and changing salaries.

C. Strengthened management training and career development programs that build managerial and leadership competencies; focusing on managing and valuing workplace diversity; empowering employees by enabling them to share in workplace decision making, and to be innovative, willing to take risks, and able to accept and deal with change; promoting a workplace where the overall focus is on the recipient of the government services and how these services can be improved; and enhancing mobility and career advancement opportunities.

D. Flexible, timely recruitment and hiring procedures that enable agencies to compete effectively with other employers, both public and private, for managers with appropriate skills and training; allowing consideration of qualified candidates for positions as managers; and achieving affirmative action goals and diversity in the workplace.

E. Provisions that managers may only be dismissed, suspended, or demoted for cause.

F. Facilitation of decentralized and regional administration.

G. Preserves merit principles and ensures that decisions are not based on nepotism, patronage or political considerations.

3. Except as otherwise provided, this chapter applies only to classified confidential employees who meet the definition of manager. Manager or managerial employee means the incumbent of a position that is assigned as follows:

A. Formulates state-wide policy or directs the work of an agency or agency subdivision, or;

B. Administers one or more state-wide policies or programs of an agency or agency subdivision, or;

C. Has substantial responsibility in personnel administration, legislative relations, public information, or;

D. Prepares and administers budgets.

§2. Applicability

1. This Chapter applies to all classified confidential managers who are otherwise covered by the Civil Service Rules, and satisfy the criteria for MMS membership as prescribed in Section 1 of this Chapter, and who are excluded from bargaining pursuant to the State Employees Labor Relations Act. This chapter supersedes Chapters 4,5,6,7, 8,12 (Sections 1,2,and 4), and 13 of the Civil Service Rules with respect to MMS positions. All other provisions of State of Maine Civil Service Rules retain full force and effect. If the provisions of this Chapter come into conflict with other aspects of the State of Maine Civil Service Rules with respect to MMS positions, this Chapter will govern.

2. Additionally, Sections 4 and 5 of this Chapter apply to unclassified confidential managers who are excluded from bargaining and whose positions are, by law, subject to the same classification and compensation standards as classified employees and who satisfy the criteria for MMS membership as prescribed in Section 1 of this Chapter.

§3. Definition of Terms

1. The following words and terms, wherever used in this chapter, shall have the following meaning:

A. "Agency" means a department, division, board, institution, or other unit of the Executive Branch, in which all positions are under the same appointing authority.

B. "Allocate" means the assignment of a salary grade, subject to budgetary procedures, to an individual position.

C. "Appointing Authority" means a person or group of persons empowered by the constitution, by statute, or by lawfully delegated authority to make appointments to positions in the State Service.

D. "Benchmark Classification" means a group of positions so sufficiently alike with respect to duties, responsibilities and authority that the same descriptive title may be used with clarity to designate each such position.

E. "Classification Plan" means a system of identifying and describing the different kinds and levels of work which comprise the MMS whereby significantly similar positions are grouped under a common Benchmark Classification.

F. "Classification Schedule" means the listing of individual positions and their designated pay ranges and any amendment/adjustments thereto, resulting from application of the classification plan.

G. "Classify" means to assign an individual position to a benchmark classification.

H. "Demotion" means a rate of pay adjusted to a lower rate in another benchmark classification and/or management function.

I. "Individual position" means a group of current duties and responsibilities assigned or delegated by competent authority, requiring the employment of one person. Individual positions are assigned within the various Benchmark Classifications.

J. "Management Function" means broadly defined series of Benchmark Classifications grouped according to their managerial role.

K. "Promotion" means a rate of pay adjusted to a higher rate in another benchmark classification and/or management function.

L. "Salary Grade Adjustment" means changing an employee's authorized salary grade, based on evaluated job content.

M. "Salary Grade" means an authorized and budgeted minimum, maximum, and intermediate rates of pay (steps).

N. "Salary Range" means grades authorized for a benchmark classification.

O. "Unclassified employee" is in a job that is excluded from the civil service system. [NOTE: All unclassified positions have a basis in law and are not subject to civil service. MMS employees who fill unclassified positions that are excluded from the collective bargaining process are appointed to serve "at the pleasure" of the hiring authority. Examples of unclassified "serve-at-the-pleasure" positions include cabinet members, heads of State boards and agencies and major policy-influencing appointees.]

P. "Transfer" means a change in position or assignment where the rate of pay remains unchanged.

§4. Classification Plan

1. The Director, in consultation with the agency appointing authority, will determine which confidential positions are subject to Chapter 15 of the Civil Service Rules.

2. The Director shall provide for the preparation, maintenance, and revision of a classification plan for all positions subject to this chapter, both classified and unclassified, on the basis of similarity of duties performed and responsibilities assumed. Application of this plan shall result in a classification schedule and the Director shall follow this schedule to classify or reclassify the position of each covered employee to the appropriate Management Functions, Benchmark Classifications, and individual positions.

A. A MANAGEMENT FUNCTION within the MMS broadly defines jobs according to their managerial role.

(1) Classification or reclassification of an individual position from one Management Function to another requires review and approval by the Director.

(2) Management Functions within the MMS include broadly defined jobs designated by the Director.

B. The Director will establish BENCHMARK CLASSIFICATIONS within each Management Function.

(1) Each benchmark classification will have a title, classification code, and salary range, determined by a standard job classification methodology.

C. Each benchmark classification will contain a number of INDIVIDUAL POSITIONS at specific salary grades.

(1) The authority to allocate individual positions to a salary grade within the salary range authorized for a benchmark classification is delegated to the appointing authority, subject to budgetary procedures, based on evaluated job content.

(2) The Director retains final authority to classify individual positions to benchmark classifications upon implementation of the MMS and for all new positions.

(3) Reclassification of an individual position to another Benchmark Classification requires approval by the Director.

(4) The Director may enter into agreements with individual agencies that permit variations to the process prescribed in this section.

D. The Director may remove from the classification schedule those classifications that are no longer functional.

E. No classification, reclassification, allocation, or reallocation may become effective until the funding basis is verified and approval is made known to the appointing authority and employee(s).

3. Transition to the MMS

A. When initially placed in the MMS, incumbents will:

(1) Retain current salary grade, salary step, applicable performance review date, salary review date, longevity date, and other employment-related service dates;

(2) Immediately assume permanent status in the MMS for permanent status employees;

(3) Obtain permanent status upon completion of the probationary period for employees in probationary status at the time of transition; and,

(4) Continue other status and benefits associated with employment as a "Confidential" employee.

4. Classification Specifications and Supporting Documentation

A. Benchmark Specifications - The Director shall provide and maintain written specifications for each benchmark classification of the classification schedule. Each specification shall be the summary document of all positions comprising the class and have the following characteristics:

(1) The benchmark specifications shall include class title, description of type/level of work performed, benchmark competencies, and other information special to the class.

(2) The benchmark classification shall be the official title of each position it represents and this name, or abbreviation approved by the Director, shall be used by the appointing authority on all official records/reports relating to each such position.

(3) Agencies may distinguish individual positions within a Benchmark classification in any manner that meets the needs of the agency for reporting or other purposes.

B. Job Evaluation Reports/Forms - The Director shall gather and maintain documentation that describes individual positions and/or establishes their relation to the organization of which they are a part. Such information may include position description forms, position analysis and/or evaluation forms, organizational charts and general research data.

C. Basis for Allocation and Reallocation - The specifications for individual positions, when considered together with the foregoing supportive data, shall provide basis for allocation and reallocation actions.

5. Notification

A. Upon completion of each job evaluation process for classification of new positions or reclassification of existing positions, the Director shall make written notice to the appointing authority and/or employee to report actions taken and decisions reached.

6. Appeals Process

A. Any appointing authority, MMS employee, who is aggrieved by a classification or reclassification decision offered by the Director, or an appointing authority as delegated by the Director, shall have the right to appeal the decision before the State Civil Service Appeals Board in accordance with 5 MRSA, § 7081-7085.

B. Requests for allocation/reallocation shall not be considered properly filed until all job analysis forms and other related information required by the Director, or appointing authority, to analyze the request and to make a ruling, have been provided.

§5. Compensation Plan

1. Nature of the Compensation Plan

A. Use and Structure of Salary Schedules

(1) The pay of classified and covered unclassified employees shall be on the basis of appropriate weekly schedules or hourly wage rates as adopted and published by the Director for the respective salary grades. Each schedule shall consist of an entrance rate, intermediate rate or rates, and a maximum rate except for those grades where the Director prescribes a flat or single rate. The schedule of weekly salaries and hourly wage rates, including amendments made in accordance with the Civil Service Law and these rules shall constitute the official compensation plan for all covered classified and unclassified positions.

B. Full-time Basis of Salary Schedules

(1) Standard Conditions - The salaries provided in the standard salary schedules are fixed on the basis of full-time service for workweeks of 40 hours.

(2) Non-Standard Conditions - The salary rates for positions specified by the Director as non-standard, and so identified in the official Salary Schedule, are established on the basis of full-time service for the variable work week required by working conditions or outside operating duty.

C. Application of Salary Amounts

(1) Total Remuneration - Any salary paid to an employee in the classified service shall represent the total remuneration for the employee, not including reimbursements for official travel. Except as otherwise provided, no employee shall receive pay from the state in addition to the salary authorized under the schedules provided in the pay plan for services rendered, either in the discharge of ordinary duties, or the performance of any additional duties which may be imposed, or which may be undertaken or performed voluntarily.

D. Subsistence and Maintenance Allowances

(1) Subsistence or maintenance allowances received in lieu of cash must be considered as part of the total salary. Whenever subsistence or maintenance is allowed in lieu of cash, a schedule of such maintenance together with a statement of the policy and rules to be followed in making charges therefore shall be submitted by the appointing authority for the approval of the Director.

2. Maintenance of the Compensation Plan

A. Position Assignment to Benchmark Classification

(1) The Director shall authorize the assignment or reassignment of an MMS position to a Benchmark Classification upon written recommendation from the appointing authority, such recommendation to be made in a manner prescribed by the Director. Benchmark classification assignments are subject to funding approval by the Bureau of the Budget.

B. Position Grade Allocation

(1) Each appointing authority is responsible to effectively manage salaries for its MMS positions within budget and established budgetary procedures.

(2) For each benchmark classification, the Director shall establish a series of salary grades to which agencies may allocate positions assigned to the benchmark classification.

(3) Agency may allocate or reallocate MMS positions to any salary grade authorized for the Benchmark Classification to which the position is assigned. Such allocation or reallocation must be determined utilizing the job evaluation methodology authorized by the Director.

(4) Position grade allocations or reallocations are tentative, subject to funding approval by the Bureau of the Budget.

C. Employee Compensation Administration

(1) Upon initial employment or re-employment, an appointing authority may set the salary at any salary step within the salary grade authorized for the position.

(2) Adjustments to the compensation for a MMS employee shall not exceed the maximum or fall below the minimum amount of the salary grade to which the position is allocated.

(3) Involuntary downward movement based on a non-disciplinary reassignment of duties that results in a lower Benchmark Classification and/or salary grade for an employee's present position shall not cause a decrease in the employee's current salary. The employee's current salary will be retained ("redlined") until such time as it is exceeded by the MMS salary structure or the employee leaves the position.

(4) A reduction in salary for disciplinary reasons may be made in accordance with Ch. 12 Sec. 2.

(5) Reemployment from Layoff - If a former employee is reemployed from layoff to the Individual Position in which the employee was previously employed, the appointing authority shall make the appointment at the same step in the Individual Position that the employee held at the termination of service.

(6) Project Employment - For employment on a strictly nonrecurring project duty, the Director may authorize, as necessary due to recruiting difficulties, a rate of pay which may exceed the maximum of the range provided by not more than 50%. In any case, authorized because of the project nature of the work the employee shall not be entitled to vacation, sick leave or holidays.

(7) Merit Increase Awards.

(a) Salary adjustments within an established salary grade shall be dependent upon specific written recommendations by the appointing authority, which shall be based upon standards of performance as indicated by service ratings or other pertinent data.

(b) Every appointing authority must, at least once in every 12 months, review the work performance of each employee to determine whether the rate of pay of that employee should be advanced to the next step in the range and shall advise the employee in writing of his/her determination and reasons therefore.

(c) Ordinarily, increases in salaries shall not be more than one step, and shall not be made more often that once every 12 months, except that an appointing authority may authorize salary increases of more than one step or more frequently than once every 12 months.

D. Other pay practices.

(1) Each agency is responsible for determining the work period designation for each of its positions in accordance with the federal Fair Labor Standards Act.

E. Overtime Compensation Guidelines

(1) Overtime compensation for non-exempt MMS employees is prescribed by the Fair Labor Standards Act.

F. Complete time and attendance records shall be maintained by each agency.

§6. Recruitment, Application and Selection

1. The intent of this section is to assure that all classified positions in the MMS are filled in an open, fair, and expeditious manner, with the objective of hiring and retaining the best person for the position as quickly as possible, and to encourage decentralized administration of the recruitment and selection processes when it is appropriate for the agency.

2. In filling vacancies each agency will adhere to the following fundamental principles:

A. To consider any or all qualified candidates for hire, promotion, or internal movement.

B. Ensure that hiring decisions are fair, objective, and based on the evaluation of the knowledge, skills, abilities, and other job-related characteristics required for successful job performance.

C. Support affirmative action goals established in agency affirmative action plans.

D. Consider the career development of the agency's employees and other state employees.

E. Ensure that hiring decisions are not based on nepotism, patronage, or political affiliation.

F. Ensure compliance with state and federal laws relating to employee selection and nondiscrimination.

3. Agencies may develop policies for recruitment and selection that are customized for each recruitment and selection need. Agency policies may allow for multiple approaches to fill vacancies in any given classification or position.

4. The Bureau of Human Resources shall investigate allegations of agency failure to adhere to the fundamental principles itemized in sub-section 2 above.

§7. Training and Professional Development

1. The responsibility for training and development is a collaborative effort among State agencies, managers, and the Bureau of Human Resources.

A. Each agency must provide professional development and training opportunities designed to refine and broaden managerial knowledge, skills and abilities. The value of diversity and the administration of State civil service system will be part of this training.

B. Managers are responsible for seeking out and fully participating in opportunities to enhance their knowledge, skills and abilities.

C. The Director will assist agencies by providing leadership and managerial training programs, administering development programs, consultative services, and technical assistance to help agencies address the development needs of their managers. Managers will receive:

(1) New employee orientation within three months of initial employment in Maine State Government;

(2) New managers’ orientation within three months of appointment to managerial position in Maine State Government;

(3) Leadership training to include the MMS Core Leadership Competencies;

(4) Other training and development activities identified in professional development plans.

2. Each agency shall develop policies for managerial development and training opportunities and criteria for providing textbooks, materials, registration fees, and other training and educational expenses, tuition reimbursement, and/or educational leave.

§8. Layoff: Conditions and Procedure

1. Conditions

A. An appointing authority may lay off an MMS employee by reason of abolition of position, shortage of work or funds, good-faith reorganization for efficiency purposes, or other reasons outside the employee's control which do not reflect discredit on the service of the employee.

(1) Layoffs may not be used in lieu of discipline, illegal discriminatory reasons, nepotism, political affiliation, retaliation, whistle blowing, or other circumstances that are not related to reorganization.

B. Any interruption of employment of fifteen calendar days or less is not considered a layoff.

C. Actions Associated with Reduction in Force

(1) The duties formerly performed by laid off employees may be assigned to other qualified employees.

(2) An MMS employee may be demoted by reductions in funding or headcount to other positions in the same or a lower MMS classification for which the agency determines the employee is qualified.

(a) No MMS employee may be required to accept transfer to a position more than 30 miles from his or her current worksite.

(b) No MMS employee may be required to accept demotion. MMS employees so affected may elect layoff in lieu of demotion.

2. Organizational Units

A. Organizational units may be established within an agency on the basis of geographic, functional, budgetary, statutory or other lines.

B. In the event that organizational units are established within an agency, the units will thereafter be used for layoff.

C. The appointing authority must post a listing of established organizational units.

3. Length of service determination

A. Length of service for purposes of layoff is the length of continuous employment with permanent or probationary civil service status. There shall be no pro-ration for part-time and seasonal employment.

B. Length of service of permanent or probationary employees on leave of absence or layoff will continue to accrue.

C. A former MMS employee who is on layoff and who is re-employed within three (3) years of layoff will be credited with length of service.

4. Procedure for layoff

A. When an appointing authority determines that a reduction in force in the MMS is necessary, employees who are to be laid off, transferred, or demoted must be selected in such a way as to preserve the agency's ability to effectively accomplish the mission of the agency. In making determinations, the appointing authority shall consider:

(1) Demonstrable differences between MMS employees based upon the ability and qualifications to perform the duties of the remaining MMS positions, and, demonstrable differences in the quality of past performance.

(2) Where the appointing authority determines the factors in (1) are equal, length of service will be the determining factor in implementing a reduction in force.

5. Reemployment from Layoff

A. The names of permanent MMS employees who are laid off, or demoted in lieu of layoff, must be placed on a statewide directory, which will serve as a resource for agencies in filling MMS vacancies. Retention in layoff status and placement on the statewide directory will last for a period of three years from the date of layoff.

B. An MMS employee who is on layoff, or has been demoted in lieu of layoff, may apply for any MMS vacancy for which he or she is qualified.

C. The agency shall consider an applicant's layoff status in the recruitment and selection process. An MMS employee who is on layoff, has applied for, and is qualified for an MMS vacancy may be interviewed for such MMS vacancy, either individually or concurrently with any other candidate(s).

6. Reemployment from Layoff Provisions

A. Longevity. An employee who is reemployed from layoff within three (3) years of layoff will have time on layoff count for the purpose of determining eligibility for longevity pay.

B. Vacation Accrual. Time on layoff will not count for purpose of adjustments to the vacation accrual rate.

7. Notice to Employees

A. In every case of layoff of a permanent or probationary employee, the appointing authority must give written notice at least fifteen calendar days before the date of layoff. The notice must give reasons for the layoff. A copy of the notice must be forwarded to the Director of Human Resources at the time the notice is given to the employee.

B. In the event that an employee is notified of transfer or demotion under this Chapter, the employee must inform the appointing authority of his/her decision to accept employment or to accept layoff within three workdays.

C. The appointing authority will indicate to all temporary and seasonal employees at time of hire the approximate date of termination of employment. This notice will constitute all notice required under these rules.

D. Notice to employees must include their right to grieve disputed layoff actions pursuant to 5 MRSA, § 7081-7084.

§9. Complaints, Grievances, Investigations

1. Policy - It shall be the policy of the State of Maine to attempt to anticipate grievances or to discover them as soon as they arise, to give employees an opportunity to discuss them with supervisors in whom they have confidence and to find mutually satisfactory solutions as rapidly as possible. In the presentation of grievances at any supervisory level, employees are ensured freedom from restraint, interference, discrimination or reprisal.

2. Law and Rule Enforcement - The Director shall receive and consider any protest and any matter concerned with the administration of the act and these rules. On the basis of such protest or as personally decided, the Director shall make such investigation as deemed desirable concerning all matters touching the enforcement and effect of the provisions of the Personnel Law and these rules and regulations established there under.

3. All grievances and disputes of members of the MMS will be considered consistent with 5 MRSA, § 7081-7084.

§10. Disciplinary Action

1. An appointing authority may discipline a MMS employee for misconduct, unsatisfactory job performance or other cause.

A. Disciplinary action is defined as suspension with or without pay, demotion or dismissal.

B. The specific reason(s) for suspension, demotion or dismissal shall be furnished to the employee in writing prior to the effective date of the disciplinary action.

2. Appeal Procedure

A. A permanent employee may appeal a disciplinary action pursuant to 5 MRSA, § 7081-7085, as amended.

B. Probationary, acting capacity, project and other non-status employees who may be disciplined are not entitled to an appeal as otherwise provided.

3. Related provisions

A. No length of service shall be acquired during the period of disciplinary suspension.

B. Employees who are exempt from the overtime provisions of the Federal Fair Labor Standards Act may be suspended without pay pursuant to the provisions of the Fair Labor Standards Act.

History

• STATUTORY AUTHORITY: 5 MRSA, § 7036, sub-§ 17
• EFFECTIVE DATE: July 13, 2002
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

18-553 Bureau of Alcoholic Beverages and Lottery Operations (BABLO)

Chapter 1 Liquor Inventory Exchanges from Agency Liquor Stores

Code Me. R. 18-553 Ch. 1 Liquor Inventory Exchanges from Agency Liquor Stores {#sec-18-553-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 1}

State liquor stores will receive liquor inventory exchanges from agents in accordance with the following guidelines:

1. The agent shall present a copy of the invoice or cash register receipt to the State liquor store for the merchandise returned.

2. The Bureau shall provide credit or at the sole discretion of the Bureau provide a refund to the full value of the purchased items as indicated by the agent’s invoice. The Bureau shall deduct a 10% restocking charge from the refund or exchange value for all items returned, except for those items received by the agent in error.

3. For items received by the agent in error, the exchange must occur within two weeks of purchase by the agent. If returned within two weeks of purchase, then the full exchange value shall be provided to the agent by a clerk at the State liquor store.

4. If liquor is exchanged due to items being no longer in demand, the exchange must occur within six months of receiving the product from either the State liquor store or from the bailment warehouse.

5. There is no exchange of Special Order Merchandise.

History

• STATUTORY AUTHORITY: 28-A MRSA §83
• EFFECTIVE DATE: March 23, 1999
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 2 Pricing of Spirits

Code Me. R. 18-553 Ch. 2 Pricing of Spirits {#sec-18-553-ch.-2 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 2}

SUMMARY: This rule establishes the wholesale and retail price-setting policy with respect to the sale of spirits in the State of Maine. This rule also establishes the discount rate (wholesale price) for agency liquor stores.

I. Definitions

As used in this Rule, unless otherwise indicated, the following words and phrases are defined as follows:

A. Agency liquor store. “Agency liquor store” means a person who is licensed by the Bureau to sell spirits for off-premise consumption. Agency liquor stores are the sole source of spirit sales to on-premise licensees.

B. Bureau. “Bureau” means the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.

C. Commission. “Commission” means the State Liquor and Lottery Commission established by 5 M.R.S §12004-G, sub-§14.

D. Director. “Director” means the Director of the Bureau of Alcoholic Beverages and Lottery Operations.

E. Line extension. “Line extension” means the introduction of an additional bottle size of a currently approved spirits product or the introduction of an additional flavor in the same size of a currently approved spirits product.

F. List price. “List price” means the regular retail price of spirits products as approved by the Commission.

G. NABCA. “NABCA” means the National Alcohol Beverage Control Association which is a trade association representing eighteen (18) jurisdictions known as “control jurisdictions.” Control jurisdictions regulate the wholesale and retail sale and distribution of alcohol within those jurisdictions.

H. Premises. “Premises” means all parts of the contiguous real estate occupied by a person licensed in any way by the Bureau over which that person has direct or indirect control or interest, that the person uses in the operation of a business licensed by the Bureau and that has been approved by that department as proper places for the exercise of a licensed privilege. Premises includes the places defined in 28-A M.R.S §2, sub-§24, ¶¶A and B.

I. Special price. “Special price” means a temporary reduction of a list price for a specific spirits product as approved by the Director.

J. Spirits or Spirits Product(s). “Spirits” or “Spirits Product(s)” means any liquor produced by distillation or, if produced by any other process, strengthened or fortified by the addition of distilled spirits of any kind. Spirits does not include low-alcohol spirits products as that term is defined in 28-A M.R.S§2, sub-§16-A or fortified wine as that term is defined in 28-A M.R.S. §2, sub-§11-B.

K. State's Spirits Distribution Contractor. “State's Spirits Distribution Contractor” means an entity or entities contracted by the State to distribute spirits to establishments licensed by the Bureau to sell liquor for off-premise consumption. The State's Spirits Distribution Contractor is prohibited from selling spirits directly to establishments licensed by the Bureau to sell spirits for on-premise consumption.

L. Supplier. “Supplier” means a person who distills, rectifies, brews, ferments, bottles, or otherwise produces spirits.

M. Supplier’s Representative. “Supplier’s Representative” means a person or group, licensed as a sales representative in the State of Maine, contracted by a supplier to be the sole representative of the supplier's product at the retail and wholesale level.

N. Vendor of record. “Vendor of record” means the “primary source of supply,” as that term is defined in 28-A M.R.S §1451, sub-§3.

II. Pricing

All final list and special pricing decisions shall be made solely by the Director in accordance with this Rule and Title 28-A of Maine law. Final list pricing decisions by the Director are subject to the approval of the Commission.

Pricing of New Spirits Products

After the Commission has approved a new spirits product for listing, the Director shall propose a price for the spirits product subject to the approval of the Commission for that spirits product.

The Director shall establish the list price of new spirits products and may take into account any of the following factors:

a. The NABCA price exchange book;

b. The NABCA retail price index;

c. New England control states' current retail pricing;

d. Costs of similar products in an applicable category and sold in Maine;

e. Whether a product is a line extension;

f. Whether a spirits product has an acceptable gross profit margin;

g. The cost of product, including freight, supplier's insurance, applicable bailment, and other similar charges;

h. Agency store profit margin; and

i. Price point adjustments.

3. Retail price points for products packaged at 375 milliliter or larger shall be limited to the following values: $XX.49 or $xx.99. Retail price points for products under 375 milliliter shall be limited to the following values: $XX.29; $XX.49; $XX.79 or $XX.99.

B. List Price Changes

1. List price change requests may be submitted to the Director by suppliers, suppliers’ representatives, or vendors of record.

2. Review of list price change requests shall be completed quarterly by the Director and approved by the Commission, with any price changes effective by the first day of the following months: February, May, August, and November.

3. All requests for list price changes must be submitted in a form or format as prescribed by the Director at least ninety (90) days prior to the first of each month in which a price change, if approved, would be effective.

4. List prices may be reviewed monthly by the Director, regardless of whether a request has been made. The Director will notify suppliers, suppliers’ representatives or vendors of record of any price changes initiated under this subsection at least sixty (60) days in advance of the effective date of any change.

5. The following process shall occur with respect to list price decisions:

a. Prior to rendering final decisions on list prices, the Director shall make a preliminary decision on list prices being considered.

b. Notice of the Director's preliminary decision on list prices shall be given to suppliers, supplier’s representatives, vendors of record, or other stakeholders, any of whom may comment on the Director's preliminary decision. Notice may be given by the Director electronically or in hardcopy. All comments concerning the Director's preliminary decision about list prices must be submitted in writing within ten (10) days of the notice.

c. After receiving and reviewing comments submitted pursuant to paragraph b of this subsection, the Director shall issue final decisions on any list prices within fifteen (15) days of the close of the comment period.

d. At its next scheduled meeting, the Commission will consider any of the Director's decisions on list prices and determine whether to approve or disapprove the Director's final price decisions.

If any of the Director’s price change decisions are not approved by the Commission, the list price will not be changed and subsequent change requests may be submitted during the next pricing cycle as set forth in these Rules.

The Commission's determination of whether to approve or disapprove the Director's list price change decisions is final.

C. Special Pricing

Suppliers, supplier’s representatives or vendors of record may request, in writing, special pricing for products packaged at 375 milliliter and higher to the Director.

All requests and recommendations must be made sixty (60) days prior to the requested effective date of the proposed special price.

The Director's decision on special price requests and recommendations is final.

All cost-sharing decisions related to special pricing shall be authorized solely at the discretion of the Director. Only the State shall participate in cost-sharing with the suppliers, suppliers’ representatives or vendors of record.

Special pricing of spirits products may also be initiated by the Director at the Director’s discretion.

In making a special pricing decision, the Director may consider any of the following factors:

a. Whether the subject spirits product has been out of stock ninety (90) days prior to the special price request;

b. Performance of the subject spirits product if the spirits product has been specially priced previously;

c. The amount of cost-sharing between the supplier, supplier’s representative or vendors of record and the State;

d. Seasonal and promotional factors; and

e. Any of the criteria listed in section II(A)(2) of these Rules.

III. Agency Liquor Store Profit Margin

A. Minimum Discounts. Agency liquor stores must purchase spirits products from the State. The State will sell spirits products to agency liquor stores at wholesale prices (discount off retail prices) based on the retail prices of spirits products as follows:

For spirits products at a retail price of $24.99 or less, the discount rate is twelve percent (12%) of the list price; and

For spirits products at a retail price of $25.00 or more, the discount rate is fourteen percent (14%) of the list price.

B. Growth Incentive. BABLO seeks the support of agency liquor stores to achieve its volume recovery/growth objective. To reward this support, the Bureau will increase Minimum Discounts as follows:

To be eligible for a growth incentive, the growth of nine (9) liter cases must meet or exceed a minimum total growth rate of 4.5% (four and ½ percent). Growth of less than 4.5% (four and ½ percent) over the previous year would not produce a discount increase.

The growth achieved in any year will increase the discount rate starting the following year. FY15 is year one and performance that year would earn the discount rate increase, if achieved, starting in FY16.

The discount rate increase would increase as follows for growth:

For growth of nine (9) liter cases of 4.5% (four and ½ percent), the discount rate increases by 0.75% (¾ of one percent);

For growth of nine (9) liter cases of 5% (five percent), the discount rate increases by 1.00% (one percent);

For growth of nine (9) liter cases of 5.5% (five and ½ percent), the discount rate increases by 1.75% (one and ¾ percent); or

For growth of nine (9) liter cases of 6.0% (six), the discount rate increases by 2.50% (two and ½ percent).

If the gross profit of the spirits business increases more than 10% in any year, the discount rate will be increased by 1.00%. This increase is in addition to the increase described in B.3 of this subparagraph.

All discount increases achieved as described in this section would continue each year but would be capped when the total discount rate reaches eighteen percent (18%).

Once the discount rate is increased pursuant to subparagraph B.3 and/or B.4, it would not be decreased by the Bureau absent a change in rule or statute.

Growth incentives apply to all agency liquor stores equally.

History

• STATUTORY AUTHORITY: 28-A M.R.S.A. §88
• EFFECTIVE DATE: June 19, 2004 - filing 2004-215
• AMENDED: August 25, 2014 – filing 2014-203
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 3 On Premise Data Collection Cost Mitigation Stipend

Code Me. R. 18-553 Ch. 3 On Premise Data Collection Cost Mitigation Stipend {#sec-18-553-ch.-3 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 3}

SUMMARY: This rule establishes the process for a one-time stipend to be paid by the Bureau to agency liquor stores licensed as reselling agents as of July, 1, 2016, for mitigating the cost of providing on-premise sales data to the Bureau from agency liquor stores which were licensed as reselling agents as of July 1, 2016.

The criteria for determining the one-time stipend for an agency liquor store licensed as a reselling agent as of July 1, 2016, shall be as follows:

For a reselling agent that uses an electronic Point of Sale System that captures and tracks sales and that can produce the required monthly data, the Bureau shall allow a one-time stipend of up to $250.

For a reselling agent that uses an electronic Point of Sale System that captures sales and that can produce the required monthly data, the Bureau shall allow a one-time stipend of up to $250.

For a reselling agent that uses an electronic Point of Sale System that is not capable of tracking sales and that must create an alternative electronic process to meet the requirement of providing on-premise sales data to the Bureau, the Bureau shall allow a one-time stipend of up to $500.

For a reselling agent without a point of sale system that must manually track and report on-premise sales data to the Bureau, the Bureau shall allow a one-time stipend of up to $500.

The one-time stipend is intended to mitigate the costs incurred by reselling agents in complying with the new reporting requirements. Therefore, in order to receive a stipend pursuant to this rule, a reselling agent must sufficiently demonstrate to the Bureau that is has incurred such costs. Stipends will be limited to an amount equal to the actual costs incurred by the reselling agent and not to exceed the maximum amounts set forth in this rule.

History

• STATUTORY AUTHORITY: 28-A MRS §§ 83-A, 606 sub-§4-A
• EFFECTIVE DATE: February 15, 2017 – filing 2017-020

Chapter 4 Agency Liquor Store Relocation: Rules Governing the Process to Provide Input by Agency Liquor Stores in the Same Municipality of a Relocation Request

Code Me. R. 18-553 Ch. 4 Agency Liquor Store Relocation: Rules Governing the Process to Provide Input by Agency Liquor Stores in the Same Municipality of a Relocation Request {#sec-18-553-ch.-4 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 4}

SUMMARY: This rule establishes the process by which an agency liquor store in the same municipality as the agency liquor store licensee's proposed relocation may declare support of or objections to a proposed relocation.

Factors Considered by the Bureau. In accordance with 28-A M.R.S. §453-D, 452 and 18-553 C.M.R ch. 130, “Selection and Location of Agency Stores”, the Bureau shall weigh the following factors before finally acting on a relocation application: location, hours of operation, parking, square footage, services offered, selling area, handling (beer and wine sales), storage, beer and wine inventory, security and start up inventory, and submissions and response to submissions filed under this Rule. As part of its review of the relocation application the Bureau may consider sales data held for the Bureau by the entity awarded a contract under 28-A M.R.S. §90 for the preceding twelve (12) month period associated with the applicant agency and those agencies participating in the proceeding.

Record. The Bureau shall make part of the record the application, the municipal approval of the relocation, proof of notice to the other agency liquor stores in the municipality of the relocation, the Liquor Licensing Inspector’s inspection report on the proposed location and any submissions and response to submissions described in sections 8 and 9 of this Rule. Data considered by the Bureau in support of the Bureau’s decision shall also be made part of the record.

Appointment of a Final Decision Maker. The Director or the Director’s designee shall act as the Final Decision Maker for the Bureau in this proceeding.

Notice. The Bureau shall publish notice of this proceeding in the primary newspaper servicing the municipality and on the Bureau’s website at the address listed in section 7 of this Rule.

Service of Notice of the Proceeding

Notice shall be either sent by certified mail, hand delivered by the Bureau’s Liquor Licensing Inspector or both to the applicant and all agency liquor stores in the municipality where relocation is requested.

Content of Notice; Requirements on the Form and Format of Submissions and Response.

Notice shall contain the following information:

1. Deadline. For initial submission by agency liquor stores other than applicant, 15 calendars days from the date of the notice; for response from the applicant, 5 business days after submissions from agency liquor stores are posted to the Bureau’s website. The applicant’s response may address one (1) or more of the submissions that support or object to the proposed relocation.
2. Appointment of Final Decision Maker. The name and email address of the Final Decision Maker appointed by the Director or the Director’s designee.
3. Content. Reference to content of submissions and response as set forth in Sections 8 of this Rule.
4. Form and Format. Submissions must be filed on no more than 15-single sided pages on 8½x11 paper with a Times New Roman 12-point font in a PDF format. The submission must be filed electronically by email to the Final Decision Maker identified in the notice. The applicant’s response to submissions must be filed on no more than 5- single sided pages on 81/2x11 paper with Times New Roman 12-point font in PDF format. The response to submissions must be filed electronically by email to the Final Decision Maker identified in the notice.

Posting of Submissions and Response.

The Bureau shall post all submissions from participating agencies and the applicant’s response filed pursuant to this Rule to the Bureau’s website at www.maine.gov/dafs/bablo/liquor_license/agencyrelocation within 24 hours after the deadlines established under Section 6 of this Rule.

Content of Submission from Participating Agency Liquor Stores and Applicant’s Response.

1. For those supporting relocation, the submission and the applicant’s response must provide information on how the relocation would benefit the spirits business in Maine, and must provide facts to support claims in favor of relocation of the applicant.
2. For those objecting to relocation, the submission must provide information on what impact the relocation will have on their agency liquor store business, and the submission must provide facts to support claims objecting to relocation of the applicant.

Decision by the Bureau. The Final Decision Maker shall render a written decision on the application for relocation. The decision of the Bureau by the Final Decision Maker appointed under Section 2 of these rules constitutes final agency action and may be appealed pursuant to 28-A M.R.S §453-A, sub-§7.

History

• STATUTORY AUTHORITY: 28-A M.R.S. §453-D, sub-§3
• EFFECTIVE DATE: February 9, 2019 – filing 2019-029

Chapter 10 Maine State Lottery

Code Me. R. 18-553 Ch. 10 Maine State Lottery {#sec-18-553-ch.-10 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 10}

Definitions

License Eligibility and Application

Special Licenses

Conditions of License

Non-Transferability of License

License Fee

Bonding of Agents

License Expiration and Renewal

Revocation and Suspension of a License

Lost, Stolen and Damaged Tickets

Sale, Inspection, Compensation, Depositories and Ticket Purchases

Instant Lottery Tickets

Tickets

Subscription Lottery Tickets

15. Prize Structure

16 Drawings

Prize Payment and Claiming Prizes

Eligibility to Buy

Commission Policy

20. Vouchers

21. Severability of Provisions

SUMMARY: This chapter provides the rules for operation of the Maine State Lottery including types of games offered, price of tickets, number and size of prizes, manner of selecting winning tickets, the method of paying prizes, the sale of tickets and the licensing, performance, fee charges and compensation of ticket agents

SECTION 1. DEFINITIONS

Act. “Act” means the Maine State Lottery laws as found in 8 M.R.S.A. chapter 14-A.

Agent. “Agent” means a person or that person’s representative who has been licensed to sell lottery tickets under the Act.

Application or App. “Application or App” means a software application used on a device that allows communication between a customer and an agent licensed to receive orders for draw and instant games using the internet.

Bureau. “Bureau” means the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.

5. Commission. “Commission” means the State Liquor and Lottery Commission.

6. Commissioner. “Commissioner” means the Commissioner of Administrative and Financial Services.

7. Director. “Director” means the director of the bureau.

8. Drop box. “Drop Box” means any container, designated by the State Lottery as a receptacle for non-winning tickets or any other form of entry designated by the State Lottery for the purpose of special promotions.9.

Person. “Person” means an individual, association, corporation, club, trust, estate, society, company, receiver, trustee, assignee, referee or other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, or any combination of individuals. “Person” also means all departments, commissions, agencies, and instrumentalities of the State, including counties and municipalities and agencies and instrumentalities of counties or municipalities.

State Lottery. “State Lottery” means the Maine State Lottery established and operated pursuant to the Act.

Substantial change of ownership. “Substantial change in ownership” means a transfer of 50% or more of the equity of any business licensed pursuant to these rules.

Ticket. “Ticket” means a lottery ticket or share issued by the State Lottery for sale to the general public. “Ticket” includes an instant lottery ticket, draw game lottery ticket or other terminal generated ticket.

Voucher. “Voucher” means any lottery printed receipt redeemable for cash or merchandise.

13. Draw Game or Lottery Draw Game. “Draw Game” or “Lottery Draw Game” means a lottery game wherein a person selects a number or numbers from a predetermined set of numbers where a drawing is held.

SECTION 2. LICENSE ELIGIBILITY AND APPLICATION

Issuance. The director or director’s designee may issue licenses to any qualified person to act as an agent on behalf of the State Lottery to sell lottery tickets.

Limitation. A license to act as an agent may not be issued to any person to engage in business exclusively as an agent for the State Lottery.

.

Application. A person interested in obtaining a license as an agent shall file an application form with the State Lottery.

Qualifications for agent license. In deciding whether to issue a license to an applicant, the director shall consider all relevant factors, including, but not limited to the following. When considering these factors, the director or director’s designee may establish standards for a factor regarding a license that includes authorization to sell draw games that are different from standards for a license to sell instant games only.

1. The financial responsibility and security of the person and the person’s business or activity.
2. The accessibility of the applicant’s place of business or activity to the public;
3. The sufficiency of existing licenses in the applicant’s area to serve the public convenience;
4. The volume of expected sales;
5. The honesty and integrity of the applicant;
6. The veracity of the information supplied in the application for a lottery license;
7. Any debts owed by the applicant to the State of Maine;
8. The business experience and general fitness of the applicant to act as a agent for the State Lottery; and
9. Whether licensing of the applicant would be in the State Lottery’s and the public’s interests.

Grounds for denial. The director or director’s designee may deny an applicant a license to act as an agent for the State Lottery based on the determination that licensing of the applicant is not in the best interests of the State Lottery.

Ineligibility. The following persons are ineligible to obtain a license as a lottery agent:

1. A person who has been convicted of any criminal offense;
2. A firm or corporation in which a person who has been convicted of a criminal offense has a proprietary, equitable or credit interest of 5% or more;
3. An organization in which a person who has been convicted of a criminal offense is an officer, director or managing agent, whether compensated or not;
4. An organization in which a person who has been convicted of a criminal offense is to participate in the management or sale of lottery tickets; and
5. A person who is younger than 18 years of age. This paragraph does not prohibit an agent’s employee under the age of 18 from selling lottery tickets in the regular and ordinary course of the agent’s business.

Rehabilitation. The director or director’s designee, subject to the approval of the commission, may grant a license as a lottery agent to any person, firm, corporation or organization that is ineligible for a license under subsection 6 because of a conviction of a criminal offense if the person who was convicted of the criminal offense proves to the satisfaction of the commission that the person has been fully rehabilitated.

SECTION 3. SPECIAL AND SEASONAL LICENSES

Special licenses. The director or director’s designee may issue special licenses subject to such special conditions or limitations as considered prudent and consistent with the dignity of the State, the general welfare of the people, and the dignity and integrity of the State Lottery.

Special limitations and conditions. Special limitations and conditions include, but are not limited to:

1. The duration of the license;
2. Hours or days of sales;
3. Location of sales;
4. The specific business or organization which may sell tickets;
5. Specific sporting, charitable, social or other special events where lottery tickets may be sold; and
6. Application or internet-based ordering; and
7. Any other conditions or limitations considered prudent and determined to be in the best interests of the State Lottery and the State of Maine.

Seasonal license. A seasonal license may be issued by the director or director’s designee under such terms and subject to such limitations and conditions as considered prudent and in the best interests of the State. A seasonal license must be valid for a predetermined length of time. The period of time must be reviewed annually by the director.

Subject to rules. Agents holding special or seasonal licenses are subject to all the rules adopted by the commission and the statutes governing the State Lottery and the “Agent Agreement for Sale of Lottery Tickets.”

SECTION 4. CONDITIONS OF LICENSE

The following are conditions of a license to sell lottery tickets.

Conditions of license. The agent agrees to sign and be bound by the terms and conditions specified in the “Agent Agreement for Sale of Lottery Tickets.”

Legal requirements. The agent agrees to be bound by and to comply with the laws and statutes governing the State Lottery and any rules, instructions and directives of the director and the commission. The agent shall hold the State and the commission, its officers, agents, and employees, harmless from any liability that results from the agent’s failure to comply with the Act, and the rules, instructions and directives issued by the director and the commission.

Tickets for sale. The agent agrees to have lottery tickets visibly displayed for sale to the general public during normal business hours.

Promotion. The agent agrees to actively promote the sale of all State Lottery products which the agent is authorized to sell and to post prominently point-of-sale and other promotional materials provided by the State Lottery.

Sales-related materials. The agent agrees to maintain authorized displays, drop boxes, and other materials used in conjunction with sales in accordance with instructions issued by the commission or the director.

Records. The agent agrees to maintain current and accurate records of all operations in conjunction with the sale of lottery tickets and in conformity with the rules, instructions, and directives of the Director. The agent’s records must be available to representatives of the State Lottery upon request for inspection and audit.

Price. The agent agrees not to sell tickets at any price other than the price stated on the ticket.

7-A. Promotional uses. The director, with the approval of the commission, may issue guidelines permitting the commission or director to approve the use of tickets for sales promotions.

Report of loss or theft. The agent agrees to immediately report the loss or theft of any lottery tickets and their identifying numbers to the State Lottery and local law enforcement authorities.

SECTION 5. NON-TRANSFERABILITY OF LICENSE

License nontransferable. A State Lottery agent license is not transferable. The State Lottery is under no obligation to assign or transfer the license or any lottery terminal to a new owner.

Sale or cessation of business. An agent must notify the State Lottery at least 15 business days before the agent’s intent to sell, substantially change ownership or cease operation of the agent’s business either temporarily or permanently. If an agent sells, ceases operation, or substantially changes ownership of a business to which a license has been issued pursuant to these rules, the license terminates and is deemed to have expired as of the date the agent sells, ceases operation, or substantially changes ownership. The State Lottery may remove an on-line terminal from an agent’s premises if there is a sale or cessation of business or a substantial change of ownership of the agent.

Change of business name or location. If the business to which a license has been issued pursuant to these rules changes its business location or business name without prior approval of the State Lottery, the license terminates and is deemed to have expired as of the date of that change. Every change of business location or business name must be reported in writing to the director at least 15 days prior to the change. The director may waive the 15-day notification requirement if the director believes that waiver is in the best interests of the State Lottery.

SECTION 6. LICENSE FEE

Fee. The State Lottery may charge a non-refundable license application fee not to exceed

$50 for each license for which application is made.

Change of location or business; no fee. A license fee may not be charged if a business for which a license has already been issued changes its location or business with the prior written approval of the State Lottery but does not substantially change ownership.

SECTION 7. BONDING OF AGENTS

Bond. The director or director's designee may require a surety bond from any agent in an amount that the director or director’s designee determines is necessary to protect the State and the State Lottery from any monetary loss because of an agent’s activities in the sale of tickets. The bond, if required, is a condition of becoming or continuing as an agent for the State Lottery.

Financial statement. The State Lottery may require a financial statement revealing the financial condition of any person or organization seeking to become or continue to be an agent for the State Lottery. In lieu of or in addition to any surety bond which the State Lottery requires, the State Lottery may seek any other guarantee or surety, including the acquisition of a blanket bond.

SECTION 8. LICENSE EXPIRATION AND RENEWAL

Duration of license. An agent’s license remains in full force and effect until:

1. The agent terminates the agent’s relationship with the State Lottery by failing or refusing to sell lottery tickets or by otherwise communicating to the State Lottery that the agent no longer intends to sell tickets on behalf of the State Lottery;
2. The license is terminated by a substantial change of ownership or a change of business location or name without State Lottery approval; or
3. The license is terminated by revocation or suspension by the State Lottery pursuant to the Act and these rules.

Surrender of license. An agent whose license has expired or been terminated for any reason shall immediately surrender to the director, or the director’s designee, the agent’s license and any other lottery material supplied to the agent.

Obligation to provide tickets. Although an agent possesses a valid license, the State Lottery may decline to provide lottery tickets for sale by the agent or disconnect a lottery terminal if the agent is in violation of any provision of the Act, these rules or the terms and conditions of the “Agent Agreement for Sale of Lottery Tickets.” A license provides the agent the authority to sell tickets on behalf of the State Lottery; it does not require the State Lottery to provide the agent with tickets to sell.

SECTION 9. REVOCATION AND SUSPENSION OF A LICENSE

Suspension or revocation. The commission may suspend or revoke, after notice and hearing and in a manner consistent with the provisions of the Maine Administrative Procedure Act, any license issued by the State Lottery to an agent.

Temporary suspension. An agent’s license may be temporarily suspended by the director without prior notice, pending any prosecution, investigation or hearing.

Just cause. A license may be suspended or revoked by the commission for just cause, which includes, but is not limited to, any one or more of the following reasons:

1. Failure to account for tickets received or the proceeds of the sale of tickets, to file a bond if required by the commission or to comply with the instructions of the commission or the director concerning the licensed activity;
2. Any conviction of a criminal offense of a person who becomes ineligible for a license under section 2 as a result of the conviction;
3. Failure to file any return or report, to keep appropriate records or to pay any tax;
4. Engaging in fraud, deceit, misrepresentation or conduct prejudicial to public confidence or to the State Lottery;
5. Insufficiency of the number of tickets sold by the agent;
6. A material change, since issuance of the license, with respect to any of the matters considered by the director in issuing the license; or
7. Any violation or failure to comply with any provision of the Act, these rules, or the terms or conditions of the “Agent Agreement to Sell Lottery Tickets.”

Effect of suspension or revocation of Tri-State Lotto license. Except in the case of suspension or revocation for the reasons set forth in 8 M.R.S.A. §412 sub-§1, paragraphs E or F, any suspension or revocation of a Tri-State Lotto license automatically results in suspension of a license issued by the Maine State Lottery.

Notice of hearing. If the director, acting pursuant to 8 M.R.S.A. §372, sub-§2, paragraph F, recommends to the commission that it suspend or revoke an agent’s license, the director shall notify the agent in writing by regular mail that the commission will conduct a hearing to determine whether there is just cause to suspend or revoke the agent’s license. The director shall provide the notice at least 20 days before the scheduled date of the hearing. The director shall provide notice to the public if required by the Maine Administrative Procedure Act, 5 M.R.S.A. §9052, sub-§3.

Hearing. A hearing to determine whether an agent’s license should be suspended or revoked must be conducted by the commission. The chair of the commission, or a person designated by the commission pursuant to 5 M.R.S.A. §9062, shall preside over the hearing. The hearing must be recorded in a form capable of being reduced to a written transcript. The presiding officer shall rule on all questions of the admissibility of evidence, administer oaths and affirmations, regulate the course of the hearing, and take other actions as authorized by statute or these rules.

Hearing procedures. The director has the burden of presenting the reasons why just cause exists to suspend or revoke the agent’s license. The director has the burden of proof of establishing by substantial evidence that just cause exists. The rules of evidence observed by courts are not applicable to revocation or suspension proceedings, but the provisions of the Maine Administrative Procedure Act governing evidence, (5 M.R.S.A.

§9057) apply. The agent may cross examine any witnesses called by the director and inspect any documentary evidence submitted by the director. The agent may call witnesses on the agent’s behalf, examine such witnesses and present any documentary evidence on the agent’s behalf.

Decision. At the conclusion of the hearing, the commission shall render its decision on the record or may issue a written decision. The decision of the commission constitutes final agency action within the meaning of the Maine Administrative Procedures Act. If the agent’s license is suspended or revoked, the agent must be advised on the record or in writing of the right to have the commission’s decision reviewed by the Superior Court.

Final accounting. Upon termination of an agent’s license for any reason, including revocation or suspension, the agent shall meet with the assigned lottery staff member on a date designated by the director for the purpose of rendering a final lottery accounting.

Surrender of license. Upon notice of revocation or suspension, an agent shall immediately surrender to the director or the director’s designee, any lottery material supplied to the agent.

Failure of agent to appear. If an agent fails to appear at any hearing before the commission to determine whether just cause exists to suspend or revoke the agent’s license, the commission may conduct the hearing in the absence of the agent and render such decision as it considers proper on the basis of the evidence presented.

SECTION 10. LOST, STOLEN AND DAMAGED TICKETS

Stolen, lost or damaged tickets. Stolen, lost, or damaged tickets are considered void and are not eligible to win a prize. If tickets are stolen or lost while in the possession of an agent, the agent shall pay the State Lottery for the tickets less sales commission. Agents are responsible for filing claims with their insurance companies, if any, if tickets are lost or stolen while in the agent’s possession. Tickets that are mutilated or damaged while in the possession of an agent are the responsibility of the agent, and the agent shall pay the State Lottery for the tickets less sales commission.

Report of loss or theft. The agent shall immediately report any theft or loss of tickets to the State Lottery and to local law enforcement authorities and shall pay for the tickets on the agent’s settlement date.

Effect of recovery of tickets. If lost or stolen lottery tickets are recovered prior to being received by an agent, the agent is not liable for payment for the tickets. The State Lottery shall issue a credit for the tickets recovered if the agent has promptly notified the State Lottery of the theft or loss and the agent has been invoiced for the tickets.

Removal from pool. Stolen, lost or damaged tickets may be removed from the prize pool in question and do not entitle any person to any prize.

Credit for mutilated or damaged tickets. An agent may be issued a credit for a mutilated or damaged ticket if the director finds that fairness justifies the credit. A mutilated or altered ticket is void and does not entitle any person to any prize.

Hold harmless. If an agent has been issued a credit for recovered stolen, lost, mutilated or damaged tickets, the agent must agree to hold the Lottery harmless from any liability.

Extenuating circumstances. If, in the judgment of the director, there are extenuating circumstances, the director shall evaluate each individual case and make such adjustment, credit or decision as the director judges fair and reasonable and in the best interests of the State Lottery.

SECTION 11. SALE, INSPECTION, COMPENSATION, DEPOSITORIES AND TICKET PURCHASES

Selling points. The State Lottery may sell tickets at any selling point it establishes within the State of Maine.

Effect of order or acceptance of tickets. All instant tickets, ordered or accepted by an agent from the State Lottery or its authorized representative, are deemed to have been purchased by the agent.

Issuance by commission. A lottery ticket may not be sold by an agent unless the ticket has been issued to the agent by the commission.

Inspection. An agent shall allow inspection of the premises upon reasonable request by authorized representatives of the State Lottery. The inspections may be made without prior notice to the agent.

Sales commission. An agent is entitled to a minimum 7% sales commission for all instant tickets sold and a minimum 5% sales commission for all draw and terminal generated game tickets sold. The director may, with the approval of the commission, increase the minimum sales commission for both instant and on-line draw game tickets sold for particular games. Agents who sell tickets in a non-standard manner, including instant tickets sold through a vending machine or other approved device, may be subject to a different sales commission structure as determined by the commission.

Seller’s bonus. An agent is entitled to a selling bonus not to exceed 1% of the prize for winning instant tickets of $1,000 and over sold at the agent’s location. An agent is entitled to a selling bonus for winning draw and terminal generated game tickets sold at the agent’s location as dictated by the game rules.

Additional incentives. The director may, with the approval of the commission, award additional cash prizes or other incentives, including cashing bonuses to agents.

Deposit; reports. The State Lottery may require agents to establish electronic funds transfer (EFT) accounts and establish procedures for transferring funds from the account that are owed to the State Lottery on a timely basis. An agent shall deposit into the agent’s EFT account on a timely basis all money received from the sale of lottery tickets, less the amount of any sales commissions, fees and sums paid out to winners as prizes by the agent.

Insufficient funds. The commission may establish a procedure for suspension and termination of an agent’s license if the agent has accumulated at least 3 notices of insufficient funds to pay amounts owed to the State Lottery. The procedure may require payment of all amounts owed and the establishment of an escrow account to ensure payment before the agent’s license may be reactivated.

SECTION 12. INSTANT LOTTERY TICKETS

Authority to operate instant lottery games. The director, with the approval of the commission, may operate instant lottery games and prepare tickets for instant lottery games for sale to the general public.

1-A. Price. The Director, with the approval of the Commission, may sell tickets at any selling price it establishes within the State of Maine.

Duration of games. The duration of an instant lottery game must be determined by the director and announced in appropriate directives.

Format of game. A series of numbers or symbols concealed from view must be printed on each ticket for an instant lottery game. According to procedures and instructions as announced and provided with each instant game, matching or adding the proper symbols or numbers when revealed entitles the bearer of a valid ticket to the prizes indicated on the ticket in accordance with the prize structure previously announced in appropriate directives. No drawing may be required to determine the winner of an instant lottery ticket. Drawings may be held to determine additional winners of prizes in connection with any instant lottery game. The printed instructions on the instant lottery ticket constitute the “rules of the game” being played.

Possession of ticket required to win. In order to be entitled to the prize indicated on an instant lottery ticket, the bearer must possess a valid winning ticket. No exceptions may be made to this rule.

Signed agent agreement required. An agent may not sell instant lottery tickets unless the agent has signed the “Agent Agreement for Sale of Lottery Tickets.

SECTION 13. DRAW GAME LOTTERY TICKETS

Authority to operate draw games. The director, with the approval of the commission, may operate draw lottery games requiring a drawing of numbers to determine the winners. The director may arrange for the preparation of tickets to draw lottery games which must be sold at a price determined by the commission. Tickets to draw lottery games must be imprinted with the amount of the wager or price of the ticket, as well as the drawing date or dates. All ticket sales must be made through an official lottery draw game computer terminal or other device approved by the commission.

1-A. Price. The commission shall determine the price of tickets within a range of $1 to $20.

Signed agent agreement required. Tickets may be sold only by licensed agents pursuant to the Act, these rules, and the terms and conditions of the “Agent Agreement for Sale of Lottery Tickets.” An agent may not sell draw lottery game tickets unless the agent has signed the “Agent Agreement for Sale of Lottery Tickets.”

Responsibilities of a player. In order to be entitled to a prize for a draw lottery game, the claimant must be the holder of a valid winning ticket, that is recorded in the

computer log file of the State Lottery as a valid winning ticket. An exception to this rule may not be made. It is the player’s responsibility to determine, at the time of purchase, that the ticket received accurately reflects the wager the player wishes to make and the numbers the player wishes to play. The placing of bets is done at the player’s own risk. If the claimant possesses a misprinted ticket, incorrect ticket, void ticket or a ticket printed in error, that was not corrected at the time of purchase, the director may authorize the claimant to receive a refund of the purchase price of the ticket. This refund is the sole remedy for any person who does not possess a valid winning ticket.

Application. This section applies to draw games operated by the State Lottery under the authority of 8 M.R.S.A. chapter 14-A. It does not apply to games operated under the authority of the Tri-State Lotto Compact.

SECTION 14. SUBSCRIPTION LOTTERY TICKETS

Subscription program. The director, with the approval of the commission, may operate and supervise a subscription lottery program for sale to the public. Subscription tickets must be sold on a quarterly (weeks), semi-annual (26 weeks) and annual (52 weeks) basis. The director, with the approval of the commission, shall determine the price of subscription tickets and may, with the approval of the commission, discount the cost to the public of a subscription series. The duration of each subscription ticket must be provided to the subscriber.

Substitution or refund. If a lottery game for which subscription tickets have been sold is discontinued, the State Lottery shall issue, at the director’s discretion, to all subscription ticket holders’ tickets for an active lottery game at a comparable value or cash refunds for the period of subscription beyond the termination date of the game.

Out-of-state subscriptions; credit cards. Subscriptions may be sold to addresses outside the State of Maine if such out of state subscriptions are not prohibited by federal law. The State Lottery may accept orders with a valid debit or credit card.

SECTION 15. PRIZE STRUCTURE

Prize pool. The prize pool for lottery games must be not less than 45% of the gross receipts.

Use of prize pool. The prize pool must be used to :

1. Pay the holders of winning tickets; and
2. Pay special prizes or bonuses as specified by the director, with the approval of the commission.

Prize structure. The director, with the approval of the commission, shall determine the distribution of the prize pool and the number and size of prizes and shall announce the prize structure in appropriate directives.

Unclaimed prizes. Unclaimed prize money for a prize for which there was a drawing must be retained by the director for the person entitled to it for one year after the drawing in which the prize was won. If no claim is made for the money within that year, the prize money must be transferred to the General Fund as undedicated revenue.

Unclaimed prize money for a game for which there is no drawing must be retained by the director for a reasonable period of time and may be transferred to the General Fund if the director determines that adequate funds have been retained to pay anticipated delayed claims.

SECTION 16. DRAWINGS

Drawings. Drawings may be used to award prizes. The director, with the approval of the commission, shall determine the frequency of drawings and the procedures for each drawing and announce the procedures in appropriate directives prior to the drawing.

SECTION 17. PRIZE PAYMENT AND CLAIMING PRIZES

Direct payment of prizes. All prizes of $100 or less must be paid directly by agents. Licensed agents may pay prizes up to $599. The claimant shall present the winning ticket to an agent, fill out the claimant’s name and address on the back of the ticket and show a valid photo identification or other form of identification as approved by the director. The agent, after examining the ticket, confirming that it has not been altered and verifying that the ticket is a valid winning ticket, shall pay the claimant directly.

Payment of other prizes. All other prizes must be paid from State Lottery Headquarters, either in person to the claimant, or by means of a mailed-in claim form from a claimant. The claimant shall send the winning ticket, copy of a photo identification or other form of identification as approved by the director and a completed claim form according to procedures specified by the director to State Lottery Headquarters for verification. The claimant is responsible for retaining a copy of the claim for the claimant’s records. The State Lottery is not responsible for tickets lost or misdelivered during the course of mailing. Upon receipt of the winning ticket and its verification as a winning ticket, the State Lottery shall send the prize to the claimant by mail.

Multiple winners. More than one person may claim an interest in a winning ticket. Prize payment warrants may be made out to multiple payees if each payee signs an appropriate document acknowledging the right of all other payees to a share of the winning ticket and prize and agreeing to hold the State Lottery harmless from liability.

SECTION 18. ELIGIBILITY TO BUY

Sales to minors prohibited. A person may not sell a lottery ticket to a person under the age of 18 years. This subsection does not prohibit the purchase of a ticket by a person 18 years of age or older for the purpose by of making a gift to a person less than 18 years of age. An agent who knowingly sells or offers to sell a lottery ticket to a person under 18 years of age commits a civil violation in accordance under 8 M.R.S.A. § 380 and is subject to suspension and revocation of the agent’s license.

Officers and employees of the commission; relatives. The following persons may not purchase a ticket or be paid a prize:

1. An officer of the commission;
2. Senior supervisory employees of the commission, as determined by the commission officers; and
3. A spouse, child, sibling, parent or person residing in the same household in the principal place of abode of the persons listed in paragraphs A and B.

Agents. Agents may purchase tickets and be awarded prizes.

SECTION 19. COMMISSION POLICY

Meetings. The commission shall meet at least once each month to propose or adopt rules as necessary, to make recommendations and set policy for the operation of the State Lottery and to transact any other business that comes before the commission. To the maximum extent possible, the recommendations and policies of the commission must be written and maintained at State Lottery Headquarters in a manner readily available to the director, the State Lottery staff and members of the public.

SECTION 20. VOUCHERS

Voucher Expiration: “ Vouchers” expire one year from the date of issue.

SECTION 21. SEVERABILITY OF PROVISIONS

Severability. The provisions of these rules are severable. If any rule or provision of a rule is held invalid, or if any application thereof to any person or circumstance is held invalid, the invalidity does not affect other rules or provisions or applications which can be given affect without the invalid provision or application.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374.
• EFFECTIVE DATE: May 2, 1977
• RE-ADOPTED: July 3, 1979
• REPEALED AND REPLACED: June 27, 1990 (Chapters 1-21)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• REPEALED AND REPLACED BY NEW CHAPTER 1: May 23, 1998
• NON-SUBSTANTIVE CORRECTION: June 15, 1998 - minor spelling in Section 2(6).
• AMENDED: April 20, 2003 - Section 12(1-A)
• AMENDED: May 26, 2008 – Section 11, filing 2008-202
• AMENDED: MOVED TO 18-553, BUREAU OF ALCOHOL AND LOTTERY OPERATIONS, AS CHAPTER 10: June 29, 2010
• AMENDED: September 24, 2023 – filing 2023-173
• ACCESSIBILITY CHECK: July 9, 2025
• ACCESSIBILITY CHECK: July 10, 2025

Chapter 20 Powerball Rules

Code Me. R. 18-553 Ch. 20 Powerball Rules {#sec-18-553-ch.-20 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 20}

Part I – Administration

Section 1.0

These rules establish the procedures and requirements for operating and playing Powerball, a lotto game run by the Multi-State Lottery Association (hereinafter referred to as “MUSL”), of which the Bureau of Alcoholic Beverages and Lottery Operations (hereinafter referred to as “BABLO”) is a member. Generally, the Powerball game shall be operated in accordance with any agreement between the State of Maine and MUSL, the Constitution, the Bylaws of the MUSL, the Administrative Rules of MUSL and applicable Maine law.

Part II – Powerball Game Rules

Section 2.0 – Definitions

The following definitions apply to all Parts of these Rules unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group. Capitalized terms used but not defined in these rules shall have the meanings ascribed to them in the MUSL Agreement.

1. “Advertised Grand Prize” shall mean the estimated annuitized Powerball Grand Prize amount as determined by the MUSL Central Office by use of the MUSL Annuity Factor and communicated through the Selling Lotteries prior to the Powerball Grand Prize drawing. The “Advertised Grand Prize” is not a guaranteed prize amount, and the actual Powerball Grand Prize amount may vary from the advertised amount, except in circumstances where there is a guaranteed Powerball Grand Prize amount as described in Section 6.1 of these Rules.

2. “Agent”, “retailer” or “lottery retail agent” means a person or entity authorized by a Selling Lottery to sell and redeem lottery Plays.

3. “Computer Pick or “Easy Pick” means the random selection of game play indicia by the authorized retailer computer or other lottery approved device that appears on a ticket or ticketless transaction and are played by a Player in the game.

4. “Computer Gaming System” or “Gaming System” or “CGS” means the computer system used to issue and validate Game Tickets.

5. “Double Play Promotion” means an add-on game to the Powerball game as defined in these rules.

6. “Double Play Drawing” refers collectively to the formal draw event performed for the selection of the games results that determine the number of winners for each prize level of the Double Play Promotion.

7. “Double Play Plays” or “DP Plays” shall refer to a purchased wager, as defined in part of these Rules, that must be made at the same time a Powerball Play is purchased. Double Play Plays do not include Powerball Plays or Power Play Plays.

8. “Draw Game’, or “Lottery Game” means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

9. “Drawing” refers collectively to the formal draw event for randomly selecting the winning indicia that determine the number of winners for each prize level of the Powerball game or Powerball Promotion as described in these Rules. A Powerball drawing shall determine the winning indicia for the Powerball game and the Power Play multiplier.

10. “Executive Director” means the Director of BABLO appointed by the Commissioner of the Department of Administrative and Financial Services.

11. “Game ticket” or “Ticket” means the physical evidence of a play, printed on paper that meets the play and security data required by the Selling Lottery, these game Rules, and the MUSL Rules that allow redemption of a prize. Tickets may be printed by terminals or Retail Controlled Selling Devices as permitted by these Rules and the Selling Lottery.

12. “Grand Prize” shall refer to the top prize in the Powerball game.

13. “Licensee Lottery” shall mean a state lottery or lottery of a governmental unit, political subdivision or entity thereof that is not a Party Lottery but has agreed to comply with all applicable MUSL and Product Group requirements and has been authorized by the MUSL and by the Powerball Product Group to sell the Powerball game.

14. “Maine Lottery” or “the Lottery” means the Bureau of Alcoholic Beverages and Lottery Operations.

15. “MUSL” means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

16. “MUSL Annuity Factor” shall mean the annuity factor as determined by the MUSL central office through a method approved by the MUSL Finance and Audit Committee and which is used as described in these rules.

17. “MUSL Board” means the governing body of the MUSL, which is comprised of the chief executive officer of each Party Lottery.

18. “MUSL Finance and Audit Committee” shall mean the committee of that name established by the MUSL Board.

19. “Pari-Mutuel” or “pari-mutuel” shall mean wagered funds that are pooled and then paid in equal shares to the winners of a prize as described in these Rules.

20. “Party Lottery” or “Member Lottery” means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of these Product Group Rules that is authorized to sell the Powerball game. Unless otherwise indicated, “Party Lottery” or “Member Lottery” does not include “Licensee Lotteries”.

21. “Play” or “Bet” means the six (6) numbers, the first five (5) from a field of sixty-nine (69) numbers and the last one (1) from a field of twenty-six (26) numbers, that appear on a ticket or communicated in a ticketless transaction as a single lettered selection, either manually or by a Computer Pick, and are to be played by a player in the Powerball game.

22. “Play Slip” or “Bet Slip” means a physical or electronic means by which a player communicates their intended Play selection to the retailer as defined and approved by the Selling Lottery. A Play or Bet Slip is not a ticket or ticketless transaction.

23. “Power Play” shall refer to Power Play promotion as described in Part III of these Rules.

24. “Power Play Plays” shall refer to Plays purchased as part of the Power Play Promotion described in Part III of these Rules.

25. “Powerball Plays” or “Plays” (aka PB Plays) shall refer to Plays purchased as a wager as part of the Powerball game, as defined in Part III of these rules, but shall not include Power Play plays.

26. “Product Group” or “the Group” means a group of lotteries that has joined together to offer a product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group’s own rules.

27. “Registered Plays” means a wager where the play is owned by a specifically identified player through a means acceptable to the Selling Lottery, and which is recorded on the Selling Lottery’s Computer Gaming System and internal control system.

28. “Retail Controlled Selling Device” means a device which is not a Terminal, and which is controlled by a retailer for the purpose of issuing lottery tickets and entering, receiving and processing lottery transactions, including making purchases, validating tickets and transmitting reports. Examples of Retailer Controlled Selling Devices include cash registers. Retailer Controlled Selling Devices must meet all security requirements of the Selling Lottery, these Rules and the MUSL Rules. Retailer Controlled Selling Devices do not include player-provided point of sale devices such as smart phones.

29. “Selling Lottery” or “Participating Lottery” means a lottery authorized by the Product Group to sell Powerball Plays, including Party Lotteries and Licensee Lotteries.

30. “Set Prize”, also referred to as “low-tier prize”, means all other prizes, except the Powerball Grand Prize and the Double Play First Prize, and, except in instances outlined in these rules, will be equal to the prize amount established by the Product Group for the prize level.

31. “Terminal” means a device that meets all security and definitional requirements of these Rules, MUSL Rules, and the Selling Lottery, and is authorized by a Selling Lottery to function in an interactive mode with the lottery’s computer gaming system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports. The Terminal does not include a Retailer Controlled Selling Device such as a cash register or player provided point of sale device such as a smart phone.

32. “Ticketless Transaction” means any Play that is not printed on paper that meets the anti-counterfeiting requirements described in the MUSL Rules. Examples of Ticketless Transactions include internet, subscription, and other types of Registered Plays. All Ticketless Transactions must be Registered Plays. Any Play sold through a Terminal, but which is a Registered Play requiring confirmation of the player’s identity upon prize redemption shall be considered a Ticketless Transaction even when a receipt, summation, summation, or recognition of purchase is printed by or through the device.

2.33 “Winning Numbers” means the game results selected during a Drawing which shall be used to determine winning Plays contained on a Game Ticket or Ticketless Transaction.

Section 3.0 – Powerball Game Description

Powerball Game

1. Powerball is a five (5) out of sixty-nine (69) plus one (1) out of twenty-six (26) numbers lottery game drawn every Monday, Wednesday and Saturday as part of the Powerball Drawing, which pays the Grand Prize, at the election of the player made in accordance with these rules or by a default election made in accordance with these rules, either on an annuitized pari-mutuel basis or as a single cash lump sum payment of the total funding held in the Grand Prize Pool (GPP) for the winning Drawing on a pari-mutuel basis. Except as provided in these rules, all other prizes are paid on a single payment basis.

Powerball Winning Numbers applicable to determine Powerball prizes will be determined in the Powerball Drawing. During the Drawing, five (5) numbers shall be drawn from the first set of sixty-nine (69) numbers, and one (1) number shall be drawn for the second set of twenty-six (26) numbers, which shall constitute the Winning Numbers. Double Play winning numbers shall not be used to determine Powerball prizes. Powerball winning numbers shall not be used to determine Double Play prizes.

To play Powerball, a player shall select (or computer pick) five (5) different numbers, from one (1) through sixty‑nine (69) and one (1) additional number from one (1) through twenty-six (26). The additional number may be the same as one of the first five numbers selected by the player. Powerball Plays can be purchased for two dollars (U.S. $2.00), including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a Powerball Play.

Powerball Plays may be purchased from a Selling Lottery approved sales outlet in a manner approved by the Selling Lottery and in accordance with MUSL Rules.

1. Claims. Unless otherwise permitted by a selling lottery, a ticket (subject to the validation requirements set forth in Section 7.0 of these Rules (Ticket Validation)) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Selling Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A play slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal generated paper receipt has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected.
2. Cancellations Prohibited; Request for Plays, Returned Plays, Incomplete Transaction Plays, Stolen Plays and Refunds for Game Cancellations.

3.3.1 Plays Non-Cancellable. In all instances, a Play recorded on the Computer Gaming System (CGS) may not be voided or cancelled by returning the ticket or ticketless transaction to the Retailer or to the Selling Lottery, including tickets that are misprinted, illegible, print in error, or for any reason not successfully transferred to an authorized selling entity or Player.

3.3.2 Request for Plays. A lottery may conduct future sales through a subscription or other system that does not immediately record such sales on the CGS. A “Request for Play” is a sale that is not immediately recorded on the CGS but is instead recorded onto the CGS at some future time prior to a draw event. At the sole discretion of the lottery, authorized sales through a subscription or other system which have not been recorded on the CGS (instead recorded as “Request for Plays”), may be cancelled at any time prior to the time the Request for Play is recorded as a Play on the CGS. If a Request for Play is cancelled, it shall not be recorded on the CGS.

Per 3.3, once a Play is recorded on the CGS, it may not be cancelled at any time. Any cancelled “Request for Play” shall not be included in sales data reports to MUSL.

3.3.3 Returned Plays. To promote good Player or Retailer relations, a Selling Lottery, at its sole discretion, may develop a method of compensating Players or Retailers for Plays accepted by the Selling Lottery as returned to the Selling Lottery (“Returned Plays”) that are misprinted, illegible, printed in error, future Plays affected by changes in game features by the Selling Lottery or due to game cancellations.

3.3.3.1 Returned Plays may not be cancelled or voided. Returned Plays are

not reported to MUSL.

3.3.3.2 The Selling Lottery must remit its required prize pool contributions on all Plays accepted as returned Plays by the Selling Lottery.

3.3.3.3 Returned Plays may not be claimed for a prize by any person

or entity, including the Selling Lottery. Any prizes which would have been won on a Returned Play shall become an unclaimed prize at the end of the prize claim period.

3.3.4 Incomplete Transaction Plays. Incomplete Transaction plays occur when a Retailer begins a Play transaction as requested by a Player, and the Play is registered on the CGS, but the transaction is terminated prior to transferring Play confirmation to the Player, there is no attempt to print the Play on a ticket, and the Player has not paid for the Play. Transaction terminations may be due to time sensitivities, communications loss or other issues as accepted by the Selling Lottery.

3.3.4.1 A Selling Lottery, at its sole discretion, may develop an approved

method of managing Incomplete Transaction Plays, subject to these provisions.

3.3.4.2 Incomplete Transaction plays may not be cancelled or

voided.

3.3.4.3 The Selling Lottery must remit its required prize pool contributions

on any Incomplete Transaction Plays. At its sole discretion, the Selling Lottery may develop a method of compensation to Retailers for Incomplete Transaction Plays if Retailers are required to reimburse Selling Lotteries for prize pool contributions.

3.3.4.4 Incomplete Transaction Plays may not be claimed for a prize

by any person or entity including the Retailer. Any prize which cannot be claimed as a prize under this Rule but would otherwise have been won on an Incomplete Transaction play shall become an unclaimed prize at the end of the prize claim period of the drawing for which the Incomplete Transaction Play was recorded. Incomplete Transaction Plays are not reported to MUSL.

3.3.5 Stolen Plays. Plays reported as stolen from a Retailer that have been

recovered cannot be accepted by the Selling Lottery as Returned Plays.

3.3.5.1 Selling lotteries may compensate a Retailer for the loss from

theft if a Selling Lottery, solely at its discretion, determines to assume such a loss, but Stolen Plays cannot be cancelled or voided.

3.3.5.2 Ownership of Stolen Plays, and whether any party has a right

to claim prizes on Stolen Plays, shall be determined by the rules of the Selling Lottery.

3.3.6 Game Cancellation. In the event of cancellation of the Game by the

Product Group prior to the occurrence of all drawings for which Plays have been sold and recorded on the CGS, the Selling Lottery may provide a refund mechanism for such Plays to the Players, and the Selling Lottery shall not be required to remit its prize pool contributions for any such refunded Plays.

3.3.7 Selling Lotteries Prohibited from Claiming Prizes. Selling Lotteries

and lottery officials are prohibited from claiming any prizes on Plays that are owned by the Selling Lottery through “Returned Plays” or otherwise acquired and held by the Selling Lottery. Any prizes that would otherwise be won on Plays owned or acquired by Selling Lotteries shall become unclaimed prizes at the end of the prize claim period.

1. Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player's own risk through the agent that is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.
2. Entry of Plays. as approved by the Selling Lottery or by such means as approved by the Selling Lottery. Retailers shall not permit the use of Play Slips that are not by the Selling Lottery. Retailers shall not permit any device to enter Plays, except as allowed.
3. Registration of Plays. Ticketless transaction Plays may be registered with by the Selling Lottery in a manner that meets the requirements established by the Product Group, the Selling Lottery and the MUSL Rules.
4. Maximum Purchase. Except for a ticketless transaction Play purchase, when the lottery has a process to allow Players to make changes to their Play purchases in the event of a game change, the maximum number of consecutive Drawings on a single Play purchase is thirty (30). The maximum number of consecutive Drawings encompassed by a ticketless Play purchase when the lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change is one hundred fifty-six (156). The maximum number of Drawing purchases may be further limited by the Selling Lottery Director.
5. Matrix Changes. In the event of a matrix change, the Selling Lottery that issued the ticketless transaction will determine the option(s) available to ticketless transaction purchasers for that Selling Lottery for the balance of Plays remaining on their ticketless transactions effective as of the date of the matrix change.
6. Emergency Rule-making Authority. Pursuant to the Product Group’s fiduciary duties, it may become necessary for the Product Group to adopt rule changes or modifications to protect the integrity of the game in response to an imminent crisis or emergency. Such rule changes or modifications shall take into effect immediately, or otherwise as indicated by the Product Group, without prior notification to Players or the public.

A rule change or modification adopted pursuant to the Section is effective upon the affirmative vote of three-fourths (3/4) or more of the Members casting votes and shall continue in effect until otherwise determined by the Product Group.

Section 4.0 – Powerball Prize Pool

4.1 Powerball Prize Pool. The prize pool for all prize categories shall consist of fifty percent (50%) of each Drawing period's Powerball sales, inclusive of any specific statutorily mandated tax of a Selling Lottery to be included in the price of a Powerball Play, and including contributions to the prize pool accounts and prize reserve accounts; prize pool contribution requirements shall be based on the sales price for Plays as established by the Group, not on the amount collected by the Selling Lottery after deducting for statutorily mandated taxes.

4.2 Powerball Prize Pool Accounts and Prize Reserve Accounts. The Product Group shall set the contribution rates to the prize pool and to one or more prize reserve or pool accounts established by this rule.

4.2.1 The following prize reserve accounts for the Powerball game are hereby established:

4.2.1.1 the Prize Reserve Account (PRA), which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason; and

4.2.1.2 the Set Prize Reserve Account (SPRA), which is used to fund deficiencies in low-tier Powerball prize payments (subject to the limitations of these rules).

4.2.2 The following prize pool accounts for the Powerball game are hereby established:

4.2.2.1 the Grand Prize Pool (GPP), which is used to fund the current Grand Prize;

4.2.2.2 the Set Prize Pool (SPP), which is used to fund the Set Prizes. The SPP shall hold temporary balances that may result from having fewer than expected winners in the Set Prize (aka low-tier prize) categories. The source of the SPP is the Party Lottery’s weekly prize contribution less actual Set Prize liability;

4.2.2.3 the Set-Aside Pool (SAP), which is used to fund the payment of the awarded minimum starting annuity Grand Prizes and minimum annuity Grand Prize increase, if necessary (subject to the limitations in these rules), as may be set by the Product Group; and

4.2.2.4 the Grand Prize Carry Forward Pool (GPCFP), which is used to fund the starting minimum annuity Grand Prize, as may be set by the Product Group, if such funds are available, and if sales do not fund the Grand Prize.

4.2.3 The above prize reserve accounts, the GPCFP and the SAP shall have maximum balance amounts or balance limiter triggers that are set by the Product Group. The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance and Audit Committee. The Finance and Audit Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance and Audit Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Group may appeal the Committee’s objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Grand Prize win.

4.2.4 The maximum contribution rate to the Grand Prize Pool shall be 68.0131% of the prize pool (34.0066% of sales). An amount up to five percent (5%) of a Party Lottery’s sales shall be deducted from a Party Lottery’s GPP contribution and placed in trust in one or more prize pool accounts and prize reserve accounts held by the Product Group (hereinafter the “prize pool and reserve deduction”) at any time that the prize pool accounts, and Party Lottery’s share of the prize reserve accounts(s) is below the amounts designated by the Product Group.

An additional amount up to twenty percent (20%) of a Party Lottery’s sales shall be deducted from a Party Lottery’s GPP contribution and placed in trust in the GPCFP to be held by the Product Group at a time as determined by the Product Group.

4.2.5 The Product Group may determine to expend all or a portion of the funds in the Powerball prize pool accounts (except the GPP account and the GPCFP) and the prize reserve accounts: (1) for the purpose of indemnifying the Party Lotteries and Licensee Lotteries in the payment of prizes to be made by the Selling Lotteries; and (2) for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board’s Finance & Audit Committee or that Committee’s failure to object after given two weeks’ notice of the planned action, which actions may be appealed to the full Board by the Product Group.

The GPCFP may only be expended to fund the starting minimum annuity Grand Prize.

4.2.6 The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries.

4.2.7 A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from the reserve account, a Party Lottery is responsible for its full sales percentage share of the prize reserves account, whether or not it has been paid in full.

4.2.8 Any amount remaining in the Powerball prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.

4.3 Licensee Lotteries. Licensee Lotteries shall adhere to Section 4.2 of these rules unless a different process is approved by the Product Group.

4.4 Expected Prize Payout Percentages. The Grand Prize payout shall be determined on a pari-mutuel basis. Except as otherwise mandated by jurisdiction statute or judicial requirements, or provided for in these rules, all other prizes awarded shall be paid as set single payment prizes. All prize payouts are made with the following expected prize payout percentages, although the prize payout percentages per draw may vary:

Prize Pool Percentage

Number of Matches Per Play Prize Payment Allocated to Prize

All five (5) of first set plus one (1) of second set Grand Prize 68.0131%*

All five (5) of first set and none of second set $1,000,000 8.5558%

Any four (4) of first set plus one (1) of second set $50,000 5.4757%

Any four (4) of first set and none of second set $100 0.2738%

Any three (3) of first set plus one (1) of second set $100 0.6899%

Any three (3) of first set and none of second set $7 1.2074%

Any two (2) of first set plus one (1) of second set $7 0.9981%

Any one (1) of first set plus one (1) of second set $4 4.3489%

None of first set plus one (1) of second set $4 10.4373%

• The maximum contribution rate may include contributions to reserves and pools as described in these rules.

4.4.1 The prize money allocated to the Grand Prize category shall be divided on a pari-mutuel basis by the number of Powerball Plays winning the Grand Prize.

4.4.2 Set Prize Pool Carried Forward. For Party Lotteries, the Powerball SPP (for single payment prizes of one million dollars ($1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Powerball Set Prizes awarded in the current draw.

4.4.3 Pari-Mutuel Prize Determinations. Except as provided for in this section, for Party Lotteries:

4.4.3.1 If the total of the Powerball Set Prizes (as multiplied by the respective Power Play multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Set Prizes, then the amount needed to fund the Set Prizes, including Power Play prizes, awarded shall be drawn from the following sources, in the following order:

4.4.3.1.1 the amount available in the SPP and the Power Play Prize

Pool, if any;

4.4.3.1.2 an amount from the SPRA, if available, not to exceed forty

million dollars ($40,000,000.00) per Drawing; and

4.4.3.1.3 other amounts as agreed to by the Product Group in their

sole discretion.

4.4.3.2 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes awarded, including Power Play prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize, including Power Play prizes, shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that circumstance, the money available from the funding sources listed in this rule shall be divided among the winning Powerball Plays in proportion to their respective prize percentages. Powerball Set Prizes and Power Play prizes will be reduced by the same percentage.

4.4.3.3 By agreement with the Licensee Lotteries, the Licensee Lotteries shall independently calculate their Set Prize pari-mutuel prize amounts. The Party Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the game at the lesser of the independently calculated prize amounts.

4.4.4 Licensee Lotteries. Licensee Lotteries shall adhere to Section 4.4.3 of these rules unless a different process is approved by the Product Group.

Section 5.0 – Probability of Winning Powerball Prizes

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Powerball. The Set Prize Amount shall be the prizes set for all Selling Lotteries unless prohibited or limited by a jurisdiction’s statute or judicial requirements.

Probability Distribution

Probable/Set

Number of Matches Per Ticket Winners Probability Prize Amount

All five (5) of first set plus

one (1) of second set 1 1:292,201,338.0000 Grand Prize

All five (5) of first set

and none of second set 25 1:11,688,053.5200 $1,000,000

Any four (4) of first set plus

one (1) of second set 320 1:913,129.1813 $50,000

Any four (4) of first set

and none of second set 8,000 1: 36,525.1673 $100

Any three (3) of first set plus

one (1) of second set 20,160 1: 14,494.1140 $100

Any three (3) of first set

and none of second set 504,000 1: 579.7646 $7

Any two (2) of first set plus

one (1) of second set 416,640 1: 701.3281 $7

Any one (1) of the first set plus

one (1) of the second set 3,176,880 1: 91.9775 $4

None of the first set plus

one (1) of the second set 7,624,512 1: 38.3239 $4

Overall 11,750,538 1:24.8671

Section 6.0 – Powerball Prize Payment

1. Powerball Grand Prizes. Powerbal l Grand prizes shall be paid, at the election of the player made no later than sixty (60) days after the player becomes entitled to the prize, with either a per-winner annuity or single lump sum payment (which may be referred to as the “cash option”). If the payment election is not made at the time of purchase and is not made by the player within sixty (60) days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. An election for an annuity payment made by a player before ticket purchase or by system default or design may be changed to a cash option payment at the election of the player until the expiration of sixty (60) days after the player becomes entitled to the prize. The election to take the cash option payment may be made at the time of the prize claim or within sixty (60) days after the player becomes entitled to the prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn or otherwise changed.

The Powerball Grand Prize available in the GPP shall be determined by dividing the funds available in the GPP on a pari-mutuel basis among all winning Plays of the Grand Prize as described in these rules. Winner(s) who elect a cash option payment shall be paid their share(s) in a single lump sum payment. The annuitized option prize shall be determined by multiplying a winner’s share of the Powerball Grand Prize pool by a process as approved by the MUSL Board. Neither MUSL nor the Selling Lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL.

In certain instances, announced by the Product Group, the Powerball Grand Prize shall be a guaranteed amount and shall be determined pursuant to Section 6.5 of these rules.

If individual shares of the GPP funds held to fund an annuity is less than $250,000.00, the Product Group, in its sole discretion, may elect to pay the winners their share of the funds held in the GPP.

All annuitized prizes shall be paid annually in thirty (30) payments with the initial payment being made in a single payment, to be followed by twenty-nine (29) payments funded by the annuity. Except as may be controlled by a Selling Lottery’s governing statute, all annuitized prizes shall be paid annually in thirty (30) graduated payments (increasing each year) by a rate as determined by the Product Group. Prize payments may be rounded down to the nearest one thousand dollars ($1,000.00). Annual payments after the initial payment shall be made by the lottery on the anniversary date or if such date falls on a non-business day, then the first business day following the anniversary date of the selection of the Grand Prize-Winning Numbers.

Funds for the initial payment of an annuitized prize or the lump sum cash option prize payment shall be made available by MUSL for payment by the Selling Lottery no earlier than the fifteenth calendar day (or the next banking day if the fifteenth day is a holiday) following the Drawing. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash option amount may be delayed pending receipt of funds from the Selling Lotteries. A paying lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery’s game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on the MUSL or any other Party Lottery for payment of that prize.

In the event of the death of a lottery winner during the annuity payment period, unless prohibited by jurisdictional law, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the “Estate”) to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning Powerball Play, and subject to federal, state, district or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance & Audit Committee or the Product Group.

First Prize for Double Play. The Double Play First Prize is a fixed, non-annuitized value of $10,000,000 (ten million dollars) for each Double Play Drawing.

If there are no Double Play Plays that qualify for the first Prize category in any Double Play Drawing, the portion of the prize fund allocated to such First Prize category shall remain in the First Prize pool for the next Double Play drawing.

Funds for the payment of a First Prize shall be made available by MUSL for payment by the Selling Lottery on a schedule approved by the Product Group. If necessary, when the due date for the payment of a First Prize occurs before the receipt of funds in the FPP trust sufficient to pay the prize, the transfer of funds for payment of the First Prize may be delayed pending receipt of funds from the Selling Lotteries participating in the Double Play Promotion. A Selling Lottery may elect to make the First Prize payment from its own funds after validation, with notice to MUSL.

Set Prize. A Selling Lottery may begin paying low-tier prizes after receiving authorization to pay from the MUSL central office. If a Selling Lottery, due to jurisdiction low-tier requirements, separately determines its low-tier prize amounts, it shall be sole responsible for its low-tier prize liability and may begin paying low-tier prizes after a Drawing when it determines appropriate to do so.

1. Process for Prize Payments. All prizes (whether described as “cash” payment prizes or otherwise) shall be paid through the Selling Lottery that sold the winning Play(s) and at the discretion of the Selling Lottery that sold the winning Play(s) may be paid by cash, check or warrant or electronic transfer.

A Selling Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the MUSL central office. If a Selling Lottery, due to jurisdictional law requirements, separately determines its low-tier prize amounts, it shall be solely responsible for its low-tier prize liability and may begin paying low-tier cash prizes after a Drawing when it determines appropriate to do so.

1. Powerball Grand Prizes Rounded. Annuitized payments of the Powerball Grand Prize or a share of the Powerball Grand Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Powerball Grand Prize win shall be added to the first payment to the winner or winners. Prizes other than the Powerball Grand Prize, which, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Except with regards to low-tier prizes paid by a Selling Lottery which separately determines its low-tier prize amounts pursuant to Section 6.2, breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next Drawing.
2. Powerball Prize Rollover. If the Powerball Grand Prize is not won in a Drawing, the prize money allocated for the Powerball Grand Prize shall roll over and be added to the GPP for the following Drawing.
3. Guaranteed Powerball Prizes. The Product Group may offer guaranteed minimum Powerball Grand Prize amounts or minimum increases in the Grand Prize amount between Drawings or make other changes in the allocation of prize money where the Product Group finds that it would be in the best interest of the game.

6.5.1 If a minimum Grand Prize amount or a minimum increase in the Grand Prize amount between Drawings is offered by the Product Group, then the Grand Prize shares shall be determined as follows:

6.5.1.1 If there are multiple Grand Prize winners during a single Drawing, each selecting the annuitized option prize, then a winner's share of the guaranteed annuitized Grand Prize shall be determined by dividing the guaranteed annuitized Grand Prize by the number of Grand Prize-winning Powerball Plays;

6.5.1.2 If there are multiple Grand Prize winners during a single Drawing and at least one (1) of the Grand Prize winners has elected the annuitized option prize, then the MUSL Annuity Factor shall be utilized to determine the cash pool. The cost of the annuitized prize(s) will be determined at the time the annuity is purchased through a process approved by the MUSL Board;

6.5.1.3 If no winner of the Grand Prize during a single Drawing has elected the annuitized option prize, then the amount of cash in the GPP shall be an amount equal to the guaranteed annuitized amount divided by the MUSL Annuity Factor.

6.5.2 Minimum guaranteed prizes or increases may be waived if the alternate funding mechanism set out in Sections 4.4.1 and 4.4.2 of these rules becomes necessary. Approval of the Group is required to change the guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount. The Group may increase, decrease or eliminate the guaranteed minimum Grand Prize amount of any announced minimum Grand Prize increases, effective at any time following the next Drawing following the action taken by the Group.

1. Limited to Highest Powerball Prize Won. The holder of a winning Powerball Play may win only one (1) prize per Powerball Play in connection with the Winning Numbers drawn for the Powerball Game and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liabilities for a Powerball prize, a Power Play prize and a Double Play prize are discharged upon payment of a prize claim.

The holder of a winning Double Play Play may win only one (1) prize per Play in connection with the winning numbers drawn for the Double Play game and shall be entitled to the prize won by those numbers in the highest matching prize category.

A player may win both a Powerball and also a Double Play prize if the player purchased the Double Play add-on option to the Powerball Play, and if the Powerball Play and the Double Play Play match the winning numbers drawn for both the Powerball game and the Double Play game.

1. Powerball Prize Claim Period. Prize claims shall be submitted within the period set by the Selling Lottery selling the Powerball Play or Double Play Play. For Maine, all Prize claims shall be made within one (1) year after the Drawing date.
2. Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the Drawing date on the ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or drawings.
3. Winner Disclosure. Subject to the laws and regulations of each Participating Lottery jurisdiction, and at the discretion of the Director of each Participating Lottery where disclosure is permitted, the name and community of the winner of a Powerball Grand Prize or Match 5+0 prize will be disclosed in a press conference or a press release of the Participating Lottery.

Section 7.0 – Ticket Validation

1. Play Validation for Powerball and Double Play. To be a valid Play and eligible to receive a prize, a Play’s ticket or ticketless transaction shall satisfy all the requirements established by a Selling Lottery for validation of winning Plays sold through its computer gaming system as set forth in Section 7.2 of these rules and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Selling Lotteries shall not be responsible for tickets or ticketless transactions that are altered in any manner.

Under no circumstances will a claim be paid for any prize without an official ticket (or a registered Ticketless Transaction) matching all game Play, serial number and other validation data residing in the Selling Lottery’s Computer Gaming Systems and such ticket (or validly registered Ticketless Transactions) shall be the only valid proof of the wager placed and the only valid receipt for claiming a ticket.

1. Specific Requirements for Validation of Tickets Sold in Maine 1. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied: 1. The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner. 2. The ticket date must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void. 3. The information appearing on the ticket must correspond precisely with the party Lottery's computer record. 4. The ticket validation number must appear in its entirety, and correspond, using a computer validation file, to the winning Game Play or Plays printed on the ticket. 5. The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective. 6. All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid. 7. The ticket must be intact, fully legible, complete and not miscut, corresponding to the data on file at the Lottery in every respect. 8. The ticket must pass all other security criteria determined by the Maine Lottery and MUSL. 9. The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof. 10. A winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased. 2. In the event that a ticket fails to pass all the criteria set forth in Section 7.2.1 of these rules, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the executive director shall be final and binding. If the executive director determines that the ticket is not eligible to receive a prize, then the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 – Ticket Responsibility

8.1 Prize Claims. Prize claim procedures shall be governed by the rules of the Selling lottery. The MUSL and the Selling Lotteries shall not be responsible for prizes that are not claimed following the proper procedures as determined by the selling lottery.

8.2 Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen tickets.

1. Ticketless Transactions. A Ticketless Transaction Play is only valid when registered with the lottery in accordance with lottery rules, these Rules and the MUSL Rules. The person or, if permitted by the lottery rules, the persons registering the Play shall be the owner of the Ticketless Transaction Play. A receipt for a Ticketless Transaction has no value and is not evidence of a Play.
2. The MUSL and Participating Lotteries shall not be responsible to a prize claimant for Plays redeemed in error by a selling agent, sales agent or retailer.
3. Winners are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Powerball and Double Play Drawings. MUSL and the Participating Lotteries are not responsible for winning numbers reported in error.

Section 9.0 – Ineligible Players

9.1 A Play or share for the Powerball game issued by the or any of its Selling Party Lotteries shall not be purchased by, and a prize won by any such Play or share shall not be paid to:

• 1. A MUSL employee, officer, or director; 2. A contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures; 3. An employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or 4. An immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in this section and residing in the same household.

1. A ticket may not be sold to, or purchased by, individuals who have not attained 18 years of age. However, tickets may be given as gifts to minors or any other individuals except as prohibited by Maine law.
2. A ticket or share may not be purchased by, and a prize may not be paid to any of the persons set forth in 8 M.R.S.A. Section 381.
3. Those persons designated by a Selling Lottery's law as ineligible to play its games shall also be ineligible to play the Powerball game in that Selling Lottery's jurisdiction.

Section 10.0 - APPLICABLE LAW

In purchasing a Play, or attempting to claim a prize, purchasers and prize claimants agree to comply with and abide by all applicable Maine laws, rules promulgated, procedures, and decisions of the Selling Lottery where the Play was purchased, and by directives and determinations of the director of that Selling Lottery.

A prize claimant agrees, as its sole and exclusive remedy that claims arising out of a Play can only be pursued against the Selling Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Play was purchased and only against the Selling Lottery that issued the Play. No claim shall be made against any other Participating Lottery or against the MUSL

Nothing in these Rules shall be construed as a waiver of any defense or claim the Selling Lottery which issued the Play, any other Participating Lottery or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against the Selling Lottery, any other Participating Lottery or MUSL, or their respective officers, directors or employees.

All decisions made by a Selling Lottery, including the declaration of prizes and the payment thereof and the interpretation of Powerball Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Powerball Play was issued.

Unless the laws, rules, regulations, procedures, and decisions of the Lottery which issued the Play provide otherwise, no prize shall be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Selling Lottery; any such prize claimed but unpaid shall constitute an unclaimed prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Selling Lottery.

Part III – Special Game Rules: Powerball Power Play

Section 11.0 – Applicability of these Rules

The Part III Power Play Promotion Rules are applicable to all Selling Lotteries, except as may be controlled by a Selling Lottery’s governing jurisdiction statute. The Product Group shall reach an agreement with such lotteries that will permit the operation of the promotion in a manner consistent with statute.

Section 12.0 – Power Play Description

The Powerball Power Play promotion is a limited extension of the Powerball game and is conducted in accordance with the Powerball game rules and other lottery rules applicable to the Powerball game, except as may be amended herein. The promotion will begin at a time announced by the Selling Lottery and will continue until discontinued by the lottery. The promotion will offer to the owners of a qualifying Play a chance to increase the amount of any of the eight (8) lowest Set Prizes (the prizes normally paying four dollars ($4.00) to one million dollars ($1,000,000.00)) won in a Drawing held during the promotion. The Grand Prize is not a Set Prize and will not be increased.

Participating Lotteries may require purchase of the Power Play promotion when a player purchases a Powerball Play. Power Play is not applicable to the Double Play Promotion described in Part IV of these Rules.

Section 13.0 - Qualifying Play

A qualifying Play is any single Powerball Play for which the player pays an extra dollar for the Power Play option and that is recorded at the Selling Lottery’s central computer gaming system as a qualifying Power Play Play.

Section 14.0 – Power Play Prizes and Draws

14.1 Prizes to Be Increased. Except as provided in these rules, a qualifying Play which wins one of seven (7) lowest Set Prizes (excluding the Match 5+0 prize) will be multiplied by the number selected, either two, three, four, five or sometimes ten (2, 3, 4, 5 or sometimes 10), in a separate random Power Play Drawing announced during the official Powerball Drawing show. The ten (10X) multiplier will be available for drawings in which the initially advertised annuitized Grand Prize amount is one hundred fifty million dollars ($150,000,000.00) or less. The announced Match 5+0 prize, for players selecting the Power Play option, shall be two million dollars ($2,000,000.00) unless a higher limited promotional dollar amount is announced by the Group.

14.2 Power Play Draws. MUSL will conduct a separate random Power Play Drawing and announce results during each of the regular Powerball Drawings held during the promotion. During each Power Play Drawing a single number (2, 3, 4, 5 and sometimes 10) shall be drawn. The ten (10X) multiplier shall be available for all Drawings in which the initially Advertised Grand Prize amount is one hundred fifty million dollars ($150,000,000.00) or less. The probability of the possible Power Play number being drawn is indicated in Rule 15.5. The Powerball Group may modify the multiplier features for special promotions from time to time.

Section 15.0 – Prize Pool

15.1 Power Play Prize Pool. The Power Play Prize Pool (PPP) is hereby created, which is used to fund Power Play prizes. The PPP shall hold the temporary balances that may result from having fewer than expected winners in the Power Play. The source of the PPP is the Party Lottery’s weekly prize contributions less actual Power Play Prize liability.

15.1.1 In total, fifty percent (50%) of each draw’s sales shall be collected for the payment of prizes; prize pool contribution requirements shall be based on the sales price for Plays as established by the Group, not the amount collected by the Selling Lottery after deducting for statutorily mandated taxes.

15.1.1.1 In Drawings where the ten (10X) multiplier is available, the expected payout for all prize categories shall consist of up to forty-nine and nine hundred sixty-nine thousandths’ percent (49.969%) of each Drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket. In Drawings where the ten (10X) multiplier is not available, the expected payout for all prize categories shall consist of up to forty-five and nine hundred thirty-four thousandths’ percent (45.934%) of each Drawing period’s sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket.

15.1.1.2 In drawings where the ten (10X) multiplier is available, an additional thirty-one thousandths’ percent (0.031%) of each Drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the PPP, for the purpose of paying Power Play prizes. In Drawings where the ten (10X) multiplier is not available, an additional four and sixty-six thousandths’ percent (4.066%) of each Drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the PPP, for the purpose of paying Power Play prizes.

15.1.1.3 The prize payout percentage per draw may vary. The Power Play Prize Pool shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Power Play prizes awarded in the current draw and held in the PPP Account.

15.2 Licensee Lotteries. Licensee Lotteries shall adhere to Section 15.1 of these rules unless a different process is approved by the Product Group.

15.3 End of Game Promotion. Any amount remaining in the PPP when the Product Group declares the end of this promotion shall be returned to the lotteries participating in the account after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game or promotion, or otherwise expended in a manner at the election of the individual Participating Lotteries of the Product Group in accordance with jurisdiction statute.

15.4 Expected Prize Payout.

Prize Amount Regardless of Power Play number selected:

Match 5+0 $1,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00

Set Prize Amount 10X 5X 4X 3X 2X

Match 4+1 $50,000.00 $500,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00

Match 4+0 $100.00 $1,000.00 $500.00 $400.00 $300.00 $200.00

Match 3+1 $100.00 $1,000.00 $500.00 $400.00 $300.00 $200.00

Match 3+0 $7.00 $70.00 $35.00 $28.00 $21.00 $14.00

Match 2+1 $7.00 $70.00 $35.00 $28.00 $21 00 $14.00

Match 1+1 $4.00 $40.00 $20.00 $16.00 $12.00 $8.00

Match 0+1 $4.00 $40.00 $20.00 $16.00 $12.00 $8.00

In certain rare instances, the Powerball set prize amount may be less than the amount shown. In such case, the eight (8) lowest Power Play prizes will be changed to an amount announced after the draw. For example, if the Match 4+1 Powerball set prize amount of $50,000.00 becomes $25,000.00 under the rules of the Powerball game and a 5X Power Play multiplier is selected, then a Power Play player winning that prize amount would win $125,000.00.

15.5 Probability of Winning. The following table sets forth the probability of the various Power Play numbers being drawn during a single Powerball drawing, except that the Power Play amount for the Match 5+0 prize will be two million dollars ($2,000,000). The Group may elect to run limited promotions that may modify the multiplier features.

When the 10X multiplier is available:

Power Play Probability of Prize Increase Change of Occurrence

10X - Prize Won Times 10 1 in 43 2.3255%

5X - Prize Won Times 5 2 in 43 4.6512%

4X - Prize Won Times 4 3 in 43 6.9767%

3X - Prize Won Times 3 13 in 43 30.2326%

2X - Prize Won Times 2 24 in 43 55.8140%

When the 10X multiplier is not available:

Power Play Probability of Prize Increase Change of Occurrence

5X - Prize Won Times 5 2 in 42 4.7619%

4X - Prize Won Times 4 3 in 42 7.1429%

3X - Prize Won Times 3 13 in 42 30.9523%

2X - Prize Won Times 2 24 in 42 57.1429%

Power Play does not apply to the Powerball Grand Prize. Except as provided in Section 15.4 of these rules, a Power Play Match 5 prize is set at two million dollars ($2,000,000), regardless of the multiplier selected.

Section 16 – Limitations on Payment of Power Play Prizes

1. Prize Pool Carried Forward. For Party Lotteries, the prize pool percentage allocated to the Power Play set prizes shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.
2. Pari-Mutuel Prizes – All Prize Amounts. Except as provided for in Section 16.2.2 of these rules, for Party Lotteries:

16.2.1 If the total of the original Powerball set prizes and the Power Play prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes, then the amount needed to fund the set prizes (including the Power Play prize amounts) awarded shall be drawn from the following sources, in the following order: (i) the amount available in the SPP and the PPP, if any; (ii) an amount from the Powerball SPRA, if available in the account, not to exceed forty million dollars ($40,000,000.00) per Drawing; and (iii) other amounts as agreed to by the Product Group in their sole discretion.

16.2.2 If, after these sources are depleted, there are not sufficient funds to pay the set prizes awarded (including Power Play prize amounts), then the highest set prize (including the Power Play prize amounts) shall become a pari-mutuel prize. If the amount of the highest set prize, when paid on a pari-mutuel basis, drops to or below the next highest set prize and there are still not sufficient funds to pay the remaining set prizes awarded, then the next highest set prize, including the Power Play prize amount, shall become a pari-mutuel prize. This procedure shall continue down through all set prizes levels, if necessary, until all set prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning Plays in proportion to their respective prize percentages. Powerball and Power Play prizes will be reduced by the same percentage.

1. Licensee Lotteries. Licensee Lotteries shall adhere to Section 16.2 of these rules unless a different process is approved by the Product Group.

16.4 By agreement with the Licensee Lotteries, the Licensee Lotteries shall independently calculate their set pari-mutuel prize amounts, including the Power Play prize amounts. The Party Lotteries and the Licensee Lotteries shall then agree to set the pari-mutuel prize amounts for all lotteries selling the Powerball game at the lesser of the independently calculated prize amounts.

Section 17.0 Prize Payment

1. Prize Payments. All Power Play prizes shall be paid in one single payment through the Selling Lottery that sold the winning ticket(s). A Selling Lottery may begin paying Power Play prizes after receiving authorization to pay from the MUSL central office.
2. Prizes Rounded. Prizes that, under these rules, may become pari-mutuel prizes, may be rounded down so that prizes can be paid in whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next Drawing.

Part IV – Powerball Double Play Promotion

Section 18.0 Applicability of these Rules

18.1 The Part IV Powerball Double Play Promotion Rules are applicable to all Selling Lottery, except as may be controlled by a Selling Lottery’s governing jurisdiction statue. The Product Group shall reach an agreement with such lotteries that will permit the operation of the promotion in a manner consistent with statute.

Section 19.0 Powerball Double Play Description

19.1 The Powerball Double Play Promotion is an add-on to the Powerball game, and participation by a Lottery is optional. Players must purchase an official Powerball ticket to participate in Double Play. Double Play offers players a second chance to win a new set of prizes, using the same numbers the player selected (manually or Easy Pick) for their Powerball Play. The Double Play Drawing is a separate drawing which takes place after the official Powerball Drawing, conducted by and in accordance with the Product Group approved Draw Procedures. Selling Lotteries may choose when to start and end the Double Play Promotion.

Double Play is an additional add-on to the Powerball game and does not replace or alter Power Play. Power Play is not available with the Double Play Promotion. Double Play Prizes will not be multiplied or increased by the Power Play Promotion. Double Play is conducted in accordance with the Powerball Double Play Promotion Rules and Selling Lottery Rules. All rules applicable to the Powerball Game of these rules are applicable to the Double Play Promotion unless otherwise indicated. Powerball prizes and double Play prizes are determined separately; for example, a Powerball player who chooses to participate in Double Play may win both a Double Play prize and a Powerball Prize, if their Play numbers match the Powerball winning numbers and also the Double Play winning numbers.

Participating Lotteries may require purchase of the Double Play promotion when a player purchases a Powerball Play.

19.2 How Double Play Works. Double Play is a five (5) out of sixty-nine (69) plus one (1) out of twenty-six (26) lottery game, drawn on the day(s), time(s) and location(s) as determined by the Powerball Produce Group, and which pays a single payment First Prize.

19.3 Double Play Winning Numbers. Double Play winning numbers applicable to determine Double Play prizes will be determined on the day(s), time(s) and location(s) as determined by the Powerball Produce Group. During the drawing event, five (5) numbers shall be drawn from the first set of sixty-nine (69) numbers, and one (1) number shall be drawn from the second set of twenty-six (26) numbers, which shall constitute the Double Play Winning Numbers. Powerball winning numbers shall not be used to determine Double Play prizes. Double Play winning numbers shall not be used to determine Powerball prizes.

19.4 Double Play Requirements: To play Double Play, Players must purchase an official Powerball ticket. For an additional one dollar ($1) players may purchase a Double Play option at the same time the Powerball ticket is purchased. Double Play Play numbers shall be the same as the numbers selected (manually or Easy Pick) for their Powerball Play. The one-dollar ($1) purchase price for Double Play shall include any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery Play.

19.5 Purchases. Plays may be purchased from a Selling Lottery approved sales outlet in a manner as approved by the Selling Lottery and in accordance with MUSL Rules.

19.6 Tickets and Ticketless Transactions. Selling Lotteries may determine whether the Double Play Plays are printed on the same ticket as a Powerball ticket, or on a separate ticket from the Powerball ticket.

19.7 If a Selling Lottery determines that the Double Play Play may be on a separate ticket than the Powerball tickets, under no circumstances will a claim be paid for a Double Play prize without having first purchased an official Powerball ticket for the same drawing.

19.8 If the Double Play is on a separate ticket, then that ticket must match all of the game play, serial number and other validation data residing in the Selling Lottery’s Computer Gaming System and such ticket shall be the only valid proof of the Wager placed and the only valid receipt for claiming or redeeming such prize.

19.9 If the Double Play Play is purchased as a ticketless transaction, the Selling Lottery’s electronic record of purchase shall be the only valid proof of the Wager placed and the only valid receipt for claiming or redeeming such prize.

Section 20.0 Double Play Prize Pool.

20.1 The prize pool for all prize categories offered by the Selling Lotteries shall consist of fifty-five percent (55%) of each drawing period’s sales, inclusive of any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery Powerball Play, and inclusive of contributions to the prize pool accounts, but may be higher or lower based upon the number of winners at each prize level. Prize pool contribution requirements shall be based on the sales price for Plays as established by the Group not on the amount collected by the Selling Lottery after deducting for statutorily mandated taxes.

20.2 Double Play Prize Pool Accounts. The Product Group shall set the contribution rates to the prize pool accounts established by this rule.

20.2.1 The following prize pool accounted for the Double Play game are hereby established:

20.2.1.1 The First Prize Pool (FPP), which is used to fund the First Prize and fund deficiencies in the DPSPP. Any monies not used to pay the First Prize may be used to fund deficiencies in the DPSPP shall accumulate in this pool until such times as funds are needed to pay a First Prize of fund deficientness in the DPSPP: and

20.2.1.2 The Double Play Set Prize Pool (DPSPP), which is used to fund

the Double Play Set or Lower Tier Prizes. The DPSPP shall hold the temporary balances that may result from having fewer than expected winners in the Double Play Set Prize categories. The Source of the DPSPP is the Selling Lottery’s weekly prize contributions less actual Double Play Set Prize liability.

20.3 The contribution rate to the FPP from Double Play Plays shall be four and nine thousand

eight hundred and eighty-nine ten thousandths’ percent (4.9889%) of sales except as

provided in these rules.

20.3.1 The Product Group may determine to expend all or a portion of the funds in the DPSPP: for the purpose of indemnifying the Selling Lotteries in the payment of prizes to be made by the Selling Lotteries; and for the payment of prizes or special prizes in the game, limited to prize pool contributions from lotteries participating in the special prize promotion.

20.4 Expected Prize Payout Percentages. The First Prize payout shall be determined on a pari-mutuel basis. All Double Play prizes shall be paid as a single payment prize. Except as otherwise provided in these Rules, all prizes other than the First Prize are set prize amounts. All prize payouts are made with the following expected prize payout percentages, although the prize payout percentages per draw may vary:

DP Prize Pool DP Sales

Percentage Percentage

Number of Matches Per Play Prize Payment Allocated to Prize Allocated to Prize

All five (5) of first set plus one (1) of second set. First Prize $10,000,000 9.0707% 68.0131%*

All five (5) of first set and none of second set. $500,000 7.7780% 8.5558%

Any four (4) of first set plus one (1) of second set. $50,000 9.9558% 5.4757%

Any four (4) of first set and none of second set. $500 2.4889% 0.2738%

Any three (3) of first set plus one (1) of second set. $500 6.2721% 0.6899%

Any three (3) of first set and none of second set. $20 6.2721% 1.2074%

Any two (2) of first set plus one (1) of second set. $20 5.1850% 0.9981%

Any one (1) of first set plus one (1) of second set. $10 19.7677% 4.3489%

None of first set plus one (1) of second set. $7 33.2097% 10.4373%

• The maximum contribution rate may include contributions to Prize Pool Accounts as described in these rules

20.4.1. The First Prize amount shall be divided equally by the number of Double Play Plays winning the Frist Prize. If no Plays match the Double Play winning numbers as described above, the Double Play First Prize will not be awarded, and remains at ten million dollars ($10,000,000).

20.4.2 The DPSPP (for payment of single payment prizes of five hundred thousand dollars ($500,000) or less) shall be carried forward to subsequent draws if all or a portion of the of it is not needed to pay the set prizes awarded in the current draw.

20.4.3 Parimutuel Prize Determinations Applicable to Participating Lotteries. Except as may be otherwise provided. If the total of the Double Play Set Prizes awarded in a drawing exceeds the percentage of the prize pool allocated to the Double Play Set Prizes, then the amount needed to fund the Double Play Set Prizes awarded shall be drawn from the following sources, in the following order:

20.4.3.1 the amount available in the DPSPP if any;

20.4.3.2 an amount from the FPP, if available; and

20.4.3.3 other amounts as agreed to by the Product Group in its sole

discretion.

20.4.4 If, after these sources are depleted, there are not sufficient funds to pay the Double Play Set Prizes, then the highest Double Play Set Prize shall become a pari-mutuel prize. If the amount of the highest Double Play Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Double Play Set Prize and there are still not sufficient funds to pay the remaining Double Play Set Prizes awarded, then the next highest Double Play Set Prize shall become a pari-mutuel prize. This procedure shall continue down through all Double Play Set Prize levels; in that circumstance, the money available from the funding sources listed in this Rule shall be divided among the winning Double Play Plays in proportion to their respective prize percentages.

20.4.5 Subject to the laws and rules governing each Selling Lottery, the number of prize categories and the allocation of the prize fund amount the prize categories may be changed at the discretion of the Product Group, for promotional purposes. Such a change shall be announced by the Product Group.

Section 21 - Probability of Winning Double Play Prizes.

The following table sets forth the probability of winning and the probable distribution of winner in and amount each prize category for Powerball Double Play Plays sold by Selling Lotteries, based upon the total number of possible combinations in Powerball Double Play.

Probability Distribution

Probable/Set

Number of Matches Per DP Play Winners Probability Prize Amount

All five (5) of first set plus

one (1) of second set 1 1:292,201,338.0000 First Prize

All five (5) of first set

and none of second set 25 1:11,688,053.5200 $500,000

Any four (4) of first set plus

one (1) of second set 320 1:913,129.1813 $50,000

Any four (4) of first set

and none of second set 8,000 1: 36,525.1673 $500

Any three (3) of first set plus

one (1) of second set 20,160 1: 14,494.1140 $500

Any three (3) of first set

and none of second set 504,000 1: 579.7646 $20

Any two (2) of first set plus

one (1) of second set 416,640 1: 701.3281 $20

Any one (1) of the first set plus

one (1) of the second set 3,176,880 1: 91.9775 $10

None of the first set plus

one (1) of the second set 7,624,512 1: 38.3239 $7

Overall 11,750,538 1:24.8671

Part V – Lottery Retail Agents

Section 22.0 – Lottery Retail Agents

22.1 A lottery retail agent selling Powerball, and Powerball with Power Play and Double Play tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, and procedures and decisions of the Lottery as well as with all applicable MUSL rules, regulations and requirements.

22.2 Each lottery retail agent shall receive a commission of five percent (5%) of gross receipts for Powerball and Power Play tickets sold by that lottery retail agent.

22.3 A bonus of $50,000 will be paid to the lottery retail agent for any winning Grand Prize ticket sold by that lottery retail agent.

22.4 A bonus of $20,000 will be paid to the lottery retail agent for any single Match 5 + 0 winning ticket sold by that lottery retail agent.

Section 23.0 – Effective Date

23.1 These rules shall become effective five (5) days from filing with the office of the Secretary of State.

______________________________________________________________________________

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374
• EFFECTIVE DATE: July 31, 2004
• AMENDED: August 28, 2005 – filing 2005-297
• AMENDED: December 20, 2008 – filing 2008-577
• AMENDED: MOVED TO 18-553, BUREAU OF ALCOHOL AND LOTTERY OPERATIONS, AS CHAPTER 20: June 29, 2010
• REPEALED AND REPLACED: January 15, 2012 – filing 2011-471
• AMENDED: April 24, 2013 – filing 2013-103
• AMENDED: August 30, 2014 – filing 2014-204
• AMENDED: November 24, 2015 – filing 2015-227
• AMENDED: July 2, 2016 – 2016-086
• AMENDED: December 5, 2016 – filing 2016-207
• AMENDED: August 23, 2017 – filing 2017-131
• AMENDED: May 8, 2019 – filing 2019-071
• AMENDED: November 12, 2024 – filing 2024-249
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 30 Cash Pop Game Rules

Code Me. R. 18-553 Ch. 30 Cash Pop Game Rules {#sec-18-553-ch.-30 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 30}

18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

553 BUREAU OF ALCOHOLIC BEVERAGES AND LOTTERY OPERATIONS

( Includes rules of STATE LIQUOR AND LOTTERY COMMISSION)

Chapter: 30 CASH POP Game Rules

PART I – CASH POP Game Rules

Section 1.0 – Definitions

1. “Agent” or “Lottery Retailer” means a person or entity authorized by the Lottery to sell and redeem Lottery Plays.

2. “Automated Draw Machine” or “ADM” means the method of conducting the drawing for the Winning Numbers.

3. “BABLO” means Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.

4. “Bet Slip” or “Play Slip” means a physical or electronic means by which a Player communicates their intended Play selection to the Retailer as defined and approved by these rules.

5. “CASH POP Number(s)” means the number(s) a Player may play for a game Play.

6. “Claimant” or “Winner” means any natural person or legal entity submitting a winning Game Ticket within the required prize claim period.

7. “Commission” means the State Liquor and Lottery Commission as described in 5 M.R.S. § 283-A.

8. “Director” means the Director of BABLO appointed by the Commissioner of the Department of Administrative and Financial Services.

9. “Draw Lottery Game” or “Draw Game” means a lottery game wherein a player selects a number or numbers out of a larger predetermined set or sets of numbers.

1.10 “Drawing” means the formal process of randomly selecting one or more numbers from a field of one (1) to fifteen (15) numbers which conclusively determines the Winning CASP POP Number(s).

1.11 “Easy Pick” or “Computer Pick” means the random selection of game play indicia by the authorized retailer computer or other Lottery approved device that appears on a ticket or ticketless transaction and are played by a Player in the Game.

1.12 “Expired Unclaimed Prizes” means the value of prizes which remain unclaimed after the prize claim period expires.

1.13 “Game” means the lottery game called Cash Pop.

1.14 “Game Ticket” or “Ticket” means acceptable evidence of Game Play which represents a Wager accepted by the Lottery Gaming System meeting the specifications defined in these rules and is a physical representation of the Play or Plays sold to the Player or is a properly and validly registered Ticketless Transaction Play.

1.15 “Gaming System” means the computer system used to issue and validate Game Tickets.

1.16 “Lottery” or “the Lottery” means Bureau of Alcoholic Beverages and Lottery Operations.

1.17 “Multi-Draw” means a Game feature which allows a Player to select Plays for a limited number of consecutive Drawings, starting with the next scheduled drawing. The cost of a Multi-Draw Ticket depends on how many Draws and how many Plays have been selected.

1.18 “Play,” “Bet” or “Wager” means the number(s) that appear on a Game Ticket or communicated in a ticketless transaction either manually or by an Easy Pick and are played by a Player in the Game.

1.19 “Play All” means when a Player selects all fifteen (15) numbers.

1.20 “Player” or “Purchaser” means a natural person(s) or legal entity that purchases Game Tickets in accordance with these rules.

1.21 “ Prize Fund” or “Prize Fund Percentage” means the portion of the Game’s sales set aside for the payment of prizes.

1.22 “Set Prize” means a pre-determined prize payout which is paid in a single cash payment.

1.23 “Terminal” means a device authorized to function in an interactive mode with the Lottery’s Gaming System for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions including making purchases, validating tickets and transmitting reports.

1.24 “Ticketless Transaction” shall include plays sold through subscription, internet, or non-standard terminals.

1.25 “Winning Number(s)” shall mean the indicia randomly selected at each Drawing that shall be used to determine the winning Plays contained on a Game Ticket or Ticketless Transaction.

PART II – Drawing Process

2.1 Drawings shall be conducted in such a manner, with such frequency and at such times as determined by the Director. All Drawings shall be conducted using an ADM. Any equipment used in a Drawing shall be inspected by an independent testing laboratory or other qualified entity.

PART III – Game Description and Characteristics

3.1 Game Designation. For purposes of identification, the Game shall have a designated game number in the Lottery Gaming System.

3.2 Game Description. To play CASH POP a Player selects, or has the Terminal randomly assign up to fifteen (15) numbers from a range of consecutive numbers from one (1) to fifteen (15), or the player may select “Play All” to play all fifteen (15) CASH POP Numbers. The Player may wager $1, $2, $5 or $10 for each CASH POP Number played. The Player may select from 1, 2, 3, 4, 5, 10, 15 and 20 consecutive Drawings for which the Play shall be valid (Multi-Draw). A prize amount will be randomly selected by the ADM for each CASH POP Number played and assigned to that CASH POP Number on the Ticket. A prize will be awarded for all selected CASH POP Number(s) that match the Winning CASH POP Number drawn.

3.3 Game Purchases. Game Tickets or Ticketless Transactions must be purchased from a Terminal operated by an authorized lottery Retailer, a Player Activated Terminal (if available) by using a touch screen, a lottery subscription system (if available), or other electronic means as approved by the Lottery.

3.4 Ticket Format. Game Tickets shall include, but not be limited to, Game logo or Game name, ticket cost, terminal number, barcode, serial number, and drawing date. Game Tickets may also include the selling date, time stamp and any information required by state law pertaining to the validation of Game Tickets.

3.5 Ticket Price. Each Game Ticket shall be sold at retail at the price established by the Commission.

3.6 Play Restrictions. Game Tickets may not be sold to or purchased by minors under the age of eighteen (18) years or any of the persons set forth in 8 M.R.S. § 380.

3.7 Ticket Cancellations Prohibited. A Game Ticket may not be cancelled or voided by returning the Game Ticket to the Retailer or to the Lottery. A Game Ticket accepted by the Retailer as a returned ticket that is not resold shall be deemed as owned by the bearer thereof. This prohibition also applies to a Game Ticket that may be printed in error by the Retailer. No Game Ticket, or physical portion thereof, which may be used to claim a prize, shall be returned to Lottery for credit.

3.8 Claims. A Game Ticket, subject to the validation requirements, shall be the only proof of a Game Play and the submission of a winning Game Ticket to the Lottery or Lottery Retailer shall be the sole method of claiming a prize or prizes. Under no circumstances will a claim be paid for any prize without a winning Game Ticket. Lost or missing Game Tickets may not be honored or processed for payment or replacement.

3.9 Prize Claim Period. All prizes including the top prize must be claimed as directed within 366 calendar days of the drawing in which the prize was won. For purposes of determining the claim period, the first (draw) day shall be excluded, and the last day included. If the last day falls on a Saturday, Sunday or legal Holiday, the time to claim shall be extended to close of business on the next business day thereafter when the Lottery office is open for business. Any prize not claimed within the specified period shall be forfeited.

3.10 Player Responsibility. It shall be the sole responsibility of the Player to verify the accuracy of the Game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player’s own risk through the Agent that is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.

3.11 Prize Payments. The Lottery shall not pay prizes that are less than or more than the prize amounts established in accordance with these rules. Lottery Retailers shall only pay the prize amounts the Lottery establishes. All Game prizes will be paid in a lump sum upon completion of validation procedures.

3.12 Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the drawing date on the Game Ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or drawings.

3.13 Ticket Validation Requirements

3.13.1 Specific Requirements for Validation of Tickets. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

3.13.1.1 The ticket or ticketless transaction must have been issued by the Lottery through a licensed agent, via a terminal or other means as authorized by the Lottery. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner. Ticketless transactions must be properly registered in the Lottery Gaming System and verified by the Lottery.

3.13.1.2 The Play data must have been recorded on the Lottery’s Gaming System prior to the Drawing and the Play data must match the Gaming System records in every aspect.

3.13.1.3 The validation data must be present in its entirety and correspond, using the Gaming System validation file, to the Play or Plays selection printed on the ticket for the Drawing time(s) and date(s) printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

3.13.1.4 The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

3.13.1.5 All information appearing on a ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

3.13.1.6 The ticket must be intact, fully legible, complete, and correspond to the data on file at the Lottery in every aspect.

3.13.1.7 The ticket must pass all other security criteria determined by the BABLO.

3.13.1.8 The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

3.13.1.9 A ticket shall be void unless the ticket paper stock roll was in use at the time of the bet, and validly issued to the agent from whom the ticket was purchased.

3.13.1.10 In the event that a ticket fails to pass all the criteria set forth in Section 3.13 of these rules, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the director shall be final and binding. If the director determines that the ticket is not eligible to receive a prize, then the director may, at the director’s option, replace an invalid, defective, or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant’s sole and exclusive remedy.

PART IV – Prize Winners, Prize Payouts, Prize Levels, and Probability of Winning

The following paragraphs and charts define prize payouts, prize levels, pool percentages, and chances of winning per prize level.

4.1 Entitlement to Prizes by Winners. The holder of a winning Game Ticket shall be entitled only to the prize won by matching the Winning Number(s).

4.2 Payment of Prizes. All winning Game Tickets shall be paid in accordance with these rules and state laws. The Lottery shall withhold taxes and other required withholdings in accordance with applicable federal and state laws. To be a valid Game Ticket and eligible to receive a prize, a winning Game Ticket shall satisfy all the requirements established for the validation of winning Game Tickets sold through the Lottery’s Gaming System. The Lottery shall not be responsible for Game Tickets which are altered in any manner.

4.3 Prize Pool. The estimated Prize Pool for the aggregate of all Prize Levels for each drawing is to be approximately sixty-four percent (64%) of gross sales.

4.4 Statistical Information. CASH POP prizes for each Drawing shall be determined based on the wager amount by the Player ($1, $2, $5, $10) with the prize randomly computer assigned to the CASH POP number(s) printed on a Player’s Ticket. Set prize amounts based on one (1) CASH POP number with a $1, $2, $5, or $10 wager and probability of winning (rounded to the nearest hundredth) are set out in the tables below.

$1 Wager – Statistical Information Table

Prize Amount

Odds of Receiving Prize on Ticket

Odds of Winning Prize Per CASH POP Number Played

$250

1:550.00

1:8,250.00

$100

1:300.00

1:4,500.00

$50

1:150.00

1:2,250.00

$25

1:60.00

1:900.00

$20

1:18.00

1:270.00

$15

1:12.00

1:180.00

$10

1:7.00

1:105.00

$7

1:5.00

1:75.00

$5

1:2.04

1:30.63

Estimated Total Payout

61.18%

$2 Wager – Statistical Information Table

Prize Amount

Odds of Receiving Prize on Ticket

Odds of Winning Prize Per CASH POP Number Played

$500

1:550.00

1:8,250.00

$200

1:300.00

1:4,500.00

$100

1:150.00

1:2,250

$50

1:40.00

1:600.00

$40

1:15.00

1:225.00

$30

1:10.00

1:150.00

$20

1:7.00

1:105.00

$14

1:6.00

1:90.00

$10

1:2.05

1:30.80

Estimated Total Payout

64.06%

$5 Wager – Statistical Information Table

Prize Amount

Odds of Receiving Prize on Ticket

Odds of Winning Prize Per CASH POP Number Played

$1,250

1:550.00

1:8,250.00

$500

1:300.00

1:4,500.00

$250

1:137.00

1:2,055.00

$125

1:24.00

1:360.00

$100

1:11.00

1:165.00

$75

1:10.00

1:150.00

$50

1:8.00

1:120.00

$35

1:7.00

1:105.00

$25

1:2.05

1:30.79

Estimated Total Payout

67.99%

$10 Wager – Statistical Information Table

Prize Amount

Odds of Receiving Prize on Ticket

Odds of Winning Prize Per CASH POP Number Played

$2,500

1:550.00

1:8,250.00

$1,000

1:200.00

1:3,000.00

$500

1:90.00

1:1,350.00

$250

1:20.00

1:300.00

$200

1:13.00

1:195.00

$150

1:10.00

1:150.00

$100

1:8.00

1:120.00

$70

1:7.00

1:105.00

$50

1:2.05

1:30.78

Estimated Total Payout

69.9%

PART V – Disputes

5.1 In the event a dispute between the Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning ticket, and if the ticket prize is not paid, the Lottery may, solely at its option and in its discretion, reimburse the Game Ticket bearer the purchase price of the Ticket. This shall be the Game Ticket bearer’s sole and exclusive remedy.

PART VI – Applicable Law

6.1 In purchasing a Game Ticket, the following provisions apply:

6.1.1 The Purchaser agrees to comply with and abide by laws of Maine, any rules established for the conduct of the Game, and any final decisions by the Lottery.

6.1.2 Decisions made by the Director or the Commission, including the declaration of prizes, the payment thereof, and the interpretation of these rules, shall be final and binding on all Purchasers and on every person making a claim in respect thereof.

PART VII – Lottery Retailer

7.1 A Lottery Retailer selling CASH POP tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, generally and for the Game, and procedures and decisions of the Lottery.

7.2 Each Lottery Retailer shall receive a commission of five percent (5%) of gross receipts for CASH POP tickets sold by that Lottery Retailer.

7.3 A bonus of one percent (1%) will be paid to the Lottery Retailer for any winning ticket of $1,000 or more sold by that Retailer.

PART VIII – Effective Date

8.1 These rules shall become effective five (5) days after filing with the Secretary of State.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374 and 8 M.R.S.A. §372 sub-§2
• EFFECTIVE DATE: November 19, 2023 – filing 2023-232
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 15, 2025

Chapter 40 Mega Millions Rules

Code Me. R. 18-553 Ch. 40 Mega Millions Rules {#sec-18-553-ch.-40 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 40}

PART I – Administration.

Section 1.0

These rules establish the procedures and requirements for operating and playing Mega Millions, a lotto game run by the Mega Millions Lotteries including the Multi-State Lottery Association (hereinafter referred to as “MUSL”), of which the Bureau of Alcoholic Beverages and Lottery Operations (hereinafter referred to as “BABLO”) is a member. Generally, the Mega Millions game shall be operated in accordance with any agreement between the State of Maine and MUSL, the By-Laws of MUSL, MUSL Rules and applicable Maine law.

PART II - Mega Millions Game Rules.

Section 2.0 – Definitions.

The following definitions apply unless the context requires a different meaning or is

otherwise, inconsistent with the intention of the rules adopted by the Product Group.

2.1 “Advertised Jackpot Prize” means the estimated annuitized Mega Millions Jackpot amount as determined by the Mega Millions Lotteries. The “Advertised Jackpot Prize” is not a guaranteed prize amount, and the actual Mega Millions Jackpot amount may vary from the advertised amount, except in circumstances where there is a guaranteed Mega Millions Jackpot amount as described in Section 6.1.1 of these rules.

2.2 “Agent” or “Retailer” means a person or entity licensed by a Party Lottery to sell lottery Plays.

2.3 “ Commission” means the State Liquor and Lottery Commission as establish in 5 MRSA section 283-A.

2.4 “Computer Gaming Systems” or “Gaming System” or “CGS” means the computer system used to issue and validate Game Tickets.

2.5 “Computer Pick” or “Easy Pick” means the random selection of game play number indicia by the authorized retailer computer or other approved device that appear on a Ticket or a Ticketless transaction and are played by a Player in the game.

2.6 “Drawing” refers collectively to the formal draw event for randomly selecting winning indicia that determine the number of winners for each prize level of the Mega Millions game as described in these Rules. A Mega Millions drawing shall determine the winning indicia for the Mega Millions game.

2.7 “Executive Director” means the Director of the Bureau of Alcoholic Beverages and Lottery Operations

2.8 “Finance Committee” shall mean the committee established by MUSL.

2.9 “Game ticket” or “Ticket” means the physical evidence of Play or Plays, printed on paper that meets the play and security data required by the Selling Lottery, these Game Rules, and the MUSL Rules that allow redemption of a prize. Tickets may be printed by Terminals or Retailer Controlled Selling Devices as permitted by these Rules and the Selling Lottery. Affected MUSL Rules include, but are not limited to MUSL Rule 2.14, 2.20 and 2.21.

2.10 “Jackpot” or “Jackpot Prize” shall refer to the top prize in the Mega Millions game.

2.11 “Lottery Game”, “Draw Lottery Game” or “Draw Game” means a lottery game

wherein a player selects numbers out of a larger predetermined set or sets of numbers.

2.12 “Maine Lottery” or “the Lottery” means the Bureau of Alcoholic Beverages and Lottery Operations.

2.13 “Mega Millions Lotteries” means those lotteries that have reached a Cross-Sell Agreement with MUSL for the selling of the Mega Millions game. The Mega Millions Lotteries determine the Mega Millions Advertised Jackpot Prize amount (cash value and annuity).

2.14 “Mega Millions Plays” or “MM Plays” shall refer to Plays purchased for part of the Mega Millions game.

2.15 “Multiplier” means a unique number that is automatically selected by computer software according to the frequency set forth in Rule 5.1 for each Mega Millions Play.

2.16 “MUSL” means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

2.17 “MUSL Board” means the governing body of MUSL, which is comprised of the chief executive officer of each Party Lottery.

2.18 “Participating Lottery” or “Selling Lottery” means a state lottery or lottery of a political subdivision or entity that is participating in selling the Mega Millions game and that may be a member of either MUSL or the Mega Millions Lotteries. In context, “Selling Lottery” may refer to the Participating Lottery which sold a particular Play.

2.19 “Party Lottery” means a state lottery or lottery of a political subdivision or entity which has joined MUSL and, in the context of these Product Group Rules that sell the games offered by the MUSL Mega Millions Product Group.

2.20 “Play” or “Bet” means a physical or electronic means by which a Player communicated their intended Play selection to the Retailer as defined and approved by the Selling Lottery. As used in these Rules, “Play” or “Bet” means a Mega Millions Play.

2.21 “Play Slip” or “Bet Slip” means a physical or electronic means by which a player communicates their intended Play selection to the retailer as defined and approved by the Selling Lottery. A Play Slip or Bet Slip is not a Ticket or Ticketless Transaction.

2.22 “Proof of Play” shall be the only proof of a Game Play or Plays and the submission of winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip, paper receipt, or printed summation of a Play printed by a Terminal which is not a ticket has no pecuniary or prize value and shall not constitute evidence of a Play purchase or numbers selected.

2.23 “Product Group” or “the Group” means the group of lotteries that has joined together to offer the Mega Millions Lottery game product pursuant to the terms of the Cross-Sell Agreement between MUSL and the Mega Millions Lotteries, the MUSL Agreement and the Product Group’s own rules.

2.24 “Registered Play” means a wager where the Play is owned by a specifically identified Player at the time of purchase through a means acceptable by the Selling Lottery, and which is recorded on the Selling Lottery’s Computer Gaming System and Internal Control System.

2.25 “Retailer Controlled Selling Device” means a device that is not a Terminal and which is controlled by a retailer for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports. Example of Retailer Controlled Selling Devices include cash registers. Retailer Controlled Selling Devices must meet all security requirements of the Selling Lottery, these Rules and MUSL Rules. Retailer Controlled Selling Devices do not include player provided point of sale devices such as smartphones.

2.26 “Returned Plays” means Plays accepted by the Selling Lottery as returned to the

Selling Lottery because the Play is misprinted, illegible, printed in error, a future Play affected by changes in the game features by the Selling Lottery, or is returned due to game cancellations.

2.27 “Set Prize” or “Low-Tier Prize” means all other prizes except the Mega Millions Jackpot Prize and, except in instances outlined in these rules, will be equal to the prize amount established by the Mega Millions Lotteries

2.28 “Terminal” means a device that meets all security and definitional requirements of these Rules, the MUSL Rules and the Selling Lottery, and which is authorized by the Party Lottery to function in an on-line, interactive mode with the Lottery's Computer Gaming System for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including purchases, validating tickets, and transmitting reports. The term “Terminal” does not include a Retailer Controlled Selling Device such as a cash register or player provided point of sales device such as a smartphone.

2.29 “Ticketless Transaction” means any Play that is not printed on paper that meets the anti-counterfeiting requirements described in the MUSL Rules. Examples of Ticketless Transactions include internet subscriptions and other types of Registered Plays. All Ticketless Transactions must be Registered Plays. Any Play sold through a Terminal or Retailer Controlled Selling Device, but which is a Registered Play requiring confirmation of the Player’s identity upon prize redemption, shall be considered a Ticketless Transaction even when a receipt, summation or recognition of purchase by or through the device.

2.30 “Winning Numbers” means the game results selected during an official Drawing event performed by the Mega Million Lotteries and used by the Mega Millions Lotteries to determine winning Plays contained on a Game Ticket or Ticketless Transaction.

Section 3.0 – Game Description.

3.1 Game description:

3.1.1 Mega Millions is a five (5) out of seventy (70) plus one (1) out of twenty-four (24) lottery game, drawn on the “day(s), time(s) and location(s) as determined by the Mega Millions Lotteries. Each Mega Millions play will include a Multiplier, which is a unique number that is automatically selected by computer software according to the frequency set forth in Rule 5.1 and printed directly on a Mega Millions ticket. The Multiplier increases non-Jackpot Prizes by two (2) times, three (3) times, four (4) times, five (5) times or ten (10) times the prize won. A Mega Millions Jackpot Prize will be paid at the election of the player made in accordance with these rules or by a default election made in accordance with these rules, either on a graduated annuitized annual pari-mutuel basis or as a cash value option using a rate determined by the Mega Millions Lotteries on a pari-mutuel basis. Except as provided in these rules, all other prizes are paid on a single payment basis.

3.1.2 Mega Millions winning numbers applicable to determine Mega Millions prizes will be determined on the day(s), time(s), and location(s) as determined by the Mega Millions Lotteries. During the drawing event, five (5) numbers shall be drawn from the first field of seventy (70) numbers, and one (1) number shall be drawn from the second field of twenty-four (24) numbers, which shall constitute the Winning Numbers. A Multiplier will be automatically selected.

3.1.3 To play Mega Millions, a player shall select (or easy pick) five (5) different numbers, from a field of one (1) through seventy (70) and one (1) additional number from a second field of one (1) through twenty-four (24). The player selected (or easy pick) number from the second field may be the same as one of the five numbers selected from the first field. A computer-generated Multiplier will be included on each Mega Millions Play purchased and will multiply Low Tier Prizes only. The Multiplier is included in the price of a Play and is not an add-on. The Multiplier is further defined in Rule 5.1.

3.1.4 Mega Millions Plays can be purchased for five dollars (U.S. $5.00), including any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery Play.

3.1.5 Plays may be purchased from a Party Lottery approved sales outlet in a manner approved by the Party Lottery and in accordance with MUSL Rules.

3.2 Claims. Unless otherwise permitted by the Selling Lottery, a ticket (subject to the validation requirements set forth in Section 7.0 (Play Validation)) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal produced paper receipt has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected.

3.3 Proof of Play; Cancelled Plays Prohibited; Request for Plays; Returned Plays; Incomplete Transaction Plays; Stolen Plays; and Refunds for Game Cancellation.

General. Unless otherwise permitted by the Selling Lottery, a validated ticket or properly registered Ticketless Transactions is the only proof of a game Play or Plays. Submission of a winning ticket to the issuing Party Lottery or to its authorized agent shall be the sole method of claiming a prize or prizes.

3.3.1 Cancelled Plays Prohibited. In all instances, a Play recorded on the CGS (“Computer Gaming System”) may not be voided or cancelled by returning the ticket or Ticketless Transaction to the Agent, Retailer or Selling Lottery

3.3.2 Request for Plays. A lottery may conduct future sales through a subscription or other system that does not immediately record such sales on the CGS. At the sole discretion of the Lottery, authorized sales through a subscription or other system which are recorded as a Request for Play(s) may be cancelled at any time prior to the time the Request for Play is recorded as a Play on the CGS. If a Request for Play is cancelled, it shall not be recorded on the CGS.

3. 3.2.1 Per above, once a play is recorded on the CGS, it may not be cancelled at any time. Examples of permitted cancellation of subscription “Request for Plays” included game matrix changes, price changes, modification of game features, player enrollment in self-exclusion programs, and other circumstances as determined by the Selling Lottery.

3.3.3 Returned Plays. To promote good Player or Retailer relations, a Selling Lottery, at its sole discretion, may develop a method of compensating Players or Retailers for Plays accepted by the Selling Lottery as returned to the Selling Lottery (“Returned Plays”) that are misprinted, illegible, printed in error, future Plays affected by changes in game features by the Selling Lottery or due to game cancellations.

3.3.3.1 Returned Plays may not be cancelled or voided. Returned Plays are

not reported to MUSL.

3.3.3.2 The Selling Lottery must remit its required prize pool contributions

on all Plays accepted as returned Plays by the Selling Lottery.

3.3.3.3 Returned Plays may not be claimed for a prize by any person or

entity, including the Selling Lottery. Any prizes which would have been won on a Returned Play shall become an unclaimed prize at the end of the prize claim period.

3.3.4 Incomplete Transaction Plays. Incomplete Transaction Plays occur when a Retailer begins a Play transaction as requested by a Player, and the Play is registered on the CGS but the transaction is terminated prior to transferring Play confirmation to the Player, there is no attempt to print the Play on a ticket, and the Player has not paid for the Play. Transaction terminations may be due to time sensitivities, communications loss or other issues as accepted by the Selling Lottery.

3.3.4.1 A Selling Lottery, at its sole discretion, may develop an approved

of managing Incomplete Transaction plays, subject to these provisions.

3.3.4.2 Incomplete Transaction Plays may not be cancelled or voided.

3.3.4.3 The Selling Lottery must remit its required prize pool contributions

on any Incomplete Transaction Plays. At its sole discretion, the Selling Lottery may develop a method of compensation Retailers for Incomplete Transaction Plays if Retailers are required to reimburse Selling Lotteries for prize pool contributions.

3.3.4.4 Incomplete Transaction Plays may not be claimed for a prize by any

person or entity including the Retailer. Any prize which cannot be claimed as a prize under this Rule but would otherwise have been won on an Incomplete Transaction Play shall become an unclaimed prize at the end of the prize claim period of the drawing for which the Incomplete Transaction Play was recorded. Incomplete Transaction Plays are not reported to MUSL.

3.3.5 Stolen Plays. Plays recorded as stolen from a Retailer that have been recovered cannot be accepted by the Selling Lottery as Returned Plays.

3.3.5.1 Selling Lotteries may compensate a Retailer for the loss from theft

if a Selling Lottery, solely at its discretion, determines to assume such a loss, but Stolen Plays cannot be cancelled or voided.

3.3.5.2 Ownership of Stolen Plays, and whether any party has a right to

claim prizes on Stolen Plays, shall be determined by the rules of the Selling Lottery.

3.3.6 Game Cancellation. In the event of cancellation of the Game by the Product Group prior to the occurrence of all drawings for which Plays have been sold and recorded on the CGS, the Selling Lottery may provide a refund mechanism for such Plays to the Players, and the Selling Lottery shall not be required to remit its prize pool contributions for any such refunded Plays.

3.3.7 Selling Lotteries Prohibited from Claiming Prizes. Selling Lotteries and lottery officials are prohibited from claiming any prizes on Plays that are owned by the Selling Lottery through “Returned Plays’” or otherwise acquired and held by the Selling Lottery. Any prizes that would otherwise be won on Plays owned or acquired by Selling Lotteries shall become unclaimed prizes at the end of the prize claim period.

3.4 Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a Ticketless Transaction. The placing of Plays is done at the player's own risk through the agent that is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a Ticketless Transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.

3.5 Entry of Plays. Plays may only be entered or by such means as allowed by the Party Lottery. Retailers shall not permit the use of Play Slips that are not allowed by the Party Lottery. Retailers shall not permit any device to enter Plays, except as allowed by the Party Lottery.

3.6 Registration of Plays. Ticketless Transaction Plays may be registered by the Party Lottery in a manner that meets the requirements established by the Product Group, the Party Lottery and the MUSL Rules.

3.7 Maximum Purchase. Except for a Ticketless Transaction Play purchase when the Party Lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change, the maximum number of consecutive drawings on a single Play purchase is twenty-six (26). The maximum number of consecutive drawings encompassed by a Ticketless Transaction Play purchase when the Party Lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change is one hundred four (104).

3.8 Matrix Change. In the event of a matrix change, the Party Lottery that issued the Ticketless Transaction will determine the option(s) available to Ticketless Transaction purchasers from that Party Lottery for the balance of Plays remaining on their Ticketless Transaction effective as of the date of the matrix change.

Section 4.0 – Mega Millions Prize Pool.

4.1 Mega Millions Prize Pool. The prize pool for all prize categories offered by the Party Lotteries shall consist of up to fifty-five (55%) percent of each drawing period's sales, inclusive of any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery MM Play, and inclusive of contributions to the prize pool accounts and prize reserve accounts but may be higher or lower based upon the number of winners at each prize level, as well as the funding required to meet a guaranteed Annuity Mega Millions Jackpot Prize as may be required by Rule 6.1.

4.2 Mega Millions Prize Pool Accounts and Prize Reserve Accounts.

The Product Group shall set the contribution rates to the prize pool and prize reserve accounts established by this rule.

• 1. The following prize reserve accounts for the Mega Millions game are hereby established: 1. The Prize Reserve Account (PRA) which is used to guarantee the payment of valid, but unanticipated, Mega Millions Jackpot Prize claims that may result from a system error or other reason, to fund deficiencies in the Set-Aside Pool, and to fund pari-mutuel prize deficiencies as defined and limited in Sections 4.4.1 of these Rules. 2. The following prize pool accounts for the Mega Millions game are hereby established: 1. The Mega Millions Jackpot Prize Pool (JPP), which is used to fund the current Mega Millions Jackpot Prize; 2. The Set Prize Pool (SPP), which is used to fund the Set or Low Tier Prizes. The SPP shall hold the temporary balances that may result from having fewer than expected winners in the Set Prize categories. The Source of the SPP is the Party Lottery’s weekly prize contributions less actual Set Prize liability; and 3. The Set-Aside Pool (SAP) which is used to fund the payment of the awarded minimum starting annuity Mega Millions Jackpot Prizes and the minimum annuity Mega Million Jackpot Prize increase, if necessary (subject to the limitations in these rules), as may be set by the Product Group. The source of the SAP funding shall accumulate from the difference between the amount in the Mega Millions Jackpot Prize Pool at the time of a Mega Millions Jackpot Prize win and the amount needed to fund Mega Millions Jackpot Prize payments as determined by the Mega Millions lotteries.

The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance Committee. The Finance Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Group may appeal the Committee’s objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Mega Millions Jackpot Prize win.

• 1. The contribution rate to the JPP from MM Plays shall be 37.6509% of sales.

An amount up to five percent (5%) of a Party Lottery’s sales, including any specific statutorily mandated tax of a Party Lottery to be included in the price of a lottery play, shall be added to a Party Lottery’s Mega Millions Prize Pool contribution and placed in trust in one or more prize pool and prize reserve accounts held by the Product Group at any time that the Party Lottery’s share of the PRA is below the amounts designated by the Product Group.

• 1. The Product Group may determine to expend all or a portion of the funds in the prize pools (except the JPP and the prize reserve accounts): 1. for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the Selling Lotteries; and 2. for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board’s Finance Committee or that Committee’s failure to object after given two weeks’ notice of the planned action, which actions may be appealed to the full Board by the Product Group. 2. The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries. 3. A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from a reserve account, a Party Lottery is responsible for payment of its full sales percentage share of the prize reserve account. 4. Any amount remaining in the Mega Millions prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the prize pool and prize reserve accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.

4.3 Expected Prize Payout. The Mega Millions Jackpot Prize payout shall be determined on a pari-mutuel basis. Except as otherwise provided in these rules, all other prizes awarded by Party Lotteries shall be paid as single payment prizes. All prize payouts are made with the following expected prize payout percentages which does not include any additional amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary.

4.3.1 The Mega Millions Jackpot Prize amount shall be divided equally by the number of MM Plays winning the Mega Millions Jackpot Prize.

4.3.2 The SPP (for payment of single payment prizes of one million dollars ($1,000,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw.

4.4 Pari-Mutuel Prize Determinations. Except as otherwise provided for in Section 4.4.3:

4.4.1 If the total of the Mega Millions Set Prizes (as multiplied by the respective multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Mega Millions Set Prizes, then the amount needed to fund the Mega Millions Set Prizes awarded shall be drawn from the following sources, in the following order:

4.4.1.1 the amount available in the SPP, if any;

4.4.1.2 an amount from the PRA, if available, not to exceed forty million ($40,000,000.00) per drawing.

4.4.2 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes, then the highest Set Prize shall become a pari-mutuel prize. If the amount of the highest Set Prize, when paid on a pari-mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize shall become a pari-mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become pari-mutuel prize levels. In that instance, the money available from the funding sources listed in this Section shall be divided among the winning MM Plays in proportion to their respective prize percentages. Mega Millions prizes will be reduced by the same percentage.

4.4.3 By agreement with the Mega Millions Lotteries, the Mega Millions Lotteries shall independently calculate their set pari-mutuel prize amounts. The Party Lotteries and the Mega Millions Lotteries shall then agree to set the pari-mutuel prize amount for all lotteries selling the game at the lesser of the independently calculated prize amounts.

4.4.4 Except as may be required by Rule 6.1, the official advertised Mega Millions Jackpot Prize annuity amount is subject to change based on sales forecasts and/or actual sales.

4.4.5 Subject to the laws and rules governing each Party Lottery, the number of prize categories and the allocation of prize fund among the prize categories may be changed at the discretion of the Mega Millions Lotteries, for promotional purposes. Such change shall be announced by Mega Millions Lotteries.

Section 5.0 – Prize Structure and Multiplier Frequency and Odds.

The matrix of 5/70 and 1/24 with an anticipated prize payout is shown below, and applies to all Product Group members with respect to the Jackpot Prize and will apply for all Product Group members for the second through ninth level prizes. The following table sets forth the odds of winning and the probable distribution of winners in and among each prize category for Mega Millions Plays sold by Party Lotteries, based upon the total number of possible combinations in Mega Millions. All prize payouts are made with the following expected prize payout percentages, which does not include any additional amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary:

Match Field 1

Match Field 2

Odds

Prize Category

Base Prize

% of

Sales

% of

Payout

5

1

290,472,336

Jackpot

Jackpot

27.63%

55.26%

5

0

12,629,232

Second

$1,000,000

4.75%

9.50%

4

1

893,761

Third

$10,000

0.67%

1.34%

4

0

38,859

Fourth

$500

0.77%

1.54%

3

1

13,965

Fifth

$200

0.86%

1.72%

3

0

607

Sixth

$10

0.99%

1.98%

2

1

665

Seventh

$10

0.90%

1.80%

1

1

86

Eighth

$7

4.89%

9.79%

0

1

35

Ninth

$5

8.53%

17.06%

TOTAL

1:23.07

50.00%

100.00%

5.1 Multiplier Frequency and Odds. The Multiplier shall apply to all prize levels except the Jackpot Prize. The Multiplier increases non-Jackpot Prizes by 2 times, three times four times, five times or ten times the prize won. The Multiplier shall print directly on, or be applied to each Play on a Ticket. Multipliers may repeat due to the frequency and limited levels as shown below. The Multiplier frequency and odds are as follows:

Multiplier

Frequency

Odds

10X

1

32.00

5X

2

16.00

4X

4

8.00

3X

10

3.20

2X

15

2.13

Field of:

32*

3.00**

*Total of Frequencies

** Average Multiplier Value

Section 6.0 – Prize Payments.

6.1 Jackpot Prize for Mega Millions Game

6.1.1 The prize money allocated from the current Mega Millions prize pool for the Mega Millions Jackpot Prize will be divided equally among all Mega Millions Jackpot Prize winning Mega Millions Plays in all Participating Lotteries. The annuity Mega Millions Jackpot Prize amount will be paid in thirty (30) graduated annual installments. Mega Millions Jackpot Prizes won shall be funded by the Selling Lotteries in accordance with the formula set by the Mega Millions Lotteries. The Mega Millions Lotteries may set a minimum guaranteed annuity Mega Millions Jackpot Prize amount that shall be advertised by the Selling Lotteries as the starting guaranteed annuity Mega Millions Jackpot Prize amount.

6.1.2 Rollover. If, in any Mega Millions drawing there are no Mega Millions Plays that qualify for the Mega Millions Jackpot Prize category, the portion of the prize fund allocated to such Mega Millions Jackpot Prize category shall remain in the Mega Millions Jackpot Prize category and be added to the amount allocated for the Mega Millions Jackpot Prize category in the next consecutive Mega Millions drawing.

6.1.3 Unless there is a different Party Lottery rule, Mega Millions Jackpot Prizes shall be paid, at the election of the player made no later than sixty (60) days after the player becomes entitled to the prize as determined by the Selling Lottery, with either a per winner annuity or cash payment. If the payment election is not made by the player within sixty (60) days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn, or otherwise changed.

6.1.4 In the event of a prize winner who selects the cash value option, the prize winner’s share shall be paid in a single payment upon completion of internal validation procedures. The cash value option shall be determined by the Mega Millions Lotteries.

6.1.5 If an annuity is chosen, it shall be paid inthirty (30) consecutive graduated annual installments by the Party Lottery that sold the winning Mega Millions Ticket, with graduated annual installments as defined by the Mega Millions Lotteries in the Mega Millions Finance and Operations Procedures. The initial payment shall be paid upon completion of internal validations procedures. The subsequent twenty-nine (29) payments shall be paid annually to coincide with the month of the federal auction date at which the bonds were purchased to fund the annuity. All such payments shall be made within seven (7) days of the anniversary of the annual auction date.

6.1.6 If individual shares of the Mega Millions Jackpot Prize Pool held to fund an annuity is less than two hundred fifty thousand dollars ($250,000.00), the Product Group, in its sole discretion, may elect to pay the winners their share of the cash held in the Mega Millions Jackpot Prize pool.

6.1.7 Funds for the initial payment of an annuitized prize or the cash value option prize shall be made available by MUSL for payment by the Party Lottery on a schedule approved by the Product Group. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full cash value option amount may be delayed pending receipt of funds from the Party Lotteries or other lotteries participating in the Mega Millions Game. A Party Lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

6.1.8 In the event of the death of a lottery winner sold by a Party Lottery during the annuity payment period, unless prohibited by jurisdictional law, MUSL Finance Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the “Estate”) to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning Play, and subject to federal, state, district or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner’s annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance Committee or the Product Group.

6.1.9 If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery’s game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse against MUSL or any other Party Lottery for payment of that prize.

6.1.10 Set Prizes. A Party Lottery may begin paying Low-Tier prizes after receiving authorization to pay from MUSL central office.

6.2 Process for Payments. All prizes shall be paid through the Selling Lottery that sold the winning Plays, and at the discretion of the Selling Lottery may be paid by cash, checks, warrants or electronic transfers.

6.3 Prizes Rounded. Annuitized payments of the Mega Millions Jackpot Prize or a share of the Mega Millions Jackpot Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Mega Millions Jackpot Prize win shall be added to the first payment to the winner or winners.

Prizes other than the Mega Millions Jackpot Grand Prize that, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

6.4 Limited to Highest Prize Won. The holder of a winning Mega Millions Play may win only one (1) prize per Play in connection with the winning numbers drawn for the Mega Millions game and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liability for a Mega Millions prize is discharged upon payment of a prize claim.

6.5 Prize Claim Period. Prize claims shall be submitted within the period set by the Party Lottery selling the Play, which in Maine is one (1) year from the prize eligibility date. The prize eligibility date is the date of the winning draw.

Claims. Unless otherwise permitted by the Selling Lottery, a ticket (subject to the validation requirements set forth in Section 7.0 (Play Validation)) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Party Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal produced paper receipt has no pecuniary or prize value and shall not constitute evidence of Play purchase or of numbers selected.

Section 7.0 – Play Validation for Mega Millions.

7.1 To be a valid Play and eligible to receive a prize, a Play’s ticket or Ticketless Transaction shall satisfy all the requirements established by a Party Lottery for validation of winning Plays sold through its computer gaming system and any other validation requirements adopted by the Product Group, the MUSL Board and published as the Confidential MUSL Minimum Game Security Standards. MUSL and the Party Lotteries shall not be responsible for Plays that are altered in any manner.

7.2 Specific Requirements for Validation of Tickets Sold in Maine.

7.2.1 Under no circumstances will a claim be paid for either the Mega Millions Jackpot Prize or the Second prize without an official Mega Millions ticket or validly registered Ticketless Transaction matching all game Play, serial number and other validation data residing in the Lottery’s Computer Gaming System and such ticket or validly registered Ticketless Transaction shall be the only valid proof of the wager placed and the only valid receipt for claiming or redeeming such prize. Prize payment(s) will be made only after completion of the internal validation process and administrative process as required by these Rules and the requirements of the Party Lottery that sold the winning Play.

7.2.2 In addition to Section 7.2.1, in order to be deemed a valid, winning Play, unless the Play is a validly registered Ticketless Transaction, and eligible to receive a prize, all the following requirements must be met:

7.2.2.1 The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an approved manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

7.2.2.2 The ticket date must have been recorded in the Lottery's Central Computer System at least sixty (60) minutes prior to the drawing; even if it appears that a Bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void.

7.2.2.3 The play data appearing on the ticket must correspond precisely with the Lottery's computer gaming system record.

7.2.2.4 The validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game Play or Plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

7.2.2.5 The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective. The ticket must not be an exact duplicate of another winning ticket.

7.2.2.6 All play data appearing on an apparent winning ticket must correspond to the Lottery's records of winning Plays, and another ticket with identical Play data shall not have been paid.

7.2.2.7 The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

7.2.2.8 The ticket must pass all other security criteria determined by the Mega Millions Finance and Operations Procedures, BABLO and MUSL.

7.2.2.9 The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

7.2.2.10 An apparent winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the Bet by, and validly issued to, the agent from whom the ticket was purchased.

7.2.3 In the event that a ticket fails to pass all the criteria set forth in subpart 7.2.2 of this rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the executive director shall be final and binding. If the executive director determines that the ticket is not eligible to receive a prize, then the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 – Play Responsibility.

8.1 Prize Claims. Prize claim procedures shall be governed by the rules of the Selling Lottery. MUSL and the Selling Lotteries shall not be responsible for prizes that are not claimed following the proper procedures as determined by the Selling Lottery.

8.2 Stolen Plays. The Product Group, MUSL and the Party Lotteries shall not be responsible for lost or stolen Plays.

8.3 Ticketless Transaction. A Ticketless Transaction is only valid when registered with the Lottery in accordance with Lottery Rules and the MUSL Rules. The person or, if permitted by the lottery rules, the persons registering the Play shall be the owner of the Ticketless Transaction Play. A receipt for a Ticketless Transaction has no value and is not evidence of a Play.

8.4 The Party Lotteries shall not be responsible to a prize claimant for Plays redeemed in error by a selling agent or retailer.

8.5 Winners are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Mega Millions draw. MUSL and the Party Lotteries are not responsible for Mega Millions winning numbers reported in error.

Section 9.0 – Ineligible Players.

9.1 A Play or share for a MUSL game issued by MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any Play or share shall not be paid to:

9.1.1 A MUSL employee, officer, or director;

9.1.2 A contractor or consultant under agreement with MUSL to review the MUSL audit and security procedures;

9.1.3 An employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or

9.1.4 An immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) or any person residing in the same such household of an individual described in Subsection 9.3

9.2 A Play or Ticketless Transaction may not be sold to, or purchased by, individuals who have not attained 18 years of age. However, Plays or Ticketless Transactions may be given as gifts to minors or any other individuals except as prohibited by Maine law.

9.3 As set forth in Title 8 M.R.S.A. Section 381, a Play or share of the Mega Millions game may not be purchased by and a prize may not be paid to any of the following persons:

9.3.1 Commission officers. An officer of the commission;

9.3.2 Senior supervisory personnel. Senior supervisory employees of the commission, as determined by the commission officers; and

9.3.3 Household member. Any spouse, child, brother, sister, parent or person residing as a member of the same household in the principal place of abode of any of the persons identified in this subsection. Prizes shall not be paid to any persons prohibited from playing Mega Millions in a particular jurisdiction by rules, governing law, or any contract executed by the selling lottery.

Section 10.0 – Applicable Law.

In purchasing a Play, or attempting to claim a prize in Maine, purchasers and prize claimants agree to comply with and abide by all applicable Maine laws, rules, regulations, procedures, and decisions of the Party Lottery where the Play was purchased, and by directives and determinations of the director of that Party Lottery.

Additionally, the player shall be bound to all applicable provisions in the Mega Millions Finance and Operation Procedures for Mega Millions as established by the Mega Millions Lotteries.

A prize claimant agrees, as its sole and exclusive remedy that claims arising out of a Play can only be pursued against the Party Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Play was purchased and only against the Party Lottery that issued the Play. No claim shall be made against any other Party Lottery or against MUSL.

Nothing in these rules shall be construed as a waiver of any defense or claim the Party Lottery which issued the Play, any other Party Lottery or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against a Party Lottery, or MUSL, or its officers, directors or employees.

All decisions made by a Party Lottery, including the declaration of prizes and the payment thereof and the interpretation of Mega Millions Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Play was issued.

Unless the laws, rules, regulations, procedures, and decisions of the Party Lottery which issued the Play provide otherwise, a prize shall not be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Party Lottery; any such prize claimed but unpaid shall constitute an unclaimed prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Party Lottery.

PART V – Agents.

Section 11.0 – Agents.

11.1 Agents selling Mega Millions Plays shall comply with all applicable Maine laws, rules, regulations, procedures, and decisions of the Lottery and with all applicable MUSL rules, regulations and requirements.

11.2 Each agent shall receive commission of five percent (5%) of gross receipts for Mega Millions Plays sold by that agent.

11.3 Agent bonus of one percent (1%) up to $75,000 for any winning Grand Prize play sold by that agent.

11.4 Agent bonus of one percent (1%) up to $25,000 for any single Match 5+0 winning play sold by that agent

Section 12.0 – EFFECTIVE DATE

These rules shall become effective with the drawing on April 8, 2025.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374
• EFFECTIVE DATE: May 15, 2010, filing 2010-185 (as 18-364 Chapter 4)
• AMENDED: September 20, 2010 – filing 2010-426 (as 18-553 Chapter 40)
• AMENDED: October 23, 2013 – filing 2013-253
• AMENDED: December 5, 2016 – filing 2016-208
• AMENDED: May 8, 2019 – filing 2019-072 (Misspelling of the word “filing” in this history entry corrected April 3, 2025)
• AMENDED: April 6, 2025 – filing 2025-077

Chapter 50 Lucky for Life Rules

Code Me. R. 18-553 Ch. 50 Lucky for Life Game Rules {#sec-18-553-ch.-50 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 50}

PART I – ADMINISTRATION

Section 1.0

The following game rules govern the operation of the “Lucky for Life” game described herein (the “Game”). These rules apply unless otherwise inconsistent with the constitutional provisions, statutes, regulations and rules of each Party Lottery jurisdiction (herein after collectively referred to as “state laws”).

1.1 The Connecticut Lottery Corporation, the Maine State Liquor & Lottery Commission, the Massachusetts State Lottery Commission, the New Hampshire Lottery Commission, the Rhode Island Division of State Lottery and the Vermont Lottery Commission (hereinafter the “New England Lotteries”) are offering the Game for sale. In addition to the “New England Lotteries”, other lotteries may, from time to time, offer the Game in their respective jurisdictions (collectively the “Licensee Lotteries”).

The New England Lotteries and the Licensee Lotteries are together referred to as the “Party Lotteries” or individually as a “Party Lottery”.

1.2 The purpose of the “Lucky for Life” game is to generate revenue for the Party Lotteries through the operation of a multi-jurisdictional lottery game that will award prizes to Game Ticket holders matching specified combinations of numbers randomly-selected in regularly scheduled drawings.

1.3 The Game shall commence sales by any one of the Party Lotteries no sooner than January 25, 2015 and shall continue until terminated. Upon a decision to terminate the Game in a particular jurisdiction, the Party Lottery shall publicly announce a termination date. The first drawing for the Game shall be held no sooner than January 29, 2015.

PART II – LUCKY FOR LIFE GAME RULES

Section 2.0 – DEFINITIONS

2.1 “Advance Action” or “Multi Draw” shall mean the type of betting in which wagers may be placed for future Game drawings as available in each Party Lottery.

2.2 “Agreement” shall mean the “Lucky for Life Game Regional Agreement”.

2.3 “Annuitized Payment Option” shall mean a manner in which the Game’s Top prize or second prize may be paid in equal payments or installments. The Annuitized Payment Option shall be calculated on an annual basis. The schedule of payments shall be at each Party Lottery’s discretion

2.4 “Cash Option” shall mean the manner in which the Game’s Top Prize or second prize (also referred to as “Prize Level #2”) may be paid upon the Winner’s request in one (1) single cash payment as an alternative to the Annuitized Payment Option.

2.5 “Claimant” or “Winner” shall mean any natural person or legal entity submitting a winning Game Ticket within the required prize claim period. A Claimant may be the purchaser, the natural person or legal entity named on the back of a signed Game Ticket, the bearer of an unsigned Game Ticket, or any other natural person or legal entity who may seek entitlement to a prize payment in accordance with each Party Lottery’s constitutional provisions, statutes, regulations and rules (herein after collectively referred to as “state laws”). No Claimant may assert rights different from the rights acquired by the original purchaser at the time of purchase.

2.6 “Clearinghouse Lottery” shall refer to the Party Lottery or other duly authorized entity who is responsible for collecting and transferring prize payouts on behalf of all Party Lotteries.

2.7 “Directors” shall mean the governing body of the Game which is comprised of the Executive Director, Director or Chief Executive Officer or his or her designee from each participating Party Lottery.

2.8 “Drawing” shall mean the formal process of selecting winning numbers which conclusively determines the number of winners for each prize level of the Game.

2.9 “Expired Unclaimed Prize Fund” shall mean the value of the prizes which remain unclaimed after the prize claim period expires.

2.10 “Finance & Operations Committee” “ The Game’s Finance & Operations Committee”, or other committee designated by the Directors shall mean the committee established by the New England Directors to oversee matters of finance and operations including, but not limited to, transfer and collection of funds, establishment of operating expenses, investment of prize reserves and acquisition of annuities for the operation and administration of the Game.

2.11 “Game Play(s)” shall mean that area of the play slip, also known as a “board” or “panel”, which contains two sets of numbered squares to be marked by the player: the first set (Matrix 1) contains forty-eight (48) squares, numbered one (1) through forty-eight (48) inclusive; the second set (Matrix 2) contains eighteen (18) squares, numbered one (1) through eighteen (18) inclusive.

2.12 “Game Ticket” or “Ticket” shall mean an acceptable evidence of Game Play which represents a wager accepted by the Terminal Gaming System of a Party Lottery meeting the specifications defined in these rules.

2.13 “Gaming System” shall mean the computer wagering system or internet-based sales system (iLottery) used by a Party Lottery to issue and validate Game Tickets.

2.14 “Lead Director” shall refer to the Party Lottery Director appointed by the Directors by majority vote for a period not to exceed one fiscal year. The Lead Director shall have certain administrative duties, as designated by the Directors. The Lead Director shall also have primary responsibility for negotiating and managing policy decisions of the Directors but shall have no independent power or authority over any other Party Lottery Director.

2.15 “Liability Limit” shall mean a pre-established threshold, as determined in advance by the New England Lottery Directors, for paying the Top Prize, second prize and third prize claims, as set forth more fully in Part V of these rules.

2.16 “Lottery Game” or “Draw Game” shall mean a lottery game for which wagers are accepted by the Terminal Gaming System of a Party Lottery.

2.17 “Lucky Ball” shall mean the number selected from the second set of numbers (Matrix 2) in each Game drawing.

2.18 “Lucky for Life Authorized Claim Center” shall mean a Party Lottery’s Sales Retailer, High-Tier Claim Center or Headquarters where a winning Game Ticket can be validated or cashed.

2.19 “Lump Sum Cash” shall mean a manner in which the Game’s Top Prize or second prize is required to be paid in one (1) single cash payment when the liability limit is exceeded and no Annuitized Payment Option is available, as detailed in Part V of these rules.

2.20 “Maine Lottery” or “the Lottery” means the Bureau of Alcoholic Beverages and Lottery Operations.

2.21 “Minor” shall mean a person under the age of 18 years.

2.22 “Party Lottery” shall mean a state lottery which is authorized to sell the “Lucky for Life” game.

2.23 “Play” “Bet” or “Wager” shall mean the six (6) numbers (the first five (5) from a field of forty-eight (48) numbers and one (1) Lucky Ball number from a field of eighteen (18) numbers) that appear on a Game Ticket as a single-lettered play, board or panel, and are played by a Player in the Game.

2.24 “Play Slip” or “Selection Slip”, or “Bet Slip” shall mean a card used in marking a Player’s Game Plays or Wagers.

2.25 “Player” or “Purchaser” shall mean a natural person(s) or legal entity who buys Game Tickets in accordance with these rules and state laws.

2.26 “Prize Fund” or “Prize Fund Percentage” shall mean the portion of the Game’s sales set aside for the payment of prizes.

2.27 “Quick Pick”, “Computer Pick” or “Easy Pick” shall mean the random selection of six (6) numbers resulting in a Wager accepted by a Party Lottery’s Terminal Gaming System.

2.28 “Sales Agent” or “Sales Retailer” shall mean a natural person or legal entity licensed and/or authorized by the Party Lottery to sell and redeem Game Tickets.

2.29 “Selling Lottery” shall mean the Party Lottery which sold a winning Game Ticket.

2.30 “Set Prize” shall mean a pre-determined prize payout which is paid in a single cash payment. Set prizes shall apply to the lowest eight (8) prize levels. They may also apply, however, to the Top Prize and second prize under certain conditions, as set forth more fully in Part V of these rules.

2.31 “Split Prize” shall mean a pre-determined set prize payout that is divided equally among the number of winning Game Tickets of the prize level. Split prizes shall only apply to the Game’s Top Prize, the Prize Level #2 and Prize Level #3 Winners under certain conditions, as set forth more fully in Part VII Paragraph A of these rules.

2.32 “Subscription Ticket” or “Season Ticket” shall mean a ticket sold with an extended, multi-draw purchase option wherein the same set(s) of numbers may be played for a specified number of consecutive drawings. The subscription ticket shall be effective on a future date as prescribed by the governing laws, policies and rules of the Party Lottery offering the subscription option.

2.33 “Terminal” shall mean a device for selling Lottery Game Tickets including, but not limited to, Retailer Terminals and Self-Service Terminals (“SSTs”) that operate in conjunction with the Terminal Gaming System to issue and /or validate lottery transactions. SSTs may include, but shall not be limited to, Player Activated Terminals (“PATs”) and Ticket Vending Machines (“TVMs”).

2.34 “Ticketless Transaction” shall include Plays sold through Subscription, internet or non-standard terminals.

2.35 “Top Prize” or “Grand Prize” shall mean the Game’s first prize.

2.36 “Winning Numbers” shall mean the six (6) numbers (the first five (5) numbers from Matrix 1 and the one (1) Lucky Ball number from Matrix 2) that are randomly selected at each Drawing and used to determine the winning plays contained on a Game Ticket.

PART III – DRAWING PROCEDURES

The New England Lottery Directors shall establish the drawing procedures for the Game Drawings, including a drawing problem resolution mechanism. All Drawings shall be open to the public and shall be witnessed by an Independent Certified Public Accounting Firm. Any equipment used in a Drawing shall be inspected at least annually and in the presence of an Independent Certified Public Accounting Firm. All Drawings, including pre and posttest drawings, shall be recorded unless technical issues prevent this from occurring.

PART IV – GAME DESCRIPTION AND CHARACTERISTICS

4.0 Game Designation. For purposes of identification, the Game shall have a designated game number in the Gaming System.

4.1 Game Design. The Game is a double matrix-style game, drawn daily Sunday through Saturday, in which Players select five (5) unique numbers in the Matrix 1 from one (1) to forty-eight (48) inclusive PLUS one (1) Lucky Ball number in the Matrix 2 from one (1) to eighteen (18) inclusive. The additional number may be the same as one of the first five numbers selected by the Player.

4.2 Game Purchases. Game Tickets must be purchased from a Terminal operated by a licensed Sales Retailer, a Player Activated Terminal (if available) by using a touch screen or by inserting a Selection Slip, a lottery subscription system (if available), or other means as approved by a Party Lottery.

4.3 Ticket Format. Game Tickets shall include, but not be limited to, the Player’s number selections, Game logo or Game name, ticket cost, terminal number, barcode, quick pick (if selected), replay (if selected), serial number and Drawing date. Advance Action tickets shall visibly show the beginning and ending Drawing dates. Game Tickets may also include the selling date, time stamp and any information required by a Party Lottery’s state laws pertaining to the validation of Game Tickets.

4.4 Ticket Price

4.4.1 Uniform Price. Each Game Ticket shall be sold at retail for the price set in these Game Rules.

• 1. Taxes. The Game Ticket price shall include all the applicable taxes which a Party Lottery may be required to collect. 2. Cost Per Play. Game Tickets may be purchased for two dollars ($2.00) per Play, or multiples thereof, in accordance with these Game Rules. The Player receives one (1) Play for each two dollar ($2.00) Wager. 3. Promotions. Promotions shall mean marketing or advertising intended to increase sales of the Game Tickets (excluding Subscription Tickets or Advance Action) through a discount or rebate. A Party Lottery may offer Game Tickets through promotions without approval of the other Party Lotteries, for a period not to exceed ninety (90) days in any six (6) month period as long as advance notification of five (5) days is provided to all Party Lotteries of the terms and dates of the promotional offering. 4. Tickets as Prizes. A Party Lottery may offer Game Tickets as a prize in any other lottery game after advising all Party Lotteries of the terms and dates of such action. 5. Contribution to Prize Pool. The Party Lottery may offer Game Tickets as a prize or as part of an authorized promotion provided that all such Game Ticket sales are assessed and reported to the prize pool at the full gross sales amount.

4.5 Play Restrictions and Play Styles

4.5.1 Ticket Sales to Minors Prohibited. Game Tickets may not be sold to or purchased by minors under the age of 18 years.

• 1. Ticket Cashing by Minors. Subject to the state laws of each Party Lottery, Game Tickets may not be cashed or redeemed by Minors under the age of eighteen (18) years. 2. Ineligible Players. Game Tickets shall not be purchased, and a prize won by any such Game Ticket or share, either in whole or in part, shall not be paid to:

4.5.3.1 A Party Lottery officer, Director, board member or commissioner.

4.5.3.2 A contractor or consultant under agreement with any Party Lottery to perform audit and security procedures.

• • 1. An employee of the independent certified public accounting firm under contract with any New England Lottery to oversee Game Drawings. 2. An employee of the Party Lottery’s Gaming System vendor. 3. An employee of the Party Lottery’s advertising or public relations provider.
• • 1. An employee of the Party Lottery’s instant ticket print vendors. 2. An immediate family member (parent, stepparent, child, stepchild, spouse, sibling or person engaged in a domestic partnership or civil union) of an individual described in this section residing as a member of the same household in the principle place of residence of any such person. 3. Any of the persons set forth in 8 M.R.S.A. Section 381.

1. Ticket Cancellations Prohibited. A Game Ticket may not be cancelled or voided by returning the Game Ticket to the Sales Retailer or to a Party Lottery. A Game Ticket accepted by the Sales Retailer as a returned ticket and that cannot be resold shall be deemed as owned by the bearer thereof. This prohibition also applies to a Game Ticket that may be printed in error by the Sales Retailer. Subject to the state laws of each Party Lottery, no Game Ticket, or physical portion thereof, which may be used to claim a prize, shall be returned to any Party Lottery for credit.
2. Game Sell-Out Prohibited. A Party Lottery shall not directly and knowingly sell a Game Ticket or combination of Game Tickets to any natural person or legal entity that would guarantee such Purchaser a Top Prize or second prize win.
3. Claims. A Game Ticket, subject to the validation requirements of the Party Lotteries as detailed in Section 4.22 of these rules, shall be the only proof of a Game Play (or plays) and the submission of a winning Game Ticket to a Party Lottery or its Sales Retailer shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of Game Ticket purchase or of numbers selected. Under no circumstances will a claim be paid for a Top Prize or a second prize without a winning Game Ticket. Subject to the state laws of each Party Lottery, lost or missing Game Tickets may not be honored or processed for payment or replacement.
4. Use of Play Slips. Players may submit a completed Play Slip to any licensed Sales Retailer to have a Game Ticket issued. Play slips shall be available at no cost to the Purchaser and shall have no pecuniary or prize value, or constitute evidence of purchase or number selections. The use of facsimiles of Play Slips, copies of Play Slips, or other materials that are inserted into the Terminal’s Play Slip reader that are not printed or approved by the Party Lottery are not permitted. Sales Retailers shall not permit any device to be connected to a Terminal to enter Plays, except as approved by its Party Lottery.
5. Manual Entry. Players may convey their number selections to any licensed Sales Retailer to obtain a Game Ticket. Such number selections shall be manually entered into the Terminal by the licensed Sales Retailer.
6. Quick Pick. Players may either request a Quick Pick Game Ticket from a licensed Sales Retailer or may select the Quick Pick option on the Play Slip and submit the completed Play Slip to any licensed Sales Retailer. Quick Pick shall be differentiated from Customer Select in that Quick Pick shall refer to the random selection of numbers made by the Gaming System rather than by the Player.
7. Customer Select. Players may select their own numbers by completing a Play Slip or by conveying their number selections directly to any licensed Sales Retailer. Customer Select shall be differentiated from Quick Pick in that Customer Select shall refer to number selections made by the Player rather than the Gaming System.
8. Replay Feature. If available, Players may utilize the barcodes of already-purchased Game Tickets to duplicate another Game Ticket of the same price and with the same number selections and options. To replay, Players may either make the request of a licensed Sales Retailer or may scan the barcode directly into a Player Activated or Self-Service Terminal, if authorized.
9. Advance Action or Multi-Draw. Game Tickets may be purchased for future Drawings, as available in a Party Lottery jurisdiction.
10. Subscriptions or Season Tickets. Game Tickets may be purchased by subscription, if authorized by a Party Lottery jurisdiction.
11. Limited to Highest Prize Won. In connection with the winning numbers drawn, the holder of a winning Game Ticket may win only one (1) prize per play, board or panel, and shall be entitled only to the prize won by those numbers in the highest matching prize category.
12. Prize Claim Period. All prize claims including the top prize shall be made within one (1) year after the Drawing date.
13. Player Responsibility. It shall be the Player’s sole responsibility to verify the accuracy of the Game Play (or Plays) and the other data printed on the Game Ticket. The placing of Wagers is done at the Player’s own risk through the Sales Agent.
14. Prize Payments. A Party Lottery may not pay prizes that are less than or more than the prize amounts established in accordance with these rules. The prize won cannot be indirectly increased by promotions or Sales Agent activity.
15. Group Win of Top Prize or Second Prize. If more than one (1) natural person claims a single Top Prize or second prize Game Ticket, the claim shall only be paid in a single Lump Sum Cash Payment. No Annuitized payment option shall be available.
16. Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the Drawing date on the Game Ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or Drawings.
17. Ticket Validation

4.22.1 General Requirements for Validation. To be a valid ticket and eligible to receive a prize, a ticket shall satisfy all the requirements established by the Party Lotteries for validation of winning tickets sold through its Gaming System as set forth in Section 4.22 of these rules and any other validation requirements adopted by the New England Lotteries.

4.22.2 Specific Requirements for Validation of Tickets Sold in Maine. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

4.22.2.1 The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner.

4.22.2.2 The ticket date must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the Drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the Drawing (regardless of when the Drawing is held) is void.

4.22.2.3 The information appearing on the ticket must correspond precisely with the party Lottery's computer record.

4.22.2.4 The ticket validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

4.22.2.5 The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

4.22.2.6 All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

4.22.2.7 The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect.

4.22.2.8 The ticket must pass all other security criteria determined by the Maine Lottery and the Party Lotteries.

4.22.2.9 The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

4.22.2.10 An apparent winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the bet by, and validly issued to, the Sales Agent from whom the ticket was purchased.

4.22.2.11 In the event that a ticket fails to pass all the criteria set forth in Section 4.22 of these rule, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the Director shall be final and binding. If the Director determines that the ticket is not eligible to receive a prize, then the Director may, at the Director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

PART V – PRIZE LIABILITY LIMITS, PRIZE PAYOUTS AND PRIZE LEVELS

The following paragraphs and chart define the prize liability limits, prize payouts, prize levels and pool percentages and chances of winning per prize level.

Prize Liability Limits. There are 10 prize levels in the Game.

5.0.1 Except as provided in these rules, the Top Prize (Prize Level #1) shall be annuitized and based on a Top Prize liability that will be split equally among the number of winning Game Tickets. A Top Prize Winner may request the Cash Option, the amount of which is to be established by the New England Lotteries for a defined period of Drawings. Notice of the amount of and changes to the Cash Option shall be posted on the Game’s website and/or published in each Party Lottery jurisdiction in a manner determined by that Party Lottery (hereinafter referred to as the “Published Notice”) at least thirty (30) days prior to the first Drawing to which it is applicable. Under certain circumstances, as detailed below, the Top Prize is required to be paid in a single Lump Sum Cash Payment and no Annuitized Payment Option is available.

• • 1. One (1) Top Prize Winner. If there is one (1) Top Prize winner, the annuitized prize value will be seven thousand dollars ($7,000) per week for life. As an alternative to the Annuitized Payment Option, the Top Prize Winner may request the Top Prize Cash Option in the amount set forth in the Published Notice. 2. Two (2) to Fourteen (14) Top Prize Winners. If there are between two (2) and fourteen (14) Top Prize Winners, the Annuitized Payment Option, based on an annuitized prize value of seven thousand dollars ($7,000.00) per week, will be divided by the total number of Top Prize winners. The minimum annuitized prize value for this category will be five hundred dollars ($500.00) a week for life. Any of these two (2) to fourteen (14) Top Prize Winners may choose the Cash Option as an alternative to the Annuitized Payment Option. The amount of the Cash Option for this category will be the amount of the Top Prize Cash Option set forth in the Published Notice divided by the total number of Top Prize Winners. The minimum Cash Option for this category will be the amount set forth in the Published Notice. 3. Fifteen (15) or more Top Prize Winners. If there are fifteen (15) or more Top Prize Winners, the Top Prize liability shall be capped at seven million one hundred twenty-five thousand dollars ($7,125,000.00), shall be split equally among all Top Prize Winners, and paid in one (1) Lump Sum Cash payment, without an Annuitized Payment Option. The minimum prize value for this category shall not be less than any lower tier prize paid in that respective Drawing. 4. Claiming the Top Prize. The Winner(s) of the Top Prize who do not request the Cash Option shall be paid their appropriate Top Prize share on an annual or semi-annual basis for a minimum period of twenty (20) years. Upon receipt of the claim form and the ticket by the Maine Lottery, a five (5) working day processing period will be initiated. During the five (5) day processing period, the ticket holder(s) may add or substitute other persons as co-holders of a winning ticket. This request must be a written, notarized request from the original holder(s) to the Maine Lottery office. After the five (5) day processing period has been completed, the Maine Lottery will pay the Top Prize Winner. Subsequent Top Prize payments will be made annually or semi-annually thereafter as determined by the person claiming the Top Prize. 5. Measuring Life. For a single Wager, the measuring life of a Top Prize Winner used to determine the duration over which the Top Prize is paid, shall be the natural life of the individual determined by the Selling Lottery to be a Top Prize winner. If the Top Prize under a single wager is being claimed by more than one (1) natural person or by a legal entity, the measuring life for a Top Prize winner shall be twenty (20) years. 6. If paid in a Lump Sum Cash Payment, Top Prize amounts will be rounded to the nearest whole dollar. 1. Except as provided in these rules, the second prize (Prize Level #2) Winner will be paid twenty-five thousand dollars ($25,000.00) a year for life. A second prize winner may request the Cash Option, the amount of which is to be established the New England Lotteries for a defined period of Drawings. Notice of the amount of and changes to the Cash Option shall be posted on the Game’s website and/or by each Party Lottery’s Public Notice Under certain circumstances, as detailed below, the second prize is required to be paid in a single Lump Sum Cash payment and no Annuitized Payment Option is available. 1. One (1) to Twenty (20) Second Prize Winners. If there are between one (1) and twenty (20) second prize Winner(s), the annuitized prize value will be twenty-five thousand dollars ($25,000.00) per year for life. Any of these one (1) to twenty (20) second prize winner(s) may choose the second prize Cash Option as an alternative to the Annuitized Payment Option. The amount of the Cash Option for this category will be set forth in the Published Notice. 2. Twenty-one (21) or more Second Prize Winners. If there are twenty-one (21) or more second prize Winners, the second prize liability shall be capped at nine million four hundred thousand dollars ($9,400,000.00) and shall be split equally among all second prize Winners and paid in a single Lump Sum Cash payment, without an Annuitized Payment Option. The minimum prize value for this category shall not be less than any lower tier prize paid in that respective Drawing. 3. The Winner(s) of the second prize who do not request the Cash Option shall be paid their appropriate second prize share on an annual basis for a minimum period of twenty (20) years. Upon receipt of the claim form and the ticket by the Maine Lottery, a five (5) working day processing period will be initiated. During the five (5) day processing period, the ticket holder(s) may add or substitute other persons as co-holders of a winning ticket. This request must be a written, notarized request from the original holder(s) to the Maine Lottery office. After the five (5) day processing period has been completed, the Maine Lottery will pay the second prize. Subsequent second prize payments will be made annually thereafter.

5.0.2.4 Measuring Life. For a single Wager, the measuring life of a second prize Winner used to determine the duration over which the second prize is paid, shall be the natural life of the individual determined by the Selling Lottery to be a second prize Winner. If the second prize under a single Wager is being claimed by more than one (1) natural person or by a legal entity, the measuring life for a second prize winner shall be twenty (20) years.

5.0.2.5 If paid in a Lump Sum Cash payment, second prize amounts will be rounded to the nearest whole dollar.

5.0.3 Except as provided in these rules, the third prize (Prize Level #3) will be paid as a five thousand dollar ($5,000.00) set prize. If there are more than one thousand (1,000) Winners of this prize level in a single Drawing, the total prize liability of five million dollars ($5,000,000.00) ($5,000.00 x 1,000) will be split equally among the Winners. Under no circumstances, however, will the third prize fall below a minimum prize value of two hundred dollars ($200.00) per Winner regardless of the number of Winners. Third prizes will be rounded to the nearest whole dollar and paid in a single cash payment.

• 1. The remaining prize levels (Prize Level #4 through Prize Level #10) will be paid as low-tier set prizes. Prizes will be rounded to the nearest whole dollar and paid in a single cash payment.

5.1 Entitlement to Prizes by Winners. The holder of a winning Game Ticket shall be entitled only to the prize won by matching the winning numbers in the highest matching prize category.

5.2 Payment of Prizes. All winning Game Tickets, including the Top Prize and second prize, shall be paid in accordance with these rules and state laws. Each Party Lottery shall withhold taxes and other required withholdings in accordance with applicable federal and state laws. To be a valid Game Ticket and eligible to receive a prize, a winning Game Ticket shall satisfy all the requirements established for the validation of winning Game Tickets sold through each Party Lottery’s Gaming System and any other requirements adopted by the New England Directors. Party Lotteries shall not be responsible for Game Tickets which are altered in any manner.

• 1. Top Prize and second prize Payments. Except in the case of a Cash Option payment or a Lump Sum Cash payment paid in accordance with these rules, annuitized prize payments shall be made for the measuring life of Top Prize or second prize Winner. All annuitized payments shall be made for a minimum of twenty (20) years. The measuring life as defined in Sections 5.0.1.5 and 5.0.2.4 of these rules shall be determined at the time the Top Prize or second prize is claimed. In the event that annuitized prize payments are assigned, if allowable under state law, or assigned by a court order, the measuring life at the time the Top Prize was claimed shall not change and limit or extend the number of annuitized payments due any assignee, court-ordered or otherwise. In the event of the death of a Top Prize or second prize Winner during the annuity payment period, the Selling Lottery, with the approval of the New England Lotteries, upon petition of the estate of the lottery winner (the “Estate”) to the Lottery jurisdiction in which the deceased Lottery winner purchased the winning Game Ticket, and subject to a Party Lottery’s state laws, may accelerate the payment of all the remaining Lottery proceeds to the Estate. 1. If the annuitant dies during the annuity payment period but before the guaranteed prize has been paid, the Estate shall receive the remaining payments equal to the minimum guaranteed prize. 2. If the annuitant dies during the annuity payment period but after the minimum guaranteed prize has been paid, all payments shall stop. 2. Low-Tier Set Prize Payments. All low-tier set prizes (all prizes except the Top Prize and second prize) shall be paid in one (1) single cash payment through the Selling Lottery that sold the winning Game Ticket(s). Prizes shall be rounded to the nearest whole dollar. A Selling Lottery may begin paying low-tier cash prizes after receiving authorization to pay from the Clearinghouse Lottery.

1. Statistical Information. The following table details the Game’s statistical information.

Odds of Winning, Prize Payouts and Prize Funding as a Percentage of Sales

Prize Level

Matches

Matrix #1

(5 of 48)

Matches

Matrix #2

(1 of 18)

Odds of Winning 1/

Prize

% Sales

1

5

1

30,821,472.000

$7,000/Week for Life*

10.2201%

2

5

0

1,813,027.765

$25,000/Year for Life *****

11.6380%

3

4

1

143,355.684

$5,000 *****

1.7439%

4

4

0

8,432.687

$200

1.1859%

5

3

1

3,413.231

$150

2.1973%

6

3

0

200.778

$20

4.9806%

7

2

1

249.749

$25

5.0050%

8

2

0

14.691

$3

10.2103%

9

1

1

49.950

$6

6.0060%

10

0

1

32.019

$4

6.2463%

Total Payout

59.4335%

Average Chance of Winning: 1 in 7.769

***** Prize amounts may be split if there are multiple Winners, in accordance with the provisions established in Section 5.0 of these rules. Split prizes may be lower than the published prize amounts.

PART VI – DISPUTES

In the event a dispute between a Selling Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning ticket, and if the ticket prize is not paid, the Selling Lottery may, solely at its option and in its discretion, reimburse the Game Ticket bearer the purchase price of the Ticket. This shall be the Game Ticket bearer’s sole and exclusive remedy.

PART VII – APPLICABLE LAW

In purchasing a Game Ticket, the following provisions apply:

The Purchaser agrees to comply with and abide by the Selling Lottery’s state laws and final decisions, as well as rules established for the conduct of the Game.

7.1 Decisions made by the Selling Lottery Director/Commissioner, including the declaration of prizes, the payment thereof, and the interpretation of these rules, shall be final and binding on all Purchasers and on every person making a claim in respect thereof. In the event of conflict, however, between these rules and the applicable Selling Lottery’s state laws, the applicable Selling Lottery’s state laws shall control.

7.2 All claims or litigation relating to Game Tickets and/or prizes (i) shall be subject to and resolved according to the state laws of the Selling Lottery wherein the Game Ticket was purchased; (ii) must be litigated in said state of such purchase; and (iii) can only be brought against the Selling Lottery in the jurisdiction where such Game Ticket was purchased. Nothing in the Rules or this Part waives any defense, legal or equitable, available to Selling Lottery, including sovereign immunity.

PART VIII – LOTTERY RETAIL AGENTS

A lottery Sales Agent selling Lucky for Life tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, and procedures and decisions of the Lottery as well as all applicable Lucky for Life rules, regulations and requirements.

8.1 Each Lottery Sales Agent shall receive a commission of five percent (5%) of gross receipts for Lucky for Life tickets sold by that Agent.

1. A bonus of $50,000 will be paid to the Lottery Retail Agent for any winning Top Prize ticket sold by that lottery retail agent.
2. A bonus of $250 will be paid to the Lottery Retail Agent for any single Match 5 + 0 winning ticket sold by that lottery retail agent.

PART IX – Effective Date

These rules shall become effective for the drawing of July 18, 2021.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374 and 8 M.R.S.A. §372 sub-§2
• EFFECTIVE DATE: April 7, 2012 – filing 2012-96
• AMENDED: August 30, 2014 – filing 2014-206
• AMENDED: May 10, 2015 – filing 2015-083
• AMENDED: July 18, 2021 – filing 2021-126
• ACCESSIBILITY CHECK: July 7, 2025

Chapter 60 Millionaire for Life Game Rules

Code Me. R. 18-553 Ch. 60 Millionaire for Life Game Rules {#sec-18-553-ch.-60 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 60}

PART I – Administration.

Section 1.0

These rules establish the procedures and requirements for operating and playing Millionaire for Life, a lotto game run by the Millionaire for Life Lotteries including the Multi-State Lottery Association (hereinafter referred to as “MUSL”), of which the Bureau of Alcoholic Beverages and Lottery Operations (hereinafter referred to as “BABLO”) is a member. Generally, the Millionaire for Life game shall be operated in accordance with any agreement between the State of Maine and MUSL, the By-Laws of MUSL, MUSL Rules and applicable Maine law.

PART II – Millionaire for Life Game Rules

Section 2.0 - Definitions

The following definitions apply unless the context requires a different meaning or is otherwise, inconsistent with the intention of the rules adopted by the Product Group.

“Agent” or “Retailer” –means a person or an Entity licensed by a Party Lottery offering the game to sell lottery Plays.

“Annuity” - means the Millionaire for Life Grand Prize or Match 5 Prize paid in annual installments for the Annuitant’s Measuring Life.

“Annuitant” – means the person(s) or Entity who receives the benefits of an Annuity resulting from a Winning Ticket for the Grand Prize or Match 5 Prize paid under the Annuity Option.

“Central” or “Computer Gaming System” or “CGS” –means a computer system(s) required to allow the processing, storage, and reporting of gaming transactions with all intended redundancy, which can include multiple sites and multiple vendors. Systems required for processing transactions through non-traditional methods (electronic/web play, mobile play, plays through devices that are not Terminals, etc.) are part of the CGS. Terminals and retailer provided point of sale devices such as cash registers or player provided point of sale devices such as smartphones are not part of the CGS.

“Claimant” - means any person or Entity submitting a claim form within the required time period to collect a Prize for an official Millionaire for Life Ticket. A Claimant may be the Purchaser, the person or Entity named on a signed official Millionaire for Life Ticket, the bearer of an unsigned official Millionaire for Life Ticket, or any other person or Entity who may seek entitlement to a Millionaire for Life Prize payment in accordance with the Millionaire for Life Rules.

“Claim Limitation Period” or “Expiration Period” - means the requirement that a Winning Ticket Prize must be claimed within the time period as established by the Director of the lottery that sold the Play. If no time period has been set, the claim period is 180 days of the valid Drawing date for which it was purchased.

“Commission” -means the State Liquor and Lottery Commission as establish in Title 5 MRSA section 283-A.

“Computer Pick” or “Easy Pick” – means a Game feature that allows the random selection of game play number indicia by the authorized retailer computer (or as otherwise permitted by a Selling Lottery) that appears on a Ticket or Ticketless Transaction and is used as the First Set of Numbers and Second Set of Numbers by a Player.

“Courier” – means a non-Selling Lottery third-party entity or person, which is operating in a state in which the Courier is not legally prohibited to operate, who purchases a Millionaire for Life Play or Plays on behalf of a Player and delivers the ticket exhibiting the Play or Plays to the Player within that state.

“Deferred Annuity Portion” – means the portion of the Annuity Option paid once the Prizewinner exceeds the Guaranteed Portion of the Annuity. Also see definition of Guaranteed Annuity Portion of these Game Rules.

“Director” - means the person who has primary responsibilities for managing the participating lottery. Titles may include, but are not limited to Executive Director, Director, Chief Executive Officer, and Interim Director.

“Drawing” - means a formal draw event process of randomly selecting the Winning Numbers in accordance with the Drawing Procedures.

“Entity” – means any Claimant other than a natural person who claims a Grand Prize or Second Level Prize. An Entity can only be paid a lump sum cash Prize or the minimum twenty (20) year Annuity; see definition of Measuring Life.

“Executive Director” - means the Director of the Bureau of Alcoholic Beverages and Lottery Operations.

“ Finance Committee ” - means a committee established by the MUSL.

“First Set of Numbers” means the first set of numbers from one (1) to fifty-eight (58).

“Fixed” or “Set Prizes” - means a set amount awarded in the Game unless a Liability Limit is reached.

“Future Play” - means a Game feature which allows a Player to select numbers for one or more future Drawing(s) scheduled after the next most immediate Drawing. A Future Play can be for up to thirty (30) consecutive Drawings on a single Play Slip or Bet Slip, except for ticketless transactions which can be for up to 365 Drawings if a Selling Lottery has a process in place to allow Players to make changes to their Play purchases in the event of a game change.

“Game” – means the Millionaire for Life lottery game.

“Game Administrator” – means the Multi-State Lottery Association (MUSL). The Game Administrator is not a Lottery, or part of the Selling Lotteries.

“Grand Prize” – means the Prize amount awarded for matching five (5) out of fifty-eight (58) numbers in the First Set of Numbers, and one (1) out of five (5) numbers in the Second Set of Numbers. If more than one Play from all Selling Lotteries wins the Grand Prize, the Grand Prize shall be divided among the persons holding such Plays, as provided in these Game Rules.

“Guaranteed Annuity Portion” – means the portion of the Annuity Option where the Prizewinner is guaranteed Annuity payments for the first twenty (20) years of the Claimant’s Measuring Life as may be defined in these Game Rules.

“Internal Control Systems” or “ICS” means a system maintained by a Lottery that records and reports game sales, prize wins, and other information as required by the Lotteries or Game Administrator.

“Liability Limit” – means a pre-established threshold, as determined and announced by the Selling Lotteries before sales commence for a Drawing to which the threshold applies. The Liability Limit will be posted on the Selling Lotteries’ websites

“Lottery” or “ Lotteries”; “Selling Lottery” or “Selling Lotteries”; or “Participating Lottery” – means the Lottery or Lotteries that operate the Millionaire for Life Game. Selling Lottery or Participating Lottery means a state lottery or lottery of a political subdivision or entity that is participating in selling the Millionaire for Life game and that may be a member of either MUSL or the Millionaire for Life Lotteries. In context, “Selling Lottery” may refer to the Participating Lottery which sold a particular Play.

“Lottery Game” or “Draw Lottery Game” or “Draw Game” - means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.

“Maine Lottery” or “the Lottery” - means the Bureau of Alcoholic Beverages and Lottery Operations.

“Measuring Life” or “Life” – means the period over which a Grand Prize or Second Level Prize is paid out under the Annuity Option. For each Winning Ticket, the Measuring Life shall be the natural life of the individual who the Lottery determines to be a valid Prizewinner. However, for the following Claimants, the Measuring Life shall be fixed at twenty (20) years:

A legal Entity other than an individual.

More than one natural person who claims a Prize on the same Ticket.

If allowed by a Selling Lottery, a minor under the age of 18, or any group including a minor under the age of 18.

“Millionaire for Life Sales Cut-off” – means the time after which Lottery Plays will not be accepted for that Drawing. The Sales Cut-Off occurs Monday through Sunday no later than sixty (60) minutes prior to each Millionaire for Life Drawing.

“Multi-Draw” – means a Game feature which allows a Player to select Plays for up to thirty (30) consecutive Drawings on one (1) or more Tickets, starting with the next scheduled Drawing. The cost of a Multi-Draw Ticket depends on the number of Draws and the number of Plays that are selected.

“ MUSL ” - means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.

“MUSL Board” - means the governing body of MUSL, which is comprised of the chief executive officer of each Party Lottery.

“Official Game Rules” – means the official game rules adopted by each Lottery that is offering the Millionaire for Life Game. Individual Lottery Game Rules will not conflict with these Game Rules.

“Pari-Mutuel” – means the appropriate Prize is divided by the number of Winning Plays for a Prize Level.

“Party Lottery” means a state lottery or lottery of a political subdivision or entity which has joined MUSL and, in the context of these Product Group Rules, that sell the games offered by the MUSL Millionaire for Life Product Group.

“Play” or “Wager” – means for each play a Player selects five (5) different numbers from the First Set of Numbers and one (1) additional number from the Second Set of Numbers. The additional number from the Second Set of Numbers may be the same number as one of the five numbers a Player selects from the First Set of Numbers. A Player may select numbers by communicating the six (6) numbers to a lottery Retailer or Courier; by marking five (5) numbered spaces in the First Set of Numbers and one (1) numbered space in the Second Set of Numbers on a Millionaire for Life Play Slip and submitting it to a Retailer; or by requesting a Computer Pick from a Retailer. Additionally, the Lottery may authorize other means to place a Wager, such as through a Subscription or other type of Ticketless Transaction. The Retailer shall then issue a Ticket containing the selected set or sets of numbers and the Prize payment option, each of which constitutes a Play. Each Play costs $5.00, or as otherwise determined by all Selling Lotteries.

“Play Slip” or “Bet Slip” – means an optically readable card on paper stock issued by the Lottery that a Player uses to make a Millionaire for Life Play or Plays.

“Player” or “Purchaser” – means a person at least eighteen (18) years of age, who purchases a Millionaire for Life Ticket.

“Plays per Ticket” – means the number of Plays printed on a single Ticket. Selling lotteries will determine how many Plays can be provided on a Ticket.

“Prize” or “Prizes” – means the Prize levels as defined in these Game Rules.

“Prize Pools” – means the number of dollars available to fund all Prizes. The Prize Pool for any Drawing is expected to be 55% of sales.

“Prize Level” – means the Prizes as defined in these and the Lottery’s Game Rules.

“Prizewinner” – means a Player who is entitled, as a result of, successful Claimant verification and successful Play/Ticket validation, to receive a Prize under the rules of this Game.

“ Proof of Play ” - means it shall be the only proof of a Game Play or Plays and the submission of winning ticket to the issuing Party Lottery or an authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip, paper receipt, or printed summation of a Play printed by a Terminal which is not a ticket has no pecuniary or prize value and shall not constitute evidence of a Play purchase or numbers selected.

“Product Group” or “the Group” - means the group of lotteries that has joined together to offer the Millionaire for Life Lottery game product pursuant to the terms of the Cross-Sell Agreement between MUSL and the Millionaire for Life Lotteries, the MUSL Agreement and the Product Group’s own rules.

“Registered Play” – means a wager where the Play is owned by a specifically identified Player through a means acceptable to the Selling Lottery, and which is recorded on the Selling Lottery’s central gaming system and internal control system.

“Retailer Controlled Selling Device ” - means a device that is not a Terminal and which is controlled by a retailer for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports. Retailer Controlled Selling Devices must meet all security requirements of the Selling Lottery, these Rules and MUSL Rules. Retailer Controlled Selling Devices do not include player provided point of sale devices such as smartphones.

“Returned Plays” - means Plays accepted by the Selling Lottery as returned to the Selling Lottery because the Play is misprinted, illegible, printed in error, a future Play affected by changes in the game features by the Selling Lottery, or is returned due to game cancellations.

“Second Level” or “Match 5 Prize” - means the Prize amount awarded for matching 5 out of 58 numbers in the First Set of Numbers and none out of five (5) numbers in the Second Set of Numbers.

“Second Set of Numbers” - means the second set of numbers from one (1) to five (5). A number in the Second Set of Numbers may be the same as one (1) through five (5) selected from fifty-eight (58) in the First Set of Numbers.

“Subscription” or “Subscription Play” or “Multi-Draw” or “Advanced Draw” - means an extended, multi-draw purchase option wherein the same set(s) of numbers may be placed for a specified number of consecutive draws effective on a future prescribed date. If a purchased set of numbers on a Subscription matches the randomly selected Winning Numbers in the applicable Drawing for either the Grand Prize or Second Prize, a claim form for the Subscription Play must still be presented, in writing, to the Lottery that sold the Subscription.

“Terminal” – means a device that is authorized by the Lottery to interact with the Lottery’s central gaming system to issue Lottery Tickets and to enter, receive and process Lottery transactions that may include issuing Tickets, validating Tickets and transmitting reports. This includes Player Self-Service Terminals (PSST) for the purchase of Millionaire for Life Tickets. When using a PSST, the Player may make selections by inserting a completed Play or Bet Slip into the PSST’s optical mark reader, or by manually entering the selections on the PSST touch screen or selecting a Computer Pick option. The term “Terminal” does not include a Retailer Controlled Selling Device such as a cash register or player provided point of sales device such as a smartphone. Note: some PSST’s may not support all the differing methods of number selection.

“Ticket” or “ Game Ticket ” – means an official Millionaire for Life Game Ticket, produced on official paper stock by a Retailer in an authorized manner, bearing Player or computer selected numbers, Game name, Drawing date, amount of Wager, and validation data that meets the play and security data required by the Selling Lottery, these Game Rules, and the MUSL Rules that allow redemption of a prize.

“Ticketless Transaction” – means any Registered Play that is not printed on paper that meets the anti-counterfeiting requirements required by the Selling Lotteries. Examples of Ticketless Transactions include internet, subscription, and other types of Registered Plays. All Ticketless Transactions must be Registered Plays. Any Play sold through a Terminal or Retailer Controlled Selling Device, but which is a Registered Play requiring confirmation of the Player’s identity upon prize redemption, shall be considered a Ticketless Transaction even when a receipt, summation or recognition of purchase by or through the device. A Ticketless Transaction Play is only valid when registered with the lottery in accordance with lottery rules, these Rules and the MUSL Rules. The person or, if permitted by the lottery rules, the person(s) registering the Play shall be the owner of the Ticketless Transaction Play. A receipt for a Ticketless Transaction has no value and is not evidence of a Play.

“Wager” – See “Play”.

“Winning Numbers” – means the five (5) numbers from the First Set of Numbers, and the one (1) number from the Second Set of Numbers, randomly selected during a Millionaire for Life Drawing, that shall be used to determine the Winning Play.

“Winning Play(s)” – means the Play(s) that matches the Winning Numbers according to the prize table.

“Winning Ticket” – means a Ticket that has passed all Lottery validation and security requirements and that contains a set of numbers entitling Claimant to a Prize. Each Winning Ticket must meet all Play validation requirements as established by the Lottery that sold the Play.

“Unclaimed Prize” – means a Prize that has not been formally claimed or redeemed by a Claimant within the specified claim period as set forth in these and/or the game rules as provided by the Selling Lottery. In no event shall any Prize that remains unclaimed after the period claim set by these Game rules become or constitutes unclaimed property or abandoned property.

Section 3.0 - Game Description

Lotteries offering the Millionaire for Life multi-jurisdictional lottery game agreed to jointly operate the game pursuant to the Game Participation Agreement (“Agreement”) and such other related procedures agreed to by the Selling Lotteries. Participating states have joined the game since it was established and may change from time to time.

Description: The Millionaire for Life game is a draw-based lottery game with a set Grand Prize and eight set prize levels. A Winning Play will match the randomly selected five (5) of fifty-eight (58) numbers from the First Set of Numbers, and one (1) of five (5) numbers from the Second Set of Numbers.

1. A sample Play could be as follows: 01-02-21-04-30-04 1. (First Set of Numbers: 01-02-21-04-30; Second Set of Numbers: 04)

To Play Millionaire for Life, a Player selects, or has the Terminal randomly assign (Computer Pick) five (5) numbers from the First Set of Numbers which includes a range of consecutive numbers from one (1) to fifty-eight (58) and one (1) number from the Second Set of Numbers which includes a range of consecutive numbers from one (1) to five (5). The additional number selected from the Second Set of Numbers may be the same number as one of the five (5) numbers a Player selects from the First Set of Numbers, or has the Terminal randomly assign (Computer Pick) from the First Set of Numbers.

Price: The price of a single Play shall be $5.00, including all applicable taxes that a Selling Lottery may be required to collect. The Director of a Selling Lottery may establish a discount for Players for limited promotional purposes from time to time.

The Prize Structure offers nine (9) ways to win up to $1,000,000 a year for life**.

1. The top two prizes are offered as a lifetime annuity payment, or as a lump sum cash payment. Players will make an irrevocable choice of an annuity, or a lump sum cash payment when claiming their prize. 1. Match 5 + 1 prize will be an annuity prize of $1,000,000 a year for life (or the cash value of $18,000,000 in a one-time lump sum cash payment) 2. Match 5 + 0 prize will be an annuity prize of $100,000 a year for life (or the cash value of $2,200,000 in a one-time lump sum cash payment)
2. The remaining seven prize tiers are set cash prizes. 1. Match 4 + 1 prize will be a one-time cash payment of $7,500 2. Match 4 + 0 prize will be a one-time cash payment of $500 3. Match 3 + 1 prize will be a one-time cash payment of $250 4. Match 3 + 0 prize will be a one-time cash payment of $50 5. Match 2 + 1 prize will be a one-time cash payment of $25 6. Match 2 + 0 prize will be a one-time cash payment of $8 7. Match 1 + 1 prize will be a one-time cash payment of $8

Drawings: The game play sales will close for each draw no later than 9:15 P.M. Central Time. The Drawing to select the Winning Numbers shall be conducted at the studios of the Multi-State Lottery Association at approximately 10:15 P.M. Central Time. Millionaire for Life Drawings shall be conducted seven (7) days per week, Monday through Sunday, at the designated time. However, the day, time or location of Millionaire for Life Drawings may be modified as determined by all Lotteries offering the Millionaire for Life Game and will be publicly announced by the Lotteries. All Millionaire for Life Drawings will be open to the public and shall be witnessed by an Independent Certified Public Accounting Firm. The winning numbers will be selected randomly using Digital Draw Systems (DDS).

The Digital Draw System will randomly select five (5) numbers from a field of fifty-eight (58) numbers for the First Set of Numbers; and one (1) number from a field of five (5) numbers for the Second Set of Numbers.

Sales Cut-Off (game closure). Millionaire for Life Tickets will be sold every day during the normal business hours of the Retailers authorized to sell said Tickets, or other means authorized by the Lottery. The sale period for any given Millionaire for Life Lottery Drawing will terminate on the date of the Drawing no later than 9:15 P.M. Central Time.

Official Results. Official results of the Drawings, even though announced, are located in the draw files at the offices of the Game Administrator. Neither the Game Administrator nor the Selling Lotteries shall be liable for media misprints or incorrectly announced Winning Numbers on any website(s) and social media.

Claims. Unless otherwise permitted by a selling lottery, a ticket (subject to the validation requirements set forth in Section 6.0 of these Rules (Ticket Validation)) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Selling Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A play slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal generated paper receipt has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected.

1. Claims and validations will be performed by the Lottery that sold the Winning Ticket.
2. The Play must have been issued on a Ticket by an authorized Retailer on official paper stock of the Lottery or be a Ticketless Transaction (registered or Subscription Play) as authorized by a Lottery.
3. The Winning Play must have been recorded on the central gaming system prior to the Drawing and must match exactly with the official file of Winning Tickets and must not have been previously paid. In the event of a contradiction between information as printed on the Ticket and as accepted by the Lottery central gaming system, the Wager accepted by the Lottery central gaming system shall be the valid Wager.
4. Prize claim and validation procedures shall be governed by the rules of the Selling Lottery. The Game Administrator and the Selling Lotteries shall not be responsible for Prizes that are not claimed following the proper procedures as determined by the Selling Lottery.
5. The Selling Lotteries shall not be responsible to a Prize Claimant for Plays redeemed in error by a selling Agent, sales Agent, Retailer, or Courier.

Cancellations Prohibited; Request for Plays, Returned Plays, Incomplete Transaction Plays, Stolen Plays and Refunds for Game Cancellations.

1. Plays non-cancellable. In all instances, a Play recorded on the Computer Gaming System (CGS) may not be voided or cancelled by returning the ticket or ticketless transaction to the Retailer or to the Selling Lottery, including tickets that are misprinted, illegible, print in error, or for any reason not successfully transferred to an authorized selling entity or Player.
2. Request for Plays. A lottery may conduct future sales through a Subscription or other system that does not immediately record such sales on the CGS. A “Request for Play” is a sale that is not immediately recorded on the CGS but is instead recorded onto the CGS at some future time prior to a draw event. At the sole discretion of the lottery, authorized sales through a subscription or other system which have not been recorded on the CGS (instead recorded as “Request for Plays”), may be cancelled at any time prior to the time the Request for Play is recorded as a Play on the CGS. If a Request for Play is cancelled, it shall not be recorded on the CGS. 1. Once a Play is recorded on the CGS, it may not be cancelled at any time. Any cancelled “Request for Play” shall not be included in sales data reports to MUSL.
3. Returned Plays. To promote good Player or Retailer relations, a Selling Lottery, at its sole discretion, may develop a method of compensating Players or Retailers for Plays accepted by the Selling Lottery as returned to the Selling Lottery (“Returned Plays”) that are misprinted, illegible, printed in error, future Plays affected by changes in game features by the Selling Lottery including Game cancellations 1. Returned Plays may not be cancelled or voided. Returned Plays are not reported to MUSL. 2. The Selling Lottery must remit its required prize pool contributions for all Plays accepted as returned Plays by the Selling Lottery. 3. Returned Plays may not be claimed for a prize by any person or entity, including the Selling Lottery. Any prizes which would have been won on a Returned Play shall become an unclaimed prize at the end of the prize claim period.
4. Incomplete Transaction Plays occur when a Retailer begins a Play transaction as requested by a Player, and the Play is registered on the CGS, but the transaction is terminated prior to transferring Play confirmation to the Player, there is no attempt to print the Play on a ticket, and the Player has not paid for the Play. Transaction terminations may be due to time sensitivities, communications loss or other issues as accepted by the Selling Lottery. 1. A Selling Lottery, at its sole discretion, may develop an approved method of managing Incomplete Transaction Plays, subject to these provisions. 2. Incomplete Transaction plays may not be cancelled or voided. 3. The Selling Lottery must remit its required prize pool contributions on any Incomplete Transaction Plays. At its sole discretion, the Selling Lottery may develop a method of compensation to Retailers for Incomplete Transaction Plays if Retailers are required to reimburse Selling Lotteries for prize pool contributions. 4. Incomplete Transaction Plays may not be claimed for a prize by any person or entity including the Retailer. Any prize which cannot be claimed as a prize under this Rule but would otherwise have been won on an Incomplete Transaction play shall become an unclaimed prize at the end of the prize claim period of the drawing which the Incomplete Transaction Play was recorded. Incomplete Transaction Plays are not reported to MUSL.
5. Lost or Stolen Plays. Plays reported as lost or stolen from a Retailer that have been recovered cannot be accepted by the Selling Lottery as Returned Plays. 1. The Selling Lotteries shall not be responsible for lost or stolen Tickets. 2. Selling lotteries may compensate a Retailer for the loss from theft if a Selling Lottery, solely at its discretion, determines to assume such a loss, but Stolen Plays cannot be cancelled or voided. 3. Ownership of Stolen Plays, and whether any party has a right to claim prizes on Stolen Plays, shall be determined by the rules of the Selling Lottery
6. Game Cancellation. In the event of cancellation of the Game by the Product Group prior to the occurrence of all drawings for which Plays have been sold and recorded on the CGS, the Selling Lottery may provide a refund mechanism for such Plays to the Players, and the Selling Lottery shall not be required to remit its prize pool contributions for any such refunded Plays

Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player's own risk through the agent that is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.

1. It shall be the sole responsibility of the Purchaser to verify the accuracy and readability of the information printed on the Millionaire for Life Ticket at the time of purchase. After the Purchaser leaves a Retailer location, neither a Retailer nor the Lottery shall be liable for any errors in the accuracy and readability of a Ticket occurring for any reason.

Entry of Plays. As approved by the Selling Lottery by such means as approved by the Selling Lottery, Retailers shall not permit the use of Play Slips that are not by the Selling Lottery. Retailers shall not permit any device to enter Plays, except as allowed. Millionaire for Life Play Slips shall be available at no cost to the Player. Play Slips shall have no pecuniary or Prize value and shall not constitute evidence of purchase or number selections.

Registration of Plays. Ticketless transaction Plays may be registered with by the Selling Lottery in a manner that meets the requirements established by the Product Group, the Selling Lottery and the MUSL Rules.

1. Play selections of less than or more than six (6) numbers will be impermissible and void.
2. All Lottery Tickets issued for this Game shall be clearly identified with the name of the Game and the date or dates of the Drawing(s) for which they apply.

Replay Feature. Players may request that a Retailer utilize the barcodes of already purchased Millionaire for Life Tickets to duplicate another Ticket of the same price and with the same number selections and options.

Maximum Purchase. Except for a ticketless transaction Play purchase, when the lottery has a process to allow Players to make changes to their Play purchases in the event of a game change, the maximum number of consecutive Drawings on a single Play purchase is thirty (30). The maximum number of consecutive ++encompassed by a ticketless Play purchase when the lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change is one hundred fifty-six (156). The maximum number of Drawing purchases may be further limited by the Selling Lottery Director.

Matrix Changes. In the event of a matrix change, the Selling Lottery that issued the ticketless transaction will determine the option(s) available to ticketless transaction purchasers for that Selling Lottery for the balance of Plays remaining on their ticketless transactions effective as of the date of the matrix change.

Rule Changes. The Selling Lotteries reserve the right to make changes to the Millionaire for Life game, including the quantity of the First Set of Numbers and/or the Second Set of Numbers. Any changes in the Millionaire for Life Game shall be determined by the Selling Lotteries and shall be publicly announced by the Selling Lottery in advance of the effective date.

Section 4.0 – Matches, Probabilities, and Prize Amounts and Levels**

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Millionaire for Life. The Set Prize Amount shall be the prizes set for all Selling Lotteries unless prohibited or limited by a jurisdiction’s statute or judicial requirements.

Number of Matches Per Ticket Probability Distribution Prize Amount Prize Level

All five (5) of First Set of Numbers

Plus one (1) of Second Set of

Numbers 22,910,580.000000 $1,000,000/yr for Life Grand Prize

All five (5) of First Set of Numbers

and none of Second Set of

Numbers 5,727,645.000000 $100,000/yr for Life Second Prize

Any four (4) of First Set of Numbers

Plus one (1) of Second Set of

Numbers 86,455.018868 $7,500 Third Prize

Any four (4) of First Set of Numbers

and none of Second Set of Numbers 21,613.754717 $500 Fourth Prize

Any three (3) of First Set of Numbers

Plus one (1) of Second Set of Numbers 1,662.596517 $250 Fifth Prize

Any three (3) of First Set of Numbers

and none of Second Set of Numbers 415.649129 $50 Sixth Prize

Any two (2) of First Set of Numbers

Plus one (1) of Second Set of Numbers 97.799795 $25 Seventh Prize

Any two (2) of First Set of Numbers

and none of Second Set of Numbers 24.449949 $8 Eighth Prize

Any one (1) of First Set of Numbers

Plus one (1) of Second Set of Numbers 15.647967 $8 Ninth Prize

Overall Odds 8.467665

Prize Pool. The Prize Pool for the aggregate of all Prize Levels shall consist of 55% percent of the

sales receipts for each Drawing.

Cash Value of Cash Option Subject to Change. The Cash Value of the lump sum payment for the Grand and Second Level Prizes are posted on the Lottery’s and MUSL websites and are subject to change.

Prize Payout and Structure. There are nine (9) Prize Levels in the Millionaire for Life Game. The

Prize payouts and Prize structure are as follows, unless there are multiple winners in a Prize Level, in which case Prize amounts may be reduced as set forth in these Game Rules.

Pari-Mutuel Prize(s): The Grand Prize shall be determined on a Pari-Mutuel basis. In certain circumstances (see below), the Second Level Prize may become Pari-Mutuel. Other Prizes are set Prizes as indicated below.

Highest Prize Won. In a single drawing, a Claimant may win only one (1) Prize Level per single Play and shall be entitled only to the highest Prize Level for that Winning Play. In the event that a Liability Limit would be exceeded for a particular Draw, the Prize amounts for each Prize Level shall be adjusted in accordance with a formula established by the Selling Lotteries so that the aggregate liability for Prizes in such Draw shall not exceed the Liability Limit.

Prize Payout Election: Purchaser must sign a written Prize payout election form and make an irrevocable selection of the Cash Option, or the Annuity Option sixty (60) days from the date the Purchaser is entitled to the Prize. Selling Lotteries may adopt a different process so long as the Purchaser indicates an irrevocable decision by signature.

Section 5.0 – Millionaire for Life Prize Payment

In the event that a Liability Limit would be exceeded for a particular Draw, the Prize amounts for each Prize Level shall be adjusted in accordance with a formula established by the Selling Lotteries so that the aggregate liability for Prizes in such Draw shall not exceed the Liability Limit.

1. Grand Prize Payout. Except as provided in these Official Game Rules, the Grand Prize shall be paid either as an Annuity or lump sum cash. A Grand Prize payout shall be divided equally among the number of Grand Winning Tickets as set forth below. Under certain circumstances, as detailed below, the Grand Prize is required to be paid in a single lump sum payment and no annuitized payment option is available.
2. One (1) Grand Prize-Winning Play among the Selling Lotteries. If there is one (1) Grand Prize-Winning Play, the annuitized Prize value will be $1,000,000 per year for life, paid in annual installments, or a one-time lump sum cash Prize payment.
3. Two (2) to Twenty (20) Grand Prize-Winning Tickets among the Selling Lotteries. If there is more than one (1) and less than or equal to Twenty (20) Grand Prize-Winning Plays, the annuitized payment based on an annuitized Prize value of $1,000,000 per year will be divided by the total number of Grand Prize-Winning Plays. The minimum annuitized Prize value for this category will be $50,000 per year for life. The two (2) to twenty (20) Grand Prize-Winning Play Purchasers may choose the Cash Option as an alternative to the Annuity Option.
4. Twenty-one or more Grand Prize-Winning Plays among the Selling Lotteries. If there are twenty-one (21) or more Grand Prize-Winning Plays, no Annuity Option shall be available. Rather, the Grand Prize Cash Value shall be divided equally among all Grand Prize-Winning Plays and paid in one lump sum cash payment per each winning Play that has been claimed and validated. The minimum Grand Prize value for each of the 21 or more Grand Prize-Winning Plays shall be not less than the lowest tier Prize paid for the same Drawing.
5. Second Level Prize Payouts. Except as provided in these Game Rules, the Second Level Prize shall be paid either as an Annuity or lump sum cash. For each Second Level Prize Winning Play, the annuitized Prize value will be $100,000 annually for life, paid in annual installments, or a one-time lump sum cash Prize payment, unless a Liability Limit would be exceeded.
6. One (1) to Twenty (20) Second Level Prize Winning Plays among the Selling Lotteries. If there are between one (1) and Twenty (20) Second Level Winning Plays, the annuitized Second Level Prize Value will be $100,000 per year for life. Any of these one (1) to twenty (20) Second Level Prize Winning Plays may choose the Cash Option as an alternative to the Annuitized Payment Option. The amount of the Cash Option for this category will be the amount of the Second Level Prize Cash Option as established by all the Selling Lotteries.
7. Twenty-one (21) or more Second Level Prize Winning Plays among the Selling Lotteries. If there are twenty-one (21) or more Second Level Prize Winning Plays, the Second Level Prize Liability shall be capped at an amount as determined by the Selling Lotteries, and shall be split equally among all Second Level Prize-Winning Plays, and shall be paid in one (1) Lump Sum Cash Payment, without an annuitized Payment Option. The minimum prize value for this category shall not be less than the lowest tier Prize paid in that respective Drawing.
8. Third Level Prize Payouts. The Third Level Prize Payout will be paid as a $7,500 Fixed Prize and paid in one single cash payment.
9. Fourth Level Prize Payouts. The Fourth Level Prize Payout will be $500 Fixed Prize and paid in one single cash payment.
10. Fifth Level Prize Payouts. The Fifth Level Prize Payout will be $250 Fixed Prize and paid in one single cash payment.
11. Sixth Level Prize Payouts. The Sixth Level Prize Payout will be $50 Fixed Prize and paid in one single cash payment.
12. Seventh Level Prize Payouts. The Seventh Level Prize Payout will be $25 Fixed Prize and paid in one single cash payment.
13. The Eighth and Ninth Level Prize Payouts will be $8 Fixed Prize each and paid in one single cash payment.

Millionaire for Life Annuity Requirements and Restrictions

1. Minimum Annuity Period: An Annuitant shall be paid their appropriate Grand Prize share or Second Level Prize share on an annual basis for life, or for the twenty (20) year term of the Guaranteed Annuity Portion, whichever is longer. In the event that an Annuitant dies within the twenty (20) year Guaranteed Annuity Portion, any remaining Prize payments in the Guaranteed Annuity Portion shall be paid to the Annuitant’s estate or to the Annuitant’s beneficiary pursuant to the Lottery’s rules and regulations and law. The initial payment under the Annuity Option shall be paid as soon as possible upon completion of internal validation procedures and in accordance with these Official Game Rules.
2. There shall be no assignment of Grand Prize or Second Level Prize except as set forth in the statutes or regulations of the Lottery that sold the winning Ticket.
3. Proof of Life: Prior to the beginning of payment of the Deferred Annuity Portion, Lottery will send an affidavit letter to the Annuitant requesting proof of life. The purpose of the affidavit letter is to verify that the Annuitant is still alive. The Annuitant shall sign the affidavit letter and the letter shall bear the seal of a notary public. A proof of life affidavit letter will be sent to the Annuitant each subsequent year prior to the next scheduled installment payment. If Annuitant fails to provide a signed and notarized affidavit letter, the Lottery shall not make any further Deferred Annuity Portion payments. However, when, in the Director’s sole discretion, the facts underlying an Annuitant’s failure to provide a completed annual affidavit letter are reasonable, the Deferred Annuity Portion payments may resume. No interest shall be paid by the Lottery on the value of the Prize or any payment thereof during any period that a Prize payment was not made due to failure of the Annuitant to provide an affidavit letter.
4. In no event shall installment payments be made in the Deferred Annuity Portion of the Annuity Option after the Annuitant’s death.
5. It shall be the Prizewinner’s responsibility to provide the Lottery paying the Annuity any updated address information to which Prize installments will be mailed even if a full annual payment or multiple payments have been assigned to a third party.
6. Where a Claimant of a Grand Prize or Second Level Prize is a minor who has not yet attained a majority age in the applicable jurisdiction in which the lottery that sold the Play is located, such Prize will be subject to the laws and regulations governing the Selling Lottery.

Section 6.0 – Ticket Validation

Play Validation for Millionaire for Life. To be a valid Play and eligible to receive a prize, a Play’s ticket or ticketless transaction shall satisfy all the requirements established by a Selling Lottery for validation of winning Plays sold through its computer gaming system as set forth in Section 7.0 of these rules and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Selling Lotteries shall not be responsible for tickets or ticketless transactions that are altered in any manner.

1. Under no circumstances will a claim be paid for any prize without an official ticket (or a registered Ticketless Transaction) matching all game Play, serial number and other validation data residing in the Selling Lottery’s Computer Gaming Systems and such ticket (or validly registered Ticketless Transactions) shall be the only valid proof of the wager placed and the only valid receipt for claiming a ticket.
2. In submitting a Play for validation, the Claimant agrees to abide by applicable laws, all rules and regulations, instructions, conditions, and final decisions of the Director of the Selling Lottery that issued the Play; 1. There must not be any other breach of these Game Rules in relation to the Play that, in the opinion of the Director of the Selling Lottery that issued the Play, justifies invalidation; 2. The Play must be submitted to the Selling Lottery that issued it; and 3. Ticketless Transactions must meet the validation requirements of the Selling Lottery that issued the Play.

Specific Requirements for Validation of Tickets Sold in Maine

1. To be a valid play and eligible to receive a prize, all the following requirements must be satisfied: 1. The ticket must have been issued by the Lottery through a licensed agent and terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner. 2. The ticket date must have been recorded in the Lottery's central computer system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void. 3. The information appearing on the ticket must correspond precisely with the party Lottery's computer record. 4. The ticket validation number must appear in its entirety, and correspond, using a computer validation file, to the winning Game Play or Plays printed on the ticket. 5. The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective. 6. All information appearing on a winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid. 7. The ticket must be intact, fully legible, complete and not miscut, corresponding to the data on file at the Lottery in every respect. 8. The ticket must pass all other security criteria determined by the Maine Lottery and the MUSL. 9. The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof. 10. A winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased. 11. Stolen, unissued, unreadable, mutilated, altered, reconstituted, counterfeit in whole or in part, miscut, defective, tampered with, printed or produced in error, or blank or partially blank; 1. or Printing is irregular; 2. or Apparent or asserted symbols are not confirmed by validation number; 3. or The Ticket fails any of the Lottery’s other validation tests. 12. In submitting a Play for validation, the Claimant agrees to abide by applicable laws, all rules and regulations, instructions, conditions, and final decisions of the Director of the Selling Lottery that issued the Play; 13. There must not be any other breach of these Game Rules in relation to the Play that, in the opinion of the Director of the Selling Lottery that issued the Play, justifies invalidation. 14. In the event a ticket fails to pass all the criteria set forth in Section 7.0 of these rules, the ticket shall be deemed void and ineligible for any prize and shall not be paid. 15. In the event of a dispute or other instance of doubt, the decision of the Selling Lottery shall be final and binding. If the Selling Lottery determines that the ticket is not eligible to receive a prize, then the Selling Lottery may, at Selling Lottery’s option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.
2. A Millionaire for Life Play matching all Game play, serial number, and other validation data recorded in the Lottery’s computer gaming system shall be the only valid proof of a Wager placed and the only valid receipt for claiming or redeeming any Prize.

6.3 Claim Limitation period for Millionaire for Life Prizes is determined by the Lottery that sold the Play. For Maine, all prizes including the Grand Prize must be claimed as directed within 366 calendar days from the drawing in which the prize was won.. Any prize not claimed within the specified period shall be forfeited.

1. Process for Prize Payments. If a written claim has been made within the applicable claim period, and all validation requirements established by these and the Selling Lottery have been met, Prizes will be paid through the Selling Lottery that sold the winning Play(s) by means approved by that Selling Lottery. Selling Lotteries shall calculate applicable taxes and debt setoffs as required.
2. The liability of the Lottery for Tickets printed or produced in error or for defective Tickets shall be limited to the replacement of the defective Ticket with another un-played Ticket or reimbursement of the holder at the retail sale price of the Ticket.
3. All winners, Tickets, and transactions are subject to the Lottery rules and regulations and state law.
4. If the Millionaire for Life Game is no longer offered by a Lottery, state law will govern the process by which the Lottery will use any amounts it may have in a Prize reserve account.
5. Except as herein provided, all rules and regulations of the Lottery shall govern the operation of the Millionaire for Life Game. All determinations of Winning Tickets shall be made by the Director of that Lottery, whose judgment shall be final.

Section 7.0 – Ticket Responsibility

Prize Claims. Prize claim procedures shall be governed by the rules of the Selling lottery. The MUSL and the Selling Lotteries shall not be responsible for prizes that are not claimed following the proper procedures as determined by the selling lottery.

Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen tickets.

Ticketless Transactions. A Ticketless Transaction Play is only valid when registered with the lottery in accordance with lottery rules, these Rules and the MUSL Rules. The person or, if permitted by the lottery rules, the persons registering the Play shall be the owner of the Ticketless Transaction Play. A receipt for a Ticketless Transaction has no value and is not evidence of a Play.

The MUSL and Participating Lotteries shall not be responsible to a prize claimant for Plays redeemed in error by a selling agent, sales agent or retailer.

Winners are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Millionaire for Life drawings. MUSL and the Participating Lotteries are not responsible for winning numbers reported in error

Federal and state tax withholding shall be determined by the Lottery in the State in which the Play was purchased.

Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the Drawing date on the ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or drawings.

1. All prizes including the Grand Prize must be claimed as directed within 366 calendar days of the drawing in which the prize was won. For purposes of determining the claim period, the first (draw) day shall be excluded, and the last day included.
2. If the Grand Prize goes Unclaimed, all funds collected by the Game Administrator to pay a Grand Prize shall be returned to the Selling Lotteries in proportion to sales from each Selling Lottery. An unclaimed Grand Prize is not considered unclaimed property.

Section 8.0 – Ineligible Players

Plays shall not be purchased, and a Prize won by any Play either in whole or in part, shall not be paid to any of the following persons:

1. A Selling Lottery employee, officer, director, board member or commissioner; and,
2. Employees of a Selling Lottery’s Central gaming system vendor(s), as each Selling Lottery may designate; and,
3. An employee of the Multi-State Lottery Association; and,
4. Other persons as each Selling Lottery may designate; and,
5. Any person residing in the same household of an individual described in subsections (i), (ii), (iii) or (iv); and,
6. Persons designated as ineligible to play the Millionaire for Life Game in any Selling Lottery jurisdiction shall be also ineligible to play the Millionaire for Life Game in all other Selling Lottery jurisdictions.

A ticket may not be sold to, or purchased by, individuals who have not attained 18 years of age.

A ticket or share may not be purchased by, and a prize may not be paid to any of the persons set forth in Title 8 M.R.S.A. Chapter 14-A Section 381.

Section 9.0 – Applicable Law

In purchasing a Play, or attempting to claim a Prize, Purchasers and Prize Claimants agree to comply with and abide by all applicable laws, rules, regulations, procedures, and decisions of the Selling Lottery where the Play was purchased, and by directives and determinations of the Director of that Selling Lottery.

A Prize Claimant agrees, as its sole and exclusive remedy that Claims arising out of a Play can only be pursued against the Selling Lottery that issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Play was purchased and only against the Selling Lottery that issued the Play. No claim shall be made against any other Selling Lottery or against the Game Administrator.

Nothing in these Rules shall be construed as a waiver of any defense or claim the Selling Lottery which issued the Play, any other Selling Lottery, or the Game Administrator may have in any litigation, including in the event a Player or Prize Claimant pursues litigation against the Selling Lottery, any other Selling Lottery or the Game Administrator, or their respective officers, directors, or employees.

All decisions made by a Selling Lottery, including the declaration of Prizes and the payment thereof and the interpretation of the Millionaire for Life Game rules shall be final and binding on all Play Purchasers and on every person making a Prize claim in respect thereof in the jurisdiction where the Play was issued.

Unless the laws, rules, regulations, procedures, and decisions of the Lottery which issued the Play provide otherwise, no Prize shall be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Selling Lottery; any such Prize claimed but unpaid shall constitute an Unclaimed Prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Selling Lottery.

Section 10.0 – Lottery Retail Agents

A Lottery Retail Agent selling Millionaire for Life tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, and procedures and decisions of the Lottery as well as with all applicable Millionaire for Life, MUSL rules, regulations and requirements.

Each Lottery Retail Agent shall receive a commission of five percent (5%) of gross receipts for Millionaire for Life tickets sold by that Lottery Retail Agent.

A bonus of $75,000 will be paid to the Lottery Retail Agent for any winning Grand Prize ticket sold by that Lottery Retail Agent.

A bonus of $25,000 will be paid to the Lottery Retail Agent for any single Match 5 + 0 winning ticket sold by that Lottery Retail Agent.

Section 11.0 – Disputes

In the event a dispute between the Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning ticket, and if the ticket prize is not paid, the Lottery may, solely at its option and in its discretion, reimburse the Game Ticket bearer the purchase price of the Ticket. This shall be the Game Ticket bearer’s sole and exclusive remedy.

Section 12.0 – Promotions and Advertising

No Selling Lottery may offer, or state that its jurisdiction offers better odds than another jurisdiction selling the Game, or a Grand Prize estimate that is different than the one provided by MUSL.

Selling Lotteries that offer the Millionaire for Life Game Plays as part of an authorized discount, promotion, or rebate shall contribute the full amount assessed for a Play sold at the uniform price to the Grand Prize Pool. Selling Lotteries members shall be advised of any promotions, discounts, and/or rebates that last more than ninety (90) days.

Section 13.0 - Winner Disclosure. The identity of a person awarded a prize of $100,000 or more and the identity of a person who is a participant in the Address Confidentiality Program under Title 5, section 90-B awarded a prize of any amount are confidential unless the person awarded such a prize provides written authorization to the bureau allowing the disclosure of that person's identity.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374
• STATUTORY AUTHORITY: Section 14.0 – Effective Date
• STATUTORY AUTHORITY: 14.1 These rules shall become effective five (5) days from filing with the office of the Secretary of State.
• STATUTORY AUTHORITY: Prizes are subject to Prize Liability Limitations set forth in the Game Rules. Prizes may vary based on the number of winning Plays as provided for in these Game Rules.
• STATUTORY AUTHORITY: 8 M.R.S.A. §374
• APAO ACCESSIBILITY CHECK: February 12, 2026 (no issues detected)
• EFFECTIVE DATE (NEW): February 24, 2026 – filing 2026-045

Chapter 70 World Poker Tour Game Rules

Code Me. R. 18-553 Ch. 70 World Poker Tour Game Rules {#sec-18-553-ch.-70 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 70}

PART I – World Poker Tour Game Rules

Section 1.0 – Definitions

1.1 “Agent” or “Lottery Retailer” means a person or entity licensed by the Lottery to sell lottery tickets.

1.2 “ALL IN” means an optional add-on feature of the Game where, for an additional one dollar ($1.00) per wager, a Player can win an additional prize for forming a Royal Flush, Straight Flush, Four of a Kind, or Flush winning Instant Hand, as described in Section 4.3 of these rules.

1.3 “Automated Draw Machine” or “ADM” means the method of conducting the drawing for the winning numbers.

1.4 “BABLO” means Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.

1.5 “Commission” means the State Liquor and Lottery Commission as established in 5 MRSA section 283-A.

1.6 “Claimant” or “Winner” means any natural person or legal entity submitting a winning Game Ticket within the required prize claim period.

1.7 “Director” means the Director of BABLO appointed by the Commissioner of the Department of Administrative and Financial Services.

1.8 “Drawing” means the formal process of selecting winning Drawing Cards that conclusively determine the number of winning tickets for each prize level of the Game’s Drawing component.

1.9 “Easy Pick” or “Computer Pick” means the random selection of cards by the computer system resulting in a Wager accepted by the Lottery’s gaming system.

1.10 “Exchange Ticket” means the replacement ticket generated after an instant winning ticket has been cashed prior to the drawing date on the original ticket.

1.11 “Expired Unclaimed Prizes” means the value of prizes which remain unclaimed after the prize claim period expires.

1.12 “Game Ticket(s)” or “Ticket(s)” means an acceptable evidence of Game Play which represents a wager accepted by the Gaming System meeting the specifications defined in these rules.

1.13 “Hand” means five (5) numbers randomly selected from one (1) through fifty-two (52) represented as playing cards printed on a game ticket.

1.14 “Instant Win” means a Hand that constitutes a Winning Instant Hand, as described in Section 4.3 of these rules.

1.15 “Lottery” or “the Lottery” means BABLO.

1.16 “Draw Lottery Game” or “Draw Game” means a lottery game for which wagers are accepted by the Gaming System

1.17 “Gaming System” means the computer system used to issue and validate Game Tickets.

1.18 “Play” “Bet” or “Wager” means the cards that appear on a Game Ticket as a board or panel, and are played by a Player in the Game.

1.19 “Player” or “Purchaser” means a natural person(s) or legal entity that purchases Game Tickets in accordance with these rules.

1.20 “ Prize Fund” or “Prize Fund Percentage” means the portion of the Game’s sales set aside for the payment of prizes.

1.21 “Progressive Jackpot” means the variable amount used as the basis for determining the prize amounts for the Royal Flush, and Straight Flush winning Hands when the Game’s ALL IN feature is purchased as described in Section 4.3 of these rules.

1.22 “Rank” means the value of an individual card, consisting of the following thirteen (13) ranks, from low to high: 2, 3, 4, 5, 6, 7, 8, 9, 10, Jack, Queen, King and Ace.

1.23 “Set Prize” means a pre-determined prize payout which is paid in a single cash payment.

1.24 “Split Prize” means a pre-determined set prize payout that is divided equally among the number of winning Game Tickets of the prize level. Split prizes shall only apply to the Draw Game’s Top Prize.

1.25 “Standard Deck of Playing Cards” means fifty-two (52) cards in total, consisting of four (4) Suits with each Suit having thirteen (13) Rank cards. The “Cards” comprising the Standard Deck of Player Cards are as follows:

Suit Cards

♦

Diamonds

2♦

Two of Diamonds 2D

3♦

Three of Diamonds

3D

4♦

Four of Diamonds

4D

5♦

Five of Diamonds

5D

6♦

Six of Diamonds

6D

7♦

Seven of Diamonds 7D

8♦

Eight of Diamonds

8D

9♦

Nine of Diamonds

9D

10♦

Ten of Diamonds

10D

J♦

Jack of Diamonds

JD

Q♦

Queen of Diamonds

QD

K♦

King of Diamonds

KD

A♦

Ace of Diamonds

AD

♠

Spades

2♠

Two of Spades

2S

3♠

Three of Spades

3S

4♠

Four of Spades

4S

5♠

Five of Spades

5S

6♠

Six of Spades

6S

7♠

Seven of Spades

7S

8♠

Eight of Spades

8S

9♠

Nine of Spades

9S

10♠

Ten of Spades

10S

J♠

Jack of Spades

JS

Q♠

Queen of Spades

QS

K♠

King of Spades

KS

A♠

Ace of Spades

AS

♥

Hearts

2♥

Two of Hearts

2H

3♥

Three of Hearts

3H

4♥

Four of Hearts

4H

5♥

Five of Hearts

5H

6♥

Six of Hearts

6H

7♥

Seven of Hearts

7H

8♥

Eight of Hearts

8H

9♥

Nine of Hearts

9H

10♥

Ten of Hearts

10H

J♥

Jack of Hearts

JH

Q♥

Queen of Hearts

QH

K♥

King of Hearts

KH

A♥

Ace of Hearts

AH

♣

Clubs

2♣

Two of Clubs

2C

3♣

Three of Clubs

3C

4♣

Four of Clubs

4C

5♣

Five of Clubs

5C

6♣

Six of Clubs

6C

7♣

Seven of Clubs

7C

8♣

Eight of Clubs

8C

9♣

Nine of Clubs

9C

10♣

Ten of Clubs

10C

J♣

Jack of Clubs

JC

Q♣

Queen of Clubs

QC

K♣

King of Clubs

KC

A♣

Ace of Clubs

AC

1.26 “Suit” means either the symbol, word or letter corresponding to the suit in a standard deck of playing cards as follows: ♦ (diamonds or “D”), ♠ (spades or “S”), ♥ (hearts or “H”) or ♣ (clubs or “C”).

1.27 “Terminal” means a device including, but not limited to Player Activated Terminals (PATs), Self-Service Terminals (SSTs) and Ticket Vending Machines (TVMs), authorized to function in an interactive mode with the Gaming System for the purpose of issuing and validating lottery transactions.

1.28 “Ticketless Transaction” means a play sold through subscription, internet or non-standard terminals.

1.29 “Top Prize” or “Grand Prize” means the Game’s first prize awarded in the Game’s Drawing component when all five (5) of the Cards in a Hand match all five (5) of the Winning Drawing Cards.

1.30 “Winning Drawing Cards” means the five (5) cards from a Standard deck of Playing Cards that are randomly selected for the Game’s drawing component and used to determine the winning plays contained on a Game Ticket for that component of the Game.

1.31 “Winning Drawing Hand” means, in the Game’s Drawing component, when three (3), four (4) or five (5) of the cards in a Hand match three (3), four (4) or five (5) of the Winning Cards drawn.

1.32 “Winning Instant Hand” means, in the Game’s Instant Win component, a Hand that has a combination of cards that form a Winning Instant Hand, identified in the “Instant Win” Table.

PART II – Drawing Procedures

Drawings shall take place daily Sunday through Saturday at a time selected by the Commission. The Lottery shall establish the drawing procedures for the Game Drawings, including a drawing problem resolution mechanism. All Drawings shall be conducted using an Automated Drawing Machine. Any equipment used in a Drawing shall be inspected by an independent testing laboratory or other qualified entity.

PART III – Game Description and Characteristics

3.0 Game Designation. For purposes of identification, the Game shall have a designated game number in the Gaming System.

3.1 Game Design. The Game is a five of fifty-two (5 of 52) matrix game. Each Game Ticket features five (5) cards, randomly selected by the ADM. Each Ticket can win as follows:

3.1.1 Instant Win Component. When the Hand printed on the Game Ticket contains a pair of jacks or better as described in section 4.3 of these rules for the instant win component.

3.1.2 Drawing Component. When three (3), four (4) or five (5) of the cards in the Hand match the Winning Drawing Cards for that Drawing.

3.1.3 ALL IN component. If purchased, when the Hand printed on the Game Ticket contains one of the top five instant win prize tiers.

3.2 Game Purchases. Game Tickets or ticketless transactions must be purchased from a Terminal operated by a licensed lottery retailer, a Player Activated Terminal (if available) by using a touch screen, a lottery subscription system (if available), or other electronic means as approved by the Lottery.

3.3 Ticket Format. Game Tickets shall include, but not be limited to, the Hand, Game logo or Game name, ticket cost, terminal number, barcode, serial number and drawing date. Game Tickets may also include the selling date, time stamp and any information required by the Lottery’s state laws pertaining to the validation of Game Tickets.

3.4 Ticket Price. Each Game Ticket shall be sold at retail at the price established by the Commission.

3.5 Play Restrictions. Game Tickets may not be sold to or purchased by minors under the age of 18 years or any of the persons set forth in 8 M.R.S.A. Section 381.

3.6 Ticket Cancellations Prohibited. A Game Ticket may not be cancelled or voided by returning the Game Ticket to the Retailer or to the Lottery. A Game Ticket accepted by the Retailer as a returned ticket and that cannot be resold shall be deemed as owned by the bearer thereof. This prohibition also applies to a Game Ticket that may be printed in error by the Retailer. No Game Ticket, or physical portion thereof, which may be used to claim a prize, shall be returned to Lottery for credit.

3.7 Game Sell-Out Prohibited. A Lottery Retailer shall not directly and knowingly sell a Game Ticket or combination of Game Tickets to any natural person or legal entity that would guarantee such Purchaser a prize win.

3.8 Exchange Ticket. A Game Ticket containing an Instant Win Hand may be validated prior to the Draw Break of the Drawing stated on that Game Ticket. The Gaming System will generate an Exchange Ticket to replace a Game Ticket that was validated before the stated Draw Break. An exchange Ticket shall contain the exact Hand and Drawing date that appear on the validated Game Ticket. Exchange Tickets are not eligible for instant win prizes.

3.9 Claims. A Game Ticket, subject to the validation requirements, shall be the only proof of a Game Play and the submission of a winning Game Ticket to the Lottery or Lottery Retailer shall be the sole method of claiming a prize or prizes. Under no circumstances will a claim be paid for a Top Prize or a second prize without a winning Game Ticket. Lost or missing Game Tickets may not be honored or processed for payment or replacement.

3.10 Limited to Highest Prize Won. In connection with the winning numbers drawn, the holder of a winning Game Ticket may win only one (1) prize per play and shall be entitled only to the prize won by those numbers in the highest matching prize category.

3.11 Prize Claim Period. All prizes including the top prize must be claimed as directed within 366 calendar days of the drawing in which the prize was won. For purposes of determining the claim period, the first (draw) day shall be excluded, and the last day included. In the event that the last day falls on a Saturday, Sunday or legal Holiday, the time to claim shall be extended to close of business on the next day thereafter when the Lottery office is open for business. Any prize not claimed within the specified period shall be forfeited.

3.12 Player Responsibility. It shall be the Player’s sole responsibility to verify the accuracy of the Game Play (or Plays) and the other data printed on the Game Ticket. The placing of wagers is done at the Player’s own risk through the Lottery Retailer.

3.13 Prize Payments. The Lottery may not pay prizes that are less than or more than the prize amounts established in accordance with these rules. Lottery Retailers shall only pay the prize amounts the Lottery establishes. All Game prizes will be paid in a lump sum upon completion of validation procedures.

3.14 Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the drawing date on the Game Ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or drawings.

3.15 Ticket Validation Requirements

3.15.1 Specific Requirements for Validation of Tickets. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied:

3.15.1.1 The ticket or ticketless transaction must have been issued by the Lottery through a licensed agent, via a terminal or other means as authorized by the Lottery, The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner. Ticketless transactions must be properly registered in the Lottery Gaming System and verified by the Lottery.

3.15.1.2 The ticket date must have been recorded in the Lottery's central computer system at least one (1) minute prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least one (1) minute prior to the drawing (regardless of when the drawing is held) is void.

3.15.1.3 The information appearing on the ticket must correspond precisely with the Lottery's computer record.

3.15.1.4 The ticket validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records.

3.15.1.5 The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective.

3.15.1.6 All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid.

3.15.1.7 The ticket must be intact, fully legible, complete, and correspond to the data on file at the Lottery in every respect.

3.15.1.8 The ticket must pass all other security criteria determined by the BABLO.

3.15.1.9 The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof.

3.15.1.10 An apparent winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased.

3.15.1.11 In the event that a ticket fails to pass all the criteria set forth in Section 3.15 of these rules, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the director shall be final and binding. If the director determines that the ticket is not eligible to receive a prize, then the director may, at the director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

PART IV – Prize Liability Limits, Prize Payouts and Prize Levels

The following paragraphs and chart define prize payouts, prize levels and pool percentages and chances of winning per prize level.

4.1 Entitlement to Prizes by Winners. The holder of a winning Game Ticket shall be entitled only to the prize won by matching the winning numbers in the highest matching prize category.

4.2 Payment of Prizes. All winning Game Tickets, including the Top Prize and second prize, shall be paid in accordance with these rules and state laws. The Lottery shall withhold taxes and other required withholdings in accordance with applicable federal and state laws. To be a valid Game Ticket and eligible to receive a prize, a winning Game Ticket shall satisfy all the requirements established for the validation of winning Game Tickets sold through the Lottery’s Gaming System. The Lottery shall not be responsible for Game Tickets which are altered in any manner.

4.3 Statistical Information. The following table details the Game’s statistical information:

Odds of Winning, Prize Payouts and Prize Funding as a Percentage of Sales

Instant Win Component

Prize Level

Matches

Poker Hand

Prize

Odds of Winning 1/

% Sales

1

Royal Flush

$5000

649,740.00

0.38%

2

Straight Flush

$500

72,193.33

0.35%

3

Four of a Kind

$150

4,165.00

1.80%

4

Full House

$75

694.17

5.40%

5

Flush

$50

508.80

4.91%

6

Straight

$20

254.80

3.92%

7

3 of a Kind

$10

47.33

10.56%

8

2 Pair

$5

21.04

11.88%

9

Pair of J, Q, K, A

$3

7.69

19.50%

Total Payout

58.7%

Average Chance of Winning: 1 in 4.8

Progressive jackpot minimum is $10,000

ALL IN Component

Prize Level

Poker Hand

Odds of

Winning 1/

Prize

% Sales

1

Royal Flush

649,740.00

$5,000 + 100% of Progressive Jackpot

14.10%

2

Straight Flush

72,193.33

$500 + 10% of Progressive Jackpot

11.60%

3

Four of a Kind

4,165.00

$150 + $150

3.60%

4

Full House

694.17

$75 + $75

10.80%

5

Flush

508.80

$50 + $50

9.83%

Total Payout

49.93%

Draw Component

Prize Level

Matches

Odds of Winning 1/

Prize

% Sales

1

Match 5 of 5

2,598,960.00

$100,000*

1.92%

2

Match 4 of 5

11,059.40

$500

2.26%

3

Match 3 of 5

240.42

$20

4.16%

Total Payout

8.3%

Average Chance of Winning: 1 in 235.3

***** The Prize amounts may be split in equal shares if there are multiple Top Prize Winners in the draw component. A share of the Top Prize is determined by dividing the Top Prize amount by the number of Match 5 winners. Split prizes may be lower than the published prize amounts.

PART V – Disputes

In the event a dispute between the Lottery and a Game Ticket bearer occurs as to whether the Game Ticket is a winning ticket, and if the ticket prize is not paid, the Lottery may, solely at its option and in its discretion, reimburse the Game Ticket bearer the purchase price of the Ticket. This shall be the Game Ticket bearer’s sole and exclusive remedy.

PART VI – Applicable Law

6.0 In purchasing a Game Ticket, the following provisions apply:

6.1 The Purchaser agrees to comply with and abide by laws of Maine, any rules established for the conduct of the Game and any final decisions by the Lottery.

6.2 Decisions made by the Director or the Commission, including the declaration of prizes, the payment thereof, and the interpretation of these rules, shall be final and binding on all Purchasers and on every person making a claim in respect thereof.

PART VII – Lottery Retailer

A Lottery Retailer selling World Poker Tour tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, generally and for the Game, and procedures and decisions of the Lottery.

7.1 Each Lottery Retailer shall receive a commission of five percent (5%) of gross receipts for World Poker Tour tickets sold by that Lottery Retailer.

7.2 A bonus of one percent (1%) will be paid to the Lottery Retailer for any winning Top Prize ticket sold in the Draw Game component.

7.3 A bonus of one percent (1%) will be paid to the Lottery Retailer for any winning Top Prize tier ticket sold in the Instant Win component in the Game.

PART VIII – Effective Date

These rules shall become effective February 15, 2017.

History

• STATUTORY AUTHORITY: 8 M.R.S. §§ 374, 372 sub-§2
• EFFECTIVE DATE: February 15, 2017 – filing 2017-021
• ACCESSIBILITY CHECK: July 7, 2025

Chapter 80 Lotto America Game Rules

Code Me. R. 18-553 Ch. 80 Lotto America® Game Rules {#sec-18-553-ch.-80 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 80}

Part I – Administration

Section 1.0

These rules establish the procedures and requirements for operating and playing Lotto America, a lotto game run by the Multi-State Lottery Association (hereinafter referred to as “MUSL”), of which the Bureau of Alcoholic Beverages and Lottery Operations (hereinafter referred to as “BABLO”) is a member. Generally, the Lotto America Game shall be operated in accordance with any agreement between the State of Maine and MUSL, the Constitution, the Bylaws of the MUSL, the Administrative Rules of MUSL and applicable Maine law.

Part II – Lotto America Game Rules

Section 2.0 – Definitions

The following definitions apply to all Parts of these Rules unless the context requires a different meaning or is otherwise inconsistent with the intention of the rules adopted by the Product Group. Capitalized terms used but not defined in these rules shall have the meanings ascribed to them in the MUSL Agreement.

1. “Advertised Grand Prize” means the estimated annuitized Grand Prize amount as determined by the MUSL Central Office by use of the MUSL Annuity Factor and communicated through the Selling Lotteries prior to the Grand Prize drawing. The “Advertised Grand Prize” is not a guaranteed prize amount and the actual Grand Prize amount may vary from the advertised amount, except in circumstances where there is a guaranteed Grand Prize amount as described in Section 6.1 of these Rules.
2. “Agent”, “retailer” or “lottery retail agent” means a person or entity authorized by a Selling Lottery to sell lottery Plays.
3. “All Star Bonus” means the All Star Bonus Multiplier Promotion described in Part III of these Rules.
4. “All Star Bonus Multiplier Plays” means Plays purchases as part of the All Star Bonus Multiplier Promotion described in Part III of these Rules.
5. “BABLO” means Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.
6. “Computer Gaming System” means a specialized computer system designed for use in Lottery gaming transactions.
7. “Computer Pick” means the random selection of indicia by the retailer computer that appears on a ticket or ticketless transaction and are played by a player in the game.
8. “Draw Lottery Game”, or “Draw Game” means a lottery game wherein a player selects numbers out of a larger predetermined set or sets of numbers.
9. “Drawing” refers collectively to the formal draw event for randomly selecting the winning indicia that determine the number of winners for each prize level of the Lotto America game. A Lotto America drawing shall determine the winning indicia for the Lotto America game and the All Star Bonus Multiplier.
10. “Executive Director” means the Director of BABLO appointed by the Commissioner of the Department of Administrative and Financial Services.
11. “Game ticket” or “ticket” means an acceptable evidence of Play, which is a ticket produced in a manner that meets the specifications defined in the rules of each Selling Lottery and Section 7.0 of these rules (Play Validation) and is a physical representation of the Play or Plays sold to the player or is a properly and validly registered ticketless transaction Play.
12. “Grand Prize” shall refer to the top prize in the Lotto America game.
13. “Incomplete Transaction Plays” means a Play that occurs when a Retailer begins a Play transaction as requested by a Player, and the Play is registered on the CGS, but the transaction is terminated prior to transferring Play confirmation to the Player.
14. “Licensee Lottery” means a state lottery or lottery of a governmental unit, political subdivision or entity thereof that is not a Party Lottery but has agreed to comply with all applicable MUSL and Product Group requirements and has been authorized by the MUSL and by the Lotto America Product Group to sell the Lotto America game.
15. “Lotto America Play” shall refer to Plays purchased as part of the Lotto America game, but shall not include All Star Bonus Multiplier Plays.
16. “Maine Lottery” or “the Lottery” means the Bureau of Alcoholic Beverages and Lottery Operations.
17. “Matrix Change” means the changing of the indicia selected by a Player from which the Winning Numbers are drawn.
18. “MUSL” means the Multi-State Lottery Association, a government-benefit association wholly owned and operated by the Party Lotteries.
19. “MUSL Annuity Factor” shall mean the annuity factor as determined by the MUSL central office through a method approved by the MUSL Finance and Audit Committee and which is used as described in these rules
20. “MUSL Board” means the governing body of the MUSL, which is comprised of the chief executive officer of each Party Lottery.
21. “MUSL Finance and Audit Committee” shall mean the committee of that name established by the MUSL Board.
22. “Pari-Mutuel” shall mean wagered funds that are pooled and then paid in equal shares to the winners of a prize as described in these Rules.
23. “Participating Lottery” or “Selling Lottery” means a state lottery or lottery of a political subdivision or entity that is authorized by the Product Group to participate in selling the Lotto America game.
24. “Party Lottery” or “Member Lottery” means a state lottery or lottery of a political subdivision or entity that has joined the MUSL and, in the context of these Product Group Rules that is authorized to sell the Lotto America game. Unless otherwise indicated, “Party Lottery” or “Member Lottery” does not include “Licensee Lotteries”.
25. “Play” or “Bet” means the six (6) numbers, the first five (5) from a field of fifty-two (52) numbers and the last one (1) from a field of ten (10) numbers, that appear on a ticket or communicated in a ticketless transaction as a single lettered selection either manually or by a Computer Pick and are to be played by a player in the Lotto America game. Each Play is played separately in determining matches to winning numbers and prize amounts.

As used in these Rules, unless otherwise specifically indicated, “Play” or “Bet” includes Lotto America Plays. “All Star Bonus Multiplier Plays” are separately described in Part III of these Rules.

1. “Play Slip” or “Bet Slip” means a physical or electronic means by which a player communicates their intended Play selection to the retailer as defined and approved by the Selling Lottery.
2. “Product Group” or “the Group” means a group of lotteries that has joined together to offer a product pursuant to the terms of the Multi-State Lottery Agreement and the Product Group’s own rules.
3. “Request for Play” is a sale that is not immediately recorded on the CGS but is instead recorded onto the CGS at some future time prior to a draw event.
4. “Returned Play” is a Play that has been generated and that is returned to the Selling Lottery.
5. “Set Prize”, also referred to as “low-tier prize”, means all other prizes, except the Grand Prize, and, except in instances outlined in these rules, will be equal to the prize amount established by the Product Group for the prize level.
6. “Stolen Plays” means a Play taken without permission or legal right without intending to return it.
7. “Terminal” means a device authorized by a Selling Lottery to function in an interactive mode with the lottery’s computer gaming system for the purpose of issuing lottery tickets and entering, receiving, and processing lottery transactions, including making purchases, validating tickets, and transmitting reports.
8. “Ticketless Transaction” shall include Plays sold through subscription, internet, or non-standard terminals.
9. “Winning numbers” means the indicia randomly selected during a Drawing event which shall be used to determine winning Plays for the Lotto America game contained on a game ticket or ticketless transaction.

Section 3.0 – Lotto America Game Description

1. Lotto America Game 1. Lotto America is a five (5) out of fifty-two (52) plus one (1) out of ten (10) numbers lottery game drawn on days as determined by the Lotto America Product Group as part of the Lotto America drawing event, which pays the Grand Prize, at the election of the player made in accordance with these rules or by a default election made in accordance with these rules, either on an annuitized Pari-Mutuel basis or as a single lump sum payment of the total funding held in the Grand Prize Pool (GPP) for the winning Drawing on a Pari-Mutuel basis. Except as provided in these rules, all other prizes are paid on a single payment basis. 2. Lotto America Winning Numbers applicable to determine Lotto America prizes will be determined in the Lotto America Drawing event. During the Drawing event, five (5) numbers shall be drawn from the first set of fifty-two (52) numbers, and one (1) number shall be drawn from the second set of ten (10) numbers, which shall constitute the Winning Numbers. 3. To play Lotto America, a player shall select (or computer pick) five (5) different numbers, from one (1) through fifty-two (52) and one (1) additional number from one (1) through ten (10). The additional number may be the same as one of the first five numbers selected by the player. 4. Lotto America Plays can be purchased for one dollar (U.S. $1.00), including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a Play. 5. Plays may be purchased from a Selling Lottery approved sales outlet in a manner as approved by the Selling Lottery and in accordance with MUSL Rules.
2. Claims. Unless otherwise permitted by a selling lottery, a ticket (subject to the validation requirements set forth in Section 7.0 of these Rules (Ticket Validation) or properly registered ticketless transaction shall be the only proof of a game Play or Plays and the submission of a winning ticket to the issuing Selling Lottery or its authorized agent shall be the sole method of claiming a prize or prizes. A Play Slip has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected. A terminal produced paper receipt has no pecuniary or prize value and shall not constitute evidence of play purchase or of numbers selected.
3. Cancellations: Request for Plays, Returned Plays, Incomplete Transaction Plays, Stolen Plays and Refunds for Game Cancellations.

3.3.1 Plays Non-Cancellable. In all instances, a Play recorded on the CGS (“Computer Gaming System”) may not be voided or cancelled by returning the ticket or ticketless transaction to the Retailer or to the Selling Lottery, including tickets that are misprinted, illegible, print in error, or for any reason not successfully transferred to an authorized selling entity or Player.

3.3.2 Request for Plays. A lottery may conduct future sales through a subscription or other system that does not immediately record such sales on the CGS. At the sole discretion of the lottery, authorized sales through a subscription or other system which have not been recorded on the CGS (instead recorded as “Request for Plays”), may be cancelled at any time prior to the time the Request for Play is recorded as a Play on the CGS. If a Request for Play is cancelled, it shall not be recorded on the CGS.

Per 3.3.1, once a Play is recorded on the CGS, it may not be cancelled at any time. Any cancelled “Request for Play” shall not be included in sales data reports to MUSL.

3.3.3 Returned Plays. To promote good Player or Retailer relations, a Selling Lottery, at its sole discretion, may develop a method of compensating Players or Retailers for Plays accepted by the Selling Lottery as returned to the Selling Lottery (“Returned Plays”) that are misprinted, illegible, printed in error, future Plays affected by changes in game features by the Selling Lottery, or due to game cancellations.

3.3.3.1 Returned Plays may not be cancelled or voided. Returned Plays are not reported to MUSL.

3.3.3.2 The Selling Lottery must remit its required prize pool contributions on all Plays accepted as returned Plays by the Selling Lottery.

3.3.3.3 Returned Plays may not be claimed for a prize by any person

or entity, including the Selling Lottery. Any prizes which would have been won on a Returned Play shall become an unclaimed prize at the end of the prize claim period.

3.3.4 Incomplete Transaction Plays. Incomplete Transaction Plays occur when a Retailer begins a Play transaction as requested by a Player, and the Play is registered on the CGS, but the transaction is terminated prior to transferring Play confirmation to the Player, there is no attempt to print the Play on a ticket, and the Player has not paid for the Play. Transaction terminations may be due to time sensitivities, communications loss or other issues as accepted by the Selling Lottery.

3.3.4.1 A Selling Lottery, at its sole discretion, may develop an approved method of managing Incomplete Transaction Plays, subject to these provisions.

3.3.4.2 Incomplete Transaction plays may not be cancelled or voided.

3.3.4.3 The Selling Lottery must remit its required prize pool contributions

on any Incomplete Transaction Plays. At its sole discretion, the Selling Lottery may develop a method of compensation Retailers for Incomplete Transaction Plays if Retailers are required to reimburse Selling Lotteries for prize pool contributions.

3.3.4.4 Incomplete Transaction Plays may not be claimed for a prize by any person or entity including the Retailer. Any prize which cannot be claimed as a prize under this Rule but would otherwise have been won on an Incomplete Transaction Play shall become an unclaimed prize at the end of the prize claim period of the drawing for which the Incomplete Transaction Play was recorded. Incomplete Transaction Plays are not reported to MUSL.

3.3.5 Stolen Plays. Plays reported as stolen from a Retailer that have been recovered cannot be accepted by the Selling Lottery as Returned Plays.

3.3.5.1 Selling lotteries may compensate a Retailer for the loss from theft if a Selling Lottery, solely at its discretion, determines to assume such a loss, but Stolen Plays cannot be cancelled or voided.

3.3.5.2 Ownership of Stolen Plays, and whether any party has a right to claim prizes on Stolen Plays, shall be determined by the rules of the Selling Lottery.

3.3.6 Game Cancellation. In the event of cancellation of the Game by the Product Group prior to the occurrence of all drawings for which Plays have been sold and recorded on the CGS, the Selling Lottery may provide a refund mechanism for such Plays to the Players, and the Selling Lottery shall not be required to remit its prize pool contributions for any such refunded Plays.

3.3.7 Selling Lotteries Prohibited from Claiming Prizes. Selling Lotteries and lottery officials are prohibited from claiming any prizes on Plays that are owned by the Selling Lottery through “Returned Plays” or otherwise acquired and held by the Selling Lottery. Any prizes that would otherwise be won on Plays owned or acquired by Selling Lotteries shall become unclaimed prizes at the end of the prize claim period.

1. Player Responsibility. It shall be the sole responsibility of the player to verify the accuracy of the game Play or Plays and other data printed on the ticket or contained in a ticketless transaction. The placing of Plays is done at the player's own risk through the agent that is acting on behalf of the player in entering the Play or Plays. The purchaser of a Play or Plays through a ticketless transaction has the sole responsibility for verifying the accuracy and condition of the data at the time of purchase.
2. Entry of Plays. Plays may only be entered manually using the lottery terminal keypad or touch screen or by means of a Play Slip as approved by the Selling Lottery or by such other means approved by the Selling Lottery. Retailers shall not permit the use of Play Slips that are not approved by the Selling Lottery. Retailers shall not permit any device to be physically or wirelessly connected to a lottery terminal to enter Plays, except as approved by the Selling Lottery.
3. Registration of Plays. Ticketless transaction Plays may be registered by the Selling Lottery at a lottery processing site that meets the requirements established by the Product Group and the MUSL Board.
4. Maximum Purchase. Except for a ticketless transaction Play purchase, when the Selling Lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change, the maximum number of consecutive Drawings on a single Play purchase is thirty-nine (39). The maximum number of consecutive drawings encompassed by a ticketless transaction Play purchase when the Selling Lottery has a process in place to allow players to make changes to their Play purchases in the event of a game change is one hundred four (104).
5. Matrix Changes. In the event of a matrix change, the Selling Lottery that issued the ticketless transaction will determine the option(s) available to ticketless transaction purchasers for that Selling Lottery for the balance of Plays remaining on their ticketless transactions effective as of the date of the matrix change.
6. Emergency Rule-making Authority. Pursuant to the Product Group’s fiduciary duties, it may become necessary for these rules to be modified by emergency rule making pursuant to 5 MRS §8054.

Section 4.0 – Lotto America Prize Pool

4.1 Lotto America Prize Pool. The prize pool for all prize categories shall consist of fifty percent (50%) of each Drawing period's Lotto America sales, inclusive of any specific statutorily mandated tax of a Selling Lottery to be included in the price of a Play, and including contributions to the prize pool accounts and prize reserve accounts but may be higher or lower based upon the number of winners at each prize level.

4.2 Lotto America Prize Pool Accounts and Prize Reserve Accounts. The Product Group shall set the contribution rates to the prize pools and prize reserve accounts established by this Rule.

4.2.1 The following prize reserve accounts for the Lotto America game are hereby established:

4.2.1.1 The Prize Reserve Account (PRA) which is used to guarantee the payment of valid, but unanticipated, Grand Prize claims that may result from a system error or other reason; to fund deficiencies in low-tier Lotto America Game prize payments (subject to the limitations of these rules); deficiencies in guaranteed Grand Prize funding if approved by the Group; and for other purposes as established in these Rules.

4.2.2 The following prize pool accounts for the Lotto America game are hereby established:

4.2.2.1 The Grand Prize Pool (GPP), which is used to fund the current Grand Prize;

4.2.2.2 The Set Prize Pool (SPP), which is used the fund the Set Prizes. The SPP shall hold the temporary balances that may result from having fewer than expected winners in the Set Prize (aka low-tier prize) categories. The Source of the SPP is the Party Lottery’s weekly prize contributions less actual Set Prize liability;

4.2.2.3 The Set-Aside Pool (SAP) which is used to fund the payment of the awarded minimum starting annuity Grand Prizes and the minimum annuity Grand Prize increase, if necessary (subject to the limitations in these rules), as may be set by the Product Group; and

4.2.2.4 The Grand Prize Carry Forward Pool (GPCFP), which is used to fund the starting minimum annuity Grand Prize, as may be set by the Product Group, if such funds are available, and if sales do not fund the Grand Prize.

4.2.3 The above prize reserve accounts, the GPCFP and the SAP may have maximum balance amounts or balance limiter triggers that are set by the Product Group.

The maximum balance amounts and balance limit triggers are subject to review by the MUSL Board Finance and Audit Committee. The Finance and Audit Committee shall have two weeks to state objections, if any, to the approved maximum balance amounts or balance limiter triggers. Approved maximum balance amounts or balance limiter triggers shall become effective no sooner than two weeks after notice is given to the Finance and Audit Committee and no objection is stated or sooner if the Committee affirmatively approves the maximum balance amounts or balance limiter triggers. The Group may appeal the Committee’s objections to the full Board. Group approved changes in the maximum balance amounts or balance limiter triggers set by the Product Group shall be effective only after the next Grand Prize win.

4.2.4 The maximum contribution rate to the GPP shall be 46.1982% of the prize pool (23.0991% of sales).

An amount of a Party Lottery’s sales shall be deducted from a Party Lottery’s GPP contribution and placed in trust in one or more prize pools and prize reserve accounts held by the Product Group (hereinafter the “prize pool and reserve deduction”) at any time that the SAP and Party Lottery’s share of the prize reserve accounts(s) is below the amounts designated by the Product Group.

An additional amount up to twenty percent (20%) of a Party Lottery’s sales shall be deducted from a Party Lottery’s GPP contribution and placed in trust in the GPCFP to be held by the Product Group at a time as determined by the Product Group.

4.2.5 The Product Group may determine to expend all or a portion of the funds in the Lotto America prize pools and the prize reserve accounts (except the GPP account and the GPCFP):

4.2.5.1 for the purpose of indemnifying the Party Lotteries in the payment of prizes to be made by the Selling Lotteries; and

4.2.5.2 for the payment of prizes or special prizes in the game, limited to prize pool and prize reserve contributions from lotteries participating in the special prize promotion, subject to the approval of the Board’s Finance & Audit Committee or that Committee’s failure to object after given two weeks’ notice of the planned action, which actions may be appealed to the full Board by the Product Group.

The GPCFP may only be expended to fund the starting minimum annuity Grand Prize.

4.2.6 The prize reserve shares of a Party Lottery may be adjusted with refunds to the Party Lottery from the prize reserve account(s) as may be needed to maintain the approved maximum balance and sales percentage shares of the Party Lotteries.

4.2.7 A Party Lottery may contribute to its sales percentage share of prize reserve accounts over time, but in the event of a draw down from the reserve account, a Party Lottery is responsible for its full sales percentage share of the account, whether or not it has been paid in full.

4.2.8 Any amount remaining in the Lotto America prize pool accounts or prize reserve accounts when the Product Group declares the end of the game shall be returned to the lotteries participating in the prize pools and prize reserve accounts after the end of all claim periods of all Selling Lotteries, carried forward to a replacement game, or otherwise expended in a manner at the election of the individual Members of the Product Group in accordance with jurisdiction statute.

4.3 Reserved.

4.4 Expected Lotto America Prize Payout Percentages. The Grand Prize payout shall be determined on a Pari-Mutuel basis. Except as otherwise provided for in these rules, all other prizes awarded shall be paid as single payment prizes. All prize payouts are made with the following expected prize payout percentages, which does not include any amount contributed to or held in prize reserves, although the prize payout percentages per draw may vary:

Prize Pool Percentage Sale Percentage

Number of Matches per Play Prize Payment Allocated to Prize Allocated in Prize

All five (5) of first set plus one (1) of second set Grand Prize Value 46.1983% ***** 23.0991%

All five (5) of first set and none of second set $20,000.00 1.3852% 0.6926%

Any four (4) of first set plus one (1) of second set $ 1,000.00 1.8084% 0.9042%

Any four (4) of first set and none of second set $ 100.00 1.6276% 0.8138%

Any three (3) of first set plus one (1) of second set $ 20.00 1.6637% 0.8319%

Any three (3) of first set and none of second set $ 5.00 3.7434% 1.8717%

Any two (2) of first set plus one (1) of second set $ 5.00 6.2390% 3.1195%

Any one (1) of first set plus one (1) of second set $ 2.00 13.7259% 6.8629%

None of first set plus one (1) of second set $ 2.00 23.6085% 11.8043%

• The maximum contribution rate may include contributions to reserves and pools as described in these rules.

4.4.1 The prize money allocated to the Grand Prize category shall be divided equally by the number of Lotto America Plays winning the Grand Prize as described in Sections 6.1.2 and 6.1.3 of these rules.

4.4.2 Lotto America Game Set Prize Pool (SPP) Carried Forward. The SPP (for single payment prizes of twenty thousand dollars ($20,000.00) or less) shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the Set Prizes awarded in the current draw.

4.4.3 Pari-Mutuel Lotto America Game Prize Determinations.

4.4.3.1 If the total of the Lotto America Set Prizes (as multiplied by the All Star Bonus Multiplier if applicable) awarded in a drawing exceeds the percentage of the prize pool allocated to the Lotto America Game Set Prizes, then the amount needed to fund the Lotto America Game Set Prizes, including All Star Bonus Multiplier prizes, awarded shall be drawn from the following sources, in the following order:

4.4.3.1.1 the amount available in the SPP and the All Star Bonus Multiplier Prize Pool; and, if needed,

4.4.3.1.2 an amount from the PRA, if available, not to exceed the balance of the PRA; and, if needed,

4.4.3.1.3 an amount from the SAP, if available, not to exceed the balance of the pool.

4.4.3.2 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes, including the All Star Bonus Multiplier prizes, then the highest Set Prize shall become a Pari-Mutuel prize. If the amount of the highest Set Prize, including All Star Bonus Multiplier Prizes, when paid on a Pari-Mutuel basis, drops to or below the next highest Set Prize and there are still not sufficient funds to pay the remaining set prizes awarded, including All Star Bonus Multiplier prizes, then the next highest Set Prize shall become a Pari-Mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become Pari-Mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning Plays in proportion to their respective prize percentages. Lotto America Game and All Star Bonus Multiplier prizes will be reduced by the same percentage.

Section 5.0 – Probability of Winning Lotto America Prizes

The following table sets forth the probability of winning and the probable distribution of winners in and among each prize category, based upon the total number of possible combinations in Lotto America Game.

Number of Probability Distribution Probable/Set

Number of Matches per Ticket Winners Probability Prize Amount

All five (5) of first set plus

one (1) of second set 1 1:25,989,600.0000 Grand Prize*

All five (5) of first set

and none of second set 9 1:2,887,733.3333 $20,000.00

Any four (4) of first set plus

one (1) of second set 235 1:110,594.0425 $ 1,000.00

Any four (4) of first set

and none of second set 2,115 1:12,288.2269 $ 100.00

Any three (3) of first set plus

one (1) of second set 10,810 1:2,404.2183 $ 20.00

Any three (3) of first set

and none of second set 97,290 1:267.1353 $ 5.00

Any two (2) of first set plus

one (1) of second set 162,150 1:160.2812 $ 5.00

Any one (1) of the first set plus

one (1) of the second set 891,825 1: 29.1420 $ 2.00

None of the first set plus

one (1) of the second set 1,533,939 1: 16.9430 $ 2.00

Overall 2,698,374 1:9.6315

***** The Grand Prize Amount does not include the PRA deductions or any other deductions, if any.

Section 6.0 – Lotto America Prize Payment

1. Grand Prizes.

6.1.1 Grand Prizes shall be paid, at the election of the player made no later than sixty (60) days after the player becomes entitled to the prize, with either a per-winner annuity or single lump sum payment (which may be referred to as the “cash option”). If the payment election is not made at the time of purchase and is not made by the player within sixty (60) days after the player becomes entitled to the prize, then the prize shall be paid as an annuity prize. An election for an annuity payment made by a player before ticket purchase or by system default or design may be changed to a cash option payment at the election of the player until the expiration of sixty (60) days after the player becomes entitled to the prize. The election to take the cash option payment may be made at the time of the prize claim or within sixty (60) days after the player becomes entitled to the prize. An election made after the winner becomes entitled to the prize is final and cannot be revoked, withdrawn, or otherwise changed.

6.1.2 Shares of the Grand Prize shall be determined by dividing the funds available in the GPP equally among all winning Plays of the Grand Prize. Winner(s) who elect a cash option payment shall be paid their share(s) in a single lump sum payment. The annuitized option prize shall be determined by multiplying a winner’s share of the Grand Prize pool by a process as approved by the MUSL Board. Neither MUSL nor the Selling Lotteries shall be responsible or liable for changes in the advertised or estimated annuity prize amount and the actual amount purchased after the prize payment method is actually known to MUSL.

6.1.3 In certain instances announced by the Product Group, the Grand Prize shall be a guaranteed amount and shall be determined pursuant to Section 6.5 of these rules.

6.1.4 If individual shares of the GPP funds held to fund an annuity is less than two-hundred fifty thousand dollars ($250,000.00), the Product Group, in its sole discretion, may elect to pay the winners their share of the funds held in the GPP.

6.1.5 All annuitized prizes shall be paid annually in thirty (30) payments with the initial payment being made in a single payment, to be followed by twenty-nine (29) payments funded by the annuity. Except as may be controlled by a Selling Lottery’s governing statute, all annuitized prizes shall be paid annually in thirty (30) graduated payments (increasing each year) by a rate as determined by the Product Group. Prize payments may be rounded down to the nearest one thousand dollars ($1,000.00). Annual payments after the initial payment shall be made by the lottery on the anniversary date or if such date falls on a non-business day, then the first business day following the anniversary date of the selection of the Grand Prize Winning Numbers.

6.1.6 Funds for the initial payment of an annuitized prize or the lump sum cash option prize payment shall be made available by MUSL for payment by the Selling Lottery no earlier than the fifteenth calendar day (or the next banking day if the fifteenth day is a holiday) following the drawing. If necessary, when the due date for the payment of a prize occurs before the receipt of funds in the prize pool trust sufficient to pay the prize, the transfer of funds for the payment of the full lump sum cash option amount may be delayed pending receipt of funds from the Selling Lotteries. A paying lottery may elect to make the initial payment from its own funds after validation, with notice to MUSL.

6.1.7 If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery’s game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on the MUSL or any other Party Lottery for payment of that prize.

6.1.8 In the event of the death of a lottery winner during the annuity payment period, unless prohibited by jurisdictional law, the MUSL Finance & Audit Committee, in its sole discretion excepting a discretionary review by the Product Group, upon the petition of the estate of the lottery winner (the "Estate") to the lottery of the jurisdiction in which the deceased lottery winner purchased the winning Play, and subject to federal, state, district, or territorial applicable laws, may accelerate the payment of all of the remaining lottery proceeds to the Estate. If such a determination is made, then securities and/or cash held to fund the deceased lottery winner's annuitized prize may be distributed to the Estate. The identification of the securities to fund the annuitized prize shall be at the sole discretion of the Finance & Audit Committee or the Product Group.

6.1.9 If a Party Lottery purchases or holds the prize payment annuity for a prize won in that jurisdiction, that Party Lottery’s game rules, and any prize payment agreement with the prize winner, shall indicate that the prize winner has no recourse on the MUSL or any other Party Lottery for payment of that prize.

1. Lotto America Prize Payments. All prizes (whether described as “cash” payment prizes or otherwise) shall be paid through the Selling Lottery that sold the winning Play(s) and at the discretion of the Selling Lottery that sold the winning Play(s) may be paid by cash, check or warrant or electronic transfer.

A Selling Lottery may begin paying low-tier prizes after receiving authorization to pay from the MUSL central office.

1. Lotto America Prizes Rounded. Annuitized payments of the Grand Prize or a share of the Grand Prize may be rounded to facilitate the purchase of an appropriate funding mechanism. Breakage on an annuitized Grand Prize win shall be added to the first payment to the winner or winners.

Prizes other than the Grand Prize, which, under these rules, may become single-payment, pari-mutuel prizes, may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the prize pool for the next drawing.

1. Lotto America Prize Rollover. If the Grand Prize is not won in a drawing, the prize money allocated for the Grand Prize shall roll over and be added to the GPP for the following drawing.
2. Funding of Guaranteed Lotto America Prizes.

6.5.1 The Product Group may offer guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount between drawings or make other changes in the allocation of prize money where the Product Group finds that it would be in the best interest of the game.

6.5.2 If a minimum Grand Prize amount or a minimum increase in the Grand Prize amount between drawings is offered by the Product Group, then the Grand Prize shares shall be determined as follows:

6.5.2.1 If there are multiple Grand Prize winners during a single drawing, each selecting the annuitized option prize, then a winner's share of the guaranteed annuitized Grand Prize shall be determined by dividing the guaranteed annuitized Grand Prize by the number of winning Plays;

6.5.2.2 If there are multiple Grand Prize winners during a single drawing and at least one (1) of the Grand Prize winners has elected the annuitized option prize, then the MUSL Annuity Factor shall be utilized to determine the cash pool. The cost of the annuitized prize(s) will be determined at the time the annuity is purchased through a process approved by the MUSL Board;

6.5.2.3 If no winner of the Grand Prize during a single drawing has elected the annuitized option prize, then the amount of cash in the GPP shall be an amount equal to the guaranteed annuitized amount divided by the MSUL Annuity Factor.

6.5.3 Minimum guaranteed prizes or increases may be waived by the Product Group if the alternate funding mechanism set out in Section 4.4.3 of these rules becomes necessary. Approval of the Group is required to change the guaranteed minimum Grand Prize amounts or minimum increases in the Grand Prize amount. Any reduction in the guaranteed minimum Grand Prize amount or reduction in the minimum increases to the Grand Prize amount shall not become effective until after a Grand Prize win following the action taken by the Group.

1. Limited to Highest Lotto America Prize Won. The holder of a winning Lotto America Play may win only one (1) prize per Lotto America Play in connection with the Winning Numbers drawn and shall be entitled only to the prize won by those numbers in the highest matching prize category. All liabilities for a Lotto America and All Star Bonus prize are discharged upon payment of a prize claim.
2. Lotto America Prize Claim Period. Prize claims shall be submitted within the period set by the Selling Lottery selling the Play. For Maine, all prize claims, including the Grand Prize shall be made within one (1) year after the drawing date.
3. Expired Unclaimed Prizes. Prizes which are unclaimed for a period of one (1) year after the drawing date on the ticket revert to the expired unclaimed prize pool to be distributed to players in the form of special promotions or drawings.

Section 7.0 – Play Validation

1. General Requirements for Validation. To be a valid Play and eligible to receive a prize, a Play’s ticket or ticketless transaction shall satisfy all the requirements established by a Party Lottery for validation of winning Plays sold through its computer gaming system and any other validation requirements adopted by the Product Group, the MUSL Board, and published as the Confidential MUSL Minimum Game Security Standards. The MUSL and the Party Lotteries shall not be responsible for tickets or ticketless transactions that are altered in any manner.
2. Specific Requirements for Validation of Tickets Sold in Maine 1. To be a valid ticket and eligible to receive a prize, all the following requirements must be satisfied: 1. The ticket must have been issued by the Lottery through a licensed agent, via a terminal, in an authorized manner. The ticket must be intact and must not be mutilated, altered, reconstructed, or tampered with in any manner. 2. The ticket date must have been recorded in the Lottery's computer gaming system at least sixty (60) minutes prior to the drawing; even if it appears that a bet is accepted (by virtue of a printed ticket), any bet placed other than at least sixty (60) minutes prior to the drawing (regardless of when the drawing is held) is void. 3. The information appearing on the ticket must correspond precisely with the party Lottery's computer gaming system record. 4. The ticket validation number must appear in its entirety, and correspond, using a computer validation file, to the winning game play or plays printed on the ticket. The ticket stock sequential number on the back of the ticket must correspond to the Lottery's inventory records. 5. The ticket must not be defectively printed, fuzzy, produced in error, counterfeit in whole or in part, altered, unreadable, reconstructed, tampered with in any manner, stolen, blank or partially blank, misregistered, or defective. 6. All information appearing on an apparent winning ticket must correspond to the Lottery's records of winning tickets, and another ticket with identical data shall not have been paid. 7. The ticket must be intact, fully legible, complete and not miscut, correspond to the data on file at the Lottery in every respect. 8. The ticket must pass all other security criteria determined by the Maine Lottery and MUSL. 9. The ticket must be validated in accordance with the provisions of these rules relating to the procedures for claiming prizes and for the payment thereof. 10. An apparent winning ticket shall be void unless the ticket paper stock roll which was in use at the time of the bet by, and validly issued to, the agent from whom the ticket was purchased. 11. Ticketless transaction Plays must meet the validation requirements set forth in this Section. 2. In the event that a ticket fails to pass all the criteria set forth in Section 7.2.1 of these rules, the ticket shall be deemed void and ineligible for any prize and shall not be paid. In the event of a dispute or other instance of doubt, the decision of the executive director shall be final and binding. If the executive director determines that the ticket is not eligible to receive a prize, then the executive director may, at the executive director's option, replace an invalid, defective or otherwise erroneous ticket with a ticket of equivalent sales price from any current lottery game. Replacement of the ticket shall be the bearer or claimant's sole and exclusive remedy.

Section 8.0 – Ticket Responsibility

1. Prize Claims. Prize claim procedures shall be governed by the rules of the Selling Lottery. The MUSL and the Selling Lotteries shall not be responsible for prizes that are not claimed following the proper procedures as determined by the Selling Lottery.
2. Reserved.
3. Stolen Tickets. The Product Group, the MUSL and the Party Lotteries shall not be responsible for lost or stolen Plays.
4. Ticketless Transactions. A receipt for a ticketless transaction play has no value and is not evidence of a Play. A ticketless transaction Play is valid when registered with the lottery in accordance with lottery rules and the person or, if permitted by the lottery rules, the persons registering the Play shall be the owner of the ticketless transaction Play.
5. Errors. 1. The MUSL and Party Lotteries shall not be responsible to a prize claimant for Plays redeemed in error by an agent, retailer or lottery retail agent. 2. Winners are determined by the numbers drawn and certified by the independent auditor responsible for auditing the Lotto America Drawings. MUSL and the Party Lotteries are not responsible for winning numbers reported in error.

Section 9.0 – Ineligible Players

9.1 A play or share for a MUSL game issued by the MUSL or any of its Party Lotteries shall not be purchased by, and a prize won by any Play or share shall not be paid to:

• 1. A MUSL employee, officer, or director; 2. A contractor or consultant under agreement with the MUSL to review the MUSL audit and security procedures; 3. An employee of an independent accounting firm under contract with MUSL to observe drawings or site operations and actually assigned to the MUSL account and all partners, shareholders, or owners in the local office of the firm; or 4. An immediate family member (parent, stepparent, child, stepchild, spouse, or sibling) of an individual described in this section and residing in the same household.

1. A ticket may not be sold to, or purchased by, individuals who have not attained 18 years of age. However, tickets s may be given as gifts to minors or any other individuals except as prohibited by Maine law.
2. A Play or share may not be purchased by and a prize may not be paid to any of the persons set forth in 8 M.R.S.A. Section 381.
3. Those persons designated by a Selling Lottery's law as ineligible to play its games shall also be ineligible to play the Lotto America game in that Selling Lottery's jurisdiction.

Section 10.0 —APPLICABLE LAW

In purchasing a Play, or attempting to claim a prize, purchasers and prize claimants agree to comply with and abide by all applicable Maine laws, rules promulgated, procedures, and decisions of the Selling Lottery where the Play was purchased, and by directives and determinations of the director of that Party Lottery.

A prize claimant agrees, as its sole and exclusive remedy that claims arising out of a Lotto America Play can only be pursued against the Selling Lottery which issued the Play. Litigation, if any, shall only be maintained within the jurisdiction in which the Lotto America Play was purchased and only against the Selling Lottery that issued the Play. No claim shall be made against any other Participating Lottery or against the MUSL

Nothing in these Rules shall be construed as a waiver of any defense or claim the Selling Lottery which issued the Play, any other Participating Lottery or MUSL may have in any litigation, including in the event a player or prize claimant pursues litigation against the Selling Lottery, any other Participating Lottery or MUSL, or their respective officers, directors or employees.

All decisions made by a Selling Lottery, including the declaration of prizes and the payment thereof and the interpretation of Lotto America Rules, shall be final and binding on all Play purchasers and on every person making a prize claim in respect thereof, but only in the jurisdiction where the Lotto America Play was issued.

Unless the laws, rules, regulations, procedures, and decisions of the Lottery which issued the Play provide otherwise, no prize shall be paid upon a Play purchased, claimed or sold in violation of these Rules or the laws, rules, regulations, procedures, and decisions of that Selling Lottery; any such prize claimed but unpaid shall constitute an unclaimed prize under these Rules and the laws, rules, regulations, procedures, and decisions of that Selling Lottery.

Part III – Special Game Rules: Lotto America All Star Bonus^®Multiplier Promotion

Section 11.0 – Promotion Description

The All Star Bonus^® Multiplier Option is a limited extension of the Lotto America Game and is conducted in accordance with the Lotto America Game Rules and other lottery rules applicable to the Lotto America Game, except as may be amended herein. The promotion will begin at a time announced by the Member Lottery and will continue until discontinued by the lottery. The Promotion will offer to the owners of a qualifying Play a chance to multiply the amount of any of the eight lump sum Set Prizes (the lump sum prizes normally paying $2.00 to $20,000.00) won in a drawing held during the Promotion. The Grand Prize is not a Set Prize and will not be multiplied.

Participating Lotteries may require purchase of the All Star Bonus Promotion when a player purchases a Lotto America Play.

Section 12.0 - Qualifying Play

A qualifying Play is any single Lotto America Game Play for which the player pays an extra dollar for the All Star Bonus Multiplier option play and that is recorded at the Member Lottery’s computer gaming system as a qualifying All Star Bonus Multiplier Play.

Section 13.0 – Prizes to be Multiplied

Except as provided in these rules, a qualifying Play which wins one of the Set Prizes will be multiplied by the number selected, either two, three, four or five (2, 3, 4, or 5), in a separate random All Star Bonus Multiplier drawing announced by the Product Group.

Section 14.0 – All Star Bonus Drawings

MUSL will conduct a separate random “All Star Bonus” drawing and announce the results. During each 2X-5X Multiplier drawing, a single number (2, 3, 4 or 5) shall be drawn. The Lotto America Game Group may modify the multiplier features for special promotions from time to time.

Section 15.0 – All Star Bonus Multiplier Prize Pool

15.1 All Star Bonus Multiplier Prize Pool.

15.1.1 The All Star Bonus Multiplier Prize Pool (MPP) is hereby created, and which is used to fund All Star Bonus Multiplier prizes. The MPP shall hold the temporary balances that may result from having fewer than expected winners in All Star Bonus Multiplier. The source of the MPP is the Party Lottery’s weekly prize contributions less actual All Star Bonus Multiplier Prize liability.

15.1.2 In total, fifty percent (50%) of each draw’s sales shall be collected for the payment of prizes:

15.1.2.1 The expected payout for all prize categories shall consist of up to forty-nine and five hundred ninety-eight thousandths percent (49.598%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket.

15.1.2.2 An additional four-hundred and two thousandths percent (0.402%) of each drawing period's sales, including any specific statutorily mandated tax of a Selling Lottery to be included in the price of a lottery ticket, may be collected and placed in trust in the MPP, for the purpose of paying All Star Bonus Multiplier prizes.

15.1.3 The prize payout percentage per draw may vary. The MPP shall be carried forward to subsequent draws if all or a portion of it is not needed to pay the set prizes awarded in the current draw and held in the MPP.

15.2 End of Game. Any amounts remaining in the MPP when the Product Group declares the end of this game shall be returned to the lotteries participating in the pool after the end of all claim periods of all Party Lotteries, carried forward to a replacement game, or otherwise expended in a manner as directed by the individual Members of the Product Group in accordance with jurisdiction law.

15.3 Expected Prize Payout. Except as provided in these rules, all prizes awarded shall be paid as lump sum set prizes. Instead of the Lotto America Game set prize amounts, qualifying All Star Bonus Multiplier Plays will pay the amounts shown:

Lotto America Prize Amount All Star Bonus Multiplier

Set Prize Amount 5X 4X 3X 2X

Match 5+0 $20,000.00$100,000.00 $80,000.00 $60,000.00 $40,000.00

Match 4+1 $1,000.00 $ 5,000.00 $ 4,000.00 $ 3,000.00 $ 2,000.00

Match 4+0 $ 100.00 $ 500.00 $ 400.00 $ 300.00 $ 200.00

Match 3+1 $ 20.00 $ 100.00 $ 80.00 $ 60.00 $ 40.00

Match 3+0 $ 5.00 $ 25.00 $ 20.00 $ 15.00 $ 10.00

Match 2+1 $ 5.00 $ 25.00 $ 20.00 $ 15.00 $ 10.00

Match 1+1 $ 2.00 $ 10.00 $ 8.00 $ 6.00 $ 4.00

Match 0+1 $ 2.00 $ 10.00 $ 8.00 $ 6.00 $ 4.00

In certain rare instances, the Lotto America Game set prize amount may be less than the amount shown. In such case, the eight (8) lowest Power Play prizes will be changed to an amount announced after the draw. For example, if the Match 4+1 Lotto America set prize amount of $1,000.00 becomes $500.00 under the rules of the Lotto America game and a 5x multiplier is selected, then an All Star Bonus player winning that prize amount would win $2,500.00.

15.4 Probability of Prize Increase. The following table sets forth the probability of the various All Star Bonus Multiplier numbers being drawn during a single 2X-5X Multiplier drawing. The Group may elect to run limited promotions that may modify the multiplier features.

All Star Bonus Multiplier Probability of Prize Chance of

Increase Occurrence

5X - Prize Won Times 5 3 in 32 9.3750%

4X - Prize Won Times 4 4 in 32 12.5000%

3X - Prize Won Times 3 10 in 32 31.2500%

2X - Prize Won Times 2 15 in 32 46.8750%

All Star Bonus Multiplier does not apply to the Grand Prize.

Section 16 – Limitations on Payment of All Star Bonus Prizes

16.1 Pari-Mutuel Prizes—All Prize Amounts.

16.1.1 If the total of the original Lotto America Game set prizes and the multiplied All Star Bonus Multiplier set prizes awarded in a drawing exceeds the percentage of the prize pools allocated to the set prizes and All Star Bonus Multiplier prizes, then the amount needed to fund the Set Prizes (including the All Star Bonus Multiplier prize amounts) awarded shall be drawn from the following sources, in the following order:

16.1.1.1 the amount available in the SPP allocated to the set prizes and the MPP, if any;

16.1.1.2 an amount from the PRA up to, if available, not to exceed the balance of the PRA; and

16.1.1.3 an amount from the SAP, if available, not to exceed the balance of that pool.

16.1.2 If, after these sources are depleted, there are not sufficient funds to pay the Set Prizes awarded (including All Star Bonus Multiplier prizes), then the highest Set Prize (including the All Star Bonus Multiplier prizes) shall become a Pari-Mutuel prize. If the amount of the highest Set Prize (including the All Star Bonus Multiplier Prizes) when paid on a pari-mutuel basis, drops to or below the next highest Set Prize (including the All Star Bonus Multiplier Prizes) and there are still not sufficient funds to pay the remaining Set Prizes awarded, then the next highest Set Prize (including the All Star Bonus Multiplier prize) shall become a Pari-Mutuel prize. This procedure shall continue down through all Set Prize levels, if necessary, until all Set Prize levels become Pari-Mutuel prize levels. In that instance, the money available from the funding sources listed in this rule shall be divided among the winning Plays in proportion to their respective prize percentages. Lotto America Game and All Star Bonus Multiplier prizes will be reduced by the same percentage

Section 17.0 Prize Payment

17.1 Prize Payments. All Star Bonus Multiplier prizes shall be paid in one lump sum through the Member Lottery that sold the winning Play(s). A Member Lottery may begin paying All Star Bonus Multiplier prizes after receiving authorization to pay from the MUSL central office.

17.2 Prizes Rounded. Prizes that, under these rules, may become Pari-Mutuel prizes may be rounded down so that prizes can be paid in multiples of whole dollars. Breakage resulting from rounding these prizes shall be carried forward to the MPP for the next drawing.

Part IV – Lottery Retail Agents

Section 18.0 – Lottery Retail Agents

18.1 A lottery retail agent selling Lotto America and Lotto America with Power Play tickets shall comply with all applicable Maine laws, administrative rules promulgated by the Lottery, and procedures and decisions of the Lottery as well as with all applicable MUSL rules, regulations and requirements.

18.2 Each lottery retail agent shall receive a commission of five percent (5%) of gross receipts for Lotto America and All Star Bonus tickets sold by that lottery retail agent.

18.3 A bonus of one (1) percent of the winning Grand Prize Play not to exceed $30,000 will be paid to the lottery retail agent for any winning Grand Prize Play sold by that lottery retail agent.

18.4 A bonus of one (1) percent will be paid to the lottery retail agent for any single Match 5 + 0 winning Play sold by that lottery retail agent.

Section 19.0 – Effective Date

These rules shall become effective for the Drawing beginning July 18, 2022.

History

• STATUTORY AUTHORITY: 8 M.R.S.A. §374
• EFFECTIVE DATE: November 15, 2017 – filing 2017-164
• AMENDED: July 18, 2022 – filing 2022-126
• ACCESSIBILITY CHECK: July 7, 2025

Chapter 101 Operation and Control of All Licensed Premises

Code Me. R. 18-553 Ch. 101 Operation and Control of All Licensed Premises {#sec-18-553-ch.-101 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 101}

(Note: this rule chapter was formerly 16-226 Ch. 1 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. All licenses are issued subject to the provisions of the State Laws and Federal Alcohol Administration laws, municipal ordinances and rules and regulations made pursuant thereto, and all municipal, State and Federal licenses and permits required by such laws, ordinances or rules and regulations must be kept in full force and effect by licensees during the entire effective license period of the liquor license.

A. All license applications shall include the complete and entire ownership in accordance with Title 28 A Section 651, 2A. All persons owning, and or operating with a financial interest in the operation shall be named as licensees, except bona fide employees.

B. An applicant for a liquor license that is a corporation or a limited liability company may submit a master supplementary questionnaire file as long as there has been no material change in the original information provided to the department, and the corporation or Limited Liability Company has two or more licensed facilities located within the state. The initial master file must contain all the information required by the department. An applicant for a liquor license renewal must file a notarized affidavit stating there are no changes to the information contained in the original master file. If changes have occurred, then the master file must be updated and submitted to replace the existing master file.

2. Licenses erroneously issued by the Bureau of Liquor Enforcement will be considered void and must be returned to the Bureau on demand.

3. Wherever reference is made in the following rules and regulations to acts or omissions forbidden on the part of the licensee, corporation or individual, it shall be held and construed to mean acts of such licensee, corporation or individual or their clerk, servant or agent. Whoever is found in charge of a licensed premise or making service or waiting on trade in such licensed premise shall be prima facie construed to be a clerk, servant and agent of the licensee.

4. Violation of any Commission rule and regulation, State law or municipal ordinance, occurring on a licensed premise after legal hours of sale of liquor or on days when sale of liquor is forbidden by law, shall be grounds for suspension or revocation of license.

5. No licensee shall have or permit on his licensed premises any gaming devices, sealed tickets, punch board or any mechanism which dispenses money or other valuable thing which is redeemable or exchangeable for money or other valuable thing, other than premises properly licensed. Free replays shall not be considered a thing of value.

A. All other types of machines or mechanisms designed for amusement or entertainment may be permitted on licensed premises. Pool tables may be used in designated areas as authorized by the Bureau. The licensee and the owner shall be required to furnish such additional information to the Bureau as the Bureau in its sole discretion deems necessary for proper supervision of such activity.

6. The use of any device or game of chance to aid directly in the sale or distribution of liquor is prohibited.

7. All premises licensed to sell liquor and adjoining premises used by the licensee in the operation of the business will be kept in a clean and sanitary condition at all times and will be licensed by the Department of Human Services or the Department of Agriculture.

A. All premises licensed to sell alcoholic beverages for on premise consumption shall have toilet facilities available to the public and will be equipped in such a manner to comply with Human Services Rules.

8. No licensee shall permit or allow visibly intoxicated persons to remain on the licensed premises. No licensee shall show effects of, nor allow any of his employees, agents or entertainers to consume or to show any effect of liquor while on duty or performing on the licensed premises.

9. (Repealed.)

10. No licensee shall possess or permit possession, sale or consumption of any liquor on the licensed premises other than that which is permitted and purchased by the licensee in accordance with the license or licenses granted for said premises.

11. No licensee shall, without written consent of the Bureau, permit liquor to be kept or stored upon any premise other than those licensed and under the control of the Bureau. The Bureau shall have access to any additional premises where empty containers are kept.

12. All applications submitted to the Bureau will be voided after 1 year unless a license has been issued. All application fees may be refunded, with the exception of the filing fee, when an application is voided.

13. No licensee, his agent or employee, shall allow in or upon his licensed premises, any improper conduct, disorder, illegality, disturbances, lewdness, immoral activities, or language, songs, entertainment, literature, pictures, raffle tickets or advertising material of indecent, profane or obscene nature, or cause to have printed or distributed any lewd, immoral, indecent, or obscene literature, pictures or advertising material of indecent, profane or obscene nature, except that premises properly licensed may permit raffle tickets.

14. (Repealed.)

15. No licensee in this State shall purchase malt liquor, table or sparkling or fortified wine, or low alcohol spirits from any person who has not been issued the proper wholesale license. A wholesale or retail licensee whose license has been revoked, surrendered, or otherwise terminated, may, on approval from the Bureau, sell his entire stock of malt liquor, table, sparkling, or fortified wine, or low alcohol spirits, to another licensee. Nothing in this rule will prohibit a licensee from making purchases from a State Liquor Store in accordance with his license privilege.

A. Any retail licensee whose license has been revoked, surrendered or otherwise terminated, may, on approval of the Bureau, sell his entire stock of spirits to another licensee.

B. No malt liquor, table, sparkling or fortified wine, or low alcohol spirit, may be returned by a retail licensee unless the product is defective. Products deemed to be defective include leakers, partially filled containers, soiled or missing labels, defective containers, and outdated or discontinued merchandise. No refund may be made for any returned item. A defective bottle or package must be replaced with a like bottle or package or a credit may be issued for future purchases.

16. No alteration or repair to licensed premises which changes the physical character of the premises as reported in the application for license shall be made unless the licensee has received prior permission from the Bureau.

17. No person employed by any wholesale liquor licensee shall be eligible for a liquor license.

18. Wholesale licensees are prohibited from using escrow accounts involving the sale of malt beverages and table wines to retail accounts except by written authorization from the Bureau.

A. Prepaid invoices are allowed.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

October 31, 1979

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

REPEALED AND REPLACED:

April 7, 2001

AMENDED:

March 9, 2013 – filing 2013-049

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 1 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 102 Premises Licensed for On-Premises Consumption Only

Code Me. R. 18-553 Ch. 102 Premises Licensed for on Premises Consumption Only {#sec-18-553-ch.-102 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 102}

(Note: this rule chapter was formerly 16-226 Ch. 2 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. No licensee shall permit consumption of liquor on licensed premises by minors or persons visibly intoxicated.

2. No licensee shall permit consumption of liquor on his licensed premises during period of any license suspension.

3. No person under 18 years of age shall be allowed to entertain, with or without compensation, in licensed premises while liquor is being served or consumed, except that in Class A restaurants, clubs, and hotel dining rooms persons 17 years of age who are members of a musical group may entertain. Any person under 17 years of age will be permitted to entertain provided his/her parent is present.

A. An on-premises licensee shall not allow the direct handling of liquor on the licensed premises by any person under the age of 15 years except that persons who are at least 15 years old may stock inventory or bus tables, but must not sell, serve or mix liquor and persons who are at least 14 years old may only bus tables.

4. All licenses and permits requiring local approval must be submitted to the Bureau within 60 days of the local approval date. Applications not submitted to the Bureau in a timely fashion will be returned to the licensed applicant for reapproval by the city, town or county.

5. (Repealed.)

6. Every on-premise licensee required to sell food shall maintain a food inventory of $2.00 per seat and shall keep on hand dishes and utensils to serve the maximum seating capacity. Utensils and dishware may be paper or plastic. Every on-premise licensee will keep separate records of all food purchased and sold, and separate records of liquor purchased and sold. Soft drinks may not be included as food sales.

A. All Class A restaurants must keep their kitchen open during all hours of operation for the service of full course meals. The kitchen must be staffed by a cook or other personnel in addition to wait staff personnel who provide alcoholic beverages.

B. Class A Lounges must offer food for sale during all times they are serving liquor. For purposes of this rule, the term "food" refers to cold or hot meals, including sandwiches, salads, and other forms of solid nourishment including, but not by way of limitation, hamburgers, cheeseburgers, hot dogs, pizzas, and other food items which customarily would appear on a well balanced menu. The term "food" specifically does not include prepackaged snack foods, such as popcorn, chips, or pretzels.

7. Except as provided by Title 28-A Section 1001, 3E, no club licensee shall sell liquor or permit it to be sold on the club premise during any function or activity other than strictly a club function or activity. No function or activity on the club premise shall be considered a club function when the club solicits attendance by the public.

8. No nonmember who enters any licensed club shall be considered to be entitled to the service of liquor unless he is accompanied at all times by the member who accompanied him on admission.

A. One single exception to Rule 2.8 is that clubs having the catering privilege may serve groups of nonmembers at prearranged gatherings. When tickets are available for such an event the sales of such tickets must be in advance and cannot be available for sale at the door.

9. Licensed clubs with catering privilege are limited to service of liquor and/or food to groups of nonmembers at functions for which arrangements have been made at least twenty-four hours before such function is to take place and time limits shall be set for service of liquor at all such functions.

A. A record shall be maintained by the catering club showing time the catering arrangements were made, the name of the persons or organizations making the arrangements and the approximate number of persons to be accommodated.

B. Licensed clubs with the catering privilege will be held responsible for the restrictions of groups accommodated and shall in no case allow service of liquor to persons not of the group registered with them. No liquor shall be sold if the club advertises or invites the public to attend. This does not prohibit the group from advertising their event, but tickets must be presold to the function and cannot be made available at the door.

10. When a license application for a hotel premise is made and there is not a single management of the sleeping rooms and dining rooms, both the lessee and lessor will join in applying for the license. Both lessee and lessor shall be held jointly and severally responsible as licensees.

11. All hotels required to sell food, including those licensed to sell only malt or wine, shall maintain dishware and utensils for their seating capacity and maintain a food inventory of at least $2.00 per seat.

12. All sales of spirituous or vinous liquor for consumption with or without food in rooms designated therefore shall be by the glass except that wines may be sold by the bottle for consumption by the glass, and further except that licensed hotels may sell liquor in the original container to bona fide registered guests to be delivered to their hotel room.

13. (Repealed.)

14. (Repealed.)

15. All on-premise licensees including golf clubs, bowling centers, indoor racket clubs, indoor ice skating clubs, shall maintain adequate facilities for the purpose of serving alcoholic beverages, consisting of tables and chairs in an area designated by the Bureau.

16. All arrangements for the service of liquor by a Qualified Catering Service shall be completed at least 24 hours in advance of the event or gathering.

A. Qualified Catering Services shall not provide the service of liquor to the public on its licensed premises on a regular day-to-day basis.

B. Qualified Catering Services shall not provide the service of liquor at any event or gathering primarily attended by minors.

C. (Repealed.)

D. Qualified Catering Service licensees shall not sell, serve or allow the consumption of liquor to any minors, visibly intoxicated persons or to any other person prohibited by law from obtaining liquor, while catering at any event or gathering.

E. Approval for the service of liquor by a catering permit or Qualified Caterer or Incorporated Civic Organization shall be denied if the municipality has not voted in the affirmative on the appropriate local option questions authorizing on-premise consumption.

EFFECTIVE DATE:

December 1, 1977 (Filed November 14, 1978)

AMENDED:

October 31, 1979

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

REPEALED AND REPLACED:

April 7, 2001

AMENDED:

August 10, 2002

NON-SUBSTANTIVE CORRECTIONS:

December 31, 2002

January 22, 2003 - punctuation only

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 2 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

AMENDED:

August 15, 2018 – filing 2018-146 (Section 3(A) only)

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 103 Premises Licensed for Off-Premise Sales Only

Code Me. R. 18-553 Ch. 103 Premises Licensed for Off-Premise Sales Only {#sec-18-553-ch.-103 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 103}

(Note: this rule chapter was formerly 16-226 Ch. 3 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. No retail licensee can sell or deliver malt liquor, table wines, fortified wines or low alcohol spirits in any location in which the Bureau cannot issue licenses. Such a delivery or sale shall be sufficient cause for suspension or revocation of a retail store license.

2. No retail store licensee shall accept or fill any order of malt liquor and/or table wines from, or for, any branch store or other retail dealer to whom no license has been issued.

3. No retail or wholesale licensee shall consume or allow consumption of liquor on his premise except approved wine tasting by a retailer or an authorized tasting on a wholesale premise. Licensed premises shall mean and include in addition to the licensed premises, all vehicles owned and operated by the licensee and used in the sale and transportation and storage of alcoholic beverages.

4. No wholesale or retail licensee shall permit the direct handling of liquor on his licensed premises by any person under the age of 15 years.

5. No retail store premise will be considered a bona fide business for the purpose of issuing or renewing a malt or table wine liquor license unless the applicant has on display in the general sales area at least $1000.00 wholesale value of compatible merchandise.

6. Not withstanding other provisions of law to the contrary, an applicant for off‑premise retail sales need not disclose the identity of a sub‑lessee occupying a portion of the licensed premises under the following circumstances:

A. The sub‑lessee is prohibited, both by Maine law and the applicant, from selling, possessing, transporting or otherwise controlling alcoholic beverages on the licensed premises;

B. The sub‑lessee is required to allow Bureau inspection of its premises at all reasonable times;

C. The applicant discloses the existence of the sub‑lease and identifies the sub‑lessee, along with the portion of the licensed premises occupied by the sub‑lessee, in its license application; and

D. The applicant acknowledges that it is responsible for the actions of the sub‑lessee, its employees and agents on the licensed premises in accordance with the applicant's obligations pursuant to the licensing requirements of Title 28-A and this chapter; and

E. An applicant for license may use neither the inventory nor the assets of the sub‑lessee in order to meet the licensing requirements of this chapter.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

December 29, 1987

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

August 10, 2002

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 3 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 104 Premises Licensed as Wholesalers, Manufacturers and Certificates of Approval

Code Me. R. 18-553 Ch. 104 Suppliers and Wholesalers {#sec-18-553-ch.-104 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 104}

(Note: this rule chapter was formerly 16-226 Ch. 4 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. All brands approved for sale must be available to all retail licensees for resale to the consuming public. In instances where a wholesaler has a brand on allocation, all retail licensees shall be allowed, on a percentage basis, to purchase the allocated brand.

2. No certificate of approval holder or wholesale licensee will provide any equipment pertaining to dispensing or storage of liquor except knobs on the dispensers which designate the brand on tap. After written notification to the Bureau, a Wholesale licensee may sell, give and install a keg tapping device, air hoses, beer hoses, air ducts and insulation for draft beer lines, including washers, clamps, faucets, air regulators, blowers and shanks. Towers, drain pans, refrigeration units for draft systems and other devices not specifically allowed by this rule are prohibited. The servicing and repair of the draft equipment for the purposes of cleaning lines is allowed without written notice. A record must be maintained by all licensees for all services and equipment provided or sold.

A. A wholesale licensee with prior written approval may loan draft equipment to holders of special catering permits issued under 28-A M.R.S. § 1052 and to holders of licenses issued under 28A M.R.S. § 1071. This equipment may be used at temporarily licensed locations only and may not be used at a license holders regularly licensed premises.

B. All licensees, including the retailer, will be jointly responsible for compliance with these rules.

C. A certificate of approval holder or wholesale licensee shall not provide draft line cleaning, maintenance, or similar services relating to draft systems for any retail licensee without offering the same services on similar terms to all other retail licensees. If a certificate of approval holder or wholesale licensee provides routine draft line cleaning or maintenance to retail licensees, such service shall not be considered a gift or thing of value under § 17(A);

3. All certificate of approval holders and wholesale licensees doing business in this State will provide the Bureau with the names and addresses of all persons authorized to represent them as sales and promotional agents. The license fee for sales representatives is provided for in 28-A M.R.S. § 1551.

4. (Not in use.)

5. All certificate of approval holders, when submitting copies of invoices to the Bureau for shipments to Maine wholesale licensees, where shipments include more than one purchase order, shall render separate invoices with the purchase order number entered thereon for that part of the shipment which applies to each order. An invoice must be rendered to the wholesaler before or at shipment.

6. There shall be no refund of excise tax for malt liquor, table, sparkling, fortified wine, or low alcohol spirits sold to government instrumentalities or foreign vessels unless they are submitted to the Bureau within 90 days of the invoice sale date. All merchandise destroyed for a refund of the excise tax shall be done only with an authorized Bureau employee.

7. No Maine wholesale licensee shall sell any product to any person who has not been issued the appropriate beer or wine license except government instrumentalities certified by the Bureau.

8. (Repealed.)

9. (Repealed.)

10. (Repealed.)

11. No certificate of approval holder or wholesale licensee shall exact from or require by contract, understanding, or otherwise which would require any licensee to handle or sell only the products of any particular certificate of approval wholesaler. A wholesale licensee may not refuse to sell to a retail licensee in its allotted territory.

12. A wholesale licensee or its representative or agent shall not handle or disturb another wholesaler’s merchandise. Wholesalers and retailers are jointly liable for compliance with this rule.

A. Certificate of approval holders and wholesalers may furnish displays to retailers provided the cost does not exceed $300 per display, including delivery and labor. Product sold for display cannot be returned for a refund.

B. Pricing is allowed on Point-of-Sale material only.

14. No certificate of approval holder, wholesale licensee or their agent shall:

A. Clean, dust or wash shelves or self-service coolers;

B. Construct, repair or replace shelving;

C. Employ or allow a third party to accomplish (A) or (B) of this regulation.

15. Samples given to licensees under 28-A M.R.S. § 1402-A, must be in the original sealed containers and previously unopened except wine samples as permitted by 28-A M.R.S. § 1402-A(3-A).

16. A manufacturer licensed under 28A M.R.S. § 1355-A may charge a fee for a tour or samples offered to the public.

17. No certificate of approval holder, wholesale licensee, reselling agent, or agent of such licensees, shall directly or indirectly offer, give, lend or furnish any money, credit, cash equivalent (including gift cards), equipment, furniture, fixture, service or other thing of value to any other licensee or to any applicant for a license, except as permitted by 28-A M.R.S. § 707 or as provided in this chapter.

A. A certificate of approval holder, wholesale licensee, or reselling agent shall not provide any licensee any combination of things of value that have an aggregate value in excess of $750 in any calendar year to the same licensee.

B. A certificate of approval holder, wholesale licensee, or reselling agent shall not give any permanent item for use on a retail licensee’s premises (including, but not limited to, signs, mirrors, display cabinets, furniture, picnic or patio umbrellas, or similar retailer advertising specialties) unless the item bears conspicuous and permanent advertising identifying the industry member or its products and the aggregate value of all such items furnished to that retail licensee remains within the annual limit specified in paragraph A.

C. A certificate of approval holder, wholesale licensee, or reselling agent shall not furnish any temporary consumer‐use items, consumer advertising specialties, or point of sale advertising material to a retail licensee (such as coasters, napkins, cups, apparel or similar items of minimal retail value intended for use by customers or to be taken away by consumers, or temporary advertising material such as paper signage or shelf tags) unless such items bear permanently inscribed or affixed brand or industry member advertising, and are provided to the retail licensee solely for the use of or distribution to consumers on the licensed premises. Such temporary items provided in accordance with this paragraph shall not be counted toward the annual $750 value limit in paragraph A.

D. No licensee shall offer or give any money, credit, gift, service or other thing of value to a retail licensee with the intent to induce that retail licensee to purchase liquor from that licensee to the exclusion, in whole or in part, of liquor offered for sale by other persons.

E. No certificate of approval holder, wholesale licensee, or reselling agent shall offer a thing of value for the personal benefit of a wholesale or retail licensee or agent of any such licensee including event tickets, trips, or travel accommodations. Wholesale or retail licensees or agents of any such licensee shall not be eligible for consumer giveaways sponsored or provided by a certificate of approval holder or wholesale licensee. This rule does not prohibit a certificate of approval holder, wholesale licensee, or reselling agent from providing meals up to $100 to a wholesale or retail licensee that is attended by both parties. Any such meals count toward the annual $750 value limit in paragraph A.

F. All licensees, including retail licensees, are jointly responsible for compliance with the requirements of this section. Each licensee shall maintain records of any items, services or other things of value provided to or received from another licensee subject to the annual $750 value limit in paragraph A, including the value of each, and shall produce such records to the bureau upon request.

18. Pursuant to 28-A M.R.S. § 1403-A, applicants for a wine direct shipper license or fulfillment provider registration shall apply to the Bureau along with the required license fee. Licensed direct shippers and fulfillment providers shall submit quarterly reports as required by law in the form prescribed by the Bureau. Failure to file required reports or comply with the provisions of Title 28-A may result in suspension or revocation of the license or registration.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

October 31, 1979

April 9, 1984

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

April 7, 2001

August 10, 2002

NON-SUBSTANTIVE CORRECTIONS:

December 31, 2002

AMENDED:

March 9, 2013 – Section 4.16, filing 2013-050

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch.4 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

APAO ACCESSIBILITY CHECK (Word):

March 31, 2026

AMENDED:

April 8, 2026 – filing 2026-072

Chapter 105 Labeling

Code Me. R. 18-553 Ch. 105 Labeling {#sec-18-553-ch.-105 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 105}

(Note: this rule chapter was formerly 16-226 Ch. 5 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

5.1 All labels on malt liquor, wine, sparkling and fortified wine, low-alcohol spirits product, and hard cider shall be in conformity with the regulations adopted by the Federal Alcohol and Tobacco Tax and Trade Bureau (“TTB”). All labels on malt liquor, wine, sparkling and fortified wine, low-alcohol spirits product, and hard cider must be registered with the Bureau. Registration is accomplished by submitting the label, the appropriate fee, and application for registration demonstrating that the label has been approved by the TTB. The fee for the initial registration of a label is $10.00. The fee for a label change or re-registration is $1.00. The purpose of label registration is to ensure that all labels comply with applicable federal regulations, and registration shall not constitute a representation that the label complies with state law including, but not limited to, Chapter 7 of the Bureau's rules.

A label change is considered any change to a label, including but not limited to those changes that require re-approval by the TTB. Reporting a change to a label is accomplished by submitting the revised label, the appropriate fee, and application for registration demonstrating what changes have been made to the label.

All labels must be re-registered annually contemporaneous with the applicant’s renewal of certificate of approval. Re-registration annually is accomplished by submitting the appropriate fee and application for registration demonstrating that the label has been approved by the TTB. Vintage changes are not considered a label change.

History

• STATUTORY AUTHORITY: 28-A M.R.S.A. §82(2) and 28-A M.R.S.A. §6(2)
• EFFECTIVE DATE: December 1, 1977 (filed November 14, 1978)
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• REPEALED AND REPLACED: June 4, 2007 – filing 2007-229
• AMENDED: March 9, 2013 – filing 2013-051
• AMENDED: RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:
• AMENDED: formerly Ch. 5 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 106 Salesmen

Code Me. R. 18-553 Ch. 106 Salesmen {#sec-18-553-ch.-106 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 106}

(Note: this rule chapter was formerly 16-226 Ch. 6 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

106.1 No person licensed under Title 28A Chapter 59 shall engage in any transaction involving the sale, delivery, or transportation of an alcoholic beverage to any retail licensee.

EFFECTIVE DATE:

December 1, 1977 (Filed 11-14-78)

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May15, 1996

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 6 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 107 Advertising and Signs Applicable to all License Holders

Code Me. R. 18-553 Ch. 107 Advertising and Signs Applicable to All License Holders {#sec-18-553-ch.-107 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 107}

(Note: this rule chapter was formerly 16-226 Ch. 7 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. All liquor advertising, or any claims for liquor advertised, shall conform with the standards set forth in regulations under the provisions of the Federal Alcohol Administration Act as well as the Maine State Liquor Laws and Bureau rules.

2. No descriptive matter in liquor advertising shall be inconsistent with the description of the contents as listed on the labels of such liquor.

3. Advertisements of liquor shall not contain any statement, design, device, or representation which is obscene, including portrayals of sexual content or bodily functions in an offensive or shocking manner

4. No advertisement of liquor shall contain either subject matter or illustrations inducing minors or immature persons to drink, nor shall depict any person in the act of drinking liquor.

5. No liquor advertising shall suggest any beneficial or tonic effect from drinking thereof.

6. ( Repealed.)

7. ( Repealed.)

8. (APA Office Note: information received indicates that the provisions of Section 7.8 have been repealed and replaced by statute, Title 28-A Section 710.)

9. No advertising of liquor shall contain any subject matter relating to contests or prizes that require the purchase of or the awarding of any alcoholic beverage.

10. ( Repealed.)

11. No licensee, except wholesalers, manufacturers licensed under 28-A M.R.S. § 1355-A exercising their right to self-distribute, or reselling agents, shall have malt or vinous liquor advertisements or signs on or attached to delivery vehicles owned or controlled by them which advertise by brand name.

12. No licensee, except a certificate of approval holder or wholesale licensee, shall advertise liquor by any lighted sign visible from the exterior of a licensed premise during the hours that liquor is prohibited for sale.

13. ( Repealed.)

14. ( Repealed.)

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

October 31, 1979

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

NON-SUBSTANTIVE CORRECTIONS:

March 17, 2004

AMENDED:

June 4, 2007 – filing 2007-230 affecting Section 3

March 9, 2013 – filing 2013-052 affecting Sections 7.8 and 7.10

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 7 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

APAO ACCESSIBILITY CHECK (Word):

March 31, 2026

AMENDED: April 8, 2026 – filing 2026-073

Chapter 110 Agency Stores

Code Me. R. 18-553 Ch. 110 Agency Stores {#sec-18-553-ch.-110 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 110}

(Note: this rule chapter was formerly 16-226 Ch. 11 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. Agent is a person(s) or corporation who has been issued an Agency Liquor Store license by the Bureau.

2. Bureau shall mean the Bureau of Alcoholic Beverages and Lottery Operations.

3. [ Repealed ]

4. [ Repealed ]

5. Agency Liquor Store shall mean and include the entire premise owned and occupied by an agent which is used to conduct the operation of the liquor agency business.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

NON-SUBSTANTIVE CORRECTIONS:

March 17, 2004

AMENDED:

March 9, 2013 – filing 2013-053

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 11 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 120 Licensing Procedure

Code Me. R. 18-553 Ch. 120 Licensing Procedure {#sec-18-553-ch.-120 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 120}

(Note: this rule chapter was formerly 16-226 Ch. 12 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

120.1 The Bureau will announce through newspaper ads the various locations where agency stores will be licensed.

120.2 When an application process is announced, applications are available through the Bureau located at the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations, State House Station 8, Augusta, Maine 04333-0008.

120.3 Applications will be accepted for a period of 15 days from the date agency ads first appear in the newspaper.

120.4 A representative from the Bureau will call on each applicant to inspect the premises.

120.5 Once a decision is made by the Bureau, all applicants denied will be so advised in writing.

120.6 Any applicant aggrieved by a decision rendered by the Bureau, may within 15 days of the date of the decision file an appeal with the Administrative Court. A person aggrieved by a decision of the Administrative Court may file an appeal with the Superior Court.

EFFECTIVE DATE:

December 1, 1977 (Filed 11-14-78)

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

March 9, 2013 – filing 2013-054 affecting Sections 12.5 and 12.5

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 12 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 130 Selection and Location of Agency Stores

Code Me. R. 18-553 Ch. 130 Selection and Location of Agency Stores {#sec-18-553-ch.-130 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 130}

(Note: this rule chapter was formerly 16-226 Ch. 13 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1 . All agency stores must have an inventory of at least $1000.00 ofmerchandise other than that allowed by agency store license.

2 . All agency stores must have adequate footage for the convenient sale ofsaid other merchandise.

3 . (Repealed.)

4 . (Repealed.)

5 . Agency stores must be more than 300 feet from a school, church, or parishhouse, measured in the normal course of travel.

6 . Agency stores must have access to adequate parking facilities.

7 . The Bureau may grant an agency store license to a store which in itsjudgment has the most satisfactory structure, condition, facilities andgeographical location within the municipality.

8 . The Bureau shall consider the extent of present or anticipated tourist trafficwithin the area of a proposed agency store.

9 . The Bureau shall consider any other appropriate factor or circumstance itdeems necessary for better service to the public.

10 . In the event that an agent surrenders his license, the Bureau may readvertise for a new agent in that community if itdetermines there is a need to replace that license.When the Bureaudetermines that a change of ownership in a license has occurred, anagent must surrender his license.

A . When a premises licensed as an agency store moves the business, anagent is required to surrender his license.If an agent rebuilds thepremises licensed and the Bureau determines that the location isunchanged, the Bureau may allow the agent to maintain the licenseissued to that location.The Bureau may deny the request if the newpremises does not meet or exceed the qualifications for licensure ofthe original premises.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

October 31, 1979

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

April 7, 2001

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 13 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 140 Merchandising and Stock

Code Me. R. 18-553 Ch. 140 Merchandising and Stock {#sec-18-553-ch.-140 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 140}

(Note: this rule chapter was formerly 16-226 Ch. 14 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

1. Agents must purchase all spirits from the Bureau of Alcoholic Beverages/Lottery Operation and/or a State Liquor Store.

2. Agents must stock at least $10,000 of bottled spirits if they are located in a town of at least 6000 population. All agents are required to have at least 100 different codes on hand or in stock.

3. A licensed liquor salesman or wholesale licensee, their agent or employee may stock spirits in an agency liquor store, but may not disturb another person’s merchandise.

4. All merchandise must be priced individually or prices posted by brand in a conspicuous place.

5. Signs stating age requirement to purchase liquor shall be prominently displayed in all agency stores.

6. Escrow accounts for sales of spirits to on-premise licensees may be used with approval of the Bureau.

7. For the purpose of receiving payment in an agency store or retail store, an employee must be 17 years old to receive payment for intoxicating liquor provided that there is a 21 year old present in a supervisory capacity. Persons 15 years of age may handle liquor for the purpose of stocking shelves and delivering to vehicles.

8. Agents must confine liquor to selling areas designated in the agency application.

9. Any change in agent’s storage or selling space must be sanctioned by the Bureau.

10. (Repealed.)

11. Agents may not deliver liquor in areas where the sale of same is not permitted by law.

12. Agents must have and display Federal Tax Stamp for retail sales.

13. All sales of spirituous liquor are final except defective products may be exchanged or refunded, and an agency liquor store may permit the return of a bottle of spirits from a consumer if the bottle has not been opened or tampered with and is accompanied by a sales receipt that shows the bottle of spirits was purchased within the last 10 days from that agency liquor store.

14. (Repealed.)

15. Agents must have a Federal Wholesale Tax Stamp to sell to retail licensees.

EFFECTIVE DATE:

December 1, 1977 (filed November 14, 1978)

AMENDED:

October 31, 1979

December 29, 1987

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

April 7, 2001

August 10, 2002

October 5, 2011 – Section 13, filing 2011-374

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 14 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 150 Signs and Advertising

Code Me. R. 18-553 Ch. 150 Signs and Advertising {#sec-18-553-ch.-150 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-553 Ch. 150}

(Note: this rule chapter was formerly 16-226 Ch. 15 of the Department of Public Safety, Liquor Licensing and Inspections Unit.)

150.1 Agency stores may display one outside sign on the premise to read: "Agency Liquor Store". Letters for the sign may not exceed 24" in height.

150.2 one other exterior sign, except road signs authorized by the Department of Transportation, may by approved by the Bureau.

150.3 Specific brand advertising of any type is prohibited in any area under control of the agent unless authorized by the Bureau.

150.4 All advertising matter must be specifically authorized by the Bureau prior to publication.

150.5 All signs must be removed from an agency store premise within 60 days when a license is terminated.

EFFECTIVE DATE:

December 1, 1977 (Filed 11-14-78)

AMENDED:

October 31, 1979

March 28, 1995

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

AMENDED:

March 9, 2013 – filing 2013-55 affecting Section 15.1

RELOCATED June 26, 2013 by the provisions of P.L. 2013 ch. 368 Part V:

formerly Ch. 15 under 16-226 - Department of Public Safety, Liquor Licensing and Inspections Unit

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

18-554 Bureau of General Services

Chapter 1 Procedures for Procurement of Professional Architectural and Engineering Services

Code Me. R. 18-554 Ch. 1 State of Maine Procedures for Procurement of Professional Architectural and Engineering Services {#sec-18-554-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 1}

SUMMARY: The Bureau of General Services establishes the following procedures for the selection of Architects & Engineers for the design of Public Improvements and Public School Facilities. (Including Consultant Services pertaining to same).

1. DEFINITIONS

For the purpose of this section, unless otherwise indicated, the following words have the following meaning:

CONTRACTING AUTHORITY - includes all State Departments, Agencies and Public School Administrative Units subject to Title 5, Section 1742, Subsection 6.

ADVERTISEMENT - Written description of the services required, and setting forth minimum procedures which an architect or engineer may use to be considered as a candidate in the selection process.

BUREAU - Bureau of General Services.

ARCHITECT - Any individual, partnership, corporation, association or other legal entity licensed to practice architecture in the State of Maine.

ENGINEER - Any individual, partnership, corporation, association or other legal entity licensed to practice engineering in the State of Maine.

FIRM - Any proprietorship, partnership, corporation, association or other legal entity offering architectural or engineering services.

PUBLIC IMPROVEMENT - Defined in Title 5, 2. Section 1741. Includes all "construction, major alteration or repair of buildings or public works now owned or leased or hereafter constructed, acquired or leased by the State of Maine or any department, officer, board, commission or agency thereof, or constructed, acquired or leased, in whole or in part with State funds, and including the construction, major alteration or repair of school buildings, in excess of $25,000, by any school administrative unit and for which State school construction aid is to be paid, provided that sections 1743 and 1745 shall not be applicable to construction, major alteration or repair of school buildings. Nothing in this section shall apply to the construction, improvement or repair of any and all ways, roads or bridges with appurtenances which, by law, are under the supervision of the Department of Transportation."

PROFESSIONAL SERVICES - Shall be services of an Architect or Engineer in connection with studies or design for public improvements required to be contracted through these procedures. Such services shall be limited to the following:

A. Architectural and Engineering Design Services (including concept design studies) for the development of a Public Improvement, the construction cost of which is estimated to equal or exceed $50,000.

B. Architectural and Engineering Consultant Services estimated to cost in excess of $5,000 (such as feasibility studies) with no construction value of consequence at the time of the agreement or a study not directly associated with a specific design of a Public Improvement.

ARCHITECTURAL & ENGINEERING FIRM LIST - This listing will be maintained by the Bureau of General Services and will contain the names of all Architectural & Engineering firms who have contacted the Bureau (in writing) expressing an interest to provide professional services related to public improvements.

PROJECT - Any study or design requiring the need for professional services as defined in these procedures.

2. SELECTION PROCESS

Any Contracting Authority contemplating the need for professional services (as defined in these procedures) for a public improvement must procure such professional services in accordance with these procedures.

Should the Contracting Authority have any question with these procedures regarding the involvement of any professional services agreement, the Contracting Authority should first contact the Bureau of General Services for clarification.

A. ADVERTISEMENT

Prior to initiating the process of selecting an architect or engineer for a project, the Contracting Authority shall advertise in the Daily Kennebec Journal at Augusta and in a daily newspaper that serves the area in which the project is located. A copy of the advertisement will be filed with the Bureau of General Services and will be available for review by the Architects and/or Engineers.

(1) CONTENT

The advertisement shall contain a brief, but informative, description of the professional services required and the name and address of the individual representing the Contracting Authority in the selection process.

The advertisement should also state the format to be used by the Architect and/or Engineer in submitting information to the Contracting Authority supporting consideration of the firm as a candidate for the project. (The Bureau will make available to the Contracting Authority sample advertisement information).

(2) PUBLICATION

The advertisement shall be published at least two weeks before the selection of the Architect or Engineer. (Large projects may require additional notification time and coverage).

(3) ARCHITECT AND ENGINEER LIST The Bureau shall maintain the Architectural & Engineer Firm List which will be available, upon request, to the Contracting Authority.

B. REVIEW BY CONTRACTING AUTHORITY

(1) SELECTION FOR INTERVIEW

The Contracting Authority shall review all responses to the advertisement and shall select at least three (3) firms to be interviewed for the project. The exact number and particular firms selected for interview will be determined by the character and scope of the Project and the Firms' professional competency as it relates to the Project.

(2) INITIAL INTERVIEW

Each Firm selected for interview shall be notified of the time and place for a personal interview. It is expected that the individual or officer of the Firm who will be directly responsible for the project will personally appear at the interview.

(3) CONDUCT OF INTERVIEW In the case of design projects, allow the Firms adequate opportunity to inspect the site and to prepare for the interview. During the interviews discuss, in depth, the proposed services required; the qualifications and performance records of each Firm; its capability to complete the project within the time allotted, and the qualifications, experience and availability of the specific key personnel to be assigned to the Project. (Bureau will assist with interviews when requested and will provide interview format questionnaire). Determine the names and locations of a number of recent clients for whom the Firm has recently done similar work.

The interview should serve as the basis of the selection arrived at following an evaluation of professional competency and qualifications required for the types of services contemplated. Fee for such services should not be a subject of the interview; but negotiated at fair and reasonable prices following the selection.

(4) REFERENCE CHECK

Check carefully with the recent clients of the Firms and obtain a candid confidential evaluation of the Firm's performance. Do NOT limit this check only to references supplied by the Firms.

(5) EVALUATION

List the three (3) or more Firms interviewed In order of their desirability, taking into account their location, reputation, competency, experience, financial standing, size, personnel available, quality of references, work load and any other factors relevant to the project being considered.

C. FEE NEGOTIATION

(1) SECOND INTERVIEW

Invite the Firm which appears to be the best qualified for the project being considered to appear for a second interview to discuss the project in-depth and to negotiate the fee. The Bureau of General Services will provide assistance in the determination of an acceptable fee.

(2) FAILURE TO REACH AGREEMENT

If the Contracting Authority and the Firm are unable to reach agreement on compensation, the negotiations should be terminated and the Firm notified in writing to that effect. The Firm deemed next best qualified for the project being considered should then be called in to negotiate a fee.

(3) CONFIDENTIALITY OF NEGOTIATIONS

All negotiations should be conducted on a confidential basis and in no event should the negotiations attempt to play off one Firm against another by disclosing the compensation discussed with the other Firm.

(4) FEE SCHEDULE

The basis of the negotiations for a fee should relate directly to the "Recommended Fee Schedule for Design of Public Improvements" established by the Bureau of General Services.

Any variance from the above referred to fee schedule must be justified prior to approval granted by the Bureau. Such justification for a variance would only be approved when the complexity, scope or other considerations pertaining to the Project warrant same.

(5) FEASIBILITY STUDIES

Negotiated fees for feasibility studies will be based upon fees for similar work or studies with comparable complexity In order to determine the reasonableness of the compensation. The Bureau will be available to assist the Contracting Authority in arriving at an acceptable fee fort he Project.

D. AGREEMENT

When the Contracting Authority and the Firm agree on an appropriate fee and when the scope of the professional services, the manner of their performance, and any time limitations have been fully disclosed, discussed and agreed upon, the parties should enter into a formal written contract. Standard agreement forms are provided by the Bureau. All agreements are to be executed on these standard forms in the required number of copies, and are subject to the approval of the Director of the Bureau.

E. CERTIFICATION

The Bureau, prior to approval of the Agreement, may require that the Contracting Authority provide certification that these selection procedures were followed. Such certification would include a copy of the actual newspaper advertisement, a list of Firms who indicated an interest in the Project, a list of the Firms interviewed and any other documentation requested by the Bureau.

3. RENOVATIONS

The Contracting Authority, with prior approval of the Bureau, may interview or negotiate directly with a Firm (who designed the original facility) for a major renovation or addition to such facility provided the renovation or addition takes place within five (5) years from the date of the original project acceptance.

4. EMERGENCY PROCEDURE

Nothing In these procedures is to limit or prevent the head of any agency, board, commission, department of State government or School Administrative Unit from taking action under Title 5, Section 1742, Subsection 21.

STATE OF MAINE GUIDELINES FOR A/E PROCUREMENT

PREPARED BY THE BUREAU OF GENERAL SERVICES (referred to as the Bureau) to assist owners in accordance with the Procedures for the Procurement of Professional Architectural & Engineering Services.

Once the Contracting Authority (owner) has made the decision to proceed with a particular project, it will be necessary for the owner to develop a basic concept program for the project before Initiating action relating to the selection of A/E. This concept should contain such things as the need for the project, the design objectives; together with estimated project cost, although at this point In time such an estimate may, in effect, be nothing more than a "ball park" figure. Upon the completion of the conceptual development of the project, the following steps should be undertaken regarding the selection of an A/E firm who will provide the necessary professional services for the project.

A. OWNER A/E SELECTION COMMITTEE

Prior to any action regarding the selection of the A/E, it is recommended that the owner establish an A/E Selection Committee. This A/E Selection Committee would have the responsibility of preparing the advertisement, screening the list of A/E’s who indicate an interest In the project, selecting those firms who are to be Interviewed and following the interview, making the final selection of the firm to be commissioned for the project. The Bureau would suggest this Selection Committee be composed of approximately 5-7 Individuals. Individuals should be selected for this Committee on the basis of their association with the project; either from program or administrative responsibilities. The Bureau will, upon request, make available a representative to assist this Committee in Its responsibilities.

B. ADVERTISEMENT

It will be necessary for the A/E Selection Committee to prepare an advertisement which, in accordance with the statutory requirements, must be placed in a newspaper serving the locality in which the project is to be located. Also, in accordance with the procedures established, the same advertisement must appear in the Daily Kennebec Journal In Augusta. By placing all ads in the Daily Kennebec Journal in Augusta, a central location will be provided where all interested A/E's can be made aware of the potential needs for their services.

The Bureau would also suggest that the owner place the ad or similar notification of the project in the various professional and industry bulletins and news letters. Contact the Bureau and you will be furnished the names of the various media news letters.

The Procedures contain a requirement to publish the advertisement at least two weeks before the selection. This should be considered the minimum notification. However, many of the larger projects will require a longer advertising period. For the larger more complex projects a 30-day advertising period would be more practical.

The advertisement should contain a brief description of the project, including but not limited to; the project title, the general scope of the project, and any other pertinent information which would permit Interested A/E's a better understanding of the services required. Also, it will be necessary for the ad to contain a submission deadline for the interested firms, together with the name of the owner's representative to whom their letters should be addressed.

Along with the A/E firms' letters of interest, the owner should receive from each firm, information demonstrating the firm's understanding of the project, evidence of the firm's ability to perform, profiles of the firm's personnel, and the firm's fiscal stability; together with references with whom the owner may contact regarding the firm's previous projects. A sample advertisement is' contained in the Appendix.

Also the owner may contact the Bureau for a list of A/E's who have previously filed with the Bureau, indicating an interest In providing the required services. The owner can then send the advertisement directly to any of these A/E firms contained on the Bureau's list.

C. REVIEW OF A/E'S WHO INDICATE INTEREST IN PROJECT

The A/E Selection Committee should carefully review all of the background Information submitted by each of the firms expressing an interest in the project. The Committee should evaluate, in-depth, the evidence presented by the firm indicating the firm’s ability to perform, the experience of the firm’s personnel, a listing of the firm’s previous experience (on similar projects and also projects not related), and the firm’s references.

The Bureau certainly cannot overemphasize the importance of the A/E Selection Committee to check the references given by various firms prior to selecting the firms for interviewing. It is also important that the Committee check on previous projects involving the fir but not listed for reference purposes in the material submitted by the firm.

D. SELECTION OF THE FIRMS FOR INITIAL INTERVIEW

In accordance with the adopted procedures it will be necessary to select a minimum of three firms for interview and the Bureau would suggest this number be increased to 5 or 6 firms. To interview more than the maximum of 5 or 6 as suggested, many times tends to dilute the value of the interview process.

If, after advertising the project in accordance with Procedures for Procurement of Professional Architectural & Engineering Services, less than three firms respond indicating an interest in the project, the owner should proceed with the selection process in accordance with the balance of the procedures.

Following the screening as described above, the A/E Selection Committee should call in those firms for interview that appear to be best able to provide the necessary professional services for the particular project involved.

Once the A/E Selection Committee has made its decision on the firms to be interviewed, a letter should be forwarded to each of the firms so selected, indicating the date of the interview and the location. Any additional project information, such as a more definitive concept program, should be forwarded to these firms being interviewed. It is suggested that, unless there are most unusual circumstances surrounding the project, that the interviews normally last approximately 20-45 minutes. A one-hour schedule permits ample time for the interview and still allows a “break” between on interview and the next. This “break” allows the members to discuss certain aspects of a particular interview, prior to entering in the next interview.

Letters should also be forwarded to those firms not selected for interview.. It is certainly proper that firms not selected be made aware of the owner’s gratefulness for interest they have shown in the project.

Samples of both of the above referred to letters are contained in the Appendix.

A sample interview questionnaire is also contained in the Appendix. The purpose of this questionnaire is to see that each interviewed is asked the same basic questions and that in each case, the firms response is noted.

It is important, also, that the questions not be presented in the format of an “oral examination.” Committee members should attempt to establish an informal, relaxed atmosphere, where both parties involved; the owner and the firm being interviewed, can more easily obtain a better understanding of each others position during the interview.

E. INTERVIEW PROCESS

During the interview, the A/E Selection Committee members should, through in-depth discussion with the representatives of the firms, attempt to determine the firm’s basic understanding of the project and a general philosophy regarding the firm’s approach to the particular project.

The in-depth discussion with the firm’s representatives should include discussion involving the following items of extreme importance in the selection process. (Items are not listed in order of importance, are not of equal weight and the relative importance of the items vary from project to project).

(1) Education and experience of principles and key employees.

(2) Firm’s history of performance on previous projects.

(3) Adequacy of personnel and equipment to perform work.

(4) Names of personnel who will assigned to project and their qualifications, responsibilities, and previous record.

(5) Firm’s general approach to planning, organizing, and management of project, including approach to problem solving, data gathering and communications.

(6) Firm's facilities and equipment, such as computer, reproduction, laboratory and test equipment, if required.

(7) Present workload with attention to present and future commitments, particularly those personnel to be assigned.

(8) Financial stability.

(9) Recommendations and opinions from firm's previous clients. Ability to meet deadlines, budget control, sense of responsibility and quality of service.

(10) On-site examination of firm's current or completed projects.

(11) Location of firm's office.

(12) Firm's ability to secure professional liability insurance.

Based upon the discussion of the above items and other pertinent information, the A/E Selection Committee should establish a ranking order of preference 1-2-3 ... with the number 1 firm judged the most qualified for the particular project.

Evaluation and ranking is sensitive and requires a good deal of time. Members of the A/E Selection Committee must be accountable. They should, therefore, involve more than one knowledgeable person, keep accurate records of all correspondence, memos, evaluation sheets, evaluation criteria and competitors submissions.

It is important for the A/E Selection Committee to determine the ranking of the interviewed firms on the basis of their professional capability in accordance with the criteria listed above. There Is no need, nor should there be, for any discussion of fee during this Interview process. In accordance with the legislation which mandates this selection process, the "contracts for Architectural/ Engineering Services be negotiated by the Contracting Authority on the bases of evaluation of professional competency and qualifications required for the type of services contemplated at fair and reasonable rates." A discussion of fees during the Interview process, Involves the negotiating process which should commence only after the Interviewed firms have been arranged In a rating order as indicated.

F. NEGOTIATION PROCESS (2ND INTERVIEW)

The A/E Selection Committee should invite the firm selected as most qualified to present a comprehensive proposal. This proposal should be requested from the selected firm after the Committee has established a clear definition of services to be rendered and forward same to the firm. Following receipt of the firm's proposal based upon the clear definition of services to be rendered, a meeting should be arranged between the selected firms and the Committee to allow for evaluating and, it necessary, modifying the original proposal.

The firm's proposal submitted should be based upon the Bureau's Recommended Fee Schedule for Design of Public Improvements. Any negotiations will be judged in relationship to this fee schedule. Such negotiations should give consideration to the following:

(1) Project time schedule and budget

(2) Manpower requirements

(3) Level of effort - scope and complexity of project

(4) Research required

(5) Areas of responsibility

(6) Fee and method of payment.

Should the Committee be unable to negotiate a satisfactory contract with the firm considered to be the most qualified, at a price the Committee determines to be fair, competitive and reasonable, negotiations with that firm shall be formally terminated. The Committee shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the Committee shall terminate negotiations. The Committee shall then undertake negotiations with the third most qualified firm, and so on.

It would be most unusual if the Committee found it necessary to negotiate beyond the second qualified firm. If it were necessary to go to the third qualified firm or beyond, it would seem reasonable that the process should be suspended and the scope and complexity of the project be, once again, reviewed. In such a case, the Bureau would be in a position to assist the owner in this situation.

G. PROFESSIONAL AGREEMENT

When an acceptable fee has been successfully negotiated, the terms of such negotiations should be reduced to writing on the BPI standard contract agreement form. Basically, there are two standard forms used for such agreements. The first is known as the short-form, which is used primarily for preliminary design/concept services relating to public school facilities and for engineering feasibility studies. The second is what is known as full or basic services agreement. Copies of both these agreement forms are contained in the Appendix. For projects considered State projects, it will be necessary to execute the agreement in 6 copies. For professional agreements involving public school facilities, it will be necessary to prepare 4 copies of the agreement.

The Bureau will be available to assist in the preparation of these agreement forms. The agreement should be executed (in the necessary numbers as indicated above) by the Contracting Authority and a principle of the design firm and then forwarded to the Bureau for approval by that office. Once approved by the Bureau, copies will be distributed to all parties involved with the project.

H. METHODS OF PROFESSIONAL COMPENSATION

The Bureau will assist the owner in preparing the agreement and offer advice regarding the method of compensation adopted for each particular project. Listed below are the basic forms of compensation utilized.

(1) LUMP SUM. When it is possible to define precisely the scope of the project and the professional services to be performed , a Lump Sum may be agreed upon for the total compensation. The scope of the services should be described completely in the agreement to avoid possible misunderstanding. Payment for extra work requested should be provided for upon a predetermined basis.

(2) PAYROLL COST TIMES A MULTIPLIER. Accurate definition of the work required often is impossible to determine at the inception of a project. Payroll costs (salary plus costs covering vacation, sick leave, payroll records and various types of insurance and other fringe benefits) for personnel assigned to the working on the project times a multiplier to cover overhead and profit, is a method for determining compensation equitable to both parties. This multiplier usually ranges from 2.00 upward. All costs (payroll and overhead) plus a fixed dollar amount is a variation of the payroll times a multiplier method and may be used when general but not precise scope of the project is known. In addition to compensation as computed by this method, reimbursement is made for travel, subsistence, telephone, telegraph, prints and similar out-of-pocket expenses required specifically for the project. A “not to exceed amount” should be incorporated in this type of agreement.

(3) RATE PER DAY PLUS EXPENSES. Rates per day for personnel plus out-of-pocket expenses required for the project normally are used for short-term engagements, especially for personal services involving advice, consultation and reports, investigations, litigation, appearance before commissions and courts and similar type of activities for which little or no design, detailed drafting, or other services are required. A “not to exceed amount” should be incorporated in this type of agreement.

(4) PERCENTAGE OF CONSTRUCTION COSTS Fees for design services for facilities to be constructed frequently are based upon a percentage of direct construction cost. This fee basis is applicable proportionate to the cost of the project.

RECOMMENDED FEE SCHEDULE FOR DESIGN OF PUBLIC IMPROVEMENTS

The Bureau of General Services has prepared this Recommended Fee Schedule to assist Owners in negotiating A/E fees. This fee schedule is based upon a review of current projects and one considered to represent fair and reasonable prices for A/E professional services. However, due to varying project requirements, it is suggested that this schedule be used as the basis of the fee negotiation; thus, permitting variations in the fee in order to recognize individual project requirements.

The Bureau will continually monitor the prevailing reasonable rates and as a result of such review may periodically reissue the schedule and/or adjustments to it.

BASIC SERVICES

The Recommended Fee Schedule for Design of Public Improvements is directly related to the basic services provided by A/E’s as indicated in Article 11 of the standard Agreement Between Owner & Architect or Engineer for the Design of Public School Projects (and/or) State Projects. These basic services are enumerated below.

SCHEMATIC DESIGN PHASE

In this phase the Designer shall ascertain the requirements of the project by consulting with the Owner and the Bureau of General Services (hereafter referred to as the Bureau)and shall prepare schematic design studies which shall indicate the concept of the project, including the proposed general shape, size and type of construction. The Designer shall prepare and submit to the Owner and the Bureau a statement of probable construction cost based on area, volume, or other current unit costs, adjusted for the project under consideration.

During this phase the Designer shall furnish sketch evaluation or a perspective, appropriately colored, if desired, of the proposed building which shall become the property of the Owner. If the “professional “ nature the Owner shall so direct the Architect and will reimburse the Architect for the cost of the same.

Concurrently with the preparation of the schematic design, the Designer shall determine from competent authority any of the following factors in conflict with use of the site as proposed:

(1) zoning regulations

(2) sanitary codes

(3) health and fire laws

(4) local ordinances

and shall report his findings thereon to the Owner when submitting the plans, etc.

PRELIMINARY DESIGN PHASE

These drawings shall show the extent of the site; location of project on the site; type of foundation, the proposed floor plans; elevations and working sections; and shall be sufficiently developed so as to fix and illustrate the size and character of the project in all of its essential particulars. The Designer shall furnish outline specifications describing the important items of work including the structural, mechanical, and electric systems, materials and such other essentials as may be appropriate. With the outline specifications, the Designer shall furnish a realistic estimate of construction cost predicated on the outline specifications and the drawings for this phase.

FINAL DESIGN PHASE

These are logical and final developments of the foregoing preliminary design phase. They are a part of the construction contract documents and as such must explain in complete detail the full scope of the work included in the contract and to be performed under the same. A final detailed estimate of the cost of construction predicated on these detail drawings and specifications shall accompany them.

BIDDING PHASE

The Architect, following the Owner's approval, of the final design plans and specifications, shall assist the Owner in obtaining bids or negotiated proposals, and in awarding and preparing construction contracts.

CONTACT ADMINISTRATION

The contract administration phase will commence with the award of a contract and will terminate at the end of the year’s guarantee period, which guarantee period shall commence upon the issuance of a certificate of acceptance of a construction project.

The Designer’s administration of the construction contract is understood to include, but is not limited to the following:

(1) to furnish to Owner and Bureau monthly reports of inspection and progress.

(2) To furnish comprehensive reports on necessary change orders with recommendations regarding the same.

(3) To preside at the pre-construction conference and monthly job meeting and provide reports on same to the Owner and the Bureau.

(4) To check and approve partial payment requisition submitted by contractors.

(5) The Designer shall review and approve shop drawings, samples, and other submissions of the contractor only for conformance with the design concept of the project and for compliance with the information given in the contract documents.

(6) To make a final inspection of the project with Owner, the Bureau, and the Contractor.

(7) To make an inspection prior to expiration the guarantee period and report on observable defects of material and workmanship requiring correction by the contractor under his contract.

(8) When authorized by the Owner he shall employ and pay for the services of a Resident Inspector as needed who shall be acceptable to the Owner and the Bureau, both as to person and salary (Reimbursable Expense).

ADDITIONAL SERVICES NOT INCLUDED IN BASIC SERVICES

The following services are not included in the basic service fee. If any of these additional services are authorized, additional reimbursement must be considered.

(1) Providing special analyses of the Owner’s needs, and programming the requirements of the Project.

(2) Providing financial feasibility or other special studies.

(3) Providing design services relative to future facilities, systems and equipment which is not intended to be constructed as part of the Project.

(4) Providing interior design and other services required for or in connection with selection of furniture and furnishings.

(5) Providing services for planning tenant or rental spaces.

(6) If, at any time after acceptance by the Owner and the written approval of the Bureau of the design phases, he shall, through no fault of his, be required by the Owner and the Bureau to make substantial changes in detail plans and specifications, he will make the required changes, and will be entitled to just and equitable compensation; thereof, He, the Owner, and the Bureau will agree upon the basis of such compensation before beginning such work.

(7) Providing consultation concerning replacement of any work damaged by fire or other cause during construction, and furnishing his contract. professional services of the type as may be required in connection, with the replacement of such work.

(8) Providing professional services made necessary by the default of the Contractor.

(9) Providing Contract Administration and observation of construction after the approved completion date has been exceeded by more than twenty percent through no fault of the Architect.

(10) Preparing to serve or serving as an expert witness in connection with any public hearing, arbitration proceeding or legal proceeding.

(11) Providing services or professional consultants (request and approved by Owner) for other than normal structural, mechanical and electrical engineering services for the project.

(12) Prior to final payment of Designer’s fee, adjustment consideration shall be given to contract change orders. (See Article IV - Standard agreement).

(13) Prior to or during the final phase, fee adjustments for alternates will be considered for specific circumstances involved. (See Article IV - Standard agreement).

STATE OF MAINE

ARCHITECTURAL PROJECTS

SCHEDULE OF RECOMMENDED FEES

New Construction Cost

A

Rate

B

Rate

C

Rate

$50,000 and below

8.0

9.0

10.0

$50,000

to

$100,000

7.5

8.5

9.5

$100,000

to

$150,000

7.2

8.2

9.2

$150,000

to

$200,000

6.9

7.9

8.9

$200,000

to

$300,000

6.5

7.5

8.5

$300,000

to

$400,000

6.2

7.2

8.2

$400,000

to

$500,000

6.0

7.0

8.0

$500,000

to

$600,000

5.9

6.9

7.9

$600,000

to

$700,000

5.8

6.8

7.8

$700,000

to

$800,000

5.7

6.7

7.7

$800,000

to

$900,000

5.6

6.6

7.6

$900,000

to

$1,000,000

5.5

6.5

7.5

$1,000,000

to

$1,500,000

5.3

6.3

7.3

$1,500,000

to

$2,000,000

5.1

6.1

7.1

$2,000,000

to

$2,500,000

5.0

6.0

7.0

$2,500,000

to

$3,000,000

4.9

5.9

6.9

$3,000,000

to

$4,000,000

4.8

5.8

6.8

$4,000,000

to

$5,000,000

4.7

5.7

6.7

Alteration Construction Cost

Add to percentage above

2.0

2.5

3.0

Beyond the limits of the schedule, the fee becomes a matter of negotiation.

EXAMPLES OF BUILDINGS ACCORDING TO DEGREE OF COMPLEXITY

A-Rate For structures of simple architectural character such as:

Warehouses

Hangars

Garages

Loft Buildings

Parking Structures.

B-Rate For structures of usual architectural character such as:

Office Buildings and Institutional Buildings

Schools

Dormitories

College Buildings (except special purpose Laboratories and Clinics)

Armories.

C-Rate For structures of individual or specialized architectural character:

Libraries

Communications Buildings including Radio and TV Studios

Clinics

Laboratories

Health Centers

Theaters (Performing Arts).

The fees above are based on the cost of construction and apply to lump sum, single contractor contracts. Where separate contracts are involved or where the construction is to be performed on a cost plus fee basis, and additional charge should be negotiated.

When new additions are combined with alterations to an existing building, the fee should be adjusted based on value proportionately in accordance with the schedule.

For multiple and different uses occurring in a single building, the fee may be adjusted proportionately to each occupancy. The fee for multiple or repetitive units, employing one or more repeated plans, should be negotiated.

STATE OF MAINE

ENGINEERING PROJECTS

SCHEDULE OF RECOMMENDED FEES

New Construction Cost

A

Rate

B

Rate

C

Rate

$50,000 and below

9.8

11.4

13.0

$50,000

to

$100,000

9.0

10.3

11.6

$100,000

to

$150,000

8.5

9.7

11.0

$150,000

to

$200,000

8.1

9.2

10.3

$200,000

to

$300,000

7.6

8.5

9.4

$300,000

to

$400,000

7.3

8.1

8.9

$400,000

to

$500,000

7.0

7.8

8.5

$500,000

to

$600,000

6.7

7.5

8.3

$600,000

to

$700,000

6.6

7.3

7.9

$700,000

to

$800,000

6.4

7.1

7.8

$800,000

to

$900,000

6.3

7.0

7.7

$900,000

to

$1,000,000

6.2

6.9

7.5

$1,000,000

to

$1,500,000

5.8

6.5

7.2

$1,500,000

to

$2,000,000

5.7

6.3

6.9

$2,000,000

to

$2,500,000

5.6

6.2

6.7

$2,500,000

to

$3,000,000

5.5

6.1

6.6

$3,000,000

to

$4,000,000

5.4

6.0

6.5

$4,000,000

to

$5,000,000

5.3

5.9

6.4

EXAMPLES OF PROJECTS ACCORDING TO DEGREE OF COMPLEXITY

A-Rate Avg. parks, marinas, rec. areas design

Avg. foundation design

Sewage collection over 24” diam. in rural and lightly built-up areas

Water dist. systems over 16" diam. in rural & lightly build-up areas

Retaining walls

Storm sewers & drains of avg. complexity

Avg. electrical design

Avg. structural design

Ave. mechanical design

Roads, streets, small bridges & fills of avg. complexity

Airports with simple terminal facilities

Airports without terminal facilities

Simple waterfront facilities

Small dams of avg. complexity.

B-Rate Complex electrical design

Complex structural design

Complex mechanical design

Air pollution abatement, control, & testing

Sewage Treatment Facilities

Roads, streets and Asymmetric bridges in urbanized areas

Water treatment facilities of avg. complexity

Avg. telecommunication facilities & systems

Avg. acoustical engineering

Pumping stations

Intercepting & relief sewers

Complex parks, marinas, recreational areas designs

Complex foundation designs

Sewage collection up to 24” diam. in rural and lightly built-up areas

Airports with extensive terminal facilities

Bulk cargo handling facilities, liquid/solid

Pipelines

Ports and harbors

Transmission and distribution (electrical-telephone)

Large dams or complicated small dams

Incinerators, Complex retaining walls

Complex storm sewers and drains

Solid waste disposal design.

C-Rate Electrical designs requiring extensive controls & instrumentation

Unusually complex structural design

Foundation designs requiring unusual approaches or extremely complex soils analysis

Sewage treatment facilities of unusual complexity

Waste treatment facilities of unusual complexity

Complex acoustical engineering

Storm sewers and drains in heavily urbanized areas

Mechanical design -- for structures requiring extensive controls, instrumentation & interfacing

Sewage collection in heavily urbanized areas

Water distribution systems in heavily urbanized areas

Extremely complex bridges

Ports & harbors with complex design consideration

Complex telecommunications facilities & systems

Complex marine engineering

Aeronautical engineering

Rehabilitation projects of a complex nature.

For may engineering projects, it is most difficult to establish an exact rate or degree of complexity. This is due to the many varying engineering functions within any given project. In such cases, the fee can be negotiated on the basis of estimated man hours and an acceptable hourly rate (x a multiplier, if applicable). the fee schedule can then be used as a guide reference to support such a negotiating process.

PAYMENT SCHEDULE

Payment to the A/E for professional services included in the standard Agreement Between the Owner and Architect or Engineer for the Design of Public School Projects (and/or) State Projects shall be in accordance with the following schedule:

Schematic Design Phase 15%

Preliminary Design Phase 35%

Final Design Phase 75%

Bidding Phase 80%

Contract Administration* 100%

• Payment during the construction phase of the remaining 20% of the A/E fee shall be in relationship to the construction progress.

REIMBURSABLE EXPENSE FOR RESIDENT INSPECTOR (CLERK OF WORKS)

The Owner will reimburse the A/E for the cost of a full time project representative in accordance with the following:

(1) Regular Employee -- A regular payroll employee of the firm assigned to the project. Reimbursement at pay rate cost times a multiplier of 2. (Multiplier may vary with project conditions.)

(2) Project Employee - An employee hired specifically for the project. Reimbursement at pay rate cost times a multiplier of 1.5. (Multiplier may vary with the project conditions.)

(3) Contract Employee -- An individual hired specifically for the project as an independent contractor. Reimbursement at the actual contract.

Additional copies of the Recommended Fee Schedule available upon request.

SAMPLE ADVERTISEMENT

NOTICE

The Director of School Administrative District #00 is interested in procuring Architectural/Engineering services for the planning, development and construction of a 10-room elementary school.

Services required, but not limited to, are: Surveys (boundary & topographic); geotechnical (sanitary disposal, foundation design); planning (concept, public participation for local vote); design (building site, and utilities, contract documents); construction (site visitation, construction meetings, testing, as built drawings)..

Interested firms are requested to respond indicating: understanding of project, evidence of ability to perform, profile of personnel, references, and fiscal stability. Responses should he directed to Mr. A. J. Smith, Superintendent, on or before November 10, 1979.

A. J. Smith, Superintendent

School Administrative District #00

415 South Street

Portland, Maine 00000

SAMPLE LETTER (NOTIFICATION - INITIAL INTERVIEW)

Mr. Sam Brown, President

Brown Associates

14 James Road

Augusta, Maine 04330

Re: A/E Interview - Elementary School

Dear Mr. Brown:

Please be advised that the owners A/E Selection Committee request that your firm meet with the Committee for the purpose of interviewing for the professional services involved in the design of the proposed elementary school.

The Committee requests that you meet with them at 7:00 P.M. on Wednesday, November 17, 1979 at the Office of the Superintendent located at 415 South Street, Portland, Maine.

If you have any conflict with this date, please contact me as soon as possible and we will attempt to adjust to your schedule, otherwise, we will look forward to seeing you at that time.

Enclosed you will find additional program information relating to this project. I would suggest that you review this material in detail prior to your interview with the A/E Selection Committee.

Sincerely,

A. J. Smith, Superintendent

School Administrative District #00

415 South Street

Portland, Maine 00000

SAMPLE LETTER (NON-SELECTION, INITIAL INTERVIEW)

Mr. Tom White, President

White Associates

Oak Street

Brunswick, Maine 00000

Re: Elementary School

Dear Mr. White:

Please be advised that the A/E Selection Committee received your letter of interest along with other background information which you forwarded to that Committee. The Committee has reviewed material forwarded by your firm along with many other firms who have expressed an interest in the project.

The Committee has selected several firms to come in for an interview on this project. I regret to inform you that your firm was not one of those selected for interview by the Committee.

However, the Committee wishes to inform you of their gratefulness for the interest you have shown in the project.

Sincerely,

A. J. Smith, Superintendent

School Administrative District #00

415 South Street

Portland, Maine 00000

SAMPLE LETTER (SELECTION - SECOND INTERVIEW)

Mr. Sam Brown, President

Brown Associates

14 James Road

Augusta, Maine 04330

RE: A/E Commission - Elementary School

Dear Mr. Brown:

This letter is to confirm the telephone call made to you on January 4, 1980.

It is our pleasure to inform you that your firm has been selected for final interview to discuss the project in-depth and to negotiate a fee for services.

Interview will be conducted at the Office of the Superintendent located at 415 South Street, Portland, Maine at 9:00 A.M. on Friday, January 4, 1980.

We were all impressed by your presentation and look forward to our next meeting.

Sincerely,

A. J. Smith, Superintendent

School Administrative District #00

415 South Street

Portland, Maine 00000

BUREAU OF PUBLIC IMPROVEMENTS

A/E INTERVIEWS

PROJECT:

DATE:

FIRM NAME:

ADDRESS:

TYPE OF ORGANIZATION: CORPORATION ( ) PARTNERSHIP ( ) INDIVIDUAL ( )

NAMES & TITLES OF PRINCIPALS:

REPRESENTATIVES IN ATTENDANCE:

PERSONNEL IN FIRM:

Registered Architects

Registered Engineers

Draftsmen

Specification Writers

Surveyors

Site Planners

Clerks

Total Staff

How long has firm been organized and what are the professional backgrounds or experience of the principals and/or individuals?

Do you prepare your own designs for

(a) Structural Yes ( ) No ( )

(b) Heating and Ventilating Yes ( ) No ( )

(c) Plumbing Yes ( ) No ( )

(d) Electrical Yes ( ) No ( )

If you do not do your Architectural/Engineering "in house" whom do you intend to have as consultants?

What experience have you had in designing similar facilities?

What projects have you completed which you believe are indicative of your design capabilities?

Who in your organization will be personally responsible or "in charge" of this project?

What is the present workload of your office?

Discuss Project Time Schedule - If you should be commissioned to do this project, can you meet this schedule?

Discuss Project Budget - Do you believe the budget figures (sq. ft. est. or other comparison) to be realistic?

Any additional information or comments:

Request names of individuals involved in previous projects whom the A/E might suggest as reference.

SAMPLE ONLY PUBLIC SCHOOL PROJECT SAMPLE ONLY

FORM OF AGREEMENT FOR PROFESSIONAL SERVICES

THIS AGREEMENT entered into the 20th day of January 1980

by and between the School Administrative District #00 hereinafter called the Owner and Brown Associates, 14 James Road, Augusta, Me. hereinafter called the Architect.

WITNESSETH, that

WHEREAS: The Owner has been authorized to have the Architect provide professional services for the planning, development and construction of a 10-room elementary school at Maple, Maine said services to be performed as enumerated below:

1. A site survey for the purpose of determining sufficiency of site to met requirements for a new elementary school.

2. Prepare a plan or plans for long-range construction that may be viewed by owners that they may select one that is acceptable and meets the owners educational needs.

3. That the selected plan will be drawn to a condition whereby the State Department of Education can give preliminary approval, which will allow the owner to present to the citizens of Naples and/or local authorized agency, for approval of a bond or note to cover construction, equipping and design costs.

4. Prepare budget estimates for the various steps of the proposed building procedure and an estimate of the total cost.

5. If the Architect is authorized to proceed with full design services for this facility, it is agreed that the amount of the fee for services enumerated in this agreement will be credited toward the basic services contract, derived from the Recommended Fee Schedule for Design of Public Improvements .

NOW THEREFORE the Owner and the Architect for considerations hereinafter named, agree as follows:

(1) That the Owner will pay the Architect for the services enumerated above, the following fees (If lump sum, or percentage of construction costs, or hourly rate, so state):

A lump sum fee of $5,000.

(2) The total of the fees, including any pertinent expenses, shall not exceed the sum of

$ 5, 000.00

(3) Payments to the Architect may be made monthly in proportion to work performed, upon the submission of itemized invoices when the fee is on a cost basis.

(4) That the Architect will provide the services enumerated in this Agreement and submit to the Owner the final document and/or reports on or before March 1, 1980

The parties hereto agree to the full performance of the Covenants contained herein.

IN TESTIMONY THEREOF, the parties hereunto have set their respective hands and seals the day and year first above written.

Witnessed By: OWNER

SCHOOL ADMINISTRATIVE DISTRICT #00

By:

Superintendent

Title

BROWN ASSOCIATES

Firm Name

Witnessed By:

By:

President

Title

Approved By:

Director, Bureau of General Services

If a corporation, use the corporate seal and write State of Incorporation. If a partnership, all partners should execute the Agreement.

SAMPLE ONLY SAMPLE ONLY

STATE OF MAINE

AGREEMENT BETWEEN OWNER AND ARCHITECT OR ENGINEER

FOR DESIGN OF PUBLIC SCHOOL PROJECTS

(The word Designer as hereinafter used shall mean Architect or Engineer).

THIS AGREEMENT made the 1st day of April, 1980 by and between the School Administrative District #00 hereinafter called the owner, and Brown Associates, 14 James Road, Augusta, Maine hereinafter called the Designer.

WITNESSETH, that

WHEREAS: The Owner has been authorized to have the Designer prepare plans and specifications for the administration of the construction contract of a project at Maple, Maine

To BE KNOWN AS Elementary School

and,

WHEREAS: The funds available for construction under this agreement for said project are Nine Hundred Thousand Dollars ($900,000) which amount is to include, (1) all construction work and the connecting up of all existing utilities and related services, (2) any other cost directly chargeable to the proper functioning of the building including equipment built-in as a component part of the building, (3) a 10% design contingency; and which sum is not to be exceeded by the Designer in his design except by permission of the owner and the written approval of the Bureau of General Services.

NOW THEREFORE the Owner and the Designer for the considerations hereinafter named, agree as follows:

ARTICLE I - BASIC SERVICE FEE

1.1 That the owner will pay the Designer for his Basic Services a fee of 6.6% of the amount of the contract award adjusted in accordance with the conditions of Article IV. Whether the work be entirely executed or whether its execution be suspended or abandoned in part or in whole, payments to the Designer on his fee are to be made as follows:

1.1.1 Schematic Design Phase

Upon the written acceptance of the Schematic Design Phase by the Owner and the written approval of the Bureau of General Services, an amount equal to 15% of 6.6% of the Designer's approved estimate of the construction cost will be paid.

If the estimated construction cost as required by Article II is within the available funds, a program budget for this schematic phase will be prepared. if the estimated construction cost is more than the funds available, the plans of the schematic design phase shall be rejected. In such an event, the owner, the Bureau of General Services, and the Designer will restudy the design concept to determine if it is feasible to make any changes which will bring the work within the available funds without materially altering the intended use of the project. If such an agreement is reached, a revised schematic design phase shall be prepared by the Designer and submitted to the Owner and the Bureau of General Services for approval.

1.1.2 Preliminary Design Phase (AIA Design Development Phase)

Upon the written acceptance of the preliminary design phase by the owner and the written approval of the Bureau of General Services, the payment on account will be increased to an amount equal to a total of 35% of 6.6 % of the Designer's approved estimate of the construction cost. If the estimated construction cost is more than the funds available, the owner shall have the right to require the Designer to make revisions mutually determined to be necessary in order to bring the construction cost within the funds available and resubmit plans, outline specifications and a revised cost estimate to the owner and the Bureau of General Services for approval.

1.1.3 Final Design Phase (AIA Construction Document Phase)

Upon the written acceptance of the final design phase by the Owner and the written approval of the Bureau of Public improvements, the payment on account will be increased to an amount equal to 75% of 6.6 % of the Designer's approved detailed estimate of the construction cost.

NOTE: * Lump sum may be used in lieu of percentage fee.

This detailed estimate shall be based on the final design and current construction costs. if this estimate exceeds available funds for construction, the Designer, the Owner, and the Bureau of General Services shall re-examine the project and shall consider whether to make any changes or revisions that do not materially alter the intent of the project; to agree upon certain additive alternates that may not be mandatory to the concept of the basic project; or to completely redesign the project to bring the construction cost within the available funds. Except by mutual agreement of the above mentioned parties, any changes, revisions or redesign shall not increase the Designer's fee, since Page 1 of this Agreement stipulates the amount of funds available for construction, except as this amount may be amended by a subsequently approved project budget.

The Designer shall not proceed from any one of the above phases without the acceptance-of the owner and written approval by the Bureau of General Services.

During the design of any of the foregoing phases, no addition to or change in the original project concept shall be made without the written approval of the Owner and the Bureau of General Services. The Designer shall be responsible to notify the aforementioned parties of any such additions or changes even though the construction cost is not increased.

1.1.4 Bidding Phase

After bona fide bids are taken and accepted, the payments on account will be increased to an amount equal to 80% of 6.6 % of the accepted bid; provided, if in the judgment of the Owner and the Bureau of General Services the bids received are not acceptable, no additional percentage above that amount as determined by Article I (Sub-Article 1.1.3) will be paid.

After bona fide bids are received, if they exceed the available construction funds, the Designer-, the Owner and the Bureau of General Services shall review the design plans and specifications and the Designer shall be responsible to make any revisions determined to be necessary to bring the construction cost within the funds available; or, if necessary, to redesign the project. Except under very unusual circumstances and by mutual agreement of the above mentioned parties, no additional fee will be paid to the Designer for such revisions or redesign.

If the agreed upon revisions or redesign that may have been set forth in Article I (Sub-Article 1.1.1, 1.1.2, 1.1.3, 1.1.4) above do not bring the estimated construction cost within the funds available, and it appears impracticable to accomplish this, the owner and the Bureau of General Services shall have the right to suspend or abandon the project and no payments will be made beyond the appropriate amounts approved in Article I (Sub-Articles 1.1.1, 1.1.2, 1.1.3, or 1.1.4).

1.1.5 Contract Administration

Each month, during the period of the construction contract, additional payment will be due, based on the work completed, as indicated by approved contractor's requisitions, until the aggregate of payments reaches an amount equal to 100% of the fee.

ARTICLE II - BASIC SERVICES

2.1 That the Designer will furnish the Owner with:

2.1.1 Schematic Design Phase

(1) in this phase the Designer shall ascertain the requirements of the project by consulting with the Owner and the Bureau of General Services and shall prepare schematic design studies which shall indicate the concept of the project, including the proposed general shape, size, and type of construction. The Designer shall prepare and submit to the Owner and the Bureau a statement of probable construction cost based on area, volume, or other current unit costs, adjusted for the project under consideration.

During this phase the Designer shall furnish sketch evaluations or a perspective, appropriately colored, if desired, of the proposed building which shall become the property of the Owner. If the owner desires an architectural rendering of a "professional" nature the Owner shall so direct the Architect and will reimburse the Architect for the cost of same.

(2) Concurrently with the preparation of the schematic design, the Designer shall determine from competent authority any of the following factors in conflict with the use of the site as proposed: (1) zoning regulations, (2) sanitary codes, (3) health and fire laws, (4) local ordinances, and shall report his findings thereon to the owner when submitting the plans, etc.

2.1.2 Preliminary Design Phase

These drawings shall show the extent of the site; location of project on the site; type of foundation, the proposed floor plans, elevations and working sections; and shall be sufficiently developed so as to fix and illustrate the size and character of the project in all of its essential particulars. The Designer shall furnish outline specifications describing the important item of work including the structural, mechanical, and electric systems, materials and such other essentials as may be appropriate. With the outline specifications, the Designer shall furnish a realistic estimate of construction cost predicated on the outline specifications and the drawings for this phase.

2.1.3 Final Design Phase

These are logical and final developments of the foregoing preliminary design phase. They are a part of the construction contract documents and as such must explain in complete detail the full scope of the work included in the contract and to be performed under the same. A final detailed estimate of the cost of construction predicated on these detail drawings and specifications shall accompany them.

2.1.4 Bidding Phase

The Architect, following the owner's approval of the final design plans and specifications, shall assist the Owner in obtaining bids or negotiated proposals, and in awarding and preparing construction contracts.

2.1.5 Contract Administration

The contract administration phase will commence with the award of a contract and will terminate at the end of the year's guarantee period, which guarantee period shall commence upon the issuance of a certificate of acceptance of a construction project.

The Designer shall be in the first instance, the interpreter of the conditions of the Contract Documents and the impartial judge of the performance thereunder. He shall side neither with the Owner nor the Contractor, but shall use his authority under the Contract Documents to require faithful performance by both. The Designer shall have the authority to reject any work which does not conform to the Contract Documents.

The Designer's administration of the construction contract is understood to include, but is not limited to, the following:

A. To furnish to Owner and Bureau of General Services monthly reports of inspection and progress.

B. To furnish comprehensive reports on necessary change orders with recommendations regarding same.

C. To preside at pre-construction conference and monthly job meetings and provide reports on same to the Owner and the Bureau of General Services.

D. To check and approve partial payment requisitions submitted by contractors.

E. The Designer shall review and approve shop drawings, samples, and other submissions of the contractor only for conformance with the design concept of the project and for compliance with the information given in the contract documents.

F. To make a final inspection of the project with owner, the Bureau of General Services, and the Contractor.

G. To make an inspection prior to expiration of the guarantee period and report on observable defects of material and workmanship requiring correction by the contractor under his contract.

H. To provide additional contract administration as follows:

When authorized by the Owner he shall employ and pay for the services of a Resident Inspector as needed who shall be acceptable to the Owner and the Bureau of General Services, both as to person and salary (See Article III - Reimbursable Expenses).

The Inspector shall make daily reports on forms furnished by the Bureau of General Services. The Designer shall forward these reports promptly to the Owner and the Bureau.

2.1.6 The Designer further agrees that:

A. He will abide by the applicable provisions of the "Instructions to Architects and/or Engineers for the Development of Plans and Specifications for Public School Projects", latest revision, on file with the owner and Designer, and by reference made a part hereof.

B. He will not issue any verbal or written orders for omissions from, additions to, or changes in the construction contract unless and until approved in writing by the owner and the Bureau of General Services.

C. He will furnish the Owner and the Bureau of General Services for approval all sketches and documents pertaining to the schematic design phase specified in Article II within four weeks from the day and year first above written.

Following written acceptance by the Owner and written approval by the Bureau of General Services of the schematic design phase, he shall furnish the Owner and the Bureau of General Services plans and documents pertaining to the preliminary design phase specified in Article II within six weeks after the weeks from approval of the Owner and the Bureau of General Services.

NOTE: Time requirements will be contingent upon the individual project characteristics.

After receiving acceptance by the Owner and written approval from the Bureau of General Services of the preliminary design stage, he shall furnish for final approval the detail plans, specifications and all documents specified in Article II within twelve weeks after written approval of the owner and the Bureau of General Services.

If the Designer finds it impossible to furnish the Owner with plans, specifications, etc., specified above, at the times specified therein, he may make a written request to the owner for an extension of time, setting forth therein the reasons for the request.

If he shall fail to submit drawings or other documents under this agreement at the times specified above, or violate any of the covenants, agreements or stipulation thereof, the owner shall thereupon have the right to terminate this agreement by giving five days notice to him in writing by Registered mail, Return Receipt Requested, to the address furnished the Owner for purposes of correspondence, or

D. If he, doing business as an individual, should die before the completion of the project without heirs or administrators or assigns competent in the owner's judgment to carry the work to completion; then, in either event, all finished or unfinished plans and documents prepared under this agreement, whether in his possession or outside, shall thereupon become the property of the Owner and the Owner shall have the right to immediate possession and use thereof. In such event his estate will be entitled to receive just and equitable compensation for services already satisfactorily performed and accepted.

E. At any time after the execution of this instrument and under circumstances not otherwise provided for herein, the owner may abandon all or any substantial part, temporarily or permanently, of his services for cause not attributable to him. In such event he will be given five days' notice of such abandonment in writing by Registered Mail, Return Receipt Requested, to his address as given for correspondence purposes.

F. In the event of the abandonment notice above, he will be entitled to just and equitable compensation for any uncompensated work satisfactorily performed prior to such abandonment; provided, however, that should the owner re-activate the agreement, in whole or in part within three (3) years of such abandonment, any money, so paid shall be considered as payment on the estimated fee as established on re-activation.

G. In the event that he should die during the period of suspension or he should be unwilling or unable to perform the services required by the agreement at the time the Owner desires to reactivate the agreement, then reproducible copies of all finished or unfinished documents prepared pursuant to this agreement shall become the property of the State and he shall have the right to immediate possession and use thereof.

ARTICLE III - REIMBURSABLE EXPENSES

3.1 Reimbursable Expenses are in addition to the compensation for Basic Services and Additional Services and include actual expenditures made by the Designer, his employees, or his professional consultants for the expenses listed as follows:

3.1.1 With prior written authorization by the Owner and the Bureau of General Services the Designer may be reimbursed for transportation, living and communication expenses incurred by the Designer in the disbursement of any special duties in connection with the work. Normally, transportation, living expenses and telephone expenses will be the responsibility of the Designer.

3.1.2 The owner will furnish for the information of the Designer, or reimburse him for the cost of a survey of the project site, giving the grades and lines, streets, pavements and adjoining properties, boundaries and contour of the site; adequate information as to sewer, water, gas and electric services, test borings or pits, materials, chemical, mechanical or other tests, as required. However, the Designer shall be responsible for the availability of sufficient information relative to subsoil conditions at the project site pertaining to foundation design.

3.1.3 The Owner will reimburse the Designer for the direct salary paid to the Resident Inspector, while working on the project, times a multiplier of (*):said multiplier shall cover all so-called salary expenses.

3.1.4 After the completion and acceptance of the project, and prior to final payment to the Designer, the Designer shall deliver to the Owner or the Bureau of General Services all the tracings of the plans. These tracings shall show all significant revisions made during construction so that they are true "As Built" plans. The Owner or the Bureau of General Services will have reproducible prints made from the said tracings, after which they will be returned to the Designer. The owner may request the Designer furnish directly to him a set of reproducible prints. In such cases the Owner will reimburse the Designer the expense of obtaining the reproducible prints. Such expense shall not include the in-house expense of the Designer in making corrections to the original tracings.

*Multiplier to be negotiated depending upon resident inspector's relationship to central office and project conditions.

3.1.5 The Owner shall reimburse the Designer for the "net expense" for reproducing, postage and handling of drawings and specifications required for bidding purposes. The "net expense" shall be the difference between the actual cost of the Designer less any deposits retained.

ARTICLE IV - ADDITIONAL SERVICES

4.1 The following services are not covered in Article I Basic Service Fee. If any of these additional services are authorized in writing by the Owner, they shall be paid for by the owner as herein listed or as mutually agreed by the owner and Designer.

4.1.1 Providing special analyses of the Owner's needs, and programming the requirements of the Project.

4.1.2 Providing financial feasibility or other special studies.

4.1.3 Providing design services relative to future facilities, system and equipment which are not Intended to be constructed as part of the Project.

4.1.4 Providing Interior design and other services required for or in connection with the selection of furniture and furnishings.

4.1.5 Providing services for planning tenant or rental spaces.

4.1.6 If, at any time after acceptance by the Owner and the written approval of the Bureau of General Services of the design phases, he shall, through no fault of his, be required by the Owner and the Bureau of General Services to make substantial changes in detail plans and specifications, he will make the required changes, and will be entitled to just and equitable compensation; thereof, He, the Owner, and the Bureau of General Services will agree upon the basis of such compensation before beginning such work.

4.1.7 Providing consultation concerning replacement of any work damaged by fire or other cause during construction, and furnishing professional services of the type as may be required in connection with the replacement of such work.

4.1.8 Providing professional services made necessary by the default of the Contractor.

4.1.9 Providing Contract Administration and observation of construction after the approved completion date has been exceeded by more than twenty percent through no fault of the Architect.

4.1.10 Preparing to serve or serving as an expert witness in connection with any public hearing, arbitration proceeding or legal proceeding.

4.1.11 Providing services or professional consultants requested and approved by Owner) for other than normal structural, mechanical and electrical engineering services for the Project.

4.1.12 Prior to final payment of the Designer's fee, adjustment consideration shall be given to contract change orders. Any changes required in the construction for which change orders are necessary, due to omission or discrepancies in the contract plans, shall be so stated in the request for and in the formal change order, and no fee shall be paid on such change orders. Any change orders (either additive-or deductive), which materially affect the construction cost, shall be subject to negotiation concerning the effect on the Designer's fee.

4.1.13 Prior to or during the final phase, fee adjustments for alternates will be considered for the specific circumstances involved. If the alternates are suggested by the Owner, the fee will be paid on the basis of the bid on the original design plus the bids on any alternates accepted or the final estimated construction costs on any alternates not accepted. While if used as a design estimate contingency or to avoid redesign, no fee will be paid on the amount of the additive alternates not accepted.

5.1 The following are modifications of, or amendments to Articles I through IV above, to which the owner and the Designer have mutually agreed.

5.1.1 The Designer shall not assign or transfer any interest in this Agreement except with the written approval of the owner and the Bureau of General Services.

5.1.2 The Owner and the Designer hereby agree to the full performance of the covenants herein.

IN TESTIMONY THEREOF the parties have hereunto executed this Agreement in SEXTUPLET the day and year first above written.

Witnessed By: DESIGNER

Brown Associates

By:

President

Title

Witnessed By: OWNER

School Administrative District #00

By:

Superintendent or Board Chairman

Title

Approved as to Form Approved By:

Legal Counsel for Owner State Director of General Services

Date

History

• STATUTORY AUTHORITY: 5 MRSA §1742, Subsection 6
• EFFECTIVE DATE: July 3, 1980
• AMENDED: June 28, 1985 (EMERGENCY) - Section 1, definition of "Professional Services" deleted and replaced; expired after 90 days
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• NON-SUBSTANTIVE CORRECTIONS: August 13, 1996 - minor spelling submitted by the agency
• LANGUAGE CORRECTED TO ORIGINAL 1980 FILING: March 7, 2000
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 2 BOCA Basic Building Code - 1987

Code Me. R. 18-554 Ch. 2 The BOCA National Building Code {#sec-18-554-ch.-2 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 2}

A. Sub-section 100.1 is deleted and rewritten to read, “100.1 Title: These regulations shall be known as the State of Maine DESIGN code for projects defined as PUBLIC IMPROVEMENTS in Title 5, MRSA, Section 1741.”

B. Sub-section 103.4 shall have the following date inserted: October 2, 1974.

C. Section 109.0 is deleted and replaces with the following: 109.1 “The code shall be under the authority of the Bureau of General Services.”

D. Sections 110.0, 111.0, 112.0, 113.0, 114.0, 115.0, 117.0, 118.0 and 119.0 are deleted and replaced with the following:

“Approvals of General Services will be made through the process established under the Financial Procedures of the Bureau of General Services, Department of Administrative and Financial Services.”

E. Sections 123.0 and 124.0 are deleted.

F. Article 28 is deleted and replaced by the Maine State Plumbing Code.

G. Article 30 is deleted.

H. The National Fire Protection Association Publication N.F.P.A. 101 Life Safety Code as administered by the Maine State Department of Public Safety shall prevail in case of conflict with this code with respect to exiting requirements.

I. With respect to Article 31, The State of Maine Life Cycle Analysis shall be used in lieu of this Code except where this Code (BOCA) is made a part of the State of Maine Life Cycle Analysis document, either directly or by reference.

J. The more stringent of BOCA or N.F.P.A. 101 shall be followed in matters of design of air ventilation and exhaust systems. Exceptions may be made with the approval of the Bureau of General Services and the State Fire Marshal in cases where the use of the two codes causes an overlap of protection that exceeds reasonable protection.

K. The following “Section 1110.1.1 Reroofing” is added.

Adoption of by reference 1981 BOCA Code: February 13, 1984

Adoption by reference of 1987 BOCA Code: February 22, 1988

Copyright information: The BOCA National Building Code/1987: Model Building Regulations for the Protection of Public Health, Safety and Welfare, 10th edition. Copyright 1986 by Building Officials and Code Administrators, International, Inc.

Nonsubstantive revisions by administrative action of the APA Office, Department of Secretary of State, November 30, 1995: Correcting obsolete agency names to current agency names. “By reference” and copyright information added to adoption notes.

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 3 Public Improvements Including Public School Projects

Code Me. R. 18-554 Ch. 3 Public Improvements Including Public School Projects {#sec-18-554-ch.-3 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 3}

Constructed Under the Supervision of The Bureau of General Services in Cooperation with the Department of Education and the Department of Energy Resources Augusta, Maine July 1977 Revised - 1903-84

Section I - History - Laws and Rule Making

I.A. Responsibilities and Duties

I.B. History

Section II - General

II.A. General Instructions

II.B. Life-Cycle Costs

II.C. Energy Performance Index (and Section III)

Section III - Application

III.A. Introduction

A.1.0 Purpose

A.1.1 Goals

A.1.2 Summary

III.B. Energy Performance Index

B.1.0 Energy Performance Index (EPI)

B.1.1 Introduction

B.1.2 Limits

B.2.0 Required Energy Items (Reporting Format)

III.C Analysis of Energy

C.1.0 Approved Systems

C.2.0 Modified Degree Day Procedure/ASHRAE

C.2.1 Table/Degree Days/Maine

C.3.0 Hand Calculations Method for A Cycle Analysis

C.3.1 Base Electrical Load

c.3.2 Comfort Conditioning System

C.4.0 Bin Method

C.4.1 Explanation of Forms

C-1 Heating Form C-2 Cooling Form

C.4.2 Passive Solar Temperature Factor

C.4.3 Heating Energy Form

C.4.4 Cooling Energy Form

C.5.0 Computer Method For Energy Analysis

C.6.0 Passive Solar Energy Gains and Losses

C.7.0 Active Solar Systems

III.D. Life Cycle Costing/Financial Analysis

D.1.0 Introduction

D.2.0 Hand Calculation

D.3.0 Form/Life Cycle Cost-Benefit Analysis (Reporting Format)

D.4.0 Interest Table

Reprinted June, 1886. No changes except technical supplement dated July 19, 1985 is included as Appendix “D”.

Appendix A: Sample Problems

Appendix B: References

Appencix C: Heating Form C-1

Cooling Form C-2

User's Guide Page

Who Shall File for Life-Cycle Analysis 4

Codes and Alternate Conformance 4

Maximum Energy Goals 5

Building Energy (Reporting Format) Form. "LCA-1" 8

Energy Calculations - Modified Degree Day 9

Energy Calculations - Bin Method 15

Energy Calculations - Computer Method 18

Passive Solar Analyzing 19

Active Solar Analyzing 21

Life Cycle Cost (Reporting Format) Form "LCA-2" 24

PREFACES

These instructions pertain to an Act Passed by the 108th Legislature which enacted Sub-Chapter 153, Public Laws of 1977, authorizing the Bureau of General Services to implement the "Energy Conservation in Buildings Act'; and revised in 1981, Chapter 353 L.D. 1363 An Act Concerning Energy Efficiency in Buildings Financed with Public Funds".

These rules and procedures have been promulgated by the Bureau of General Services in consultation and coordination with the Department of Education and Cultural Services and the Office of Energy Resources to achieve these purposes.

Section I History - Laws and Rule making

I.A. Responsibilities and Duties

The law requires that there shall be no public improvement constructed in excess of 5,000 square feet, leased in excess of 10,000 square feet without verification of life cycle costs that will meet or exceed the energy efficiency standards promulgated by the Office of Energy Resources under Title 10, Chapter 214, and the Bureau of Public improvements under Title 5, Section 1764.

The Bureau of Public improvements shall review and approve life cycle costs for the following:

(1) All state government construction work regardless of source of funding.

(2) All state government leased space where more than 5,000 square feet of combined leased area occurs in one building, life cycle costs shall comply.

I.B. History

The 108th legislature required that life cycle costing become a part of public improvement projects to assure that energy considerations, first cost, operating costs and long term costs are consistently analyzed and approved by the Bureau of Public improvements. The law was later amended to include compliance with energy efficiency building performance standards (building envelope energy loss) promulgated by the Office of Energy Resources.

Life cycle energy evaluation required by the Bureau of Public improvements addresses the total energy used by a facility (envelope, equipment, process, etc.). Because of Maine's climatic economic and social conditions, As efficient use of energy in all forms must be promoted in all new, renovated and leased buildings. Energy efficient buildings should be less expensive to own and operate over its expected life.

Section II General

II.A. General Instructions

(1) All public improvement projects must have life cycle analysis developed by the Architect and/or Engineer to select the best alternative total energy system that will serve the project needs at the minimum energy cost over the project life.

(2) Designer has the option of selecting designated band calculation method or computer system to provide the desired comparative information, In the event the designer desires to use other alternative system(s), he must secure prior approval from the Bureau of General Services.

(3) Copies of sample calculations and base data tables showing typical comparative information can be obtained by request from the B.P.I.

II.B. Life Cycle Costs

(1) Other factors to be considered influencing life cycle costs shall include, but not be limited to:

A. Design Code for the State of Maine: As a minimum, energy conservation standards as called for in "The BOCA Basic Energy Conservation Code" or its approved successor. This code is a part of the BOCA Code or its approved successor which is the design code for the State of Maine and implements the recommendations contained in the ASHRAE, Energy Conservation Standards.

B. Maine Office of Energy Resources: As a minimum, the design shall meet the building performance standard set for in O.E.R. "Maine Energy Conservation Building Standards".

C. For these studies, the useful life of the building structure will be assumed at 30 years unless otherwise approved by the Bureau of General Services and/or the Department of Education. The study will reflect the parts of the building such as roof, mechanical and electrical system, exterior finishes and other components as applicable with the appropriate life in accordance with industry standards.

(2) Alternate Conformance: All General Services under 5,000 square feet and leased space under 5,000 square feet, if certified to B.P.I. that construction is in conformance with the "Manual of Accepted Practices" issued by the Maine Office of Energy Resources, will be acceptable in lieu of life cycle analysis.

II.C. Energy Performance Index

See Section III.B. for energy performance indexes to be used in the evaluation of design proposals submitted for public improvement and for public school construction.

Section III Application

III.A. Introduction

The Maine Life Cycle Energy Evaluation Technique

A.1.0 Purpose: The procedures have been developed in response to actions taken by the Maine Legislature requiring the life cycle costing become a part of the evaluation process for public improvements to assure that energy considerations, first cost, operating costs and long term costs are consistently analyzed as public improvement projects are being considered for approval.

A.1.1 Goals: It is readily recognized that the life long energy usage of a building is largely determined by the original design and selection of detail equipment. once a building has been erected, it becomes very expensive and difficult to modify construction to accommodate more energy conservation equipment.

(1) Energy Performance Index (EPI) Target goals have been established to limit total building energy usage.

(2) Analysis of Energy: The Maine Life Cycle Energy Evaluation Technique Program is intended to help the designer quickly evaluate his alternative designs to determine those which may save the most energy.

(3) Life Cycle Economic Analysis: An evaluation format to be used -in the. final design selection. This procedure identifies the initial capital cost and the owning cost (energy cost and equipment maintenance cost) to determine the life cycle costs throughout the project life.

A.1.2 Summary: The purpose of the design standards is not to limit architectural freedom, but is intended to create an awareness that all designs must effectively minimize the use of energy.

(1) Hand Calculations: It is anticipated that the hand calculation method of analyzing the technical portion and the hand calculation method of financial analysis for life cycle costing will be adequate for most of the anticipated construction in the area of public education and state facilities.

(2) Computer Models: Computer programming for the analysis of both or either the technical or financial portions of the study will be acceptable to the Bureau if the Base Model meets the following requirements:

A. The Bureau has on file the operation manual of the program.

B. Base Model to be evaluated by B.P.I. or certified by a third party professional acceptable to B.P.I. and the applicant.

C. Submits unmodified base data runs of the analysis.

(3) Submissions: The following is the minimum requirements for submission of life cycle analysis to B.P.I.:

A. Building Energy Form "LCA-1"

B. Life Cycle Cost Form "LCA-2"

C. Solar Analysis (if applicable)

D. All backup calculations and data for all the above submitted energy and cost analysis.

E. Preparer’s information to include name, affiliation, telephone number, registration (stamp or number), and date.

III.B Energy Performance Index (EPI)

B.1.0 Energy Performance Index (EPI)

B.1.1 Introduction: The goal of this program is to encourage the development of the most energy conservative building that is consistent with current standards, codes and practices for the buildings intended use.

B.1.2 Limits: In no instance will total building designed energy consumption exceed the following standards:

(1) Maximum Energy Goals: Goals are established from recent construction experience utilizing passive and active solar, energy recovery, alternate energy use and other innovated techniques.

A. Elementary and Junior High, Schools 40,000 BTU/s.f.

B. High Schools 45,000 BTU/s.f.

C. Vocational Technical Schools 50,000 BTU/s.f.

D. Office Buildings (12 month use)

i. New Construction 65,000 BTU/s.f.

ii. New Leased/Renovated 70,000 BTU/s.f.

E. Dormitories (9 month use)

i. Regular 45,000 BTU/s.f.

ii. Apartment Style 46,000 BTU/s.f.

(2) Base Energy Usage

A. Forty (40) hour week occupancy time. (The equipment-and lighting usage Shall reflect the hours required to maintain occupancy requirements for 40 hours. As a rule lighting and equipment hours are longer.)

B. The above listed BTU/s.f. limits are based on 100% system and equipment efficiency and shall be increased by an appropriate factor representing seasonal efficiency of the selected system and equipment to reflect estimated annual fuel use.

C. Values based on 8,000 degree days. Additional allowances will be allowed in locations where total degree days exceed 8,000 degree days according to the following table:

8,000 Degree Days 0

9,000 Degree Days 1,750 BTU/s.f.

10,000 Degree Days 3,500 BTU/s.f.

11,000 Degree Days 5,250 BTU/s.f.

12,000 Degree Days 7,000 BTU/s.f.

D. The Director, upon staff recommendations, may increase the above energy goals by 10% for historic buildings hardship occurrences, facility reuse and other non-reoccurring and unique circumstances.

FORM "LCA-1" B.2.0 Required Energy Items (Reporting Format)

Energy Conservation in Buildings

Building Name __________________________________________________

Building I.D. ___________________ Location _____________________________

(1) Average Number of Occupants ______.

(2) Degree Days ___________ /year

(3) Design Temperature ____________________.

(4) Building Area ___________________.

Energy/Point of Use Per Year

(5) Lighting ________________ Base _________ Units #1 __________ MBTU ___

(6) Heating " MBTU

(7) Cooling " MBTU

(8) Water Heating " MBTU

(9) Equipment " MBTU

(10) Other " MBTU

(11) Total Energy " MBTU

(12) Yearly Energy Usage " MBTU Per Building Square Foot Area

#1 Base Units of Energy - KWH of electricity, gallons of oil (#2, #4, #5 or #6), tons of coal, etc. shall be evaluated a N = 100% to determine annual energy consumption (BTU/square foot), Note: Apply factors on Page 8 Val and "N" to develop projected fuel usage (gallons of oil, tons of coal, etc.) to report on Form "LCA-2".

III.C. Analysis of Energy

C.1.0 Approved Systems: The ASHRAE's Modified Degree Day Procedure will be used in analyzing the simple heating and ventilation systems. For those systems which involve computing cooling and night setback loads, internal and solar gains, the bin method or computer modeling is required.

Both methods are included in this document (see C.2.0 and C.4.0).

A sample is included in the Appendix A of the Modified Degree Day calculation.

C.2.0 Modified Degree Day Procedure: (Chapter 43, ASHRAE 1980 System Handbook) The general equation for calculating the probable energy consumption by the modified degree day method is as follows:

E = (Hl x D x 24) (Cd)

(At x N x V)

where

E = Fuel or energy consumption for the estimate period.

Hl = Design heat loss, including infiltration, BTU per hour.

D = Number of 65° F degree days for the estimate period.

t = Design temperature difference, Fahrenheit.

N = Correction factor for equipment efficiency.

V = Heating value of fuel, consistent with H1 and E.

Cd = Interim correction factor for heating effect vs. degree days.

Values of heating load. Hl must be determined for the particular building for which the estimate is being made. It must account for size, building materials, architectural features, use, and climatic conditions. Table 1 gives values for Cd and N.

Table I

Correction Factor Vs. Degree Days Interim Factor Cd

Design Degree Days 6,000 7,000 8,000 9,000 l0,000

Factor Cd 60 .64 .68 .71 .71

The correction factor N is empirical and should not be confused with any ratings for "seasonal efficiency" The following values shall be used:

N = 1 - Electric Resistance Heating

N = .75 - Pressurized Gas Fired Boiler or System

N = .70 - Oil Fired Boiler with Air Atomizing or Flame Retention

Burner

N = . 65 - Atmospheric Gas Fired System

N = .50 - Coal Fired Boiler Conventional Stoker

N = .65 - Coal Fired Boiler Pressurized Forced Draft Firing System

N = .55 - Old Oil Fired Systems

Note: If other values are to be used, submit verification and backup data.

C.2.1 Table/Degree Data/Maine

Maine Monthly and Annual HEAting Degree Day Normals

Station

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

annual

Bar

Harbor

47

49

193

459

741

1153

1280

1137

998

669

381

133

7240

Caribou

84

122

327

657

1008

1516

1683

1459

1283

849

474

170

9632

East

Port

117

109

246

499

762

1175

1314

1162

1048

744

499

258

7833

Farm-

ington

40

75

239

555

891

1361

1500

1296

1107

705

364

104

8237

Gard-

iner

29

51

204

502

816

1274

1414

1232

1060

681

364

99

7726

Green-

ville

86

119

321

639

978

1460

1628

1417

1249

837

481

172

9387

Houl-

ton

61

91

271

592

936

1426

1584

1369

1181

780

409

127

8827

Lewis-

ton

12

33

163

456

798

1234

1383

1196

1035

657

331

76

7374

Madi-

son

29

59

214

530

864

1339

1482

1285

1101

702

370

96

8071

Millin-

ocket

38

65

245

580

912

1398

1553

1352

1147

741

398

104

8533

Old Town

FAA

53

83

273

595

900

1380

1531

1347

1159

756

431

140

8648

Port-

land

27

55

200

493

792

1218

1349

1179

1029

669

381

106

7498

Pres-

que Is.

66

98

283

614

969

1473

1624

1408

1231

804

431

134

9135

Ripog-

enus Dam

76

106

277

605

957

1466

1637

1450

1265

831

471

147

9288

Rock-

land

41

57

195

481

765

1175

1293

1142

1008

672

397

127

7353

Rum-

ford

Pwr.

Plant

36

64

216

521

858

1305

1438

1246

1076

693

361

98

7912

Water-

ville

Pump

Station

20

32

181

477

810

1277

1417

1224

1039

642

319

75

7513

Wood-

land

37

82

218

539

846

1305

1454

1294

1107

723

397

119

8121

C.3.0 Hand Calculations Method for Life Cycle Analysis

DATE: ARCHITECT ENGINEER: __________________

LOCATION: DATA OBTAINED BY:

Energy needs for buildings can be divided into three basic categories: (1) Base Electrical Loads; (2) Comfort Conditioning System; (3) Domestic Hot Water. The calculation sequence has been segmented accordingly. The analysis must start with an understanding of the proposed building usage and will require detailed data on the sub-components of the electrical and HVAC system. This detailed data should be available as a result of (1) preliminary design and (2) analysis of methods that will optimize energy conservation within the building.

C.3.1 Base Electrical Load: This section analyzes the annual electrical energy consumption due to the lighting systems HVAC system, (fans, pumps, etc.), exhaust fans, kitchens, shops, elevators, and other specialized operations. A "guideline" comment follows each topic area to clarify the type-of data sought. The diversity factor represents the fact that lighting, for instances is rarely all on or all off.

(1) Lights, Miscellaneous Power Usage:

A. KW connected ______________ KW

B. Usage _____ hrs./day x ___ days/week ______ hours/month 12 month/year = ___________ hours/year

C. Diversity __________ %

D. ________ KW x ________ Diversity = KW

E. ________ KW x ________ hours/year = KWH/year

Guidelines:

i. Example: 8 hours/day + 4 hours for lunch and cleanup = 12 hours/day.

ii. Weeks/Month - 4.3

iii. 80 - 100% Diversity

(2) Air Distribution System Electrical Usage (Heating, Cooling and Ventilation):

A. HP connected ________ HP

B. 746 KW/HP x HP =

KW Efficiency ------ %

C. Diversity _________ %

D. Occupied __________ hours/month

E. Unoccupied _________ hours/month

F. _________ KW x ____________ Diversity = __________ KW

G. _________ KW x ______ hours/month = _________ KWH/month

H. _________ KWH/month X ________ month/year = _______ KW/year

Guidelines:

i. Hours Operation: 400 hours/month or 4000 to 4800 hours/annum.

ii. 80% Diversity

iii. Will system operate during unoccupied hours?

(3) Exhaust Fan System Usage:

A. HP connected HP

B. .746 KW/HP x HP = KW

Efficiency

C. Occupied .__________. hours/month

D. Diversity %

E. Usage: 25% x Occupied Hours hours/month

F. _________ KW x Diversity KW

G. _________ KW x _____ hours/month ______ KW/month

H. _________ KWH/month x ------- month/year KWH/year

Guidelines:

i. Hours Operation: 300 hours/month 3600 to 4000

ii. 100% Diversity

iii. Will system operate during unoccupied hours?

4. Elevator Usage (if required)

A. HP connected ___________

B. .746 KW/HP x ._________. HP = KW

Efficiency

C. Occupied ._______. hours/month

D. Diversity %

E. Usage: 25% x occupied hours = hours/month

F. _______ KW x _______ Diversity = KW

G. _______ KW x hours/month = KW/month

H. _______ KWH/month x month/year KWH/year

Guidelines:

i. 50% Diversity for office Buildings

ii. 25% Usage for Office Buildings

C.3.2 Comfort Conditioning System: Similar to the previous section, this section emphasizes the derivation of the annual energy consumption for the HVAC system for space beating and cooling. But since heating and cooling is functionally related to ambient environment, a different technique must be utilized to derive annual energy temperature differential between inside and ambient a separate calculation using "bin" method is necessary. The method statistically arranges weather data in "bins" by day period according to 5° F increments and numbers of hours per year.

(1) Building Load Information

A. Winter Heating - Outside Design _______ F°D.B.

Inside Design ______ F°D.B.

Heat Loss BTUH

Ventilation

CFM x 1.08 x °FTD = BTUH

Total Heat Loss BTUH

B. Summer Cooling - Outside Design °F.D.B. °F.W.B.

Inside Design °F.D.B.

Solar Heat Gain BTUH

Transmission BTUH

Motors BTUH

Lights BTUH

People BTUH

Other Heat Sources BTUH

Ventilation BTUH

CFM x 4.5 x Ah** BTUH

Total Heat Gain BTUH

*Notes: This load information should include both sensible and latent heat requirements.

**AH - Enthalpy at Saturation BTU Per Pound of Dry Air

C.4.0 Bin Method: See Chapter 43, ASHRAE 1981 Systems Handbook for General Reference

C.4.1 Explanation of Forms

C-1 Heating Form (see Appendix C)

C-2 Cooling Form (see Appendix C)

Column 1 Three eight hour periods during the day.

Column 2 Average monthly temperature from weather data.

Column 3 Temperature difference equals temperature inside minus (AVG) temperature outside.

Column 4 "U" value times area equals heat gain or heat loss per degree of temperature, including infiltration & ventilation or greater of the two.

Column 5 Column 3 times Column 4

Column 6 Hours listed in the weather data of each "bin' of temperature.

Column 7 Column 5 times Column 6

Column 8/8a Peak internal load in MBTU: Peak solar load in MBTU.

Column 9/9a Annual Factor in a percentage of the time that the internal available internal & solar gain must be rejected during day occupied cycle.) or solar loads occur, and are useable. (Note: A percentage of the

Column 10 Estimated hours of internal load.

Column 10a Same as Column 6. (For C-2 Cooling Form Only)

Column 11 Column 8 x 9 x 10.

Column 11a Column A x 9a (For C-1 Heating Form Only)

Column 12 Column 7 + 11 + 11a.

C.4.2 Passive Solar

Values for t in solar analysis shall be determined using the three eight hour periods above.

C.4.3 Heating Energy

(1) Electric Consumption

A. MBTU/YR. = MBTU/KWH = KWH/YR.

Guidelines:

(1) Resistance Heating 3.413 MBTU/KWH

(2) Oil Consumption

A. MBTU/YR. x MBTU/GAL. = GAL/YR.

Boiler Efficiency

Guidelines:

i. #2 oil = 140 MBTU/GAL.

(3) Energy Performance Index (Annual)

A. Electrical Heating Consumption.

i. KW/HR: Gross Sq. Ft. = KWH/SQ.FT.

ii. KWH/SQ. FT. x 3.413 MBTU/KWH MBTU/SQ. FT.

B. Heating Consumption (Oil Fired)

i. _________ GAL.: x ________ Gross Sq. Ft. GAL/SQ. FT.

ii. _________ KWH/SQ. FT. x ________ MBTU/GAL. = . MBTU/SQ. FT.

C.4.4 COOLING ENERGY

(1) Electrical Consumption

A. MBTU/YR : 12 MBTU/TON = _________ TON HR/YR.

B. TON/HR/YR x KW/TON = KWH/YR.

Guidelines:

i. Reciprocating Equipment 1.2 to 1.7 KW/TON

ii. Centrifugal Equipment .75 to 1.1 KW/TON

(2) Absorption System Consumption (Oil Fired)

A. MBTU/YR. : 12 MBTU/TON TON/HR/YR.

B. TON/HR/YR. x GAL/TON = GAL/YR.

Guidelines:

i. High Pressure Absorption .1 GAL/TON

ii. Low Pressure Absorption .13 GAL/TON

(3) Energy Performance Index (Annual)

A. Electric Cooling Consumption

I. KWH : Gross Sq./Ft. = KWH/Sq./Ft.

ii. KWH/SQ.FT. x 3,413 MBTU/KWH = MBTU/Sq./Ft.

B. Absorption System Consumption (Oil Fired)*

i. GAL x 140 MBTU = MBTU/HR.

ii. MBTU: Gross Sq. Ft. = MBTU/Sq./Ft.

*Absorption system run by 'waste' heat or by solar heat should not be included.

C. Annual Cost for Each System: Electric cost can be calculated on a demand

commodity. Rate schedule or an average cost per KWH.

Guidelines:

i. Electrical Cost

KWH/YR. x cents/KWH = $ YR.

ii. Fossil Fuel Cost

a. Fuel Oil Cost

GALS/YR x cents/GALS = $ YR

b. Coal

TON COAL/YR. x $/TON = $ YR.

c. Steam

POUNDS OF STEAM/YR. x cents/POUND = $ YR.

C.5.0 Computer Method for Energy Analysis

(1) Computer programs that provide a simulated analysis of a facility for a complete year of usage will be considered by B.P.I. The computer base model will be evaluated by B.P.I. or certified by a third party professional acceptable to B.P.I. and the applicant. The following data must be submitted and kept on file at B.P.I.:

A. Program Operation Manual.

B. A dump of the basic computer program or submission of base data used in the program.

C. A computer run (unmodified) of a base data building. Base data building to be selected by B.P.I.

(2) Computer Programs Now Acceptable

A. "ECM 5" currently running on the University of Maine at Orono main computer.

B. "BPI Model" currently being run on the Bureau of General Services in-house computer "TRS 80".

C.6.0 Passive Solar

This section analyzes the energy gains and losses due to southern exposed glass. The windows analyzed under this section should not be included in the previous sections, but shall be added on to obtain the total energy usage in the building.

(1) EQ (1) Qtotal Qgain - Qcond

Where:

Qtotal = net energy, if positive then it represents a gain in energy and shall be subtracted from the building energy load; if negative then it represents a loss of energy and shall be added to the energy load.

(2) EQ (2) Qgain = (B) (C) (ST) (A) (D)

Where:

Qgain = solar gain through southern exposed glass.

B = Btu/sq. ft. day, see solar intensity table.

C = Percentage of possible sunshine, see table.

ST = Percentage of solar transmittance, obtained from window manufacturer.

A.= Area of glass.

D = Days in month analyzed.

(3) EQ (3) Qcond = (U1 t1 + U2 t 2 + U2 t3 ) (8) (D) (A)

Where:

Qcond = Energy conducted through the glass.

U 1 = U factor during the day.

U 2 = U factor during the night (if different from U).

t 1 = Inside temperature minus average outdoor temperature during the day.

t 2 = Inside temperature minus average outdoor temperature during early morning period.

t 3 = Inside temperature minus average outdoor temperature during the night.

D = Days in month analyzed.

A = Area of glass.

Values of t are determined using the BM method (see Section C.4.2.)

SOLAR INTENSITY TABLE

PORTLAND

Month *BTU/square foot day **% of Sunshine

January 860 55

February 1,044 59

March 1,113 56

April 1,051 56

May 947 56

June 904 60

July 924 64

August 1,092 65

September 1,153 61

October 1,138 58

November 825 47

December 735 53

• Obtained from Passive Solar Design Handbook. Volume 2.

** Obtained from Local Climatological Data for Portland, Maine.

Example Problem: For a southern exposed double glazed window,

for the month of January.

January t1 = (68-27) = 41

t2 = (68-18.7) = 49.3

t3 = (68-21.4) = 46.6

B = 860, C = .55, ST = .73

A = 20

U1 = .53

U2 = With panel of R-7 placed over the windows at night - U2 = .14.

EQ (2) Qgain = (B) (C) (ST) (A) (D)

= (860) (.55) (.73) (20) (31) = 214,080 BTU/month

With Insulated Panel:

EQ (3) Qcond = U1 t1 + U2 t2 + U2 t3) (8) (D) (A)

= (.53 x 41 + .14 x 49.3 + .14x46.6) (8) (31) (20)

174,374 BTU/month

EQ (1) Qtotal = Qgain - Qcond

= 214,080 - 174,374 = 39,706 BTU/month gain.

This value is to be subtracted from the buildings total energy usage.

Without Insulated Panel:

EQ (2) Qgain = 214,080

EQ (3) Qcond = (41 + 49.3 + 46.6) (.53) (8) (31) (20)

= 359,883 BTU/month

EQ (1) Qtotal = Qgain = Qcond

= 214,080 - 359,883 = -145,803 BTU/month loss.

This value is to be added to the buildings total energy usage.

C.7.0 Active Solar Analyzing

All active solar systems shall be analyzed separate from this rule and submitted to the Bureau of General Services for review. The designer must compare alternate combinations of heating systems and document. An acceptable Life Cycle Analysis shall include, but not be limited to, the following scope: 10% cost of money, total system cost, system efficiency, total estimated available energy/sq. ft. of panel, total estimated useable energy, component life, and operational and maintenance cost.

Exclusions to this rule are as follows:

(1) Financing of the total system is from other than State funds.

(2) The system is for education purposes and accepted in writing by DECS,

Dept. of Educational and Cultural Services. (Single panel for science lab etc.)

Building energy credits would be applicable at such time the actual cost of the system is known.

III.D. Life Cycle Costing/Financial Analysis

D.1.0 Introduction

Life Cycle Costing is a conceptual extension of the conventional method for awarding contracts to the lowest bidder. Instead of focusing just on the initial costs Life Cycle Costing takes into account the additional costs for energy, operation and maintenance , and system replacements. In this manner, all costs associated with building ownership are fully taken into account when selecting the best alternative design. The overall objective of Life Cycle Costing is more extensive than conventional first cost analysis since it seeks to evaluate the quality of the building over it s lifetime. This concept is especially important when energy costs are rapidly increasing.

D.2.0 Hand Calculation

The Life Cycle cost evaluation has been established utilizing the uniform annual cost model.

The annual cost model has been developed by forecasting all cost, whether positive or negative, involved with the total system over its projected life. These costs are divided into annual payments taking into account the time value of money for an appropriate interest rate associated with the project.

For the purpose of our project, a 10% rate has been assigned. We have also assigned a 30 year life to the building structure.

Mathematically we are using a uniform recover rate as follows:

A = P (1+i)Y)*

(1+i)Y-1)

A = uniform end of year sum

P = present value of today’s cost.

i = interest rate for period.

y = number of years.

Table has been included with values for given interest and applicable years,

*Material from text by K and G Associates, Box 7596, Inwood Station, Dallas, Texas 75209.

State of Maine FORM "LCA-2,"

DATE

D.3.0 Life Cycle Cost Benefit Analysis PREPARED BY (Reporting Format)

PROJECT DISCOUNT RATE

Column Identifi-

cation

A

B

C

D

E

F

G

Item

Estimated

First Cost P

Est. Life

UCR

(P-A)

Factor

salvage

(1st cost salvage UCR=A

salvage

x

interest

remarks

Site

Development

Building

Structure

(All items

exclusive of

those listed

below

Roofing

Conveying

Systems

Mechanical

Electrical

Equipment

Built-In

Total Estimated

Construction Cost

Sub

Totals

COL. E

Energy Usage

Annual Cost

COL. F

amt.

type

Heating Fuel (oil, gas, coal, elec.

Electricity (except heat)

Sewer

Insurance

Taxes (Or Loss)

Maint. & Repair

Maint. Contracts

Other

Total Uniform

Annual Sum

Uniform Annual Sum/Sq. Ft.

AIA GROSS

SQ. FT

---

D.4.0 Interest Table

10% Interest Factors

Year SCA SPW UCA USF UCR UPW

Y P-F F-P A-F F-A P-A A-P

1 1.100 .9091 1,000 1.000 1.000 0.909

2 1.210 .8264 2,100 .4762 .5762 1.736

3 1.331 .7513 3,310 . 3021 .4021 2.487

4 1.464 .6830 4,641 . 2155 .3155 3.170

5 1.611 06209 6,105 .1638 .2638 3.791

6 1.772 .5645 7,716 .1296 .2296 4.355

7 1.949 .5132 9,487 .1054 .2054 4.868

8 2.144 .4665 11.44 .0874 .1874 5.335

9 2.358 .4241 13.58 .0736 .1736 5.759

10 2.594 .3855 15.94 .0628 .1628 6.144

11 2.853 .3505 18.53 .0540 .1540 6.500

12 5.054 .1978 40.54 .0247 .1247 8.022

15 5.560 . 1799 45.60 .0219 .1219 8.201

19 6.116 .1635 51.16 .0196 .1196 8.365

20 6.727 .1486 57.28 .0175 .1175 8.514

21 7.400 .1351 64.00 .0156 .1156 8.649

22 8.140 .1228 71.40 .0140 .1140 8.772

23 8.954 .1117 79.54 .0126 .1126 8.883

24 9.850 .1015 88.50 .0113 .1113 8.985

25 10.84 .0923 98.35 .0102 .1102 9.077

30 17.50 .0573 164.5 .0061 .1061 9.427

35 28.10 .0356 271.0 .0037 .1037 9.644

40 45.26 .0221 442.6 .0023 .1023 9.779

45 72.89 .0137 718.9 .0014 .1014 9.863

50 117.4 .0085 1164. .0009 .1009 9.915

60 304.5 .0033 3035. .0003 .1003 9.967

70 789.7 .0013 7887. .0001 .1001 9.987

50 2048. .0005 20474. .0001 .1001 995

90 5313. .0002 53120. .0000 .1000 9.999

APPENDIX A

SAMPLE PROBLEMS

A copy of sample problems is available upon request.

Contents Page

Hand Calculation - Modified Degree Day procedure 22.1 - 22.11

Hand Calculation - Bin Method 22.12 - 22.28

Computer Method 22.29 - 22.40

Weather Data 22.41 - 22.50

APPENDIX B

REFERENCES

BOCA The BOCA Basic Energy Conservation Code (Maine Design Code)

ASHRAE 55-74 - Thermal Environmental Conditions for Human Occupancy

62-73 - Natural and Ventilation

90-75 - Energy Conservation in New Building Design

ASHRAE Handbook of Fundamentals - Latest Edition

ASHRAE Systems Handbook - Latest Edition

IES: Lighting handbook - Latest Edition

NBSI 74.452 Evaluation Criteria for Energy Conservation in

New Buildings; U. S. Department of Commerce,

National Bureau Standards

KG Assoc. Life Cycle Cost Benefit Analysis

Passive Solar Design Handbook, Volume Two of Two Volumes - January 1980.

Design and Performance of Passive Solar Heating Systems for Maine, By Chad P. Clark, Department of Mechanical Engineering April 1981.

Local Climatological Data, National Oceanic and Atmospheric Administration

APPENDIX C

SAMPLE FORMS

C-1 Heating Form

C-2 Cooling Form

C-2 COOLING FORM

JOB:_________________________ COOLING DESIGN TEMP. : ______________

DELTA T :____________________ BLDG TYPE: _________________________

SPACE TEMP.: _________________ WEATHER STA.:_____________________

DATE: ____________________ BY: ____________________

COOLING LOAD

INTERNAL LOAD

SOLAR LOAD

Period of day (1)

Avg. Temp (2)

T= Ti -To

(3)

UxA

Heat

Gain

MBTU

(4)

MBTU

(5)

Hr.

In

Bin (6)

Annual

MBTU

(7)

Peak

inter-

nal

Load

MBTU

(8)

Annual

Factor

(9)

Hrs.

in

Bin

(10)

Annual

MBTU

(11)

Peak

solar

Load

(8a)

Annual

Factor

(10a)

Annual

MBTU

(11a)

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

Total

Total

Total

Note: Heating Form C -1, solar and internal annual MBTU for a building must be subtracted from the heating annual MBTU during the hours they occur and if more solar and internal consumption remains, those annual MBTU for solar and internal annual MBTU must be added to the total MBTU for cooling.

C-1 HEATING FORM

JOB:_________________________ HEATING DESIGN TEMP. :______________

DELTA T :____________________ BLDG TYPE: _________________________

SPACE TEMP.: _________________ WEATHER STA.:_____________________

DATE: ____________________ BY: ____________________

HEATING LOAD

INTERNAL LOAD

SOLAR LOAD

NET LOAD

M

O

N

N

T

H

Period of day (1)

Avg Temp (2)

T= Ti -To

(3)

UxA

Heat

loss

MBTU

(4)

MBTU

(5)

Hrs.

In

Bin (6)

Annual

MBTU

(7)

Peak

inter-

nal

Load

MBTU

(8)

Annual

Factor

(9)

Hrs.

in

Bin

(10)

Annual

MBTU

(11)

Peak

solar

Load

(8a)

Annual

Factor

(10a)

Annual

MBTU

(11a)

(12)

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

2-9

10-5

6-1

Remarks:

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996

NON-SUBSTANTIVE CORRECTIONS: August 13, 1996 - minor spelling submitted by the agency.

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 4 Standard 62-1981R "Ventilation for Acceptable Indoor Air Quality Adoption

Code Me. R. 18-554 Ch. 4 Standard 62-1981R "Ventilation for Acceptable Indoor Air Quality" Adoption in Public School Design & Construction {#sec-18-554-ch.-4 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 4}

RULE

The design and construction of all new or substantial renovated public schools shall comply with the requirements of ANSI/ASHRAE Standard 62-1981R "Ventilation For Acceptable Indoor Air Quality", hereinafter referred to as the Standard.

EXISTING USE CONTINUED

Except as otherwise provided for in this rule, this rule shall not require the removal, alteration or abandonment of, nor prevent continued use of an existing mechanical ventilation system.

APPLICATION

Case 1. New Construction

New buildings and/or building additions shall be designed and constructed with ventilation systems in accordance with the Standard.

Case II. Substantial Renovations

Where buildings are being substantially renovated, ventilation shall be provided in accordance with the Standard.

Case III. Change of Use

Where buildings or spaces are altered for uses other than those for which they were originally designed, ventilation shall be provided in accordance with the Standard.

Case IV. Existing Ventilation Systems

Where existing ventilation system(s) must be altered or-replaced as a consequence of the building renovation or alteration design, the existing ventilation system(s) or replacements) shall be brought into compliance with the Standard. For the purposes of this case, only those ventilation system(s) affected within the scope of the renovation or alteration project need be considered.

Case V. Known Air Quality Problem

If an air quality problem exists as identified through technical analysis/evaluation, quantitative testing or qualitative assessment by owner/occupant in a building being altered or renovated, those area(s) of the building being altered or renovated shall be provided with a ventilation system compliant with the Standard.

DEFINITIONS

(continued on next page)

BUILDING - A building shall be defined as a structure used or intended for supporting or sheltering any use or occupancy. For application of this rule for renovations or alterations, each portion of a building separated from other portions by fire walls complying with section 908.0 of the BOCA Code shall be considered a separate building. Where a structure consists of multiple buildings attached contiguous to one another but not separated by a fire walls the appropriate building area for determining replacement value shall be as ruled by the Bureau of General Services.

Substantial renovation - Under this rule shall be defined as renovations the cost of which meet or exceed 50% of the replacement value of the building in which such renovations are to occur. The Standard - use of this term shall refer to ASHRAE Standard 62-1981R

STANDARD 62-1981R "Ventilation, for Acceptable Indoor Air Quality"

Adoption -in Public School Design & Construction

FACT SHEET

A. Statutory Authority for Rule-Making: Title 5 MRSA Sect. 1742 para. 6A

B. Principal Reasons for Rule:

(1) To insure the application of latest standards to provide acceptable and healthful indoor air quality in public schools.

(2) Unify codes by mandating the application of a common standard in both state owned public buildings and public schools.

C. Analysis of Rule:

The technical basis for the revised ventilation air quantities necessary for acceptable indoor air quality shall neither be further evaluated or disputed herein as the ASHRAE project committee responsible for the preparation of the standard is the recognized authority on the subject. This information is adequately treated within the text of the new ASHRAE Standard 62-1981R.

The revised outdoor air quantities. may be expected to have an impact on the following:

(1) Capital or first costs necessary to the construction of a public school addition or renovation.

(2) Annual operating costs of public schools.

(3) Estimated energy performance indexes and the maximum energy consumption goal compliance promulgated within the Life Cycle Analysis document authorized under Title 5, MRSA Section 1764.

In order to assess these impacts the following process has been employed:

(a) Review of existing technical analysis literature on the subject.

(b) Energy calculations using prescribed BPI estimating procedures to establish upper bounds on incremental energy and capital cost increases in going from a minimum of 5 CFM/person to 15 CFM/person

(c) Generalization of parametric analysis to arrive at an estimated total fiscal impact of the rule statewide at current levels of construction and energy costs.

EXISTING LITERATURE

An article prepared by Joseph H. Ito and Cecil Meyer published in the ASHRAE JOURNAL September 1988 entitled Analysis: The HVAC Costs of Fresh Air Ventilation" dealt specifically with the issue of changes in annual energy operating and first cost resulting from increased minimum outside air ventilation. Simulations performed were for typical office space. To summarize, percentage change in heating energy for climatic zones with degree days similar to Maine's may- be expected to increase by 3 to 5 percent in going from 5 CFM/person to 15 CFM/person. Added capital costs to provide additional ventilation air would range from 2.5¢/SF to 12¢/SF.

ENERGY CALCULATIONS (MAINE)

Employing the "BIN" methodology detailed in the state's Life Cycle Analysis document and recorded temperatures from the D.O.D.'s engineering and weather data manual, the incremental energy difference necessary to raise 5 cubic feet of air per minute (CFM) to 15 CFM from the outdoor temperature to a nominal indoor temperature of 70°F for the appropriate time duration of that temperature coincident with normally occupied school periods was calculated, for three discrete climatic zones in Maine. The results are summarized in the table below:

CLIMATE ZONE

Outdoor AN South Central Northern

(CFM/person) (BTU/person - year)

5 207000 226000 227000

15 622000 679000 801000

Increase 415000 453000 574000

4.3 gals/person/yr 4.7 gals/person/yr 5.9 gals/person/yr

Given that the Department of Education rules for construction dictate approx. 105 square feet per person (with a 10 percent plus or minus variation for type and size) these results translate into a 4000 to 5000 BTU/SF-YR increase for the added ventilation. Assuming nominal efficiencies of 70% and use of #2 oil an fuel source with current fuel prices at $0.90/gallon gives operating cost increases in the range of 4 to 5 cents per square foot per year.

Current energy standard require that the prototypical elementary school in Maine must be designed within an energy performance index of 40,000 BTU/ft²/yr. The resultant cost breakdown (on average) at given energy prices of 8¢/KWH and $0.90/gallon of #2 oil is:

Current Ventilation Rates

BTU/SF/YR Cost/SF

Fuel Oil 23,000 $.214

Electricity 17,000 $.397

---

Total 40,000 $0.611

The 4,000-5,000 BTU/FT2 per year for the proposed additional ventilation air therefor represents a 17 to 22% increase in heating energy use and costs if a one to one relationship between percentage increase in minimum outside air ventilation and the increases in heating energy use and cost is assumed. These figures are therefor an "upper bound" estimate of the impact of the change. Standard ventilation systems are normally recirculant and when in economizer operation already provide greater amounts of outdoor air than the current minimum of 5 CFM . A "model" school was analyzed with the following results:

Assumptions: Area: 25,000 ft²

Occupants: 240

Lighting, Misc. power: 50 KW

Bldg. heating load: 4,000 BTU/hr°F

Operation: typical elementary school schedule

Solar gains: none

Heating Energy Usage

(MBTU per year)

Ventilation Rates Southern Central Northern

(CFM/person)

5 488,200 539,800 653,200

15 550,400 610,400 746,300

Increases percentage +12.8 + 13.1 +14.3

BTU/SF/YR 2490 2830 3730

Cost 2.3¢/SF 2.6¢/SF 3.5¢/SF

these increases fall within the range predicted for office buildings and the theoretical maximum. Future energy performance "budgets" and Life Cycle Analysis reviews under Title 5 MRSA Sect. 1762 should incorporate allowances within this range. The percent increase in total operating cost ranges from 4 to 6 percent.

D. Fiscal Impact

Current levels on construction costs are on the order of $60 million dollars per year for approx. 650,000 square feet. Using 3 cents per square foot increase in fuel oil cost gives an annual operating cost increase of $19,500 statewide for all new construction.

Capital cost increases to provide greater ventilation rates would encompass only incremental additional to already required systems costs, i.e. boiler and coil capacities, louver sizes, controls, etc. Using the estimate of $.35/Ft² results in an increase in budget of $250,000 statewide, less than a percent of the total annual construction budget.

Bringing all operating and first costs back to a net present worth, assuming construction levels are maintained at the current rate with no escalation rate in fuel costs, would suggest the full fiscal impact on new school budgets statewide would roughly be $500,000 per year.

EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996

NON-SUBSTANTIVE CORRECTIONS: August 13, 1996 - minor spelling submitted by the agency.

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 6 1981 Standards of Construction for Making Buildings Usable by Physically Handicapped

Code Me. R. 18-554 Ch. 6 1981 Standards for Construction for Making Buildings and Facilities Usable by the Physically Handicapped {#sec-18-554-ch.-6 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 6}

The Bureau of General Services hereby implements the entire manual called the American National Standard Specifications for Making Buildings and Facilities Accessible to and Usable by Physically Handicapped People: ANSI A 117.1-1980, which is published by the American National Standards Institute, Inc., 1430 Broadway, New York, New York 10018.

History

• Statutory authority: 25 M.R.S.A. Section 2702-A.
• Effective date: February 22, 1982
• Nonsubstantive corrections by the APA Office, Department of the Secretary of State, November 30, 1995: Obsolete reference to the Bureau of Public Improvements updated to Bureau of General Services.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 8 Alternative Project Delivery Methods

Code Me. R. 18-554 Ch. 8 Alternative Project Delivery Methods {#sec-18-554-ch.-8 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 8}

Summary: This chapter explains procedures the Bureau will follow in undertaking contracts using other than the traditional design-bid-build method for the construction of public improvements.

SECTION 1: Purpose and Scope 1

SECTION 2: Definitions 2

SECTION 3: Alternative Delivery System Review Panel 4

SECTION 4: Request for Qualifications, RFQ 6

SECTION 5: Request for Proposals, RFP 8

18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

554 BUREAU OF GENERAL SERVICES

Chapter 8: ALTERNATIVE PROJECT DELIVERY METHODS

SECTION 1 – Purpose and Scope

Summary: This section states the purpose and scope of the Bureau’s rule establishing procedures for undertaking contracts using other than the traditional design-bid-build method for the construction of public improvements.

The purpose of this Chapter is to implement the Director’s authority to establish procedures, in addition to those established by statute, for procuring and awarding contracts using alternative project delivery methods. This Chapter does not apply to the award of contracts for public improvements under the traditional design-bid-build method. The rules for public school construction using alternative project delivery methods are addressed separately.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §1743
• EFFECTIVE DATE: December 31, 2006
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 8: ALTERNATIVE PROJECT DELIVERY METHODS
• EFFECTIVE DATE: SECTION 2 – Definitions
• EFFECTIVE DATE: Summary: This section defines certain terms that are used in this Chapter but that are not defined in 5 M.R.S.A. §1741 or §1743.
• EFFECTIVE DATE: 1. Incorporation by Reference
• EFFECTIVE DATE: The definitions that appear in 5 M.R.S.A. §§ 1741 and 1743 are incorporated in these rules.
• EFFECTIVE DATE: 2. Definitions
• EFFECTIVE DATE: As used in this Chapter, unless the context otherwise indicates, the following terms have the following meanings:
• EFFECTIVE DATE: A. Alternative Delivery Method or Alternative Project Delivery Method means any one of the following three methods of project delivery: design/build method; construction-manager-at-risk method; or construction-manager-advisor method.
• EFFECTIVE DATE: B. Bureau means the Bureau of General Services, commonly referred to as BGS.
• EFFECTIVE DATE: C. Construction Manager Advisor, commonly referred to as CMa, means a method of project delivery in which the Owner engages a single firm for a fee to advise and consult with the Owner as to design and construction, and may include consultation as to the selection of one or more design professionals to furnish the design when trade contracts for performance are held directly by the Owner. The firm is contractually bound to manage the schedule and budget to ensure adherence to both by the trade contractors.
• EFFECTIVE DATE: D. Construction Manager at Risk, commonly referred to as CMR, means a method of project delivery in which the Owner engages a single firm for a fee to advise and consult with the Owner as to design and construction; the Owner separately engages one or more design professionals to furnish the design; and, in which the firm is responsible to the Owner for schedule and price. The firm engaged to act as construction manager at-risk may perform all or a portion of the work on the project at the Owner’s discretion.
• EFFECTIVE DATE: E. Design/Build, commonly referred to as D/B, means a method of project delivery in which the Owner contracts directly with a single entity that is responsible to perform design, construction, related services, and serves as the “designer-of-record.”
• EFFECTIVE DATE: F. Director means the Director of the Bureau of General Services or the Director’s designee.
• EFFECTIVE DATE: G. Fee or Fees means the amount paid to a “Construction Manager-Advisor” or “Construction Manager at Risk” for providing professional services during the design phases of a project, prior to the signing of a formal “Construction Agreement” or a “Guaranteed Maximum Price Agreement” for the Work, exclusive of Reimbursable Expenses. The determination of the fee will be based on the estimated dollar value of the Work as shown in the RFQ and RFP.
• EFFECTIVE DATE: H. Firm means an individual, corporation, partnership, limited liability company, or unincorporated association that applies to provide or is selected to provide services under an alternative delivery method.
• EFFECTIVE DATE: I. Guaranteed Maximum Price means the guaranteed maximum amount the Construction Manager at Risk will bill the Owner for the cost of the Work as shown on the design drawings at that time, and includes allowances, defined assumptions and the Construction Manager’s Fee for services during the construction phase of the project subject to adjustments caused by Change Orders issued during the Construction Phase.
• EFFECTIVE DATE: J. Owner means any department, office, board, commission, or agency of the State of Maine subject to 5 M.R.S.A. §1743 that proposes to enter into a contract for construction or renovation of a public improvement.
• EFFECTIVE DATE: K. Price Proposal means a Request for Proposal where price or cost of the defined services is a consideration in the evaluation process.
• EFFECTIVE DATE: L. Project means the total activities required for the planning, design, documenting, construction and related services until acceptance by the Owner.
• EFFECTIVE DATE: M. Reimbursable Expense means a cost, not included in the Fee, incurred by a firm in providing professional or construction related services when providing services for an Alternative Delivery Project. The detailed definition of the division between “Fee” and “Reimbursable Expense” will be included in the actual contract for the services to be provided under the appropriate Alternative Delivery Method.
• EFFECTIVE DATE: N. Request for Proposal, commonly referred to as RFP, means a detailed explanation of the specific requirements to be performed and the methods used to select the successful firm. It is the basis for final proposals and will become the basis of the contract for services under an Alternative Delivery Method.
• EFFECTIVE DATE: O. Request for Qualifications, commonly referred to as RFQ, means an announcement, in the form of a newspaper advertisement, issued or approved by the Bureau of General Services for the purpose of identifying qualified firms, contractors or subcontractors that could be considered for providing services under any Alternative Delivery Method, will be the basis for the establishment of the Short List, and will include the general basis for the evaluation of the submittals.
• EFFECTIVE DATE: P. Short List means a pool of 3 to 5 candidates who have submitted Qualification Statements and have been deemed by the Bureau to be the better qualified firms to provide the services defined in the RFQ.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1743
• EFFECTIVE DATE: December 31, 200618 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 8: ALTERNATIVE PROJECT DELIVERY METHODS
• EFFECTIVE DATE: SECTION 3 – Alternative Delivery System Review Panel
• EFFECTIVE DATE: Summary: 5 M.R.S.A. §1743 authorizes the Director to establish the Alternative Delivery System Review Panel to advise the Director in developing alternative project delivery policies, procedures, rules, and in selecting public improvement projects for construction under an alternative delivery method.
• EFFECTIVE DATE: 1. Facilitation
• EFFECTIVE DATE: A. The Director shall appoint a Review Panel facilitator from BGS staff.
• EFFECTIVE DATE: B. The facilitator shall coordinate the work and functions of the Review Panel; moderate at any meetings of the Review Panel; and act as the Review Panel’s liaison with the Director, communicating with the Director as necessary to implement the purposes of 5 M.R.S.A. §1743.
• EFFECTIVE DATE: 2. Meetings
• EFFECTIVE DATE: A. The Review Panel shall meet when requested by the Director for advice or recommendation as to (i) developing alternative project delivery policies, procedures, and/or rules, or (ii) selecting public improvement projects for construction under an alternative delivery method
• EFFECTIVE DATE: B. When requested to meet by the Director, the Review Panel may either convene at a single location or may communicate electronically or by other means to arrive at their recommendation.
• EFFECTIVE DATE: C. At least four (4) members of the Review Panel, or their alternates, must participate in a meeting to review and make a recommendation as to a matter requested by the Director.
• EFFECTIVE DATE: 3. Recommendation for Selection of Projects for Alternative Delivery
• EFFECTIVE DATE: A. When the Director has asked the Review Panel for a recommendation as to whether a public improvement project should be constructed under an alternative delivery method, the Bureau shall provide the Review Panel with sufficient information about the project to assist the Review Panel to make an informed recommendation based on the criteria specified in 5 M.R.S.A. §1743(4)(B).
• EFFECTIVE DATE: B. When making a recommendation to the Director as to whether a project should be selected for construction under an alternative delivery method, the Review Panel shall apply the criteria specified in 5 M.R.S.A. §1743(4)(B) and make the recommendation in writing. The written recommendation must state (i) whether the project should be selected for alternative delivery method or should be awarded by conventional design-bid-build method; (ii) the reasons why the Review Panel recommends or declines to recommend the project for an alternative delivery method; and, (iii) if the Review Panel recommends the project for an alternative delivery method, the particular type of alternative delivery method and the reasons for the recommendation.
• EFFECTIVE DATE: C. If any members of the Review Panel dissent from the recommendation of a majority of the Panel, the Panel’s written response to the Director must identify the nature of each differing recommendation, the identity of the Panel members favoring each such recommendation, and their reasons for supporting the differing recommendation.
• EFFECTIVE DATE: D. The written recommendation of the Review Panel will be distributed by the facilitator to panel members for review within one business day of the meeting, with any responses due within 2 business days of that transmission, and then sent to the Director within 5 business days of the meeting.
• EFFECTIVE DATE: E. The Director’s written decision will be sent to the applicant within 5 business days of receipt of the Review Panel’s recommendation.
• EFFECTIVE DATE: 4. List of Members
• EFFECTIVE DATE: The Bureau shall prepare and maintain a list of all members including designated alternates of the Review Panel. The list shall specify the member’s category of membership in accordance with 5 M.R.S.A. §1743(4)(A)(1-4), the date of expiration of the member’s term, whether the member is a regular member or an alternate, and the member’s contact information.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1743
• EFFECTIVE DATE: December 31, 2006
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 8: ALTERNATIVE PROJECT DELIVERY METHODS
• EFFECTIVE DATE: SECTION 4 –Request for Qualifications, RFQ
• EFFECTIVE DATE: 1. Approval Required
• EFFECTIVE DATE: A contract may be awarded for construction of a public improvement by an alternative delivery method only after the Director has received the recommendation of the Review Panel in accordance with this Chapter, and has issued written approval to proceed by the noted alternative delivery method.
• EFFECTIVE DATE: 2. Issuance
• EFFECTIVE DATE: A. The Bureau shall initiate the process of solicitation of bids for contracts for alternative delivery projects by publishing an advertisement requesting qualifications of firms to provide the required services.
• EFFECTIVE DATE: B. The Bureau will make copies of each RFQ form available to all firms on an equal basis.
• EFFECTIVE DATE: 3. Contents
• EFFECTIVE DATE: The advertisement must contain sufficient information to summarize the project and evaluation criteria in order to attract qualified firms to respond.
• EFFECTIVE DATE: 4. Format of Response
• EFFECTIVE DATE: All responses to an advertisement for a request for qualifications under this section must be made in a format approved and provided by the Bureau. Responding firms shall limit the information in their responses to the information requested by the advertisement.
• EFFECTIVE DATE: 5. RFQ Selection Committee
• EFFECTIVE DATE: The RFQ selection committee shall be appointed by the Director and composed of a minimum of 3 members, one of which may be a representative of the Owner.
• EFFECTIVE DATE: 6. Opening of Responses
• EFFECTIVE DATE: The Bureau may not open the responses to the advertisement at any time before the date and time specified in the advertisement for final submission of responses.
• EFFECTIVE DATE: 7. Rejection of Response
• EFFECTIVE DATE: The Bureau may reject a response to the advertisement because the response was not filed by the date and time specified in the advertisement, otherwise failed to comply with the terms of the advertisement, or failed to comply with the requirements of any applicable statute or this section. Within a reasonable time after rejecting a response, the Bureau shall notify the firm in writing of the rejection.
• EFFECTIVE DATE: 8. Evaluation Process
• EFFECTIVE DATE: A. The RFQ selection committee shall prepare evaluations based solely on the criteria set forth in the RFQ.
• EFFECTIVE DATE: B. Prior to undertaking the evaluation of the responses, the committee shall develop a ranking system. This ranking system may consist of weighting different factors.
• EFFECTIVE DATE: C. The committee shall specify in writing a rating for each qualifications.
• EFFECTIVE DATE: D. In the event there are more than 5 qualifications statements that would initially qualify, the selection committee must reduce this number to not more than 5.
• EFFECTIVE DATE: E. If fewer than 3 responses are received, or if the Committee determines that fewer than 3 firms are qualified for the project, the committee shall ask the Director to approve selection of fewer than 3 applicants for the short list. Upon receipt of such request, the Director shall either (i) approve the request, (ii) deny the request and direct that a new advertisement be published, or (iii) deny the request and terminate the process. The Director’s determination shall be based upon the purposes underlying 5 M.R.S.A. §1743 and this Chapter. The determination of the Director is final.
• EFFECTIVE DATE: F. In making the required determinations, the Committee’s evaluation of each applicant must be based on the information contained in the applicant’s response to the request for qualifications and information provided by an applicant’s references.
• EFFECTIVE DATE: 9. Decision and Notification
• EFFECTIVE DATE: Once the RFQ selection committee has completed the evaluation of the qualifications and rankings, it shall provide the Director with the rankings and the Director shall make the final decision as to the firms that will be invited to submit a Request for Proposal. The Bureau shall complete the qualification selection process by written notice to the firms selected to participate in submitting a RFP and to all other candidates, if any.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1743
• EFFECTIVE DATE: December 31, 2006
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 8: ALTERNATIVE PROJECT DELIVERY METHODS
• EFFECTIVE DATE: SECTION 5 – Request for Proposals, RFP
• EFFECTIVE DATE: Summary: 5 M.R.S.A. §1743(6)(B) requires the Bureau to notify the short-listed candidates of the evaluation criteria upon which they will be evaluated in their technical proposal and to invite them to submit a fee proposal.
• EFFECTIVE DATE: 1. Issuance
• EFFECTIVE DATE: The Request for Proposals (RFP) is the second part of the 2-part procurement process, partially described under Request for Qualification (RFQ), for the D/B and CMR methods and the only procurement step for the CMa method. An Owner shall initiate the second part of the solicitation for contracts for alternative delivery projects by providing a copy of the RFP to all firms that are on the project short list. The RFP must comply with the provisions of this Section and must be reviewed and approved by the Bureau before the RFP is distributed. The Bureau shall review the RFP to ensure its compliance with any applicable statutory requirements and with this Chapter.
• EFFECTIVE DATE: 2. Contents
• EFFECTIVE DATE: The RFP must contain information as directed by the Bureau to satisfy the evaluation criteria required in 5 M.R.S.A. §1743 and such other matters as may be determined by the Owner and the Director.
• EFFECTIVE DATE: 3. Format of Response
• EFFECTIVE DATE: All responses to an advertisement for a request for proposals under this section must be made in a format approved by the Bureau and provided by the Owner. Responding firms shall limit the information in their responses to the information requested by the RFP.
• EFFECTIVE DATE: 4. RFP Evaluation Committee
• EFFECTIVE DATE: The RFP evaluation committee, appointed by the Director, will evaluate the responses to the RFP in accordance with the requirements of 5 M.R.S.A. §1743. One member of this committee may be a representative of the Owner.
• EFFECTIVE DATE: 5. Rejection of Response
• EFFECTIVE DATE: The Bureau may reject a response to the RFP because the response was not filed by the date and time specified, otherwise failed to comply with the terms of the request, or failed to comply with the requirements of any applicable statute or this section. Within a reasonable time after rejecting a response, the Bureau shall notify the firm in writing of the rejection.
• EFFECTIVE DATE: 6. Additional Information
• EFFECTIVE DATE: After the responses have been received, the RFP evaluation committee will schedule a time for each firm submitting a response to make an oral presentation of their proposal.
• EFFECTIVE DATE: 7. Evaluation Process
• EFFECTIVE DATE: A. The RFP evaluation committee shall prepare evaluations based on the criteria set forth in the RFP, on the oral presentation, and the responder’s references.
• EFFECTIVE DATE: B. Prior to undertaking the evaluation of the responses and the oral presentations, the committee shall develop a ranking system. This ranking system may consist of weighting different factors.
• EFFECTIVE DATE: C. The committee shall specify in writing a rating for each response.
• EFFECTIVE DATE: D. The evaluation of the technical proposal shall be completed prior to opening the price proposal.
• EFFECTIVE DATE: E. The determination of the successful firm shall be determined in accordance with the requirements of 5 M.R.S.A. §1743.
• EFFECTIVE DATE: 8. Decision and Notification
• EFFECTIVE DATE: Once the evaluation process has been completed, the results of the evaluation will be submitted to the Director prior to any public announcement. The Bureau and Owner shall complete the evaluation process by written notice to the firm selected and to all other candidates, if any.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1743
• EFFECTIVE DATE: December 31, 2006
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 11 Rules Governing Qualification of Professionals for Single Source Procurement of Services that Do Not Exceed $25,000

Code Me. R. 18-554 Ch. 11 Rules Governing Qualification of Professionals for Single Source Procurement of Services That Do Not Exceed $25,000 {#sec-18-554-ch.-11 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 11}

Section Page

Part I. General

1 Purpose and Scope 1

2 Definitions 2

Part II. Eligibility and Application for Qualification

11 Eligibility for Qualification 5

12 Application for Qualification 6

Part III. Selection for Qualification

21 Selection for Qualification 8

22 Term of Qualification 10

Part IV. Contracting with Qualified Professionals

31 Contracting with Qualified Professionals 12

18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

554 BUREAU OF GENERAL SERVICES

Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000

PART I. GENERAL

§ 1 – Purpose and Scope

Summary: This section states the purpose and scope of the Bureau of General Services’ Rules governing qualification of professionals for single source procurement by the Bureau for services involving expenditures not exceeding $25,000.

Title 5, subsection 1742(6) of the Maine Revised Statutes Annotated governs the process by which the Bureau of General Services (BGS, Bureau) selects professionals for the planning, design, and monitoring of public improvements. Subsection 1742(6) authorizes the Bureau to prepare a list of professionals that are eligible for single source procurement when the cost of services does not exceed $25,000.

The purpose of this Chapter is to implement the Bureau’s statutory authority to qualify professionals for single source selection. The Chapter sets forth requirements and procedures for eligibility, as well as application procedures, the standards for qualification of professionals, and contractual considerations.

This Chapter does not apply to the Bureau’s selection of professionals through the issuance of a request for qualifications. Selection of such service providers through the issuance of a request for qualifications is governed by Chapter 001 of the Bureau’s rules.

NOTE: This Chapter applies only when the cost of the services is $25,000 or less and will be performed by a qualified professional; Chapter 001 applies in all instances when the cost of the services exceeds $25,000. When the cost of services does not exceed $25,000, however, the Bureau may select a professional either (1) by single source selection under this Chapter, or (2) by issuance of a request for qualifications under Chapter 001.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: § 2 – Definitions
• EFFECTIVE DATE: Summary: This section defines terms used in this Chapter. Statutory definitions relating to the subject matter of this Chapter are contained in 5 M.R.S.A. § 1741.
• EFFECTIVE DATE: As used in this Chapter, unless the context otherwise indicates, the following terms have the following meanings:
• EFFECTIVE DATE: 1. Applicant. “Applicant” means an individual or organization applying to be included on the Bureau’s list of qualified professionals.
• EFFECTIVE DATE: 2. Bureau. “Bureau” means the Bureau of General Services within the Department of Administrative and Financial Services.
• EFFECTIVE DATE: 3. Commissioner. “Commissioner” means the Commissioner of the Department of Administrative and Financial Services.
• EFFECTIVE DATE: 4. Director. “Director,” when no modifier is used, means the Director of the Bureau of General Services.
• EFFECTIVE DATE: 5. Director of Construction. “Director of Construction” means the Director of Construction of the Bureau of General Services.
• EFFECTIVE DATE: 6. Individual. “Individual” means a person providing services as a sole proprietorship.
• EFFECTIVE DATE: 7. Key Employee. “Key employee” means an individual or organization without whom the individual or organization either would fail to qualify for placement on the Bureau’s list of qualified professionals or, in the Bureau’s judgment, would lose the capability to provide effective architectural, engineering, or other services.
• EFFECTIVE DATE: 8. List. “List” means the record of qualified licensed or otherwise credentialed professionals, prepared by the Bureau pursuant to 5 M.R.S.A. § 1472(6) and section 11 of this Chapter.
• EFFECTIVE DATE: 9. Organization. “Organization” means a corporation, partnership, limited liability company, or unincorporated association that provides services.
• EFFECTIVE DATE: 10. Professional. “Professional” means an individual or organization licensed or otherwise credentialed to perform architectural, engineering, or other services that in the normal course of BGS operations are likely to be utilized by the Bureau in the planning, design, and monitoring of the construction of public improvements.
• EFFECTIVE DATE: 11. Qualified; qualification. “Qualified” means having been selected by the Bureau for placement on a list of professionals determined by the Bureau to be eligible for single source contracts not to exceed $25,000 relating to the planning, design, or monitoring of the construction of public improvements. “Qualification” means the state of being qualified.
• EFFECTIVE DATE: 12. Schedule. “Schedule” means the roll of services that in the normal course of BGS operations are likely to be utilized by the Bureau in the planning, design, and monitoring of the construction of public improvements. Such services include, but are not limited to, the following:
• EFFECTIVE DATE: .1 Acoustical
• EFFECTIVE DATE: .2 Air emissions modeling
• EFFECTIVE DATE: .3 Property appraisal
• EFFECTIVE DATE: .4 Archeological
• EFFECTIVE DATE: .5 Architectural design
• EFFECTIVE DATE: .6 Civil engineering
• EFFECTIVE DATE: .7 Commissioning
• EFFECTIVE DATE: .8 Cost estimating
• EFFECTIVE DATE: .9 Drafting
• EFFECTIVE DATE: .10 Electrical engineering
• EFFECTIVE DATE: .11 Energy evaluation and design
• EFFECTIVE DATE: .12 Energy auditing
• EFFECTIVE DATE: .13 Facilities master planning
• EFFECTIVE DATE: .14 Environmental phase 1, 2, and 3 site assessment
• EFFECTIVE DATE: .15 Environmental engineering
• EFFECTIVE DATE: .16 FF&E consulting
• EFFECTIVE DATE: .17 Field representative
• EFFECTIVE DATE: .18 Fire alarm design
• EFFECTIVE DATE: .19 Geological
• EFFECTIVE DATE: .20 Geotechnical
• EFFECTIVE DATE: .21 Hazardous materials assessment
• EFFECTIVE DATE: .22 Historic preservation
• EFFECTIVE DATE: .23 HVAC design
• EFFECTIVE DATE: .24 Hydrology
• EFFECTIVE DATE: .25 Indoor air quality investigation
• EFFECTIVE DATE: .26 Landscape design and architecture
• EFFECTIVE DATE: .27 Land surveying
• EFFECTIVE DATE: .28 Licensing and permitting
• EFFECTIVE DATE: .29 Lighting design
• EFFECTIVE DATE: .30 Marine architecture and engineering
• EFFECTIVE DATE: .31 Materials testing
• EFFECTIVE DATE: .32 Mechanical engineering
• EFFECTIVE DATE: .33 Moving coordination
• EFFECTIVE DATE: .34 Owner’s representative
• EFFECTIVE DATE: .35 Project cost management
• EFFECTIVE DATE: .36 Sanitary engineering
• EFFECTIVE DATE: .37 Safety and security systems design
• EFFECTIVE DATE: .38 Signage/graphic design
• EFFECTIVE DATE: .39 Site evaluation and septic
• EFFECTIVE DATE: .40 IAQ consulting
• EFFECTIVE DATE: .41 Specifications writing
• EFFECTIVE DATE: .42 Sprinkler system design
• EFFECTIVE DATE: .43 Structural engineering
• EFFECTIVE DATE: .44 Telecommunications design
• EFFECTIVE DATE: .45 Third-party inspection
• EFFECTIVE DATE: .46 Title search
• EFFECTIVE DATE: .47 Traffic engineering
• EFFECTIVE DATE: Individuals or organizations not providing services stated on the list above may apply for qualification by using the Bureau-supplied application materials and marking “Other” under the list of services that will appear on the materials.
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: PART II. ELIGIBILITY AND APPLICATION FOR QUALIFICATION
• EFFECTIVE DATE: § 11 – Eligibility for Qualification
• EFFECTIVE DATE: Summary: This section establishes the procedure for the Bureau’s preparation of a list of qualified professionals and establishes requirements for eligibility for qualification.
• EFFECTIVE DATE: 1. Schedule of Categories
• EFFECTIVE DATE: After adoption of this Chapter, pursuant to 5 M.R.S.A. § 1742(6), the Bureau shall prepare a schedule of the categories of services that in the normal course of BGS operations are likely to be utilized by the Bureau in the planning, design, and monitoring of the construction of public improvements. The Bureau shall review that schedule at least every two years. The Bureau may amend the schedule if the Bureau determines that amendment is necessary to carry out the purposes of 5 M.R.S.A. § 1742(6).
• EFFECTIVE DATE: 2. List of Qualified Professionals
• EFFECTIVE DATE: After preparing the schedule described in § 11(1), the Bureau shall solicit applications through the means of publication and application described in § 12, infra, from licensed or otherwise credentialed professionals interested in being included on the list of qualified professionals. To be eligible for qualification, an individual or organization must:
• EFFECTIVE DATE: A. Be a professional;
• EFFECTIVE DATE: B. Apply for qualification in accordance with 5 M.R.S.A. § 1742(6) and this Chapter; and
• EFFECTIVE DATE: C. Satisfy the qualification standards established by paragraph 21(2)(A), infra, of this Chapter.
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: § 12 – Application for Qualification
• EFFECTIVE DATE: Summary: This section establishes the requirements for an application for qualification.
• EFFECTIVE DATE: 1. Advertisement
• EFFECTIVE DATE: A. Timing. At least every two years the Bureau shall review and, at its discretion, amend the schedule prepared pursuant to section 11(1), supra. The Bureau then shall publish one or more advertisements that it is accepting applications for qualification in accordance with 5 M.R.S.A. § 1742(6). The Bureau shall not accept an application for qualification unless the application is received in response to and in accordance with the advertisement referred to in this subsection.
• EFFECTIVE DATE: B. Publication. The Bureau shall publish the advertisement in the Kennebec Journal, the Maine Sunday Telegram, the Bangor Daily News, and the Lewiston Sun Journal. The Bureau also may publish the advertisement on an appropriate State web site, as well as in professional journals or other publications that the Bureau determines would be an effective means of communicating the notice that it is accepting applications.
• EFFECTIVE DATE: 2. Application Required
• EFFECTIVE DATE: An individual or organization seeking qualification shall submit to the Bureau, in response to the advertisement referred to in subsection 12(1), a completed application in accordance with the provisions of 5 M.R.S.A. § 1742(6) and this Chapter.
• EFFECTIVE DATE: 3. Form of Application
• EFFECTIVE DATE: Applications for qualification must be on a form or forms made available by the Bureau. Applications will be designed to elicit information relevant to the various fields of expertise listed in the schedule and be sufficient to permit the Bureau to determine whether the applicant satisfies, for the particular service applied for, the standards prescribed by section 21(2), infra, of this Chapter. The Bureau shall reject any application that the Bureau determines is incomplete or non-responsive.
• EFFECTIVE DATE: 4. Application for Qualification in More than One Profession
• EFFECTIVE DATE: An individual or organization that submits an application for qualification may indicate on that same application interest in providing one or more additional services the applicant claims to be capable of performing. For each such service, however, the applicant must provide sufficient information and, to be qualified, meet the standards prescribed in section 21(2), infra, of this Chapter. At its discretion, the Bureau may opt to not consider a service indicated on the application if incomplete or non-responsive information is provided with respect to such service.
• EFFECTIVE DATE: 5. Time for Filing Application
• EFFECTIVE DATE: An individual or organization shall submit to the Bureau an application for qualification within the time specified in the advertisement. The Bureau shall reject any application received after the time specified.
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: PART III. SELECTION FOR QUALIFICATION
• EFFECTIVE DATE: § 21 – Selection for Qualification
• EFFECTIVE DATE: Summary: This section establishes procedures and standards for the Bureau’s selection of applicants for qualification.
• EFFECTIVE DATE: 1. Selection by Bureau
• EFFECTIVE DATE: The Bureau shall select applicants for qualification in accordance with the procedures and standards of this section.
• EFFECTIVE DATE: At or before the deadline for submission of applications for qualification under this Chapter, the Director of Construction shall appoint a team from among the Bureau’s Professional Services staff to review the applications, determine whether each applicant is qualified to provide the services the applicant has applied to perform, and recommend to the Director of Construction whether the application should be approved or denied. Based on the recommendation of the team and the Director of Construction’s review of the application, the Director of Construction shall make a final determination as to whether the applicant is eligible for qualification to provide such services.
• EFFECTIVE DATE: 2. Standards and Basis for Selection
• EFFECTIVE DATE: A. Standards. In determining whether an applicant is capable of performing a particular service for which the applicant seeks qualification, the Bureau may request from the applicant information about the following:
• EFFECTIVE DATE: 1. Licensure, certification, and/or registration, as applicable;
• EFFECTIVE DATE: 2. Competency;
• EFFECTIVE DATE: 3. Experience;
• EFFECTIVE DATE: 4. Training;
• EFFECTIVE DATE: 5. Financial and bonding capacity;
• EFFECTIVE DATE: 6. Insurance;
• EFFECTIVE DATE: 7. Personnel;
• EFFECTIVE DATE: 8. Liability and claims experience.
• EFFECTIVE DATE: B. Basis. The Bureau’s evaluation must be based on the information contained in the application, any additional, related information submitted by the applicant or requested by the Bureau, any written information obtained from another public agency, any experience the Bureau has had with the applicant, and any other information deemed relevant by BGS.
• EFFECTIVE DATE: 3. Notification of Bureau’s Decision
• EFFECTIVE DATE: After the Director of Construction decides whether an applicant is a qualified professional, the Bureau shall seasonably notify the applicant of the decision in writing.
• EFFECTIVE DATE: 4. Appeal
• EFFECTIVE DATE: If the Director of Construction determines that an applicant is not eligible for qualification under subsection 11(2), supra, of this Chapter, the applicant may appeal that decision to the Commissioner of the Department of Administrative and Financial Services within fifteen (15) days of the Construction Director’s decision. The Commissioner shall complete the appeal process and issue a decision within fifteen (15) days of the filing of the appeal. The decision of the Commissioner is final.
• EFFECTIVE DATE: 5. No Obligation
• EFFECTIVE DATE: The Bureau’s selection of an applicant for qualification under this Chapter does not in any way require the Bureau to contract with the applicant to perform services.
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: § 22 – Term of Qualification
• EFFECTIVE DATE: Summary: This section makes clear that a professional may remain on the Bureau’s list until the Bureau issues a new list. The section also authorizes the Bureau to remove an individual or organization from the list upon or after the occurrence of specified events.
• EFFECTIVE DATE: 1. Length of Term
• EFFECTIVE DATE: An individual or organization may remain on the Bureau’s list of qualified professionals until the Bureau issues a new list, pursuant to sections 12 and 21, supra, of this Chapter, or until the Bureau removes the individual or organization from the list, pursuant to subsection 22(2).
• EFFECTIVE DATE: 2. Removal from the List of Qualified Professionals
• EFFECTIVE DATE: A. Removal. The Bureau may remove an individual or organization from its list of qualified professionals upon or after the occurrence of any of the following:
• EFFECTIVE DATE: 1. Conviction of a State or federal crime by the individual or organization, or by an employee of the organization;
• EFFECTIVE DATE: 2. A material misrepresentation on the individual’s or organization’s application for qualification;
• EFFECTIVE DATE: 3. A filing by the individual or organization for bankruptcy or insolvency;
• EFFECTIVE DATE: 4. A material, unresolved breach of contract with any public agency by the individual or organization;
• EFFECTIVE DATE: 5. Loss by an organization of a key employee, or an adverse material change in the organization or personnel;
• EFFECTIVE DATE: 6. Loss by a key employee of an organization, an individual, or an organization, of a license or certification that is necessary for him or her to perform a particular service, or the lapsing of a registration that is necessary for a key employee to perform a particular service; or
• EFFECTIVE DATE: 7. Initiation of a regulatory enforcement action against an individual or organization.
• EFFECTIVE DATE: B. Notice of Removal. If the Bureau removes an individual or organization from its list of qualified professionals pursuant to this subsection, the Bureau shall seasonably notify the individual or organization in writing.
• EFFECTIVE DATE: C. Re-Application. An individual or organization removed from the Bureau’s list of qualified professionals pursuant to this subsection may re-apply for qualification when the Bureau next places an advertisement soliciting applications for qualification.
• EFFECTIVE DATE: D. Appeal. An individual or organization removed from the Bureau’s list of qualified professionals pursuant to this subsection may appeal that decision in writing to the Director within fifteen (15) days of the Bureau’s decision. The Director shall complete the appeal process and issue a decision within fifteen (15) days of the filing of the appeal. The decision of the Director is final.
• EFFECTIVE DATE: 3. Reporting
• EFFECTIVE DATE: Whenever a representative of the Bureau communicates, orally or in writing, with a qualified professional to engage the professional’s services on a project within the scope of this Chapter, the qualified professional shall notify the Bureau, in writing, if it has experienced or been involved in any of the events described in paragraphs 22(2)(A)(1)-(7). In any case, a qualified professional must promptly furnish written notice if it experiences or is involved in any of the events described in paragraphs 22(2)(A)(1)-(7).
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 11: RULES GOVERNING QUALIFICATION OF PROFESSIONALS FOR SINGLE SOURCE PROCUREMENT OF SERVICES THAT DO NOT EXCEED $25,000
• EFFECTIVE DATE: PART IV. CONTRACTING WITH QUALIFIED PROFESSIONALS
• EFFECTIVE DATE: § 31 – Contracting with Qualified Professionals
• EFFECTIVE DATE: Summary: This section contains requirements relating to contracts entered into between the Bureau and qualified professionals.
• EFFECTIVE DATE: 1. Confirmation of Information
• EFFECTIVE DATE: Before the Bureau enters into a single source contract with a qualified professional pursuant to this Chapter, the qualified professional shall inform the Bureau whether any information contained in the application submitted by the qualified professional, pursuant to section 12, supra, of this Chapter, has changed.
• EFFECTIVE DATE: 2. Fees
• EFFECTIVE DATE: Fees shall be determined for all professional services by the Bureau’s acceptance of a negotiated, detailed written fee proposal submitted by the professional.
• EFFECTIVE DATE: 3. Reimbursable Expenses
• EFFECTIVE DATE: In entering into a contract under this Chapter, the Bureau and the qualified professional shall agree upon a maximum dollar amount, where applicable, for reimbursable, or so-called “out of pocket,” expenses.
• EFFECTIVE DATE: 4. Additional Services
• EFFECTIVE DATE: The Bureau may contract with more than one licensed or credentialed qualified professional to perform work on a single project. Further, on a single project, the Bureau may enter into more than one contract with a qualified professional, so long as the value of the contracts for that single project do not exceed $25,000 in the aggregate.
• EFFECTIVE DATE: 5. No Obligation
• EFFECTIVE DATE: The Bureau’s entering into negotiations to contract with a qualified professional under this Chapter does not in any way require the Bureau to in fact contract with that qualified professional.
• STATUTORY AUTHORITY: 5 M.R.S.A. § 1742(6)
• EFFECTIVE DATE: June 5, 2005 – filing 2005-193
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 60 Improvement of Energy Efficiency in State-funded Construction

Code Me. R. 18-554 Ch. 60 Improvement of Energy Efficiency in State-Funded Construction {#sec-18-554-ch.-60 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 60}

Section Page

Part I. General

1 Purpose and Scope 1

2 Definitions 2

3 Compliance Required 3

Part II. Guidelines for Compliance

11 Standards 4

Part III. Process for Compliance

21 Submission 6

23 Approval 8

18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES

554 BUREAU OF GENERAL SERVICES

Chapter 60

§ 1 – Purpose and Scope

Summary: This section states the purpose and scope of the Bureau’s rules establishing procedures for compliance with energy efficiency standards for the planning and design of public improvements.

5 M.R.S.A. §1764-A authorizes the Bureau to adopt rules addressing methods to improve the energy efficiency and environmental impacts of certain buildings starting in the planning and design phases and requiring documentation that those energy- and environmentally-conscious standards will be effective. The purpose of this Chapter is to implement the Bureau’s rulemaking authority by establishing procedures for documenting analysis of buildings consistent with §1764-A.

History

• STATUTORY AUTHORITY: 30-A M.R.S.A. §§ 5221, 5229
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 60
• EFFECTIVE DATE: § 2 – Definitions
• EFFECTIVE DATE: Summary: This section defines certain terms that are used in the rule but that are not defined by 5 M.R.S.A. §1764-A. The term “public improvement” is defined by 5 M.R.S.A. §1741.
• EFFECTIVE DATE: As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings:
• EFFECTIVE DATE: 1. Building. “Building” means a whole, habitable structure and does not refer to structures that are unheated, or have minimal lighting, or have minimal energy usage such as unheated sheds or cold storage facilities.
• EFFECTIVE DATE: 2. Bureau. “Bureau” means the Bureau of General Services within the Department of Administrative and Financial Services.
• EFFECTIVE DATE: 3. Director. “Director” means the Director of the Bureau of General Services or the Director’s designee.
• EFFECTIVE DATE: 4. Designer. “Designer” means a registered professional engineer who prepares the analysis required by this rule and, for the purposes of this rule, whose documents must be stamped by a professional engineer registered by the State of Maine.
• EFFECTIVE DATE: 5. Project. “Project” means construction, renovation, or other work relating to a public improvement.
• EFFECTIVE DATE: 6. Substantially renovated. “Substantially renovated" means any modification or alteration of an existing public improvement for which the cost exceeds 50% of the building's current value prior to renovation.
• STATUTORY AUTHORITY: 30-A M.R.S.A. §5229
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• NON-SUBSTANTIVE CHANGES: October 18, 2004 - spelling and capitalizations only
• NON-SUBSTANTIVE CHANGES: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• NON-SUBSTANTIVE CHANGES: 554 BUREAU OF GENERAL SERVICES
• NON-SUBSTANTIVE CHANGES: Chapter 60
• NON-SUBSTANTIVE CHANGES: § 3 – Compliance Required
• NON-SUBSTANTIVE CHANGES: Summary: This section defines the buildings that are subject to these Rules.
• NON-SUBSTANTIVE CHANGES: 1. Generally
• NON-SUBSTANTIVE CHANGES: This Rule applies to all planning and design for the construction of new or substantially renovated state-owned or state-leased buildings and buildings built with state funds, including buildings funded through state bonds or the Maine Municipal Bond Bank.
• NON-SUBSTANTIVE CHANGES: 2. Applicability
• NON-SUBSTANTIVE CHANGES: This Rule applies to building construction and renovation projects initiated on or after its effective date.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1764-A
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• NON-SUBSTANTIVE CHANGES: October 18, 2004 - spelling only
• NON-SUBSTANTIVE CHANGES: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• NON-SUBSTANTIVE CHANGES: 554 BUREAU OF GENERAL SERVICES
• NON-SUBSTANTIVE CHANGES: Chapter 60
• NON-SUBSTANTIVE CHANGES: § 11 – Standards
• NON-SUBSTANTIVE CHANGES: Summary: This section describes the requirements for compliance with 5 M.R.S.A. §1764-A and these Rules.
• NON-SUBSTANTIVE CHANGES: 1. Standards for Compliance
• NON-SUBSTANTIVE CHANGES: Designers must demonstrate compliance with these Rules by one of the means set out in Section 21 below.
• NON-SUBSTANTIVE CHANGES: For each applicable project, building owners subject to this rule shall:
• NON-SUBSTANTIVE CHANGES: A. Involve consideration of architectural designs and energy systems that show the greatest net benefit over the life of the building by minimizing long-term energy and operating costs.
• NON-SUBSTANTIVE CHANGES: B. Include an energy-use target that exceeds by at least 20% the energy efficiency standards (ANSI/ASHRAE/IESNA Standard 90.1-2001 hereafter “ASHRAE 90.1”) in effect for commercial and institutional buildings pursuant to Title 10, §1415-D.
• NON-SUBSTANTIVE CHANGES: C. Include a life-cycle cost analysis that explicitly considers cost and benefits over a minimum of thirty (30) years and that explicitly includes the public health and environmental benefits associated with energy-efficient building design and construction, to the extent they can be reasonably quantified.
• NON-SUBSTANTIVE CHANGES: The energy costs to be included in the life-cycle cost analysis shall include oil, gas, propane and electric.
• NON-SUBSTANTIVE CHANGES: The Department shall publish a schedule of energy price forecasts to be used in conjunction with this rule, and shall periodically publish energy price forecast updates when warranted.
• NON-SUBSTANTIVE CHANGES: The discount rate shall be the rate reflected in the most recent Delphis-Hanover Corporation municipal bond table.
• NON-SUBSTANTIVE CHANGES: The life cycle cost analysis shall include a comparison between the proposed building design and a building designed in accordance with Title 10, §1415-D.
• NON-SUBSTANTIVE CHANGES: The proposed building design shall be deemed to comply with Sections 11.1.A and -.B, if the life cycle cost of the proposed building is lower than the life cycle cost of a building designed in accordance with Title 10, §1415-D.
• NON-SUBSTANTIVE CHANGES: 2. Optional Guidebook(s)
• NON-SUBSTANTIVE CHANGES: By January 31, 2005, The Bureau of General Services, in cooperation with the Public Utilities Commission and The Energy Resources Council, shall develop and make available one or more guidebooks, one of which shall be titled “State of Maine High Performance Buildings,” describing methods for achieving compliance with this rule.
• NON-SUBSTANTIVE CHANGES: At its discretion, the Bureau of General Services, in consultation with the named agencies, may from time to time revise these guidebooks or approve additional guidebooks as acceptable methods of compliancy.
• NON-SUBSTANTIVE CHANGES: 3. Discretion Allowed
• NON-SUBSTANTIVE CHANGES: Designers shall have discretion to utilize sound engineering, architectural and design principles in achieving the energy efficiencies and in developing the life cycle analyses described in this rule, so long as they are able to demonstrate the project meets the requirements of this rule to the satisfaction of the Bureau of General Services.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1764-A
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• EFFECTIVE DATE: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• EFFECTIVE DATE: 554 BUREAU OF GENERAL SERVICES
• EFFECTIVE DATE: Chapter 60
• EFFECTIVE DATE: § 21 – Submission
• EFFECTIVE DATE: Summary: This section describes the documentation that will be required to demonstrate compliance with these Rules.
• EFFECTIVE DATE: 1. Methods of Compliance
• EFFECTIVE DATE: The Bureau or other reviewing entity will accept a proof of compliance by either a building cost analysis or “comparative” approach, or by using a “prescriptive” approach. To comply with this rule, one of the following methods of compliance must be utilized:
• EFFECTIVE DATE: A. “Comparative” approach exceeding ASHRAE 90.1. Under a building comparative approach, the person or entity making application will demonstrate that the proposed building design’s overall energy use will be 20% less than the energy use of a building designed in accordance with the standards specified in Title 10, Section 1415-D as described in Chapter 11 of the ASHRAE 90.1 User's Manual.
• EFFECTIVE DATE: The demonstration should be conducted in accordance with the guidelines provided in Chapter 11, “Energy Cost Budget Method” of ASHRAE Standard 90.1 – 2001, in which the computer simulation program demonstrates compliance of the proposed design with this rule.
• EFFECTIVE DATE: B. “Prescriptive” approach. A building also will be deemed to comply with this Chapter under the “prescriptive” approach if the energy-using systems installed in the building are equivalent to or more efficient than the equipment specified in the guidebook(s) referenced in Section 11.2, above.
• EFFECTIVE DATE: Guidelines for both approaches described in (A) and (B) above will be included in the E-Benchmarks handbook described in Section 11, above.
• EFFECTIVE DATE: 2. Content of Submission
• EFFECTIVE DATE: Life Cycle Analysis. Building designs submitted for review under the comparative approach method described in this chapter must include a life cycle cost analysis demonstrating that the life cycle cost of the proposed high efficiency building design is lower than the life cycle cost of the reference building designed in accordance with Title 10, Section 1415-D. Building designs submitted for review under this chapter and incorporating all applicable prescriptive measures specified in the Bureau of General Services’ approved guidebook(s) are exempted from providing a separate life cycle cost analysis.
• EFFECTIVE DATE: 3. Timely Submission
• EFFECTIVE DATE: The submissions made pursuant to this section must be made during the early design development phase of the project, but no later than fifty-percent (50%) design development.
• STATUTORY AUTHORITY: 5 M.R.S.A. §1764-A
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• NON-SUBSTANTIVE CHANGES: October 18, 2004 - spelling, punctuation and capitalizations only
• NON-SUBSTANTIVE CHANGES: 18 DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
• NON-SUBSTANTIVE CHANGES: 554 BUREAU OF GENERAL SERVICES
• NON-SUBSTANTIVE CHANGES: Chapter 60
• NON-SUBSTANTIVE CHANGES: § 23 – Approval
• NON-SUBSTANTIVE CHANGES: Summary: This section specifies that written approval is required before a project may proceed.
• NON-SUBSTANTIVE CHANGES: 1. Approval
• NON-SUBSTANTIVE CHANGES: A project may proceed to subsequent phases of development only upon written approval by the Bureau or other entity with approval authority over a given building.
• STATUTORY AUTHORITY FOR ENTIRE CHAPTER: 5 M.R.S.A. §1764-A
• EFFECTIVE DATE: September 18, 2004 - filing 2004-398
• NON-SUBSTANTIVE CHANGES: October 18, 2004
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 101 Bids, Awards and Contracts

Code Me. R. 18-554 Ch. 101 Bids, Awards, and Contracts {#sec-18-554-ch.-101 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 101}

SUMMARY: This regulation prohibits any department, agency, commission, or institution of state government from purchasing products made by any manufacturer or their affiliates determined not to be a responsible bidder and further specifies that the manufacturer or their affiliates in historic and continuing violation of labor laws are not responsible bidders.

Provisions of the regulation:

Responsible bidder. No department, agency, commission or institution of state government shall purchase or enter into any contract for the purchase of any products manufactured, sold or distributed by any corporation, partnership, person or other legal entity determined by the State Purchasing Agent not to be a responsible bidder. Corporations, partnerships, person or other legal entities shall not be considered responsible bidders upon a finding of historic and continuing violation of the labor laws of the State of Maine and/or of the United States.

History

• STATUTORY AUTHORITY: 5 MRSA §1813(8), in conjunction with 5 MRSA Chapter 155, Purchases, Section 1816, Bids, awards, and contracts, Subsection 7, Awards to lowest bidder.
• EFFECTIVE DATE: April 20 1980
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• NON-SUBSTANTIVE CORRECTIONS: March 5, 2000 - reformatted.
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 110 Rules for the Purchase of Services and Awards

Code Me. R. 18-554 Ch. 110 Rules for the Purchase of Services and Awards {#sec-18-554-ch.-110 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 110}

Summary: This chapter outlines the procedures to be used in the purchase of services and the awarding of grants and contracts pursuant to 5 M.R.S.A. §1825-C.

Section 1. DEFINITIONS

A. REQUEST FOR PROPOSAL: Means a document listing the scope of work, requirements of the state and all evaluation criteria for a service needed by the state. This document is also known by the initials "RFP".

B. CONTRACT REVIEW COMMITTEE: Means the committee established by Executive Order which reviews agency documents and actions related to contracts for special services.

C. CONTRACT: Means the agreement between a vendor and the State of Maine, describing the service to be performed, the terms and conditions agreed to by the parties, the cost of the service and how payment will be made.

D. GRANT: Means an agreement between a group organization or other recipient and the state which describes terms and conditions and scope of performance or action which is expected of the recipient.

Section 2. REQUEST FOR PROPOSAL PROCEDURE

A. All contracts issued under the review of the Contract Review Committee which do not qualify as sole source or emergency procurements must be competitively bid using the Request for Proposal.

i. The request for proposal must contain at a minimum a clear definition (scope) of the project, the evaluation criteria and relative scoring weights to be applied, the proposal opening date and time, and agency contact person.

aa. Cost of the contract must be included in the evaluation criteria and must receive a minimum of 25% of the total weight of all criteria.

bb. All proposals shall be opened publicly at the Bureau of Purchases, main office. Proposals received at the Bureau of Purchases main office after the advertised opening time shall be rejected, unless the advertised opening date and time have been extended by the State Purchasing Agent due to circumstances requiring such an extension of time.

ii. Request for proposals must be submitted to the Contract Review Committee for review prior to release. Review includes, but is not limited to appropriateness of scope and clearly defined evaluation criteria with cost at a minimum of 25%. Agencies will be notified of approval.

iii. Request for proposals must be advertised for a minimum of three consecutive days in the Kennebec Journal of Augusta, allowing a minimum of fifteen (15) calendar days from the final day of advertising to the proposal opening date. This section does not limit advertising in any other publication, trade publication or other media.

aa. Advertisements must include at a minimum a brief description of the service requirements of the state, the name of the department and division issuing the RFP, the name of the contact person and address where copies of the RFP can be obtained, the opening date, the opening time and the opening location: Division of Purchases, Burton M. Cross Building, 4^th Floor, 111 Sewall Street, 9 State House Station, Augusta, Maine 04333-0009.

iv. Pre-Bidders conferences are allowed, but are not required. These conferences are used to be certain that all bidders have an equal understanding of the state requirements.

aa. Pre-Bidders conferences must be advertised within the RFP advertisement, including location, day and time. Conference must be scheduled a minimum of seven calendar days from the final day of advertising and a minimum of two weeks prior to proposal opening date. The State Purchasing Agent may authorize a pre-bidders conference an shorter notice that has not been advertised in the RFP. The contracting agency shall notify all prospective bidders who requested the RFP of the date and time of the conference under these circumstances.

bb. Conferences must be open to the public, questions raised must be documented in writing and responses must be written and forwarded to each prospective bidder who received an RFP, whether in attendance or not.

cc. No alterations or changes to any requirement or specification within the original RFP can be made without notifying all bidders in writing a minimum of seven (7) calendar days before opening date.

v. Proposals shall be opened publicly at the Bureau of Purchases or a nearby appropriate facility at the discretion of the Bureau of Purchases. The opening of proposals shall be open to public attendance. The name of the respondent will be read aloud. No other information will be made available prior to evaluation and award notification. All proposals shall be sequestered from this time until notification of award by the contracting agency after which time they become public record.

Proposals received at the Bureau of Purchases later than the date and time specified will not be accepted and will be returned unopened or held at the Bureau to be picked up by the respondent. Late proposals not picked up within seven (7) calendar days will be destroyed.

vi. All opened proposals shall be turned over to the contracting agency's representative after the opening. A written record of the vendor names, date and time received, cost/price and agency representative shall be kept at the Bureau of Purchases.

Section 3. AWARD

a. The contracting agency is responsible for reviewing all RFP's based on the criteria established within the original Request for Proposal document. The agency shall document the scoring, substantive information that supports the scoring, and make the award decision which shall be subject to the Contract Review Committee approval.

i. Interviews/Presentations: Interviews and/or presentations may be considered within the review for information and scoring, if that provision was included within the original RFP documentation.

ii. Pricing/Negotiations: Pricing changes, alterations or negotiations are not allowed prior to the award decision and must not be used in scoring. Minor negotiations after notice of award are allowed and if agreement cannot be reached, the proposal may be rejected and the award made to the next highest rated bidder who was in compliance with all terms, conditions and requirements.

iii. Documentation: Written records must be kept by each person reviewing or ranking proposals. These records must be made available upon request.

iv. Award: Award must be made to the highest rated proposal which conforms to the requirements of the state as contained in the RFP.

v. Proposed Award Decision Notification: Contracting agency must notify all bidders responding to an RFP of the award decision in writing, postmarked or delivered a minimum of fourteen (14) calendar days prior to contract effective date. This notice must include a statement that the award is conditional pending Contract Review Committee approval.

The award decision, a copy of the award notification to bidders, supporting justification of award, individual and summarized scoring and a minimum of four contracts with the state agency head and vendor authorized original signatures must be sent to the Contract Review Committee for final review and approval a minimum of fourteen (14) calendar days prior to contract effective date.

B. Upon final approval by the Contract Review Committee, the Chairman shall affix an original signature to the contracts, keep one copy, and forward to Accounts and Control for final approval of encumbrance, terms, and account coding. The Controller will keep one copy and the remaining copies shall be returned to the contracting agency for distribution to vendor.

i. Contracts are not considered fully executed and valid before completing final approval of encumbrance. No contract will be approved based on an RFP which has an effective date less than fourteen (14) calendar days after award notification to bidders.

ii. Attorney General approval is not required unless changes have been made to existing boilerplate or at the request of the Contract Review Committee. Nothing within this paragraph prevents agency requests for Attorney General review of any contract.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §1825-C
• EFFECTIVE DATE: February 11, 1991
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 1, 1996
• NON-SUBSTANTIVE CORRECTION: August 13, 1996 - paragraph alignment
• NON-SUBSTANTIVE CORRECTION: April 22, 2010 – address in Section 2.A(iii)(aa)
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 120 Rules for Appeal of Contract and Grant Awards

Code Me. R. 18-554 Ch. 120 Rules for Appeal of Contract and Grant Awards {#sec-18-554-ch.-120 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 120}

Summary: This chapter defines the procedures and criteria to be used in the appeal of contract or grant awards, outlines the appointment of an Appeal Committee, describes procedures to be used in hearing an appeal and how appellants will be notified of final agency action pursuant to 5 M.R.S.A. §1825-(C)(D)(E)(F).

Section 1. DEFINITIONS

1. REQUEST FOR PROPOSAL: Means a document listing the scope of work, requirements of the State and all evaluation criteria for a service needed by the State. This document is also known by the initials "RFP".

2. STATE PURCHASES REVIEW COMMITTEE Means the committee established by Executive order which reviews agency documents and actions related to contracts for special services.

3. CONTRACT: Means the agreement between a vendor/provider and the State of Maine, describing the service to be performed, the terms and conditions agreed to by the parties, the cost of the service and how payment will be made.

4. GRANT: Means an agreement between a group, organization or other recipient and the State which describes terms and conditions and scope of performance or action which is expected of the recipient.

5. STAY OF AWARD: Means an order issued by the Director of the Bureau of General Services which halts action on a contract or grant pending an appeal hearing.

6. APPEAL COMMITTEE: Means a committee of three (3) people, two members are appointed by the Commissioner of Administrative & Financial Services and must not have direct or indirect personal, professional or financial conflict of interest in the appeal and cannot be employees of the department affected by the contract. The third member is the Director of the Bureau of General Services or his designee.

7. AGGRIEVED PERSON: Means any person who bids on a contract and who is adversely affected financially, professionally or personally by that contract award decision.

Section 2. APPEALS PROCEDURE

1. STAY: The Director of the Bureau of General Services must insure that aggrieved persons have an opportunity to appeal a contract award decision. An aggrieved person may request a stay of contract award within ten (10) calendar days of notification of contract award by the contracting agency.

A. Requests for stay of contract award must be written and addressed to the Director of the Bureau of General Services and must state clearly the specific nature of the grievance, demonstrate irreparable injury to the petitioner, a reasonable likelihood of success on the merits of the appeal, and no substantial harm to adverse parties or to the general public.

B. The Director of the Bureau of General Services shall notify the petitioner in writing of the decision regarding the issuance of a stay within seven (7) days of receipt of request.

C. Failure of the petitioner, to obtain a stay does not affect the petitioner's right to a hearing of appeal as provided by statute and within these rules.

2. APPEAL: An aggrieved person may request a hearing of award decision from the Director of the Bureau of General Services in writing within fifteen (15) days of notification of contract award. A written request for appeal hearing must contain at a minimum the specific nature of the grievance, including the Appeal Criteria as defined in Section 3 Paragraph B of this rule and must demonstrate the conditions that make the petitioner an aggrieved person. The Director of the Bureau of General Services shall grant an appeal hearing unless it is determined that:

A. The petitioner is not an aggrieved person

B. A prior request by the same petitioner relating to the same contract award has been granted

C. The request was made more than fifteen (15) days after notification of award; or

D. The request is capricious, frivolous or without merit.

A hearing will not be granted if the contract award is not approved by the State Purchases Review Committee.

(1) NOTIFICATION: The Director of the Bureau of General Services shall notify the petitioner in writing of the decision regarding a request for a hearing of appeal within fifteen (15) calendar days of receipt of the request. If a request for a hearing is granted, notification must be made at least ten (10) calendar days before the hearing date. The notification must include the date and location of the hearing and the names of the Appeal Committee members.

(2) In the event the request for hearing is denied, the notification shall constitute final agency action. The notification shall include an explanation of the petitioners right to judicial review of final agency action under 5 M.R.S.A. 11001 et seq .

Section 3. APPEAL HEARINGS

1. APPEAL COMMITTEE: The Appeal Committee shall consist of three (3) people, two appointed by the Commissioner of Administrative & Financial Services. The third person is the Director of the Division of Purchases or other designee of the Director of the Bureau of General Services. This Committee shall appoint a person to serve as presiding officer over the hearing. This person may be one of the Committee members or any other person who has no direct or indirect personal, professional or financial conflict of interest in the appeal This person cannot be an employee of any department affected by the contract. The presiding officer, if not from the ranks of the Appeal Committee shall have no vote in the decision but may provide advice, information or research at the request of the Committee.

The presiding officer shall control all aspects of the hearing, rule on points of order, rule on all objections and may question witnesses.

A recording secretary shall be furnished by the Division of Purchases to record by audio tape or other media the hearing of appeal. This person shall be responsible for scheduling additional hearing days and locations at the request of the Appeal Committee.

2. APPEAL CRITERIA: The burden of proof within the hearing of appeal lies with the petitioner. The evidence presented must specifically address and be limited to one or more of the following:

A. Violation of law;

B. Irregularities creating fundamental unfairness; or

C. Arbitrary or capricious award

Evidence of any type that cannot be related to this criteria may be ruled inadmissible by the presiding officer.

In the event multiple appeal hearing requests are granted on a single contract award, the Director of the Bureau of General Services may assign the Appeal Committee to hear all petitioners within the same hearing as a combined appeal.

3. PARTICIPANTS: The petitioners may participate alone or be presented by Counsel or other agent. The State shall be represented by the contracting agency and/or its Counsel. Other parties of interest may petition to intervene. Such petition shall be presented in writing to the Director of the Division of Purchases who shall determine and allow or disallow participation in writing within seven (7) calendar days of receipt of the request to intervene. Copies of this notification shall be sent to all Appeal Committee members, the presiding officer, the Appellant and the contracting State agency.

4. PRESENTATION OF EVIDENCE: The petitioner must present evidence to substantiate the specific grievances stated in the appeal. Brief opening statements directed to the Appeal Committee may be made by the petitioner, the contracting State agency and any intervenors, in that order.

A. The petitioner shall present evidence first, using witnesses and exhibits who may be cross examined by the State and the intervenors. Re-direct questioning related to issues raised during cross examination only may, be done by the petitioner, followed by re-cross examination by the State and intervenors.

B Witnesses may be called who can present factual information related directly to the appeal. All witnesses shall be sworn. To expedite the proceeding, testimony of any witness may be prefiled in written form. If used, pre-filed testimony must be made available to the State, the Appeal Committee, presiding officer and all intervenors on the preceding work day, a minimum of twenty-four (24) hours prior to the hearing. Every such witness shall be subject to cross examination.

C. EXHIBITS: Exhibits relating to any issue of fact in the proceeding may be presented. Documentary evidence may be incorporated into the record by reference when the materials so incorporated are made available for examination by the parties before being received in evidence.

(1) COPIES: petitioner must furnish copies of all documentary evidence to the presiding officer, Appeal Committee, contracting State agency and all intervenors. Any costs associated with this subparagraph are the responsibility of the petitioner and shall not be recovered by any judgment of the Committee.

5. STATE/INTERVENOR EVIDENCE: The contracting State agency and all intervenors shall have the opportunity to subject evidence relevant to the appeal through witnesses and exhibits. The procedures for presenting this evidence are the same as those for the petitioner, substituting the words "contracting State agency" or "intervenor" for petitioner.

A. The order of examination and cross examination when the State presents evidence is state, all intervenors, and the petitioner.

B The order of the examination and cross examination when an intervenor presents evidence shall be remaining intervenors (if any), the State and the petitioner.

6. SUBPOENA OF WITNESSES: In the event a witness is not willing to voluntarily testify, the Appeal Committee, subject to the approval of the Attorney General, shall issue a subpoena to require attendance, testimony and the production of any evidence relating to any issue of fact in the proceeding.

A. EXPENSES; Any expenses incurred by witnesses called by any party or intervenor shall be sole responsibility of the petitioner and shall not be recovered by any judgment of the Committee.

7. APPEAL COMMITTEE: The Appeal Committee may ask questions for clarification at any point throughout the direct and cross examinations. In addition, the Appeal Committee may ask questions after the direct and cross examination, may request additional witnesses, and may recall any witness for additional questioning.

8. RECORD: All evidence received or considered shall be part of the record. Evidence shall be admitted if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or unduly repetitious evidence. No sworn written evidence shall be admitted unless the author is available for cross examination or subject to subpoena, except for good cause shown.

Section 4. APPEAL DECISIONS AND ACTIONS

1. APPEAL COMMITTEE DECISION: The Appeal Committee shall consider all evidence entered into the record and shall look for clear and convincing evidence that one or more of the standards set forth in Section 3, Subsection B, of these rules has been proven by the petitioner. The actions of the Committee are limited to one of the following:

A. Validate the contract award decision under appeal

B. Invalidate the contract award decision under appeal.

A written decision and the reasons that support the decision must be submitted to the Director of the Bureau -of General Services within fifteen (15) calendar days following the final day of the hearing of appeal.

2. NOTIFICATION OF FINAL AGENCY ACTION: The Director of the Bureau of General Services shall notify the petitioner, the contracting State agency, and all intervenors of this decision within ten (10) calendar days of receipt from the Appeal Committee. Such notification shall include the decision, an explanation of the reasons for the decision and an explanation of the petitioners right to judicial review of final agency action.

A. This notification is considered final agency action.

B. In the event the decision of the Appeal Committee is to invalidate the contract under these rules, the contract immediately becomes void and of no legal effect.

EFFECTIVE DATE:

February 11, 1991: filed under 18-123, Bureau of Purchases, Ch. 120 (New) , on February 6, 1991.

AMENDED:

May 9, 1995 – received May 4, 1995, filing 95-194

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 1, 1996

REVIEWED & CORRECTED:

May 24, 1995

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 130 Implementing the State Purchasing Code of Conduct Requiring that Vendors Furnishing Apparel, Footwear, or Textiles to the State Provide Healthy, Safe, and Fair Working Conditions

Code Me. R. 18-554 Ch. 130 Implementing the State Purchasing Code of Conduct Requiring That Vendors Furnishing Apparel, Footwear, or Textiles to the State Provide Healthy, Safe, and Fair Working Conditions {#sec-18-554-ch.-130 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 130}

Purpose: This Chapter supplements the State purchasing code of conduct, as set forth in 5 M.R.S.A. §1825-K et seq ., and applies to competitive bids for sale of apparel, footwear, or textiles pursuant to 5 M.R.S.A., C. 155, sub-c. I-A, and as set forth in 5 M.R.S.A. §1825-B, establishes a fee for vendors for developing a consortium to monitor and investigate alleged violations of the code of conduct.

§ 1. DEFINITIONS

Unless otherwise stated, for the purposes of this Chapter, the words appearing below are defined as follows:

A. Bidder. “Bidder” means a person responding to a solicitation issued by the State of Maine Division of Purchases with a proposal, a bid, or both, to provide to the State a good subject to this Chapter.

B. Code. “Code” means the Maine purchasing code of conduct, as set forth in 5 M.R.S.A. §1825-K et seq .

C. Division. “Division” means the Division of Purchases in the Bureau of General Services, Maine Department of Administrative and Financial Services.

D. Fee. “Fee” means a charge made by the State of Maine to a vendor who is under contract to provide goods subject to this Chapter.

E. Independent monitor. “Independent monitor” has the meaning given in Title 5, Chapter 155, sub-chapter 1-A of the Maine Revised Statutes Annotated.

F. Person. “Person” means any individual, partnership, corporation, association, federal, state or local government entity, or public or private organization of any character.

G. State Purchasing Agent. “State Purchasing Agent” means the Director of the Division of Purchases in the Bureau of General Services, Maine Department of Administrative and Financial Services, or the director’s authorized designee.

H. Sub-vendor. “Sub-vendor” means a person acting as a vendor’s supplier at the point of assembly of a good covered by this Chapter.

I. Vendor. “Vendor” means a person who, after bidding, has been awarded a contract by, and in fact contracts with, the State to provide a good subject to this Chapter.

§ 2. FILING REQUIREMENT

Any bidder making a competitive bid to sell apparel, footwear, or textiles to the State of Maine must file with the State Purchasing Agent a signed affidavit stating that the bidder, if awarded a State contract, shall comply with the Code and that, to the best of the bidder’s knowledge, each sub-vendor named in the bid that would perform work for the bidder if it were awarded a contract, is in compliance with the Code.

Prior to submitting a bid, the bidder must:

Furnish a copy of the Code to each sub-vendor that would perform work for the bidder if it were awarded the contract, and then,

Affirmatively require that each sub-vendor inform the bidder of whether the sub-vendor is in compliance with the Code.

The affidavit executed and filed with the State Purchasing Agent by the bidder must be signed by a person authorized to commit the bidder to the Code.

The affidavit must include the unaltered text of the Code, as well as the following provisions:

A requirement that the bidder must comply with all applicable wage, health, labor, environmental and safety laws, legal guarantees of freedom of association, building and fire codes, and laws relating to discrimination in hiring, promotion, or compensation on the basis of race, disability, national origin, gender, sexual orientation, or affiliation with any political, nongovernmental, or civic group except when federal law precludes the State from attaching the procurement conditions provided 5 M.R.S.A., C. 155, sub-c. 1-B; and

A requirement that the bidder must comply with all human and labor rights treaty obligations—including those obligations regarding forced labor, indentured labor, slave labor, child labor, involuntary prison labor, physical and sexual abuse, and freedom of association—that are shared by the United States and the country in which the goods subject to this Chapter are assembled.

The affidavit must be signed and dated under oath before an official authorized by applicable law to administer oaths.

All bidders subject to this Chapter must submit the affidavits described in this section prior to the close of the bidding deadline. Bids that do not include an affidavit must be rejected by the State Purchasing Agent, unless, after reasonable investigation, it appears that the required unit or item of supply or brand of that unit or item, is procurable by the State from only that supplier.

If, after complying with the filing requirements of this Section, a bidder is awarded a contract, the bidder must, during the term of the contract, promptly inform the State Purchasing Agent of any change of which the bidder is aware in the information furnished in the affidavit submitted at the time of the original bid and must submit a new, updated affidavit that conforms with provisions (A) through (E) of this section.

§ 3. COMPLAINTS OF NON-COMPLIANCE WITH THE CODE

The State Purchasing Agent must initiate an investigation to determine whether there has been a violation of the Code if:

The State Purchasing Agent has independent knowledge that a vendor or a sub-vendor is not in compliance with the Code;

The vendor informs the State Purchasing Agent that the vendor or a sub-vendor is not in compliance with the Code;

A worker for a vendor or sub-vendor files a written complaint directly with the State Purchasing Agent that the vendor or sub-vendor, to the best of the worker’s knowledge, is not in compliance with the Code;

A third-party established and based outside the United States, on behalf of or on the basis of information from a worker or workers, files directly with the State Purchasing Agent a signed and dated written complaint that a vendor or a sub-vendor, to the best of the third-party complainant’s knowledge, is not in compliance with the Code. If possible, the third-party’s written complaint will be signed and dated under oath before an official authorized to administer oaths;

A third-party established and based in the United States, on behalf of or on the basis of information from a worker or workers, files directly with the State Purchasing Agent a written complaint, signed and dated under oath before an official authorized by applicable law to administer oaths, that, to the best of the third-party complainant’s knowledge, a vendor or a sub-vendor is not in compliance with the Code.

Any complaint made to the State Purchasing Agent must state with reasonable specificity each reason a party subject to the complaint is allegedly not in compliance with the Code.

After receiving a complaint, filed in accordance with subsection A, above , alleging non-compliance with the Code, the State Purchasing Agent must timely contact, in writing and by certified letter, the vendor that is that subject of the complaint to inform the vendor of, and request a response to, the allegations made within fifteen (15) calendar days of receipt of the certified letter.

The failure to respond to the State Purchasing Agent’s request within fifteen (15) calendar days shall be deemed a strong indication that the vendor may not be in compliance with the Code, in which case the State Purchasing Agent shall require the subject vendor to supplement its response with a newly executed affidavit, per section 2, above . If a vendor fails to respond within thirty (30) calendar days of receipt of the State Purchasing Agent’s certified letter requesting a response, the State Purchasing Agent may initiate further action, up to and including termination of the State’s contract with the subject vendor.

§ 4. DETERMINATIONS OF COMPLIANCE OR NON-COMPLIANCE WITH THE CODE

1. In making a determination of whether there has been a violation of the Code, the State Purchasing Agent may take into account any factors, information, sources of information, and materials deemed reliable and relevant by the State Purchasing Agent, as determined on a case-by-case basis.
2. The determination of whether a party subject to a complaint is in compliance with the Code shall be solely that of the State Purchasing Agent.
3. After rendering a determination, the State Purchasing Agent promptly shall inform the complainant and vendor in writing.

§ 5. CONSEQUENCES OF A DETERMINATION OF NON-COMPLIANCE WITH THE CODE

A. If a vendor or a sub-vendor is determined by the State Purchasing Agent to be in non-compliance with the Code, the State Purchasing Agent shall inform the vendor and engage in discussions with the vendor about the violation. The purpose of the discussions is to work in partnership with the vendor to influence the vendor to change its practices or to use its bargaining position with the offending sub-vendor to change its practices, rather than to cease doing business with the vendor or sub-vendor.

B. The State Purchasing Agent shall prescribe appropriate measures for the vendor to take in order to comply with the Code. Those steps may include, but are not limited to, the following:

Requesting disclosure of names and addresses of suppliers at sub-vendors and sub-vendors’ working conditions;

Requesting that sub-vendors provide access to independent monitors;

Requesting that sub-vendors offer their workers the training and guidelines necessary to bring the workplace into compliance with the Code.

§ 6. Support to bidders and vendors

The State Purchasing Agent shall provide to bidders and vendors resources to assist with compliance with the Code. One such resource shall be a publicly accessible list of bidders and vendors that have adopted the Code.

§ 7. FEE

Any Vendor, who has been awarded a contract or purchase order for apparel, footwear or textiles from the State of Maine pursuant to the requirements of 5 M.R.S.A. §1825 shall be subject to a 1% fee of the total amount of the contract or purchase order.

The State Purchasing Agent shall apply this fee to the costs of implementing and administering the code under section 1825-L, including development of a consortium to developing a consortium to monitor and investigate alleged violations of the code of conduct.

This payment may be made separately by the vendor and is exclusive of the cost of the contract or purchase order. Payment of the fee is to be made within 30 days of the contract or purchase order execution/start date and is non-refundable.

In the event of circumstances when the total contract or purchase order value is not known at the time of the contract award, the State Purchasing Agent, is authorized to collect an estimated fee and subsequent installments as often as the State Purchasing Agent determines necessary, up to 180 days following the termination of the contract or purchase order, to equal the amount of the 1% fee.

Failure to pay the 1% fee may result in:

1. Loss of future contracts or purchase orders with the State of Maine, at the discretion of the State Purchasing Agent,

2. Immediate termination of the existing contract, within 30 days of written notification,

ORIGINAL STATUTORY AUTHORITY: 5 M.R.S.A. §1825-O

AMENDING STATUTORY AUTHORITY: 5 M.R.S.A §1825-B

EFFECTIVE DATE:

October 26, 2006 – filing 2006-424, filed September 26, 2006 (major substantive)

February 2, 2009 – filing 2008-603, filed December 31, 2008 (routine technical)

WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

Chapter 150 Chapter Defining the Means by which Contractors and Subcontractors are to Provide Certain Records to the Bureau of General Services in the Department of Administrative and Financial Services, and to Identify What Information in Those Records is Available to the Public

Code Me. R. 18-554 Ch. 150 Chapter defining the means by which contractors and subcontractors are to provide certain records to the Bureau of General Services in the Department of Administrative and Financial Services, and to identify what information in those records is available to the public {#sec-18-554-ch.-150 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 150}

Summary: This chapter defines the way contractors and subcontractors are to provide specified records to the Maine Bureau of General Services and identifies the types of information in such records that may be made publicly available.

SECTION 1: PURPOSE & APPLICABILITY OF CHAPTER

Purpose. The purpose of this Chapter is to define the manner in which specified records are to be provided by contractors and subcontractors to the Bureau of General Services, and to identify the information in those records that is and is not available to the public.

Applicability. This Chapter is applicable to public improvements for which proposals, plans, specifications, contracts, inspections, or renovations are subject to the approval of the Bureau of General Services in the Maine Department of Administrative and Financial Services, except for such improvements made by school administrative units, including construction, repair, or renovation of school buildings.

SECTION 2: DEFINITIONS

Unless stated otherwise in this Chapter, the terms below are defined as follows:

Bureau. “Bureau” means the Bureau of General Services in the Maine Department of Administrative and Financial Services.

Construction. “Construction” means any construction, reconstruction, demolition, improvement, enlargement, painting, decorating, or repair of any public works let to contract. Construction shall not be construed to include engineering or architectural services, temporary or emergency repairs, or any contract of less than $10,000.

Non-personal information. “Non-personal information” means information that cannot reasonably be expected to be useful, or actually be used, to invade the privacy of an individual. Such information includes, but is not limited to, the classification of contractors’ or subcontractors’ employees, the remuneration of such employees, their hours worked, job titles, and names, and hourly and actual wage information for each employee.

Personal information. “Personal information” means information that can reasonably be expected to be useful, or actually be used, to invade the privacy of an individual. Such information includes, but is not limited to, home address, home telephone number, home facsimile number, home e-mail address, personal cell phone number, personal pager number, and social security number.

Public works. “Public works” includes, but is not limited to, all buildings, roads, highways, bridges, streets, alleys, sewers, ditches, sewage disposal plants, demolition, waterworks, airports, and all other structures upon which construction may be let to contract by the Bureau and which contract amounts to $50,000 or more.

SECTION 3: DUTY OF CONTRACTORS AND SUBCONTRACTORS TO SUBMIT RECORDS WITH CERTAIN INFORMATION

Records of personnel. Pursuant to 26 M.R.S.A. § 1311, a contractor, and each subcontractor thereof, in charge of construction of a public work for the Maine Bureau of General Services shall keep an accurate record of the following:

1. The names and occupation of all the laborers, workers, and mechanics employed by them and all independent contractors working for them; and
2. The hours worked, the job titles, the hourly rates or other remuneration, and the actual wages or other compensation paid to each of the laborers, workers, mechanics, and independent contractors.

Record of personnel at job site. A contractor, and each subcontractor thereof, of the Bureau must keep a monthly-updated copy of the record described in section 3(A) above at the job site and make the record open at all reasonable hours to the inspection of the Bureau of Labor Standards and the Bureau.

Record of personnel to be filed with Bureau. A contractor, and each subcontractor thereof, of the Bureau must submit to the Bureau’s Director of Construction or designee, a monthly-updated copy of the record described in section 3(A) above. Submission may be made electronically or in hard copy form, but in either case must be accompanied by a signed letter certifying the submitted record is true and accurate to the best knowledge of the contractor or subcontractor. Personal information must be excluded from the records prior to their submission to the Director of Construction.

Violation for failure to keep or submit record. A contractor, and each subcontractor thereof, of the Bureau that willfully and knowingly fails to either keep or file a monthly-updated report per sections 3(A) – 3(C), above, will be subject to a monetary forfeiture of no less than two hundred fifty dollars ($250) per violation.

SECTION 4: NONDISCLOSURE OF PERSONAL INFORMATION BY THE BUREAU; DISCLOSURE OF NON-PERSONAL INFORMATION

Nondisclosure of personal information. The Bureau shall not disclose any personal information contained in a record filed pursuant to 26 M.R.S.A. § 1311 and this Chapter provided by a contractor, or any subcontractor thereof, of the Bureau.

Disclosure of non-personal information. The Bureau may disclose non-personal information in a record filed pursuant to 26 M.R.S.A. § 1311 and this Chapter provided by a contractor or any subcontractor thereof, if such information is in the custody of the Bureau.

History

• STATUTORY AUTHORITY: 26 M.R.S.A. §§ 1311, 1312
• EFFECTIVE DATE: August 30, 2005 – filing 2005-349
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 8, 2025

Chapter 155 Rules for Defining an Equivalent Basis for Cost Comparison Between State Employee and Private Contractor Provision of Services

Code Me. R. 18-554 Ch. 155 Rules for Defining an Equivalent Basis for Cost Comparison Between State Employee and Private Contractor Provision of Services {#sec-18-554-ch.-155 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-554 Ch. 155}

Rules defining an equivalent basis for cost comparison between state employee and private contractor provision of services

Part One. General

Section 1. Purpose and Scope

This section states the purpose and scope of the Bureau of General Services’ rules governing the equitable selection of contractor personal services.

Section 2. Definitions

This section defines terms used in the rule. Terms may be found in the text of the rule or the associated forms which require completion by the agency/department and bidders. Statutory definitions relating to the subject matter are contained in 5 MRSA 1825-A. Definitions.

Part Two. Construction of the Rule

Section 1. Creating an Equal Basis

This section discusses the issues with respect to the creation of an equivalent basis for considering personal services proposals.

Section 2. Responsibilities

This section outlines the responsibilities of the Agency or Department and the bidders when preparing requests and submitting proposals which would result in a contract for personal services.

Part Three. Application and Forms

Section 1. Applying the Provisions of the Rule

This section requires the use of a standard calculation to determine the best value to the State of Maine and suggests standard language to be included in the request for proposal document.

Section 2. Applicable Forms

This section outlines the information required to be collected and suggests a format for the collection, presentation, and analysis of the information.

Part One. General

Section One. Purpose and Scope

Summary: This section states the purpose and scope of the Bureau of General Services’ rules governing the equitable selection of contractor personal services.

1.1.1 Contracting for Personal Services Allowed.

5 MRSA 1816-A allows contracting for personal services when any number of conditions is met. Generally examples include, but are not limited to, services which are highly specialized or technical in nature, when it’s necessary to protect against a conflict of interest, if the location is such that state employees are not available, or the services are urgent, temporary or occasional in nature.

When contracting for personal services, agencies and departments are required to utilize a process of competitive bidding.

1.1.2 Rules Assuring an Equivalent Basis for Cost Comparison.

Contracting for personal services as part of 5 MRSA 1816-A is permitted to achieve actual cost savings when other conditions are met. However, 5 MRSA 1816-A, 2, I requires that an equivalent basis for cost comparison between state employee and private contractor provision of services must be calculated by rules adopted by the State Purchasing Agent to assure that the private contractor provides the best value. All personal services contracts are subject to this rule.

Section Two. Definitions

Summary: This section defines terms used in the rule. Terms may be found in the text of the rule or the associated forms which require completion by the agency/department and bidders. Statutory definitions relating to the subject matter are contained in 5 MRSA 1825-A. Definitions.

Administrative Costs

The charges made by a contractor providing personal services to recruit, select, retain, train, place, and supervise temporary workers; profit; and associated allowed costs, calculated on an annualized basis per FTE.

Classification Specification

Positions so sufficiently alike with respect to duties, responsibilities and authority that the same descriptive title may be used with clarity to designate each such position; the same knowledge, skill, and ability applied; the same process used to recruit, qualify and examine persons for each such position; and the same schedule of pay applied with equity to each such position.

Comparable Position

A state position that completes job duties similar to those being requested under a personal services contract. Job duties of state workers must be those described in a comparable classification specification.

Competitive Bidding Process

CBP

Depending on the circumstances, a process which allows use of either a solicited proposal or quotation for services from all known service providers in an area if the expected annual contract value is less than twenty thousand dollars (<$20,000).

Cost Differentials

In general, the difference between the temporary worker base cost and the state worker base cost. Cost differentials are calculated in the aggregate over the life of the contract.

Equivalent Basis

(see mathematical expression)

The dollar value of an employee’s Fully Burdened Employee Cost (FBEC) less health benefits and retirement benefits, calculated on an annualized basis.

Equivalent Basis = FBEC – (health insurance + retirement benefit costs).

Full Time Equivalent

FTE

(see mathematical expression)

A computed statistic representing the number of full-time employees that could have been employed if the reported number of hours worked by part-time, temporary, or intermittent employees had been worked by full-time employees. This statistic is calculated by dividing the hours worked per year by 2080 and is commonly reported as a whole number, decimal or fraction.

Full Time Equivalent = hours worked in 12 months/2080

Fully Burdened Employee Cost

FBEC

The total cost of an employee’s salary and benefits including the base salary and all premium adjustments and stipends, state paid amounts for retirement, health, dental, and life insurance, and the amount associated with workers’ compensation. This amount is found as the “total cost” on the employee Position Profile Report.

Health Benefit Costs

Annualized dollar value of major medical and dental insurance provided at the expense of the employer, covering the employee only. For state workers, these are the health and dental costs shown on the Position Profile Report.

Job Duties

The functional tasks of a position, expressed in percentage of time per FTE, describing fundamental responsibilities which account for five percent (5%) or more of the work. Job duties for state workers must significantly correlate to or be those listed in the classification specification of the specific position.

Lay-off Notice Cost

(see mathematical expression)

The cost associated with the lay-off notice period. This cost is the sum of total benefits and total salary as taken from the Position Profile Report divided by 52 and multiplied by the number of weeks of the lay-off notice period.

Lay-off Notice Cost = FBEC/52 x Number of Weeks in Lay-off Notice Period.

Lay-off Notice Period

The period of notice required for lay-offs of state workers as specified in collective bargaining agreements.

Position Profile Report

A report from the Budget and Financial Management System produced for each authorized position in state government summarizing the salary and benefit costs of the position.

Request For Proposal

RFP

A formal and structured inquiry published by an agency or department of state government soliciting information by which a selection may be made of a contractor to provide specific services.

Retirement Benefit Costs

Annualized employer contributions to Social Security or the Maine State Retirement System. Retirement benefits for state workers are the sum of normal and unfunded liability and administrative costs on behalf of the Retirement System and health costs taken from the Position Profile Report.

Social Security

Contributions made by the employer pursuant to the Federal Insurance Contributions Act.

State Worker Base Cost

SWBC

(see mathematical expression)

The cost to the state to utilize state employees to provide services. This is calculated as the Fully Burdened Employee Cost (FBEC) less health and retirement benefits plus a supervisory adjustment, unemployment costs, and the lay off notice cost at step 3 of the pay range.

SWBC = FBEC – (health insurance and retirement benefit costs) + supervisory adjustment + unemployment costs + lay off notice cost.

Supervisory Adjustment

The estimated additional cost to the State, calculated on an annualized basis, associated with the need to add supervisory staff to deal with the administration of state workers when temporary workers cannot be hired. It is the product of the number of additional supervisors required and the supervisors’ compensation.

Supervisor’s Compensation

The sum of the total salary and the value of the total benefits, taken from the Position Profile Report, for the supervisor of the comparable position.

Temporary Worker Base Cost

TWBC

(see mathematical expression)

The annualized cost for the provision of temporary, non-civil service workers. This is calculated as the annual value of the hourly wage less the combined health and retirement benefits plus administrative costs.

TWBC = Hourly Wage Annualized – (health insurance and retirement benefit costs) + administrative costs.

Total Benefits

The total benefits of a specific position, taken from the Position Profile Report.

Total Salary

The total salary of a specific position, taken from the Position Profile Report.

Unemployment Costs

The arithmetic mean of the state’s total unemployment costs over the preceding five years, or years for which data are available, expressed as the product of a percentage of the base cost and the state worker base salary over a 26 week period.

Unemployment Costs = ((State Unemployment Cost/State Payroll)n1..n5/n) * Annual Equivalent Cost * 0.5) The sum of State Unemployment Costs divided by the sum of State Payroll Costs for up to 5 years multiplied by the Annual Equivalent Cost times 0.5.

Part Two. Construction of the Rule

Section One. Creating an Equal Basis

Summary: This section discusses the issues with respect to the creation of an equivalent basis for considering personal services proposals.

2.1.1 Recognizing the Need to Create an Equivalent Basis for Comparison.

Personal services’ contracting is permitted by statute when certain conditions are met. Among the provisions listed is one to assure “...an equivalent basis for comparison between state employee and private contractor provision of services...” in rules adopted by the State Purchasing Agent. The intent of the rule is then to create an equal basis for the comparison of proposals.

2.1.2 Satisfying the Need to Create an Equivalent Basis for Comparison.

It is the intent to consider cost as one of the factors in a decision. Agencies and departments are faced with the dilemma of considering unequal health and retirement benefit programs and any associated expense. A challenge is to determine the value of the associated program expenses for all parties to the bid and, effectively, consider the state as one of the bidders. Equality can be introduced by removing health and retirement benefit costs from the cost consideration for all parties, including the state, to the bid.

2.1.3 Other Costs.

There are also other costs dealing with either the provision of service by contractors or state employees. These are typically overhead and profit and a supervisory adjustment, unemployment costs, and layoff notice costs. These costs are more consistent in their content and intent, and would be identified, and be part of the comparison protocol.

2.1.4 Supervisory Adjustment.

The table lists the number of additional Full Time Equivalent supervisors involved with personnel administration required for the proposed numbers of workers. The number of additional supervisory administrators required is for the full complement of additional state employees and would be prorated to reflect the actual number of positions. Note: The values in column two, Numbers of Additional Supervisory Administrators Required, may vary among agencies and departments.

Table 1.

Number of FTE Administrators per Additional FTE Employees

Number of Additional State Employees in FTEs

Number of Additional Supervisory Administrators Required

0-6

0

7-12

0.5

13-18

1

19-24

1.5

25-30

2

31-36

2.5

2.1.5 Providing Information to Allow the Comparison.

As part of the Competitive Bidding Process, CBP, submission to the Division of Purchases, the Agency or Department would be required to provide certain information from each of the bidders as well as the Agency or Department on forms stipulated for use by the Division of Purchases. Any proposal received that does not have the required information must be rejected as non-responsive to the CBP and eliminated from consideration.

Section Two. Responsibilities

Summary: This section outlines the responsibilities of the Agency or Department and the bidders when preparing requests and submitting proposals which would result in a contract for personal services.

2.2.1 Responsibilities of the Agency or Department.

The Agency or Department desiring to become involved in the CBP seeking a personal services contract shall prepare a report on forms stipulated for use by the Division of Purchases and submit the material to the Director, Division of Purchases with the CBP to the Division for approval. The report shall include, but not be limited to:

a projection of all job duties being sought, summed in hours by job duty and rounded to the nearest whole hour;

the FTEs for each job duty;

the comparable position for the job duties; and,

the state worker base cost for each comparable position.

No CBP submission shall be released if the Director finds this report to be inadequate, incorrect or inconsistent with the personal services requested in the associated CBP.

2.2.2 Responsibilities of the Bidder.

The Director, Division of Purchases, shall develop standard language for CBPs that describe the information required of bidders to allow calculation of cost differentials. This shall include, but not limited to, the identification of the temporary worker base cost for each position proposed. The Director may require that the information required to calculate cost differentials be submitted using a standard form. Proposals that do not provide the information required must be rejected as non-responsive to the CBP and be eliminated from consideration.

Part Three. Application and Forms

Section One. Applying the Provisions of the Rule When Making the Selection

Summary: This section requires the use of a standard calculation to determine the best value to the State of Maine and suggests standard language to be included in the request for proposal document.

3.1.1 Including Standard Language and Demonstrating Best Value.

Agencies or Departments desiring to become involved in a CBP seeking a personal services contract shall include standard language and a calculation, both referenced below, in making a selection. The calculation must be provided to the Division of Purchases for consideration by the State Purchases Review Committee. No selection will be approved without this information.

For each position the agency must demonstrate that the Temporary Worker Base Cost [TWBC] multiplied by the number of FTEs is less than the State Worker Base Cost [SWBC] multiplied by the number of FTEs in order to allow consideration of that bidder’s proposal. Should the calculation result in the SWBC being less than the TWBC, there would be no further consideration of that bidder’s proposal.

3.1.2 Standard Language

In each proposal issued, the Agency or Department must include the following standard language approved by the Division of Purchases.

Maine law and rules require a comparison to determine if selecting the private contractor provides the best value to the State Of Maine. The Division of Purchases has reviewed the data collection forms and the proposed assessment method and considers these to be compliant with statute and rule.

Section Two. The Forms

Summary: This section outlines the information required to be collected and suggests a format for the collection, presentation, and analysis of the information.

3.2.1 Bidder Information

A suggested format for use by bidders providing submissions for personal services is shown below as a Bidder Position Cost Submission. NOTE: A distinctive font has been used to better present the data to be entered by the Agency/Department and the Bidder on the form. The position(s) would be identified by the Agency or Department and shown in column titled, “Position Name,” together with the Annualized Hours for which the services of the position(s) are required (column 2). To allow a proper comparison to the State Employee data, this value would be “2080.” Bidders would be required to provide the Hourly Wage, the Annualized Value of Health and Retirement Benefit Costs for the position(s), and the Annualized Prorated Share of Administrative Costs for the position(s). The resulting value(s) for the “Temporary Worker Base Cost TWBC” for the position(s) would be computed and entered into the table.

Name of Bidder

1

2

3

4

5

Position Name

Hourly Wage & Value of Benefits

Annualized Hours

Hourly Wage Annualized

(1 x 2)

Value of Health & Retirement Benefits (Annualized)

Prorated Share of Administrative Costs (Annualized)

TWBC

(3 – 4 + 5)

.. position 1

2080

.. position 2

2080

The actual Bidder Position Cost Submission for use by bidders responding to proposals is found on the following page and is available in a paper or electronic form.

State of Maine

Enter Bidder's Name in the Cell Below

Bidder Position Cost Submission

Show the Bidder's Name in the box at the upper right. It's possible to enter data which will calculate the Temporary Worker Base Cost for up to two positions by making entries in each of the tables below. See the instructions at the top of each table concerning the detailed entries required. Sheet access is limited; most cells are "write protected."

Instructions: Make numerical entries as dollars per hour to the right of (1), (4), and (6) in the table below and type of name of the position replacing the text "Enter the Name of the Position in this Cell @ (8)." Other cells are "write protected."

Element

Amount

Explanatory Notes for Various Entries and Position Name

1. Wage and Value of All Benefits Expressed as an Hourly Rate

$0.00

Enter the Hourly Wage and the Value of All Benefits paid to and on behalf of the Employee including FICA, Insurance, and Stipends.

2. Annualized Hours

2080

Enter 2080 for one Full Time Equivalent.

3. Annual Value of Wages & Benefits paid to Employee

$0.00

The cell formula calculates the Annual Value of Wages and Benefits paid to the Employee; otherwise it’s the product of the values in (1) and (2) of the middle column.

4. Hourly Rate of Benefits paid to the Employee

$0.00

Calculate and enter the Hourly Rate for Benefits paid to the employee.

5. Annual Value of Benefits paid to Employee

$0.00

The cell formula calculates the Annual Value of Benefits paid to the Employee; otherwise it’s the product of the values in (4) and (2) of the middle column.

6. Hourly Rate of Prorated Share of Administrative Costs

$0.00

Calculate and enter the Hourly Rate of the Prorated Share of Administrative Costs.

7. Annual Value of Prorated Share of Administrative Costs

$0.00

The cell formula calculates the Annual Value of the Prorated Share of Administrative Costs; otherwise it’s the product of the values in (6) and (2) of the middle column.

8. Temporary Worker Base Cost for the position named at the right.

$0.00

Enter the Name of the Position in this Cell

Using the values in the middle column, begin with (3), deduct the value of (5) and add the value in (7) to calculate the Temporary Worker Base Cost for this position.

Instructions: Make numerical entries as dollars per hour to the right of (1), (4), and (6) in the table below and type of name of the position replacing the text "Enter the Name of the Position in this Cell @ (8)." Other cells are "write protected."

Element

Amount

Explanatory Notes for Various Entries and Position Name

1. Wage and Value of All Benefits Expressed as an Hourly Rate.

$0.00

Enter the Hourly Wage and the Value of All Benefits paid to and on behalf of the Employee including FICA, Insurance, and Stipends.

2. Annualized Hours

2080

Enter 2080 for one Full Time Equivalent.

3. Annual Value of Wages & Benefits paid to Employee

$0.00

The cell formula calculates the Annual Value of Wages and Benefits paid to the Employee; otherwise it’s the product of the values in (1) and (2) of the middle column.

4. Hourly Rate of Benefits paid to the Employee.

$0.00

Calculate and enter the Hourly Rate for Benefits paid to the employee.

5. Annual Value of Benefits paid to Employee

$0.00

The cell formula calculates the Annual Value of Benefits paid to the Employee; otherwise it’s the product of the values in (4) and (2) of the middle column.

6. Hourly Rate of Prorated Share of Administrative Costs.

$0.00

Calculate and enter the Hourly Rate of the Prorated Share of Administrative Costs.

7. Annual Value of Prorated Share of Administrative Costs

$0.00

The cell formula calculates the Annual Value of the Prorated Share of Administrative Costs; otherwise it’s the product of the values in (6) and (2) of the middle column.

8. Temporary Worker Base Cost for the position named at the right.

$0.00

Enter the Name of the Position in this Cell

Using the values in the middle column, begin with (3), deduct the value of (5) and add the value in (7) to calculate the Temporary Worker Base Cost for this position.

3.2.2 Agency or Department Information

The format for use by Agencies and Departments when initiating proposals for personal services is shown below.

A form must be completed for the position(s) for which personal services are requested, identifying the job duty descriptions and projecting the annual hours by duty. The form is available in a spreadsheet format with cell formulas provided to aid completion.

State of Maine

State Worker Base Cost Development Worksheet and Bid Comparison

Part One. Identifying Job Duties and Projected Annual Hours

Instructions: Show the agency name in the space provided. The Projected Job Duty Descriptions and percentage of time associated with each should be for a position which would be named below. That State Equivalent Classification Name and Total Project Annual Hours must be entered on the Bidders' Proposal Form.

Agency Name

enter the Agency Name

Show Projected Job Duty Descriptions Below (Make up to 6 entries with Corresponding Estimated Annual Hours per Job Duty)

Estimated Annual Hours

1 >

2 >

3 >

4 >

5 >

6 >

Position Classification Name

Number

0.00

Make entries in all cells with a distinctive blue colored type face.

Enter the Position Name and Number Above for the Duties Described. Total Projected Annual Hours will be summed and should be the basis for the bidder proposal.

Total Projected Annual Hours

Part Two. Developing the State Worker Base Cost for the Position

This section of the form allows development of the State Worker Base Cost for the position named above. Make entries to the right of the text on lines 1, 2, 3, 6, 7 and 8. The values in boxes 4, 9, 10 and 11 will be entered as a result of cell formulas in the sheet.

1

For the Position Named Above, enter the Fully Burdened Employee Cost at the right . . .

$0.00

2

Enter the cost of all Health Insurance at the right . . .

$0.00

3

Enter the costs associated with Retirement at the right . . .

$0.00

4

Costs of all Health Insurance and Retirement are summed and appear at the right . . .

$0.00

5

The value on line 4 is deducted from the Fully Burdened Employee Cost on line 1

$0.00

6

Show the number of Supervisor FTE's at the right

0.00

The percentage for unemployment costs is an average of the last five years of state experience with the payment carried for 26 weeks. The Layoff Notice Cost is based on the Fully Burdened Employee Cost.

7

Show the number of Employee FTE’s supervised at the right

0.00

8

Show the Supervisor's Compensation at the right . . .

$0.00

9

Divide Supervisor by Employee FTE's, then multiply by Compensation & show at the right .

$0.00

10

Enter the Unemployment Costs, calculated elsewhere, in the space at the right . . .

$0.00

0.16%

Show the State Percentage at the left

11

Enter the Layoff Notice Cost, calculated elsewhere, in the space at the right . . .

$0.00

2

Show No. of Weeks in Layoff Notice Period

12

Sum the values on lines 5, 9, 10, and 11 and show the result at the right . . .

$0.00

This value is the State Worker Base Cost

Part Three. Comparison with Bidder's Amount for this Position

For the bidders participating in the proposal and answering with forms and data, show the name(s) and the associated amount(s) for this position only. The values should be compared to the amount shown on line 12 in Part Two in order to have an indication of the "best value" calculation required in statute.

13a

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

13b

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

13c

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

13d

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

13e

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

13f

Enter the Bidder's Name and Amount for this Position at right

Name

TWBC Amount

3.2.3 Advice to Agencies/Departments and Bidders.

The two forms described above are intended to allow determination of “Best Value.” Any RFP issued would require submission of the usual and customary sheets and schedules required by the Division of Purchases to describe the actual scope of services for which the proposal is describing.

EFFECTIVE DATE:

February 10, 2005 – filing 2005-49

18-554 Chapter 155. Defining an Equivalent Basis for Cost Comparison between State Employees and Private Contractor Provision of Services

File reference:

F:\Rules on 1816-A, 2, I\Final Rule 1

18-674 Maine Board of Tax Appeals

Chapter 100 Maine Board of Tax Appeals Practice and Procedure

Code Me. R. 18-674 Ch. 100 Maine Board of Tax Appeals Practice and Procedure {#sec-18-674-ch.-100 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-674 Ch. 100}

SUMMARY: This Chapter establishes rules of practice and procedure before the Maine Board of Tax Appeals as required by 36 M.R.S. §151-D.

PART 1. GENERAL PROVISIONS

Section 101. Purpose and Scope

1. Purpose

The purpose of these Rules is to set out efficient and effective procedures by which the Maine Board of Tax Appeals shall fulfill its purpose, as described in 36 M.R.S. §151‑D(1), of providing Taxpayers with a fair system of resolving controversies with Maine Revenue Services, and to ensure that Taxpayers receive due process. This chapter shall govern all practice and procedure before the Board under the applicable laws of the State of Maine, unless otherwise directed by the Board.

2. Scope

These Rules do not limit the statutory duties or powers of the Board or the Appeals Officers. The absence of a rule does not limit the Board’s or an Appeals Officer’s respective power to act pursuant to their respective statutory authorizations.

Section 102. Authority

The authority for this chapter is 36 M.R.S. §151-D(10), which provides that “the [B]oard shall adopt rules to accomplish the purposes of this section.”

Section 103. Definitions

Unless the context otherwise requires, the following terms shall have the following meanings:

1. “Administrative Meeting”

“Administrative Meeting” means a meeting at which the Board will discuss policies, rules, administrative issues or any business other than Taxpayer appeals.

2. “Appeals Conference”

“Appeals Conference” means a proceeding presided over by an Appeals Officer at which a Taxpayer, whether represented or unrepresented, is afforded a full and fair opportunity to present oral and written arguments and submit documentary and testimonial evidence in order to show that an assessment or determination issued to the Taxpayer by Maine Revenue Services is incorrect, and at which Maine Revenue Services is afforded a full and fair opportunity to explain, support and otherwise defend the assessment or determination.

3. “Appeals Meeting”

“Appeals Meeting” means a meeting of the Board held for the sole purpose of considering and deciding Taxpayer appeals.

4. “Appeals Office”

“Appeals Office” means the office established and maintained by the Board to assist the Board pursuant to 36 M.R.S. §151-D(8).

5. “Appeals Officer”

“Appeals Officer” means a person employed by the Board to conduct Appeals Conferences and draft recommended decisions.

6. “Assessor”

“Assessor” means the State Tax Assessor.

7. “Board”

“Board” means the Maine Board of Tax Appeals as established in 5 M.R.S. §12004‑B(10). The Board has the responsibilities and powers generally set forth in section 12004‑B, to be exercised as more particularly provided by 36 M.R.S. §151-D.

8. “Bureau”

“Bureau” means the Bureau of Revenue Services, which may also be referred to as “Maine Revenue Services.”

9. “Bureau’s Representative”

“Bureau’s Representative” means the person or persons advocating for the Bureau in proceedings before the Board.

10. “Chief Appeals Officer”

“Chief Appeals Officer” means the person appointed by the Commissioner of Administrative and Financial Services to assist the Board and manage the Appeals Office pursuant to 36 M.R.S. §151-D(9).

11. “Party”

“Party” means either the Taxpayer or the Bureau.

12. “Person”

“Person” means an individual, firm, partnership, association, society, club, corporation, financial institution, estate, trust, business trust, receiver, assignee, or any other group or combination acting as a unit, and the State or Federal government, including any political subdivision or agency of either government, other than the Board and the Appeals Office.

13. “Record”

“Record” means all documents and other information submitted by the parties, or obtained pursuant to an Appeals Officer’s request or subpoena, for use by the Appeals Office and the Board in their consideration of appeals pursuant to 36 M.R.S. §151-D, the Recommended Decision and the parties’ comments concerning the Recommended Decision. “Record” as used herein does not refer to a record as defined under 5 M.R.S. §9059, which is developed pursuant to an adjudicatory hearing conducted in accordance with the Administrative Procedure Act .

14. “Tax”

“Tax” means any tax as defined under 36 M.R.S. §111, the assessment of, collection of, or any other action concerning which may be appealed under 36 M.R.S. §151.

15. “Taxpayer”

“Taxpayer” means any person required to file a return, or any person the Bureau has asserted is required to file a return, concerning any tax, or who has or is required to pay, withhold and pay over, or collect and pay over any tax. “Taxpayer” also means any pass-through entity doing business in the State or having a Maine resident member, including an S corporation, general partnership, limited partnership, limited liability partnership, limited liability company or similar entity, that is not taxed as a C corporation for federal tax purposes.

Any term not defined herein has the same meaning as that term is given in Title 36 of the Maine Revised Statutes , unless the context requires otherwise.

Section 104. Authorized Representatives

1. Representation

A Taxpayer may be, but is not required to be, represented before the Appeals Office and the Board by an attorney, a certified public accountant, an enrolled agent, an enrolled actuary or any other person appointed by the Taxpayer.

2. Withdrawal of representation

A person representing a Taxpayer may withdraw from that representation at any time by providing written notice to the Appeals Officer, the Taxpayer and the Bureau.

Section 105. Bringing an Appeal

1. Who may appeal

Any person who is aggrieved by a reconsidered decision of the Assessor regarding an assessment or determination issued to that person, or a reconsideration request that is deemed denied pursuant to 36 M.R.S.A. §151(2)(C), may appeal to the Board from the Assessor’s reconsidered decision or deemed denial when the amount of tax or the refund request in controversy is greater than or equal to $1,000 but not greater than $500,000, calculated at the time a petition for reconsideration is submitted to MRS. This amount in controversy applies to timely petitions submitted to MRS on or after October 25, 2023.

Where the amount in controversy is more than $500,000, the person may appeal only to the Maine Superior Court. In addition, a reconsidered decision rendered on a small claim request constitutes the Assessor's final determination and final agency action and is subject to de novo review only by the Maine Superior Court. A "small claim request" means a petition for reconsideration when the amount of tax or refund request in controversy is less than $1,000. Further, pursuant to Title 36 Section 151, if a person receives notice of an assessment or a determination and does not file a petition for reconsideration within the specified time period, a review is not available in Superior Court or before the Board regardless of whether the person makes payment and requests a refund.

2. Time for filing

Any Taxpayer wishing to appeal the Assessor’s reconsidered decision to the Board must, in accordance with 36 M.R.S. §151(2)(F)(1), file a written statement of appeal with the Board within 60 days of receiving the Assessor’s reconsidered decision. A Taxpayer may deem a reconsideration request denied if the Assessor does not issue a reconsidered decision within the 90 day period specified in 36 M.R.S. §151(2)(B), or any extension thereof, by filing a written statement of appeal with the Board. In accordance with 36 M.R.S. §153(1), a written statement of appeal shall be deemed filed with the Board on the date it is postmarked by the United States Postal Service or marked with similar evidence of submission for delivery by any delivery service designated by the United States Secretary of the Treasury pursuant to 26 U.S.C. §7502(f)(2). Upon receiving a statement of appeal the Appeals Office shall forward a copy to the Bureau as notification that an appeal has been filed.

3. Computation of time

In computing any period of time prescribed or allowed by this chapter, or by any applicable statute, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included. Pursuant to 36 M.R.S. §153(2), when the last day of the prescribed period is a Saturday, a Sunday, or a legal holiday in this State, the period runs until the end of the next day which is not a Saturday, a Sunday, or a legal holiday in this State. When the period of time prescribed or allowed is less than 7 days, intermediate Saturdays, Sundays and legal holidays shall be excluded in the computation.

4. Request for Appeals Conference

Pursuant to 36 M.R.S. §151-D(10)(A), if a Taxpayer desires an Appeals Conference, the Taxpayer must submit a written request for one within 20 days of filing the statement of appeal.

5. Processing fee

When a Taxpayer requests an Appeals Conference, a processing fee of $100, payable to the “Treasurer, State of Maine”, must be tendered to the Appeals Office within 21 days of the filing of the statement of appeal. For good cause shown, the Board may either grant additional time for payment of the processing fee, or waive payment altogether, provided the Taxpayer files a written request with the Appeals Office for additional time for payment or waiver of payment before payment of the fee is due. The request must describe the reasons why the payment of the fee at the time of the appeal constitutes undue hardship for the Taxpayer.

6. Acknowledgement of statement of appeal

Upon receipt of a written statement of appeal, the Appeals Office shall send an acknowledgement of receipt to the Taxpayer and the Bureau.

7. Withdrawal

The Taxpayer may withdraw the statement of appeal at any stage of the proceedings prior to the issuance of a decision by the Board pursuant to section 304 of this chapter, with the effect being the same as though the statement of appeal had never been filed.

Section 106. Scheduling

1. Assignment to Appeals Officer

When a statement of appeal is received, the Chief Appeals Officer will assign the appeal to an Appeals Officer for the purposes set forth in part 2 of this chapter.

2. Appeals Conference scheduling

If an Appeals Conference was requested it will be scheduled as soon as practicable, taking into account the availability of the parties. In conformity with 36 M.R.S. §151‑D(10)(B), the Appeals Office will provide the parties with at least 10 working days’ notice of the date, time and place of the Appeals Conference, except that an Appeals Conference may be held with fewer than 10 working days’ notice if a mutually convenient date, time, and place can be arranged.

3. Re-scheduling for cause

The Appeals Conference may be re-scheduled at a party’s request for good cause shown or by consent or agreement of the parties and the approval of the Appeals Officer. The parties will be given 10 working days’ notice of the re-scheduled conference. An Appeals Conference can be re-scheduled with fewer than 10 working days’ notice with the mutual agreement of the parties.

4. Request for representation made at conference

If at any time during an Appeals Conference an unrepresented Taxpayer clearly states that the Taxpayer wishes to consult with an attorney, a certified public accountant, an enrolled agent, an enrolled actuary, or any other person, the Appeals Officer may suspend the Appeals Conference for a reasonable period of time to allow the Taxpayer to do so.

5. Appeals Conference attendance

Due to the confidentiality of Taxpayer information mandated by 36 M.R.S. §191, attendance at the Appeals Conference shall be limited to the Appeals Officer, the parties, their representatives and witnesses. Any other individuals agreed to by the parties may attend the conference if advance written notice is given to the Appeals Officer.

6. Conference not requested

As provided by 36 M.R.S. §151-D(10)(D), if no Appeals Conference has been requested, the Appeals Officer shall prepare a recommended decision for the Board’s consideration based upon the written materials submitted in accordance with the provisions of section 201 of this chapter.

PART 2. PROCEEDINGS BEFORE THE APPEALS OFFICE

Section 201. Filings

1. Providing information and evidence to the Appeals Office

A. Following the filing of the statement of appeal, whether or not an Appeals Conference is scheduled, the Appeals Office shall request that the Taxpayer submit written materials that explain and support the Taxpayer’s position regarding the Bureau’s reconsidered decision and identify the relief the Taxpayer is seeking. These materials may consist of no more than 10 pages of legal and factual arguments, to which may be attached any documentary evidence or affidavits the taxpayer wishes the Appeals Officer to consider. The Taxpayer’s submission must be filed no later than 21 days from the date the Taxpayer receives the Appeals Officer’s request. A copy of the materials must be provided to the Bureau at the time that they are delivered to the Appeals Officer.

B. After receiving the Taxpayer’s written submission, the Bureau may submit a written response to the Taxpayer’s arguments and evidence, consisting of no more than 10 pages of legal or factual arguments, to which may be attached any documentary evidence or affidavits the Bureau wishes the Appeals Officer to consider. This response must be filed no later than 21 days from the date of the Bureau’s receipt of the Taxpayer’s submission. The Bureau must deliver a copy of its response to the Taxpayer at the same time it delivers its response to the Appeals Officer.

C. No later than 7 days after receiving the Bureau’s response, the Taxpayer may submit a reply, a copy of which must be delivered to the Bureau at the same time it is delivered to the Appeals Officer. The Taxpayer’s reply must be limited to the arguments and issues raised by the Bureau in its response, and must consist of no more than 5 pages of legal and factual arguments, to which may be attached any documentary evidence or affidavits the taxpayer wishes the Appeals Officer to consider.

D. The authenticity of all documents submitted by the parties is deemed admitted unless subject to a written objection made no later than 14 days from the date of their submission to the Appeals Officer.

E. Upon a party’s request, and with a showing of good cause, the Appeals Officer may extend the deadlines and increase the page limits for submissions made pursuant to this section.

2. Additional evidence

If, during the course of the conference or, where no conference was requested, during the Appeals Officer’s review of the parties’ submissions, it appears that additional evidence or factual or legal analysis is necessary for the fair determination of the appeal, the Appeals Officer may set a deadline for the submission of any such additional evidence or analysis, and shall provide an opportunity for the non-submitting party to file a written response to such evidence or analysis.

3. Appeals Conference

Appeals Conferences shall ordinarily be held at the Board’s offices at 108 Sewall Street in Augusta, Maine. An Appeals Conference shall be conducted in an informal manner. The Appeals Officer shall ensure that both the Taxpayer and the Bureau’s Representative have an equal opportunity to present testimony and arguments. The parties may present oral and documentary evidence at the Appeals Conference and the Appeals Officer may allow the parties to question one another directly. The Appeals Conference may be conducted in whole or in part via telephone. The Appeals Conference may be recessed and reconvened as the Appeals Officer deems necessary or appropriate for the fair determination of the appeal.

Section 202. Appeals Officer

1. Duty and powers

It is the Appeals Officer’s role to administer the appeal process and to render a fair and impartial recommended decision to the Board. The recommended decision must be based on the record as a whole and resolve all material issues in the appeal. In fulfilling this role, the Appeals Officer is authorized to do the following:

A. To hold case management conferences, which may be conducted via telephone, if the Appeals Officer believes they may achieve one or more of the following purposes:

(1) Identifying and clarifying the issues;

(2) Developing agreement as to facts;

(3) Identifying witnesses and exhibits, and apprising the parties as fully as is practicable of the evidence to be offered by the opposing party in order to eliminate as far as possible the element of surprise;

(4) Identifying and resolving disputes regarding the production and admissibility of evidence, including the making of evidentiary rulings; and

(5) Taking any other action the Appeals Officer determines is appropriate for the provision of a fair, efficient and effective appeal process.

B. To rule on any request that may be made at the Appeals Conference, or at any other time during the appeal process prior to delivery of the recommended decision to the Board.

C. To regulate the presentation of evidence, including the order of witnesses, and to otherwise regulate the participation of the parties.

D. To examine parties and witnesses.

E. To rule on the admissibility of evidence pursuant to section 203 of this chapter;

F. To ensure that relevant evidence is incorporated into the record.

G. In the event that either the Taxpayer or the Bureau’s Representative fails to appear at a conference, to prepare a recommended decision for the Board based upon the arguments and evidence presented by the party attending the conference and the written materials submitted by both parties prior to the scheduled date of the conference.

H. With the agreement of the parties, to conduct a consolidated conference concerning the appeals of more than one Taxpayer when those appeals involve substantially similar issues of fact and law.

I. To set deadlines for the submission of additional evidence and materials, after the expiration of which the Appeals Officer will not consider additional evidence and materials submitted by the parties.

2 . Ex Parte communications

In accordance with 36 M.R.S. §151-D(10)(G), the Appeals Officer shall not have any ex parte communications with or on behalf of any party, except on questions that involve ministerial or administrative matters that do not address the substance of the issues or the positions taken by the Taxpayer or the Bureau. To prevent such ex parte communications, all parties shall furnish a copy of any requests, filings, or other communications with the Appeals Officer to the opposing party. The Appeals Officer may communicate with the Board and other employees of the Appeals Office.

3. Recusal

An Appeals Officer may be recused from participating in an appeal as follows:

A. By request of a party. Either party may request that the assigned Appeals Officer be recused if that party believes the Appeals Officer has a conflict of interest or for some other reason will not be able to fairly conduct the proceedings and issue an impartial recommended decision. In the event such a request is made, the Chief Appeals Officer shall determine whether to assign another Appeals Officer to the matter.

B. Upon the Appeals Officer’s own determination. If the Appeals Officer assigned to an appeal believes he or she may have a conflict of interest, or for any other reason may not be able to fairly conduct the proceedings and issue an impartial recommended decision in an assigned appeal, the Appeals Officer shall so notify the Chief Appeals Officer, who may assign another Appeals Officer to the matter.

Section 203. Evidence

Formal Rules of Evidence; Privilege; Admissibility

The Appeals Officer need not observe the rules of evidence observed by the Maine courts, but shall observe the rules of privilege and the protection of work product recognized under Maine law. The Appeals Officer shall admit evidence if it is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. The Appeals Officer may exclude evidence which is irrelevant or unduly repetitious.

2. Testimony

Evidence may be given orally at the Appeals Conference or, if no conference was requested, by an unsworn statement or sworn affidavit. If an Appeals Conference was requested such statements and affidavits must be submitted in advance of the Appeals Conference in accordance with section 201 of this chapter. If evidence is offered through a sworn affidavit, the submitting party shall make the affiant available for cross-examination unless the opposing party waives the opportunity to cross-examine the affiant. Such cross-examination may be conducted with the affiant present in person or via telephone during the Appeals Conference. If the affiant is not made available for cross-examination as requested, the affidavit may be excluded from evidence by the Appeals Officer. In an appeal in which no conference was requested, the Appeals Officer may, upon the request of a party and for good cause shown, allow cross-examination of an affiant. Such cross-examination may be conducted via telephone and shall be limited to questions concerning the information contained in the affidavit. At the conclusion of any cross-examination, the party that submitted the affidavit will also be given an opportunity to question the affiant.

3. Weight of evidence; Credibility

In issuing a recommended decision, the Appeals Officer shall determine the weight to be given to the evidence submitted and the credibility of witness statements, although, as provided by 36 M.R.S. §151-D(10)(I), and as set forth in section 304 of this chapter, the Board is not bound by the Appeals Officer’s determinations.

4. Agreement on facts

When the parties agree on a fact or facts, the Appeals Officer may make a finding of fact on the basis of that agreement. Signed statements or oral statements made by parties during Board proceedings, including those made at a case management conference conducted via telephone, are sufficient to show agreement.

5. Official notice of facts

The Appeals Officer may take official notice of a fact upon the Appeals Officer’s own motion or at the request of a party. Official notice may be taken of any fact of which judicial notice could be taken, and, in addition, of any general or technical matter within the specialized experience or knowledge of the Appeals Officer and of any non-confidential public records. The Appeals Officer will notify the parties of any material of which he or she intends to take official notice and shall afford the parties an opportunity to contest the substance or materiality of the material to be noticed.

6. Burden of proof

The Taxpayer has the burden of proving that it is more likely than not that the Bureau erred in applying or interpreting the relevant law.

7. Nature of the Board’s evidentiary process

All proceedings before the Board, including those related to obtaining evidence, are designed to be informal, efficient, inexpensive, and to not require professional legal assistance. To this end, the production of documents and other evidence by the parties is governed by the primarily voluntary process set forth in section 201 of this chapter. Except in extraordinary circumstances, an Appeals Officer will only consider evidence that is submitted pursuant to that process, in response to a request from the Appeals Officer for additional information, or in response to a subpoena issued by the Appeals Officer.

Section 204. Subpoenas

1. On initiative of Appeals Officer or by request

The Appeals Officer, on his or her own initiative or at the request of a party, may issue a subpoena for documentary or testimonial evidence if the Appeals Officer determines that the requested evidence is relevant to an issue of fact and that the issuance of the subpoena is necessary for carrying out the responsibilities of the Board. Any requests for a subpoena must contain:

A. The title of the matter and the Board’s docket number;

B. The name and address of the party requesting the subpoena;

C. The name and address or location of any person to be subpoenaed;

D. A description of any records, files or other documents to be subpoenaed, including their location and the identity of the person who has custody of them; and

E. A brief statement explaining why the testimony or documents to be subpoenaed are relevant to an issue of fact in the appeal, why that evidence cannot be obtained by other means, and why the issuance of the subpoena is necessary for carrying out the responsibilities of the Board.

A copy of the request must be sent to the non-requesting party at the time it is submitted to the Appeals Officer.

2. Objections

If the non-requesting party objects within 10 days of a request for a subpoena being filed, the Appeals Officer will schedule a telephone conference with the parties to determine whether the evidence sought is relevant to an issue of fact in the appeal, whether that evidence cannot be obtained by other means, and whether the issuance of the subpoena is necessary for carrying out the responsibilities of the Board.

3. Issuance of Subpoenas after approval

If the Appeals Officer determines that the request seeks evidence that is relevant to the appeal and cannot be obtained by other means, and that the issuance of the subpoena is necessary for carrying out the responsibilities of the Board, the Appeals Officer shall issue the subpoena and forward it to the requesting party for service. The time, date and location for the production of any documents sought must be inserted on the face of the subpoena by the requesting party, allowing at least 14 days after service for production. When seeking documents, the requesting party must indicate that compliance may be achieved by the recipient sending the requested documents by certified mail or common carrier to an address specified by the requesting party on or before the date set for production. When seeking testimony, the requesting party must indicate the date, time and location of the Appeals Conference at which the testimony is desired.

4. Limitations and requirements

A. Witnesses shall be subpoenaed only within the same territorial limits and in the same manner as witnesses in civil cases before the Maine courts. Witnesses subpoenaed shall be paid the same fees for attendance and travel as in civil cases before the Maine courts. All such fees and costs shall be paid by the party requesting the subpoena.

B. If a subpoena requires the disclosure of a trade secret or other confidential research, development, or commercial information, or requires a person who is not a party or an officer of a party to incur substantial expense to travel more than 100 miles one way to attend a hearing, then the Appeals Officer may cancel or modify the subpoena. If the party on whose behalf the subpoena is issued shows a substantial need for the testimony or material that cannot otherwise be met without undue hardship and assures that the person to whom the subpoena is addressed will be reasonably compensated, the Appeals Officer may order appearance or production under specified conditions.

5. Petitions to cancel or modify subpoenas

A. Any witness subject to a subpoena may petition the Appeals Officer to cancel or modify the subpoena and the Appeals Officer shall give prompt notice of any such petition to the party who requested issuance of the subpoena.

B. After such investigation as he or she considers appropriate, the Appeals Officer may grant a petition to cancel or modify the subpoena in whole or in part upon a finding that the subpoena:

(1) Does not seek evidence that relates with reasonable directness to any matter at issue;

(2) Fails to allow a reasonable time for compliance;

(3) Requires disclosure of privileged or other protected matters and no exception or waiver applies;

(4) Is unreasonable, oppressive, or subjects a person to undue burden;

(5) Is not necessary for carrying out the responsibilities of the Board; or

(6) Seeks information that is obtainable by other means.

Section 205. Recommended Decision of the Appeals Officer

1. Contents of recommended decision

Following the conference or, if the Taxpayer did not request a conference, following review of the documentary record, the Appeals Officer will prepare a recommended decision for consideration by the Board. The recommended decision will include at a minimum:

A. A clear and concise statement of the matter which is the subject of the appeal and of the issues which must be resolved to decide the appeal;

B. The date and place of the conference and participants at the conference, if one was requested;

C. The evidence upon which the recommended decision is based;

D. Findings of fact and law, which must be sufficient to apprise the parties and the Board of the basis for the recommended decision;

E. A clear statement of result resolving all material issues under consideration; and

F. A clear explanation of the reasoning underlying the result, including references to applicable record citations, laws, and rules.

2. Comments, modification, and delivery to the Board

A. Before submitting the recommended decision to the Board for its consideration, the Appeals Officer shall send a copy of the decision to each of the parties for their review and comment. A party’s comments must be in writing, may be no more than 3 pages in length, and must be filed by the deadline set by the Appeals Officer. A copy of the comments must be delivered to the opposing party at the same time they are filed with the Appeals Officer.

B. The Appeals Officer may, but is not required to, modify the recommended decision in response to the parties’ comments. If the recommended decision is modified in response to comments, the Appeals Officer will send a copy of the modified recommended decision to the parties for further comment. Any comments must be in writing, may be no more than 3 pages in length, and must be received by the deadline set by the Appeals Officer. A copy of the comments must be delivered to the opposing party at the same time they are filed with the Appeals Officer. If the Appeals Officer does not modify the recommended decision, he or she will send the parties a written response to their comments.

C. The Chief Appeals Officer will deliver copies of the recommended decision to the Board, both as originally written and, if applicable, as modified, together with the parties’ written comments and the Appeals Officer’s written responses to the comments.

D. The Appeals Officer will send to each party a copy of the recommended decision as delivered to the Board.

PART 3. PROCEEDINGS BEFORE THE BOARD

Section 301. Duties of Board Members

1. Decision making

Pursuant to 36 M.R.S. §151-D(10)(I), the Board members shall consider the recommended decision and render a fair and impartial decision on the merits of the appeal in accordance with the provisions of section 302 of this chapter.

2. Ex Parte communications

Members of the Board shall not have any ex parte communications with or on behalf of any party, except on questions that involve ministerial or administrative matters that do not address the substance of the issues or the positions taken by the parties.

3. Recusal

A Board member may be recused from participating in the deciding of an appeal as follows:

A. By request of a party. Either party may, in writing, request that a Board member be recused if that party believes that the Board member has a conflict of interest or for some other reason will not be able to render an impartial decision. In the event such a request is made, the Board Chair, in consultation with the Board member whose recusal is sought, shall determine whether the Board member should be recused from participation in the appeal. If the request is denied, the Chair shall state the reasons for the denial of the request.

B. Upon the Board member’s own motion. If a Board member believes he or she has a conflict of interest, or for any other reason believes he or she may not be able to fairly and impartially participate in the Board’s consideration of the recommended decision and the issuance of a final decision on the appeal, he or she shall so notify the Board Chair prior to the Board’s consideration of the Appeals Officer’s recommended decision in that matter. The Chair shall then recuse the Board member who shall not participate in the consideration of the appeal and the rendering of a decision by the Board.

C. Recusal of the Chair by request of a party. When a party requests that the Board Chair be recused, the Board Chair shall designate another Board member to, in consultation with the Chair, determine whether the request shall be granted and the Chair recused from participation in the appeal. If the request is denied, the designated Board member shall state the reasons for the denial.

D. Upon the Chair’s own motion. If the Chair believes that he or she has a conflict of interest, or for any other reason believes he or she may not be able to fairly and impartially participate in the Board’s consideration of an appeal, he or she shall so notify the other Board members prior to the Board’s consideration of the Appeals Officer’s recommended decision in that matter. The Chair shall then be recused and shall not participate in the consideration of the appeal and the rendering of a decision by the Board.

Section 302. Board Deliberations

1. Public proceedings

Only Administrative Meetings of the Board are public proceedings pursuant to 1 M.R.S. §402(2). Appeals Meetings are not public proceedings.

2. Board consideration

The Board will meet to consider an appeal on a timely basis, and will provide the parties with at least 15 days’ notice of the date, time and location of the Appeals Meeting. Upon the request of a party, the Appeals Meeting may be rescheduled to a later date or time for good cause shown. Except in extraordinary circumstances, the request must be made in writing and must state whether the request is opposed by the other party. The request may be granted or denied, in whole or in part, by the Chief Appeals Officer after consulting with the Board members. If the Appeals Meeting is rescheduled, the parties will be given at least 10 days’ notice of the rescheduled meeting. The Board may also reschedule an Appeals Meeting on its own initiative.

3. Recommended decision and comments

A copy of the recommended decision shall be provided to each Board member, along with the parties’ comments and other materials as specified in section 205 of this chapter, in advance of the meeting at which the recommended decision will be considered.

4. Statement by party

A. At least 10 days prior to the date set for the Board’s consideration of the appeal, a party may submit a written statement to the Board summarizing the party’s position. Such written statements shall be no more than 5 pages in length and shall be in 12 point font on 8.5 by 11 inch paper.

B. At the written request of a party made at least 10 days prior to the date set for the Board’s consideration of the appeal, the Board may, in its discretion, allow each party to make an oral statement to the Board as provided in section 303(1)(E) of this chapter.

C. Each party must deliver a copy of its written statement and its request to make an oral statement to the opposing party at the same time it files them with the Board. If the party refers to specific portions of the record in its written statement or, if prior approval for an oral statement is given by the Board and the party intends to refer to specific portions of the record in its oral statement, that party must provide copies of those portions of the record to the Board and the opposing party at the same time it files its written statement or request to make an oral statement. Failure to provide records to the Board as required by this subsection shall be grounds for the Board to exclude any references by the party to those records.

5. Addressing Board via telephone

Upon written request, the Board may allow a party to address the Board via telephone if the Board finds that appearing in person would create an undue hardship for the party based on a consideration of: (1) the distance the party must travel; (2) costs the party would incur; (3) the health of the party; or (4) other factors the Board deems appropriate.

Section 303. Rules of Order

1. Appeals Meeting procedures

A. Prior to each meeting, the Appeals Officer who drafted the relevant recommended decision shall brief the Board on the facts and law at issue in the appeal and the basis for the Appeals Officer’s findings.

B. The Chair will call the meeting to order at the appointed time.

C. The Chair will direct all persons other than Board Members, the Chief Appeals Officer, the Board Secretary, any Appeals Officer whose presence has been requested by the Board, the parties, and the parties’ representatives to leave the room while the appeal is considered.

D. Unless otherwise authorized by the Board in response to a written request submitted at least 10 days prior to the meeting, with a copy sent to the opposing party, each party is limited to having 2 individuals present at the meeting. These individuals may be the party and a representative or two representatives. One of the individuals present must be designated as the party’s spokesperson.

E. The Chair will, if the Board has granted to the parties an opportunity to make an oral statement to the Board, allow each designated spokesperson 20 minutes in which to make his or her statement and answer questions from the Board, beginning with the Taxpayer’s spokesperson. Each spokesperson may reserve up to three minutes of this time in which to speak prior to the Board asking questions. The Taxpayer’s spokesperson may also reserve up to three minutes for rebuttal. The Board may enlarge the time available for both parties to make their oral statements if the Board finds that doing so is necessary to reach a fair decision on the appeal.

F. At the conclusion of the oral statements, or, if none were made, when the Board members are ready to deliberate on the appeal, the Chair will direct the parties and their representatives to leave the room.

G. During or following deliberations, any Board member may move that the Board decide the appeal in one of the four ways set forth in section 304(1) of this chapter. Such a motion must be seconded, and proceed to discussion and a vote in the same manner as any other motion.

2. Administrative Meeting procedures

A. The Board’s administrative meetings are public proceedings within the meaning of the Maine Freedom of Access Act (FOAA), and the Board will give reasonable public notice of such meetings.

B. The Chair will call the meeting to order at the appointed time.

C. The Chair will proceed with each agenda item in turn.

D. The Board will discuss, and take any appropriate action regarding each agenda item. Action on an agenda item includes tabling that item.

3. General rules of order

The following general rules of order apply to all Board meetings:

A. Recording. The Appeals Office shall make an audio recording of all meetings of the Board.

B. Quorum. In accordance with 36 M.R.S. §151-D(5), the presence of two members at a Board meeting constitutes a quorum and a vacancy on the Board does not limit the remaining two member’s ability to exercise all the Board’s powers. The Chair, whenever present, will preside over Board meetings. Whenever the Chair is absent, or has recused himself or herself from consideration of an appeal, one of the two Board members present will assume the Chair’s duty of presiding over the meeting.

C. Actions taken by motion. All Board actions will be taken by motion of a Board member. Every motion must be seconded. If a motion is not seconded, the Chair will rule it out of order and proceed with the meeting as though it had not been made. If a motion is seconded, the Chair will state the motion and open the floor to discussion of the motion. Once discussion has concluded, the Chair will call for a vote on the motion.

D. Motions may be made by any Board member. Any Board member, including the Chair and any member presiding over a Board meeting in the Chair’s absence, may make or second a motion.

E. When motions are not in order. Only one motion may be considered at a time. When a motion has been made, no other motion is in order until the Chair has either ruled the motion out of order or stated the pending motion and opened the floor for discussion. The only motions that may be made during discussion of a pending motion are motions to amend or table the pending motion.

F. Procedure on motions to amend. The following procedure will govern motions to amend:

(1) Like any other motion, a motion to amend must be seconded or the Chair will rule it out of order and discussion of the underlying motion will resume. If the motion to amend is seconded, the Chair will state the motion to amend and open the floor for discussion of the motion to amend. Once discussion has concluded, the Chair will call for a vote on the motion to amend.

(a) If the vote is in favor of the motion to amend, the Chair will state the underlying motion, as amended, and will open the floor to discussion. Once discussion of the underlying motion, as amended, has concluded, the Chair will call for a vote on the underlying motion, as amended. No further action need be taken on the underlying motion.

(b) If the motion to amend is defeated, the suspended discussion of the underlying motion will be resumed.

G. Leave to withdraw a motion. The moving Board member, at any point prior to a vote on his or her motion, even when his or her motion has been amended, may request leave to withdraw his or her motion. A request for leave to withdraw is not required to be seconded. When a request for leave to withdraw has been made, the Chair will ask if there is any objection to the request for leave to withdraw. If there is no objection, the Chair will grant the request and it will be as if the motion, and any amendment to the motion, was never made. If there is an objection, the Chair will call for a vote on the request for leave to withdraw. If the vote is to deny, the member’s motion remains pending before the Board.

Section 304. Board Decisions

1. Action after consideration

In accordance with 36 M.R.S. §151-D(10)(I), the Board may, after considering the recommended decision:

A. Adopt the recommended decision as delivered to the Board;

B. Modify the recommended decision;

C. Send the recommended decision back to the Appeals Officer who heard the appeal, if possible, and if not, to a replacement Appeals Officer, for such other proceedings or considerations as the Board may specify; or

D. Reject the recommended decision in whole or in part and decide the appeal itself on the basis of the existing record, and in doing so make its own determinations concerning the admissibility of and weight given to evidence and the credibility of witnesses.

2. Board decision

In all appeals except those where the Board sends the recommended decision back to the Appeals Officer for further proceedings, the Board will issue a written decision on the appeal. The 60-day period for filing a petition for review of that decision in Superior Court begins to run from the date of a party’s receipt of the Board’s written decision unless a timely request for reconsideration is made. Prior to the issuance of the Board’s written decision, any Board member may call a special meeting for the Board to reconsider its vote taken under section 303(1)(H) of this chapter on the grounds that the Board has made an error or based its decision in whole or in part upon information that has proven to be erroneous.

Section 305. Reconsideration

1. Request for reconsideration

A party may file a written request for reconsideration with the Board within 20 days of the date of receipt of the Board’s written decision based on the party’s claim that:

A. relevant new evidence exists that was previously unknown to the party or, if known by the party, could not be obtained by that party prior to the issuance of the Board’s decision; or

B. reconsideration is necessary in order to correct a procedural error, factual error, or error of law.

A copy of a request for reconsideration must be sent to the opposing party at the time the request is filed with the Board. The opposing party may file an objection to the request for reconsideration within 10 days of the request being filed, with a copy sent to the party requesting reconsideration.

2. Grant or denial of reconsideration by the Board

Any request for reconsideration not granted within 20 days from the date of filing is presumed denied.

If the Board grants a request, it will notify the parties in writing and either:

A. Remand the appeal to the same Appeals Officer that heard the appeal previously, if possible, and if not, to a replacement Appeals Officer, for further proceedings or other action as the Board may direct; or

B. Address and resolve the issues raised in the reconsideration request itself by the taking of additional evidence in proceedings conducted in accordance with this chapter or by other action to correct procedural errors, factual errors, or errors of law.

Upon the completion of the reconsideration process, the Board shall issue its final administrative decision.

3. Running of appeal period

The 60-day period for filing a petition for review with the Superior Court does not begin to run until the earlier of:

A. A party’s receipt of notice that the request for reconsideration has been denied;

B. The request for reconsideration is presumed to be denied; or

C. In cases where the request for reconsideration is granted, the date of a party’s receipt of the Board’s final administrative decision.

4. Clerical mistakes

A. Clerical mistakes in decisions or orders that arise from an oversight, omission or scrivener’s error may be corrected by the Board at any time on its own initiative or on a party’s motion.

B. During the period for appealing a final determination of the Board, such mistakes may be so corrected before an appeal is docketed in the Superior Court, and thereafter while the appeal is pending shall only be corrected with leave of the Court.

Section 306. Publication of redacted decisions

The Board may publish its decisions on its website in redacted format so as not to reveal a Taxpayer’s identity or any information about a Taxpayer that is made confidential by state or federal law.

History

• STATUTORY AUTHORITY: 36 M.R.S. §151-D
• EFFECTIVE DATE: March 19, 2013 – filing 2013-064
• AMENDED: May 1, 2014 – filing 2014-062
• AMENDED: September 14, 2024 – filing 2024-211
• WORD VERSION CONVERSION AND ACCESSIBILITY CHECK: July 7, 2025

18-691 Office of Cannabis Policy

Chapter 1 Adult Use Cannabis Program Rule

Code Me. R. 18-691 Ch. 1 Adult Use Cannabis Program Rule {#sec-18-691-ch.-1 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 1}

ADULT USE CANNABIS PROGRAM RULE

18-691 C.M.R. Chapter 1

Office of Cannabis Policy

Department of Administrative and Financial Services

Major Substantive Rules Effective Date: July 1, 2022

Routine Technical Rules Effective Date: September 8, 2022

General

This rule establishes the requirements for becoming a licensed cannabis establishment, including fees, application and licensing processes and procedures for cultivation, manufacture, sample collection, testing and retail sale of adult use cannabis and adult use cannabis products. The activities described in this rule may be considered a violation of federal law. Persons cultivating, manufacturing, collecting samples of, testing, selling, purchasing or otherwise receiving adult use cannabis or adult use cannabis products may be subject to federal sanctions for what may otherwise be considered authorized conduct in the State of Maine, and compliance with the rule does not exempt licensees, their employees or customers from possible federal prosecution. The Department is not responsible or liable for the actions of licensed cannabis establishments under the rule.

Section 1 - Adult Use Cannabis Program

1.1 - Statutory Authority

The Department of Administrative and Financial Services (referred heretofore as the Department), acting through its Office of Cannabis Policy, has developed the following rule in accordance with the statutory authority provided in Title 28-B, §104 for the purpose of implementing, administering and enforcing the provisions of 28-B MRS, chapter 1.

1.2 - Department Authority

The Department may enforce this rule and any relevant provisions of 4 MRS, 5 MRS, 28-B MRS and other general statutes, laws, executive orders or subsequently passed legislation. The Department shall set licensing fees in accordance with 28-B MRS §207. As applicable, the Department may delegate authority to appropriate state and local agencies. The Department, or an agent thereof, shall have the authority to inspect, during business hours, times of apparent activity or other reasonable time, any cannabis establishment, vehicles used to transport cannabis or cannabis products or business records.

1.3 - Communication with Department

1.3.1 Written Communications. If an applicant or licensee is required to or elects to submit anything in writing to the Department, unless otherwise prescribed by the Department, the applicant or licensee may submit the writing to the Department via:

Mail;

In-person delivery;

Facsimile; or

E-mail.

1.3.2 Submission Deadline. If a written notification must be submitted by a deadline it must be received by the Department, regardless of the method used to submit the writing, by 5:00 p.m. Eastern Time.

1.4 - Definitions

Action level: “Action level” means the threshold value for determining whether a sample passes or fails an analytical test.

Active license: “Active license” means a license issued by the Department that authorizes cultivation, sample collection, testing, manufacture or sale of cannabis or cannabis products in accordance with 28-B MRS and this rule, including a provisional active license to operate a cannabis testing facility.

Adult use cannabis: “Adult use cannabis” means cannabis cultivated, manufactured, tested, distributed or sold by a cannabis establishment.

Adult use cannabis product: “Adult use cannabis product” means a cannabis product that is manufactured, distributed or sold by a cannabis establishment.

Analyst: “Analyst” means the designated individual who tests the samples by performing the “hands-on” analytical methods and associated techniques. The analyst is responsible for applying required testing facility practices and other pertinent quality controls to meet the required level of quality.

Analyte: “Analyte” means a chemical, compound, element, bacteria, yeast, fungus or toxin that is identified or measured.

Another jurisdiction: "Another jurisdiction" means the Federal Government, the United States military, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa and each of the several states of the United States except Maine.

Apparent activity: “Apparent activity” is any sights, sounds, smells or other indications that persons are present at a cannabis establishment.

Applicant: "Applicant" means a person who submits an application for a license under this rule to the Department for review that the Department has not yet approved or denied.

Batch: “Batch” means:

1. A harvest batch; or
2. A production batch.

Batch number: "Batch number" means a distinct group of numbers, letters or symbols, or any combination thereof, assigned to a specific batch of adult use cannabis by a cultivation facility, sample collector, testing facility, or a cannabis store or to a specific batch of adult use cannabis or adult use cannabis products by a products manufacturing facility, sample collector, testing facility or a cannabis store.

Best Practices Guide: “Best Practices Guide” means the Best Practices for the Sampling of Adult Use Cannabis , Version 3.1, dated September 11, 2020, published by the Department available at: https://www.maine.gov/dafs/ocp/sites/maine.gov.dafs.ocp/files/inline-files/AUMP_Mandatory_Testing-Best_Practice_Guide_Sample_Collection.pdfwhich is incorporated herein by reference. All licensees and any employee of a licensee collecting samples of cannabis, cannabis concentrate, or cannabis products for mandatory testing must collect samples in accordance with the best practices described in the guide.

Business entity: "Business entity" means a partnership, association, company, corporation, limited liability company or other entity incorporated or otherwise formed or organized by law. "Business entity" does not include a federal, state or municipal government organization.

Business hours: “Business hours” means 9 A.M. to 5 P.M. Monday through Friday.

Cannabinoid: “Cannabinoid” means a chemical compound that is unique to, and derived from, cannabis.

Cannabis: “Cannabis” means the leaves, stems, flowers and seeds of a cannabis plant, whether growing or not. “Cannabis” includes cannabis concentrate, except where context indicates otherwise, but does not include hemp as defined in 7 MRS §2231, or a cannabis product.

Cannabis concentrate: "Cannabis concentrate" means the resin extracted from any part of a cannabis plant and every compound, manufacture, salt, derivative, mixture or preparation from such resin, including, but not limited to, hashish. In determining the weight of cannabis concentrate in a cannabis product, the weight of any other ingredient combined with cannabis or cannabis concentrate to prepare the cannabis product may not be included.

Cannabis drink: “Cannabis drink” means a liquid edible cannabis product with a concentration of less than 1 mg of THC per ounce of liquid

Cannabis establishment: “Cannabis establishment” means a cultivation facility, a products manufacturing facility, a testing facility, a sample collector or a cannabis store licensed under 28-B MRS and this rule.

Cannabis extraction: "Cannabis extraction" means the process of extracting cannabis concentrate from cannabis using water, lipids, gases, solvents or other chemicals or chemical processes.

Cannabis flower: "Cannabis flower" means the pistillate reproductive organs of a mature cannabis plant, whether processed or unprocessed, including the flowers and buds of the plant. "Cannabis flower" does not include cannabis trim or whole mature cannabis plants, but does include kief.

Cannabis plant: “Cannabis plant” means all species of the plant genus cannabis, including, but not limited to, a mother plant, a mature cannabis plant, an immature cannabis plant or a seedling but it does not include a cannabis product or “hemp” as defined in 7 MRS §2231.

Cannabis product: “Cannabis product” means a product composed of cannabis or cannabis concentrate and other ingredients that is intended for use or consumption. “Cannabis product” includes, but is not limited to, an edible cannabis product, a cannabis ointment and a cannabis tincture. “Cannabis product” does not include cannabis concentrate.

Cannabis store: "Cannabis store" means a facility licensed under this rule to purchase adult use cannabis, immature cannabis plants and seedlings from a cultivation facility, to purchase adult use cannabis and adult use cannabis products from a products manufacturing facility, to collect and transport samples of cannabis, cannabis concentrate and cannabis products in that cannabis store’s possession for mandatory testing, and to sell adult use cannabis, adult use cannabis products, immature cannabis plants and seedlings to consumers.

Cannabis Testing Facility or Testing Facility: “Cannabis testing facility” or “testing facility” means an entity licensed according to 28-B MRS §503, including those also registered as cannabis testing facilities in accordance with 22 MRS §2423-A, to test cannabis, cannabis products and other substances for research and development and to analyze contaminants in and the potency and cannabinoid profile of samples in an approved location. A cannabis testing facility is authorized to collect samples of cannabis, cannabis concentrate and cannabis products without a separate sample collector license in accordance with Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5.

Cannabis trim: "Cannabis trim" means any part of a cannabis plant, whether processed or unprocessed, that is not cannabis flower or a cannabis seed, except that “cannabis trim” does not include the stalks or roots of the cannabis plant.

Cannabis waste “Cannabis waste” means cannabis, cannabis plants or cannabis products that are unfit for retail sale for reasons including, without limitation, failed mandatory testing, expired products or crop failure.

Caregiver: "Caregiver" has the same meaning as in 22 MRS §2422(8-A).

Certificate of analysis: “Certificate of analysis” means the report prepared for the party requesting testing and the Department about the analytical testing performed and results obtained by the cannabis testing facility.

Certification: “Certification” means the process by which an agency or organization evaluates and recognizes a cannabis testing facility as meeting certain predetermined qualifications or standards, thereby certifying the cannabis testing facility. The Department of Health and Human Services (DHHS), Center for Disease Control and Prevention (CDC), is responsible for certification of all cannabis testing facilities.

Chain of custody form: “Chain of custody form” means a record, either paper-based or electronic, that documents the possession of the samples at the time of receipt by the cannabis testing facility, in accordance with chain of custody protocol prescribed by the cannabis testing facility. This record, at a minimum, must include the sample location, the number and types of containers, the mode of collection, the authorized individual who collected the sample, the date and time of collection, preservation and requested analyses.

Chain of custody protocols: “Chain of custody protocols” means the procedures developed and employed by the cannabis testing facility to record the possession of samples from the time of sampling through the retention time specified by the client or program. These procedures are performed at the special request of the client and include the use of a chain of custody form that documents the collection, transport and receipt of compliance samples by the cannabis testing facility. In addition, these protocols document all handling of the samples within the cannabis testing facility and, if applicable, by the sample collector or self-sampler.

CBD: “CBD” means cannabidiol.

Child-resistant: "Child-resistant" means, with respect to packaging or a container:

1. Specially designed or constructed to be significantly difficult for a typical child under 5 years of age to open and not to be significantly difficult for a typical adult to open and reseal; and
2. With respect to any product intended for more than a single use or that contains multiple servings, resealable.

Co-location: “Co-location” means the siting of multiple adult use licensees or an adult use licensee with a registered caregiver or registered dispensary within a licensed premises. Co-located licensees must share identical ownership with the co-located entity. A licensee that is also a registered caregiver or a registered dispensary may co-locate its operations with that same registered caregiver or registered dispensary.

Conditional license: “Conditional license” is a license issued by the Department that authorizes the licensee to seek local authorization to operate a cultivation facility, testing facility, products manufacturing facility or cannabis store. The conditional license does not authorize possession, transfer, cultivation, testing, manufacture or sale of cannabis or cannabis products.

Contaminant: “Contaminant” means an unacceptable level of an unwanted or objectionable substance, toxin, pollution or foreign material that causes impurity in a product. Contaminants include, but are not limited to, pesticides, microbiology, filth, heavy metals and residual chemical solvents.

Container: "Container" means a sealed package in which adult use cannabis or an adult use cannabis product is placed that meets all applicable packaging, labeling and health and safety requirements of this rule.

Controlled entry area: “Controlled entry area” means an indoor entry area directly inside the licensed premises of a cannabis store, containing the door leading to a public right of way that is used for the purpose of verifying the identification and age of an adult use consumer prior to the consumer’s entry to the sales area of the cannabis store. The controlled entry area shall be conspicuous and make it apparent to consumers that entry to the retail sales area is not permitted until identification is verified.

Criminal justice agency: “Criminal justice agency" has the same meaning as in 16 MRS §803(4).

Cultivation: "Cultivation" or "cultivate" means the planting, propagation, growing, harvesting, drying, curing, grading, trimming or other processing of cannabis for use or sale. "Cultivation" or "cultivate" does not include manufacturing, testing or cannabis extraction.

Cultivation facility: "Cultivation facility" means a facility licensed under this rule to purchase cannabis plants and seeds from other cultivation facilities; to cultivate, prepare and package adult use cannabis; to collect and transport samples of cannabis cultivated by that facility for mandatory testing; to sell adult use cannabis to products manufacturing facilities, to cannabis stores and to other cultivation facilities; and to sell cannabis plants and seeds to other cultivation facilities and immature cannabis plants and seedlings to cannabis stores. A cultivation facility includes a nursery cultivation facility. Licensees that cultivate cannabis in a nursery cultivation facility may sell an unlimited number of cannabis seeds and a sum total of 12 seedlings and immature plants to a consumer 21 years of age or older.

Cultivation plan: “Cultivation plan” means the information regarding an applicant’s cultivation activities listed in a conditional application for a license to operate a cultivation facility and facility plan required for an active license to operate a cultivation facility, including a nursery cultivation facility.

Curbside pickup: “Curbside pickup” means retrieval of a sales order containing adult use cannabis and/or adult use cannabis products at an outdoor area, included within the licensed premises of a cannabis store or immediately adjacent to the primary public ingress and egress of the cannabis store, designated for curbside pickup by a consumer 21 years of age or older.

Delivery: “Delivery” means the transportation by a cannabis store licensee, from the licensed premises of the cannabis store to private residences, of sales orders of adult use cannabis and cannabis products to consumers 21 years of age or older who request such sales orders through a telephonic or internet-based platform.

Department: “Department” means the Department of Administrative and Financial Services.

Department of Health and Human Services (DHHS): “Department of Health and Human Services (DHHS)” means the Maine Department of Health and Human Services. DHHS includes the Maine Center for Disease Control and Prevention (CDC), which certifies, through its Maine Cannabis Testing Facility Certification Program, the technology and testing methods used by cannabis testing facilities under this rule.

Direct or Indirect Financial Interest: “Direct or Indirect Financial Interest” means any interest in a sole proprietorship or business entity that is applying for or holds a cannabis establishment license, including without limitation:

1. Equity Owners. Proprietors,partners, shareholders, persons with membership interests, and persons with any other equity ownership interests such as purchase warrants or options, whether whole or partial.
2. Other Equity Ownership. Any employee, independent contractor, professional, or other person who/which has an agreement with the licensee that provides for their attaining any form of equity ownership. Except that employee equity ownership vested pursuant to an employee stock ownership program is governed by paragraph i.
3. Royalty License Partners. All person(s) who/which expect to receive financial payment, including without limitation, royalty payments, profit share or revenue share, in return for the licensing of an intellectual property asset or proprietary property, whether or not such assets or property be trademarked or patented, including without limitation, standard operating procedures, brand names, products, packaging, marketing materials, business plans or financial projections.
4. Contractor and Other Profit Sharing Arrangements. Any independent contractor, professional, or other person, except a natural person who is an employee of the licensee, who/which has an agreement with the licensee that provides for their attaining or receiving any form of profit sharing, commissions or the like.
5. Capital Investors and Lenders. All persons that invest in or lend money to a licensee with the expectation of receiving repayment, with or without additional interest and/or other financial payments or benefits as a condition of investing or lending. Lenders include persons that are holders of any negotiable instruments the licensee is indebted to. Except that state- or federally-chartered banks, credit unions or savings/loan institutions whose only financial interest constitutes a loan, need only provide a copy of the financial instrument recording the terms of the loan.
6. Management Contractors and Consultants. Persons that exert significant influence or decision-making authority over the licensee’s business plan, marketing strategy, operations or that otherwise control the business; and including any third-party contractedpersons or other entities which provide ongoing management and/or consulting services to a licensee for a period longer than 6 months.
7. Officers, Directors, Managers, and General Partners. Any persons in these positions.
8. Business Entities. If any of the persons above are business entities, they shall list all persons which have the interests listed in (a), (b) and (g) in the business entity, until only individuals remain, excepting only individuals who own less than 5% of the total shares in a publicly traded company.
9. Employee Stock Ownership Program (ESOP). Any shares designated solely for inclusion in a portion of shares reserved for employees of the licensee for the purpose of vesting an equity ownership interest in an employee or employees of the licensee. A licensee offering an ESOP must designate a percentage of equity ownership interests for the ESOP and must report annually the identity of any person holding an equity interest in the licensee through the ESOP.

Disqualifying drug offense: “Disqualifying drug offense" means a conviction for a violation of a state or federal controlled substance law that is a crime punishable by imprisonment for one year or more, except that "disqualifying drug offense" does not include:

1. An offense for which the sentence, including any term of probation, incarceration or supervised release, was completed 10 or more years prior to the submission of an application for a license under this rule; or
2. An offense that consisted of conduct that is authorized under 28-B MRS, chapter 3.

Edible cannabis product: "Edible cannabis product" means a cannabis product intended to be consumed orally, including, but not limited to, any type of food, drink or pill containing cannabis or cannabis concentrate.

Exit packaging: “Exit packaging” means an opaque bag, pouch or other container that cannabis and/or cannabis products are placed in by a licensee after a retail sale to a consumer and before the purchased items leave the licensed premise.

Facility director: “Facility director” means the individual who is legally authorized to direct the activities of a cannabis testing facility and who commits the appropriate resources to comply with this rule.

Facility plan: “Facility plan” means the comprehensive plan submitted by an applicant for an active cannabis establishment, and amendments thereto submitted after licensure, that includes all information regarding the physical location where the cannabis establishment is located, the operation of the cannabis establishment, the security measures utilized by the cannabis establishment, and as applicable, the cultivation activities of the cannabis establishment. A facility plan includes, as applicable, the operating, cultivation, and security plans of a licensee.

Final form: “Final form” means for the purpose of mandatory testing, adult use cannabis or an adult use cannabis product that is in the form that will be sold to an adult use cannabis consumer; except that the adult use cannabis or adult use cannabis product need not be prepackaged into individual retail units to be considered in its “final form”.

Flowering: "Flowering" means, with respect to a cannabis plant, the gametophytic or reproductive state of a female cannabis plant during which the plant is in a light cycle intended to produce flowers, trichomes and cannabinoids characteristic of cannabis.

Full active license: “Full active license” means a license issued by the Department to a cannabis testing facility that has received full certification from the CDC and ISO/IEC 17025:2017 accreditation for at least one technology and analyte, that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, Chapter 1, subchapters 2 and 6 and this rule.

Full certification: “Full certification” means certification granted by the CDC pursuant to Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, to a cannabis testing facility that has received ISO/IEC 17025:2017 accreditation for at least one technology and analyte and meets all other requirements of this rule. Full certification is a prerequisite for the issuance of a full active license by the Department pursuant to this rule.

Harvest batch: “Harvest batch” means a specific quantity of adult use cannabis harvested from adult use cannabis plants of the same strain, grown under the same conditions, and harvested during a specified period of time from a specified cultivation area within a cultivation facility.

Homogeneity: “Homogeneity” means the amount of cannabis or cannabis concentrate and cannabinoids within the product being consistent and reasonably equally dispersed throughout the product or each portion of the product or concentrate, or a representative sample.

Identity statement: "Identity statement" means the name of a business entity as it is commonly known and used in any advertising or marketing by the business entity.

Immature cannabis plant: “Immature cannabis plant” means a cannabis plant that is not a mature cannabis plant or a seedling.

Infused cannabis product: “Infused cannabis product” means a product or compound that includes one or more cannabis concentrate along with other materials or ingredients, including without limitation, edible cannabis products and topical cannabis products.

Inhaled cannabis product: “Inhaled cannabis product” means cannabis, cannabis concentrate or cannabis products that are intended to be consumed by inhalation, including, without limitation: cannabis flower or trim, pre-rolled cannabis cigarettes, vaporizer cartridges and vaporizer pens.

Inherently hazardous substance: “ Inherently hazardous substance” means a liquid chemical, compressed gas or commercial product that has a flash point at or lower than 38 degrees Celsius or 100 degrees Fahrenheit, including, but not limited to, butane, propane and diethyl ether. “Inherently hazardous substance” does not include any form of alcohol or ethanol.

Intermediate packaging: “Intermediate packaging” means packaging materials that are not part of the marketing layer or container, but are included inside an outer container layer, such as a marketing layer.

Intoxication: "Intoxication" means a substantial impairment of an individual's mental or physical faculties as a result of drug or alcohol use.

ISO/IEC 17025:2017: “ISO/IEC 17025:2017” means the general requirements for the competence of testing and calibration laboratories issued in 2017 joint technical committee of the International Organization for Standardization and the International Electrotechnical Commission, and any subsequent revision or version thereof.

Kief: “Kief” means the dried or drying resinous trichomes of cannabis plant that have separated from cannabis flower or have been separated from cannabis flower by processes other than extraction. Kief is cannabis flower.

Law enforcement officer: "Law enforcement officer" has the same meaning as in 17-A MRS §2(17).

Licensed premises: "Licensed premises" means the premises specified in a license to operate a cannabis establishment within which the licensee is authorized under this rule to cultivate, manufacture, distribute, sample, test or sell adult use cannabis or adult use cannabis products.

Licensee: “Licensee” means a natural person or business entity licensed pursuant to 28-B MRS to operate a cannabis establishment.

Limited access area: "Limited access area" means a building, room or other area within the licensed premises of a cannabis establishment where a licensee is authorized to cultivate, store, weigh, manufacture, sample, package or otherwise prepare for testing, transfer or retail sale, cannabis and cannabis products. A “limited access area” can only be accessed by authorized persons displaying individual identification cards or authorized contractors of the licensee aged 21 and older displaying a visitor identification badge.

Liquid: “Liquid” means a substance that flows freely but is of constant volume, having a consistency like that of water or oil.

Local authorization: “Local authorization” means authorization from a municipality in accordance with 28-B MRS §402 or authorization from the Maine Land Use Planning Commission and either a town, plantation, or county commission in accordance with 28-B MRS §403. Local authorization is not required for sample collector licenses.

Manufacture: “Manufacture” or “manufacturing” means the production, blending, infusing, compounding or other preparation of cannabis and cannabis products, including but not limited to cannabis extraction or preparation by means of chemical synthesis. "Manufacture" or "manufacturing" does not include cultivation or testing.

Marijuana: “Marijuana” has the same meaning as “cannabis” as defined in this rule. In accordance with P.L. 2021, ch. 669, An Act To Promote Equity and Increase Opportunities in the Cannabis Industry by Reducing Restrictions Related to Convictions for Drug Offenses and To Replace the Term "Marijuana" with the Term "Cannabis" in the Maine Revised Statute, this rule reflects the replacement of the term “marijuana” with the term “cannabis” throughout. Where the term “marijuana” appears in other written documents maintained or used by the Office of Cannabis Policy and regarding the Adult Use Cannabis Program, that term should be interpreted to have the same meaning as “cannabis” as defined herein.

Marketing layer: “Marketing layer” means the outermost layer of a retail sale container, which is most predominantly apparent and visible, such as a box or bag that another container containing cannabis, cannabis plants, cannabis concentrate, or cannabis products are within. If the container consists of only a single layer, then the outer surface of the container is the marketing layer.

Matrix or matrices: “Matrix” or “matrices” means the component or substrate that contains the analyte of interest (e.g. cannabis flower, trim, cannabis cigarettes, types of cannabis concentrate, types of cannabis products, etc.).

Mature cannabis plant: “Mature cannabis plant” means a cannabis plant that is flowering.

Method: “Method” means a body of procedures and techniques for performing an activity (e.g., sampling, chemical analysis or quantification), systematically presented in the order in which they are to be executed.

Mother plant: "Mother plant" means a cannabis plant that is used solely for the taking of seedling cuttings.

Municipality: "Municipality" means a city, town or plantation in this State that is not located within the unorganized and deorganized areas.

Mycotoxin: “Mycotoxin” means any toxic substance produced by a fungus and especially a mold.

Opaque: "Opaque" means, with respect to packaging or a container, that any product inside of the packaging or container cannot be seen from outside the packaging or container.

Operating plan: “Operating plan” means information regarding the operating requirements listed in an application for a conditional license and included in the facility plan submitted for an active license to operate a cannabis establishment.

Person: "Person" means a natural person or a business entity.

Plan of record: “Plan of record” means, as applicable, a licensee’s current facility plan and the operating, cultivation and security information listed in the licensee’s applications for a conditional or active license on file with and approved by the Department.

Plant canopy: “Plant canopy” means the total surface area within the licensed premises of a cultivation facility that is authorized by the Department for use at any time by the cultivation facility licensee to cultivate mature cannabis plants. The surface area of the plant canopy must be calculated in square feet and measured using the outside boundaries of the area and must include all of the area within the boundaries. If the surface area of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered or shelving system is used by the cultivation facility licensee, the surface area of each tier or shelf must be included in calculating the area of the plant canopy. Calculation of the area of the plant canopy may not include the areas within the licensed premises of cultivation facility that are used by the licensee to cultivate immature cannabis plants and seedlings and that are not used by the licensee at any time to cultivate mature cannabis plants.

Plant regulator: “Plant regulator” means any substance or mixture of substances intended through physiological action for accelerating or retarding the rate of growth or rate of maturation or for otherwise altering the behavior of plants or the produce thereof. “Plant regulator” does not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants or soil amendments.

Premises: “Premises” means the designated area within a structure or structures and land specified in a license application that is owned, leased or otherwise held under the control of the applicant or licensee where conduct related to the cultivation, manufacture, sampling, testing or sale of adult use cannabis and cannabis products occurs. The premises must be a contiguous area and may be occupied only by one establishment, unless otherwise permitted by statute or this rule, except that nothing in this definition may be construed to prohibit the siting of multiple cannabis establishments in the same building or property so long as each establishment operates in a physically distinct space from any other establishment.

Private residence: “Private residence” means that part of a structure with a fixed location used as a dwelling, including without limitation: a private home, townhouse, condominium, apartment, mobile home, vacation home, cabin or cottage.

Production batch: “Production batch” means a specific quantity of cannabis concentrate or a cannabis product that is produced during a specified period of time using the same extraction and/or manufacturing method, formulation and/or recipe and standard operating procedure. “Production batch” also includes the combination of two or more harvest batches of cannabis trim or kief.

Products manufacturing facility: "Products manufacturing facility" means a facility licensed under this rule to purchase adult use cannabis from a cultivation facility or another products manufacturing facility; to manufacture, label and package adult use cannabis and adult use cannabis products; to collect and transport samples of cannabis, cannabis concentrate and cannabis products manufactured by that facility for mandatory testing; and to sell adult use cannabis and adult use cannabis products to cannabis stores and to other products manufacturing facilities

Propagation: "Propagation" means the process of reproducing cannabis plants through the use of cannabis seeds, cuttings or grafting.

Provisional active license: “Provisional active license” means a license issued by the Department to a cannabis testing facility that has received provisional certification from the CDC and has applied for, but not yet received, ISO/IEC 17025:2017 accreditation for at least one technology and analyte, that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, Chapter 1, subchapter 2 and 6 and this rule.

Provisional certification: “Provisional certification” means certification granted by the CDC pursuant to Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5, to a cannabis testing facility that has not yet received ISO/IEC 17025 accreditation for at least one technology and analyte, but for which an application is pending, and that meets all other requirements of this rule. Provisional certification is a prerequisite for the issuance of a provisional active license by the Department pursuant to this rule.

Qualifying patient: “Qualifying patient” means a person who possesses a valid certification for the medical use of cannabis pursuant to 22 MRS §2423-B.

Quality assurance (QA): “Quality assurance (QA)” means a set of operating principles that enable testing facilities to produce defensible data of known accuracy and precision. Quality assurance includes without limitation employee training, equipment preventative maintenance procedures, calibration procedures and quality control testing.

Quality control (QC): “Quality control (QC)” means the overall system of technical activities that measures the attributes and performance of a process, item or service against defined standards to verify that they meet the stated requirements established by the client; operational techniques and activities that are used to fulfill requirements for quality; also the system of activities and checks used to ensure that measurement systems are maintained within prescribed limits, providing protection against “out of control” conditions and ensuring that the results are of acceptable quality.

Quality assurance manual: “Quality assurance manual” means a document stating the management policies, objectives, principles, organizational structure and authority, responsibilities, accountability and implementation of an agency, organization or a cannabis testing facility, to ensure the quality of its product and the utility of its product to its users.

Quality system: “Quality system” means a structured and documented management system describing the policies, objectives, principles, organizational authority, responsibilities, accountability and implementation plan of an organization for ensuring quality in its work processes, products (items) and services. The quality system provides the framework for planning, implementing and assessing work performed by the organization and for carrying out required QA and QC activities. A cannabis testing facility’s quality system must account for anomalies arising from the collection and transport of samples for mandatory testing conducted by a self-sampler or a sample collector licensee, including provisions regarding the use of blanks.

Registered caregiver: "Registered caregiver" means a caregiver who is registered by the department pursuant to 22 MRS §2425-A.

Registered dispensary: "Registered dispensary" or "dispensary" means an entity registered under 22 MRS §2425-A that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, sells, supplies or dispenses cannabis or related supplies and educational materials to qualifying patients and the caregivers of those patients.

Requester: “Requester” means a person who submits a request to a licensed cannabis testing facility for State-mandated testing of cannabis or cannabis products.

Resident: “Resident” means a natural person who:

1. Has filed a resident individual income tax return in this State pursuant to Title 36, Part 8 in each of the 4 years prior to the year in which the person files an application for licensure under this rule; this requirement does not apply after May 31, 2021;
2. Is domiciled in this State; and
3. Maintains a permanent place of abode in this State and spends in the aggregate more than 183 days of the taxable year in this State.

Retail sale hours: “Retail sale hours” means the hours during which a cannabis store licensee is open to the public to conduct sales to consumers.

Sale: "Sale" or "sell" means a transfer of cannabis or cannabis products for consideration.

Sales delivery manifest: “Sales delivery manifest” means a record required by the Department for a licensed cannabis store to document the possession, transportation and delivery of sales orders of adult use cannabis and/or cannabis products to adult use consumers at a private residence.

Sales Order: “Sales Order” means adult use cannabis or adult use cannabis product, or a combination of adult use cannabis and/or cannabis products, requested by an adult use consumer, through a telephonic or internet-based platform, to be conveyed to the consumer via curbside pickup at a cannabis store or via delivery to a private residence by an employee of the cannabis store.

Sample: “Sample” means, as applicable, an amount of:

1. Cannabis, cannabis concentrate or cannabis product collected from an adult use cannabis establishment for mandatory testing: 1. By an employee of a testing facility in accordance with 28-B MRS §604 and this rule; 2. By a sample collector, in accordance with 28-B MRS §604 and this rule; or 3. By a self-sampler in accordance with 28-B MRS §604-A and this rule;
2. Cannabis, cannabis concentrate or cannabis product provided to a testing facility by a cannabis establishment or other person for mandatory testing or testing for research and development purposes in accordance with 28-B MRS, chapter 1;
3. Adult use cannabis or adult use cannabis product collected from a licensee by the Department for the purposes of testing the cannabis or cannabis product for quality control purposes pursuant to 28-B MRS §512(2);
4. Adult use cannabis provided by a cultivation facility to another licensee for business or marketing purposes pursuant to 28-B MRS §501(8) (trade samples); or
5. Adult use cannabis or adult use cannabis product provided to another licensee by a products manufacturing facility for business or marketing purposes pursuant to 28-B MRS §502(6) (trade samples).

Sample collection SOP: “Sample collection SOP” means a standard operating procedure for the collection of samples of cannabis, cannabis concentrate and cannabis products for mandatory testing published by the Department that must be used by all licensees collecting, transporting and transferring samples for mandatory testing. The current sample collection SOP is Appendix A of this rule.

Sample collector: “Sample collector” means a person licensed pursuant to this rule and 28-B MRS, ch. 1 to collect samples of cannabis and cannabis products for testing and to transport and deliver those samples to a testing facility. A sample collector must hold a valid individual identification card (“IIC”).

Seedling: “Seedling” means a cannabis plant that is:

1. Not flowering;
2. Less than 24 inches in height; and
3. Less than 24 inches in width.

Self-sampler or Self-sampling licensee: “Self-sampler” or “self-sampling licensee” means a cultivation facility, products manufacturing facility or cannabis store licensee that collects samples of cannabis, cannabis concentrate and cannabis products for mandatory testing or an employee of a cultivation facility, products manufacturing facility or cannabis store licensee who collects samples of cannabis, cannabis concentrate and cannabis products for that licensee for mandatory testing. Any individual collecting samples for mandatory testing must hold a valid individual identification card (“IIC”).

Standard operating procedure (SOP): “Standard operating procedure (SOP)” means a written document that details the method for an operation, analysis or action, with thoroughly prescribed techniques and steps.

Tamper-evident: "Tamper-evident" means, with respect to a device or process, bearing a seal, a label or a marking that makes unauthorized access to or tampering with a package, product or container easily detectable.

Target organism: “Target organism” means an organism that is being tested for in an analytical procedure or test method.

Testing: "Testing" or "test" means the research and analysis of cannabis, cannabis products or other substances for contaminants, safety or potency. "Testing" or "test" includes the collection of samples of cannabis and cannabis products for testing purposes but does not include cultivation or manufacturing. Nothing in this definition shall be construed to permit any licensee except a cannabis testing facility to perform analyses of cannabis, cannabis concentrate or cannabis products for mandatory testing without a separate cannabis testing facility license issued by the Department.

Testing facility: "Testing facility" means a facility licensed under this rule to develop, research and test cannabis, cannabis products and other substances.

Testing facility director: “Testing facility director” means the cannabis testing facility director who is legally authorized to direct the activities of a cannabis testing facility and who commits the appropriate resources to comply with this rule.

THC: "THC" means tetrahydrocannabinol.

Tincture: “Tincture”means a liquid edible cannabis product with a concentration of greater than 1 mg of THC per ounce of liquid.

Topical cannabis product: “Topical cannabis product” means non-edible cannabis or cannabis products that are intended to be applied topically and absorbed transdermal, including without limitation salves, creams, lotions, transdermal patches or balms.

Total CBD: “ Total CBD” means the sum of CBD and CBDA. Total CBD is calculated by a cannabis testing facility using the following equation: Total CBD = CBD + (CBDA*0.877).

Total THC: “ Total THC” means the sum of THC and THCA. Total THC is calculated by a cannabis testing facility using the following equation: Total THC = delta-9 THC + (THCA*0.877).

Transport manifest: “Transport manifest”means a record, either paper or electronic, required by the Department for a licensed facility to document the possession of the cannabis or cannabis product on the premises, tracking all inventory, acquisition, and sales as well as the transfer of any cannabis or cannabis product to another facility, including for the purposes of testing or provision of trade samples to another licensee.

Universal symbol: "Universal symbol" means an image developed by the department, and made available to licensees, that indicates that a container, package or product contains cannabis or contains or is a cannabis product.^[1]

Unorganized and deorganized areas: "Unorganized and deorganized areas" has the same meaning as in 12 MRS §682(1).

Unusable: “Unusable” means that the cannabis can no longer be smoked, eaten, ingested, topically applied or otherwise ingested. Nor can the cannabis be further manipulated in a manner to extract more than a trace amount of cannabinoid.

Visibly intoxicated: "Visibly intoxicated" means in a state of intoxication accompanied by a perceptible act, a series of acts or the appearance of an individual that clearly demonstrates the state of intoxication.

Water activity: “Water activity” means a measure of the quantity of water in a product that is available, and therefore capable of, supporting bacteria, yeasts and fungi. Water activity is reported in the unit A_w.

Wholesale container: “Wholesale container” means a sealed package in which adult use cannabis, cannabis concentrate and cannabis products are conveyed during an authorized transfer.

Section 2 – Licenses and Licensing

2.1 - License Types

The general types of licenses for adult use cannabis establishments are cultivation facility, testing facility, products manufacturing facility, cannabis store and sample collector. A license to conduct authorized activities pursuant to 28-B MRS, ch. 1 and this rule does not exempt a licensee from any required inspection, licensure or certification by any federal, state or local jurisdiction in order to conduct such authorized activities; including licenses and certifications required for, without limitation: the production of food and/or bottled beverages; electrical permitting; waste management and environmental protection; workplace safety and employment; and/or pesticide application.

2.2 - Types of Cannabis Establishment Licenses

2.2.1 Cultivation Facility License.

The Department may issue the following types of cultivation facility licenses:

1. Tier 1 cultivation facility license. The two subcategories of tier 1 cultivation facility license are plant-count-based tier 1 cultivation facility license and plant-canopy-based tier 1 cultivation facility license: 1. Plant-count-based tier 1 cultivation facility license. Allows cultivation of a specified number (not more than 30) of mature cannabis plants and an unlimited number of immature cannabis plants and seedlings; 2. Plant-canopy-based tier 1 cultivation facility license. Allows cultivation of not more than 500 square feet of plant canopy of mature plants.
2. Tier 2 cultivation facility license. Allows cultivation by a licensee of not more than 2,000 square feet of plant canopy of mature plants;
3. Tier 3 cultivation facility license. Allows cultivation by a licensee of not more than 7,000 square feet of plant canopy of mature plants;
4. Tier 4 cultivation facility license. Allows cultivation by a licensee of not more than 20,000 square feet of plant canopy of mature plants, except as approved by the Department pursuant to 28-B MRS §304; or
5. Nursery cultivation facility license. Allows cultivation by a licensee of not more than 1,000 square feet of plant canopy, subject to the requirements and restrictions of 28-B MRS §501(3).

A tier 1, tier 2, tier 3 or tier 4 cultivation facility license permits the following activities, subject to all requirements of Maine Title 28-B and this rule:

1. Planting and raising cannabis plants, subject to the limits associated with each tier of license described above;
2. Selling or otherwise transferring cannabis plants to another cultivation facility;
3. Harvesting and trimming cannabis plants;
4. Combining harvest batches of cannabis trim or kief into production batches;
5. Storing harvested cannabis flower, including kief, and cannabis trim;
6. Packaging cannabis flower, including kief, and cannabis trim into individual retail units for wholesale to a cannabis store;
7. Collecting samples of cannabis for mandatory testing and delivering those samples to a testing facility; and
8. Selling and transporting cannabis flower, including kief, and cannabis trim to testing facilities, products manufacturing facilities or cannabis stores.

A nursery cultivation facility license permits the following activities, subject to all requirements of 28-B MRS and this rule:

1. Cultivating immature cannabis plants, subject to the limits described above;
2. Cultivating mature cannabis plants, subject to the plant canopy square footage limits in Section 2.2.1 (A)(5) of this rule, and mother plants, solely for the purpose of propagating seedlings or immature cannabis plants or collecting seeds, in an area clearly delineated from areas used for planting and raising immature cannabis plants and seedlings;
3. Collection of cannabis seeds for sale;
4. Preparation of cannabis seedlings and immature plants for sale;
5. Selling cannabis seeds, seedlings and immature plants to cultivation facilities and cannabis stores;
6. Selling unlimited cannabis seeds, and a sum total of 12 seedlings and immature plants to a consumer 21 years of age or older, provided the licensee has designated an area of premises for retail sales in compliance with Section 3.2.2 of this rule;
7. Collecting samples of cannabis for mandatory or research and development testing and delivering those samples to a testing facility; and
8. Selling agricultural or gardening supplies relating to the cultivation of cannabis to a consumer 21 years of age or older.

2.2.2 Cannabis Testing Facility License.

A cannabis testing facility may purchase or otherwise obtain cannabis or cannabis products for the purposes of training staff, developing and validating protocols, and other purposes that directly support the operation of a cannabis testing facility.

A cannabis testing facility license permits the following activities on behalf of cultivation facilities, products manufacturing facilities, and cannabis stores subject to all requirements of 28-B MRS and this rule:

1. Collecting and transporting, for the purpose of mandatory testing pursuant to 28-B MRS §602, samples of cannabis and/or cannabis products cultivated, manufactured or sold by a licensed cannabis establishment;
2. Receiving, for the purpose of mandatory or other testing, samples of cannabis and cannabis products from sample collectors and self-samplers;
3. Performing laboratory analysis of samples of cannabis and cannabis products following protocols approved by the Department and in accordance with Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5;
4. Providing reports on cannabinoid identity and content profiles and biological and chemical contaminants to cultivation facilities, products manufacturing facilities, and cannabis stores;
5. Reporting testing results according to Section 7 of this rule; and
6. Destroying and disposing of samples, subject to all requirements of 28-B MRS and this rule.

A cannabis testing facility license permits the licensee, upon notification in writing to the Department, to:

1. Accept, from a person 21 years of age or older, cannabis or cannabis products grown or possessed lawfully under 28-B MRS, chapter 3;
2. Perform laboratory analysis of samples of cannabis or cannabis products following protocols approved by the Department; and
3. Issue, solely for the use of the person 21 years of age or older, a report on cannabinoid identity and content profiles and biological and chemical contaminants of the sample.

A cannabis testing facility license permits, upon notification in writing to the Department, the following activities on behalf of qualifying patients, caregivers, registered caregivers or registered dispensaries, subject to all requirements of 28-B MRS, 22 MRS, chapter 558-C and this rule:

1. Collecting and transporting, for testing purposes, samples of cannabis or cannabis products from a qualifying patient, a caregiver, a registered caregiver or a registered dispensary;
2. Performing laboratory analysis of samples of cannabis and cannabis products following protocols approved by the Department;
3. Providing reports to qualifying patients, caregivers, registered caregivers or dispensaries; and
4. Destroying and disposing of samples, subject to all requirements of 28-B MRS and this rule.

2.2.3 Products Manufacturing Facility License.

A products manufacturing facility license permits the following activities, subject to all requirements of 28-B MRS and this rule:

1. Purchasing adult use cannabis from licensed cultivation facilities;
2. Purchasing adult use cannabis concentrate from other licensed products manufacturing facilities;
3. Extracting cannabinoids from cannabis;
4. Preparing, weighing, packaging, labeling and storing cannabis and cannabis products;
5. Collecting samples of cannabis or cannabis products for mandatory or research and development testing and delivering those samples to a testing facility; and
6. Selling or authorized transport of cannabis or cannabis products to licensed products manufacturing facilities and/or cannabis stores.

A products manufacturing facility may assemble packaging and labeling for use on their products if packaging and labeling is consistent with the requirements of governing statute and standards contained in this rule.

A products manufacturing facility shall comply with all generally applicable kitchen-related health and safety standards of the relevant local jurisdiction and of the State of Maine Food Code, Department of Health and Human Services (Chapter 200) and Agriculture, Conservation and Forestry (Chapter 331).

1. Preparation of all edible cannabis products, unless otherwise specified, shall comply with all provisions of the State of Maine Food Code, including rules relating to potentially hazardous foods, food preparation areas and all other safety related provisions, unless otherwise specified.
2. Pursuant to 22 MRS §2158-B, the addition of adult use cannabis to food is not considered adulteration under the State of Maine Food Code.

Adult use cannabis products shall comply with all other provisions of this rule, including the use of solvents and inherently hazardous substances.

2.2.4 Cannabis Store License.

A cannabis store license permits the following activities, subject to all requirements of 28-B MRS and this rule:

1. Purchase, for retail sale to consumers, adult use cannabis, pre-packaged retail units of cannabis flower and cannabis trim, immature cannabis plants and seedlings from a licensed cultivation facility;
2. Purchase, for retail sale to consumers, pre-packaged adult use cannabis and adult use cannabis products from a products manufacturing facility;
3. Store adult use cannabis, adult use cannabis products, immature cannabis plants and seedlings;
4. Collect, subject to the requirements and restrictions of 28-B MRS §604-A, samples of cannabis or cannabis products for mandatory testing;
5. Conduct authorized transfers of adult use cannabis, adult use cannabis products, immature cannabis plants and seedlings to another licensed cannabis store or licensed testing facility, and in the case of returned adult use cannabis and adult use cannabis products, to a licensed cultivation facility or products manufacturing facility;
6. Collecting samples of cannabis or cannabis products for mandatory testing and delivering those samples to a testing facility;
7. Sell adult use cannabis, adult use cannabis products, immature cannabis plants, seedlings and seeds to consumers at a cannabis retail store and at a curbside pickup location indicated on the licensee’s facility plan of record;
8. Sell adult use cannabis, adult use cannabis products, immature cannabis plants, seedlings and seeds to consumers by delivery;
9. Accept returns of adult use cannabis and cannabis products from consumers and promptly destroy such returned items, or return such items, or other items requiring destruction, to a cultivation facility or products manufacturing facility for destruction by that licensee; and
10. Sell consumable products not containing cannabis, including, but not limited to: soft drinks, candies and baked goods.

In addition to any other prohibitions and restrictions of 28-B MRS, this rule, and any other applicable laws or rules, cannabis store licensee may not:

1. Give away adult use cannabis, adult use cannabis products, seedlings or immature cannabis plants;
2. Sell or give away mature cannabis plants or consumable products containing tobacco or alcohol that do not contain cannabis.
3. Except for nonedible adult use cannabis products that do not contain THC, sell to any person in any individual sales transaction an amount of adult use cannabis, adult use cannabis products or immature cannabis plants or seedlings that exceeds the person adult use limitations of 28-B MRS §1501(1);
4. Sell adult use cannabis, adult use cannabis products, immature cannabis plants or cannabis seedlings using: 1. An automated dispensing or vending machine; 2. A drive-through sales window; 3. An Internet-based sales platform; or 4. A third-party delivery service; or
5. Sell adult use cannabis or adult use cannabis products to a person who is visibly intoxicated.

2.2.5 Sample Collector License.

A sample collector license permits the following activities, subject to all requirements of 28-B MRS and this rule:

1. Collecting samples of cannabis and cannabis products from a cannabis establishment for the purposes of mandatory or other testing by a testing facility in compliance with: 1. Applicable sample collection, transport and receipt recordkeeping requirements; 2. The Department-required sampling standard operating procedures; 3. The Department-required Best Practices Guide; and 4. The requirements and restrictions of 28-B MRS §604-A.
2. Transporting and delivering those samples to a testing facility.

A sample collector shall deliver to a cannabis testing facility all samples on the day those sample are collected and may not store any collected samples at the sample collector’s home or place of business. Samples may not be held or stored overnight in the sample collector’s vehicle except in the event of unforeseen exigent circumstances in accordance with Section 4.2.5 of this rule.

2.3 - Qualifications

2.3.1 General Licensing Criteria. An applicant for a license to operate a cannabis establishment must meet each of the following requirements, if applicable. Except as otherwise provided in this Section, if the applicant is a business entity, every officer, director, manager or general partner of the business entity must meet each of the requirements of this Section. An applicant shall disclose in or include with its application the names and addresses of the applicant and all natural persons and business entities having a direct or indirect financial interest in the applied-for license and the nature and extent of the financial interest held by each person or entity and, if applicable, the nature and extent of any financial interest the person or entity has in any other license applied for or issued under this rule.

Age. The applicant must be at least 21 years of age. If the applicant is a business entity, every officer, director, manager or general partner of the business entity must be at least 21 years of age.

Resident.

1. If the applicant is a natural person, the applicant must certify that he or she is a resident of the State of Maine as defined by this rule.
2. If the applicant is a business entity: 1. Every officer, director, manager and general partner of the business entity must be a natural person who is a resident of the State of Maine. The applicant shall demonstrate to the Department that every officer, director, manager and general partner of the business entity is a natural person who is a resident of the State of Maine; and 2. A majority of the shares, membership interests, partnership interests or other equity ownership interests as applicable to the business entity must be held or owned by natural persons who are residents of the State of Maine or business entities whose owners are all natural persons who are residents of the State of Maine. The applicant shall demonstrate to the Department that a majority of the shares, membership interests, partnership interests and other equity ownership interests are held or owned by residents of the State of Maine.
3. This subsection does not apply to an applicant for a testing facility license.

Incorporated in State. If the applicant is a business entity, the business entity must be incorporated in the State of Maine or otherwise formed or organized under the laws of the State.

Prohibited persons.

1. Not employee of state agency. The applicant may not be employed by the Department or any other state agency with regulatory authority under this rule. The applicant must disclose any current state employment.
2. Not law enforcement officer or corrections officer. The applicant may not be a law enforcement officer; a corrections officer as defined in 25 MRS §2801-A(2); or any other natural person subject to the certification requirements of 25 MRS, chapter 341.

Good conduct and character.

1. No disqualifying drug offense. 1. Applicants are required to disclose all state and federal criminal convictions, as well as any pending prosecutions, for offenses punishable by imprisonment for one year or more and involving the possession, distribution, manufacturing, cultivation or use of a controlled substance. 2. The Department may require supplemental information regarding any such convictions disclosed by the applicant or identified by a criminal background check.
2. The Department may not grant a license to anyone convicted of such offenses, except that the Department may grant a license to an applicant if: 1. The applicant completed his or her sentence, including any term of probation, incarceration or supervised release, 10 or more years prior to the submission of the application; or 2. The conviction was based on conduct that is now authorized by 28-B MRS, chapter 3.
3. Department consideration of other offenses. 1. Applicants are required to disclose all state and federal criminal convictions for any offense involving dishonesty, deception, misappropriation or fraud, as well as any pending prosecutions for such offenses. 2. The Department may require supplemental information regarding any such convictions disclosed by the applicant or identified by a criminal background check. 3. The Department shall consider the following in determining whether to grant a license to an applicant convicted of offenses which involved dishonesty, deception, misappropriation or fraud: 1. The recency of the offense(s); 2. The number and frequency of offenses; 3. Evidence of rehabilitation, including employment and educational attainment; and 4. Character references submitted by the applicant. 4. The Department may grant a license to anyone convicted of offenses involving dishonesty, deception, misappropriation or fraud so long as the applicant demonstrates that the applicant is sufficiently rehabilitated to warrant the public trust.
4. No license revocation. The applicant, or if the applicant is a business entity, any officer, director, manager or general partner of that entity, may not have had previously had revoked a license issued under this rule.
5. No medical registry identification card or registration certificate revocation. The applicant or any officer, director, manager and general partner if the applicant is a business entity, may not have had revoked a registry identification card or registration certificate previously issued pursuant to the Maine Medical Use of Cannabis Act.
6. Departmental consideration of enforcement actions in other jurisdictions 1. Applicants are required to disclose any violations or penalties imposed in another jurisdiction regarding the regulated cultivation, manufacture, testing or sale of cannabis or cannabis products.
7. The Department may for good cause deny a license to an applicant if the applicant or any officer, director, manager or general partner if the applicant is a business entity, has had revoked a license, permit, certificate or other government-issued authorization issued in another jurisdiction allowing the cultivation, manufacture, testing or sale of cannabis or cannabis products or has faced significant penalties under such authorization.
8. No outstanding court-ordered payments. A license may not be issued to an applicant if that applicant, or any business entity in which that applicant is an officer, director, manager or general partner, has any outstanding payments due on court-ordered fines, court-appointed attorney's fees or court-ordered restitution. Except that the Department may issue a license to an applicant if it is satisfied that the applicant has entered into, and is in compliance with, any agreement or payment plan for the remittance of any fines, fees, or restitution owed.
9. Departmental consideration of past due taxes, interest, penalties or fees in Maine. 1. Applicants are required to submit a detailed list of any pending past due taxes, interest, penalties or fees owed in Maine. 2. The Department may for good cause deny a license to an applicant if the applicant, or if the applicant is a business entity, any officer, director, manager or general partner of that business entity, is currently delinquent in any payment of income tax, sales tax, excise tax or any other tax, interest, penalty or fee to the state or any municipality within the state. The Department will consider: 1. The amount of the delinquency; 2. Whether deceit was involved; 3. Whether the applicant, or if the applicant is a business entity, any officer, director, manager, or general partner of that business entity to whom this paragraph applies, has entered into, and is in compliance with, any agreement or payment plan with the relevant tax authority overseeing the tax liability for which the applicant is otherwise delinquent; and 4. Other mitigating circumstances.
10. Departmental consideration of past tax delinquency. 1. Applicants, and if the applicant is a business entity, every officer, director, manager and general partner of the business entity, are required to provide detailed tax history, covering Maine and all other jurisdictions in which taxes were owed, for the 5 years preceding the application.
11. The Department shall consider an applicant’s history, and if the applicant is a business entity, every officer’s, director’s, manager’s and general partner’s history of paying taxes to Maine and other jurisdictions in the previous 2 years, as well as any tax liens imposed in any jurisdiction in the previous 5 years, and may for good cause deny a license to an applicant with a recent history of tax delinquency.

Criminal history record check. The applicant must have submitted to a criminal history record check in accordance with the requirements of 28-B MRS and this rule.

Compliance with application process; no false statement of material fact. The applicant must have completed all application forms required by the Department fully and truthfully and complied with all information requests of the department relating to the license application. A license may not be issued to an applicant that has knowingly or recklessly made any false statement of material fact to the Department in applying for a license under this rule. The Department shall revoke the license of a licensee pursuant to 28-B MRS, chapter 1, subchapter 8 if, subsequent to the issuance of the license, the Department determines that the licensee knowingly or recklessly made a false statement of material fact to the Department in applying for the license.

2.3.2 Required Forms and Supplemental Information for All Licenses. All applicants for a cannabis establishment license shall include on forms supplied by the Department as well as attachments thereto, all information requested by the Department, including without limitation information described in this Section. The Department may collect this information as part of the application for conditional cultivation facility, testing facility, products manufacturing facility and cannabis store and active sample collector licenses.

An applicant for a conditional license for a cultivation facility, testing facility, products manufacturing facility or cannabis store license or an applicant for an active sample collector license shall provide, on forms made available by the Department:

1. The name of the applicant;
2. An email account that is actively monitored;
3. Date of application;
4. The type of cannabis establishment license being applied for;
5. Whether or not the licensee proposes to co-locate adult use and medical cannabis operations as permitted by this rule and in accordance with rules governing the Maine Medical Use of Cannabis Program on the licensed premises;
6. If a business entity, identification of every officer, director, manager or general partner of the business entity;
7. Identification of all natural persons and business entities having a direct or indirect financial interest in the applied-for license and the nature and extent of the financial interest held by each person or entity and, if applicable, the nature and extent of any financial interest the person or entity has in any other license applied for or issued under this rule;
8. Identification of any other cannabis establishments, including those outside of Maine, in which the applicant, or if the applicant is a business entity, any officer, director, manager or general partner of the business entity, holds an ownership interest;
9. Attestations that the applicant, or if the applicant is a business entity, every officer, director, manager and general partner of the business entity: 1. Has read the licensing requirements; 2. Is age 21 years or older and meets residency requirements; and 3. Has disclosed any disqualifying drug convictions; convictions for any state or federal offense involving dishonesty, deception, misappropriation or fraud; and/or pending prosecutions for such offenses; and
10. A notarized signature page, attesting under penalty of perjury to the accuracy of the information provided in the application.

At a minimum, all applicants shall provide, at the time of application, the following information:

1. Proof of lawful presence or citizenship and Maine residence, and as required by the current forms prescribed by the Department.
2. A list of natural persons and business entities having a direct or indirect financial interest in the applied-for license and a description of the nature and extent of the financial interest held by each person or entity; except that with respect to banks, credit unions, or other state- or federally-chartered financial institutions, in order to the satisfy the requirements of this subsection, the applicant shall disclose: 1. The name of the institution; 2. The address of the institution; and 3. The terms of any financial instrument held by the bank, credit union, or other state- or federally-chartered financial institution.

If the applicant for any license is a business entity it shall submit all Department-required forms, attachments and supplemental information for every officer, director, manager and general partner, along with the following additional information and supporting material:

1. If the business entity is a corporation, a copy of its articles of incorporation within Maine; corporate bylaws; most recent stock ledger and proof of Maine residency for every officer, director, manager and general partner.
2. If the business entity is a limited liability company, a copy of its certificate of formation within Maine and its operating agreement; and proof of Maine residency for every officer, director, manager and general partner.
3. If the business entity is a general partnership, limited partnership, limited liability partnership or limited liability limited partnership, a copy of the partnership agreement; and proof of Maine residency for every officer, director, manager and general partner.
4. The residency requirements of this subsection do not apply to an applicant for a testing facility license.

The Department shall require evidence of compliance with all tax obligations.

1. The Department shall require each applicant, or if the applicant is a business entity, every officer, director, manager or general partner of that business entity, to disclose the following information to Maine Revenue Services, on forms provided by the Department: 1. The applicant’s, or if the applicant is a business entity, every officer, director, manager or general partner, Social Security Number for the Maine Revenue Service to provide an assessment of whether the person owes back taxes, interest, fees or penalties. 2. A list of sales tax identification numbers and employer identification numbers for all entities licensed in the state in which the applicant, or if the applicant is a business entity, every officer, director, manager or general partner, has a management role or ownership interest of 10 percent or more for the Maine Revenue Service to provide an assessment of whether any of those entities owe back taxes, interest, fees or penalties.
2. The Department shall require the disclosure of the following information to Maine Revenue Services for the purpose for providing evidence of compliance with all tax obligations: 1. For each applicant that is a business entity, the business entity’s employer identification number and any associated sales tax ID number for the Maine Revenue Service to provide an assessment of whether the business entity applying for a license to operate a cannabis establishment owes back taxes, interest, fees or penalties.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

2.3.3 Criminal History Record Check. The Department shall require fingerprinting and state and federal criminal history record checks for every applicant and upon application for renewal.

For applicants that are business entities, the Department shall require fingerprinting and criminal history record checks for every officer, director, manager or general partner.

The applicant is responsible for all costs associated with fingerprinting and criminal history record checks. The fee for the fingerprinting and criminal history record checks shall be set by the State Police and/or State Bureau of Identification, in accordance with its usual operations.

The Department shall issue a fingerprinting and criminal history record check form or use forms specified by the Department of Public Safety, Bureau of State Police, State Bureau of Identification or Federal Bureau of investigation. Such forms shall obtain the applicant’s consent and information needed to complete the check, including but not limited to:

1. First, middle and last name;
2. Any aliases and/or previous names;
3. Date of birth;
4. Place of birth;
5. Identifying information such as gender, height, weight and eye color;
6. Disclosure of previous convictions;
7. Driver license information; and
8. Address and recent residency information.

The Department may request that an applicant disclose his or her Social Security Number if notice is provided that:

1. Indicates the disclosure of the Social Security Number is voluntary; and
2. That the Department requests the Social Security Number for the purpose of positively identifying the applicant during the criminal records check process.

All applicants required to submit to a criminal history record check under this Section shall submit to having the individual's fingerprints taken. The State Police, upon payment by the individual of the required fee, shall take or cause to be taken the individual's fingerprints and shall forward the fingerprints to the Department of Public Safety, Bureau of State Police, State Bureau of Identification.

The State Bureau of Identification shall conduct the state and national criminal history record checks, which shall include information from:

1. The Maine Criminal Justice Information System, regarding records of offenses within the state; and
2. The Federal Bureau of Investigation, regarding offenses in other jurisdictions

Except for the portion of a payment, if any, that constitutes the processing fee for a criminal history record check charged by the Federal Bureau of Investigation, all money received by the State Police under this Section must be paid to the Treasurer of State, who shall apply the money to the expenses incurred by the Department of Public Safety in the administration of this Section.

All criminal history record information obtained by the Department pursuant to this Section is confidential, is for the official use of the Department only and may not be disseminated outside of the Department or disclosed to any other person or entity.

The subject of a Federal Bureau of Investigation criminal history record check may obtain a copy of the criminal history record check by following the procedures outlined in 28 Code of Federal Regulations (henceforth referred to C.F.R; the Code of Federal Regulations is available free online at multiple websites, including federal government websites, by searching the citation. All references are to the 2018 version) Sections 16.32 and 16.33. The subject of a state criminal history record check may inspect and review the criminal history record information pursuant to 16 MRS §709.

2.4 - Application for Conditional License

2.4.1 Conditional License. The Department may issue a conditional license to applicants for any type of cannabis establishment license, except for a sample collector license. Because an applicant for a sample collector license is not required to obtain local authorization, the Department will not issue a conditional sample collector license. Instead, the initial application is for an active license.

Pursuant to 2.3 of this rule, the application for a conditional license must meet all requirements applicable to all license types and include all information applicable to all license types.

The conditional license is valid for one year and is non-renewable.

The conditional license may be used to demonstrate that the applicant has met the Department’s conditional licensing requirements under 28-B MRS §205(3), for the purpose of seeking local authorization.

The conditional license does not grant any authority for cultivation, manufacturing, testing or sale of cannabis or cannabis products.

2.4.2 Additional Requirements for Issuance of a Conditional Cultivation Facility License.

Each applicant for a conditional cultivation facility license shall designate in the preliminary operating plan, included in its application, the tier (or designation as a nursery cultivation facility) for the proposed cultivation facility.

1. Each applicant for a conditional tier 1 cultivation facility license must designate in its application whether the license sought is plant-count based or total plant canopy area based pursuant to 28-B MRS §301.
2. Each applicant for a conditional nursery cultivation facility license must designate in its preliminary operating plan whether it intends to sell cannabis seeds, seedlings or immature plants to adults, 21 years of age or older, who are not licensees.

An applicant for a conditional cultivation facility license that intends to co-locate its licensed premises shall notify the Department of its intention to co-locate in its application.

2.4.3 Additional Requirements for Issuance of a Conditional Testing Facility License. Each applicant for a cannabis testing facility license shall include, on forms supplied by the Department, and attachments thereto, all information required by the Department, including without limitation, the following information:

A statement identifying whether the cannabis testing facility and/or other operational assets will be owned or leased by a person or entity other than the applicant.

A statement as to whether the cannabis testing facility intends to offer, in addition to mandatory testing, testing services to persons 21 years of age or older under 28-B MRS §503(1)(C) and/or qualifying patients, caregivers, registered caregivers or registered dispensaries under 28-B MRS §503(1)(D).

An applicant for a cannabis testing facility must submit the following additional documentation to obtain a conditional license:

1. A written policy that, as indicated by signature, ensures management and personnel are free from any undue internal and external commercial, financial and other pressures, and influences that may adversely affect the quality of their work or diminish confidence in its competence, impartiality, judgement or operational integrity, as well as a signed disclosure by the owner(s) stating that there is no financial conflict with, interest in, investment in, landlord-tenant relationship with or loan to a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary;
2. A description of the organization and management structure of the cannabis testing facility, its place in any parent organization and the relationships between quality assurance, technical operations and support services;
3. A management plan defining the responsibilities of key personnel in the organization who have any involvement or influence on the testing, and if the cannabis testing facility is part of an organization performing activities other than testing, identifying potential conflicts of interest;
4. Written policies and procedures that ensure the protection of its clients’ confidential information and proprietary rights, including procedures for protecting the electronic storage and transmission of results;
5. A written policy defining legal chain of custody protocols and including procedures to control access to certificate of analysis data and other testing data to prevent it from being falsified or manipulated; and
6. Written procedures for the receipt of samples, including samples collected by: 1. Sample collectors pursuant to 28-B MRS §503; 2. Other cannabis establishments for mandatory testing pursuant to 28-B MRS §604-A or for voluntary testing; 3. Qualifying patients, caregivers, registered caregivers or registered dispensaries pursuant to 22 MRS, chapter 558-C; and 4. Other persons 21 years of age or older.

2.4.4 Additional Requirements for Issuance of a Conditional Products Manufacturing Facility License. Each applicant for a conditional products manufacturing facility license shall submit the following information in the preliminary operating plan, included in its application:

A description of the manufacturing activities that will occur on the premises; and

An applicant for a conditional products manufacturing facility license that intends to co-locate its licensed premises shall notify the Department of its intention to co-locate on its application.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

2.4.5 Additional Requirements for Issuance of a Conditional Cannabis Store License. Each applicant for a conditional cannabis store license shall submit the following information in the preliminary operating plan, included in its application:

A cannabis store preliminary operating plan must at a minimum include affirmation that the licensee will conduct retail sales, including sales via curbside pickup and/or delivery, to consumers only between the hours of 7 A.M. and 10 P.M. local time or only those days and hours during which retail sales are permitted by local regulation; and

If the preliminary operating plan for a nursery cultivation facility includes sales to consumers, the operating plan shall meet all requirements that are applicable to cannabis stores in addition to all requirements that are applicable to nursery cultivation facilities.

2.4.6 Administrative abandonment of conditional license applications that are inactive for at least 365 days. The Department may deem an application for a conditional license abandoned if the applicant has not taken any action to complete the application for a conditional license for one year. The Department may deem an application for a conditional license abandoned if the following conditions are met:

The applicant has not taken any action to provide required information to complete its conditional license application for one year; and

The Department attempted to contact the applicant in writing at least 30 days prior to expiration of the one year abandonment period to notify the applicant of the pending abandonment.

Once a conditional license application has been deemed abandoned by the Department, an applicant for a conditional license shall begin a new application for a conditional cannabis establishment license.

2.5 - Application for Active Sample Collector License

2.5.1 Forms. An applicant shall prepare an application on forms made available by the Department along with the appropriate application fee as determined by the Department pursuant to 28-B MRS §207 and this rule. In order for an application for an active sample collector license to be considered complete, the following must be true:

An applicant for a sample collector license must meet all of the requirements in 2.3, 2.4 and 2.6 of this rule, if applicable.

An applicant for a sample collector license shall include on forms supplied by the Department, as well as attachments thereto, all information requested by the Department, including without limitation information described in the sections referenced in subsection A above and:

1. An operating plan including an indication of whether the licensee does not intend to conduct authorized activities during any business hours. The applicant shall indicate any business days or hours, as defined in section 1.4 of this rule, it does not intend to conduct authorized activities;
2. Designation of a place of business or home office where records and equipment are appropriately and securely stored, including a description of where the Department can inspect all required records upon request;
3. A statement asserting whether the sample collector’s operational assets will be owned or leased by a person or entity other than the applicant;
4. A written policy that, as indicated by signature, ensures management and personnel are free from any undue internal and external commercial, financial and other pressures, and influences that may adversely affect the quality of the sample collector’s work, diminish confidence in the sample collector’s competence, impartiality, judgment or operational integrity, as well as a signed disclosure by the owner(s) stating that there is no financial conflict with, interest in, investment in, landlord-tenant relationship with or loan to a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary;
5. A description of the organization and management structure of the sample collector, and its place in any parent organization;
6. Written policies and procedures that ensure that protection of the sample collector’s clients’ confidential information and proprietary rights; and
7. Proof that the applicant has an inventory tracking system account activated and functional.

All applications must be complete and accurate in every material detail.

An application for an active sample collector license is considered incomplete until the Department is in possession of all required forms, supplemental information, criminal history record checks and any other requirements listed in Section 2 of this rule.

A license issued to a cannabis establishment or an individual constitutes a revocable privilege. The burden of proving an Applicant’s qualifications for licensure rests at all times with the applicant.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

2.5.2 Vehicle requirements. An applicant for an active sample collector licenses must provide the following information to the Department for each vehicle that will be used to transport samples:

Proof of a valid insurance policy;

A description, with photos as necessary, of the locked compartment to be used to secure samples; and

A description of how the sample collector will maintain samples within the appropriate temperature range.

2.5.3 Payment of Fees. Before issuing an active license, the Department shall invoice the applicant for the applicable fee as determined by the Department pursuant to Title 28-B and this rule. The Department shall not accept any license fees except pursuant to such invoice.

2.6 - Department Review of Applications for Conditional Licenses and Active Sample Collector License

2.6.1 Ownership interest. Except for an applicant for a cannabis testing facility license, the Department shall verify that any applicant for a cannabis establishment license is either a natural person who is a resident of the state of Maine or is a business entity that meets the requirements of 28-B MRS §202(2).

The Department may require additional information to verify that business structures, loans, franchise agreements, royalty agreements and other legal arrangements are not being used to circumvent licensing requirements including without limitation residency requirements, limits on common financial interests, and disqualifying drug offenses.

The Department will ensure that issuance of both a conditional license or active license to the applicant will not result in any person having a direct or indirect financial interest in:

• 1. More than 3 cultivation facility licenses; 2. Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to section 28-B MRS §304; or 3. A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

An application for license will not be considered complete until the applicant satisfies all such information requests.

The Department may refuse to issue a conditional license for a cultivation facility, products manufacturing facility or cannabis store license or active license for a sample collector to an applicant at its discretion until it is satisfied that the applicant has met the residency requirements of 28-B MRS §202(2) and this rule.

2.6.2 Application Processing. An application for a conditional license, or active license for a sample collector, is considered incomplete until the Department is in possession of all required forms, supplemental information, criminal history record checks and any other requirements listed in Section 2. If, in the course of processing the application, the Department discovers that any required forms, supplemental information or criminal history record checks are incomplete, the Department may ask the applicant to supply the missing information, and the Department has 90 days from the date the Department provides notice to the applicant that the application is complete to review and act upon the application. The Department shall, however, avoid unreasonable delays in the case of inadvertent omission of material that is not central to its review of the merits of the application for a conditional license or active license for a sample collector.

2.6.3 Application Review.

For the purposes of processing applications for cannabis establishments, the Department, pursuant to 28-B MRS §205, shall apply an objective standard to establishing whether an applicant has satisfied the cannabis establishment licensing requirements, specifically the satisfaction of general licensing criteria and the submission of all required documents, forms and fees and the subsequent issuance of provisional and active licenses.

Within 90 days from the date the Department provides notice to the applicant that the application is complete, the Department shall, as applicable:

1. Deny the license application;
2. Issue a non-renewable conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store valid for up to one year; or
3. Issue an active license for a sample collector valid for one year.

2.6.4 Withdrawa l.

The Department and the applicant for a conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store or the applicant for an active license for a sample collector may mutually agree in writing to the voluntary withdrawal of an application.

Applicants must first submit a notice to the Department requesting a voluntary withdrawal of the application.

The Department will consider the request along with any circumstances at issue with the application in making a decision to accept the voluntary withdrawal. The Department may at its discretion grant the request with or without prejudice or deny the request.

The Department will notify the applicant and relevant local jurisdiction of its acceptance of the voluntary withdrawal and the terms thereof.

If the applicant agrees in writing to a voluntary withdrawal granted with prejudice, then the applicant is not eligible to apply again for licensing or approval until after expiration of one year from the date of such voluntary withdrawal.

The Department may not refund any application or other fees, regardless of the circumstances of the withdrawal.

2.6.5 Denial. The Department may for good cause pursuant to 28-B MRS §206 deny an application for a conditional license or for an active sample collector license.

The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

1. Disqualifying drug offenses;
2. Other mandatory disqualifying factors;
3. Failure to meet residency requirements; or
4. Any other reason constituting good cause.

Denial of an application pursuant to 28-B MRS §206 is final agency action as defined in 5 MRS §8002(4). The Department shall notify the applicant in writing of the applicant’s right to appeal the denial to the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

2.7 - Application for Active License of a Cultivation Facility, Testing Facility, Products Manufacturing Facility or Cannabis Store, Including Provisional Testing License

2.7.1 Forms. An applicant shall prepare an application on forms made available by the Department for the type of license sought along with the appropriate application fee as determined by the Department pursuant to 28-B MRS §207 and this rule. In order for an application for a cannabis establishment to be considered complete, the following must be true:

All applications must include all attachments or supplemental information required by the current forms supplied by the Department and all sections of this rule.

All applications must be complete and accurate in every material detail.

A license issued to a cannabis establishment or an individual constitutes a revocable privilege. The burden of proving an Applicant’s qualifications for licensure rests at all times with the applicant.

The Department may refuse to accept or consider an incomplete application.

2.7.2 Local Authorization.

In order for a cultivation facility, testing facility, products manufacturing facility or cannabis store conditional licensee to be eligible for a cannabis establishment active license, the municipality or the Maine Land Use Planning Commission, whichever has jurisdiction over the planned site, must have submitted a signed and notarized local authorization certification form prepared and furnished by the Department.

Upon receipt of the local authorization certification form, the Department shall, within 10 calendar days, notify the applicant of any additional information needed for the issuance of an active license.

Nothing in this rule shall be construed to prohibit local entities from implementing municipal or other local regulations further restricting the operation and siting of cannabis establishments, including, but not limited to regulations regarding the co-location of residences, registered caregivers, dispensaries and/or cannabis establishments.

Local authorization is not required for sample collector licenses.

2.7.3 Tax Registration. The Department may not issue an active license to a conditional licensee that is not properly registered with the State Tax Assessor.

Any conditional licensee must obtain a Sales Tax Identification Number. A unique Sales Tax Identification Number is required for each active license, regardless of common ownership or co-location.

A conditional cultivation facility licensee, including a nursery cultivation facility licensee, must additionally obtain an Excise Tax Identification Number. A unique Excise Tax Identification Number is required for each active cultivation facility license (including nursery cultivation facility), regardless of common ownership or co-location.

As applicable, a conditional licensee must obtain a resale certificate.

2.7.4 Application Review. For the purposes of processing applications for cannabis establishments, the Department, pursuant to 28-B MRS §205, shall apply an objective standard to establishing whether an applicant has satisfied the cannabis establishment licensing requirements, specifically the satisfaction of general licensing criteria and the submission of all required documents, forms and fees and the subsequent issuance of provisional and active licenses.

2.7.5 Supplemental Information for Issuance of Active License.

All conditional licensees must submit the following forms and supplemental information:

1. Evidence of compliance with all applicable electrical inspection and permitting requirements; which may include but is not limited to: a Certificate of Occupancy issued by the municipal code officer, or written clearance by the Electricians Examining Board, Department of Professional and Financial Regulations.
2. Copies of any required licenses, certificates or registrations from any state agency with oversight of any authorized activities conducted on the licensed premises including without limitation: 1. Licenses required for food and beverage manufacturing, bottling and sale from the Department of Agriculture, Conservation and Forestry; 2. Pesticides applicator license from the Board of Pesticides Control, Department of Agriculture, Conservation and Forestry; and/or 3. Tobacco retail sales license from the Department of Health and Human Services and tobacco distributor license from the State Tax Assessor.
3. Affirmation that the licensee will operate in accordance with all applicable federal, state and local laws and regulations, including without limitation laws and regulations regarding waste management and disposal, food and beverage safety, pesticides application and workplace safety.
4. Facility plan, consistent with Section 2.7.6 of this rule.
5. Confirmation that the cannabis establishment has a tracking system account activated and functional.
6. Any material changes from the conditional license application, including but not limited to, any changes related to ownership or control, any changes in residency of the applicant or any officer, director, manager or general partner and any new arrests or criminal charges of the applicant or any officer, director, manager or general partner.
7. Any information necessary to determine if the applicant continues to meet all requirements of conditional licensure; including any updates to information in the application or an attestation that there have not been any material changes to the conditional license application.

All licensees engaging in manufacturing involving inherently hazardous substances shall also show proof of compliance with the requirements of Section 3.8.4 of this rule.

Cultivation facilities, including nursery cultivation facilities, must additionally submit the facility’s Excise Tax Identification Number and verification by the Department of registration with the State Tax Assessor.

A cannabis testing facility must obtain full or provisional certification by the CDC as described in Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, before the Department will issue a provisional or full active testing facility license. A cannabis testing facility may test cannabis and cannabis products only if it holds a current provisional or full certification from the CDC. Initial certification will be for a period of 1 year, and annual recertification is required in compliance with 18-691 CMR, ch. 5. A cannabis testing facility must maintain its certification at all times to remain licensed by the Department. A cannabis testing facility must notify the Department within 1 business day if the CDC suspends or revokes its certification. If the CDC suspends or revokes its certification the cannabis testing facility must cease all testing for any analyte and technology covered by the suspension or revocation.

1. A cannabis testing facility must apply for ISO/IEC 17025:2017 accreditation before the Department will issue a provisional active testing facility license. 1. The cannabis testing facility may apply for a Department-issued testing facility license to conduct testing only for those fields of testing included in the application for ISO/IEC 17025:2017 accreditation. 2. Upon receipt of ISO/IEC 17025:2017 accreditation, a cannabis testing facility must demonstrate proof of accreditation to the Department and DHHS within 5 business days of receipt. 3. Before the expiration of its provisional active license and any permitted one time renewal of the same, a cannabis testing facility must obtain ISO/IEC 17025:2017 accreditation; otherwise it must cease all operations in that field of testing until such accreditation is obtained if no other field of testing related to cannabis remains. 4. If ISO/IEC 17025:2017 accreditation is denied to the cannabis testing facility holding provisional active licensure, the facility must notify the Department of the denial within one business day of receipt of the denial. The Department shall revoke the provisional active license, upon the cannabis testing facility’s notification of denial of ISO/IEC 17025:2017 accreditation.

The Department may request additional information or documentation to ensure that issuance of an active license will not result in any person having a direct or indirect financial interest in:

• 1. More than 3 cultivation facility licenses; 2. Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to 28-B MRS §304; or 3. A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

2.7.6 Facility Plan. In accordance with Section 2.7.5, a conditional licensee shall submit a facility plan that includes all of the following elements in order to receive an active license. The facility plan shall include diagrams and drawings with sufficient detail and clarity to allow the Department to identify all elements required below; such as diagrams and drawings produced using computer-aided design (CAD) or digital drafting software. The facility plan shall include the following elements, identified with sufficient detail for the Department to determine compliance with this section:

Affirmation that the operating plan, and as applicable, cultivation plan submitted for a conditional license is accurate, and updated information if such operating or cultivation plan has changed from the information submitted for conditional licensure;

A table of contents or index identifying the page and/or paragraph number(s) where each required element of the facility plan is located;

Location of the establishment within the municipality, town, township, or plantation, and indicating its proximity to any school. A copy of a tax map showing an area in all directions from the premises of 1000 feet, or in cases where a municipality or the Maine Land Use Planning Commission has reduced the setback to no less than 500 feet, then showing the distance in all directions required by local authority, and indicating that the area around the premises does not include a pre-existing public or private school, as defined in 28-B MRS §§ 402(2)(A) and 403(2)(A), shall meet this requirement;

Size and layout of the establishment, including limited access areas, display areas, commercial kitchen areas, sample receiving areas and points of entry;

Proof of ownership of the premises or proof the owner’s consent for the intended use of the premises;

A legal ingress onto the property from the closest maintained public way;

If the property is also used as a residence, the location of that residence within that property and plans for complete separation of the residence from the facility, including:

1. Entirely separate entrances from a public right of way; and
2. No solvent extraction in the same building or structure as the residence;

Copies or examples of the licensee’s visitor identification badge and visitor entry log in compliance with requirements of Section 3.2.3 of this rule;

Identification of all required security measures required in Section 3.3 and a written security plan in accordance with Section 3.3.4 of this rule;

An indication of whether the licensee does not intend to conduct authorized activities during any business hours, as defined in section 1.4 of this rule. The applicant shall indicate any business days or hours it does not intend to conduct authorized activities;

An indication whether the applicant intends to collect samples of cannabis and deliver them to testing facilities for mandatory testing pursuant to 28-B MRS §604-A, and if so, must submit an attestation that it will follow department-required sampling procedures;

As applicable, plans for co-location of multiple cannabis establishments or a cannabis establishment and a registered caregiver or dispensary; and

For conditional cultivation facility licensees, the following additional elements:

1. The size of the cultivation facility;
2. The layout of the cultivation facility;
3. A floor plan showing the proposed size and layout of the cultivation areas where the licensee intends to cultivate mature cannabis plants, showing exterior dimensions of the areas, drawn in straight lines and clearly stating the square footage of each area. The floor plan for a cannabis cultivation establishment must include the detail dimensions of all areas which the licensee is authorized to cultivate mature plants;
4. A floor plan showing the proposed size and layout of the cultivation areas where the licensee intends to cultivate mature cannabis plants solely for the purpose of propagating seedlings, immature cannabis plants or collecting seeds, seedlings and immature cannabis plants, showing exterior dimensions of the areas, drawn in straight lines and clearly stating the square footage of each area and whether this square footage is within or outside the plant canopy;
5. Clear delineation of where mature cannabis plants, cannabis plants solely used for propagation, immature plants and seedlings will be grown;
6. The lights, irrigation, greenhouses and other equipment to be used;
7. A list of all pesticides, fungicides, insecticides and fertilizers that will be present or used;
8. If applicable as part of an integrated pest management plan, a list of all other vegetation to be cultivated alongside any cannabis; and
9. Each applicant for an active cultivation facility license that intends to co-locate its licensed premise with a registered dispensary or registered caregiver must address the following in its facility plan: 1. Identification of the registered caregiver or registered dispensary that will be co-located with the cultivation facility licensee and demonstration that the applicant is also a registered caregiver or registered dispensary; 2. Indication on the floor plan, with the same level of detail, areas to be used for cultivating cannabis for medical use, including which areas will be used to cultivate plants solely used for propagation, seedlings, immature plants and mature plants; 3. Indication on the floor plan any areas that will support cultivation of both cannabis for medical use and adult use cannabis, including storage areas, office space, walkways, entryways, restrooms and utility rooms; 4. A list of all equipment to be used for cultivating both cannabis for medical use and adult use cannabis; 5. A description of how the licensee will ensure that each shared piece of cultivation equipment is not used simultaneously on cannabis for medical use and adult use cannabis, with the purpose of ensuring that cannabis for medical use remains separate from adult use cannabis. 6. Each applicant for an active cultivation facility license to share premises with a registered dispensary or registered caregiver must address in its cultivation plan the licensee’s plan for physically separating and making visually distinct the areas used for cultivation, drying, curing, trimming, packaging and storage of cannabis for medical use from cultivation of adult use cannabis. 1. A co-located cultivation facility licensee shall ensure that adult use cannabis plants and cannabis plants for medical use are not cultivated in the same cultivation room at the same time; 2. A co-located cultivation facility licensee shall ensure that adult use cannabis plants and cannabis plants for medical use are not dried in the same drying room at the same time; 3. A co-located cultivation facility licensee shall ensure that adult use cannabis and cannabis for medical use is not cured in the same curing room at the same time; 4. A co-located cultivation facility licensee shall ensure that adult use cannabis and cannabis for medical use is not trimmed or packaged in the same room at the same time; and 5. A co-located cultivation facility licensee shall indicate in its facility plan its plan for storing adult cannabis flower and trim and harvested cannabis for medical use in a manner whereby the adult use and medical cannabis are readily identifiable and distinguishable in any shared storage areas; 7. The licensee shall separately track cannabis for medical use and adult use cannabis and will otherwise ensure that they do not become intermixed; 8. The licensee shall affirm that it will not conduct activities related to cannabis for medical use under a Sales Tax Identification Number or Excise Tax Identification Number associate with an adult use license; 9. As applicable, the cultivation facility must have distinctly separate entrances from a public right of way for the area of the premises used for retail sales of adult use cannabis to consumers and for the distribution of cannabis and cannabis products for medical use. Under no circumstances can cannabis or cannabis products for medical use be sold in, transferred, transported or otherwise conveyed through any portion of the co-located premises designated for retail sales of adult use cannabis or cannabis products to consumers; and 10. The cultivation facility must conduct all cultivation activities for adult use cannabis and cannabis for medical use in accordance with this rule and 28-B MRS.
10. Nursery cultivation facility applicants that intend to conduct sales to adults over the age of 21 who are not licensees shall submit a facility plan that meets all of the requirements for both a cultivation facility and a cannabis store.

For conditional cannabis testing facility licensees, the following additional elements:

1. A premises diagram of the cannabis testing facility that includes a brief statement of the primary activity to be conducted in each room or partitioned area, including without limitation activities related to sample receiving, sample storage, record storage, microbiological and chemical analysis and office space;
2. A list of all mandatory tests, including technology and analyte, for which the applicant has received or is applying for ISO/IEC 17025 accreditation at the time of the application for a conditional license from the Department;
3. A list of all mandatory tests, including technology and analyte, for which the applicant has received or is applying for full or provisional certification from the CDC;
4. A list of all nonstandard test methods and technologies for which the applicant has received or requested CDC certification for any mandatory test;
5. A description of the workplace safety plan consistent with 29 CFR 1910 as applicable; and
6. Plans for disposal of cannabis waste and cannabis product waste.

For conditional products manufacturing facility licensees, the following additional elements:

1. A diagram illustrating in which areas of the premises each manufacturing activity will occur;
2. A diagram illustrating the areas of the premises where any solvent (excluding water), chemical or potentially hazardous substance will be stored;
3. Manufacturing equipment to be used, including without limitation extraction equipment, kitchen equipment, and equipment used to package and label cannabis and cannabis products; 1. For any extraction equipment that uses inherently hazardous substances, the UL listing in addition to certification by a professional engineer licensed in Maine that the extraction equipment is properly installed;
4. A description of the types of products such as edible, inhaled or topical that will be manufactured on the premises;
5. Any extraction methods and solvents to be used for extraction;
6. Any inherently hazardous substances to be used for extraction, along with the process for use, certification by a professional engineer licensed in Maine that the manufacturing facility’s storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems are adequate; and
7. Each applicant for an active cannabis products manufacturing facility license that intends to co-locate its licensed premise with a registered dispensary or registered caregiver must address the following in its facility plan: 1. Identification of the registered caregiver or registered dispensary that will be co-located with the products manufacturing facility licensee and demonstration that the applicant is also a registered caregiver or registered dispensary; 2. An indication on the floor plan any areas of the premises where adult use and medical cannabis will be received, manufactured, packaged, labeled or stored; 3. An indication on the floor plan any areas of the premises where equipment, chemicals and other items to be used for both adult use and medical cannabis manufacturing will be used and stored; 4. A list of all extraction equipment and other supplies to be used for extracting from both cannabis for medical use and adult use cannabis; 5. A list of all manufacturing equipment and other supplies to be used for manufacturing both cannabis products for medical use and adult use cannabis products; 6. A description of how the licensee will ensure that each shared piece of extraction or manufacturing equipment is not used simultaneously or contemporaneously on cannabis for medical use and adult use cannabis, with the purpose of ensuring that cannabis, cannabis concentrate and cannabis products for medical use remain separate from adult use cannabis, cannabis concentrate and cannabis products; 7. A description of how the licensee will separately track cannabis for medical use, including input to the tracking system, cannabis concentrate and cannabis products separately from adult use cannabis, cannabis concentrate and cannabis products and will otherwise keep them from becoming intermixed; 8. A clear indication on floor plans of which areas house equipment used to manufacture both cannabis for medical use and adult use cannabis products; and 9. A clear indication of any areas used to store equipment, supplies or non-cannabis ingredients used to produce, package or label both cannabis products for medical use and adult cannabis products.

For conditional cannabis store licensees, the following additional elements:

1. Affirmation that the licensee will only conduct retail sales to consumers during the hours of 7 A.M. and 10 P.M. local time or only those days and hours during which retail sales are permitted by local regulation;
2. An indication of whether the licensee intends to sell adult use cannabis and/or adult use cannabis products to consumers using curbside pickup and/or delivery;
3. A diagram illustrating the layout of the licensed premises, including limited access areas and age-restricted areas and any areas where the licensee intends to conduct curbside pickup; 1. For cannabis store licensees conducting curbside pickup in an area immediately adjacent to the primary public ingress and egress of the store, but not included in the licensed premises, the licensee shall also indicate the curbside pickup area on its facility diagram; 2. Any curbside pickup location outside of the licensed premises must be a place designated for parking or standing, and fully within view of cameras fixed to the exterior of the cannabis store;
4. Identification of the controlled entry area within the licensed premise, or another area outside of the licensed premises where the licensee will verify the identification of all customers and prevention of unauthorized sales to, or access to the retail sales area by, persons under age 21;
5. Descriptions or diagrams of displays indicating how they control customer access to cannabis and cannabis products; and
6. Descriptions of any electrical equipment.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

2.7.7 Co-Location of Adult Use Cannabis Establishments. An applicant may propose the co-location of multiple adult use cannabis establishment types pursuant to the following Section. Nothing in this section should be construed to permit the retail sale of adult use cannabis or adult use cannabis products in the same facility or building in which the licensee also sells or offers for sale to qualifying patients cannabis and cannabis products for medical use pursuant to the Maine Medical Use of Cannabis Act.

The Department may approve an application that would result in a testing facility being located adjacent to another type of adult use cannabis establishment or a registered dispensary, registered caregiver, or manufacturing facility registered in accordance with 22 MRS §2423-F, only if the following conditions are met:

1. The testing facility must have a distinctly separate entrance from a public right of way;
2. The testing facility must demonstrate it has adequate environmental controls to protect against incidental contamination of testing equipment or samples as a result of its location adjacent to an adult use cannabis establishment, registered dispensary, registered caregiver, or manufacturing facility registered in accordance with 22 MRS §2423-F;
3. Signage must not convey the impression that the two businesses are connected; and
4. There must be no way that an employee of the testing facility or the other business may travel between the two businesses without returning to the public right of way. Public right of way shall be interpreted in this subsection to include private property that is generally open to the public during normal business hours, such as a shopping center or business park.

The Department may approve an application that would result in a cultivation facility being co-located with a products manufacturing facility or cannabis store, only if the following conditions are met:

1. The cultivation facility area shall be clearly delineated from the other establishment in all written plans.
2. The cultivation facility may connect to another type of establishment by a single, lockable door. Regardless of common ownership, excise tax is payable when any cannabis seedlings, immature plants, cannabis, or cannabis products pass out of the cultivation facility into another type of cannabis establishment. All cannabis to pass through a single, lockable door must be entered into the tracking system, and excise taxes shall be paid in accordance with this rule and 28-B MRS §1001.
3. If the cultivation facility is co-located with a cannabis store, the cultivation facility may not be also co-located with a registered caregiver or a registered dispensary.
4. If the cultivation facility is co-located with a registered caregiver or registered dispensary, as well as a products manufacturing facility, the licensees shall ensure that all applicable co-location requirements of section 2.7.6 are met.

The Department may approve an application that would result in a products manufacturing facility being co-located with a cannabis store, only if the following conditions are met:

1. The products manufacturing area shall be clearly delineated from the other establishment in all written plans.
2. Any shared space must comply with all regulations applicable to products manufacturing facilities and all regulations applicable to cannabis stores.
3. No manufacturing facility using inherently hazardous substances may be co-located with a cannabis store unless all inherently hazardous extraction activities are conducted in an entirely freestanding structure.
4. The manufacturing facility may not be also co-located with a registered caregiver or a registered dispensary.

2.7.8 Payment of Fees. Before issuing an active license, the Department shall invoice the conditional licensee for the applicable fee as determined by the Department pursuant to Title 28-B and this rule. The Department shall not accept any license fees except pursuant to such invoice.

2.7.9 Denial. The Department may for good cause pursuant to 28-B MRS §206 deny an application for an active license.

The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

1. Failure to meet any of the application requirements of Title 28-B or this rule;
2. Failure to comply with any terms, conditions, or provisions of Title 28-B or this rule, or any applicable state or local law, rule or regulation; or
3. Failure to comply with any special terms, consent decree or conditions placed upon previously issued licenses pursuant to an order of the Department, the municipality, town, plantation, county commission, or Maine Land Use Planning Commission with jurisdiction over the area where the cannabis establishment is located.

Denial of an application pursuant to 28-B MRS §206 is final agency action as defined in 5 MRS §8002(4). The Department shall notify the applicant in writing of the applicant’s right to appeal the denial to the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

2.8 - Individual Identification Cards

2.8.1 Individual Identification Cards Required.

A valid individual identification card issued by the Department is required to be displayed by any individual working in or for a licensed cannabis establishment who:

1. possesses, cultivates, manufactures, packages, tests, dispenses, transfers, serves, handles, transports or delivers cannabis or cannabis products;
2. has the authority to access or input data into the inventory tracking system or a cannabis establishment point of sale system; or
3. is an officer, director, manager or general partner of the licensee.

Licensees are responsible for verifying that each required person has a valid individual identification card and must report within 24 hours any attempt by an individual to use an individual identification card that is falsified, altered or issued to a person other than the bearer.

A contractor of the licensee, including, but not limited to, an electrician, a plumber, an engineer or an alarm technician, whose scope of work will not involve the handling of cannabis or cannabis products does not require an individual identification card, subject to the requirements of Section 3.2 of this rule.

The individual identification card requirement does not apply to employees or agents of the Department, law enforcement officers or employees or agents of other local or state agencies with regulatory authority, including but not limited to fire marshals, electrical inspectors, pesticide control staff and environmental inspectors, for the purpose of exercising such regulatory authority.

2.8.2 Issuance of Individual Identification Cards.

The Department shall issue individual identification cards to natural persons licensed under Title 28-B.

Upon request, the Department shall issue an individual identification card to an officer, director, manager or general partner who has participated in the license application process and has had fingerprinting and criminal history record checks approved by the Department within the past year, subject to the reporting of any arrests subsequent to the criminal history record check.

Upon request, the Department shall issue an individual identification card for the purpose of employment to an applicant who:

1. Submits to fingerprinting and criminal history record checks following procedures applicable to Licensees under this rule;
2. Submits proof of being of age 21 or older in a form satisfactory to the Department;
3. Submits any other information required by the Department on its individual identification card application form, including history of enforcement actions in the adult use or medical use of cannabis programs; and
4. Satisfies all requirements for the issuance of an individual identification card.

The Department shall deny an application for individual identification card by any person who has been convicted of a disqualifying drug offense.

The Department may for good cause deny an application for individual identification card by any person who:

1. Has faced penalties under the adult use cannabis program;
2. Has been subject to revocation of a registry identification card or registration certificate issued pursuant to 22 MRS, chapter 558-C;
3. Has outstanding court-ordered payments, past due taxes or fees or other tax delinquency;
4. Has had an individual identification card revoked within the previous 2 years; or
5. Has had been subject to 2 or more individual identification card revocations.

Each licensee shall provide to the Department annually, and upon request of the Department at any other time, a list of all individual identification card numbers used by any officers, directors, managers, general partners, contractors, employees or other support staff of the licensee.

A licensee shall timely notify the Department if it terminates for cause an individual identification cardholder.

The Department may maintain a list of all individual identification cards that have been issued to individuals and any licensees that have reported an affiliation with the cardholder.

2.8.3 Format and Use of Individual Identification Cards.

The Department shall charge fees for the issuance, reissuance and renewal of an individual identification card in accordance with the fee schedule located in Section 11 of this rule.

The individual identification card shall include a current photograph, full name, date of birth, expiration date and a unique identification number.

Individual identification cards are valid for one year from the date of issue. The individual identification card shall be renewed on forms provided by the Department in accordance with the fee schedule located in Section 11 of this rule; at the time of renewal of an individual identification card, the applicant shall inform the Department of all criminal convictions and other issues that could affect their eligibility since the original issuance of the individual identification card.

All individual identification cards shall remain the property of the Department and shall be returned to the Department upon demand of the Department.

No person shall alter, obscure, damage or deface an individual identification card in any manner. To be valid, all individual identification cards must be in good condition, with all original markings and information clearly legible.

The holder of an identification card must notify the Department immediately if the individual identification card is lost, stolen or damaged. A fee, in accordance with the fee schedule located in Section 11 of this rule, will be charged for the issuance of a reissued individual identification card, which will not extend the expiration date of the individual identification card it replaces.

2.8.4 Appeals. An applicant may appeal an application denial pursuant to the Maine Administrative Procedure Act, 5 MRS, chapter 375.

2.9 - License Renewal Process

2.9.1 Annual Renewal.

Active licenses must be renewed on an annual basis. At the time of renewal the licensee must demonstrate or otherwise confirm continued compliance with all applicable licensing criteria in accordance with 28-B MRS and this rule.

An annual inspection by the Department may be required for renewal of a cannabis establishment license.

A license shall not be renewed by the Department if:

1. Outstanding fines or penalties are owed to the Department, unless a plan for payment of those fines has been agreed to and approved, in writing, by the Department, prior to the expiration of an active license;
2. The licensee has not engaged in licensed activity at the licensed premises for a period of 1 year or more, unless the licensee submits evidence of reasonable justification, including without limitation death, illness, natural disaster, or other circumstances beyond the licensee’s control;
3. Renewal will result in any person having a direct or indirect financial interest in: 1. More than 3 cultivation facility licenses; 2. Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to 28-B MRS §304; or 3. A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

The Department shall notify all licensees of the duty to renew no later than 90 days prior to the expiration date of an active license.

In conjunction with license renewal, a tier 1, tier 2, tier 3 or tier 4 cultivation facility licensee may apply for a change in the tier of cultivation facility license.

1. The Department may approve the application, subject to: 1. Submission of revised facility plan; 2. Payment of any requisite fee(s) in accordance with Section 11 of this rule; 3. If the application is to increase the plant canopy, demonstration that 85% of adult use cannabis cultivated by the licensee at its cultivation facility was sold over the current period of licensure; and 4. Compliance with total canopy limits.
2. If the licensee does not meet the criteria for a tier of cultivation facility license authorizing a greater area of plant canopy, but otherwise meets the requirements for renewal, the Department may renew the license at the existing tier.

In conjunction with license renewal and no more frequently than once in a 2 year period, a tier 4 cultivation facility licensee may apply for an increase of up to 7,000 square feet in plant canopy area.

1. The Department may approve the application, subject to: 1. Submission of revised facility plan, including an updated cultivation plan; 2. Payment of any requisite fee(s) in accordance with Section 11 of this rule; 3. Licensee demonstration that 85% of adult use cannabis cultivated by licensee at its cultivation facility was sold over the past 2-year period of licensure; and 4. Compliance with total canopy limits.
2. If the licensee does not meet the criteria for a greater plant canopy, but otherwise meets the requirements for renewal, the Department may renew the license with the existing plant canopy area.

At the time of renewal, the licensee shall ensure that all material changes to the required plans have been communicated in writing to the Department pursuant to Section 3.5 of this rule.

The licensee shall submit proof that the licensee is still in good standing with MRS.

1. For all licensees, an active Sales Tax Identification Number, and no tax delinquencies associated with that Sales Tax Identification Number.
2. For cultivation facility licensees, an active Excise Tax Identification Number, and no tax delinquencies associated with that Excise Tax Identification Number.
3. For all licensees, a list of all Sales Tax Identification Numbers and Excise Tax Identification Numbers associated with any related cannabis establishment in Maine and no tax delinquencies associated with those numbers.

The licensee shall submit proof, through a renewed local authorization certification form, that the licensee is still in compliance with all requisite local permits and licenses and is in good standing with the municipality or other local entity wherein the licensee’s facility is located.

2.9.2 Continued Authority.

The Department shall make every effort to approve license renewals in a timely manner.

A licensee that has submitted a timely renewal application by the deadline given by the Department shall be permitted to continue operations if the licensee is not required, or if the licensee is a business entity, no officer, director, manager or general partner is required, pursuant to this rule and 28-B MRS, to report information, including criminal convictions or enforcement actions, that could affect continued eligibility.

A cultivation facility may not increase its mature plant canopy beyond the limits of its type of license before receiving approval from the Department.

Any application for change in ownership or control must be approved by the Department and is not considered a renewal application.

2.9.3 Denial.

The Department may deny an application for license renewal. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

Failure to submit a complete application for renewal, including, as applicable, submission of any required updated plans of record;

Failure to pay any outstanding fine or fee required by the Department;

The licensee is subject to an ongoing investigation by the Department; or

Failure to obtain local authorization.

An applicant may appeal a renewal application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

2.10 - Application for Relocation of Licensed Premises

The Department must approve any relocation of any cannabis establishment for which local authorization is required, even if the move is entirely within a premise in the control of the licensee. This includes, but is not limited to: expansion, movement of a greenhouse or changes to co-location of multiple establishment types. Nothing in this section shall be interpreted to require prior approval of the relocation of an establishment not requiring local authorization, including a sample collector.

2.10.1 Conditional Relocation of Licensed Premises Approval.

Before seeking local authorization, the licensee must inform the Department, in writing, of its application for relocation of licensed premises.

1. All licensees must submit an updated facility plan and proof of compliance with all applicable permitting requirements.
2. All cultivation facilities must submit a revised cultivation plan.

The Department shall, within 30 days, issue a decision, in writing, on the application for relocation of licensed premises.

1. The Department may deny an application for relocation of the licensed premises if the licensee has not submitted updated plans of record;
2. The Department may deny an application for relocation of the licensed premises if the licensee has not paid any fine or fee required by the Department; and
3. The Department may deny an application for relocation of the licensed premises during the pendency of an investigation of the licensee by the Department.

All licensees must then obtain, as applicable, local authorization.

The relevant authority must submit a local authorization form to the Department.

2.10.2 Updated License.

Within 10 days of receiving authorization on the local authorization form, the Department shall notify the licensee and issue an updated license with the new address. The license shall have the same expiration date as the one it replaces.

A cannabis establishment may operate at the new location only after receiving the updated license from the Department.

After receiving the updated license, the cannabis establishment may conduct activity concurrently at both locations, subject to the following limitations:

1. The licensee shall provide the department with timeline of planned relocation not to exceed 90 days;
2. From the moment the licensee transfers any cannabis or cannabis products in any form to the new location, the licensee has no more than 90 days to cease all activities at the old location. During the period of transfer, the licensee may not begin any new operations in the old location;
3. From the moment the licensee sells or otherwise transfers cannabis or cannabis products in any form to the new location, the licensee may no longer sell or transfer cannabis or cannabis products in any form at the old location, except to transfer the cannabis or cannabis products to the new location;
4. The licensee shall notify the Department in writing when it has ceased operations at the old location; and
5. During the period of transfer, limits of the number of plants or size of the plant canopy shall be calculated by combining the total amount of plants at both the old and new location.

2.10.3 Relocation with Any Change in Ownership Interests. When a licensee proposes both a relocation and any change in ownership interests, the licensee shall be required to fulfill all requirements of an application for a new license, and the Department shall evaluate the application de novo.

2.10.4 Denial. The Department may deny an application for relocation of licensed premises for failure to comply with section 2.10. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial.An applicant may appeal an application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

2.11 - Transfer of Ownership Interests

2.11.1 Department Approval Required. A licensee may transfer ownership interests, including without limitation partial ownership, only after the application for a transfer of ownership interests has been approved by the Department. Ownership interests include all equity ownership interests as defined in Section 1.4(50)(a) and (b), and all officers, directors, managers or general partners. This section applies, without limitation, to any change in officers, directors, managers or general partners. A licensee is not required to file an application for the transfer of ownership interests for the purpose of reporting transfers to employees whose ownership interests vested during the term of the license through an ESOP disclosed on the licensee’s application for an active license or renewal, so long as such a transfer is not made to a person who is not an employee of the licensee and any such transfer does not result in an ownership interest in excess of the amount of ESOP-designated shares reported on the licensee’s application for a license.

An application for the transfer of ownership interests must:

1. Be completed on forms made available by the Department;
2. Be submitted to the Department;
3. Be accompanied by any applicable fees described on the application form; and
4. Be accompanied by all required forms and supplemental information, provided by the person or entity seeking to assume an ownership interest, similar to that required in an application for a cannabis establishment license, to demonstrate compliance with all applicable requirements for licensure.

Fingerprinting and criminal history record checks in accordance with Section 2.3.3 of the rule as described above are required for anyone proposed as an officer, director, manager or general partner.

If the municipality or Maine Land Use Planning Commission requires notice and approval of transfers of ownership pursuant to its local authorization, the licensee must request and the municipality or the Maine Land Use Planning Commission, as applicable, must submit the local authorization form.

The Department may deny an application for transfer of ownership interests if:

1. The Department determines that any proposed ownership interest is not permitted under 28-B MRS or this rule;
2. The licensee has not paid any fine or fee required by the Department; or
3. The Department is engaged in an ongoing investigation of the licensee.

2.11.2 Temporary Appointee. Ownership or operations generally may not be transferred to a person or business entity prior to the approval of an application for transfer of ownership interests. However, in cases of death, disability, bankruptcy or other exceptional circumstances, a court may appoint a receiver, personal representative, executor, administrator, guardian, conservator, trustee or similarly situated person to take possession of, operate, manage or control a licensed cannabis establishment. Under such circumstances:

The court appointee may assert a financial and management interest in a cannabis establishment upon certification to the Department that the person is 21 years of age and has no disqualifying drug offenses.

No person appointed by the court may enter a limited access area, sell or otherwise transfer cannabis or cannabis products without a valid individual identification card.

No person may use the tracking system until authorized by the Department.

The person shall submit application for transfer of ownership interests as soon as practical, and in no case more than 45 days after a qualifying event.

2.11.3 License Invalidation. The Department may revoke or otherwise make void a license immediately upon discovery of any effort to transfer an ownership interest in a license without complying with the requirements of this subsection.

2.11.4 Denial. The Department may deny an application for transfer of ownership interests for failure to comply with section 2.11. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial.An applicant may appeal an application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

Section 3 - General Compliance

3.1 - Reporting of Ownership, Financial, Management and Other Interests

Licensees shall not attempt to conceal or disguise ownership or other control over their operations. The Department retains discretion to determine when a transfer of ownership interests has occurred. Licensees must comply with all reporting requirements regarding ownership, financial, management and other interests as required by this rule. Natural persons with indirect financial interests as defined in Section 1.4(50)(h) shall be included in the same category as those with a like direct financial interest. It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

3.1.1 Notice and Department Approval Required. Any change in ownership interests, including those in Section 1.4(50)(a), (b), and (g), requires Departmental approval under Section 2.11 prior to anyone with a new ownership interest associating with the licensee.

3.1.2 Notice and Individual Identification Cardholders. Before any new officer, director, manager or general partner or new contractor or consultant as defined in Section 1.4(50)(f) may associate with a licensee, the licensee shall comply with 28-B MRS §213 and this rule in regards to that person.

3.1.3 Notice and Assessment. For any financial interest that does not require prior approval or notice as above, such as Section 1.4(50)(c) and (e) the licensee shall notify the Department prior to the beginning of that association and the Department will consider whether the interest has been appropriately characterized and whether 28-B MRS §205(2) is implicated.

3.1.4 Notice of Termination and Changes. The licensee shall notify the Department within 5 business days of the termination of any direct or indirect financial interest, and of any significant change to the nature or extent of that interest.

3.1.5 No Prior Notice Required. Without prior notice to and approval by the Department, licensees may employ and contract with any persons who clearly do not fall within the definition of those with direct or indirect financial interests in the licensee, for the operation of a cannabis establishment, so long as each such person has a valid individual identification card. Employment of an employee having a direct or indirect financial interest in the license solely through an ESOP as defined in Section 1.4(50)(i) does not require prior notice or approval by the Department provided that the licensee appropriately reports the ESOP, by reporting annually, on forms provided by the Department, the name of any person holding an equity interest in the licensee through an ESOP. Compensation for such persons must not be structured as a means of evading the provisions of this rule. As employers, licensees are required to follow all applicable local, state and federal employment laws. including, without limitation, laws pertaining to workplace safety, hours and wages, and all other laws pertaining to the employment of persons in the State of Maine. Nothing in this rule shall be construed to exempt a cannabis establishment from the rights and responsibilities associated with being an employer.

3.2 - Premises

Only activities authorized by this rule and 28-B MRS may be conducted on the licensed premises. No other activities besides those authorized by this rule and 28-B MRS may be conducted at any time on the licensed premises, including without limitation: sampling events, catered events or parties.

3.2.1 Controlling Entry to Cannabis Establishments.

Cannabis establishments must design entry points so that no person under 21 years of age is allowed entry to the premises.

1. All establishment types must designate specific places at which an employee or licensee will: 1. Verify the age and identity of all persons entering the premises; 2. Require authorized contractors to sign the visitor entry log before entering limited access areas; and 3. Receive mail and other deliveries.
2. Nursery cultivation facilities and cannabis stores must designate specific places at which an employee or licensee will check for a valid government-issued form of identification and controlling access to areas of the premises designated for retail sales, in compliance with section 3.9.4 of this rule.

Entry points must be designed so as not to enable a person under 21 years of age to handle cannabis or cannabis products.

3.2.2 Access to Adults Aged 21 or Older.

Cannabis stores and nursery cultivation may allow access to adults aged 21 or older, after verifying their age on a valid government-issued form of identification, for the following purposes:

1. Consultations between employees and adult customers;
2. Distribution of printed materials about cannabis;
3. Sales or returns of products that may be legally sold by the licensee; and
4. Customer restrooms, if provided.

A cannabis establishment may not allow the purchaser of cannabis or cannabis products to consume them on the premises.

A cannabis testing facility may designate on its facility plan a portion of the premises where it will receive samples for non-mandatory testing from licensees, persons 21 years of age or older, and/or qualifying patients, caregivers, registered caregivers or registered dispensaries in accordance with 28-B MRS §§ 503 and 503-A and this rule.

3.2.3 Limited Access Areas.

Limited access areas include, but are not limited to:

1. Areas in cultivation facilities in which mature cannabis plants, mother plants, immature plants or seedlings are grown; or cannabis is cut, stored, trimmed, cured or otherwise cultivated; cannabis is packaged for transfer; or cannabis waste is stored or processed.
2. Areas in testing facilities in which cannabis or cannabis products are received, stored, handled, tested, transferred or discarded.
3. Areas in cannabis product manufacturing facilities in which cannabis or cannabis concentrate is received, stored, combined with other ingredients or otherwise manufactured; cannabis products are stored, cooled, cut, packaged or labeled; cannabis or cannabis products are refrigerated; or cannabis waste is discarded or destroyed.
4. Areas in cannabis stores in which a person would be able to touch or handle cannabis or cannabis products, including point of sale areas intended for employees only.

Any other area that is used to cultivate, store, weigh, manufacture, package or otherwise prepare for sale adult use cannabis and adult use cannabis products is also considered a limited access area.

It is the sole responsibility of the licensee to control access to limited access areas and limit access only to the following persons:

1. The establishment’s owners, managers or employees who are displaying a valid individual identification card issued to that person;
2. Sample collectors who are displaying a valid individual identification card issued to that person;
3. Employees of a testing facility who are displaying a valid individual identification card issued to that person;
4. Contractors aged 21 or older (including, but not limited to, electricians, plumbers, engineers or alarm technicians) who will not handle cannabis plants, cannabis or cannabis products, in compliance with this subsection;
5. Staff or agents of the Department;
6. Law enforcement officers; and
7. Employees or agents of other local or state agencies with regulatory authority, including but not limited to fire marshals, electrical inspectors, pesticide control staff, and environmental inspectors.

Staff or agents of the Department, and employees or agents of local or state agencies with regulatory authority shall provide proof of identification but shall not be considered visitors and shall not be denied entry to any area of the premises.

Security.

1. Nurseries and cannabis stores that admit persons 21 years of age or older for the purpose of purchasing cannabis plants, cannabis, or cannabis products shall use identification checks, locked doors, video surveillance, counters, and locked displays, in accordance with their Department-approved security plan, to prevent unauthorized entry to limited access areas
2. Other licensees shall use identification checks, locked doors, and video surveillance, in accordance with their Department-approved security plan, to prevent unauthorized entry to limited access areas.
3. Any security breaches must be reported within 24 hours, in writing, to the Department.

Required Signage.

1. All areas of ingress and egress to limited access areas on the premises shall be clearly identified by posting a sign which shall be no smaller than 8.5 inches high and 11 inches wide, composed of letters not less than a half inch in height, which shall state: “Pursuant to State Law: Do Not Enter – Authorized Persons Only.”
2. If a person must pass through a limited access area to reach other limited access areas, and there is no other route through which a person can gain access to the subsequent limited access areas, then signage must only be posted on the first limited access area through which a person must pass.

Contractors and other authorized visitors.

1. Contractors and other authorized visitors who will not handle cannabis plants, cannabis or cannabis products, including but not limited to electricians, plumbers, engineers and alarm technicians, do not require an individual identification card.
2. A contractor may enter a limited access area only if wearing a visitor identification badge, signed in and recorded on a visitor entry log.
3. At all times while in a limited access area, the contractor shall display in a conspicuous place on their person a visitor identification badge. 1. The visitor identification badge must display an identifying mark, which may be a clearly identifiable letter, number or symbol or combination thereof. 2. The visitor identification badge may be displayed on a sticker, a card on a lanyard, a card pinned to the clothing of the visitor, or by other effective means.
4. A visitor entry log must include, at a minimum: 1. The date and time of the visitor’s entry; 2. The date and time of the visitor’s departure; 3. The full name of the visitor; 4. The identifying number of the visitor’s state- or federally-issued identification; 5. The identifying mark on the visitor identification badge; and 6. The purpose for which the contractor is accessing the limited access area[s].

3.3 - Security

Cultivation facilities, testing facilities, products manufacturing facilities, and cannabis stores must provide adequate security at the licensed premises. This section does not apply to sample collectors.

3.3.1 Mandatory Requirements for Cultivation Facilities, Testing Facilities, Products Manufacturing Facilities and Cannabis Stores. As applicable, cannabis establishments must enact security measures to prevent the diversion of cannabis or cannabis products that are being cultivated, manufactured, tested, packaged, stored, displayed or transported.

Lighting

1. Any gate or perimeter entry point of a cannabis establishment must have lighting sufficient for observers to see, and cameras to record, any activity within 10 feet of the gate or entry.
2. A motion detection lighting system may be employed to light required areas in low-light conditions.

Doors and windows

1. Commercial grade locks, appropriate for facilities requiring high levels of physical security, are required on all perimeter entry doors and on all doors separating limited access areas from areas open to visitors and customers.
2. All external entrances to indoor facilities on the licensed premises must be able to be locked.
3. All perimeter windows must be in good condition and lockable.

Alarm system

1. Monitored sensors are required on all perimeter entry points and perimeter windows, except that perimeter windows may be protected by appropriately located motion sensors
2. Alarm systems must be monitored by a licensed security company capable of contacting the licensee and, if necessary, law enforcement.
3. The system must include an audible alarm, which must be capable of being disabled remotely by the security company.

Video surveillance

1. Placement and coverage of cameras shall be sufficient: 1. Cameras must be permanently fixed inside each entry/exit point (perimeter and limited access area) to allow identification of persons entering the premises and limited access areas. 2. Cameras must be permanently fixed outside each entry/exit point (perimeter and limited access area) to allow identification of persons exiting the premises and limited access areas. 3. A sufficient number of cameras must be permanently fixed to allow the viewing, in its entirety, of any area where cannabis, cannabis plants, immature cannabis plants, seedlings, seeds, cannabis concentrate or cannabis products are cultivated, manufactured, stored or prepared for transfer or sale or where samples for mandatory testing are collected, and prepared and sealed for transport to a cannabis testing facility; 1. Except that outdoor cultivation areas must have only a sufficient number of cameras permanently fixed to allow the viewing of the entirety of the perimeter of the cultivation area inside of the exterior fence; and 2. Indoor cultivation areas, including each grow room and each drying room, must have only a sufficient number of cameras permanently fixed to allow the viewing of all points of ingress and egress to and from the cultivation area. 4. A sufficient number of cameras must be permanently fixed to allow the viewing, in its entirety, of any area where cannabis waste is stored before being made unusable, or where cannabis waste is made unusable. 5. A camera must be permanently fixed at each point of sale to ensure identity of the purchaser. 6. A sufficient number of cameras shall be permanently fixed to allow recording of all transactions conducted in areas designated by a cannabis store for curbside pickup by customers, including any areas not included in the licensed premises of the cannabis store but immediately adjacent to the primary public ingress and egress of the cannabis store where the cannabis store intends to conduct curbside pickup by consumers. 1. Any curbside pickup location outside the licensed premises must be in a place designated for parking or standing and capable of being entirely within the view of cameras permanently fixed to the exterior of the licensed premises where such cameras can clearly capture the entirety of the transaction conducted via curbside pickup. 7. A sufficient number of cameras shall be permanently fixed to allow recording of all areas outside of the premises within 10 feet of the exterior fence and gates of a cultivation facility with outdoor growing. 8. Cameras, either mobile or fixed, must be maintained to allow recording of all transactions conducted via delivery. Cameras recording sales via delivery must be sufficient to record the entirety of the transaction and to ensure identity of the purchaser.
2. Video surveillance shall meet the following minimum requirements: 1. Minimum camera resolution is 720p. 2. System storage and cameras are internet protocol (IP) compatible. 3. All cameras must record continuously twenty-four hours per day or be motion activated and at a minimum of 15 frames per second. 1. Motion activated video storage must capture and store footage for no less than 120 seconds prior to motion activation and 120 second following the cessation of motion. 4. All recorded images must clearly and accurately display the time and date. Time is to be measured in accordance with the U.S. National Institute Standards and Technology standards. 5. The surveillance system storage device must be secured on the premises in a lockbox, cabinet or closet, or must be on a third-party server or secured in another manner to protect from employee tampering or criminal theft. 6. Surveillance equipment used to record deliveries shall be secured when not in use and recordings shall be uploaded to the surveillance system server, including if applicable, a third-party cloud-based server, within 24 hours of the transaction. 7. Video surveillance is not intended to include the use of any computer software or application that performs facial surveillance as defined by 25 MRS §6001 (1) (D) and (E).
3. All surveillance recordings, including recordings made of deliveries, must be kept for a minimum of 45 days on the licensee's recording device.
4. All videos are subject to inspection by any Department employee and must be copied and provided to the Department upon request.
5. Licensees shall maintain a list of all persons with access to video surveillance recording and procedures for controlling access to recordings.

3.3.2 Fencing and Lighting Requirements for Cultivation Facilities. A cultivation facility that cultivates seedlings, immature plants, mother plants or mature plants in outdoor areas or in greenhouses or other structures that do not meet all security requirements for buildings must secure such cultivation areas with fencing and lighting.

Any cultivation facility with cultivation areas that do not meet the requirements for building security shall erect secure fencing around such areas. Fencing and all gates must be secure, at least 6 feet high and obscure, or have a cover that obscures, the Limited Access Area from being readily viewed from outside of the fenced in area. Such fencing must be commercial or security grade, not agricultural or residential grade, and designed to prevent access to the cultivation area by unauthorized persons.

Lighting shall be designed to sufficiently illuminate a perimeter of at least 10 feet around any point of entry, whether it is a gate or access from a building. A licensee may use motion sensor lighting in cultivation areas.

3.3.3 Additional Security Measures. The licensee may choose to enact additional security measures to enhance the safety of the cannabis establishment. Any additional security measures implemented by a licensee are subject to the following requirements:

Measures to prevent employee or contractor theft:

1. Licensees may designate areas for employee and contractor storage of bags, overcoats and other belongings.
2. Licensees may place limits on the size of bags to be brought to the cannabis establishment.
3. Licensees may institute other reasonable procedures for checking for stolen cannabis or cannabis products when an employee or contractor leaves the premises.

Security guards:

1. Security guards are permitted but not required at cannabis establishments.
2. Security guards employed or contracted by a licensee must: 1. Meet all qualifications of 32 MRS, chapter 93; 2. Be at least 21 years of age; 3. Comply with all requirements of 32 MRS, chapter 93; and 4. Obtain and display individual identification cards if they will be in limited access areas or in a vehicle that is transporting cannabis plants, cannabis or cannabis products.
3. Security guards must not consume cannabis or cannabis products or be intoxicated while performing any duties for a licensee.
4. Licensees, employees and security guards must comply with all laws and regulations related to firearms and other weapons.

3.3.4 Written Security Plan. Before cultivating, manufacturing, testing, selling, storing or transporting cannabis or cannabis products, each licensee shall receive Department approval of a written security plan, included in the licensee’s facility plan of record, demonstrating compliance with all requirements of this rule.

At a minimum, the security plan shall provide sufficient detail so that the Department may determine whether the following requirements are met:

1. Lighting adequately illuminates entry and exit points;
2. All doors and windows are lockable;
3. Fences (if present) meet height and other requirements;
4. Alarm sensors are present on all entry points and windows and are remotely monitored;
5. Video cameras are present in all required locations;
6. Video cameras and storage meet all required specifications; and
7. In areas of the premises (if any) designated for retail sales, lockable and secure display cases or counters of sufficient height to prevent the public from handling cannabis plants, cannabis or cannabis products without direct supervision of a licensee or employee.

Each licensee shall adhere to the security plan and notify the Department in writing through the submission of a revised security plan 14 days prior to making any material change to security measures. The Department may determine at any time that the revised security plan does not meet minimum requirements. Except in exigent circumstances, which must be communicated to the Department in 24 hours, a licensee may not make any material changes to security measures without prior notice to the Department in writing.

Material changes include, but are not limited to: the addition or removal of sensors or cameras; or changes to the location of sensors, cameras, points of entry or exit or points of sale or authorized transfers; changing security monitoring companies; and changes to lighting.

3.4 - General Conduct

3.4.1. General Requirements.

Cannabis licensees are responsible for the operation of their licensed business in compliance with Maine Revised Statutes, Titles 28-B, 17-A, 36; this rule; and any other applicable state laws and rules.

Licensees and their employees must conduct business and maintain the licensed premises, surrounding area, and vehicles transporting product, in compliance with the following laws, as they now exist or may later be amended:

1. Falsification in Official Matters, 17-A MRS, chapter 19;
2. Offenses against Public Order, 17-A MRS, chapter 21;
3. Drugs, 17-A MRS, chapter 45; and
4. Motor Vehicles and Traffic, 29-A MRS.

Licensees have the responsibility to control their conduct and the conduct of employees, customers, contractors and visitors on the licensed premises at all times. Licensees shall ensure that at all times during business hours, as applicable, and hours of apparent activity that there is, on-site, an individual identification cardholder authorized to cooperate with Department inspection of the premises and business records. Except as otherwise provided by law, licensees or employees may not:

1. Be disorderly or visibly intoxicated by liquor, cannabis or controlled substances on the licensed premises;
2. Permit any disorderly or visibly intoxicated person to remain on the licensed premises;
3. Engage in or allow behavior on the licensed premises that provokes conduct which presents a threat to public safety;
4. Engage in, or permit any employee or other person to engage in, conduct on the licensed premises that is prohibited by any portion of 28-B MRS, 17-A MRS or 36 MRS; any part of this rule; or any other applicable state laws and rules; or
5. Engage in or permit any employee or other person to engage in the consumption of any type of cannabis, cannabis concentrate or cannabis product on the premises, except: 1. A licensee may allow an employee who is a qualifying patient to consume legally obtained medical cannabis or cannabis products on the licensed premises. Pursuant to 22 MRS §2426(2)(B), no employer is required to accommodate the ingestion of medical cannabis in any workplace or any employee working while under the influence of cannabis. 2. An employee of a licensee may ingest, consume or apply products for quality control, research or development, or employee educational purposes, so long as the licensee does not allow any products to be smoked on the premises and the licensee ensures that the person conducting the testing does not operate any equipment or machinery or a motor vehicle while under the influence of the cannabis product.

Licensees are prohibited by this rule from manufacturing, selling or offering for sale any cannabis product intended for intravenous delivery or that involves any type of injection involving piercing of the skin of a human or animal.

3.4.2. General Sanitary Requirements. In addition to the requirements found in Maine Food Code Chapter 33, this rule and all other applicable rules and laws, a cannabis establishment licensee must:

Prohibit an individual from working at a licensed premise who has or appears to have:

1. An open or draining skin lesion unless the individual wears an absorbent dressing and protective gloves; or
2. Any illness accompanied by diarrhea or vomiting if the individual has a reasonable possibility of contact with cannabis or cannabis products on the licensed premises;

Require all persons who work in direct contact with cannabis or cannabis products conform to hygienic practices while on duty, including but not limited to:

1. Maintaining adequate personal cleanliness; and
2. Washing hands thoroughly in an adequate hand-washing area before starting work, prior to having contact with cannabis or cannabis products and at any other time when the hands may have become soiled or contaminated;

Provide adequate and convenient hand-washing facilities, furnished with potable running water at a suitable temperature, effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying device;

Properly remove all litter and waste from the licensed premises and maintain the operating systems for waste disposal in an adequate manner so that they do not constitute a source of contamination in areas where cannabis or cannabis products are exposed;

Provide employees with adequate and readily accessible toilet facilities that are maintained in a sanitary condition and good repair; and

Hold cannabis or cannabis products in a manner that prevents pathogenic microorganism growth or toxin formation.

3.5 - Adherence to Written Plans Approved by the Department

Cannabis establishment licensees are required to conduct operations in accordance with all written plans and applications and supplemental materials submitted by the licensee as an applicant, conditional licensee or active licensee and approved by the Department as indicated by the issuance of a cannabis establishment license.

3.5.1 Covered Plans. As applicable,a licensee is responsible for developing, obtaining approval for and adhering to any plans that the Department may require to promote public health, public safety and orderly operation of the adult use cannabis program in accordance with the 28-B MRS and this rule. At minimum:

All cannabis establishments must develop, receive approval for and operate in accordance with its facility plan.

All cannabis establishments must operate in accordance with:

1. Any applicable written plans of record included in the facility plan of record;
2. Any other written assurances regarding operations to the Department for the purposes of ensuring health and safety;
3. Local ordinances, land use standards and/or warrant articles;
4. Any permits issued, or conditions imposed by a municipality, town, plantation, county commission or the Maine Land Use Planning Commission in connection with local authorization; and
5. Any plans required by any other federal, state or local regulations.

Licensees collecting their own samples for mandatory testing must comply with all Department-required forms, SOPs and guidance.

3.5.2 Plans of Record. The Department shall keep on file a copy of all facility plans as well as copies of certifications of testing facilities. The most recent plan, whether submitted with the issuance of the cannabis establishment license, or by the subsequent approval of an application to change, shall be the plan of record with which the licensee must comply.

3.5.3 Licensee Responsibility. A cannabis establishment licensee is solely responsible for the operation of the cannabis establishment in accordance with the cannabis establishment facility plan of record on file with the Department.

3.5.4 Changes to Facility Plan, including changes to operations, cultivation or security information included therein. Any material changes to the facility plan of record of any cannabis establishment must be approved by the Department. A material change includes without limitation: changes to the licensed premises including changes to the floor plan, security equipment, manufacturing equipment, display cases or any other area of the licensed premises where cannabis is cultivated, manufactured, stored or sold, the addition or removal of curbside pickup locations – including those curbside pickup locations outside the licensed premises but immediately adjacent to the primary public ingress and egress of the cannabis store, the commencement or cessation of delivery activities and seasonal or temporary cessation of authorized activities at a licensed cannabis establishment in excess of 30 days.

An application to materially change the facility plan of a cannabis establishment must be:

1. Submitted on forms made available by the Department;
2. Accompanied by all required fees associated with a change of facility plan; and
3. Consistent with 28-B MRS, this rule and any other applicable laws and rules.

No licensee shall make material changes to operations, including cultivation or security practices, until the application for changes to the facility plan have been approved by the Department.

Within 30 days of receiving an application for changes to the facility plan, the Department shall:

1. Approve the application for changes to the facility plan and update the facility plan of record on file with the Department; or
2. Deny the application for changes to the facility plan only if the changes requested are in violation of 28-B MRS, this rule, conditions required for local approval or other applicable laws or rules.

The Department may place an application for changes to a facility plan on hold if the cannabis establishment applying for the change of facility plan is currently under investigation for a violation of 28-B MRS, this rule or other related laws or rules.

For purposes of this section, a licensee proposing to co-locate a medical cannabis operation not currently operating on the premises shall constitute a material change in the facility plan.

3.6 - Requirements Applicable to Cultivation Facilities

3.6.1 General Compliance. In addition to the general compliance requirements pursuant to this rule, including without limitation Section 3, and all requirements pursuant to 28-B MRS, 36 MRS and all other applicable laws and rules, a cannabis cultivation licensee must comply with the requirements of this subsection.

3.6.2 Privileges Granted. A cannabis cultivation licensee shall only exercise those privileges granted to it by the Department. In accordance with 28-B MRS, this rule and all other applicable laws and rules, a cannabis cultivation licensee may within limited access areas of the premises as described in the cannabis establishment facility plan of record:

Propagate and cultivate cannabis plants;

If appropriately licensed as a pesticide applicator with the Department of Agriculture, Conservation and Forestry, Board of Pesticides Control, apply pesticides, fungicides and growth regulators permitted for use on cannabis to cannabis plants;

Trim, dry, cure and store cannabis;

Prepare cannabis plants and cannabis for authorized transfer and participate in authorized transfers of cannabis plants and cannabis;

Package cannabis for retail sale:

1. A cannabis cultivation establishment may package cannabis flower and trim for retail sale; and
2. A cannabis cultivation establishment may produce pre-rolled cannabis cigarettes, so long as the pre-rolled cannabis cigarettes contain only cannabis flower or trim.

Prepare cannabis waste for disposal and dispose of cannabis waste;

Transfer cannabis samples to products manufacturing and cannabis store licensees pursuant to 28-B MRS and this rule;

Collect samples for mandatory testing in compliance with this rule;

Transfer cannabis testing samples to a licensed cannabis testing facility; and

Performed authorized transfer of cannabis plants and cannabis.

3.6.3 Authorized Sources of Cannabis Plants and Seeds. A cultivation facility licensee may acquire cannabis plants and seeds by the following processes:

By lawful purchase from another cultivation facility licensee, including a nursery cultivation facility.

By gift from an individual person, who must be a resident of the State of Maine:

1. A cultivation facility licensee may receive, by gift from an individual, only seedlings pursuant to this rule;
2. A cultivation facility licensee may not accept, during a 90 day period, more than one transfer of seedlings from each individual gifting seedlings to that licensee;
3. A cultivation facility licensee may not accept more than 6 seedlings from an individual gifting seedlings to the licensee;
4. Before accepting a gift of seedlings, the cultivation facility must receive approval from the Department, in writing, to accept the gift of seedlings. A cultivation facility licensee that receives seedlings as a gift from an individual, shall record on forms made available by the Department, the full name, contact telephone number and the identification number of a valid state identification belonging to the individual;
5. The individual gifting the seedlings to the licensee may not receive remuneration of any kind in return; and
6. The gift of the seedlings must not be conditional or contingent upon any other terms or requirements of the licensee.

By way of limited authorization for the sale of cannabis plants (including seedlings, immature plants, mother plants and mature plants) and cannabis seeds by registered caregiver or registered dispensary to cannabis cultivation licensee, pursuant to 28-B MRS §501(6):

1. A cultivation facility licensee may not make such purchases unless the cultivation facility licensee is: 1. A natural person who is also a registered caregiver or registered dispensary; or 2. A business entity that is also a registered caregiver or registered dispensary.
2. A cultivation facility may not make such purchases more than 1 year after it is first issued a cultivation facility license.
3. A cultivation facility may not make such purchases after September 8, 2022^[2].
4. A cultivation facility must enter all cannabis seedlings, immature plants, mother plants and mature cannabis plants acquired through such purchases into the tracking system.
5. A cultivation facility must report such purchases on a form supplied by the Department.
6. A cultivation facility must pay any excise tax that would have been owed if the same amount of cannabis plants or seeds had been sold by a cultivation facility.
7. Any cannabis seeds and cannabis must be transported in accordance with all requirements relevant to transfers between licensees.
8. A cultivation facility may not make such a purchase from a registered caregiver or registered dispensary that previously has made a sale of cannabis or cannabis seeds under this provision.
9. Any cannabis or cannabis seeds obtained in violation of this paragraph, and any cannabis derived therefrom, are subject to seizure and destruction by the Department, in addition to any administrative penalties that the Department may impose.

3.6.4 Cannabis Cultivation Establishment Premises.

The premises of a cannabis cultivation establishment must comply with all security requirements described in Section 3.3.

All electrical equipment, including but not limited to growing lights, cultivation equipment and packaging equipment, must be agency approved including UL, ETL, and CSA.

Any cultivation of seedlings, immature plants, mother plants or mature plants must take place in:

1. A fully enclosed secure indoor facility or secure greenhouse with walls, a roof, lockable doors, and secure windows as described in Section 3.3 that prevent entry by unauthorized persons; or
2. Within a secured fenced area, as described in Section 3.3, structures, or an expanse of open or cleared ground.

The entire area within the fence surrounding non-secure greenhouses, other structures or expanse of open or cleared ground shall be considered a limited access area.

1. An outdoor or greenhouse cannabis cultivation facility must provide sufficient security measures to demonstrate that outdoor areas are not readily accessible by unauthorized individuals.
2. It shall be the responsibility of the licensee to maintain physical security in a manner similar to a cultivation facility located in an indoor licensed premise so it can be fully secured and alarmed.

A nursery cultivation facility or a cultivation facility that also holds a cannabis store license on the same premises must use a fence or other adequate security measures to separate areas of the premises designated for retail sales from limited access areas, including any area where samples for mandatory testing are collected, packaged, and sealed for transport to a cannabis testing facility.

3.6.5 Authorized Mature Plant Canopy. At no time may a cannabis cultivation licensee cultivate mature cannabis plants in an area not clearly illustrated on the facility plan of record previously filed and approved by the Department. At no time may the total area in square feet in which mature cannabis plants are cultivated exceed the total area for which the cannabis cultivation licensee has been approved as indicated on the license issued to the licensee by the Department.

3.6.6 Cultivation of Medical and Adult Use Cannabis on the Same Premises. A cultivation facility may cultivate both medical cannabis and adult use cannabis only if: (1) it has received the Department’s approval of a facility plan to cultivate both, and (2) it is a validly registered caregiver or dispensary. The cultivation facility must:

Cultivate medical cannabis in an area physically and visually separated from the area used to cultivate adult use cannabis;

Track all medical cannabis separately from adult use cannabis;

Store all medical cannabis separately from adult use cannabis;

Ensure that medical cannabis is never cultivated simultaneously or contemporaneously with adult use cannabis on the same piece of equipment;

Keep a log of the following information for all equipment used to cultivate both medical cannabis and adult use cannabis:

1. The name of the licensee or employee who operated the equipment;
2. The tracking information for the cannabis or cannabis concentrate that was processed using the equipment;
3. The exact date, time and duration the equipment was used; and
4. The tracking information for the resulting cannabis concentrate or cannabis product; and

Make the log for any piece of equipment available to the Department.

3.7 - Requirements Applicable to Testing Facilities

3.7.1 General Requirements. Before accepting any cannabis or cannabis products for mandatory testing pursuant to 28-B MRS §602, a cannabis testing facility must:

Obtain certification from the Department of Health and Human Services, Maine Center for Disease Control and Prevention, in accordance with 18-691 CMR, Ch. 5, at any point during the licensure process, but prior to the issuance of a full or provisional active license by the Department. Approval by the CDC of plans, standard operating procedures, financial and business arrangements, or other documents and information provided for certification by the CDC pursuant to the Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5 does not constitute approval by DAFS for the purposes of licensure pursuant to this rule; and

Obtain a conditional license from the Department, in accordance with Section 2.4; obtain local authorization to operate a cannabis testing facility, in accordance with Section 2.7.2; and an active license from the Department, in accordance with Section 2.7.

3.7.2 Prohibited Conduct. In addition to any other restrictions or prohibitions contained in this rule, 28-B MRS, 18-691 CMR, Ch. 5, any other applicable Federal, State or Local rules or laws or any accreditation requirements, cannabis testing facilities are subject to the following prohibitions.

1. No testing facility or owner, officer, director, manager, general partner, or employee of a cannabis testing facility may have a direct or indirect financial interest in a cultivation facility, products manufacturing facility, manufacturing facility, cannabis store, registered caregiver or registered dispensary.
2. No owner, officer, director manager or general partner of a cannabis testing facility may be a registered caregiver.
3. No testing facility may conduct testing on behalf of a registered caregiver who is an employee of that testing facility.
4. Cannabis or cannabis products may not be collected, accepted, transported, purchased, transferred or destroyed without entering the cannabis or cannabis products into the tracking system required by the Department by 11:59 P.M. that same day.
5. A cannabis testing facility may not transfer any cannabis or cannabis products or samples to any person or entity other than the person or entity who provided the sample, a law enforcement officer authorized to collect the cannabis or cannabis product, another licensed cannabis testing facility with a valid license to perform the testing requested, or the Department.
6. No owner, officer, director, manager, general partner, contractor or employee of a cannabis testing facility may accept any gifts of goods, services, or money from a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary or a person or an organization representing such entities.
7. A cannabis testing facility shall maintain the confidentiality of test results and may not report test results with any identifying information to anyone other than the person or entity who submitted the sample, law enforcement officers authorized to collect the information, the CDC, or the Department.
8. No employee of a cannabis testing facility may alter the results of any test. In cases in which a sample was retested in accordance with Section 7 of this rule, both test results shall be maintained.
9. No employee of a cannabis testing facility may conceal from the Department the results of any mandatory test for cannabinoid content or contamination.
10. No testing facility may fail to operate within the requirements of this rule, any term of certification or any order, or any request or other directive made under authority of or under the statutory authority vested in the Department.
11. No testing facility may engage in, aid, abet, cause or permit any action prohibited under this rule.
12. No testing facility may fail to provide timely and accurate data reporting.
13. No testing facility may engage in false or deceptive advertising.
14. A cannabis testing facility must maintain its certification at all times for at least one analyte and technology required as part of mandatory testing to remain licensed by the Department.
15. No testing facility may continue to operate after a municipality or the Maine Land Use Planning Commission informs the Department that it has revoked, suspended or not renewed local authorization.

3.7.3 Personnel Qualifications. A cannabis testing facility must employ at all times qualified staff who meet the requirements of certification by the CDC.

A cannabis testing facility must ensure that a cannabis testing facility director meeting CDC certification requirement is onsite and available during on average, at least 60% of the business hours indicated on the facility plan.

A cannabis testing facility must keep a current record of all individual identification cards, the individual identification card number and date of issuance and expiration for every officer, director, manager, general partner, employee, or any other individual identification card holder of the cannabis testing facility.

3.7.4 Written SOPs are Requirements of Licensing and Must be Followed.

Actual practice must conform to the written procedures required under 18-691 CMR ch.5.

1. The cannabis testing facility must maintain copies of the methods from which the procedures are developed and must ensure that the applicable requirements are incorporated into each procedure.
2. A copy of each procedure must be available to all personnel that engage in that activity.
3. An analyst must use the cannabis testing facility’s SOP beginning on its effective date.

It is the exclusive responsibility of the cannabis testing facility to clearly indicate on any SOPs supplied to the Department any content the cannabis testing facility deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS §402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

The cannabis testing facility must make the SOPs available to the Department and the CDC upon request.

3.7.5 A Cannabis Testing Facility Must Comply with all Recordkeeping Requirements of 18-691 CMR, Ch. 5 and this Rule.

The cannabis testing facility must maintain analytical records to demonstrate to the Department and the CDC the following: the analyst’s name; date of analysis; approver of the certificate of analysis and relevant data package; the test method; and the materials used.

1. Cannabis testing facility records may be on paper or on electronic, magnetic or optical media and must be stored in such a way that the records are readily retrieved when requested by the Department or the CDC.
2. If the cannabis testing facility records are not on paper, the cannabis testing facility must be able to produce the records in hard copy for the Department or the CDC, upon request.
3. All cannabis testing facility records must be kept for a minimum of five years.
4. The Department and the CDC must be allowed access to all electronic data, including standards records, calibration records, extraction logs, cannabis testing facility notebooks and all other cannabis testing facility-related documents as required by this rule and 18-691 CMR, Ch. 5.

The cannabis testing facility must maintain all analytical records and documents, forms, records and standard operating procedures associated with the cannabis testing facility’s methods as required by this rule and 18-691 CMR, Ch. 5.

If records are missing or incomplete, or if the cannabis testing facility does not produce records for the Department or the CDC upon request, the Department may take disciplinary or enforcement action against the cannabis testing facility. A cannabis testing facility shall have 7 calendar days from the request to respond.

3.7.6 Electronic Data Storage and Security.

A cannabis testing facility must store all raw unprocessed instrument output data files and processed quantitation output files on some form of electronic, magnetic or optical media. The cannabis testing facility must allow access to these records for inspection and audit by the Department or the CDC.

A cannabis testing facility must install, manage and maintain password-protection for electronically stored data, including any certificate of analysis.

3.7.7 Test Waste Disposal.

A cannabis testing facility must dispose of all unused test samples and waste generated by the testing of samples of cannabis, cannabis concentrate and cannabis products in accordance with the facility’s SOPs and this rule.

The cannabis testing facility must discard hazardous waste in accordance with Section 8.1 of this rule.

The cannabis testing facility must discard cannabis waste in accordance with Section 8.2 of this rule.

3.7.8 Security

All cannabis on the premises must be tracked using the chain-of-custody forms and the inventory tracking system in accordance with this rule and 18-691 CMR, Ch. 5.

The cannabis testing facility must install key-card doors, alarms or other means of detecting entrance and exit to limited access areas and during times that are outside of the business hours of the facility.

The cannabis testing facility must develop and implement security protocols that can prevent diversion, theft and loss of samples.

The security protocol must be documented in writing and available to all testing facility personnel during normal business hours and must be included in training materials. The cannabis testing facility must ensure that personnel have a thorough understanding of the security protocol.

The cannabis testing facility must deter the unauthorized entrance into areas within the cannabis testing facility where samples are present by controlling access to those areas through the following means:

1. Limiting access to specific personnel, in order for them to execute their specific job function and duties;

2. Implementing an access-control-card system capable of preventing unauthorized access through access control points and recording the transaction history of all entrants;

3. Using a monitored security alarm system;

4. Maintaining a visitor arrival and departure log, which must contain, at a minimum, the name of the visitor, date and time of arrival and departure, and the purpose of the visit; and

5. Installing security cameras at all access points to the premises, in storage areas for samples and where cannabis waste will be destroyed.

The cannabis testing facility must store and secure cannabis with a commercial-grade lock in a room or cabinet capable of preventing diversion, theft, and loss. Secured areas must be locked at all times, except when managing or retrieving a secured item or items. The cannabis testing facility must store cannabis and cannabis product samples apart and away from non-cannabis samples and items. The cannabis testing facility must designate secured areas for storage of the following:

1. Test samples of cannabis and cannabis products;
2. Waste containing cannabis;
3. Reference standards for analysis of cannabinoids; and
4. Any controlled substances related to cannabinoids.

Testing facilities must notify the Department within one business day of discovering any of the following:

1. An unexplained loss of 5% or more of the inventory of unpackaged and unused production batch samples held at the cannabis testing facility;
2. An unexplained loss of one or more units of packaged batch samples held at the cannabis testing facility; or
3. Diversion or theft of cannabis, unauthorized or prohibited conduct, or any other criminal activity pertaining to the operation of the cannabis testing facility.

The cannabis testing facility must also comply with security requirements of Section 3.3 of this rule.

In addition to any samples collected for mandatory testing by the cannabis testing facility, a cannabis testing facility may only accept samples for mandatory testing from:

1. Licensed sample collectors; or
2. A self-sampler in compliance with this rule.

3.8 - Requirements Applicable to Products Manufacturing Facilities

3.8.1 General Product Safety. In addition to other provisions in this rule, 28-B MRS and all other applicable rules and laws, a cannabis products manufacturing facility must:

Ensure that all equipment and surfaces that come into contact with any cannabis or other ingredients are food grade and made of materials that do not react adversely with cannabis, any ingredient, chemical or solvent being used;

Construct, install and maintain all counters and surface areas in a manner that reduces the potential for development of microbials, molds, mildew, fungi and other contaminants, and that can be easily cleaned;

Maintain the premises in a manner that is:

1. Free from conditions that may result in contamination; and
2. Suitable to facilitate safe and sanitary operations;

Provide adequate refrigeration for perishable cannabis products that will be consumed and utilize adequate storage facilities and transport methods;

Ensure that all electrical equipment used for extraction is agency approved including UL, ETL, and CSA;

Maintain a log of all maintenance, service and repairs to any equipment used for extraction using inherently hazardous substances;

Ensure that all chemicals and substances used in the manufacturing process are stored in a safe location on the premises and in a manner to prevent contamination of any cannabis or cannabis products; and

Collect and submit samples of cannabis concentrate and cannabis products for mandatory testing in accordance with all requirements of this rule.

3.8.2 Prohibited Conduct. In addition to any other restrictions or prohibitions contained in this rule, 28-B MRS and any other applicable rules or laws, a cannabis products manufacturing establishment may not:

Manufacture a cannabis product that by its shape or design is likely to appeal to persons under 21 years of age, including without limitation:

1. Products that are modeled after non-cannabis products commonly consumed by and marketed to persons under 21 years of age; or
2. Products in the distinct shape of a human, animal or fruit.

Manufacture a cannabis product by adding or infusing cannabis into a commercially available non-cannabis end product;

Manufacture any product that does not contain cannabis;

Manufacture any edible cannabis product that has more than 10 milligrams of THC per serving;

Package together for sale an edible cannabis product that has more than 100 milligrams of total THC; or

Engage in the sale of cannabis, if required testing is not verified/verifiable with certificate of analysis, or if testing reports unsafe levels of potentially harmful substances.

3.8.3 Tracking. A cannabis products manufacturing facility must enter into the tracking system all required information each time a batch is created.

3.8.4 Extraction.

Generally safe extraction methods. The Department permits the following generally safe extraction methods, so long as they are listed in the facility plan of record:

1. Mechanical extraction using: 1. Potable water and ice made from potable water; 2. Dry screening or sieving; 3. Cryogenic or subzero processing not involving a solvent; or 4. Pressure and temperature.
2. Infusion of cannabis in food grade fats or synthetic food additives: 1. Propylene glycol; 2. Glycerin; 3. Butter; 4. Olive Oil; or 5. Other typical cooking fats.

Potentially hazardous extraction methods. The Department will permit potentially hazardous solvent extraction using a 99 percent or greater purity of the following solvents, using storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems methods approved in the facility plan of record, so long as the solvents are listed in the facility plan of record and the end result does not exceed allowable limits specified by the Department:

• 1. CO2; 2. Ethanol, including solutions of ethanol and potable water; or 3. A liquid chemical, compressed gas or commercial product that has a flashpoint above 38 degrees Celsius or 100 degrees Fahrenheit.

Inherently hazardous extraction methods. Upon certification by a professional engineer licensed in Maine that the manufacturing facility’s storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems are adequate, the Department will permit inherently hazardous solvent extraction using a 99 percent or greater purity of the following solvents, so long as the solvents are listed in the facility plan of record and the end result does not exceed allowable limits specified by the Department:

• 1. Butane; 2. Propane; 3. Acetone; 4. Heptane; 5. Pentane; or 6. Any other chemicals approved by the Department in writing.

Pressurized canned flammable fuel, including without limitation butane or propane in containers intended for camp stoves, handheld torch devices, refillable cigarette lighters and similar consumer products are prohibited for use in extraction.

As applicable, all licensees and employees must:

1. Operate all inherently hazardous substance extraction equipment in accordance with the equipment manufacturer’s instructions;
2. Work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present;
3. Use proper eye protection, respiratory protection and gloves;
4. Use only potable water and ice made from potable water in processing; and
5. Undergo safety training on fire prevention and safe operation of equipment used for manufacturing.

A cannabis products manufacturing facility performing extraction may be subject to inspection by the state fire marshal, local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present, and that the facility is in compliance with all applicable standards contained in the NFPA model fire code.

3.8.5 Edible Cannabis Products Manufacturing. In addition to all other provisions of this rule, 28-B MRS and all other applicable rules or laws, a cannabis products manufacturing facility that has declared edible cannabis products as part of their facility plan of record may manufacturer edible cannabis products in accordance with the following:

Must obtain a food establishment license from the State of Maine pursuant to 22 MRS §2167.

May not:

1. Manufacture edible cannabis products intended for non-human consumption;
2. Manufacture edible cannabis products within the same licensed food establishment that operates as a restaurant or that prepares non-cannabis food to be served to order;
3. Share a food establishment with a person or entity not licensed as a cannabis products manufacturing establishment; or
4. Process or prepare food intended for commercial sale that does not contain cannabis;

Shall be subject to inspection by state or local regulatory authorities including but not limited to the local fire department, building inspector or code enforcement officer to confirm that no health, safety or threats to the public welfare are present; and

Shall comply with all applicable standards of the relevant local jurisdiction and the Maine Food Code.

1. The addition of cannabis to food is not considered adulteration as provided in 22 MRS §2158-B.
2. In the event of a conflict between this rule and the Maine Food Code, this rule shall control.

3.8.6. Edible Cannabis Product Safety.

Cannabis and cannabinoid content must be homogeneous throughout:

1. The product, or that portion of the product that contains THC; and
2. Each serving.

Serving sizes must be standardized.

1. The size of a standardized serving of cannabis shall be no more than 10mg of total THC.
2. A cannabis products manufacturing facility that manufactures edible cannabis product shall determine the total number of standardized servings per package of cannabis for each product that it manufactures.
3. No individual edible cannabis product unit for sale shall contain more than 100 milligrams of total THC, which must be readily divisible into individual servings containing no more than 10 milligrams of THC per serving.
4. Determinations of cannabinoid content must comply with the testing requirements of this rule.
5. When determining whether a serving of edible cannabis products exceeds the potency limits, a licensee may account for the following variance in the potency in excess of 10 milligrams per serving: 1. Testing facility uncertainty, as indicated on the testing facility’s certificate of analysis for the mandatory potency test results. A variance for testing facility uncertainty cannot exceed 5% or 0.5 milligrams per serving; and 2. An additional 10% allowable variance for edible cannabis products, which cannot exceed 1 milligram per serving; 3. For a total maximum allowable potency of 11 milligrams of total THC per serving plus testing facility uncertainty which cannot exceed 5% or 0.5 milligrams per serving.
6. When determining whether a multi-serving package of edible cannabis products exceeds the potency limits, a licensee may account for the following variance in the potency in excess of 100 milligrams per package: 1. Testing facility uncertainty, as indicated on the testing facility’s certificate of analysis for the mandatory potency test results. A variance for testing facility uncertainty cannot exceed 5% or 5 milligrams per package; and 2. An additional allowable variance of up to 5 milligrams per package; 3. For a total maximum potency per multi-serving package of edible cannabis products of 105 milligrams of total THC plus testing facility uncertainty which cannot exceed 5% or 5 milligrams per multi-serving package.
7. Unless impracticable, each single standardized serving of cannabis shall be marked, stamped or otherwise imprinted with the Department-approved universal symbol directly on at least one side of the edible cannabis product in a manner to cause the universal symbol to be distinguishable and easily recognizable. The universal symbol marking shall:
8. Be centered either horizontally or vertically on each standardized serving of cannabis; and
9. If centered horizontally on a serving, the height and width of the universal symbol shall be of a size that is at least 25% of the serving’s width, but not less than ¼ inch by ¼ inch; or
10. If centered vertically on a serving, the height and width of the universal symbol shall be of a size that is at least 25% of the serving’s height, but not less than ¼ inch by ¼ inch.

The following categories of edible cannabis products are considered to be per se practicable to mark with the universal symbol:

1. Chocolate;
2. Soft confections;
3. Hard confections or lozenges;
4. Consolidated baked goods (including without limitation cookies, brownies, cupcakes, and granola bars); and
5. Pressed pills and capsules.

3.8.7 Manufacturing of Medical Cannabis Products and Adult Use Cannabis Products on Same Premises.

A products manufacturing facility may possess medical cannabis or medical cannabis concentrate only if it has received the Department’s approval of a facility plan to extract concentrate from medical cannabis and/or produce medical cannabis products and it is a validly registered caregiver or registered dispensary. The products manufacturing facility must:

1. Track all medical cannabis, medical cannabis concentrate and medical cannabis products separately from adult use cannabis, adult use cannabis concentrate and adult use cannabis products in the tracking system.
2. Store all medical cannabis, medical cannabis concentrate and medical cannabis products separately from adult use cannabis, cannabis concentrate and cannabis products.
3. Ensure that medical cannabis or medical cannabis concentrate is never manufactured simultaneously or contemporaneously with adult use cannabis or cannabis concentrate on the same piece of equipment.
4. Keep a log of the following information for all equipment used to extract from both medical cannabis and adult use cannabis or to manufacture both medical cannabis products and adult use cannabis products: 1. The name of the licensee or employee who operated the equipment; 2. The tracking information for the cannabis or cannabis concentrate that was manufactured using the equipment; 3. The exact date, time and duration the equipment was used; and 4. The tracking information for the resulting cannabis concentrate or cannabis product.

A log for any piece of equipment used to manufacture cannabis must be made available to the Department or the Maine Revenue Service for inspection.

3.9 - Requirements Applicable to Cannabis Stores and Nursery Cultivation Facilities

3.9.1 Authorized Conduct. In accordance with the requirements and restrictions of 28-B MRS, this rule and any other applicable laws or rules, a cannabis store licensee or nursery cultivation facility may:

Between the hours of 7:00 A.M. and 10:00 P.M. local time or the retail sales hours permitted by local regulation:

1. Sell or transfer permitted items on the licensed premises, and as applicable to cannabis stores, via curbside pickup or delivery, to consumers age 21 or older, within the limits described in this Section: 1. Cannabis stores may sell cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products, along with cannabis paraphernalia, non-cannabis food and non-alcoholic beverages, clothing and other generally permissible retail items. 2. Nursery cultivation facilities may sell cannabis seeds, cannabis seedlings, immature cannabis plants and agricultural or gardening supplies relating to the cultivation of cannabis.
2. Accept returns of products sold by the licensee at the same premises to the person making the return and offer a refund or exchange of equal or lesser value;
3. Refuse to sell any item to any person; or
4. Provide consultations between employees and adult consumers.

At any time, except during those business hours the licensee indicated on its operating plan that it does not intend to conduct authorized activities:

1. Prepare and transport permitted items to another licensee;
2. Accept deliveries of permitted items and manage its inventory;
3. Enter transfers or deliveries into the tracking system;
4. Dispose of cannabis waste, including returned cannabis and cannabis products;
5. Conduct employee training; or
6. Perform administrative work, cleaning or maintenance.

3.9.2 Sales Limits.

A cannabis store conducting sales on the licensed premises of the cannabis store, or by curbside pickup, or delivery, may not knowingly sell more than the following amounts to an individual at any one time or within one day:

1. Two and one-half ounces of cannabis; or
2. Two and one-half ounces of cannabis and cannabis concentrate that includes no more than five grams of cannabis concentrate, whether sold alone, contained in an inhalant delivery system, or contained in edible cannabis products.

A nursery cultivation facility may not sell more than a sum total of 12 seedlings or immature plants to an individual at any one time or within one day.

A nursery cultivation facility may not sell cannabis, cannabis products, cannabis plants or seeds via curbside pickup or delivery.

A cannabis store or nursery cultivation facility is required to report to law enforcement the identity of any individual who explicitly communicates the intent to divert adult use cannabis to individuals under the age of 21, across state lines or to be engaging in the unlicensed sale of cannabis.

A licensee shall report any criminal activity of which it is aware related to the unlicensed sale or diversion of cannabis, cannabis products or cannabis plants. Failure to report such activity to appropriate law enforcement entities may result in penalties up to and including license revocation and monetary fines.

A licensee shall report all transactions into the tracking system.

3.9.3 Prohibited Conduct. In addition to any other prohibitions and restrictions of 28-B MRS, this rule or any other applicable laws or rules, a cannabis store or nursery cultivation facility must not:

Conduct any transaction without face-to-face verification of the purchaser’s identity and age of 21 or older on an approved form of government-issued identification;

Sell cannabis or a cannabis product that has not passed mandatory testing;

Sell a cannabis or cannabis product that is not properly packaged or labeled in accordance with Section 9 of this rule;

Give away adult use cannabis, adult use cannabis products, immature cannabis plants or cannabis seedlings;

Sell or give away:

1. Mature cannabis plants; or
2. Consumable products containing tobacco or alcohol that do not contain cannabis.

Except for nonedible adult use cannabis products that do not contain THC, sell to any person in any individual sales transaction an amount of adult use cannabis, adult use cannabis products or immature cannabis plants or seedlings that exceeds the personal adult use limitations of 28-B MRS §1501(1);

Sell adult use cannabis, adult use cannabis products, immature cannabis plants or cannabis seedlings using:

1. An automated dispensing or vending machine;
2. A drive-through sales window;
3. An Internet-based sales platform; or
4. A third-party delivery service.

Accept payment for a retail sale prior to verifying that the purchaser is at least 21 years of age;

For retail sales occurring via curbside pickup or delivery, transfer a sales order to an individual prior to verifying that the identity of the individual receiving the sales order is the same as the individual who requested the sales order;

Sell adult use cannabis or adult use cannabis products to a person who is visibly intoxicated;

Sell or offer for sale to consumers adult use cannabis and adult use cannabis products within the same facility or building in which the licensee also sells or offers for sale to qualifying patients cannabis and cannabis products for medical use pursuant to 22 MRS, chapter 558-C.

Sell or give away pressurized containers of butane or other materials that could be used in the home production of cannabis concentrate, except that a cannabis store or nursery cultivation facility may sell or give away disposable butane lighters;

Sell or give away any items that are attractive to persons under 21 years of age as defined in Section 3.8.2 of this rule;

Sell an edible cannabis product that according to its label, exceeds 10 milligrams of THC per serving and 100 milligrams of THC in the total product;

Discount cannabis or a cannabis product if the retail sale is made in conjunction with the retail sale of any other items, including other cannabis or cannabis products;

Sell cannabis or cannabis products at a nominal price for promotional purposes;

Permit consumers to be present on the licensed premises or conduct sales, including sales via curbside pickup or delivery, between the hours of 10:00 p.m. and 7:00 a.m. local time the following day or any hours not permitted by local regulation;

Conduct curbside pickup of cannabis or cannabis products at a location not approved by OCP on the licensee’s facility plan of record;

Conduct any activities during hours or on days not authorized in the licensee’s facility plan, except as communicated to and approved by the Department in writing in accordance with Section 3.5.5;

Deliver adult use cannabis or adult use cannabis products to a location that is not a private residence, including without limitation:

1. Dormitories of educational institutions or licensed summer camps;
2. Inns, hotels, motels, lodging houses, campgrounds; and
3. Private and public property including but not limited to schools, parks, parking lots, sidewalks, streets, nonresidential buildings or nonresidential portions of buildings maintained by private or public entities.

Deliver adult use cannabis or adult use cannabis products to a private residence located inside a drug-free safe zone designated by a municipality;

Deliver tobacco products as defined in 22 MRS §1551(3);

Sell or transfer returned cannabis or cannabis products to another consumer;

Permit a consumer to open or alter a package containing cannabis or a cannabis product or otherwise remove cannabis or a cannabis product from packaging required by this rule within the premises or in an area that the licensee controls;

Knowingly permit a consumer to bring cannabis or cannabis products onto the premises except for cannabis or cannabis products being returned for refund or exchange as allowed by this rule;

Sell any item not allowed under this rule or any of the following items:

1. Pet or animal food, treats or other pet or animal products containing cannabis;
2. Injectable cannabis; or
3. Any other cannabis products not meant for human consumption or use;

Sell mother plants, mature cannabis plants or tissue cultures;

Use any electrical equipment, including but not limited to display lighting, not listed as approved by a nationally recognized testing laboratory or not approved by the authority having jurisdiction; or

Engage in the sale of cannabis seeds, cannabis plants, cannabis or cannabis products if mandatory testing is not verified or verifiable with certificate of analysis, or if testing reports unsafe levels of potentially harmful substances.

3.9.4 Controlling Access to Retail Sales Areas. The cannabis store or nursery cultivation facility shall maintain control of areas of the premises designated for retail sales, using one of the following arrangements:

Permitting consumers to enter the controlled entry area for the purpose of verification of their photo identification prior to entry to the retail sales area; or

Keeping entry doors locked . The establishment shall use a door buzzer or other means to alert employees that a person wants to enter the premises. A licensee or employee shall check for valid identification before allowing entry.

3.9.5 Curbside Pickup of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products.

A cannabis store may permit curbside pickup by adult use consumers of adult use cannabis and/or cannabis products if:

The licensee has indicated that it will be conducting curbside pickup on its facility plan of record;

The licensee conducts curbside pickup only in those areas designated for curbside pickup on the licensee’s facility plan of record;

The licensee has implemented all required security measures for curbside pickup;

The licensee verifies the age and identity of the purchaser, to confirm that the individual is at least 21 years of age and is the person who initiated the order, prior to conveying to the purchaser any package containing a sales order;

The adult use cannabis and/or cannabis products are appropriately packaged and labeled in accordance with Section 9 of this Rule; and

All sales of cannabis and cannabis products conducted via curbside pickup are appropriately tracked in accordance with Section 4 of this Rule.

3.9.6 Delivery of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products.

A cannabis store may deliver adult use cannabis and/or cannabis products to consumers at a private residence if the licensee:

Has indicated that it will be conducting delivery of adult use cannabis and/or cannabis products on its facility plan of record;

Has implemented all required security measures for delivery;

Ensures that any employees delivering adult use cannabis and/or cannabis products have been trained to properly verify the age and identity of the adult use consumer purchasing and receiving adult use cannabis or cannabis products. Such training shall include, at a minimum:

1. Instruction on how to verify the authenticity of the government-issued, unexpired photo identification produced by a consumer.
2. Instruction on a policy maintained by the licensee requiring all employees to verify that any adult use consumer receiving a sales order via delivery is: 1. At least 21 years of age; and 2. The individual who initiated the purchase of the cannabis or cannabis products included in the delivery order; and
3. Instruction requiring the termination of a sale via delivery if the employee conducting the delivery is unable to verify the age or identity of the consumer receiving the cannabis or cannabis products, or if the consumer is visibly intoxicated;

Conducts all deliveries of sales orders by motor vehicle only;

Provides adequate refrigeration for perishable cannabis products in transit;

Ensures that any employee delivering adult use cannabis and/or adult use cannabis products does not convey a sales order to a purchaser if:

1. The purchaser is not at least 21 years of age;
2. The purchaser’s identity cannot be verified; or
3. The purchaser is visibly intoxicated;

Ensures that deliveries are made only to private residences, except that a cannabis store licensee shall not deliver to any private residence located in any drug free safe zone designated by a municipality;

Ensures that the order is appropriately packaged and labeled in accordance with Section 9 of this Rule and placed in exit packaging before the licensee or its employees removes the order from inside of the cannabis store;

Ensures that the sales order does not include tobacco products as defined in 22 MRS §1551(3); and

Ensures that all retail sales of cannabis and cannabis products conducted via delivery are accompanied by a sales delivery manifest and appropriately tracked in accordance with Section 4 of this Rule.

Nothing in this section shall be construed to require an employee delivering a sales order to a private residence to enter the private residence in order to complete the retail sale.

3.9.7 Display of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products. Cannabis seeds, seedlings, immature cannabis plants, cannabis and cannabis products may only be displayed in such a way that prevents access to persons who are not licensees or employees.

As permitted under the type of license, cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products may be displayed in such ways that prevents access to persons who are not licensees or employees.

As permitted under the type of license, displays accessible by persons other than licensees and employees may include packaging and marketing materials for cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products and mock examples, provided that no actual cannabis seedlings, immature cannabis plants, cannabis or cannabis products are present.

3.9.8 Point of Sale Areas. A cannabis store or nursery cultivation facility must keep all permitted cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products in limited access areas where access is restricted to licensees and employees.

No person 21 years of age or older who is not a licensee or employee may handle cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products in the point of sale area unless a licensee or its employee supervises the person at all times.

A person 21 years of age or older who is not a licensee or employee may only handle cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products without the supervision of a licensee or employee following the completion of a sale and the purchased items are placed into exit packaging; except that a licensee is not required to place cannabis seedlings or immature cannabis plants in exit packaging.

3.9.9 Exit Packaging. A cannabis store or nursery cultivation facility, after a retail sale, must place all items purchased fully within appropriate exit packaging prior to a customer leaving the premises. For sales to consumers conducted by curbside pickup or delivery, all sales orders to be picked up curbside or delivered to a private residence must be placed in exit packaging in accordance with this section before transporting or transferring the order to the consumer.

All exit packaging must be opaque and fully enclose the purchased items.

All cannabis and cannabis products other than seedlings or immature plants must leave the premises in child-resistant, tamper-evident packaging.

1. Cannabis or cannabis products that are not prepackaged in child-resistant containers must be placed into child-resistant exit packaging.
2. Cannabis or cannabis products that are not prepackaged in tamper-evident containers must be placed into tamper-evident exit packaging.

A licensee may charge a fee to consumers for exit packaging.

A licensee may sell reusable exit packaging that is child-resistant and opaque but not tamper-evident.

A customer may supply reusable exit packaging, so long as:

1. The reusable packaging is of a type sold by the licensee, and the licensee or employee verifies that it is legal exit packaging;
2. The licensee or employee verifies that the reusable exit packaging is in sound condition; and
3. The reusable packaging is used only for cannabis or cannabis products that are prepackaged in tamper-evident packaging and that such sale otherwise meets applicable packaging requirements of 28-B MRS §701(2).

A licensee shall maintain a copy of the certificate showing that all types of exit packaging required to be child-resistant meet the requirements of 16 C.F.R. 1700.15 (1995) and 16 C.F.R. 1700.20 (1995).

3.9.10 Sales Tax. A cannabis store or cannabis nursery cultivation facility must track sales and remit sales taxes according to 36 MRS and the rules of the Maine Revenue Service.

3.10 – Requirements Applicable to Sample Collectors

3.10.1 General Requirements. Before collecting samples of cannabis, cannabis concentrate and cannabis products for mandatory testing, a sample collector must:

Obtain an active sample collector license from the Department;

Ensure that all individuals employed by the sample collector who will be collecting samples of cannabis, cannabis concentrate or cannabis products are in possession of a valid IIC issued by the Department;

Ensure that each individual employed by the sample collector who will be collecting samples of cannabis, cannabis concentrate or cannabis products:

1. Is physically able to perform the duties of a sample collector, with or without reasonable accommodations;
2. Is trained and able to pass initial and ongoing demonstrations of sample collection in compliance with the Sample Collection SOP;
3. Completes, when available, 8 hours of initial training on various sampling techniques; and
4. Completes, when available, 8 hours of periodic refresher training annually; and

Prior to every sample collection for mandatory testing, and in accordance with the sample collection recordkeeping requirements and sample collection SOP published by the Department, contact the cannabis testing facility(ies) conducting the mandatory analyses for instructions regarding the sample collection event, including without limitation:

1. Sample collection tools to be used by the sample collector based upon the matrices to be sampled;
2. Sample collection containers necessary to store the samples collected based on the analyses to be conducted;
3. Sample storage and transportation requirements based upon the matrices sampled and analyses to be conducted; and
4. Any additional considerations regarding sample collection, transportation, storage or receipt of the samples by the cannabis testing facility(ies) conducting the mandatory analyses.

3.10.2 Prohibited Conduct. In addition to any other restrictions or prohibitions contained in this rule, 28-B MRS and any other applicable Federal, State or Local rules or laws, sample collectors are subject to the following prohibitions:

No sample collector or owner, officer, director, manager, general partner or employee of a sample collector may have a direct or indirect financial interest in a cultivation facility, products manufacturing facility, manufacturing facility, cannabis store, registered caregiver or registered dispensary.

No owner, officer, director, manager or general partner of a sample collector may be a registered caregiver.

No sample collector may collect samples for a registered caregiver that is an employee of that sample collector.

Samples of cannabis, cannabis concentrate and cannabis products may not be collected, transported, transferred or destroyed without entering the samples of cannabis, cannabis concentrate or cannabis products into the tracking system required by the Department by 11:59 that same day.

Samples of cannabis, cannabis concentrate and cannabis products may not be stored by the sample collector except during transport from the site where the samples were collected to the cannabis testing facility(ies) conducting mandatory analyses.

Samples of cannabis, cannabis concentrate and cannabis products may not be stored overnight by a sample collector except in exigent circumstances as described in Section 4.2.5 of this rule.

3.10.3 Use of Sample Collection SOP and Best Practices Guide Published by the Department Required. A sample collector must collect samples of cannabis, cannabis concentrate and cannabis products using the Sample Collection SOP and Best Practices Guide published by the Department when collecting samples of cannabis, cannabis concentrate or cannabis products for mandatory testing. A sample collector must document the sample collection event in accordance with the requirements of Section 3.11 of this rule

The sample collector must keep complete records for each sample collection event conducted.

The sample collector must collect samples in accordance with the Sample Collection SOP published by the Department. The Department may require a sample collector to demonstrate to the Department proper sample collection technique in accordance with the Sample Collection SOP at the request of the Department.

The sample collector must collect samples in accordance with the Best Practices Guide published by the Department.

The sample collector must ensure that at all times the sample collector and its employees are using the correct version of the Sample Collection SOP (Appendix A of this rule) and Best Practices Guide available on the Department’s website at: https://www.maine.gov/dafs/ocp/adult-use/applications-forms.

3.10.4 Record Keeping. A sample collector must maintain records in accordance with this rule.

A sample collector must track all samples collected in the inventory tracking system required by the Department.

A sample collector must keep for five years from the date of a sample collection event a copy all records generated by sample collection event conducted by the sample collector and its employees in accordance with Section 3.11 of this rule.

A sample collector must keep personnel records that include information on any training on sample collection received by its employees and a copy of the Department’s Sample Collection Standard Operating Procedure for Mandatory Testing (Appendix A) signed by each IIC holder who will be collecting samples.

A sample collector must keep an up-to-date list of all personnel and vehicles used to conduct sample collection or the transport of samples from the site where the samples are collected to cannabis testing facilities for analyses.

A sample collector must make all required records available to the Department at its request. A sample collector must allow access to the Department to any premises where records are kept, including without limitation all vehicles used to transport samples of cannabis, cannabis concentrate and cannabis products and any physical or electronic location used to store all documents required by this rule.

3.10.5 Waste Disposal. A sample collector may not dispose of waste generated by the collection, storage or transport of samples.

Waste generated by the collection, storage or transport of samples must be disposed of by the licensee from which the samples were collected.

If samples of cannabis, cannabis concentrate or cannabis products collected and transported by a sample collector are rejected by a cannabis testing facility, the sample collector will return the samples of cannabis, cannabis concentrate or cannabis products to the licensee from which the samples were collected.

3.10.6 Security. A sample collector will employ security measures adequate to ensure that samples of cannabis, cannabis concentrate and cannabis products are not stolen or otherwise diverted during the course of sample collection, transport and as necessary due to exigent circumstances, storage.

3.11 – Recordkeeping Requirements for Sample Collection, Transport and Receipt

3.11.1 Sample Collection Records. Licensees collecting samples for mandatory testing, including self-sampling licensees, sample collectors, and cannabis testing facility staff collecting samples for mandatory testing must retain records of every sample collection event in accordance with this section. Licensees may use their own sample collection form, a form provided by the cannabis testing facility conducting the mandatory analyses or a sample collection log or any other format that the licensee can make available to the Department upon request, so long as such records include all information required by this rule. A licensee who is not a self-sampling licensee shall provide the licensee for whom the licensee is collecting samples for mandatory testing with a copy of all sample collection records generated by the sample collection event.

All sample collection records shall be retained for a minimum of 5 years and shall include, for every sample collection event, all information required by this rule and the Sample Collection SOP in Appendix A herein, including without limitation:

The name and individual identification card number of the individual identification cardholder collecting samples for mandatory testing;

Instructions, if any, provided to the self-sampling licensee or sample collector licensee by the cannabis testing facility conducting the mandatory analyses regarding the following:

1. Sample collection tools to be used to collect samples of cannabis, cannabis concentrate or cannabis products, based upon matrix type sampled and mandatory analyses required;
2. Sample storage containers to be used to collect and store the samples of cannabis, concentrate or cannabis products, based upon matrix type sample and mandatory analyses required;
3. Special instructions regarding sample storage and transport, including without limitation: 1. The temperature at which the samples should be stored and transported; 2. The environmental humidity at which the samples should be stored and transported; 3. Any instructions regarding sample storage and transport required to maintain the integrity of the samples during storage and transport; and 4. Any other instructions regarding sample receipt by the cannabis testing facility;

Any anomalies noted by the sample collector in the batch sampled at the time of the sample collection event;

The type, number and weight of each sample storage container used to store sample increments collected;

The total weight of the composite sample and the weight of any additional sample increments collected for homogeneity testing;

The seal numbers for every tamper evident seal affixed to a sample container used in the sample collection event;

An attestation signed by the individual identification cardholder who collected the samples for mandatory testing and affixed tamper evident seals to every sample container in accordance with the Department’s Sample Collection SOP, that is also signed by an individual identification cardholder who witnessed the tamper evident seals being affixed to the sample containers. All signatures must be either wet or digital. The attestation must include, without limitation, the following:

1. A statement attesting that the self-sampler or sample collector: 1. Collected all samples in accordance with the Department’s Sample Collection SOP, Best Practices Guide and any instructions provided by the cannabis testing facility conducting the mandatory analyses; 2. Collected all sample increments randomly and that the self-sampler or sample collector did not intentionally enrich, alter, tamper with, degrade or otherwise alter the sample increments collected; 3. Was not asked by, nor allowed, another individual identification cardholder to enrich, alter, tamper with, degrade or otherwise alter the sample increments collected; 4. Sealed the sample collection containers with tamper evident seals in the presence of the witness countersigning the attestation; and 5. Acknowledges that any intentional misrepresentation in the sample collection records or any attempt at tampering with the samples collected is grounds for revocation of the individual’s individual identification card and/or revocation, suspension or limitation of the sampling licensee’s license; and
2. A statement attesting that the witness: 1. Was present for the sealing of the sample containers with the tamper evident seal; 2. Did not witness the sample collector enrich, alter, tamper with, degrade or otherwise alter the sample increments when affixing the tamper evident seals to the sample containers; 3. Did not enrich, alter, tamper with, degrade or otherwise alter the sample increments when the tamper evident seals were affixed to the sample containers; and 4. Acknowledges that any intentional misrepresentation by the witness is grounds for revocation of the witness’ individual identification card and/or revocation, suspension or limitation of the sampling licensee’s license.

3.11.2 Sample Transportation Records. Except as permitted by this rule, the licensee that collected samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must transport those samples to the cannabis testing facility conducting the mandatory analyses. A cannabis testing facility that did not collect the samples for mandatory testing, but that offers a service to transport samples collected by self-sampling licensees to its testing facility for mandatory testing, may offer to transport samples from self-sampling licensees to the cannabis testing facility for mandatory analyses. A cannabis testing facility may not transport samples to any other licensee unless otherwise authorized by this rule or 18-691 CMR, ch. 5. All samples of cannabis, cannabis concentrate and cannabis products must be appropriately tracked in the Department’s inventory tracking system and accompanied by a transport manifest in accordance with this rule.

3.11.3 Sample Receipt Records. A cannabis testing facility must maintain sample receipt records in accordance with the cannabis testing facility’s quality system and must at all times maintain chain-of-custody records for all samples of cannabis, cannabis concentrate and cannabis products received by the cannabis testing facility from the time of receipt through storage, analysis and destruction. A cannabis testing facility may require any licensee delivering samples to the cannabis testing facility to record sample information on a form created by or in a database maintained by the cannabis testing facility, in addition to any sample collection records maintained by the licensee. The cannabis testing facility conducting mandatory analyses is responsible for maintaining all sample receipt records and must make those records available to the Department upon request.

Section 4 - Tracking, Transportation and Authorized Transfers

4.1 - General Tracking Requirements

In addition to any requirements specific to tracking within each license type, all licensees of cannabis establishments must meet minimum requirements.

Cannabis establishment licensees must track, using the inventory tracking system specified by the Department, cannabis, cannabis concentrates and cannabis products from immature plant to point of sale.

In addition to any tracking requirements specific to license type, a licensee must record the following data in the tracking system as applicable:

1. A complete inventory of all seeds, seedlings, immature cannabis plants, mother plants and mature cannabis plants, cannabis, cannabis concentrate and cannabis products in the possession, control or ownership of the licensee;
2. Any changes to the cannabis establishment’s inventory of any cannabis;
3. When plants are partially or fully harvested or destroyed;
4. When harvest batches of cannabis trim or kief are combined into a single production batch;
5. When cannabis waste is destroyed;
6. When an authorized transfer occurs;
7. Any theft of cannabis;
8. All sales records;
9. All mandatory testing results; and
10. Other information required by the tracking system or specified by the Department.

4.1.1 Implementation and Administration of Tracking System.

Unless excused by the Department, in writing, a cannabis establishment must have an inventory tracking system account activated and functional prior to operating or exercising any privileges of a license. The licensee shall keep and maintain comprehensive records to ensure adequate inventory tracking of any cannabis, cannabis concentrates and cannabis products during the period the licensee is not otherwise using the inventory tracking system.

Licensees may not enter any inventory into the inventory tracking system until the licensee receives from the Department an active license to conduct authorized activities.

Each licensee must designate one individual identification cardholder as an inventory tracking system administrator.

In order to obtain an inventory tracking system administrator account, a licensee or its designee must attend and successfully complete all required inventory tracking system training. A licensee may apply for an account and training once they receive a conditional license from the Department.

The Department may also require additional ongoing, continuing education for the inventory tracking system administrator to retain his or her inventory tracking system administrator account.

Each licensee is responsible for all costs associated with its use of the tracking system and any associated vendor fees.

A cannabis establishment may designate additional employees or staff who are individual identification cardholders as inventory tracking system users. The establishment shall ensure that all individuals who are granted inventory tracking system user account access for the purposes of conducting inventory tracking functions in the system are trained by inventory tracking system administrators in the proper and lawful use of the inventory tracking system.

4.1.2 General Inventory Tracking System Use.

All inventory tracking activities at a cannabis establishment licensee must be tracked through use of the inventory tracking system. A licensee must reconcile all on-premises and in-transit cannabis, cannabis concentrates and cannabis product inventories, and sales records, including sales conducted by delivery, each day in the inventory tracking system by 11:59 p.m. that same day.

A cannabis establishment must utilize a standard of weights and measures that is supported by the inventory tracking system to track all cannabis, concentrate and cannabis product. A scale used to weigh product prior to entry into the inventory tracking system shall be certified in accordance with 10 MRS, chapter 501.

A licensee shall maintain the security of the inventory tracking system, as follows:

1. A cannabis establishment licensee must train and authorize any new inventory tracking system users before they may access inventory tracking system or input, modify or delete any information in the inventory tracking system.
2. A cannabis establishment licensee must cancel any inventory tracking system administrators and inventory tracking system users from their associated inventory tracking system accounts once any such individuals are no longer employed by the licensee or at the licensed premises.
3. A cannabis establishment licensee is accountable for all actions employees take while logged into the inventory tracking system or otherwise conducting cannabis, cannabis concentrates and cannabis product inventory tracking activities.
4. Each individual user is also accountable for all of his or her actions while logged into the inventory tracking system or otherwise conducting cannabis, cannabis concentrates or cannabis product inventory tracking activities, and shall maintain compliance with all relevant laws.
5. Each individual user shall only log activities in the inventory tracking system under the user’s own unique inventory tracking system user account.

A cannabis establishment may use separate software applications to collect information to be used by the business, including secondary inventory tracking or point of sale systems.

1. A licensee must ensure that all relevant inventory tracking system data is accurately transferred to and from the inventory tracking system for the purposes of reconciliations with any secondary systems.
2. A cannabis establishment must preserve original inventory tracking system data when transferred to and from a secondary application(s). Secondary software applications must use the inventory tracking system data as the primary source of data and must be compatible with updating to the inventory tracking system.

4.1.3 Conduct While Using Inventory Tracking System.

A cannabis establishment and its designated inventory tracking system administrator(s) and inventory tracking system user(s) shall enter data into the inventory tracking system that fully and transparently accounts for all inventory tracking activities and authorized transfers. Both the cannabis establishment and the individuals using the inventory tracking system are responsible for the accuracy of all information entered into the inventory tracking system. Any misstatements or omissions may be considered a major license violation affecting public safety.

Individuals entering data into the inventory tracking system shall only use that individual’s inventory tracking system account.

4.1.4 Procedures for Inventory Tracking System Temporary Outages. If at any point a cannabis establishment loses access to the inventory tracking system for any reason:

The cannabis establishment shall immediately notify the Department and shall keep and maintain comprehensive records detailing all cannabis, cannabis concentrates and cannabis product tracking inventory activities that were conducted during the loss of access;

Once access is restored, all cannabis, cannabis concentrates and cannabis product inventory tracking activities that occurred during the loss of access must be entered into the inventory tracking system and the Department shall be notified that access has been restored;

A cannabis establishment must document when access to the system was lost, the cause of system loss and when it was restored; and

Unless permitted in writing by the Department, a cannabis establishment shall not transport or receive any cannabis, or cannabis product to or from another cannabis establishment until such time as access is restored and all information is recorded into the inventory tracking system.

In the event of a statewide or regional outage of the Department’s inventory tracking system that is expected to last more than 24 hours, the Department will promptly notify licensees of such outage and any interim recordkeeping procedures or requirements for the duration of the outage.

4.1.5 System Notifications.

A cannabis establishment must monitor all compliance notifications from the inventory tracking system. The licensee must resolve the issues detailed in the compliance notification in a timely fashion. Compliance notifications shall not be dismissed in the inventory tracking system until the cannabis establishment resolves the compliance issues detailed in the notification.

A cannabis establishment must take appropriate action in response to informational notifications received through the inventory tracking system including but not limited to notifications related to enforcement alerts and other pertinent information.

4.1.6 Lawful Activity Required. Proper use of the inventory tracking system does not relieve a licensee of its responsibility to maintain compliance with all laws, rules and other requirements at all times.

4.1.7 Inventory Tracking System Procedures Must Be Followed. A cannabis establishment must utilize the inventory tracking system in conformance with this rule and inventory tracking system procedures, including but not limited to:

Properly indicating the creation of a harvest batch or production batch including the assigned harvest batch or production batch number;

Accurately identifying the cultivation rooms where each plant is located on the licensed premises;

Accurately identifying when inventory is no longer on the licensed premises or is part of an authorized transfer;

Properly indicating that a test batch is being used as part of achieving process validation;

Accurately recording all remediation steps taken to remediate any batches of cannabis or cannabis products that fail mandatory testing;

Properly indicate test results from a cannabis testing facility, as applicable;

Accurately indicating the inventory tracking system item category for all cannabis and cannabis products;

Accurately recording, as applicable, the actual wholesale or retail price of all cannabis and cannabis products sold or otherwise transferred; and

Accurately including a note explaining the reason for any destruction of cannabis and/or cannabis products, and reason for any adjustment of weights to inventory tracking system packages.

4.2 - Transportation

4.2.1 Transport Manifest. A transport manifest, generated by the tracking system, is required for all authorized transfers of cannabis or cannabis products, including samples of cannabis, cannabis concentrate and cannabis products for mandatory testing, to another licensee. The transport manifest does not take the place of a chain-of-custody form that may be required of the licensee. Transport authorized by this rule shall be by motor vehicle only.

The licensee transporting cannabis or cannabis products including samples for mandatory testing is responsible for entering all required information in the tracking system for the generation of a transport manifest, including without limitation, the following information:

1. The name, contact information, licensed premises address and license number of the licensee transporting the cannabis or cannabis products;
2. The name, contact information, licensed premises address and license number of the licensee receiving the transported cannabis;
3. Product name and quantities (by weight or unit) of all cannabis and/or cannabis product, including samples, contained in each transport;
4. The date of transport and approximate time of departure;
5. Arrival date and estimated time of arrival;
6. Delivery vehicle make and model and license plate number;
7. Name and signature of the licensee or individual identification card holder and their identification card number accompanying the transport;
8. Name and signature of the licensee or individual identification card holder and their identification card number receiving the authorized transfer; and
9. Damaged or refused cannabis or cannabis products being returned to the original seller, in the case of samples of cannabis, cannabis concentrate or cannabis products for mandatory testing collected by a sample collector, the sample collector will return any samples rejected by a cannabis testing facility to the licensee from which the samples were collected;

A transport manifest must be prepared for each cannabis establishment that will receive cannabis or cannabis products. Each transport manifest must specify a single authorized destination.

A licensee may not void or change a transport manifest after departing from the originating premises.

A licensee must accept returns of any cannabis or cannabis products, including samples, that are refused by the intended recipient and appropriately track and dispose of the same.

4.2.2 Transport Manifest Exception. When cannabis or cannabis products are transferred by way of authorized transfer between two licenses controlled by the same licensee, and which do not require the transport of the cannabis or cannabis products outside the boundaries of the premises, then a licensee need not create three copies of the transport manifest. In these cases, the licensee must still follow all requirements of the tracking system.

4.2.3 Transportation of samples for research and development purposes. A licensee transporting samples of cannabis or cannabis products solely for the purpose of research and development must record such samples in the Department’s inventory tracking system and complete a paper transport manifest on forms provided by the Department. The licensee must make at least 2 copies of the transport manifest; one to be retained by the licensee transporting the samples for research and development testing, and one for the cannabis testing facility receiving the samples for research and development testing.

4.2.4 Sales Delivery Manifest. A sales delivery manifest, generated by the tracking system, is required for all deliveries of cannabis or cannabis products by a cannabis store licensee to an adult use consumer.

A cannabis store licensee transporting sales orders of adult use cannabis and cannabis products to adult use consumers is responsible for entering all required information in the tracking system for the generation of a sales delivery manifest, including without limitation, the following information:

1. The name, contact information, premises address and license number of the cannabis store licensee transporting the sales order of cannabis and/or cannabis products;
2. The name and residential delivery address of the adult use consumer that placed the request for delivery of the sales order;
3. Item name and quantities (by weight or count) of the cannabis and cannabis products ordered by the consumer;
4. The date and approximate time of departure;
5. The date and approximate time of arrival at the residential delivery address;
6. Delivery vehicle make, model and license plate number;
7. Name and individual identification card number of cannabis store employee delivering the sales order;
8. Government-issued identification number presented by the consumer receiving the delivery; and
9. An indication of any cannabis or cannabis products from the sales order that were not delivered to the consumer that requested the order, and the reason the items were not delivered.

A sales delivery manifest must be prepared for each sales order to be delivered to a consumer. A sales order shall only be transferred to the consumer who placed the request for the sales order with the cannabis store after the consumer’s age and identity are verified by the cannabis store employee making the delivery. Each sales delivery manifest must specify only one delivery destination. A cannabis store employee may complete delivery of multiple sales orders in one delivery trip.

A licensee may not void or change a sales delivery manifest after departing from the originating cannabis store premises.

A licensee must accept returns of any cannabis or cannabis products that are refused by the intended recipient and must appropriately track the same.

A licensee shall ensure that the sales delivery record for each delivery is completed in the inventory tracking system by 11:59 p.m. that same day in accordance with the requirements section 4.1.2.

4.2.5 Transportation of Cannabis and Cannabis Products. Cannabis and cannabis products, including samples, must be transported subject to the following requirements:

Cannabis or cannabis products may be transported only from one licensed cannabis establishment to another licensed cannabis establishment, or from a cannabis store licensee to an adult use consumer pursuant to a request for delivery of a sales order;

Samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must be transported by the licensee that collected the samples for mandatory testing from the site where the samples were collected to the cannabis testing facility(ies) performing the mandatory analyses, except that a cannabis testing facility may, at its discretion, offer a service to retrieve samples collected by self-samplers from the cannabis establishment where the samples were collected and transport those samples to the cannabis testing facility conducting the mandatory analyses;

Except as provided in Sections 4.2.2 and 4.2.3, all cannabis or cannabis products being transported must be included in, and accompanied by, a transport manifest or sales delivery manifest generated by the tracking system;

All cannabis or cannabis products, including sales orders for delivery to adult use consumers, being transported must be contained within an enclosed, locked area in the transport vehicle;

A cannabis products manufacturing facility, or as applicable to cannabis stores delivering sales orders, must provide adequate refrigeration for perishable cannabis product that will be consumed and shall utilize adequate storage facilities and transport methods. This shall include, but not be limited to, potentially hazardous food as defined under the State of Maine Food Code.

The licensee transporting the cannabis or cannabis products must:

1. Keep cannabis or cannabis products in transit shielded from public view;
2. Use a vehicle for transport that is: 1. Insured at or above the legal requirements in Maine; and 2. Equipped with, at a minimum, a functional, manufacturer-installed alarm system.
3. Ensure that only IIC holders are in any vehicle, including trailers, used in transport.

All cannabis or cannabis products must be contained within wholesale containers in the transport vehicle, except that cannabis and cannabis products to be delivered by a cannabis store to adult use consumers shall be packaged in accordance with Section 9 of this Rule.

Samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must be transported in appropriately labeled sample collection containers with tamper evident seals affixed.

An IIC holder transporting cannabis or cannabis products to another adult use establishment licensee must carry two copies of each transport manifest during the transportation of cannabis or cannabis products and must:

1. Give one copy to the receiving licensee following the verification of the transport manifest and transfer of the cannabis or cannabis products; and
2. Maintain a copy of the transport manifest that must be returned to the cannabis establishment for record-keeping purposes, except that a sample collector licensee will retain this copy of the transport manifest for the sample collector licensee’s records and is not required to return this copy to the cannabis establishment from which the samples were collected;

A cannabis store employee transporting sales orders of cannabis or cannabis products to adult use consumers must carry one copy of the sales delivery manifest for each order transported in the delivery vehicle. If the receiving consumer is unable or unwilling to accept receipt of some or all of the delivery order, or the cannabis store employee declines to transfer the delivery order:

1. The cannabis store employee shall note that the sales order, or a portion thereof, was retained on the sales delivery manifest, as well as the reason for retaining the sales order; and
2. The cannabis store employee shall return, that same day, the cannabis and/or cannabis products, along with the sales delivery manifest, to the cannabis store.

In the event of unforeseen exigent circumstances, a sample collector licensee that needs to store samples of cannabis, cannabis concentrate or cannabis products for mandatory testing overnight must store those samples:

1. Securely in a locked container or locked compartment in the locked vehicle;
2. In a manner that maintains at all times the recommended temperature range; and
3. The sample collector must provide contemporaneous written notice via e-mail to the Department’s Compliance Division regarding the nature of the exigent circumstances, the amount of cannabis or cannabis products being stored, the location, the license and IIC number of the person in possession of the cannabis or cannabis products and the expected duration of the circumstances necessitating storage in a vehicle.

Any vehicle transporting cannabis or cannabis products, including a cannabis store licensee making deliveries to adult use consumers, must travel directly from the shipping licensee to the receiving licensee, or adult use consumers, for cannabis store licensees making deliveries, and the licensee or individual identification card holder transporting cannabis or cannabis products must not:

1. Make any stops in between except: 1. to the destination listed on a transport manifest; to accommodate meal and rest periods required by law, or refueling; 2. in the case of an emergency, in which case the shipping licensee shall promptly report, or cause to be reported, the stop and the reasons for the stop to the Department and note the same on the transport manifest; or 3. in the case of a cannabis store licensee making deliveries of sales orders to multiple adult use consumers, to the private residences of each adult use consumer to whom the licensee is delivering sales orders;
2. Remove the cannabis or cannabis products from the vehicle until arrival at the destination;
3. Transfer cannabis or cannabis products to, nor store cannabis or cannabis products in any unlicensed premises; or
4. Travel with any persons not listed on the transport manifest.

A licensee or individual identification card holder must make a vehicle used for the transport of cannabis or cannabis products immediately available for inspection upon request of the Department.

Upon law enforcement stop or other contact all persons in the vehicle shall identify themselves with their Department-issued individual identification card and all transport manifests.

4.2.6 Receiving Party.

The cannabis establishment receiving cannabis or cannabis products pursuant to an authorized transfer must:

1. Verify the condition and quantity of cannabis or cannabis products included in the transport manifest;
2. Record in the tracking system and any other relevant business records any damaged or refused cannabis or cannabis products, or other discrepancies found between the cannabis or cannabis products delivered and the cannabis or cannabis products stated on the transport manifest;
3. Enter the received cannabis or cannabis products in the tracking system of the receiving party prior to end of business on the day that they are received; and
4. Provide an authorized signature and individual identification card number of the person receiving the authorized transport on the transport manifest belonging to the party transporting the cannabis or cannabis products, which must be kept by the transporting party for their records.

The cannabis store employee transporting sales orders of cannabis or cannabis products to adult use consumers must indicate on the sales delivery manifest whether the sales order, or a portion thereof, was retained by the cannabis store employee and the reason the order was rejected by, or otherwise not delivered to, the receiving consumer.

4.3 – Authorized Transfers

A licensee may make authorized transfers, within its licensed authority, of cannabis seeds, seedlings, immature plants, cannabis, cannabis concentrate, and cannabis products; as well as samples of the same, including trades samples, employee samples, and samples for mandatory testing or other testing; in accordance with the tracking system requirements of 28-B MRS, this Rule and all other applicable laws and rules

Section 5 - Advertising

5.1 - Definitions

For the purposes of this subsection, the following terms are defined as:

"Advertising" means publicizing the trade name of a licensee together with words or symbols referring to cannabis or publicizing the brand or logo of cannabis or cannabis products.

“Brand” means a name, term, design or symbol that identifies a licensee’s goods or services as distinct from those of other licensees.

"Handbill" is a flyer, leaflet or sheet that advertises cannabis.

“Logo” means a graphic mark, emblem or symbol used by a licensee to promote consumer identification and recognition of the licensee.

"Radio" means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite or internet programming. Radio includes any audio programming downloaded or streamed via the internet.

"Television" means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or internet programming. Television includes any video programming downloaded or streamed via the internet.

5.2 - Prohibitions

In the course of promoting its brand or the brand of another licensee, cannabis or cannabis products, a cannabis establishment or licensee may not advertise in a manner:

1. That is attractive to persons under 21 years of age;
2. That promotes irresponsible use;
3. That promotes activity that is illegal under Maine law;
4. That is contrary to or in direct violation of state or federal consumer protections; or
5. That otherwise presents a significant risk to public health and safety.

Advertising for a cannabis establishment may not:

1. Contain statements that are deceptive, false or misleading;
2. Display consumption of cannabis or cannabis products;
3. Include claims related to potency (beyond listing of cannabinoid content);
4. Depict activities or conditions considered risky when under the influence of cannabis, such as operating a motorized vehicle, boat or machinery, being pregnant or breastfeeding;
5. Contain any content that can reasonably be considered to target or is designed to appeal particularly to individuals under the age of 21, including but not limited to images of persons under 21 years of age, cartoons, toys or similar images and items typically marketed towards persons under 21 years of age or references to products that are commonly associated with persons under 21 years of age or marketed by persons under 21 years of age;
6. Contain any imitation of candy advertising;
7. Include the term “candy” or “candies”;
8. Encourage the transportation of cannabis or cannabis products across state lines or otherwise encourage illegal activity;
9. Assert that cannabis or cannabis products are safe because they are regulated by the Department or have been tested by a testing facility or otherwise make claims that any government agency endorses or supports cannabis;
10. Make claims that cannabis has curative or therapeutic effects;
11. Contain any health or physical benefit claims, including but not limited to health or physical benefit claims on labels or packaging; or
12. Contain material that encourages excessive or rapid consumption.

No licensee or agent of a licensee may:

1. Make any deceptive, false or misleading assertions or statements on any informational material, any sign or any document provided to a consumer;
2. Distribute handbills in public areas or on publicly owned property;
3. Utilize television, radio, print media or internet advertising in cases where there is a high likelihood it will reach person under the age of 21. Licensees or an agent of a licensee must take reasonable steps to ensure that any mass marketing or advertising does not reach persons under the age of 21, including, for example, using marketing information from the vendor or employing age verification techniques commonly used in internet advertising to avoid reaching persons under the age of 21;
4. Utilize vehicle wraps or advertising affixed to any motor vehicle, except that a licensee may sell or give away stickers, including bumper stickers, with a total surface area of less than 36 square inches;
5. Advertise within a prohibited distance of the property line of an existing public or private school, which shall be: 1. A distance of 500 feet or more as established by the municipality in which the advertising is located; 2. A distance of 500 feet or more as established by the Maine Land Use Planning Commission for advertising located in unorganized or deorganized areas; or 3. A distance of 1,000 feet if no other distance has been set by a municipality or the Maine Land Use Planning Commission.
6. Engage in advertising via marketing directed towards location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is 21 years of age or older and includes a permanent and easy opt-out feature; or
7. Permit use of the licensee’s trademarks, brands, names, locations or other distinguishing characteristics for third-party use on advertising in a manner that does not comply with this Section or any other statute, rule or regulation.

In the event a third-party has used licensee brand, trademarks, brands, names, locations or other distinguishing characteristics in an advertisement that does not comply with this Section or any other statute, rule or regulation, the licensee must immediately notify the Department, issue a cease-and-desist order to the third-party and pursue appropriate legal action.

5.3 - Websites

In addition to complying with the advertisement criteria and prohibitions outlined in Section 5.2, a cannabis establishment advertising on a website must utilize appropriate measures to ensure that individuals visiting the web page are over 21 years of age.

5.4 - Required Statements

A licensee must include the following statements, either in print or audio, on all print, television, radio and internet advertising in font size legible to the viewer or at a volume and speed that is readily understandable by the average listener:

"For use only by adults twenty-one years of age and older.”

The license number of the cannabis establishment.

5.5 – Branding and Logos

A licensee may utilize a brand name or brand names and a logo or logos for the marketing, advertising or other promotion of the licensee’s business, cannabis or cannabis products, provided that the use of the brand name or logo in advertising, marketing, signage, non-cannabis items (such as clothing, lighters or stickers), packaging and labeling does not violate the requirements of this rule. Branding and logos appropriate for use on marketing and advertising may not be acceptable for inclusion on packaging and labeling required on all cannabis and cannabis products in accordance with section 9 of this rule.

5.6 - Objectionable and Non-Conforming Advertising

The Department reserves the right to take action, including the use of punitive measures, against any licensee who fails to comply with the advertising provisions of this rule, including, without limitation, specifying a period of time by which the licensee shall cease the non-compliant advertising and remove any advertising still being published or displayed.

Section 6 – Trade and Employee, and Mandatory Sampling

6.1 - Trade Samples

6.1.1 Regulation of Trade Samples. Licensees may not provide samples of seeds, seedlings, immature cannabis plants, mother plants or mature cannabis plants to other licensees. As authorized in this section, trade samples may be provided only by cultivation facilities, with the exception of nursery cultivation facilities, and product manufacturing facilities and:

Must be provided solely for the purposes of business to business marketing;

May not be sold or otherwise provided for payment or consideration, including swapping samples among licensees;

Must be conveyed by way of authorized transfer in accordance with all tracking requirements;

Must be packaged and labeled in accordance with Section 9 of this rule;

Must be placed in exit packaging in accordance with Section 9 of this rule;

May not be consumed on the premises of the licensee providing or receiving the sample;

May not be sold or conveyed to another licensee or consumer; and

May not be provided for any payment or consideration in contravention of sales and excise tax requirements.

6.1.2 Cultivation Facilities. Cultivation facilities, with the exception of nursery cultivation facilities, may provide trade samples of cannabis grown at the facility to licensed products manufacturing facilities or cannabis stores.

6.1.3 Products Manufacturing Facilities. Products manufacturing facilities may provide trade samples of cannabis products to licensed cannabis stores in accordance with this subsection.

6.1.4 Trade Sample Limits. No samples of cannabis or cannabis products shall be permitted to be sold or otherwise transferred or conveyed consumers or to other licensees, except as outlined in Section 6.1.1. A licensee is limited to providing the following aggregate amounts of trade samples to an authorized individual recipient licensee in a calendar month period:

Edible containing products containing less than five grams of THC, which is easily divisible into servings of 10 mg of THC or less;

Cannabis concentrate containing five grams of THC; and

Two- and one-half ounces of cannabis.

6.2 - Employee Samples

6.2.1. Employee Sampling. A licensee may provide samples of cannabis and cannabis products to its employees for the purposes of research and development or employee education. As authorized in this section, employees of a cultivation facility, products manufacturing facility or a cannabis store licensee may be provided with samples of cannabis or cannabis products and:

Under no circumstances may an employee be required to accept or consume samples from a licensee;

Such samples must have passed all mandatory testing and be provided solely for the purpose of research and development of cultivars of cannabis or cannabis products not currently sold by licensee to another licensee; or in the case of a cannabis store licensee, for the purpose of providing education to its employees for the purpose of providing information to consumers regarding cannabis or cannabis products sold by the licensee;

Such samples must be accounted for in the Department’s inventory tracking system;

Must be packaged and labeled in accordance with Section 9 of this rule;

Must be placed in exit packaging in accordance with Section 9 of this rule;

May not be consumed on the premises of the licensee by whom the employee is employed;

May not be sold or conveyed to any licensee, consumer or employee other than the employee identified in the Department’s inventory tracking system; and

May not be provided for any payment or consideration in contravention of sales and excise tax requirements.

6.2.2 Employee Sampling Limits. No samples of cannabis or cannabis products shall be permitted to be sold or otherwise transferred or conveyed to employees or to other licensees, except as outlined in Section 6. A licensee is limited to providing each authorized individual recipient employee no more than two and one half ounces of a combination of cannabis and cannabis concentrate, that includes no more than 5 grams of cannabis concentrate, in a 90 day period. A licensee may not provide any authorized individual recipient employee with a package of edible cannabis product that contains more than 100 mg of THC, which must be easily divisible into servings of 10 mg of THC or less.

6.3 - Samples for Mandatory Testing or Research and Development

6.3.1. Authorized Collection of Samples. In accordance with 28-B MRS §§604 and 604-A, all samples for mandatory testing under this Rule must be collected by:

An employee of the testing facility;

A licensed sample collector; or

A self-sampling licensee, collecting samples of cannabis or cannabis products cultivated, manufactured or otherwise produced by that licensee in compliance with all requirements of this Rule.

6.3.2. Collection by Cannabis Testing Facilities or Sample Collectors. An employee of a cannabis testing facility or a sample collector must collect samples of cannabis or cannabis products in compliance with:

Sample collection, transport and receipt recordkeeping requirements;

The Department-required sampling standard operating procedures;

The Department-required Best Practices Guide;

The requirements and restrictions of 28-B MRS §604; and

This rule.

6.3.3. Collection by Self-Sampling Licensees. A self-sampling licensee may collect samples of cannabis or cannabis products cultivated, manufactured, or otherwise produced or sold by that licensee if the licensee has submitted all required documentation to the Department and in compliance with:

Sample collection, transport and receipt recordkeeping requirements;

The Department-required sampling standard operating procedures;

The Department-required Best Practices Guide;

The requirements and restrictions of 28-B MRS §604-A; and

This rule.

6.3.4. Required Documentation and Record Keeping. An adult use cannabis cultivation, manufacturing, or cannabis store licensee requesting testing by a cannabis testing facility must indicate in its request for testing whether the requested testing is for mandatory testing purposes as required by this Rule or for research and development purposes. The licensee must indicate in writing, prior to collection of the samples for testing, whether such testing is for mandatory testing purposes or for research and development purposes.

Pursuant to 28-B MRS §602(2), a licensee must maintain a record of all mandatory testing conducted at the request of the licensee that includes at a minimum:

1. A description of the cannabis, cannabis concentrate or cannabis product submitted for mandatory testing;
2. The identity of the testing facility conducting the mandatory testing; and
3. The results of any and all mandatory testing conducted at the request of the licensee.

Section 7 – Testing

A licensee may not sell or transfer adult use cannabis or an adult use cannabis product to a cannabis store licensee for sale to a consumer under 28-B MRS, chapter 1 and this Rule unless the cannabis or cannabis product has been tested pursuant to this Rule and 18-691 CMR, Ch. 5, and mandatory testing has demonstrated that the cannabis or cannabis product does not exceed the maximum level of allowable contamination for any contaminant that is injurious to health and for which testing is required. The Department may temporarily waive mandatory testing requirements under this section for any contaminant or factor for which the Department has determined that there exists no licensed testing facility in the State capable of and certified to perform such testing.

7.1 Commencement of Mandatory Testing.

The Department will not be requiring mandatory testing for pesticides (insecticides, fungicides, herbicides, acaricides, plant growth regulators, disinfectants, etc.) until December 2022. The Department may, at any time, require immediate mandatory testing for any analyte required by this Rule or any other analyte reasonably suspected to be a health hazard or safety threat, to ensure public health and safety.

7.2 Mandatory Testing and Additional Analysis.

The following tests are mandatory for all cannabis or cannabis products, except seedlings, immature cannabis plants and seeds, in final form prior to being sold to a cannabis store for sale to a consumer in accordance with this section. A licensee may choose whether to conduct some tests, as indicated below, before the cannabis or cannabis product is in its final form, however, the licensee that transfers cannabis or cannabis products to a cannabis store for sale to a consumer shall ensure that every required test is conducted in accordance with this section prior to transfer to the cannabis store licensee. The following tests are mandatory for all cannabis and cannabis products:

1. Filth and foreign material. Any visible contaminant, including without limitation, hair, insects, feces, mold, sand, soil, cinders, dirt, packaging contaminants and manufacturing waste and by-products.
2. Residual solvents, poisons and toxins. Acetone, acetonitrile, butane, ethanol, ethyl acetate, ethyl ether, heptane, hexane, isopropyl alcohol, methanol, pentane, propane, toluene, total xylenes (m, p, o-xylenes), 1,2-dichloroethane, benzene, chloroform, ethylene oxide, methylene chloride, trichloroethylene and any others used. A licensee is not required to analyze for residual solvents and processing chemicals in dried flower, kief, hashish or cannabis products manufactured without chemical solvents. A licensee is not required to analyze an orally-consumed tincture containing alcohol for residual ethanol. A licensee is not required to test a cannabis product for residual solvents, poisons and toxins if all cannabis concentrate used to make the cannabis product has previously passed mandatory testing for residual solvents.
3. Pesticides (insecticides, fungicides, herbicides, acaricides, plant growth regulators, disinfectants, etc.) Pesticides listed in Table 6.8-A of the Rules for Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5. A licensee is not required to test a cannabis concentrate or a cannabis product for pesticides, fungicides, insecticides and growth regulators if all cannabis flower and/or trim used to make the cannabis concentrate or cannabis product has previously passed mandatory testing for pesticides, fungicides, insecticides and growth regulators.
4. Other harmful chemicals (Metals). Cadmium (Cd), lead (Pb), arsenic (As), mercury (Hg). A licensee is not required to test a cannabis product for the other harmful chemicals listed herein if the cannabis concentrate used to make the cannabis product has previously passed mandatory testing for the other harmful chemicals listed herein.
5. Dangerous molds and mildew. Total yeast and mold, and for any cannabis or cannabis product that fails an initial test for total yeast and mold, mycotoxins including aflatoxins (B1, B2, G1, and G2) and ochratoxin A.
6. Harmful microbes. Total viable aerobic bacteria, total coliforms, Enterobacteriaceae, Shiga toxin-producing E. coli (STEC) and Salmonella (spp.).
7. THC potency, homogeneity and cannabinoid profiles. THC and any other cannabinoid to be referenced in labeling or marketing materials.
8. Water activity. Testing for water activity is mandatory for solid and semi-solid edible cannabis products that do not require preservation by other means (e.g. refrigeration) and for cannabis plant material that is dried and prepared in its final form of intended use and that is to be sold or transferred by a cultivation facility or products manufacturing facility to a cannabis store.

A licensed cultivation facility, licensed manufacturing facility, licensed cannabis store may submit for additional analysis samples of cannabis for research and development purposes, but such testing shall not satisfy the mandatory testing requirements of this Rule.

The Department shall publish a Best Practices Guide that includes a sampling plan and preservation instructions appropriate to each matrix type. All cannabis testing facilities, all sample collectors and any self-sampling licensee collecting samples for mandatory testing must comply with the Department-required Best Practices Guide.

A licensee collecting and transporting samples for mandatory testing must comply with all recordkeeping requirements regarding sample collection, sample transport and sample receipt in accordance with this Rule and any instructions regarding sample collection, sample transport and sample receipt provided to the licensee by the cannabis testing facility(ies) conducting the mandatory analyses.

The Department shall publish standard operating procedures for sample collection which must be used by any licensee collecting samples for mandatory testing.

A licensee may sell or furnish to a cannabis store for sale to a consumer cannabis or a cannabis product without submitting it for testing if:

1. The cannabis or cannabis product in its final form has previously undergone all required testing at the direction of another licensee or licensees as evidenced by a certificate of analysis, or in the case of cannabis concentrate or cannabis products that were tested for some analytes prior to final form, as evidenced by the certificates of analysis for testing done in accordance with the requirements of subsection A above;
2. The previous testing demonstrated that the cannabis or cannabis product does not exceed the maximum level of allowable contamination for any contaminant that is injurious to health and for which testing is required;
3. The mandatory testing process and the test results for the cannabis or cannabis product are documented in a certificate of analysis issued pursuant to a request for mandatory testing. A certificate of analysis for non-mandatory testing for research or development purposes does not satisfy this requirement; and
4. The cannabis or cannabis product has been appropriately tracked in the inventory tracking system, and the cannabis or cannabis product has not been altered in any way, including any further processing or manufacturing, other than packaging and labeling of the cannabis or cannabis product for retail sale, following the issuance of the certificate(s) of analysis indicated in sub-paragraph 1 above.

7.3 Reporting.

If a sample’s result exceeds an action level as required by 18-691 CMR, Ch. 5, the cannabis testing facility must report in the inventory tracking system and the certificate of analysis that the sample failed the mandatory test for which the result exceeds the action level, and the cannabis testing facility must report that the sample failed mandatory testing in general unless otherwise provided for in this Rule or 18-691 CMR, Ch. 5.

1. In the event a cannabis testing facility determines that a sample has failed testing, the entity that submitted the sample may remediate the batch in accordance with section 7.4 before the batch is re-tested.
2. The results of failed mandatory tests must be reported to both the Department and the entity that submitted the sample.
3. The cannabis testing facility is not required to report to the Department the results of any tests if the requester notifies the cannabis testing facility in advance that the testing is solely for research development purposes and agrees not to use the results to satisfy any mandatory testing requirements.

If a sample passes testing, the cannabis testing facility must, within one business day from issuance of final QC review, enter “pass” into the inventory tracking system for the batch from which the sample came. The batch is then released for distribution to a consumer.

7.4 Retesting and remediation of batches that fail mandatory testing. If a cannabis testing facility determines that a batch of cannabis or cannabis product fails mandatory testing, the cannabis testing facility must promptly report to the licensee and the Department that the sample failed mandatory testing. In accordance with this section, the licensee that submitted the sample may choose to have the batch retested without remediating the failed batch, or may remediate the failed batch and then submit samples for retesting.^[3] Batches of cannabis and cannabis products that have failed mandatory testing for pesticides and heavy metals may not be remediated but may be retested in accordance with this section. Batches of cannabis and cannabis products that passed mandatory testing may not be retested in order to enhance the results indicating that the sample passed for all tested analyte categories.

Batches of cannabis and cannabis products that have failed mandatory testing may be retested without remediation. A licensee seeking retesting of batch that failed mandatory testing without remediation shall submit two samples from the batch that failed mandatory testing to the same cannabis testing facility that issued the initial failed test result.

1. Both samples submitted for retesting must pass all required testing required for any analyte that failed initial mandatory testing. 1. Batches of cannabis or cannabis products that fail initial mandatory testing for yeast or mold must pass mandatory testing for total yeast and mold and mycotoxins upon retesting.
2. If either sample submitted for retesting fails any required test for any analyte that failed initial mandatory testing, the batch of cannabis flower or trim may be transferred to another licensee for extraction following a failed retest and subsequently retested in accordance with Section 7.4(B)(2) below.
3. If either sample submitted for retesting fails any required test for any analyte that failed initial mandatory testing, the batch cannabis concentrate or cannabis products may not be remediated or retested and must be destroyed.

Batches of cannabis or cannabis products that have failed mandatory testing may be remediated and shall be retested following remediation. A licensee may attempt to remediate any batch that fails mandatory testing, except batches that fail due to heavy metals or pesticide contamination. A licensee may attempt to remediate the batch at the licensee’s cannabis establishment or the licensee may transfer the failed batch to another licensee for remediation. Batches of cannabis flower or trim that have failed mandatory testing may not be remediated in a manner that involves the combination of the batch that failed mandatory testing with a batch, or batches, of cannabis flower and/or trim that has not been tested or that has passed mandatory testing.

1. If a failed batch is remediated using a remediation method that does not change the cannabis or cannabis product into a different matrix of cannabis or cannabis product (e.g. remediation that does not change cannabis flower or trim into cannabis concentrate, or remediation that changes cannabis concentrate into a cannabis product), then the licensee must submit two samples from the remediated batch to the same cannabis testing facility that issued the initial failed test result. 1. Both samples submitted for retesting must pass all required testing required for any analyte category that failed initial mandatory testing. 1. Batches of cannabis or cannabis products that fail initial mandatory testing for yeast or mold must pass mandatory testing for total yeast and mold and mycotoxins upon retesting. 2. If either sample submitted for retesting fails any required test for any analyte category that failed initial mandatory testing, the batch of cannabis or cannabis products may be remediated in accordance with this section or destroyed.
2. If a failed batch is remediated using a remediation method that changes the cannabis or cannabis product into a different matrix of cannabis or cannabis product, then the licensee must submit one sample from the remediated batch to the cannabis testing facility that issued the initial failed test result. 1. The sample from the remediated batch must pass all mandatory testing required for the cannabis or cannabis product in the matrix it is in after remediation, including any tests previously passed, if applicable. 2. If the remediated batch, that is in a new matrix, fails mandatory testing, the failed mandatory test is treated as an original failed mandatory test and the remediated batch may be retested or remediated in accordance with this section.

A licensee that remediates any failed batch must appropriately record all remediation steps and processes in the Department’s inventory tracking system.

A licensee must ensure at all times while submitting samples for testing or retesting, or transferring batches for remediation, that all cannabis and cannabis products are appropriately tracked in the Department’s inventory tracking system in accordance with this rule.

A licensee must take action to retest, remediate or destroy a batch of cannabis or cannabis products within 30 days of receiving notice from the cannabis testing facility of the initial failed test result. If the licensee does not record an action on the failed batch within 30 days, the Department may issue an Order of Destruction.

7.5 Department action following issuance of a failed mandatory test result by a cannabis testing facility.

The Department may issue an Order of Destruction to a licensee that has not taken action to retest, remediate or destroy a batch of cannabis or cannabis products that failed mandatory testing within 30 days of receiving notice from the cannabis testing facility of the initial failed test result. Unless otherwise indicated by the Department, an Order of Destruction under this subsection shall be considered final agency action and notice will be given to the licensee of the licensee’s right to appeal, consistent with the Maine Administrative Procedures Act, 5 MRS, Chapter 375. The notice shall contain:

The batch number of the cannabis or cannabis products to be destroyed;

The method of destruction directed by the Department, if any;

Any proof of destruction required by the Department; and

The date by which destruction must occur and the Department must receive notice.

Section 8 - Waste Management

All wastes must be managed in accordance with federal, state and local requirements. Applicants should contact the Department of Environmental Protection for guidance on applicable regulations.

8.1 - Hazardous Waste

Discharges of hazardous waste or other matter in any quantity and under any circumstances must be reported to the Department and in accordance with this Section.

Licensees must immediately report discharges to the Department of Public Safety (State Police) unless exempted pursuant to Chapters 800 and 850 of the Department of Environmental Protection’s regulations:

1. Licensees must call 1-800-452-4664 or 207-624-7000 to notify the Department of Public Safety of a discharge.
2. Licensees are not required to notify the Department of Environmental Protection.

Licensees must also report any discharges of hazardous matter exceeding the federal reportable quantities in Appendix A to Chapters 800 and 850 of the Department of Environmental Protection’s regulations as follows:

1. The licensee must call the National Response Center at 1-800-424-8802; and
2. If the spill goes beyond the boundary of the facility, the licensee must call the local fire department and the local community emergency coordinator.

8.2 - Cannabis Waste

In addition to any other provisions of 28-B MRS, this rule or other applicable laws or rules, non-hazardous cannabis wastes shall be managed in accordance with the following:

A cannabis plant, cannabis, trim and other plant material in itself is not considered hazardous waste unless it is toxic, flammable or a listed waste subject to regulation under Department of Environmental Protection rule Chapter 850.

Non-hazardous cannabis waste that is to be disposed of must be rendered unusable prior to leaving a cannabis establishment by one of the following methods:

1. Grinding and incorporating the cannabis waste with other ground materials so the resulting mixture is at least fifty percent non-cannabis waste by volume, including: 1. Food waste; 2. Yard waste; or 3. Other wastes approved by the Department.
2. Using another method approved by the Department and recorded in the licensee’s facility plan of record before implementation.
3. Sample collector licensees may not dispose of cannabis waste. A sample collector licensee who is in possession of samples of cannabis or cannabis products to be wasted must return such samples of cannabis, cannabis concentrate or cannabis products to the licensee from which the samples were collected.

Composting of cannabis wastes may be subject to the Department of Environmental Protection’s Solid Waste Management rules: Composting Facilities rule, 06-096 C.M.R., chapter 410.

8.2.1 Cannabis Waste Exceptions. The following materials shall not be considered to be cannabis waste requiring treatment to be rendered unusable, provided that they are completely free of all cannabis flowers and leaves with any visible trichomes, and may be disposed of, provided that they are non-hazardous, in accordance with standard waste disposal regulations:

Root balls, soil or growing media;

Stalks of cannabis plants; and

Leaves and branches removed from cannabis clones, seedlings and cannabis plants.

8.3 - Wastewater

Wastewater generated during the cultivation or manufacturing of cannabis must be disposed of in compliance with all applicable state and local laws and regulations.

8.4 – Reducing Packaging Waste

A licensee may reuse containers and exit packaging, and may permit a consumer to use their own reusable exit packaging, in accordance with the packaging and labeling requirements of Section 9 of this rule. A licensee may charge a reasonable fee to a consumer for any reusable containers or exit packaging and a licensee may offer a refund of such fees to consumers who return containers or exit packaging that can be reused or who use their own reusable exit packaging. A licensee must ensure that the reused packaging is clean and does not impart any deleterious substances to the cannabis or cannabis products contained therein.

Nothing in this section shall be construed to exempt a licensee from compliance with the packaging and labeling requirements of Section 9 of this rule.

Section 9 - Packaging and Labeling

All cannabis, cannabis concentrate and cannabis products received by a cannabis store from an authorized transfer, and offered for retail sale at a cannabis store must be packaged and labeled, including all required health and safety warnings, in accordance with the following section, in addition to any other provisions of this rule, 28-B MRS and any other applicable laws and rules.

A licensee may not label or package for sale adult use cannabis or an adult use cannabis product under this rule unless the cannabis or cannabis product has passed all mandatory testing required by this rule and the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5.

9.1 - General Packaging and Labeling Requirements for Retail Sale

9.1.1 General Packaging for Retail Sale Requirements. All cannabis or cannabis products must be packaged in containers that:

Are fully enclosable;

Are resealable;

Protect the packaged item from contamination; and

Do not impart any toxic or deleterious substance to the packaged item.

9.1.2 General Labeling for Retail Sale Requirements. In addition to any other requirements pursuant to this rule and 28-B MRS, all cannabis or cannabis product labels must comply with the following:

All required information must be printed directly on, or on a label or sticker affixed directly to, the marketing layer.

Labeling text on any marketing layer must be no smaller than size 6 font or 1/12 inch.

All information included in the labeling requirements, or any other provision of this rule, must be clearly written or printed and in the English language. In addition to the required English label, licensees may include an additional, accurate foreign language translation on the label that otherwise complies with this rule.

All information included in the labeling requirements, or any other provision of this rule, must be displayed on the marketing layer and must be unobstructed and conspicuous. A cannabis establishment licensee may affix multiple labels to the marketing layer, provided that none of the information required by this rule is obstructed.

The cannabis store that conducted the retail sale of the cannabis, cannabis concentrate or cannabis product must ensure that its license number is affixed to the marketing layer of the cannabis, cannabis concentrate or cannabis product, either on the label or on a separate sticker affixed to the item before placing the item in an exit package.

The label must include the full inventory tracking system-generated identification number of the final batch from which the testing sample for the mandatory testing of the contents of the cannabis or cannabis product was taken.

The label must include the following statement regarding mandatory test results: “Passed mandatory testing”.

The label’s statement of net contents must identify the net weight of the cannabis, cannabis concentrate or cannabis product prior to its placement in the container, using a standard of measure compatible with the tracking system.

The Department-approved universal symbol, as made available by the department, must appear on the front or most predominantly displayed area of the marketing layer and must be:

1. No smaller than ¹/₂ inch by ¹/₂ inch;
2. Placed on a white background and the interior of the icon must remain white;
3. Maintained in the form provided to the licensee and may not be modified, recreated, stylized, stretched or otherwise distorted;
4. Reproduced using the black and red color scheme published by the Department; and
5. Displayed on a white or light-colored background.

The label must include, as a production date:

1. For cannabis and cannabis products consisting in whole or in part of cannabis flower or cannabis trim, the date of the harvest batch; or
2. For cannabis concentrate or cannabis products that were manufactured, the date on which the production batch was created.

Required information may be stated in a peel-back accordion style, expandable, extendable or layered label, so long as the label can be easily identified by a consumer as containing important information.

The label must state cannabinoid content, and, if applicable, gases, solvents and chemicals used in cannabis extraction. Statements regarding contaminants and use of solvents or absence thereof may not conflict with results reported in an approved cannabis testing facility’s Certificate of Analysis.

In addition to any other warning statements required for specific categories of cannabis products, all cannabis and cannabis products must carry the following warning statement in no smaller than 6-point font: “There may be health risks associated with the use of this product. There may be additional health risks associated with the use of this product for women who are pregnant, breastfeeding, or planning on becoming pregnant. Do not drive a motor vehicle or operate heavy machinery while using this product.”

9.1.3 General Labeling Prohibitions. The label for retail sale of cannabis, cannabis concentrate or cannabis products may not:

Depict a human, animal or fruit or the word “candy” or “candies” on the label of any marketing layer, container holding cannabis, cannabis concentrate or cannabis product or intermediate packaging;

Display any content on a container, marketing layer or intermediate packaging making any claims regarding health or physical benefits to the consumer;

Cause a reasonable consumer confusion as to whether the cannabis, cannabis concentrate or cannabis product is a trademarked product;

Violate any state or federal trademark law or regulation;

Include any false or misleading statements;

Obscure identifying information or warning statements;

Reasonably appear to target or appeal to individuals under the age of 21, including but not limited to, cartoon characters or similar images; or

Report information regarding the quality or potency of the enclosed product, except as reported by a testing facility, unless the label clearly indicates that testing regarding the claim is not required or conducted by a testing facility.

9.2 - Packaging and Labeling of Trade Samples

Along with all requirements pursuant to this rule and 28-B MRS, cannabis cultivation and cannabis products manufacturing establishments shall comply with the following minimum packaging and labeling requirements prior to authorized transfer of any trade sample to a licensed cannabis establishment.

Prior to authorized transfer, a trade sample must be placed in a container that is compliant with the packaging for retail sale requirements of this rule.

Prior to authorized transfer to a licensed cannabis establishment, every container containing a trade sample shall be affixed with a label that is compliant with the labeling for retail sale requirements of this rule.

Either the label affixed to the container or the marketing layer shall include the statement in a font that is bold: “Trade Sample. Not for Sale.”

9.3 - Packaging and Labeling for Retail Sale of Inhaled Cannabis Products

9.3.1 Retail Sale Packaging for Inhaled Cannabis Products. Prior to authorized transfer to a cannabis store, all inhaled cannabis products shall be packaged in accordance with the following:

The container must be fully enclosed on all sides, as follows:

1. If container is soft sided, it must be four mil or greater in thickness; or
2. If container has rigid sides, it must have a lid or enclosure that can be placed tightly and securely on the container.
3. The container must be child-resistant or must be placed into child-resistant exit packaging by the cannabis store at time of sale.
4. The container must be opaque or must be placed into opaque exit packaging by the cannabis store at time of sale.

The container must be tamper-evident:

1. If the container is soft sided, the opening must be sealed by some means in a manner which would indicate if the container had been opened or tampered with. The tamper evident indicating feature of the opening must not be resealable, and once opened must remain clearly evident that the package has previously been opened; or
2. If the container is rigid, the opening must contain a tamper evident seal, or the lid or enclosure must have an adhesive band or seal that once opened must remain clearly evident that the package has previously been opened.

The packaging must contain a marketing layer, on which required labeling information can be printed.

9.3.2 Labeling for Retail Sale Requirements for Inhaled Cannabis Products. In addition to Section 9.1.2 any other provisions of this rule and 28-B MRS, all inhaled cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

A statement, if applicable, that the packaging is not child-resistant;

The potency of inhaled cannabis products, expressed as:

1. The actual potency results for total THC and total CBD reported by a testing facility on the certificate of analysis; or
2. A range of percentages of total THC and total CBD that extends from the lowest percentage to the highest percentage for each cannabinoid listed that may be found in the inhaled cannabis product, so long as the lowest percentage and the highest percentage of total THC and total CBD do not differ by more than 20% of the lowest percentage stated; or
3. The percentage total THC and total CBD and based on the results of analysis reported by a testing facility and as the average percentage total THC and total CBD found in the inhaled cannabis product, so long as the actual percentage totals of the inhaled cannabis product does not vary by more than 15% higher or 15% lower than the potency statement stated on the label;
4. Except that if the testing facility reports that total CBD or total THC is “not detected” or “zero” (“0”), then the label may state “0” for those cannabinoids.

If applicable, a list of any solvent(s) used to produce any cannabis concentrate that was used in the manufacturing of the inhaled cannabis product;

If applicable, a list of all ingredients used to manufacture the inhaled cannabis product, including identification of the actual or potential presence of any major allergens contained in the cannabis concentrate in accordance with the Food Allergen Labeling and Consumer Protection Act of 2004, 21 U.S.C. §343 (2010), specifically milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat and soybeans; and

Net content, according to the following:

1. For inhaled cannabis products, net contents shall be stated in grams, except that inhaled cannabis products containing less than one gram of net content may state the net contents in milligrams.
2. Variance is allowed as follows: 1. For inhaled cannabis products composed primarily of cannabis flower or trim, the actual net contents by weight may be as much as 0.1 grams less. or 0.5 grams greater than the statement of net content on the label; 2. For inhaled cannabis products that are pre-rolled cannabis cigarettes, the actual net contents by weight may be as much as 5% less than or 15% greater than the statement of net content; 3. For inhaled cannabis products composed primarily of cannabis extract, the actual net contents by weight may be as much as 5% less or 10% more than the statement of net content.
3. Inhaled cannabis product labels may state the net contents in ounces in addition to stating the net contents in grams.
4. In determining the weight of cannabis concentrate in a cannabis product, the weight of any other ingredients combined with cannabis or cannabis concentrate to prepare the cannabis products may not be included.

9.4 - Packaging and Labeling for Retail Sale of Edible Cannabis Products

9.4.1 Retail Sale Packaging Requirements for Edible Cannabis Products. Prior to authorized transfer to a cannabis store, all edible cannabis products shall, unless otherwise specified, be packaged in child-resistant containers in accordance with 16 C.F.R. Part 1700 (2018) as follows:

For single-serving edible cannabis products:

1. Single-serving edible cannabis products must be placed into a child-resistant container that may or may not be resealable.
2. Single-serving edible cannabis products that are placed into a child-resistant container may be bundled into a larger marketing layer so long as the total amount of THC per marketing layer does not exceed 100 milligrams, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5.

For multiple-serving edible cannabis products:

1. Every multiple-serving edible cannabis product must be placed into a child-resistant container that is resealable or made of plastic four mil or greater in thickness and heat sealed with no easy-open tab, dimple, corner or flap, as to make it difficult for a child to open.
2. A multiple-serving edible cannabis product must not exceed 100 milligrams of total THC per multiple-serving container, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5.
3. The packaging shall clearly indicate the size of a serving if the edible product is not in a form that indicates a serving.

A single-serving tincture may contain no more than 10 milligrams of THC, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5, and must be placed into a child-resistant container that may or may not be resealable.

Single-serving cannabis drinks that do not contain more than 10 milligrams of THC, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5, may be packaged in:

1. A child-resistant container;
2. An aluminum or metal can with a stay tab mechanism opening; or
3. A bottle with a metal crown cork style bottle cap.

Multiple-serving cannabis drinks that contain more than 10 milligrams of THC but no more than 100 milligrams of THC, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5, must:

1. Be packaged in a child-resistant container compliant with 16 C.F.R. Part 1700 (2018) that has a resealing cap or closure; and
2. Include a measuring device such as a measuring cap or dropper with the package containing the cannabis-infused liquid edible product; hash marks on the bottle or package do not qualify as a measuring device.

Cannabis drinks packaged according to this section may be bundled into a larger marketing layer so long as the total amount of THC per marketing layer does not exceed 100 milligrams, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5.

The container must be tamper-evident or must be placed into tamper-evident exit packaging by the cannabis store at time of sale.

The container must be opaque or must be placed into opaque exit packaging by the cannabis store at time of sale.

9.4.2 Labeling for Retail Sale Requirements for Edible Cannabis Products. In addition to Section 9.1.2, any other provisions of this rule and 28-B MRS, ch. 1, all edible cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

Total contents of THC and CBD, stated in milligrams and for edible cannabis products containing at least 5 milligrams of THC, not more than 10% less or 10% greater than the actual THC and CBD content, and for edible cannabis products containing less than 5 milligrams of THC, not more than 20% less or 20% greater than the actual THC and CBD content, including:

1. The total contents of THC and CBD per serving unit; and
2. If the label is on the marketing layer of a package containing more than one serving unit, the total contents of THC and CBD contained within the entire package;

The serving size, which may contain no more than 10 milligrams of THC, except as permitted in Section 3.8.6 and 18-691 CMR, ch. 5;

The number of servings per container or marketing layer;

Total net weight of the edible cannabis product separate from the package and label;

A statement in font no smaller than 6 point: “This product contains cannabis. Keep away from children.”;

If applicable, a list of all ingredients used to manufacture the edible cannabis product, including identification of the actual or potential presence of any major allergens contained in the product in accordance with the Food Allergen Labeling and Consumer Protection Act of 2004, 21 U.S.C. §343 (2010), specifically milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat and soybeans;

A nutritional fact panel in accordance with 21 C.F.R. Part 101 (2018);

A statement in font no smaller than 6 point: “Effects of this product may not be felt for up to 4 hours.”; and

If applicable, a statement that the packaging is not tamper-evident.

9.5 - Packaging and Labeling for Retail Sale of Topical Cannabis Products

9.5.1 Retail Sale Packaging for Topical Cannabis Products. Prior to authorized transfer to a cannabis store, all topical cannabis products shall be packaged in a child-resistant container in accordance with the following:

Salves, creams, lotions and balms shall be packaged in a child-resistant container that has a resealing cap or closure compliant with 16 C.F.R. 1700 (2018).

Transdermal patches shall be packaged in a plastic four mil or greater in thickness and be heat sealed with no easy-open tab, dimple, corner or flap, as to make it difficult for a child to open.

The packing must be tamper-evident or must be placed into tamper-evident exit packaging by the cannabis store at time of sale.

The container must be opaque or must be placed into opaque exit packaging by the cannabis store at time of sale.

9.5.2 Labeling for Retail Sale of Topical Cannabis Products. In addition to Section 9.1.2, any other provisions of this rule and 28-B MRS, ch. 1, all topical cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

A potency statement for topical cannabis products stating the total content of THC and CBD in milligrams in the container, and for transdermal products the total content of THC and CBD in milligrams contained in each transdermal product;

A list of all ingredients in descending order of predominance by weight or volume as applicable;

The amount recommended for use at any one time;

The following warning statement: “For Topical Application – Do Not Eat or Smoke.”; and

If applicable, a statement that the packaging is not tamper-evident.

9.6 – Packaging and Labeling for Retail Sale of Cannabis Seeds

9.6.1 Retail Sale Packaging for Cannabis Seeds. Prior to authorized transfer to a cannabis store, or for nursery cultivation facilities, prior to authorized transfer to consumer, all cannabis seeds shall be packaged in accordance with this section. Packaging for cannabis seeds for sale to consumers shall:

Keep all cannabis seeds dry;

Prevent germination of the seeds in the packaging;

Not impart any deleterious substances into the cannabis seeds; and

Be exempt from the requirements that packaging be child resistant, tamper evident and opaque.

9.6.2 Labeling for Retail Sale of Cannabis Seeds. There is no mandatory testing required for cannabis seeds, therefore labels affixed to individual retail packages of cannabis seeds shall not contain information regarding test results, including without limitation cannabinoid content, potency or the absence or presence of contaminants. All cannabis seeds must clearly display the following information on the marketing layer of the package for retail sale:

The inventory tracking system package number for the package of cannabis seeds sold by the cannabis store or nursery cultivation facility licensee;

The license number of the cultivation facility where the cannabis seeds were propagated;

The license number of the cannabis store or nursery cultivation facility (if different from the cultivation facility that produced the seeds) that is offering the individual retail package for sale to consumers;

The net weight or the number of individual seeds in the package, a licensee may include either or both values on the label; and

The following statement: “For cultivation only by consumers 21 years of age or older.”

A licensee may include additional information regarding the contents of the individual retail packages of cannabis seeds, provided that such information does not conflict with this rule. A licensee may provide to consumers information on the limitations of home cultivation of cannabis for person use contained in 28-B MRS §1502.

9.7 - Packaging and Labeling of Samples Collected by a Licensee

9.7.1 Self-Samplers and Sample Collectors Must Contact Cannabis Testing Facility. Any licensee collecting samples for mandatory testing in accordance with 28-B MRS, subchapter 6, and Section 7.2 of this rule must contact the cannabis testing facility that will conduct the mandatory testing and comply with the cannabis testing facility’s specific recommendations regarding, without limitation:

Required sample collection tools and equipment based upon sample matrix type and mandatory tests required;

Required sample collection containers based upon sample matrix type and mandatory tests required;

Required sample transportation conditions based upon sample matrix and mandatory tests required;

A plan for sample receipt which includes any limitations on days or times when samples will be accepted by the cannabis testing facility; and

Any additional quality measures required by the cannabis testing facility to ensure sample integrity and prevent contamination of the licensee’s samples or the samples of other licensees.

All cannabis testing facility recommendations regarding sample collection will be recorded for every sampling event in the licensee’s sample collection records in accordance with Section 3.11 of this rule. Cannabis testing facility recommendations must align with the Department’s Best Practice Guide as applicable.

9.7.2 Self-Samplers and Sample Collectors Must Use Sample Collection Containers Required by Cannabis Testing Facility. A licensee collecting samples for mandatory testing must collect samples in accordance with the Department’s sample collection SOP and deposit the required sample increments in the sample collection containers required by the cannabis testing facility analyzing the samples. When all required sample increments are collected, the person collecting the samples must:

Affix a tamper evident seal to each sample container and must initial the seal. The seal must be initialed by another individual identification cardholder witnessing the sealing of the sample containers;

Ensure that the universal symbol is on every sample collection container, no smaller than ¹/₂ of an inch by ¹/₂ of an inch;

Ensure that each sample collection container has the following notice: “FOR TESTING PURPOSES ONLY”; and

Ensure that each sample collection container is accompanied by the appropriate label generated by the inventory tracking system required by the Department.

9.67.3 Self-Samplers, Sample Collectors and Cannabis Testing Facilities Must Comply with All Sample Collection Recordkeeping Requirements and Use the Department-required Sample Collection SOP and Best Practices Guide. A licensee must conduct all sample collection in accordance with the Department’s sample collection SOP and Best Practices Guide and must submit to the cannabis testing facility all information required by the cannabis testing facility’s quality system for each batch of cannabis or cannabis product sampled for mandatory testing. A licensee conducting sample collection for mandatory testing must comply with the sample collection recordkeeping requirements of this rule.

9.8 - Packaging and Labeling for Storage by a Cannabis Establishment

9.8.1 Storage Prior to Testing. Following samples being taken from a batch of cannabis, a licensee must:

Store the batch in one or more sealed containers enclosed on all sides, so as to prevent the cannabis or cannabis product from being tampered with or transferred or sold prior to test results being reported.

Affix to the container(s) in which the cannabis is stored a label including the following information:

1. The batch number; and
2. In bold, capital letters, no smaller than 12-point font, “PRODUCT NOT TESTED”; and

Report the transfer of the sample into the tracking system and the batch number being sampled.

9.8.2 Storage of Cannabis Not Labeled for Retail Sale. All cannabis or cannabis products stored on the licensed premise must be secured in a limited access area and tracked consistent with the inventory tracking rules.

9.8.3 Health and Safety Standards for Storage. Storage of cannabis and cannabis products shall be under conditions that will protect products against physical, chemical and microbial contamination, as well as against deterioration of any container.

Section 10 - Enforcement

10.1 - Department Enforcement Authority

10.1.1 Inspection of Cannabis Establishments and Premises. A cannabis establishment licensee must provide the Department, or agent thereof, access to inspect a cannabis establishment and premises at any time during the business hours stated on the facility plan of record of the cannabis establishment or during apparent activity. Licensees shall not deny entrance for inspection, upon demand and without notice required, during any business hours and other times of apparent activity, or at any other time upon reasonable notice. In any case, the licensee shall ensure there is an individual identification card holder at the cannabis establishment to accompany the agent of the Department during the inspection. Licensees shall permit staff or agents of the Department and employees or agents of local or state agencies with regulatory authority access to inspect the cannabis establishment and premises in accordance with the statutes, regulations and operating procedures employed by those regulatory bodies. If a licensee denies the agent of the Department access to a licensed premise, the Department may put an administrative hold on the cannabis establishment license and may impose fines, suspensions or revocation of that license.

10.1.2 Routine or Random Inspection or Audit of Sample Collection by Licensees. The Department may, with or without suspicion of infractions, conduct inspection or audit of any licensee’s sample collection practices in accordance with Section 10.5.2 of this rule.

10.1.3 Investigation. The Department may, as a result of a complaint filed with the Department, or as a result of its administration of the program, investigate suspected infractions by licensees to any provision of 28-B MRS or this rule. Infractions that may be investigated include, without limitation:

Failure to comply with facility plan of record;

Failure to properly report inventory in the inventory tracking system;

Unauthorized transfers of cannabis;

Failure to disclose or properly report changes to the record of officers, directors, managers, general partners or natural persons or business entities having a direct or indirect financial interest in the licensee or the nature of such direct or indirect financial interests;

Failure to comply with any conditions required by a municipality, town, plantation, township or county commission for approval of the license;

Use of prohibited pesticides in cultivation of cannabis;

Any violation of the rules and regulations as set forth by the Department; or

Any conduct by a cannabis establishment licensee not authorized by 28-B MRS or this rule.

10.1.4 Enforcement Actions.

The Department may take the following actions against licensees, alone or in combination, subject to the requirements of this Section:

1. Impose monetary penalties;
2. Restrict a license;
3. Suspend a license;
4. Revoke a license;
5. Accept the voluntary surrender of a license;
6. Confiscate or seize cannabis plants, cannabis or cannabis products;
7. Destroy cannabis plants, cannabis or cannabis products;
8. Recall cannabis or cannabis products; or
9. Accept the voluntary surrender of cannabis plants, cannabis or cannabis products.

The Department may revoke an individual identification card for any violation of 28-B MRS or this rule.

10.1.5 Procedures for Enforcement Actions.

The Department may, on its own initiative or on complaint and after investigation, initiate enforcement actions, notwithstanding any other criminal, civil or administrative proceedings against the licensee.

The Department will initiate an enforcement action with written notice to the licensee, which will include notice to the licensee regarding their right to a hearing pursuant to the Maine Administrative Procedures Act, Title 5, ch. 375, sub-ch. 4.

Enforcement actions require a finding of the following:

1. Any false or misleading statements to the Department;
2. Other violations by the licensee or by an agent or employee of the licensee of 28-B MRS or this rule;
3. Violations by the licensee or by an agent or employee of the licensee of the terms, conditions or provisions of the licensee’s license, including all licensing criteria required to be granted a conditional or active license; or
4. Inactivity at the licensed premises for a period of 1 year or more without reasonable justification, including without limitation death or illness of a licensee, fire, natural disaster, or building conditions outside of the licensee’s control.

Any final agency enforcement action or order by the Department after administrative hearing shall be made only on the basis of relevant evidence and shall be communicated in writing to the licensee, along with a notice of the licensee’s right to judicial review in the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

10.2 – Administrative Monetary Penalties

A monetary penalty imposed by the Department on a licensee pursuant to this subchapter may not exceed $100,000 per license violation. Penalties to be imposed on a licensee based upon specific categories of unauthorized conduct by the licensee, including major and minor license violations, as follows:

Not more than $100,000 per major license violation affecting public safety

Not more than $50,000 per other major license violation; and

Not more than $10,000 per minor license violation.

10.2.1 Major License Violations Affecting Public Safety

The Department may impose a fine of up to $100,000 for each major license violation affecting public safety.

Such violations include, but are not limited to:

1. Intentionally or recklessly selling cannabis or cannabis products containing any other federally controlled substance, including but not limited to opioids, stimulants or hallucinogens;
2. Intentionally or recklessly using prohibited agricultural chemicals that pose a threat to public health and concealing their use from the Department, other licensees or consumers;
3. Engaging in a deliberate pattern of 2 or more instances of marketing or selling cannabis plants, cannabis or cannabis products to individuals who are younger than 21 years old;
4. Intentionally destroying, damaging, altering, removing or concealing potential evidence of a violation under this subsection, attempting to do so or asking or encouraging another person to do so;
5. Misleading the Department for the purposes of involving a person with a disqualifying drug offense in the operation of a cannabis establishment;
6. Knowingly diverting cannabis or cannabis products to the illicit market;
7. Three or more instances of a licensee failing to have on the premises, at all times during business hours, as applicable, and periods of apparent activity, an individual identification card holder who is authorized to allow and cooperate with Department requests to inspect the premises;
8. Two or more instances of a licensee refusing to permit the Department to inspect the premises during business hours, as applicable, or periods of apparent activity;
9. Intentionally tampering with or interfering with mandatory testing processes, including sample collection, or the auditing thereof; or
10. Other conduct that shows willful or reckless disregard for health and safety.

10.2.2 Major License Violations

The Department may impose a fine of up to $50,000 for each other major license violation.

Such violations include, but are not limited to:

1. Deliberately making a false statement to the Department, the Maine Revenue Service, the Maine Land Use Planning Commission, or any law enforcement officer for the purpose of evading responsibility for any requirements of Titles 28-B or 36 of the Maine Revised Statutes, this rule, or the license;
2. Deliberately purchasing cannabis plants, cannabis or cannabis products from out of state or outside of the licensed and tracked adult use system;
3. Engaging in a pattern of reporting adult use cannabis plants, cannabis or cannabis products as medical cannabis for the purposes of avoiding taxation or regulation;
4. Selling cannabis plants, cannabis or cannabis products to anyone under the age of 18 by failing to take all necessary steps to verify age;
5. Allowing any individual under the age of 21 to engage in any cannabis-related activity.
6. Engaging in a pattern of selling or transferring cannabis plants, cannabis or cannabis products outside of the tracking system;
7. Supporting, facilitating or willfully or recklessly ignoring suspicious purchasing patterns that suggest a customer is in possession of illegal amounts of cannabis plants, cannabis or cannabis products or is diverting cannabis or cannabis products them to persons under 21 years of age or out of state;
8. Engaging in a deliberate pattern of minor license violations;
9. Intentionally destroying, damaging, altering, removing or concealing potential evidence of a violation that does not threaten public safety, attempting to do so or asking or encouraging another person to do so;
10. Two instances of a licensee failing to have on the premises, at all times during business hours, as applicable, and periods of apparent activity, an individual identification card holder who is authorized to allow and cooperate with Department requests to inspect the premises;
11. Refusal to permit the Department to inspect the premises during business hours, as applicable, or periods of apparent activity; and
12. Other conduct that shows a pattern of willful or reckless disregard for the tracking system requirements, sales tax obligations, excise tax obligations, mandatory testing obligations, facility requirements or other provisions of 28-B MRS, 36 MRS, this rule or other laws or rules.

10.2.3 Minor License Violations

The Department may impose a fine of up to $10,000 for each minor license violation.

Such violations include, but are not limited to:

1. Knowingly buying, selling, transferring or receiving any cannabis, cannabis plant or cannabis product that was illegally entered into the tracking system;
2. Allowing anyone without a valid individual identification card to engage in any cannabis-related activity;
3. Selling cannabis plants, cannabis or cannabis products to anyone under the age of 21, but over the age of 18, by failing to take all necessary steps to verify age;
4. Misrepresenting any cannabis product to a consumer, licensee or the public, including: 1. Its contents; 2. Its testing results; or 3. Its potency.
5. Making representations or claims that the cannabis or cannabis product has curative or therapeutic effects;
6. Treating or otherwise adulterating cannabis with any chemical (excluding a controlled substance or prohibited agricultural chemical but including nicotine) that has the effect or intent of altering the cannabis’s color, appearance, weight or smell or that has the effect or intent of increasing potency, toxicity or addictiveness;
7. Supplying adulterated cannabis or cannabis products;
8. Failing to report suspicious purchasing patterns that suggest a customer is in possession of illegal amounts of cannabis plants, cannabis or cannabis products or is diverting cannabis or cannabis products to persons under 21 years of age or out of state;
9. Refusing to give, or failing to promptly give, a Department regulatory specialist, representative of the State Tax Assessor, or law enforcement officer evidence when lawfully requested to do so.
10. Subletting any portion of the premises;
11. Except by way of authorized transfer of trade samples or testing samples, giving away or otherwise transferring cannabis in exchange for a monetary sum less than the licensee has paid for the cannabis by way of authorized transfer or less than the value the licensee has invested, in labor and materials, in the cannabis;
12. Allowing consumption of cannabis on a cannabis establishment premises, except as allowed by this rule;
13. Failure to have on the premises, at all times during business hours, as applicable, and periods of apparent activity, an individual identification card holder who is authorized to allow and cooperate with Department requests to inspect the premises;
14. Deliveries to prohibited areas or structures including without limitation drug free safe zones designated by a municipality;
15. Not operating in accordance with the current operations, cultivation or facility plan of record with the Department; or
16. Any other violation of 28-B MRS or this rule.

10.3 - License Restriction, Suspension, Revocation and Voluntary Surrender

The Department shall have the authority to suspend or revoke licenses subject to Title 28-B, Section 802.

10.3.1 Certain Restrictions. The Department may place certain restrictions on licenses in cases where the restrictions may, in addition to other civil or administrative penalties, prevent recurring violations or conflicts with this rule.

The Department will provide written notice to a licensee if a license is to be restricted and a licensee will be given an opportunity to appeal pursuant to the Maine Administrative Procedure Act, 5 MRS, chapter 375.

A cannabis establishment with a restricted license may only exercise license privileges in compliance with the restrictions of the license.

Failure to comply with restrictions is a violation of this rule.

A restriction remains in effect until the Department removes it.

10.3.2 Suspension.

Upon the finding of any license violation described in subsection 10.2, in addition to any monetary penalties, the Department may suspend for a period of up to one year, any or all cannabis establishment licenses held by the licensee found in violation, including any other licenses with a common officer, director, manager or general partner.

The Department may suspend a license based upon the Department’s determination that the licensee has failed at least two audits of a licensee’s sample collection process.

A licensee whose license has been suspended pursuant to this subchapter may not, for the duration of the period of suspension, engage in any activities relating to the operation of the cannabis establishment the licensee is licensed to operate.

The Department retains discretion as to whether to allow a transfer of license for a suspended license and shall be permitted but not required to allow new owners to begin some or all operations prior to the end of the suspension.

10.3.3 Summary Suspension.

The Department may order summary suspension of a cannabis establishment license for up to 30 days under the following circumstances:

1. The Department concludes, based upon a physical test, inspection or examination conducted by a state-certified inspector, that allowing the licensee to continue operations would not adequately protect public health or public safety; or
2. The Department has other objective and reasonable grounds to believe that public health, public safety or significant natural resources are in immediate jeopardy.

The Department may order summary suspension of a cannabis establishment license if a court issues a ruling that indicates the licensee has committed a major license violation.

10.3.4 Revocation.

Upon the finding of any license violation described in subsection 10.2, in addition to any monetary penalties, the Department may permanently revoke, any or all cannabis establishment licenses held by the licensee found in violation, including any other licenses with a common officer, director, manager or general partner.

The Department may permanently revoke a license based upon the Department’s determination that the licensee has failed at least two audits of a licensee’s sample collection process.

The Department may also permanently revoke for inactivity, a cannabis establishment license, when it determines that the licensed premises have been inactive for a period of one year or more without reasonable justification.

A licensee whose license has been revoked pursuant to this subchapter shall cease all activities relating to the operation of the cannabis establishment, following the procedure described in subsection 10.3.6 of this rule.

A license that is revoked may not be transferred or renewed.

10.3.5 Voluntary Surrender of License.

A licensee facing penalties under this Section may offer to voluntarily surrender its license, meaning that the licensee must cease operations and may not renew or transfer the license. In such cases, the Department has the discretion:

1. To reject voluntary surrender of license and pursue penalties under this Section;
2. To accept the voluntary surrender of license made without conditions; or
3. To negotiate conditions of a voluntary surrender, including but not limited to the following: 1. The amount of monetary penalties, if any are to be imposed; 2. The effect of the voluntary surrender on any other adult use cannabis licenses or medical cannabis registrations with which the licensee is associated; 3. The amount of time before which the licensee or any principal of the licensee may apply for an adult use cannabis license or medical cannabis registration; and 4. The waiver of appeal.

A licensee who voluntarily surrenders its license must follow the procedure described in subsection 10.3.5 of this rule.

10.3.6. Procedure for Termination of License. Licensees who permanently abandon the licensed premises or otherwise permanently cease all activities relating to the operation of the cannabis establishment under its license, whether a result of revocation, voluntary surrender or other reasons, must follow the procedures for terminating a license prescribed by 28-B MRS §212. The licensee must:

Provide written notice of abandoning the licensed premises or ceasing operations at least 48 hours in advance to the Department and the municipality in which the licensed premises are located, which shall mean notifying:

1. The county commissioners of the county in which the township is located, for licensed premises located in townships;
2. The Maine Land Use Planning Commission and the town or plantation, for licensed premises located in unorganized areas; or
3. The city, town or plantation in which the licensed premises are located;

Provide the department and the municipality in which the licensed premises are located with a full accounting of all adult use cannabis and adult use cannabis products located within the licensed premises; and

Forfeit the cannabis and cannabis products to the department for destruction in accordance with 28-B MRS §803.

10.4 - Destruction and Voluntary Surrender of Cannabis Plants, Cannabis and Cannabis Products

10.4.1 Order by the Department.

If the Department issues a final order imposing a monetary penalty on or a license suspension or revocation against a licensee pursuant to this subchapter, the Department may specify in the order, in addition to any other penalties imposed in the order, that all or a portion of the cannabis or cannabis products in the possession of the licensee are not authorized under this rule and are subject to destruction. A licensee subject to a final order directing the destruction of cannabis or cannabis products in its possession shall forfeit the cannabis or cannabis products to the Department or destroy the cannabis and cannabis products at the time and place and in the manner required by the Department in writing.

If the Department is notified by a criminal justice agency that there is a pending investigation of a licensee subject to an order imposed under subsection A, as set forth in 28-B MRS §803, the Department may not destroy any cannabis or cannabis products of that licensee until the destruction is approved by the criminal justice agency.

10.4.2 Voluntary Surrender of Cannabis Plants, Cannabis or Cannabis Products

A licensee may elect, upon mutual agreement with the Department, to voluntarily surrender any cannabis plants, cannabis or cannabis products to the Department. Such voluntary surrender:

1. Must be made on a form supplied by the Department;
2. Must be signed by an individual who certifies that he or she has authority to represent and bind the licensee; and
3. May require destruction of any cannabis plants, cannabis or cannabis products in the presence of a Department employee or agent and at the licensee’s expense; except that no cannabis plants, cannabis or cannabis products may be destroyed until the Department confirms with law enforcement that the cannabis plants, cannabis or cannabis products to be destroyed are not necessary to any ongoing investigation or prosecution.

Such a voluntary surrender may be made:

1. Prior to a final order and upon mutual agreement with the Department;
2. In connection with a stipulated order through which the licensee waives the right to hearing and any associated rights;
3. In conjunction with a pending action even if the licensee does not waive the right to hearing and any associated rights, with the understanding that the outcome of the hearing does not impact the validity of the voluntary surrender; or
4. After a final order.

If a voluntary surrender is made in conjunction with a final order, including a stipulated order, the licensee must complete and return the Department's voluntary surrender form within 15 calendar days of the date of the final order.

10.5 - Audit, Compliance and Random Testing

10.5.1 Department May Require Audits and Random Testing. The Department may require a cannabis establishment licensee to submit samples identified by the Department to a testing facility of the licensee’s choosing to be tested in order to determine whether a licensee is in compliance with mandatory testing standards and may require additional testing that is conducted at a testing facility of the Department’s choosing.

A testing facility doing audit testing must comply with applicable provisions of this rule, and if conducting testing not required by this rule, may only use Department approved methods.

The Department may require a licensee to submit samples to the Department for any mandatory or additional testing to be conducted by a testing facility.

The Department may order the removal from retail sale of any cannabis or cannabis products for which a licensee has intentionally misrepresented testing results.

The Department may exempt a product at its sole discretion.

10.5.2 Routine or Random Audits of Sampling by Licensees. The Department may, with or without suspicion of infractions, conduct routine audits of any licensee’s sample collection practices, including without limitation:

Reviewing video footage;

Reviewing sample collection and chain-of-custody forms;

Inspecting any samples, including sample collection containers, for compliance with all packaging and labeling requirements of this rule;

Reviewing tracking system data and transportation manifests;

Requiring a demonstration of the licensee’s sample collection practices; and

Requiring testing of batches, at the licensee’s expense. Samples collected for testing pursuant to this paragraph must be collected by or in the presence of Department employees.

10.5.3 Routine or Random Sampling and Testing of Cannabis and Cannabis Products by the Department. In accordance with 28-B MRS §512, the Department may require a licensee to submit to sampling and testing of any cannabis or cannabis product within the licensee’s possession during all business hours listed on the licensee’s facility plan for the purpose of product quality control.

The Department may require the licensee to collect samples or may require that the licensee permit Department employees to collect samples in accordance with the Department-required sampling standard operating procedure.

The Department may require a licensee to pay for any testing required pursuant to this section at a cannabis testing facility that is licensed by the Department.

10.6 - Seizure or Confiscation of Cannabis, Cannabis Concentrate or Cannabis Products

10.6.1. Authority. The Department may seize, destroy, confiscate or place an administrative hold on any cannabis or cannabis products under, but not limited to, the following circumstances:

Any cannabis or cannabis products not properly logged in inventory records or the tracking system;

Any cannabis or cannabis products that are altered or not properly packaged and labeled in accordance with this rule in general and Section 9 specifically;

Any cannabis or cannabis products that has been cultivated, harvested, manufactured or transferred in a manner, or otherwise in a form, not compliant with 28-B MRS, this rule or rules governing the Maine Medical Use of Cannabis Program; or

Improper use, handling, storage, transport, transfer or other possession of samples of cannabis, cannabis concentrate or cannabis products.

If the Department seizes cannabis, the Department shall not cultivate nor preserve any seized cannabis, cannabis plants or cannabis products. Unless notified by a criminal justice agency of pending investigation of the licensee, the Department may, in its final order, specify the destruction of the seized cannabis, cannabis plants or cannabis products.

10.6.2. Administrative Holds. Department officers may order an administrative hold of cannabis or cannabis products to prevent destruction of evidence, diversion or other threats to public safety, while permitting a licensee to retain its inventory pending further investigation, pursuant to the following procedure:

If during an investigation or inspection of a licensee, an employee or agent of the Department develops reasonable grounds to believe certain cannabis plants, cannabis or cannabis products constitute evidence of acts in violation of 28-B MRS or this rule or constitute a threat to the public health or safety, the employee or agent may issue a notice of administrative hold of any such cannabis plants, cannabis or cannabis products. The notice of administrative hold shall provide a documented description of the cannabis plants, cannabis or cannabis products to be subject to the administrative hold and a concise statement that is promptly issued and approved by the director of the Office of Cannabis Policy or a designee regarding the reasons for issuing the administrative hold.

Following the issuance of a notice of administrative hold, the Department will identify the cannabis plants, cannabis or cannabis products subject to the administrative hold in the tracking system. The licensee shall continue to comply with all tracking requirements.

The licensee shall completely and physically segregate the cannabis plants, cannabis or cannabis products subject to the administrative hold in a limited access area of the licensed premises under investigation, where it shall be safeguarded by the licensee.

While the administrative hold is in effect, the licensee is prohibited from selling, giving away, transferring, transporting or destroying the cannabis plants, cannabis or cannabis products subject to the administrative hold, except as otherwise authorized by this rule.

While the administrative hold is in effect, the licensee must safeguard the cannabis plants, cannabis or cannabis products subject to the administrative hold, must maintain the licensed premises in reasonable condition according to health, safety and sanitary standards, and must fully comply with all security requirements, including but not limited to all surveillance, lock and alarm requirements detailed in the security plans, 28-B MRS or this rule.

Nothing herein shall prevent a licensee from voluntarily surrendering cannabis plants, cannabis or cannabis products that is subject to an administrative hold, except that the licensee must follow the procedures set forth in Section 10.4.

Nothing herein shall prevent a licensee from the continued possession, cultivation or harvesting of the cannabis plants, cannabis or cannabis products subject to the administrative hold.

At any time within 30 days after the initiation of the administrative hold, the Department may lift the administrative hold or seek other appropriate relief.

10.7 - Cannabis Recalls

The Department may require a licensee to recall any cannabis and cannabis product that the licensee has sold or transferred upon a finding that circumstances exist that pose a risk to public health and safety.

A recall may be based on, without limitation, evidence that:

1. Cannabis or cannabis product contains an unauthorized pesticide(s);
2. Cannabis or cannabis product failed a mandatory test and was not mitigated pursuant to testing protocols;
3. Cannabis or cannabis product is contaminated or otherwise unfit for human use, consumption or application;
4. Cannabis or cannabis product is not properly packaged or labeled; or
5. Cannabis or cannabis product was not cultivated or manufactured by a cannabis establishment.

If the Department finds that a recall is required, the Department:

1. Must notify the public and licensees of the recall;
2. Must administratively hold all affected cannabis or cannabis products in the tracking system;
3. May require a licensee to notify an individual to whom cannabis or a cannabis product was sold; and
4. May require that the licensee destroy the recalled product.

Section 11 - Fee Schedule

11.1 - Payment of Fees

11.1.1 Application Fees. An applicant shall pay the application fee required by the Department at the time that the applicant submits an application for licensure to the Department for processing.

11.1.2 License Fees. Before issuing an active license, the Department shall invoice the conditional licensee for the applicable fee as determined by the Department pursuant to Title 28-B and this rule. The Department shall not accept any license fees except pursuant to such invoice.

11.2 - Return of Fees Prohibited

Pursuant to 28-B MRS §207(5), the Department may not return to an applicant or licensee or reimburse an applicant or licensee for any portion of an application or license fee paid by the applicant or licensee, regardless of whether the applicant withdraws its application prior to a final decision of the Department on the application, the licensee voluntarily terminates its license pursuant to 28-B MRS and this rule or the Department suspends or revokes the licensee’s license in accordance with the provisions of 28-B MRS and this rule.

11.3 - Individual Identification Card Fees

Card Type Fee

Original Issuance $50.00 plus cost of fingerprinting and criminal history record check

Annual Renewal $50.00

Reissuance $50.00

(lost, stolen, damaged, info change)

11.4 - Fingerprinting and Criminal History Record Check Fee

The fee for the fingerprinting and criminal history record checks shall be set by the State Police and/or State Bureau of Identification, in accordance with its usual operations.

11.5 - Tracking System Fees

Each licensee is responsible for all costs associated with its use of the tracking system and any associated vendor fees.

11.6 - Cultivation Facility Application and License Fees

License Type Application Fee Annual License Fee

Outdoor Only Indoor/Both

Tier 1 Cultivation Facility

Plant-Count-Based  $9.00/mature plant $17/mature plant

Plant-Canopy-Based   $500.00

Tier 2 Cultivation Facility $500.00 $1,500.00 $3,000.00

Tier 3 Cultivation Facility $500.00 $5,000.00 $10,000.00

Tier 4 Cultivation Facility $500.00 $15,000.00 $30,000.00

For each increase in canopy size +$5,000 +$10,000

Nursery Cultivation Facility $60.00 $350.00 $350.00

11.7 - Other Cannabis Establishment Application and License Fees

License Type Application Fee License Fee

Products Manufacturing Facility $250.00 $2,500.00

Cannabis Store $250.00 $2,500.00

Testing Facility $250.00 $1,000.00

Sample Collector $100.00 $250.00

11.8 - Other Cannabis Establishment Fees

Fee Type Application Fee

Transfer of Ownership $250.00

Relocation $250.00

11.9 - Annual Renewal and Late Renewal Application and License Fees

All renewal application and license fees shall be due annually in the amounts listed above in Section 11 of this rule and submitted in accordance with Section 11.1 of this rule, except that the Department may require payment of $2,500.00 in addition to the relevant application fee for renewal applications received less than 30 days prior to the date of expiration of the license. The Department may not accept an application for renewal of a license after the date of expiration of that license.

Appendix A

Maine Adult Use Cannabis Program Sample Collection Standard Operating Procedure for Mandatory Testing

Section 1: Purpose

To explain and standardize the process by which Adult Use Cannabis Program licensees (including without limitation, cultivation facility, products manufacturing facility, cannabis store, sample collector and cannabis testing facility licensees) must collect and transport samples of cannabis, cannabis concentrate and cannabis products for mandatory testing.

Section 2: Compliance Documents

Sample collection must be done in compliance with this standard operating procedure (SOP), Adult Use Cannabis Program Rule , 18-691 CMR, ch. 1 and Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, using techniques described in the Best Practices Guide published by the Department. All licensees collecting samples for mandatory testing must comply with the recordkeeping requirements of Section 3.11 of 18-691, ch.1.

Section 3: Applicable Matrix or Matrices

This SOP applies to sample collection of cannabis, cannabis concentrate and cannabis products.

Section 4: Scope / Field of Application

This SOP covers the requirements for sample collection and transportation for mandatory testing under Maine’s Adult Use Cannabis Program. All licensees collecting samples of cannabis, cannabis concentrate and/or cannabis products for mandatory testing must collect samples in accordance with this SOP.

Section 5: Summary of Procedure

This SOP describes sample collection procedures for licensees collecting samples for mandatory testing.

Section 6: Definitions and Acronyms

Aliquot is a portion of a sample that is used in an analysis performed by a testing facility.

Analytical Method is a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample.

Best Practices Guide means the Best Practices for the Sampling of Adult Use Cannabis published by the Department available at: https://www.maine.gov/dafs/ocp/adult-use/applications-forms. All licensees and any employee of a licensee collecting samples of cannabis, cannabis concentrate, or cannabis products for mandatory testing must collect samples in accordance with the best practices described in the Guide.

CDC means the Maine Center for Disease Control and Prevention, Cannabis Testing Facility Certification Program.

Chain of Custody Form means a record, either paper-based or electronic, that documents the possession of the samples at the time of receipt by the cannabis testing facility, in accordance with chain of custody protocol prescribed by the cannabis testing facility. This record, at a minimum, must include the sample location, the number and types of containers, the mode of collection, the authorized individual who collected the sample, the date and time of collection, preservation and requested analyses.

Cultivar means a specific variety of cannabis produced by selective breeding. Also commonly referred to as a “strain” of cannabis.

Decontaminate or decontamination means cleaning tools, equipment, sample preparation areas and any other required areas or surfaces to neutralize or otherwise remove any analyte of interest, filth and any other material that may be reasonably expected to interfere with the integrity of mandatory test results.

Department means Department of Administrative and Financial Services, Office of Cannabis Policy.

Harvest Batch means a specific quantity of adult use cannabis harvested from adult use cannabis plants of the same strain, grown under the same conditions, and harvested during a specified period of time from a specified cultivation area within a cultivation facility.

Homogeneity means the amount of cannabis or cannabis concentrate and cannabinoids within the product being consistent and reasonably equally dispersed throughout the product or each portion of the product or concentrate, or a representative sample. Sample increments for homogeneity testing must be stored and transported in a separate sample collection container from the larger, combined primary sample.

Increment or Sample Increment means a smaller sample that, together with other increments, makes up the primary sample.

Licensee means a natural person or business entity licensed pursuant to 28-B MRS, Chapter 1, subchapters 2 and 5 to operate an adult use cannabis establishment.

Primary Sample means a portion of cannabis or cannabis products collected from a harvest or production batch for testing. Also referred to as a “composite sample”.

Production Batch means a specific quantity of cannabis concentrate or a cannabis product that is produced during a specified period of time using the same extraction and/or manufacturing method, formulation and/or recipe and standard operating procedure.

Random Sampling is a procedure in which the selection of sample increments from a batch of cannabis product is based on chance, and every element of the batch has a probability of being selected. Random sampling helps produce representative cannabis samples by eliminating certain types of biases.

Representative Sample is a sample that accurately reflects the characteristics of the larger batch of cannabis product.

Requester means a person who submits a request to a licensed cannabis testing facility for State-mandated testing of cannabis or cannabis products.

Sample means, as applicable, an amount of:

1. Cannabis, cannabis concentrate or cannabis product collected from an adult use cannabis establishment for mandatory testing: 1. By an employee of a testing facility in accordance with 28-B MRS §604 and this Rule; 2. By a sample collector, in accordance with 28-B MRS §604 and this Rule; or 3. By a self-sampler in accordance with 28-B MRS §604-A and this Rule;
2. Cannabis, cannabis concentrate or cannabis product provided to a testing facility by a cannabis establishment or other person for mandatory testing or testing for research and development purposes in accordance with 28-B MRS, chapter 1; or
3. Adult use cannabis or adult use cannabis product collected from a licensee by the Department for the purposes of testing the cannabis or cannabis product for quality control purposes pursuant to 28-B MRS §512(2).

Sample Collector means a person licensed pursuant to this Rule and 28-B MRS, ch. 1 to collect samples of cannabis and cannabis products for testing and to transport and deliver those samples to a testing facility. A sample collector must hold a valid individual identification card (“IIC”).

Self-sampler or Self-sampling licensee means a cultivation facility, products manufacturing facility or cannabis store licensee that collects samples of cannabis, cannabis concentrate and cannabis products for mandatory testing or an employee of a cultivation facility, products manufacturing facility or cannabis store licensee who collects samples of cannabis, cannabis concentrate and cannabis products for that licensee for mandatory testing. Any individual collecting samples for mandatory testing must hold a valid individual identification card (“IIC”).

Sterilization or Sterilize means cleaning tools, equipment, sample preparation areas and any other required areas or surfaces to destroy and remove all forms of life present in those areas which may be reasonably expected to interfere with the integrity of mandatory test results, specifically, microbiological impurities.In the context of this guide,areas and surfaces that have been cleaned in this manner are “sterile”.

Section 7: Safety

The safety rules of each facility to be sampled will be followed with no exceptions.

Each facility will be responsible for educating any sample collector or employee of a cannabis testing facility collecting samples for mandatory testing of the rules and safety requirements of the facility where samples for mandatory testing are collected.

All safety rules will be followed as dictated by Maine motor vehicle and traffic laws.

Cross-contamination from site to site must be considered during every step of the sample collection process. A sample collector or employee of a cannabis testing facility collecting samples for mandatory testing must decontaminate any reusable tools or equipment used for sample collection at more than one facility or sampling site between sample collection events.

Section 8: Pre-Sample Collection Procedure

The following pre-sample collection procedure applies to self-sampling licensees or sample collector licensees collecting samples for mandatory testing:

The requester, and if applicable, the sample collector, must keep records of the sample collection information required in Section 3.11 of 18-691, ch. 1.

The self-sampler or sample collector must contact the cannabis testing facility(ies) conducting analyses for mandatory testing prior to collecting any samples.

The self-sampler or sample collector licensee must keep records of the instructions given to the self-sampler or sample collector licensee by the cannabis testing facility conducting the analyses.

The self-sampler or sample collector must collect samples for mandatory testing in accordance with this SOP, the Department’s Best Practices Guide, and instructions given to the licensee by the cannabis testing facility conducting the mandatory analyses.

The following pre-sample collection procedure applies to a cannabis testing facility licensee collecting samples for mandatory testing:

A cannabis testing facility collecting samples for mandatory testing from an adult use licensee must keep records of the sample collection event in accordance with its site-specific sample collection SOP, if any, and this rule.

A cannabis testing facility collecting samples for mandatory testing must conduct its sample collection and sample transport in accordance with this SOP, the Department’s Best Practices Guide, and any other requirements of the cannabis testing facility’s quality system.

Section 9: Materials Required - Equipment and Supplies

The following equipment and supplies must be used for sample collection as applicable:

NOTE: Images and examples of the sample collection equipment and supplies listed below are included in the Department’s Best Practices Guide.

Spatulas (disposable or stainless steel).

Forceps (disposable or stainless steel).

Field balance (capable of 0.01g measurements).

Calibrated verification weights appropriate to verify accuracy of field balance.

Mylar bags / amber jars / or equivalent, certified clean (for metals, water activity and moisture content, filth and foreign matter analyses).

Amber jars or equivalent, certified clean (for pesticide and potency analyses).

Borosilicate VOA vials or equivalent, certified clean (for residual solvent analysis).

Sterile Amber Bottles/ Whirl-Pak bags/ or equivalent (for microbial analyses).

NIST traceable thermometer or infrared thermometer gun calibrated every 6 months.

Coolers and ice packs or other appropriate refrigeration to maintain collected samples at required temperature, as appropriate.

A transport manifest generated by the inventory tracking system for tracking all collected samples from the sample collection site to the cannabis testing facility.

Pens with indelible ink.

Security tamper evident tape labeled with “For Testing Purposes Only.”

Sample labels.

Equipment logbook.

Disposable 1mL (or larger) syringes or pipettes (for liquid transfer).

Sterile/sanitized nitrile, latex, or rubber gloves.

Teri-Wipes, Clorox wipes or equivalent.

Transport container for cannabis material that is stored at room temperature.

Transport container that meets any matrix-specific storage requirements.

NOTE: For sample collectors or employees of cannabis testing facilities, sample collection tools and supplies may be provided by the requester at the location to be sampled; this will minimize the possibility of outside contamination. The requester may also supply all necessary sample collection equipment and sample containers. The requester should receive guidance from the testing facility regarding what types and sizes of sample collection containers should be used. The testing facility may also ship or drop off sample collection containers to the requester in preparation of the sampling event.

Any self-sampler, sample collector or employee of a cannabis testing facility that uses re-usable sample collection tools and equipment must keep a log of cleaning and sterilization for every re-usable sample collection tool and equipment used.

Section 10: Reagents and Standards

The following reagents or standards may be used to clean reusable sample collection tools and equipment:

Cleaning supplies – solvent, bleach, 70% ethanol, etc.

Deionized Water

The self-sampler, sample collector or employee of a cannabis testing facility that cleans reusable sample collection tools and equipment will be responsible for keeping a log of cleaning and supplies used.

NOTE: Some cleaning supplies, such as alcohol or ethanol, are solvents which are tested for pursuant to Maine’s mandatory testing requirements. To that end, it is important that reusable sample collection tools that are used to collect sample increments for residual solvent testing are not cleaned using alcohol or ethanol.

Section 11: Sample collection, preservation, shipment and storage

Further guidance on how to perform the sample collection procedures outlined below, including selection of appropriate sample collection equipment and tools based upon matrix type, collection of random sample increments, etc. is included in the Department’s Best Practice Guide.

Representative Sampling

When sampling a batch, the self-sampler, sample collector, or employee of a cannabis testing facility collecting samples for mandatory testing shall check for any signs of non-uniformity. Some obvious indicators may be different types or sizes of containers, variations in marks and labels, or mixed batch numbers. During sample collection, the self-sampler, sample collector, or employee of a cannabis testing facility shall look for differences in the usable cannabis being sampled such as color, shape, size, and treatment. The batch must be uniform for all factors that appear on the label; hence, variations in the product may indicate nonuniformity in the batch and any sample collected may not be representative for testing. The self-sampler, sample collector, or employee of a cannabis testing facility shall note these anomalies in the sample collection records kept by the licensee in accordance with Section 3.11 of 18-691 CMR, ch.1.

General procedural guidelines that apply to all sample collection include:

a. The self-sampler, sample collector or employee of a cannabis testing facility must be given access to the entire batch.

b. The self-sampler, sample collector or employee of a cannabis testing facility must use of appropriate sampling equipment.

c. The self-sampler, sample collector or employee of a cannabis testing facility must consistently follow sample collection procedures based upon matrix type.

d. The self-sampler, sample collector or employee of a cannabis testing facility must take equal portions for each sample increment.

e. The self-sampler, sample collector or employee of a cannabis testing facility must randomly select sample increments throughout the batch to ensure a representative sample.

f. The self-sampler, sample collector or employee of a cannabis testing facility must obtain at least a minimum number of sample increments.

g. The self-sampler, sample collector or employee of a cannabis testing facility must record all observations and procedures used while collecting the sample increments in the sample collection records kept in accordance with Section 3.11 of 18-691 CMR, ch.1.

h. All samples collection containers must be sealed with tamper evident seals in front of a witness, who must be an individual identification cardholder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and record the time and date of sealing on the tamper evident seal(s) and must further sign and date an attestation in accordance with the sample collection recordkeeping requirements of Section 3.11 of 18-691 CMR, ch.1.

Random Sampling

Sample increments should be randomly selected from different locations within the batch, which could be comprised of a container or set of containers, including prepackaged units of cannabis products. Random samples are determined by using the procedure below.

1. Determine the size of the batch and how many containers make up the batch.
2. Determine the number of samples needed based on the batch size.
3. Count the number of containers in batch.
4. Randomly select the containers to be sampled. The self-sampler, sample collector, or employee of a cannabis testing facility must have a random number generator or other means of randomly selecting sample increment units.
5. Record the container numbers to be sampled in the sample collection records.
6. Take the same approximate weight from each container that is sampled.

Sampling a Batch of Cannabis Flower, Trim, or Pre-rolled Cannabis Cigarettes

A harvest batch of cannabis flower, trim, or pre-rolled (uninfused) cannabis cigarettes must be sampled in accordance with the following table based upon the weight of the harvest batch after it has been “dried” or “cured”.

Harvest Batch Weight Range*

Composite Sample Amount*

≤ 2.5 kg

6.5 g (13 increments of 0.5 grams each)

2.5 kg < w ≤ 5 kg

9.5 g (19 increments of 0.5 grams each)

5 kg < w ≤ 7.5 kg

16 g (16 increments of 1 gram each)

7.5 kg < w ≤ 10 kg

22 g (22 increments of 1 gram each)

*For harvest batches in excess of 10 kg, the harvest batch must be divided and sampled in batches of 10 kg or less.

Weigh the empty sample container(s) and record the weight in the sample collection records.

Locate the batch to be sampled.

Review the container label information for harvest lot number, producer, and other pertinent information and match to the sampling request or transport information, as applicable.

Record the batch size and number of containers in the batch as reported by the requester.

Select the appropriate sampling tool to ensure that it reaches all portions of the container.

Visually inspect each test sample increment to assess uniformity, if non-uniformity is identified, record observation in the sample collection record. It is expected there will be variable sizes and appearance of flower material.

For harvest batches of cannabis flower, trim or pre-rolled cannabis cigarettes stored in storage containers such as plastic tubs, the harvest batch containers shall be sampled in a spatial pattern to ensure that each region of the container has been sampled.

When collecting sample increments, approximately equal amounts of product are to be taken with each increment and from each container. Care must be taken by the self-sampler, sample collector, or employee of a cannabis testing facility to not damage any portion of the product that is being sampled or any portion of the product that remains.

Collect sample increments (minimum of twelve) from random locations as determined above throughout the sample batch into a large sterile container. Sample increments for homogeneity testing must be placed in separate, sterile containers.

The sample increments should be collected, and each increment should be packaged in accordance with the requirements identified by the cannabis testing facility(ies) conducting the mandatory analyses.

Combine all sample increments to form the composite sample(s) as directed by the cannabis testing facility. Please note: sample increments to analyze homogeneity will require separate sample containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the composite sample(s). The self-sampler, sample collector or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals bearing a unique tamper seal number in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Unpackaged Servings or Prepackaged Retail Units of Cannabis Concentrate and Cannabis Products

For unpackaged or prepackaged samples, based on batch size, the required number of increments collected from each batch is listed in the following chart. Each sample increment is one serving of an unpackaged retail unit or one prepackaged unit for retail sale (i.e. one unpackaged serving or one pre-packaged retail unit containing multiple servings is one sample increment).

of Unpackaged servings or Pre-packaged Units in Production Batch*

Number of Sample increments**

Where to take samples:

≤ 50

2 units

One from beginning and one from end

51 -150

3 units

Beginning(1), Middle(1), End(1)

151 - 500

5 units

Beginning(2), Middle (2), End(1)

501-1200

8 units

Beginning (3), Middle (2), End (3)

1201 -3200

13 units

Beginning (4), Middle (5), End (4)

3201-10000

20 units

Beginning (6), Middle (7), End (7)

*For production batches in excess of 10,000 units, the production batch must be divided and sampled in batches of 10,000 units or less.

**Depending on the weight of the prepackaged samples, more than the listed number of increments may need to be taken as directed by the cannabis testing facility.

The increments sampled should cover the range of the batch. See table above.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

For unpackaged sample increments, select the appropriate sampling tool to ensure that it reaches all portions of the container.

Visually inspect each test sample increment to assess uniformity, if non-uniformity is identified, record observation in the sample collection record

Randomly select unpackaged or prepackaged sample increments from the beginning third, middle third, and end third of the container(s) holding the unpackaged servings or prepackaged retail units. For unpackaged sample increments, sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the composite sample(s). The self-sampler, sample collector or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals bearing a unique tamper seal number in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Shatter/Wax/Slab Concentrates

For cannabis concentrate, based on batch weight, the required number of sample increments is listed in the following chart.

Production Batch Weight*

Composite sample amount

≤ 0.5 kg

6 g (12 increments of 0.5 grams each)

0.5 kg < w ≤ 1 kg

8 g (16 increments of 0.5 grams each)

1 kg < w ≤ 1.5 kg

10 g (20 increments of 0.5 grams each)

1.5 kg < w ≤ 2 kg

12 g (24 increments of 0.5 grams each)

2 kg < w ≤ 5 kg

14 g (28 increments of 0.5 grams each)

*For production batches in excess of 5 kg, the production batch must be divided and sampled in batches of 5 kg or less.

Note: The shatter, wax, or other concentrate slab may have varying degrees of thickness; thus, the amounts of cannabinoids or potential residual solvent(s) may vary with the thickness of the concentrate. It is important that the samples taken are equivalent from each region of thickness to provide a representative sampling of the overall product. The thinner portions of the concentrate slab will have more surface area exposed allowing for a higher rate of diffusion of residual solvents from the wax or shatter than the thicker portions.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

Identify three (3) thicknesses or regions to the product.

Using spatula or forceps, collect the determined number of sample increments needed from each region of the overall production batch to meet the minimum number of increments required above.

Collect sample increments (minimum of twelve) from random locations throughout the sample batch into a container. Sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record..

Seal and label the sample containers. The self-sampler, sample collector or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals bearing a unique tamper seal number in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Oils, Tinctures, and Other Liquids

Unless already prepackaged into individual retail units (see above), sample increments of oils or tinctures will be collected from container(s) holding the production batch of the oil or tincture in accordance with the following chart.

Production Batch Weight*

Composite Sample Amount

≤ 0.5 kg

6 g (12 increments of 0.5 grams each)

0.5 kg < w ≤ 1 kg

8 g (16 increments of 0.5 grams each)

1 kg < w ≤ 1.5 kg

10 g (20 increments of 0.5 grams each)

1.5 kg < w ≤ 2 kg

12 g (24 increments of 0.5 grams each)

2 kg < w ≤ 5 kg

14 g (28 increments of 0.5 grams each)

*For production batches in excess of 5 kg, the production batch must be divided and sampled in batches of 5 kg or less.

Note: The container holding the oil or tincture shall be inverted a minimum of three times to ensure that the oil or tincture is homogenous. Each inversion shall be complete, i.e., the oil shall flow to the cap of the container and back to the base three times. Viscous substances such as oil may need to be allowed to come to room temperature before inversion occurs. A self-sampler, sample collector or employee of a cannabis testing facility may allow viscous substances to come to room temperature to promote inversion.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

Invert oil as described above.

Weigh and record the weight and of the production batch in the sample collection record.

Using a 0.5 mL, 1.0 mL, 10.0 mL or other appropriate sterile disposable pipette^[4] or syringe, remove the sample amount for each sample to be collected into sterile vial or other appropriate container as directed by the cannabis testing facility. The sample increments (minimum of twelve) shall be taken at different

depths of the oil or tincture to ensure that the oil or tincture is sampled representatively. The top third of the container, middle third of the container, and bottom third of the container must be sampled. Sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the sample containers. The self-sampler, sample collector or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seal bearing a unique tamper seal number in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information are appropriately record.

Note: Sample amounts collected will be no less than the minimum sample size required by Table 5.5-A in Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch.5. That table is reproduced in sections above. If there is a discrepancy between the tables above and Table 5.5-A, the table in the rule controls. A testing facility may require that additional sample material be taken for quality control samples.

Section 12: Sample Transportation and Receipt

The licensee collecting samples for mandatory testing must transport those samples to the cannabis testing facility(ies) conducting the analyses, except that a cannabis testing facility may offer a service to retrieve samples collected from a self-sampler at the cannabis establishment where the samples were collected. All samples must be accompanied by a transport manifest generated by the METRC inventory tracking system in accordance with the requirements of Section 4 of the Adult Use Cannabis Program Rule 18-691 CMR, ch.1.

Except as noted in Sampling Oils, Tinctures and Other Liquids, samples must be maintained at all times during collection and transport at the temperature at which the cannabis, cannabis concentrate or cannabis product is stored to prevent microbial growth. The self-sampler, sample collector or employee of a cannabis testing facility must provide appropriate refrigeration during transport for samples requiring refrigeration.

Self-samplers and sample collectors must deliver samples to a cannabis testing facility in accordance with any instructions or restrictions indicated by the cannabis testing facility during its pre-sampling discussion with the self-sampler or sample collector.

Cannabis testing facilities must receive and account for all samples for mandatory testing in accordance with the testing facility’s SOP regarding sample receipt. A testing facility must inspect all samples upon receipt and promptly notify the requester, and if applicable, the sample collector, if samples are rejected and the reason for such rejection and record the same in the sample collection record and in the inventory tracking system.

Section 13: Recording Sampling Events in METRC Inventory Tracking System

Self-samplers, sample collectors, and employees of a cannabis testing facility must track all inventory, including sample collection events, in accordance with the user guide provided by the Department’s required inventory tracking system.

Section 14: Quality Control

A cannabis testing facility may require any licensee to collect and remit additional sample increments or analytic blanks (e.g. equipment, trip, field blanks) as required by the testing facility’s quality system.

At all times, licensees, including cannabis testing facilities, must comply with their Department-approved standard operating procedures, including this SOP and the licensee’s quality control system.

Section 15: Calibration and Standardization

The field balance must be initially verified as within the standards listed in the National Institute of Standards and Technology (NIST) Handbook by a scale dealer or repairman registered pursuant to 10 MRS §2651, and calibrated on a yearly basis.

The field verification weights must be calibrated on a yearly basis.

The field balance must be verified each day it is use with weights that bracket the range of use. These verifications will be documented and recorded in the equipment log maintained by the self-sampler, sample collector or employee of a cannabis testing facility collecting samples for mandatory testing.

Section 16: Waste Management

All waste must be disposed of in accordance with the Adult Use Cannabis Program Rule, 18-691 CMR, ch.1.

Section 17: Documentation

The following Quality Records shall be generated and managed for every sample collected:

Required Record

Form Steward

Copies to be Retained By

Sample collection record, to be completed by licensee collecting samples

Licensee collecting samples for mandatory testing

Licensee collecting samples for mandatory testing

Transport Manifest, generated by METRC, to accompany every sample from sampling site to cannabis testing facility

Office of Cannabis Policy

2 copies per Adult Use Cannabis Program Rule

Chain-of-Custody Form, per cannabis testing facility SOP

Cannabis Testing Facility Licensees

Per cannabis testing facility SOP as applicable

Section 18: Sample Collector Signatures

By signing below the self-sampler, sample collector, or employee of a cannabis testing facility collecting samples for mandatory testing affirms that they have read, understand and agree to follow this current version of the SOP. They also agree that they have read and understood the Adult Use Cannabis Program Rule , 18-691 CMR, ch. 1, Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, this SOP and the Best Practices Guide.

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Fiscal impact note, included pursuant to 5 MRS §8063: The Department estimates that the changes implemented by this rulemaking will have a de minimus fiscal impact on municipalities and counties.

History

• STATUTORY AUTHORITY: Title 28-B (Marijuana Legislation Act)
• STATUTORY AUTHORITY: P.L. 219 ch. 491 (An Act to Amend the Adult Use Marijuana Law)
• STATUTORY AUTHORITY: History Note:
• STATUTORY AUTHORITY: as Office of Marijuana Policy:
• STATUTORY AUTHORITY: EFFECTIVE DATE
• STATUTORY AUTHORITY: December 4, 2019 – filing 2019-194 (Major Substantive)
• STATUTORY AUTHORITY: November 22, 2019 – filing 2019-205 (EMERGENCY)
• STATUTORY AUTHORITY: February 20, 2020 - filing 2020-026
• STATUTORY AUTHORITY: June 26, 2020 – filing 2020-143 (EMERGENCY)
• STATUTORY AUTHORITY: September 18, 2020 – filing 2020-204
• STATUTORY AUTHORITY: July 1, 2022 – filing 2022-107
• STATUTORY AUTHORITY: as Office of Cannabis Policy:
• STATUTORY AUTHORITY: September 8, 2022 – filing 2022-165
• ACCESSIBILITY CHECK: July 7, 2025 (by OCP)
• ACCESSIBILITY CHECK: Office of Cannabis Policy, Universal Symbol, OMP Website: Resources, https://www.maine.gov/dafs/omp/resources/universal-symbol (accessed August 18, 2021). ↑ Pursuant to 28-B MRS §501(6) this limited authorization expires two years after the Department issued the first active cultivation facility license. The first active cultivation facility license was issued September 8, 2020. ↑Office of Cannabis Policy, Guidance Documents, OCP Website: Resources, https://www.maine.gov/dafs/ocp/sites/maine.gov.dafs.ocp/files/inline-files/OMP_Memorandum-AUMP_Retesting_of_Cannabis_Failed_Test.pdf (accessed April 29, 2022). On January 26, 2021, the Department issued a Memorandum on Retesting and Remediation of Cannabis Items Subject to a Failed Test which provides examples of the retesting and remediation requirements of this section. ↑Licensees must ensure that samples of liquid or other viscous materials are measured by weight and not volume. ↑

Chapter 2 Maine Medical Use of Marijuana Program Rule (formerly 10-144 ch. 122)

Code Me. R. 18-691 Ch. 2 Maine Medical Use of Marijuana Program Rule (formerly 10-144 ch. 122) {#sec-18-691-ch.-2 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 2}

(formerly 10-144 ch. 122)

Department of Administrative and Financial Services

Office of Marijuana Policy

162 State House Station

Augusta, Maine 04333

Last amended: February 1, 2018

18 Department of Administrative and Financial Services

691 Office of Marijuana Policy

Chapter 2: Maine Medical Use of Marijuana Program Rule

PURPOSE

1

SECTION 1. DEFINITIONS

1

SECTION 2. SCOPE AND PROTECTED CONDUCT

5

A. Protections: legal medical use of marijuana

5

B. Lawful disposal of excess prepared marijuana for medical use

6

C. Criminal history record check

8

D. Annual report

9

SECTION 3. CULTIVATION OF MARIJUANA FOR MEDICAL USE

10

A. Cultivation of marijuana for medical use

10

B. Security

10

C. Access to a cultivation site

11

D. Packaging and labeling

11

SECTION 4. MEDICAL PROVIDER WRITTEN CERTIFICATION

12

A. Authorized conduct by a medical provider; written certification

12

B. Public petitions: adding debilitating medical conditions

13

C. Public hearing

13

D. Written comments

13

E. Commissioner’s decision

13

F. Bona fide medical provider-patient relationship

14

G. Retain and maintain records

14

H. Minor patient; consent

15

I. Incapacitated adult patient; consent

15

J. Proof of authority to act for another

15

SECTION 5. QUALIFYING PATIENT

16

A. Authorized conduct: qualifying patient

16

B. One valid written certification

16

C. Updated certification required

16

D. Patients who may not cultivate

16

E. Patient designation to assist

17

F. Designation required to cultivate

17

G. Patient rescinds designation

17

SECTION 6. PRIMARY CAREGIVER

18

A. Authorized conduct: primary caregiver

18

B. Designation form required

18

C. Patient designates cultivating primary caregiver

19

D. Patient rescinds designation

19

E. Primary caregiver may accept, refuse or discontinue designation

19

F. Caregiver discontinues designated relationship

19

G. Employee of a primary caregiver

20

H. Application for registry identification cards

20

I. A second primary caregiver

21

J. Food establishment license required

21

K. Separate locations within a building

21

SECTION 7. REGISTERED DISPENSARY

23

A. Dispensary registration certificate required

23

B. Food establishment license required

23

C. Designation form required

23

D. Patient rescinds designation

23

E. Registered dispensary may accept, refuse or discontinue designation

23

F. Authorized conduct; registered dispensary

24

G. Dispensary prohibitions

24

H. Dispensary registry identification cards required

25

I. Inspections

26

J. Quality control

26

K. Sample collection and labeling

26

L. Chain of custody of samples

26

M. Sample testing

27

N. Dispensary security: protection of premises and persons

27

O. Dispensary policies, procedures and records

27

P. Inventory

32

Q. Trip tickets

32

R. Inventory supply reporting

33

S. Patient designation reporting

33

T. Incident reporting

33

U. Illegal activity reporting

33

V. Competitive selection process to add new dispensaries

34

W. Application for dispensary registration certificate

38

X. Renewal of dispensary registration certificate

39

SECTION 8. FEES

41

A. Fee submissions

41

B. Registered patient fee

41

C. Registered primary caregiver fees

41

D. Registered dispensary fees

42

E. Processing fee: reissued card

43

F. Laboratory testing fees

43

SECTION 9. REGISTRY IDENTIFICATION CARD

44

A. Card required

44

B. Voluntary patient application for a registry identification card

45

C. Primary caregiver application for a registry identification card

45

D. Employee of a registered primary caregiver registry identification card

46

E. No work prior to issuance of card

46

F. Notice to Department when employment or affiliation ceased.

46

G. Card surrendered to Department

46

H. Dispensary registry identification cards

46

I. Annual renewal of card required

47

J. Notification of change in cardholder’s status

48

K. Surrender old card or new card voided

48

SECTION 10. COMPLIANCE AND ENFORCEMENT

49

A. Compliance and enforcement

49

B. On-site assessment

49

C. Allegations of non-compliance

51

D. Plan of correction

52

E. Progressive enforcement

52

F. Court ordered fines

52

G. Denial of application or renewal for a registry identification card

52

H. Revocation of registry identification card

53

I. Grounds for revocation of registry identification card

53

J. Failure to surrender a void registry identification card

54

K. Grounds for voiding a registry identification card and authorized conduct

54

L. Date card is void

55

M. Termination of dispensary registration certificate

55

N. Grounds for termination of dispensary registration certificate

55

O. Emergency suspension of dispensary registration certificate

55

P. Notice of Department action

55

Q. Evidential Record

56

R. Receipt of Written Notice

56

SECTION 11. INPATIENT HOSPICE AND NURSING FACILITIES

57

A. Voluntary participation of facility

57

B. A qualifying patient in a hospice or nursing facility

57

C. Designated primary caregiver is the facility

57

D. Registry identification cards for staff members

58

E. Criminal history record check

58

F. Facility registration and staff cards required prior to assisting patients

58

G. Qualifying patients in facility may not cultivate

58

H. Designate a second caregiver or dispensary to cultivate

58

I. Marijuana acquisition: from dispensary or cultivating caregiver

58

J. Inventory control

59

K. Administration of marijuana

59

L. Confidentiality

60

M. Discharge from facility

60

N. Protected conduct: hospice providers, nursing facilities and staff

60

O. Reimbursement

60

STATUTORY AUTHORITY

61

Purpose

The Maine Medical Use of Marijuana Program Rule and the enabling statute, Maine Medical Use of Marijuana Act , govern the Maine Medical Use of Marijuana Program (MMMP). The Department is responsible for administering the MMMP to ensure qualifying patients’ access to safe marijuana for medical use in the State of Maine. This rule clarifies statutory requirements and describes program administration and operations needed to carry out provisions of the statute. Implementation of program operations and assurance of lawful participation requires conjunctive application of both statute and rule.

This rule includes definitions of terms and procedures for issuing a certificate of registration to a dispensary and registry identification cards to persons authorized conduct under the Act. This rule also governs payments of fees and enforcement of these regulations.

The activities described in this rule and the enabling statute are considered a violation of federal law. Individuals participating in the MMMP may be subject to federal sanctions for what is otherwise considered authorized conduct in the State of Maine. The Department is not responsible or liable for the actions of program participants under this rule. This rule is effective 90 days following filing with the Secretary of State.

SECTION 1

DEFINITIONS

Definitions in this rule are in addition to definitions in the statute. As used in this rule, unless the context otherwise indicates, the following terms have the following meanings.

A. Act means the Maine Medical Use of Marijuana Act .

B. Adulterated , for the purposes of this rule, means made impure or inferior by adding extraneous ingredients. Goods that are prepared in food establishments that are licensed facilities pursuant to 22 M.R.S. §2167 and that contain marijuana for medical use by a qualifying patient are not considered to be adulterated.

C. Applicant means any person applying for a registry identification card to participate in the Maine Medical Use of Marijuana Program, hereinafter MMMP.

D. Bona fide medical provider-patient relationship means a relationship in which the treating medical provider has ongoing responsibility for the assessment, care, and treatment of a qualifying patient’s debilitating medical condition with respect to the medical use of marijuana.

E. Cardholder means a registered patient, a registered primary caregiver, an employee of a primary caregiver or a principal officer, board member or employee of a registered dispensary who has been issued and possesses a valid registry identification card.

F. Debilitating medical condition means a chronic or debilitating disease, medical condition or symptom that qualifies for the medical use of marijuana by a qualifying patient in accordance with 22 M.R.S., Chapter 558-C.

G. Deficiency means a violation of or failure to comply with a provision of this rule or the statute.

H. Department means the Department of Health and Human Services (DHHS).

(APA Office Note: transferred to the Department of Administrative and Financial Services, Office of Marijuana Policy, 2019.)

I. Dispensary means “registered dispensary,” as defined in 22 MRS §2422(6).

J. Marijuana means the leaves, stems, flowers and seeds of all species of the plant genus cannabis, whether growing or not. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake or sterilized seed of the plant which is incapable of germination.

K. Marijuana; allowable usable amount of marijuana for medical use means two and a half ounces or less of prepared marijuana and a total of up to six mature marijuana plants that a person may be authorized to possess for each qualifying patient at any one time.

L. Marijuana; incidental amount of marijuana means, for each qualifying patient, up to 12 female nonflowering marijuana plants; an unlimited amount of marijuana seedlings, seeds, stalks and roots; and up to eight pounds of harvested dried unprepared marijuana in varying stages of processing that are not included when calculating the “allowable useable amount of marijuana.”

M. Marijuana; seedling means a marijuana plant that has no flowers and is less than 12 inches in height and diameter. A plant that does not meet all three criteria will not be considered a seedling.

N. Marijuana; tincture means a liquid mixture created from a concentrated extract of marijuana for medical use for ingestion or inhalation by a qualifying patient.

O. Marijuana; topical treatment means a mixture or extract of marijuana for medical use made into a transcutaneous balm, lotion, ointment or rubbing alcohol solution.

P. Organic means certified by an accredited organic certifier in the State of Maine as being in compliance with the United States Department of Agriculture certification requirements applying to organic products.

Q. On-site assessment means the review process to determine compliance. An on-site assessment may include a paper review, interview and inspection of the medical marijuana cultivation, processing and retail sites and administrative locations for the purpose of ensuring compliance with the requirements of statute and this rule.

R. Paraphernalia , for the purpose of this rule, is limited to equipment, products and materials that are used in planting, propagating, cultivating, growing, harvesting, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling or otherwise introducing marijuana for medical use into the human body. Paraphernalia includes, but is not limited to the following:

1. Kits used or intended for use in the planting, propagating, cultivating, growing or harvesting of any species of marijuana;

2. Isomerization devices used or intended for use in increasing the potency of any species of the marijuana plant;

3. Testing equipment used or intended for use in identifying or in analyzing the strength, effectiveness or purity of marijuana;

4. Scales and balances used or intended for use in weighing or measuring marijuana;

5. Separation gins and sifters, used or intended for use in removing twigs and seeds from, or in otherwise cleaning or refining, marijuana;

6. Envelopes and other containers used or intended for use in packaging small quantities of marijuana for medical use;

7. Containers and other objects used or intended for use in storing medical marijuana; and

8. Objects used or intended for use in ingesting, inhaling or otherwise introducing marijuana into the human body, including but not limited to:

a. Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes with or without screens, permanent screens, hashish heads or punctured metal bowls;

b. Water pipes;

c. Carburetion tubes and devices;

d. Smoking and carburetion masks;

e. Roach clips, meaning objects used to hold burning marijuana cigarettes that have become too small or too short to be held in the hand;

f. Chamber pipes;

g. Carburetor pipes;

h. Electric pipes;

i. Air-driven pipes;

j. Chillums;

k. Bongs designed for marijuana and not for cocaine; or

l. Ice pipes or chillers.

S. Primary caregiver means a person who is designated by a qualifying patient and authorized to assist the qualifying patient with the medical use of marijuana in accordance with this rule.

T. Visiting qualifying patient means a patient who is not a resident of Maine or who has been a resident of Maine fewer than 30 days, and who is qualified by another jurisdiction for the medical use of marijuana and authorized for the medical use of marijuana in Maine pursuant to this rule and the statute.

SECTION 2

SCOPE AND PROTECTED CONDUCT

A. Protections: legal medical use of marijuana. The protections and requirements of this rule is for conduct expressly authorized by this rule and the statute for the legal medical use of marijuana in the State of Maine by qualifying patients, and for those authorized to assist qualifying patients. To receive protection for conduct authorized by this rule and the statute, individuals must comply with applicable provisions of rule and statute, including possessing required documents as proof of authorized conduct. Protections under this rule do not extend to individuals who are not authorized to possess, cultivate, dispense, transport, furnish or administer marijuana for medical use.

1. Violation of other laws. These protections do not extend to violations of other State and federal laws.

2. Protected conduct of lawful possession of marijuana for medical use. An authorized person who is compliant with statute and rule may lawfully possess marijuana plants, an “allowable useable amount of prepared marijuana” and an “incidental amount of marijuana” in accordance with statute and this rule. The incidental amount of marijuana is not included when calculating the allowable useable amount of marijuana for medical use.

3. Valid proof of authorized participation. A qualifying patient, primary caregiver, caregiver employee, or principal officer, board member or employee of a registered dispensary must possess a valid driver’s license with a photograph or other photographic identification in accordance with 22 M.R.S. §§ 2423-E(5) and 2425 (11) in order to establish proof of authorized participation in the medical use of marijuana program.

a. In addition to proof of identity, additional documentation is required as proof of authorized conduct.

i. Patient conduct. Qualifying patients are not required to register or to possess a registry identification card to receive protection for conduct authorized under this rule and the statute. A qualifying patient must possess the written certification from his or her medical provider and proof of identity in accordance with 22 M.R.S. §2423-E (5)(A) as proof of authorized conduct.

ii. P rimary caregiver not required to register conduct. A primary caregiver who assists only a patient who is a member of the caregiver’s family or household is not required to register. A primary caregiver who is not required to register may voluntarily register with the Department to obtain a registry identification card for each patient. A primary caregiver who assists patients who are family or household members, as defined by 22 M.R.S. §2422, must possess a valid designation form and designation card for each patient up to the maximum number permitted by statute as proof of authorized conduct.

iii. Registered cardholders conduct. A primary caregiver employee or principal officer, board member or employee of a registered dispensary who is engaging in conduct authorized under this rule is required to possess a valid registry identification card as proof of authorized conduct.

iv. Registered primary caregiver conduct. A caregiver who assists a patient who is not a member of the primary caregiver’s family or household is required to register in accordance with 22 M.R.S. §2423-A (3)(C)(2). The primary caregiver must possess a registry identification card for each patient the caregiver assists up to the maximum permitted in order to receive protection for conduct authorized under this rule and the statute. The registered primary caregiver must also possess a valid designation form signed by each patient as proof of authorized conduct.

b. Trip ticket. A primary caregiver or cardholder authorized to transport marijuana may be required to possess a trip ticket as proof of authorized conduct. Requirements for trip tickets are specified in Sections 6(A), 7(Q) and 11(I) of this rule.

4. Protected conduct by anyone providing paraphernalia. Prior to providing paraphernalia in accordance with this rule and the statute, a person must verify proof of authorized conduct. See paragraph 3 of this subsection of rule for documents required as proof of authorized conduct.

5. Protected conduct by anyone providing marijuana or product containing marijuana. A person authorized to possess and furnish marijuana for medical use must verify proof of authorized conduct of any person prior to providing that person with marijuana or product containing marijuana,including samples for research and development or testing purposes pursuant to this rule and the statute. See paragraph 3 of this subsection of rule for documents required as proof of authorized conduct.

B. Lawful disposal of excess marijuana for medical use. The marijuana, including marijuana plants, prepared marijuana or harvested marijuana in excess of the limits provided in this rule and the statute and that is not dispensed or disposed in accordance with this rule may be subject to forfeiture to a law enforcement officer. Qualifying patients, primary caregivers, hospices and nursing facilities designated as primary caregivers, and registered dispensaries may lawfully dispose of excess prepared marijuana for medical use in accordance with this rule and the statute.

1. Furnishing excess prepared marijuana for medical use. Excess prepared marijuana for medical use that is no longer needed by the patient may be furnished to an authorized person in accordance with the statute and this rule. Qualifying patients, primary caregivers and registered dispensaries are prohibited from cultivating more than the allowed number of plants in accordance with the Act. Marijuana for medical use in excess of the limits authorized by this rule and the statute is a violation of this rule, the Maine Medical Use of Marijuana Act and may be a violation of 17-A M.R.S. Chapter 45.

2. Authorized transfer of excess prepared marijuana by a qualifying patient. For the purpose of disposing of excess prepared marijuana that is no longer needed for the qualifying patient’s medical use, the qualifying patient may furnish or offer to furnish prepared marijuana to another qualifying patient in accordance with 22 M.R.S. §2423-A (1)(D) for that qualifying patient’s medical use of marijuana.

3. Authorized transfer of excess prepared marijuana by a primary caregiver. For the purpose of disposing of excess prepared marijuana that is no longer needed for a qualifying patient’s medical use, in accordance with 22 M.R.S. §2423-A (2), the primary caregiver, at no cost and not for resale, give it to qualifying patients and to a patient’s designated caregiver if nothing of value is offered or transferred in return. Only a registered primary caregiver is permitted to sell excess prepared marijuana to a dispensary in accordance with statute. An authorized transfer of excess prepared marijuana to a dispensary may not exceed the limits specified in statute and this rule.

4. Authorized transfer of excess prepared marijuana by a registered dispensary. For the purpose of disposing of excess prepared marijuana that is no longer needed for a qualifying patient’s medical use, the registered dispensary may, at no cost and not for resale, give it to qualifying patients if nothing of value is offered or transferred in return. The dispensary must keep records of these transactions. A dispensary may transfer excess prepared marijuana to another dispensary in accordance with 22 M.R.S. §2428 (6)(L) and such transfer must be approved by the Department.

5. Authorized transfer of excess prepared marijuana by hospice or nursing facility. For the purpose of disposing of excess prepared marijuana for medical use that is no longer needed by the qualifying patient, a hospice provider or a nursing facility designated as a primary caregiver by that qualifying patient may give the prepared marijuana to a registered dispensary or another primary caregiver if nothing of value is offered or transferred in return.

6. Forfeit to a law enforcement officer. Marijuana plants, prepared marijuana and harvested marijuana inexcess marijuana of limits permitted by the statute and this rule may be forfeited to law enforcement in accordance with 22 M.R.S. §§ 2423-A (7) and (8). For the purpose of disposing of excess marijuana for medical use, it may be transported to a State or local law enforcement office. Presentation of a valid registry identification card or a valid medical provider written certification and a Maine driver’s license or other Maine-issued photographic identification may be required.

7. Dispensary inventory interruption. A dispensary may acquire excess prepared marijuana from a registered primary caregiver or dispensary during an inventory interruption following approval from the Department in accordance with this rule and the statute. Inventory interruption includes, but is not limited to, a circumstance that is of a catastrophic nature, including facility malfunctions or damage and loss resulting from extreme weather, contamination or other natural occurrences.

a. Approval to acquire excess prepared marijuana. Prior to accepting excess prepared marijuana from a primary caregiver or another dispensary, a dispensary must obtain approval from the Department. The dispensary must complete a Request for Acquisition form available by request to the Department. The Department shall respond within one business day of receipt of a completed Request for Acquisition form. The dispensary’s request for approval to acquire marijuana from an authorized source must include:

i. An explanation of the inventory interruption to justify the request;

ii. The name and registry identification number of the source; and

iii. The strain, total amount and cost of the marijuana.

8. Defense for possession of excess marijuana. Except as provided in 22 M.R.S. §2426, a qualifying patient may assert the medical purpose for using marijuana as a defense to any prosecution involving possession of excess marijuana.

C. Criminal history record check. Registry identification cards may not be issued without an annual criminal history record check. An annual criminal history record check may include each state where the individual has resided since the age of 18. The Department may waive the requirement of a criminal history check if the cardholder’s application for an additional registry identification card is submitted within 12 months of a completed background check. A qualifying patient who is registering voluntarily is not required to have a criminal history record check. Annual criminal history record checks are governed by this rule and statute.

1. Annual background checks. Updated background checks shall be conducted annually at the time of renewal of registry identification cards.

2. Notice of disqualifying drug conviction. When a criminal history record check reveals conviction for a disqualifying drug offense, the Department shall issue a written notice of the revocation or denial of a registry identification card to the cardholder and, if the person is an employee, to the person’s employing primary caregiver or dispensary authorized under the Act.

D. Annual report. The Department shall submit to the Legislature an annual report in accordance with statute.

SECTION 3

CULTIVATION OF MARIJUANA FOR MEDICAL USE

A. Cultivation of marijuana for medical use. All cultivation of marijuana for medical use must comply with this rule and the statute. A person authorized to cultivate marijuana for medical use is restricted to cultivating in an enclosed, locked facility or area on property that is owned or under the control of the qualifying patient, caregiver or registered dispensary, subject to the limitations below.

1. Shared cultivation locations. Family members and household members are permitted to share an enclosed, locked area for cultivating marijuana plants for medical use in accordance with 22 M.R.S. §§ 2423-A (1)(B) and (3)(D).

a. Two or more patients who are members of the same household may share the same enclosed, locked cultivation facility to cultivate the marijuana for their own medical use in accordance with the statute.

b. No more than two primary caregivers who are members of the same family or household may share the same enclosed, locked facility to cultivate marijuana on behalf of qualifying patients in accordance with the statute.

c. A primary caregiver employee may not cultivate the employee’s marijuana in the same enclosed, locked facility used by the primary caregiver who employs the employee.

2. Indoor cultivation. Indoor cultivation locations are subject to provisions related to electrical installation and inspections by State electrical inspectors as set out in 32 M.R.S. §§ 1104 and 1105.

3. Legible tag on each plant. The identification system used by the primary caregiver or dispensary to identify plants must include, at a minimum, the unique numeric identifier appearing on the patient’s valid written certification that is tagged to each mature and immature plant cultivated on behalf of that patient and included as part of that patient’s record.

B. Security. Cultivation of marijuana for medical use requires implementation of appropriate security measures to discourage theft of marijuana, ensure safety and prevent unauthorized entrance to a cultivation site in accordance with this rule and the statute.

1. Fence. An enclosed outdoor cultivation area must have a privacy fence at least six feet high that obscures the view of the marijuana to discourage theft of marijuana and prevent unauthorized intrusion.

a. Qualifying patients, primary caregivers and registered dispensaries must comply with local ordinances, if any, regarding boundary setback requirements.

2. Locks. Enclosed, locked facilities and enclosed outdoor areas must have locks sufficient to discourage theft and unauthorized entrance.

C. Access to a cultivation location. In accordance with 22 M.R.S. §§ 2423-A (3)(A) and (3)(B), and 2428 (I), access to a cultivation area is restricted. An individual who is authorized to cultivate marijuana may not permit access to the cultivation area except as specified by statute and this rule. Prior to allowing access, a valid Maine driver’s license or other State-issued photographic identification must be reviewed by the person who owns or controls the cultivation area as proof of identity.

D. Packaging and labeling. The labels on prepared marijuana and goods containing marijuana that are sold by dispensaries and primary caregivers are evidence of compliance is rule and the statute. Packaged marijuana and products containing marijuana for medical use must report total amount of prepared marijuana as evidence of compliance. Dispensing may not exceed statutory limits. The packaging and labeling of prepared marijuana and marijuana products for sale by registered dispensaries and primary caregivers must comply with applicable State labeling laws, including provisions in 22 M.R.S. §2157, this rule and the Maine Medical Use of Marijuana Act .

1. Organic certification. Marijuana for medical use may not be labeled “organic” unless the marijuana plants and prepared marijuana are produced, processed and certified to be consistent with applicable legal standards.

SECTION 4

MEDICAL PROVIDER WRITTEN CERTIFICATION

A. Authorized conduct by a medical provider; written certification. Prior to issuing a written certification, the medical provider shall certify that it is the provider's professional opinion that the patient is likely to receive therapeutic benefit from the medical use of marijuana to treat or alleviate the patient's debilitating medical condition. Medical providers issuing written certification to qualifying patients must comply with this rule and the statute. Remote healthcare services for the purposes of the certification and treatment monitoring related to marijuana for medical use are not prohibited by this rule.

1. Department-approved certification process. The qualifying patient’s medical provider shall use the Department-approved certification process to issue a written certification for a qualifying patient’s medical use of marijuana for at least one of the debilitating medical conditions or treatments listed in statute or approved pursuant to this rule. The medical provider shall give the original signed and dated written certification directly to the qualifying patient or patient’s legal guardian.

a. Certification for minor qualifying patients. When a list of physicians known to the Department to be willing to act as a consulting physician is not available, the Department will permit the inquiring treating medical provider to proceed with the certification process for a minor qualifying patient at the time of the request.

b. Replacement written certifications. Except when it is determined to be medically necessary to examine the qualifying patient, a medical provider may, without an in-person encounter with the patient, re-print a written certification if the qualifying patient’s certification has been lost or needs updated patient information. When the medical provider does not complete a full assessment of the patient, the expiration of the replacement written certification must not exceed the expiration date of the preceding lost or inaccurate written certification.

2. Referral to professional licensing boards. The Department may refer to the appropriate professional licensing board a report received regarding the medical provider’s inappropriate evaluation or treatment of a patient’s medical condition or a reported alleged violation of the applicable standard of care, or when the Department determines the medical provider has violated this rule or the statute.

3. Medical provider compliance. The medical provider must remain in good standing with professional licensing authorities and compliant with this rule and the statute to avoid interruption in the provider’s capacity to issue written certifications.

B. Public petitions: adding debilitating medical conditions. The Department shall consider written public petitions to add a disease or medical condition to the list of debilitating medical conditions set forth in statute for the medical use of marijuana. A petition to benefit an individual patient on whose behalf the petition is submitted that does not comply with the provisions in this section shall be denied by the Department.

1. A petition to add a disease or medical condition must be submitted on forms provided by the Department.

2. The petition must clearly identify the specific debilitating disease or medical condition.

3. The petition must include reputable scientific evidence that supports the use of marijuana for the treatment of the disease or medical condition.

4. The petition must include sufficient evidence to demonstrate that the medical use of marijuana would benefit qualifying patients with the disease or medical condition.

5. The petition must include sufficient evidence that marijuana therapy is effective enough to warrant its use.

6. The petition must include written endorsement from a Maine medical provider, as defined in statute.

C. Public hearing. The Department shall publish a notice indicating the date, time and place of the public hearing on the petition. The notice shall be posted on the Department’s webpage and electronically sent to individuals who contact the Department to be placed on the Department’s interested parties’ mailing list.

D. Written comments. The Department shall accept written comments on the petition for ten business days after the date of the public hearing.

E. Commissioner’s decision. The commissioner shall approve or deny a petition within 180 days of its submission. The commissioner’s written decision shall include the factors supporting the decision. Factors considered by the commissioner include, but are not limited to, the following:

1. The written petition including required documentation;

2. Public testimony and written comments; and

3. Consultation with physicians and additional research conducted by, or on behalf of, the Department at its discretion.

F. Bona fide medical provider-patient relationship. The medical provider shall certify that the written certification has been provided in the course of a bona fide medical provider-patient relationship. The medical provider may have to verify that, prior to issuance of a written certification, a bona fide medical provider-patient relationship exists. In order to establish a bona fide medical provider-patient relationship for medical marijuana certification, the medical provider shall:

1. Conduct a full assessment of the patient’s medical history, including substance misuse history and current condition, medication and treatment;

2. Facilitate an encounter with the person and conduct a relevant physical examination occurring at a permanent location that, similar to a covered office visit or outpatient treatment in terms of site, extent, duration and frequency; is clinically appropriate for conducting medical services and effective for addressing the patient’s debilitating condition; and that enables the patient to return for follow up, consultation or assistance, as needed;

3. Review of prior records of relevant examinations, diagnostic test results, treatments and treatment response;

4. Develop and document a plan of care;

5. Create and maintain patient records and documentation, including:

The patient’s medical history;

Results of the physical examination, including vital signs, and any laboratory tests;

Instructions to the patient, including discussions of the risks and benefits of the medical use of marijuana, and any disadvantages, alternatives, potential adverse effects, and expected response to treatment;

A description of the treatment(s) provided to the patient, including all past and current medications prescribed or administered (including the date, type, dose and quantity);

Results of ongoing monitoring of patient progress and the need for the continued use of medical marijuana; and

Notes on evaluations, communications and consultations with other medical providers.

G. Retain and maintain records. The medical provider must retain and maintain records that support the decision to recommend the medical use of marijuana, including records of the diagnosis of the debilitating medical condition for which the medical use of marijuana is recommended, including:

1. A description of the ordinary medical or surgical measures for intractable pain that the patient has not responded to for more than six months; or

2. A description of the symptoms resulting from a chronic or debilitating disease or medical condition or its treatment that satisfies criteria for the medical use of marijuana as set out in this rule and the statute; and

3. A nonbinding estimate of the length of time that the medical use of marijuana is needed for the treatment of the debilitating medical condition.

H. Minor patient; consent. Prior to issuing a written certification for a minor patient’s medical use of marijuana, the treating medical provider must secure written consent of the parent, legal guardian, or person having legal custody of the minor qualifying patient. The medical provider must have documentation of the consent of the parent, legal guardian or person having legal custody of the minor in accordance with the statute.

I. Incapacitated adult patient consent. Prior to issuing a written certification for an incapacitated adult patient’s medical use of marijuana the medical provider must secure written consent that includes the following written documentation from the legal guardian or the power of attorney for health care of the incapacitated adult qualifying patient. The incapacitated adult patient’s legal guardian or the power of attorney for health care must:

1. Consent to the patient’s medical use of marijuana;

2. Consent to serve as one of the patient’s primary caregivers;

3. Consent to control the acquisition of marijuana, and the dosage and frequency of the medical use of marijuana by the incapacitated adult patient; and

4. Consent to comply with all other applicable provisions of this rule and the statute.

J. Proof of authority to act for another. The legal guardian or the power of attorney for health care of an incapacitated adult patient, or a minor’s guardian or the person having legal custody of the minor must submit to the treating medical provider a copy of the legal documentation issued by the court that appointed the guardian, a copy of the incapacitated adult patient’s power of attorney for health care or other legal documentation that the person has legal custody of the patient.

SECTION 5

QUALIFYING PATIENT

A. Authorized conduct: qualifying patient. The authorized conduct of a qualifying patient is governed by this rule and the statute. A qualifying patient possessing a valid medical provider written certification who is compliant with this rule and the statute is protected under the Act when exercising authorized conduct. Registration is voluntary for qualifying patients who want to secure a Department-issued registry identification card.

B. One valid written certification. Prior to engaging in the medical use of marijuana, a qualifying patient must obtain a valid written certification from his or her medical provider in accordance with this rule and the statute. A qualifying patient may not possess more than one medical provider written certification at one time, except that a visiting qualifying patient is required to have both the valid written medical use of marijuana certification from his or her home jurisdiction and a valid Maine written certification signed by the patient’s treating medical provider.

1. Written certification required. Prior to obtaining or using marijuana for medical use, a qualifying patient, including non-registered patients, voluntarily registered patients and visiting patients, must obtain a written certification from his or her medical provider in accordance with this rule.

a. The written certification form must be printed on tamper-resistant paper.

b. The written certification may not disclose the medical condition on the written certification issued to the patient for the medical use of marijuana.

c. The written certification expires within one year after issuance. Each written certification must include the date issued and the expiration date.

d. The written certification must be issued in the course of bona fide medical provider-patient relationship. The patient is responsible for providing the necessary information in order for the medical provider to maintain documentation as required by this rule to demonstrate an existing bona fide medical provider-patient relationship.

C. Updated certification required. When a qualifying patient has a name change or address change, the qualifying patient must secure an updated written certification from the patient’s medical provider. A written certification that has not been updated within 30 days to correct outdated patient information is not valid.

D. Patients who may not cultivate. Qualifying patients who may not cultivate their own marijuana for medical use are set out in this rule and the statute.

1. Minor qualifying patients may not cultivate. A minor qualifying patient may not cultivate his or her own marijuana. Only one of the minor’s primary caregivers described in this rule and the statute may be designated to cultivate marijuana for the minor qualifying patient’s medical use. Instead of designating a primary caregiver to cultivate marijuana, a dispensary may be designated to cultivate marijuana for the minor qualifying patient.

2. Incapacitated adult qualifying patients may not cultivate. An incapacitated adult qualifying patient may not cultivate his or her own marijuana. Only one of the primary caregivers described in these rules may be designated to cultivate marijuana for the incapacitated adult qualifying patient’s medical use. Instead of designating a primary caregiver to cultivate marijuana, a dispensary may be designated to cultivate marijuana for the incapacitated adult qualifying patient.

3. Visiting qualifying patients. A visiting qualifying patient may not cultivate marijuana. A visiting qualifying patient may designate a registered primary caregiver or a dispensary to cultivate marijuana for medical use.

E. Patient designation to assist. The qualifying patient must complete the Department-approved Caregiver/Dispensary Designation Form required to designate a primary caregiver to assist the qualifying patient in the medical use of marijuana. Only specified qualifying patients may have two primary caregivers. The patient must provide the designation card and a copy of the signed and dated designation form to the designee. The Caregiver/Dispensary Designation Form is available on the Department’s webpage at http://www.maine.gov/dhhs/mecdc/public-health-systems/mmm/index.shtml.

F. Designation required to cultivate. When a qualifying patient elects to designate either a primary caregiver or a registered dispensary to cultivate marijuana for the qualifying patient’s medical use, the patient must complete the Department-approvedCaregiver/Dispensary Designation Form to designate the authorized conduct of the primary caregiver or dispensary. A patient may designate one source to cultivate and must specify the total number of plants the designee may cultivate on the patient’s behalf. Designating a primary caregiver primary caregiver or dispensary does not preclude a patient from cultivating for himself or herself; however, at no time may the combined cultivation by the qualifying patient and the patient’s designee exceed the maximum limits of plants permitted by statute. The patient must provide the designation card and a copy of the signed and dated designation form to the designee. The Caregiver/Dispensary Designation Form is available on the Department’s webpage at http://www.maine.gov/dhhs/mecdc/public-health-systems/mmm/index.shtml.

G. Patient rescinds designation. The patient may change his or her designated registered dispensary or primary caregiver at any time by notifying the registered dispensary or primary caregiver of the change. A qualifying patient may rescind the designation of a primary caregiver or dispensary by signing and dating the rescission section of the designation form and providing a copy of the updated form to the primary caregiver or dispensary. The patient who recently terminated a designation may not obtain marijuana from another source, including a newly designated primary caregiver or dispensary, if the transfer results in the patient possessing more than the amount permitted by statute.

SECTION 6

PRIMARY CAREGIVER

A. Authorized conduct: primary caregiver. The authorized conduct of a primary caregiver is governed by this rule and the statute. The primary caregiver who receives compensation for assisting a qualifying patient is required to pay applicable taxes and to maintain appropriate records for tax purposes. The Department may conduct a review of required documentation for compliance purposes. A primary caregiver may be designated by a qualifying patient to provide the following:

1. Assist and cultivate. Assist any qualifying patient with the medical use of marijuana in accordance with this rule and the statute. The designation form shall indicate whether the primary caregiver is cultivating on behalf on the patient. Visiting qualifying patients who have designated a primary caregiver must be counted when calculating the maximum number of qualifying patients allowed by statute.

2. Dispense. A primary caregiver may dispense marijuana for medical use to a qualifying patient in accordance with statute. A primary caregiver may prepare and dispense goods containing marijuana for medical use to a qualifying patient in accordance with statute and this rule. A trip ticket is required if the primary caregiver is transporting marijuana from the cultivation location to dispense from a different location. See Section 7 (Q)(1) of this rule for requirements related to trip tickets.

3. Acquire. Acquire medical use marijuana from an authorized source on behalf of a qualifying patient in accordance with this rule and the statute.

4. Dispose. Dispose of excess prepared medical use marijuana in accordance with this rule and the statute.

5. Other. Other services authorized by this rule and the statute.

6. Employ one person. A primary caregiver who is registered may employ one person to assist in the duties of the registered primary caregiver. A registered primary caregiver must maintain personnel files in accordance with this rule.

B. Designation form required. A primary caregiver must have a Department-approved designation form signed and dated by each qualifying patient, including a visiting qualifying patient, who they assist.

1. Patient designation reporting. The registered primary caregiver must report, at least annually, the total number of patients who have designated the primary caregiver. The unique count of patients served by the primary caregiver must be provided upon request by the Department. The report must include the following:

a. The date of patient designation and rescission date, if applicable, and

b. The patient’s unique identification number that appears on the patient’s written certification.

2. Disclosure; privacy protection. The primary caregiver must ensure a level of privacy protection for qualifying patients and comply with requirement regarding confidentiality in 22 M.R.S. §2425(8). Unless otherwise stated in statute or rule, the primary caregiver may not disclose patient information without signed patient consent. These provisions also apply to the employee of a registered caregiver.

C. Patient designates cultivating primary caregiver. A qualifying patient may designate either a primary caregiver or a dispensary to cultivate medical use marijuana. The maximum number of plants permitted by statute may not be exceeded by a combination of the primary caregiver who is designated to cultivate and the patient who also cultivates. The designation form must clearly identify the primary caregiver who the patient designates to cultivate and the number of plants designated to be cultivated on the patient’s behalf. The primary caregiver retains the qualifying patient’s designation card for the time the designation is in effect. No cultivation may occur until the primary caregiver has a designation form signed and dated by the qualifying patient. The primary caregiver who is required to register must obtain a registry identification card to be authorized to cultivate marijuana for medical use.

D. Patient rescinds designation. A qualifying patient may rescind the designation of a primary caregiver by signing and dating the rescission section of the form and providing the rescinded designation form to the primary caregiver. Upon receipt of notice of rescission, the primary caregiver must return the designation card to the patient. Unless a new patient replaces the former patient, the primary caregiver who fails to notify the Department within ten days of the change in patient designation may be subject to enforcement action including fines in accordance with statute and this rule.

E. Primary caregiver may accept, refuse or discontinue designation. Aprimary caregiver may accept, refuse or discontinue the designated relationship with a qualifying patient. The Department-approved designation form signed by the qualifying patient must also be signed and dated by the primary caregiver clearly indicating the acceptance, refusal or discontinuation of the designated relationship. Unless a new patient replaces the former patient, the primary caregiver who fails to notify the Department within ten days of a change in designation may be subject to enforcement action in accordance with statute and this rule.

F. Caregiver discontinues designated relationship. A primary caregiver discontinues the designated relationship with a qualifying patient in accordance with the following:

1. Signs and dates the qualifying patient’s designation form indicating the discontinuation of the designation relationship.

2. Returns the designation card to the qualifying patient the same day the caregiver signs and dates the form. Once the discontinued designation form is signed and the card is returned to the qualifying patient, the qualifying patient is no longer counted when calculating the maximum number of qualifying patients allowed per primary caregiver by this rule and the statute.

3. The conduct protected by this rule and the statute expires ten days after the date the qualifying patient’s designation is discontinued. Excess marijuana must be lawfully disposed within this ten-day period. A copy of the discontinued designation form may be needed as proof of authorized conduct.

G. Employee of a registered primary caregiver. The authorized conduct of an employee of a registered primary caregiver is governed by this rule and the statute.

1. The employee of a registered primary caregiver may assist in the duties designated to the employing registered primary caregiver.

2. The registered primary caregiver’s employee’s personnel file shall contain the following:

a. Documentation of background checks;

b. Job description or employment contract;

c. The Employment Eligibility Verification Form I-9 and

d. Copy of current registry identification card and copy of a Maine driver’s license of other State-issued photographic identification card.

3. The authorization of an employee’s conduct under this rule and the statute ceases when that person is no longer employed by a registered primary caregiver.

4. A registered primary caregiver employee is required to pay applicable taxes.

H. Application for registry identification cards. Primary caregivers who are required by statute to register with the Department must submit an application for a registry identification card and for an employee registry identification card, as applicable, in accordance with this rule and the statute. See Section 9 of this rule.

1. Application criteria. An applicant must submit a completed application for a registry identification card which includes, but is not limited to, the following information:

a. Residency information required for a criminal history record check;

b. Social Security Number or EIN, and, if applicable, a sales tax ID number for tax reporting purposes; and

c. Cultivation location, if applicable.

2. The Department may deny an application for a registry identification card if the applicant failed to provide required information or provided false information.

3. Submission of an application for a registry identification card by a primary caregiver constitutes permission for entry and inspection of any part of a building or property under ownership or control of that primary caregiver used for cultivation, storage, preparation, processing, or furnishing of medical marijuana. Any samples taken shall be handled as for dispensary samples in Sections 7(J), 7(K) and 7(L).

4. Failure to cooperate with on-site assessments may be ground to revoke the caregiver’s registry identification card.

I. A second primary caregiver. In addition to a minor qualifying patient, the following qualifying patients may designate a second primary caregiver in accordance with this rule and the statute.

1. An incapacitated adult qualifying patient. An incapacitated adult qualifying patient’s legal guardian or power of attorney for health care shall serve as the incapacitated adult’s primary caregiver. In addition, an incapacitated adult qualifying patient may have a second primary caregiver.

2. Qualifying patient in a hospice or nursing facility. The qualifying patient’s hospice provider or nursing facility may serve only as the qualifying patient’s non-cultivating primary caregiver. In addition, the qualifying patient may have a second primary caregiver designated to cultivate marijuana or to assist with the qualifying patient’s medical use of marijuana.

J. Food establishment license required. Except as provided by this rule and statute, Aa primary caregiver must obtain a food establishment license from the Department of Agriculture, Conservation and Forestry (DACF), pursuant to 22 M.R.S. §§ 2152 and 2167, prior to preparing goods containing medical use marijuana, including tinctures, that are intended for ingestion. Licensed caregivers must comply with regulations applicable to food establishments, including 10-144 C.M.R., Chapter 200 and DACF rules.

1. Food establishment exemption. A primary caregiver is not required to obtain a food establishment license if the primary caregiver is preparing consumable goods containing marijuana for a patient who is a member of the primary caregiver’s family or household and the product is furnished to that patient.

K. Separate locations within a building. Primary caregivers are prohibited from participating in a collective as defined in 22 M.R.S. §2422 (1-A). A collective does not include primary caregivers who rent separate, self-contained, locked and secured locations within a building pursuant to this rule and the statute. Separate, self-contained, locked and secured areas are enclosed on all sides and function independently.

1. Caregivers in a common building. Except as explicitly permitted by statute:

a. A primary caregiver may not assist another caregiver in acts of cultivation or processing, which includes growing, harvesting, drying, manufacturing, storage, and dispensing; or in those duties designated to the caregiver and related to the administration of marijuana for medical use.

b. All marijuana cultivated for medical use must be locked and stored separately.

c. Materials used by a primary caregiver related to the cultivation may be stored in common areas.

SECTION 7

REGISTERED DISPENSARIES

A. Dispensary registration certificate required. No person shall operate a dispensary for marijuana for medical use without a Department-issued dispensary registration certificate. The application and renewal requirements for a dispensary registration certificate are set forth in this rule and the statute.

1. Nontransferable. The dispensary registration certificate issued by the Department to a dispensary is nontransferable.

2. Compliance. The cultivation facility and retail site of a dispensary, including, but not limited to, registered dispensaries that see patients only by appointment, must comply with all requirements and prohibitions in this rule and the statute. Failure to comply may result in enforcement action including, but not limited to, termination of the dispensary registration certificate.

B. Food establishment license required. A registered dispensary must obtain a food establishment license from the DACF, pursuant to 22 M.R.S. §2167, prior to preparing goods containing marijuana, including tinctures of marijuana, intended for ingestion. A dispensary that is issued a food establishment license must comply with applicable provisions within 10-144 C.M.R., Chapter 200 and DACF rules.

C. Designation form required. The registered dispensary must have a Department-approved designation form signed and dated by each qualifying patient or patient’s legal representative assisted by the dispensary, including a visiting qualifying patient, and the patient’s designation card.

1. Disclosure; privacy protection. The dispensary must ensure a level of privacy protection for patients. Unless stated otherwise in statute or rule, principal officers, board members and employees of dispensaries may not disclose patient information, including designation cards without signed patient consent.

D. Patient rescinds designation. A qualifying patient may rescind his or her designation of a registered dispensary by signing and dating the rescission section of the form and providing the rescinded designation form to the registered dispensary. Within ten days of receipt of notice, the dispensary must return the designation card to the patient and, unless the former patient is replaced with a new patient, notify the Department of the change.

E. Registered dispensary may accept, refuse or discontinue designation. Aregistered dispensary may accept, refuse or discontinue the designated relationship with a qualifying patient. The Department-approved designation form signed by the qualifying patient must also be signed and dated by the registered dispensary clearly indicating acceptance, refusal or discontinuation of the designated relationship.

1. Dispensary discontinues designated relationship. A registered dispensary discontinues the designated relationship with a qualifying patient in accordance with the following:

a. Signs and dates the qualifying patient’s original designation form indicating that the dispensary discontinues the designation relationship.

b. Returns the designation card to the qualifying patient the same day the dispensary signs and dates the form.

c. The conduct protected by this rule and the statute expires ten days after the qualifying patient’s designation is discontinued.

F. Authorized conduct; registered dispensary. The authorized conduct of a registered dispensary is governed by this rule and the statute. A registered dispensary may be designated by a qualifying patient to provide the following:

1. Assist and cultivate. Assist any qualifying patient who designated the registered dispensary to cultivate marijuana for the medical use and assist the patient with the administration of marijuana.

2. Dispense. Dispense prepared marijuana to a qualifying patient or to a primary caregiver on behalf of a qualifying patient in accordance with statute.

3. Dispose. Dispose of excess marijuana in accordance with this rule and the statute.

4. Acquire. Acquire marijuana in accordance with this rule and the statute.

a. When acquiring excess marijuana from an authorized source, the dispensary must verify the person’s authority to possess and furnish the medical marijuana.

b. Acquisition of marijuana or marijuana product from a registered primary caregiver or other dispensary requires prior approval by the Department. The dispensary must submit the Department-approved form to request approval from the Department, prior to acquiring excess marijuana from a registered primary caregiver or dispensary.

5. Other. Other services authorized by this rule and the statute.

G. Dispensary prohibitions. The following prohibitions apply to registered dispensaries:

1. A registered dispensary may not possess more than six mature marijuana plants for each qualifying patient who has designated the registered dispensary to cultivate marijuana for the qualifying patient’s medical use.

2. A registered dispensary may not dispense, deliver or otherwise transfer marijuana to a person other than a qualifying patient who has designated the dispensary to cultivate marijuana for the qualifying patient or to the patient’s primary caregiver

3. Except as provided by the statute and this rule, a registered dispensary may not acquire prepared marijuana or marijuana plants except through the cultivation of marijuana by that dispensary either at the location of the retail dispensary or at the dispensary’s grow location, if different.

4. A registered dispensary may not contract for the cultivation of seeds, seedlings or small plants or the cultivation, production or preparation of marijuana or goods containing marijuana for medical use. The cultivation and production of marijuana for medical use is restricted to the dispensary’s approved location(s).

5. A registered dispensary is prohibited from acquiring, possessing, cultivating, manufacturing, delivering, transferring, transporting, supplying or dispensing marijuana for any purpose except to assist qualifying patients who have designated the dispensary to cultivate marijuana for them.

6. No more than 30 mature plants may be cultivated by a registered dispensary in an enclosed outdoor area.

H. Dispensary registry identification cards required. The dispensary must obtain registry identification cards for its principal officers, board members, and employees in accordance with this rule and the statute. A dispensary may not apply for a registry identification card for a principal officer, board member or employee who is not a Maine resident or who has been convicted of a disqualifying drug offense. A dispensary may not employ a person under the age of 21.

1. Application criteria. An applicant must submit a completed application for a registry identification card which includes, but is not limited to, the following information:

a. Residency information required for a criminal history record check;

b. Social Security Number or sales tax ID number for tax reporting purposes; and

c. Cultivation location, if applicable.

2. The Department may deny an application for a registry identification card if the applicant failed to provide required information or provided false information.

I. Inspections. Registered dispensaries, including all retail and cultivation locations , are subject to inspection at least annually by the Department in accordance with this rule and the statute.

1. Submission of an application for a dispensary registration certificate constitutes permission for entry and inspection of the dispensary location(s).

2. Failure to cooperate with required inspections may be grounds to revoke the dispensary’s registration certificate.

3. During an inspection, the Department may identify violations of this rule, the statute and the dispensary’s policies and procedures. The dispensary shall receive written notice of the nature of the violations. The dispensary shall notify the Department in writing with a postmark date within ten business days of the date of the notice of violations and identify the corrective actions taken and the date of the correction.

J. Quality control. To ensure the safety of qualifying patients, the registered dispensary shall provide samples to the Department upon request during announced and unannounced inspections for product quality control.

K. Sample collection and labeling. During an inspection of the registered dispensary, the Department shall:

1. Collect soil and plant samples, and samples of products containing marijuana prepared at the dispensary;

2. Place the dispensary’s registration number on each sample container;

3. Label the sample containers with the description and quantity of its content;

4. Seal sample containers; and

5. Have dispensary and Department staff initial each sample container.

L. Chain of custody of samples. Chain of custody documentation shall be maintained by the Department.

1. The Department shall provide a receipt for the collected samples to the dispensary’s representative.

2. The Department shall maintain an accounting of all collected sample containers for control purposes.

M. Sample testing. The Department shall test samples for pests, mold, mildew, heavy metals and the presence of pesticides. Additional testing may be conducted. Written results shall be reported to the dispensaries.

N. Dispensary security: protection of premises and persons. Registered dispensaries must implement appropriate security measures to deter and prevent unauthorized entrance into areas containing marijuana and the theft of marijuana at the registered dispensary and the grow location for the cultivation of marijuana, if any. Security measures to protect the premises, the public, qualifying patients, primary caregivers and principal officers, board members and employees of the registered dispensary must include, but are not limited to, the following:

1. On-site parking.

2. Exterior lighting sufficient to deter nuisance activity and facilitate surveillance, but not disturb neighbors.

3. Devices or a series of devices, including, but not limited to, a signal system interconnected with a radio frequency method such as cellular, private radio signals, or other mechanical or electronic device to detect an unauthorized intrusion.

4. Interior electronic monitoring, video cameras, and panic buttons. Electronic monitoring and video camera recording records must be maintained by the dispensary for at least 14 days.

5. Consistent and systematic prevention of loitering.

O. Dispensary policies, procedures and records. The operating documents of a registered dispensary must include procedures for the oversight of the registered dispensary and procedures to ensure accurate record keeping. Dispensaries must develop, implement and comply with dispensary policies and procedures. When changes are made to its policies or procedures, the dispensary must notify the Department in writing at least ten days before implementation of the change, except when immediate implementation is required, in which case, the dispensary must simultaneously notify the Department when it implements the changed policy or procedure. The written simultaneous notice must include an explanation of why it was necessary to implement the change before giving the Department at least ten days’ notice. The dispensary policies, procedures, and records must be available for inspection by the Department, upon request. Dispensary records subject to inspection include, but are not limited to:

1. Residency requirement policy. All employees, principal officers and board members of a registered dispensary must be residents of the State of Maine.

a. Documentation of current State of Maine residency shall be maintained in the personnel files of employees, principal officers and board members and shall include, but not be limited to, a copy of a Maine driver’s license or other Maine-issued photo identification and physical home address (not mailing address) in Maine.

b. To maintain Maine residency status, each employee, principal officer and board member of the dispensary must have a physical street home address in Maine and, in the aggregate, spend more than 183 days of the year in Maine.

2. Board members; avoid conflict of interest policy. Board members shall carry out their board duties with the proper use of their authority, and in a professional and ethical manner. Board members shall avoid conflicts of interest, including direct and indirect gains which could accrue to the member as a result of actions or decisions made in the capacity of board authority. Examples of potential conflict of interest include:

a. A board member makes a decision motivated by considerations other than the best interests of the registered dispensary.

b. A board member or family member personally enters into a contract with the registered dispensary.

c. A board member learns of and acts on an opportunity for profit which may be valuable to him or her personally or to another organization of which he or she is a member.

d. A board member assists a third party in his or her dealings with the registered dispensary where such assistance could result in favorable or preferential treatment being granted the third party by the registered dispensary.

e. A board member receives gifts or loans from the registered dispensary.

3. Job description and employment contract policies. The policy regarding job descriptions and employment contracts shall include duties, authority, responsibilities, qualifications, supervision, training in, and adherence to, confidentiality requirements, periodic performance evaluations and disciplinary actions.

4. Patient education. Dispensary policies must include a provision that requires dispensaries to provide educational materials about marijuana to qualifying patients and their primary caregivers. Each dispensary must have, available for distribution, an adequate supply of up-to-date education material that assists the patient or primary caregiver in the selection of prepared marijuana appropriate for the patient. Educational materials must be available for inspection by the Department upon request. The educational material must include, at a minimum, the following:

a. Information about the typical and potential effects of different strains of marijuana preparations, and methods of administration. Dispensaries shall provide “tracking sheets” to qualifying patients and primary caregivers who request them to keep track of the strains used and their effects.

b. Information on how to achieve proper dosage for different modes of administration must be shared. Emphasis shall be on using the smallest amount possible to achieve the desired effect. The impact of potency must also be explained.

c. Information on tolerance, dependence and withdrawal must be provided.

d. Information regarding substance abuse signs and symptoms must be available, as well as referral information.

e. Information on whether the dispensary’s marijuana and associated products meet organic certification standards must be provided.

5. Alcohol and drug-free workplace policy. The registered dispensary is subject to provisions of 26 M.R.S., Chapter 7, Subsection 3-A, this rule and the statute. A registered dispensary must have and adhere to a written alcohol and drug-free workplace policy. The policy must be available to the Department upon request. The policy must include at least the following provisions:

a. Applicants: substance abuse testing. Applicants who have been offered employment by the registered dispensary must submit to a substance abuse test. The offer of employment must be conditioned on the applicant receiving a negative test result. Substance abuse testing must comply with 26 M.R.S, Chapter 7, Subchapter 3-A. This does not apply if an applicant, who is also a qualifying patient, fails the drug test solely because of the presence of marijuana in a confirmed positive test result.

b. Employees: substance abuse testing. The registered dispensary must have a policy providing for probable cause substance abuse testing consistent with 26 M.R.S, Chapter 7, Subchapter 3-A. Substances or groups of substances shall include amphetamine/methamphetamine, barbiturates, cannabinoids, benzodiazepines, cocaine and/or metabolites, phencyclidine, opiates, methaqualone, methadone and alcohol.

c. Testing for specific substances of abuse. The registered dispensary shall request a report from the qualified testing laboratory disclosing the presence or absence of, minimally, the following specific substances of abuse:

i. Marijuana, except that the dispensary policy may specify that the reporting of the presence of marijuana for an employee who possesses a valid written certification is not required and the employee’s status as a qualifying patient is confidential.

ii. Cocaine.

iii. Opiates – opium and codeine derivatives.

iv. Amphetamines – amphetamines and methamphetamines.

v. Phencyclidine – PCP.

d. Notify Department: failed drug test. The registered dispensary must notify the Department within one business day of receipt of a confirmed positive result to a lawfully administered substance abuse test of its employees.

e. Repeat failure of drug test. The Department shall refuse to issue or renew a registry identification card to a person who within the 12 months prior to the date of application has had a confirmed positive result to a lawfully administered substance abuse test that occurred within 12 months of another confirmed positive result. This does not apply if that individual failed the drug test solely because of the presence of marijuana in the confirmed positive test result and that person is a qualifying patient.

f. Employee assistance program. To provide opportunities to assist an employee with a substance abuse problem, the registered dispensary must have a contract with an approved Maine employee assistance program (EAP).

6. Personnel Files. The registered dispensary must maintain a confidential personnel file on each principal officer, board member and employee. The personnel files shall include at least the following information:

a. Documentation of State of Maine residency for each employee, principal officer and board member.

b. Copy of current dispensary registry identification card and copy of a Maine driver’s license of other Maine- issued photographic identification card.

c. Employment application and required documentation.

d. Documented verification of references.

e. Documentation of background checks.

f. Job description or employment contract.

g. Documentation of training, including training regarding confidentiality requirements.

h. Documentation of periodic performance evaluations.

i. Documentation of disciplinary actions.

j. Documented results of drug tests.

7. Business records. Registered dispensaries must maintain business records including manual or computerized records of assets and liabilities, tax returns, contracts, board meeting minutes reflecting actions of the board, monetary transactions, various journals, ledgers, and supporting documents, including agreements, checks, invoices and vouchers which the dispensary keeps as its books of accounts. All business records must be available upon request by the Department and maintained and retained for six years.

a. Transaction record. Business records include the sales record that indicates the name of the qualifying patient or primary caregiver to whom marijuana has been distributed, sold or donated, including the quantity and form. The sales record must indicate the sale price of the product.

b. Record of acquisition. The dispensary records must include the marijuana and marijuana products acquired by the dispensary as set out in statute and rule.

c. Record of samples. The dispensary must maintain record of samples provided for quality control, testing or research and development purposes.

d. Record of disposal of marijuana. The registered dispensary must create and maintain records of the disposal of marijuana including marijuana not distributed by the dispensary.

8. Record of current patients. The registered dispensary must keep on file and available for Department inspection, upon request, a copy of each current patient’s registry identification card or, for non-registered qualifying patients, a copy of the medical provider written certification and the Department-approved dispensary designation form, and the following:

a. A Maine driver’s license or

b. Other Maine-issued photographic identification, and

c. Verification of the patient’s designated primary caregiver, if applicable, and other documents required to ensure compliance with this rule and the statute.

P. Inventory. A registered dispensary is authorized to have the amount designated to the registered dispensary by the qualifying patient, that is, up to six mature marijuana plants and an incidental amount of marijuana per qualifying patient. The dispensary’s usual inventory supply must be based on the dispensary’s own cultivation and production, and the needs of qualifying patients who have designated the dispensary to cultivate. The Department will not consider the absence of marijuana strains or products containing marijuana as an inventory interruption if the marijuana or marijuana product has not been produced by the dispensary as usual inventory. The dispensary must disclose to the qualifying patient if the patient is provided marijuana that was not cultivated or produced by the dispensary.

1. Start-up Inventory. During the first 60 days after initial authorization, in order to build initial inventory, a newly-registered dispensary without any qualifying patients, may have 24 mature marijuana plants, and the amount of incidental marijuana and nonflowering plants that is permitted for a maximum of five patients.

2. Inventory reduction. When there is a decrease in the number of patients who have designated the dispensary to cultivate marijuana, the dispensary shall have ten business days to adjust the inventory to meet the requirements of this rule and the statute.

3. Daily inventory. Prepared marijuana must be kept under double lock and inventoried daily by two cardholders.

4. Dispensing inventory. Quantities of prepared marijuana must be weighed, logged in and signed out by two cardholders when dispensed.

Q. Trip tickets. Distribution of marijuana for medical use to a qualifying patient or a primary caregiver for use by a qualifying patient must be labeled with a trip ticket to identify the dispensary, the MMMP patient number if the patient is registered or a unique identifier assigned by the dispensary to non-registered qualifying patients, or the MMMP caregiver number if the caregiver is required to be registered or a unique identifier assigned by the dispensary if the primary caregiver is not required to be registered, the product, the amount and form, the time and date of origin, and destination of the product.

1. Persons authorized to transport marijuana on behalf of a patient shall take reasonable steps to deliver the product directly to the qualifying patient as a safety precaution and to alleviate concerns about drug diversion. The required trip ticket must identify the written certification number of the patient to whom the marijuana is being furnished; the source providing the marijuana; the registry identification number of the primary caregiver, if applicable; the amount of marijuana and form; the time, location and date of departure; and destination of the product.

2. A dispensary with a cultivation site that is not located with the retail dispensary must label the marijuana that is being moved between the cultivation site and the retail dispensary with a trip ticket that identifies the name and address of the dispensary, the address of the cultivation site, the time, date, origin and destination of the material being transported, and the amount and form of marijuana and marijuana material that is being transported.

R. Inventory supply records. The dispensary shall report the dispensary’s inventory supply. The dispensary shall record the marijuana strains cultivated by the dispensary and the marijuana products produced and furnished by the dispensary. The registered dispensary shall identify the marijuana strains and the marijuana products that are acquired and did not originate from the dispensary’s own cultivation and production. Inventory supply records must be available upon request by the Department.

S. Patient designation reporting. The registered dispensary must submit a monthly report of the total number of patients who have designated the dispensary. This report is due to the Department before the tenth day of the each month. The report must include the unique numeric patient identifier that appears on the patient’s valid written certification, date of designation and, if applicable, date of rescission.

T. Incident reporting. A registered dispensary must submit a Department-approved incident report form on the next business day after it discovers a violation of the requirements set out in this rule and the statute regarding the operation of dispensaries. The report must indicate the nature of the breach and the corrective actions taken by the dispensary. For the purposes of this rule, an incident includes:

1. Confidential information accessed or disclosed in violation of this rule and the statute;

2. Loss of inventory by theft, diversion or any other means;

3. Intrusion of the retail dispensary or the cultivation site, if marijuana is not cultivated at the retail site; and

4. Any other violations of this rule or the statute governing operation of the dispensary.

U. Illegal activity reporting. Any suspected illegal activity involving dispensary operations must be reported within 24 hours of suspicion to law enforcement and the Department. The dispensary must submit a written report to the Department using the dispensary’s incident report form.

V. Competitive selection process to add new dispensaries. The Department employs a competitive selection process when adding new dispensaries. A dispensary selected to be issued a registration certificate must comply with applicable the statute and this rule. During the first year of operation of dispensaries, the Department may not authorize more than one dispensary in any of the eight Public Health Districts of the Department.

1. Not-for-profit corporation. To be issued a dispensary registration certificate, a dispensary is required to incorporate pursuant to 13-B M.R.S. and to maintain the corporation in good standing with the Secretary of State. The dispensary must operate on a not-for-profit basis for the mutual benefit of qualifying patients who have designated the dispensary to cultivate marijuana.

a. By-laws. The bylaws of the dispensary and its contracts with qualifying patients must contain such provisions relative to the disposition of revenues and receipts as may be necessary and appropriate to establish and maintain its not-for-profit status.

b. Not required to be tax-exempt. A dispensary is not required to be a tax-exempt organization under 26 United States Code, Section 501(c)(3).

2. Notice of open application. The Department shall publish a notice of open application for dispensary registration certificates that includes the application requirements. Notices will appear, at a minimum, in the Kennebec Journal and on the Maine Medical Use of Marijuana webpage. Applicants may apply for one or more Districts, but must specify which Districts. The notice will contain the deadline for receipt of applications and the process for obtaining application material.

3. Scoring applications. A panel shall be convened by the Department to evaluate and score each application. The maximum point value is based on the quality of the applicant’s submission. The maximum points for each criterion are indicated in this rule. To be considered responsive, an application must have at least 70 points. The panel shall set forth through consensus comments the basis of the scoring decision for each criterion. A certificate of registration shall be issued in response to the application in a Public Health District with the highest score, as long as the application meets all criteria and the minimum score. In case of a tie, the panel reserves the right to seek supplemental information through written questions of the applicants and to raise or lower the applicants’ scores based upon the supplemental information.

4. Application fee. Applicants must submit an application fee of $12,000 for each District included in the application for the application to be considered by the panel. Unsuccessful applicants are assessed a $1,000 fee. Application requirements are set forth in this rule.

5. Selection criteria. Each application shall address all criteria and measures, even when no point values are assigned. Failure to address all of the criteria and measures will result in the application being considered non-responsive and not accepted for review.

6. Criterion 1: Submission of Required Information Regarding Applicant and Facility (up to 25 points)

a. The applicant shall provide the legal name of the corporation, a copy of the articles of incorporation and by-laws of the corporation. [no points assigned]

b. The applicant shall provide the proposed physical location of the retail dispensary and if marijuana is not cultivated at the retail site, the one site where marijuana may be grown, if a precise address has been determined.

i. For each proposed physical address, provide legally binding evidence of site control sufficient to enable the applicant to use and possess the subject property.

ii. If the applicant indicated that a precise address has not been determined, the applicant has at least identified the general location(s) where the facilities will be sited, and when. [up to 5 points]

c. The applicant shall provide evidence of compliance with local codes and ordinances for each physical address which will be used for dispensing and growing cultivating marijuana under the MMMP, and that neither location is within 500 feet of a preexisting public or private school boundary. A school in this context is interpreted to mean an entity that satisfies Maine’s compulsory education requirements. [no points assigned]

d. The applicant shall describe the enclosed, locked facilities that will be used in the growing, cultivation and sale of marijuana, the security measures and whether it is visible from the street or other public areas. [up to 5 points]

e. The applicant shall provide the name, address and date of birth of each principal officer and board member of the dispensary, along with a photocopy of their Maine driver’s license or other Maine-issued photographic identification card. Temporary new driver’s licenses are not acceptable. [no points assigned]

f. The applicant shall provide a list of all persons or business entities having direct or indirect authority over the management or policies of the dispensary, and a list of all persons or business entities having 5% or more ownership in the dispensary, whether or not the interest is in the land or buildings, including owners of any business entity which owns all or part of the land or building. [no points assigned]

g. The applicant shall provide the identity of any creditor holding a security interest in the premises, if any, and the terms of that agreement. The applicant shall identify any principal officer or board member of the dispensary who is a creditor and disclose the terms and conditions. [no points assigned]

h. The application shall include the required signed cover letter, and the completed application form supplied by the department. [no points assigned]

i. The applicant shall describe how the dispensary will operate on a long-term basis as a non-profit organization and a business plan that includes, at a minimum, the following: [up to 15 points]

i. A detailed description about the amount and source of the equity and debt commitment for the proposed dispensary that demonstrates the immediate and long-term financial feasibility of the proposed financing plan, the relative availability of funds for capital and operating needs; and the financial capability to undertake the project.

ii. A copy of the proposed policy regarding marijuana that is furnished without anything of value provided in return.

iii. The application indicates whether the applicant will accept unused excess marijuana from qualifying patients or primary caregivers, the process for assuring that the marijuana is not adulterated (how it will be tested) and how it will be redistributed (cannot be sold) to patients.

iv. Projected income statements for the first three years after implementation (forms to be supplied by the Department).

v. The applicant provides evidence that salaries are in line with the non-profit sector.

vi. Control of the organization is exercised by a governing body.

vii. There are sufficient board members to fire an executive or to remove board members.

viii. Plans for distribution of net revenues annually.

7. Criterion 2: Overall Health Needs of Registered Patients and Safety of the Public [up to 75 points)

a. The applicant demonstrates their proposed location and services will be convenient for qualifying patients and caregivers. [up to 10 points]

b. The applicant demonstrates a steady supply of marijuana for medical use will be available to the projected number of registered patients. [up to 10 points]

i. There is a start-up timetable which provides an estimated time from registration of the dispensary to full operation, and the assumptions used for the basis of those estimates.

ii. The applicant demonstrates knowledge of organic growing methods to be used in their growing and cultivation of marijuana.

iii. The applicant demonstrates that steps will be taken to ensure the quality of the marijuana, including purity and consistency of dose.

iv. The applicant discloses the various strains of marijuana to be dispensed and for which conditions and the form(s) in which marijuana will be dispensed.

c. The applicant demonstrates the knowledge and ability to manage a non-profit organization or other business. [up to 10 points]

i. Personnel.

ii. Fiscal (payroll, bookkeeping case management).

d. The applicant demonstrates that its plan for record keeping, inventory, quality control and security and other policies and procedures will discourage unlawful activity. [up to 20 points]

e. The applicant fully describes a staffing plan that will provide accessible business hours, safe growing and cultivation, and maintenance of confidential information regarding the cultivation sites and the identity of patient information. [up to 20 points]

f. The application indicates consent to pay for State and federal background checks for all proposed and future registry card holders. [no points assigned]

g. The application reflects a strong patient education component which addresses the diversity of qualifying medical conditions. [up to 5 points]

8. Award decision. The award decision shall be made in writing to the successful applicants.

a. Department determination. Subject to the limitations on the number and location of dispensaries, within 30 calendar days of receipt of a completed application form with a score of at least 70 points and with all required documents and required fees, the department shall register a dispensary and issue a certificate of registration to the highest scored person or entity that complies with the certificate of registration requirements set out in these rules and has the highest number of points of the applicants for the District.

b. Award is void. Failure of the award recipient to secure a certificate of registration within 120 days of receipt of the Department’s award decision may, at the discretion of the Department, render the award void. When an award is voided, the Department shall issue a written decision to void an award to operate a dispensary. The Department’s written decision to void an award to operate a dispensary is considered final agency action, subject to judicial review. Jurisdiction and venue for judicial review are vested in the Superior Court.

c. Notice of denial. The Department shall send a written notice of denial to non-selected applicants. Written notice of denial of an application or non-selection is considered final agency action, subject to judicial review. Jurisdiction and venue for judicial review are vested in the Superior Court.

d. Record. The record for review is the applications and any attached supporting documents, any other documents relied upon by members of the scoring panel in its decision, consensus comments of the panel, notices of denial and acceptance, and any other written communications between the Department and the applicants related to the decision.

W. Application for dispensary registration certificate. When the application period is open, a Dispensary Registration Certificate Application form may be available by request to the Department. The applicant must submit a completed Department-approved application form with all required documentation and the required fees. The application for a dispensary registration certificate must include, at a minimum, the following:

1. The legal name of the dispensary and the DBA (doing business as) name of the dispensary;

2. The physical address of the retail dispensary and the physical address of the location where marijuana will be cultivated for qualifying patients who have designated the dispensary to cultivate marijuana for them;

3. The distance to the closest school from the dispensary;

4. A copy of the dispensary’s articles of incorporation and bylaws, and evidence that the corporation is in good standing with the Secretary of State;

5. The name, address, proof of residency and date of birth of each principal officer and board member of the dispensary;

6. The name, address, proof of residency and date of birth of any person who is employed by the dispensary;

7. A copy of the dispensary’s policies and procedures;

8. A copy of the dispensary’s liability insurance policy;

9. A business plan demonstrating the on-going viability as a non-profit organization; and

10. Narrative describing how the applicant will meet all the selection criteria specified in this rule.

X. Renewal of dispensary registration certificate. The annual renewal of a dispensary registration certificate must comply with this rule and the statute.

1. A registered dispensary must submit a completed Department-approved application for the renewal of a current registration certificate with all required documentation and the required fees 60 days prior to the expiration date. The dispensary registration certificate renewal application is available upon request made by a registered dispensary to the Department. Failure to submit a timely, complete renewal packet may be grounds for denial of the renewal and may result in expiration of the registration certificate to operate the dispensary.

2. When submitting for a renewal of the registration certificate, registered dispensaries must update, as needed, all information submitted by the dispensary on its initial application or previous renewal for a dispensary registration certificate. Failure to submit all current, up-to-date information timely may be grounds for denial of the renewal and may result in expiration of the registration certificate to operate the dispensary.

3. Within ten days of its decision to approve or deny the renewal, the Department shall issue a written decision that either includes the renewed dispensary registration certificate or the grounds for denial and statement of deficiency.

4. When the dispensary submits a complete and timely application for renewal, the registration certificate remains in good standing until the Department issues a new registration certificate, a statement of deficiency or a denial.

SECTION 8

FEES

A. Fees submissions. Fees must be payable to the Treasurer, State of Maine . Payment may be made by bank check, money order, or electronically if an electronic payment method is available.

1. Nonrefundable. An unsuccessful dispensary registration certificate applicant is refunded the amount of the application fee, less $1,000. All other fees are nonrefundable.

2. Application fee reduction. The Department may apply fees that are less than the amounts specified in this section when the reduction of application fees is in conformity to the statute and this rule.

a. The percent in reduction of fees shall be applied equally across cardholders, but may not be less than the minimum fee required by statute.

b. The Department shall revise application forms to reflect any change in the fee required for the calendar year that follows a requisite review of the MMMP budget.

B. Registered patient fee. A qualifying patient may voluntarily register with the Department to secure a registry identification card for the lawful medical use of marijuana. There is no fee for a qualifying patient to apply for or renew a Department-issued registry identification card.

C. Registered primary caregiver fees. Registered primary caregiver fees are governed by this rule and the statute. The registered primary caregiver is required to submit the fees as follows, except that when a lesser amount is indicated on the Department-approved application forms, the applicant shall pay the lesser amount indicated on the Caregiver Application and, if applicable, the Employee/Board Member/Principal Officer Application.

1. Application and annual renewal fee; cultivation. The primary caregiver designated to cultivate marijuana must submit an application fee and an annual renewal fee of $240 per registry identification card with the completed application and renewal form for a registry identification card.

a. Hospice inpatient program and nursing facilities designated as primary caregivers: no fee. There is no fee for hospice inpatient programs and nursing facilities designated as non-cultivating primary caregivers by a qualifying patient.

2. Discontinued patient designation. The designation represents the choice of the qualifying patient and the primary caregiver’s commitment to assist the patient for the duration of the patient’s medical use. When a patient designation is discontinued or rescinded, the registered primary caregiver may accept a designation by a new qualifying patient in place of the former qualifying patient so long as that occurs within ten days of the rescission or discontinuance. The primary caregiver must comply with reporting required by this rule and the statute regarding changes to the registry identification cards and patient designations. Unless the registered primary caregiver possesses five registry identification cards at the time the patient designation is discontinued, the primary caregiver’s application for a registry identification card must be filed before the caregiver may assist a new patient.

a. Pro-rate registration fee. The Department shall prorate the registration fee paid by the primary caregiver for a registry identification card for the new qualifying patient by reducing it by $20 for each month left on the primary caregiver’s unexpired registry identification card for the former qualifying patient.

b. Caregiver registration status. When the primary caregiver complies with this section of this rule and the statute, the primary caregiver’s registration status continues in full effect without interruption.

3. Per patient fee paid annually. Instead of paying the fee at the time of designation by a qualifying patient, a primary caregiver may choose to submit an annual fee equal to $1,200, based on $240 per patient that allows the registered primary caregiver to change the qualifying patients who designate them to cultivate marijuana throughout the year without submitting the per-patient fee at the time of the change. The primary caregiver may be designated to assist up to the maximum number qualifying patients at any one time in accordance with this rule and the statute.

4. Criminal history record check fees. Each primary caregiver application or renewal for a registry identification card or application for a caregiver employee must submit payment for $31 payable to the Treasurer, State of Maine for the cost of criminal background checks. The background check fee is assessed on each registry identification card application or renewal including applications or renewals submitted by primary caregivers who are exempt from the application or renewal fee. The Department may waive this requirement for a cardholder applying for an additional registry identification card within 12 months of the cardholder’s completed background check.

D. Registered dispensary fees. Registered dispensary fees are governed by this rule and the statute. The registered dispensary is required to submit the fees as follows, except that when a lesser amount is indicated on the Dispensary Registration Certificate Application and Employee/Board Member/Principal Officer Application, the dispensary shall pay the lesser amount.

1. Dispensary registration certificate application fee. The $12,000 registration fee must be submitted with the dispensary’s completed registration certificate application.

2. Dispensary registration certificate renewal fee. The $12,000 registration renewal fee must be submitted annually with the dispensary’s completed registration renewal form. The annual renewal fee is non-refundable.

3. Dispensary registry identification card fee. The registered dispensary shall be assessed a $25 fee for each dispensary registry identification card issued for each principal officer, board member and employee of the registered dispensary.

4. Dispensary registry identification card; renewal fee. The registered dispensary shall be assessed a $25 fee for the annual renewal of each dispensary registry identification card issued for each principal officer, board member and employee of the registered dispensary.

5. Criminal history record check. Each principal officer, board member and employee of the registered dispensary is required to have a criminal history record check at least annually. The registered dispensary must include a check for $31 payable to the “ Treasurer, State of Maine” for the cost of criminal background checks with each application or renewal for a registry identification card for each principal officer, board member and employee of the registered dispensary. The Department may waive this requirement for a cardholder applying for an additional registry identification card within 12 months of the cardholder’s completed background check.

6. Change of location fee. A registered dispensary that changes its physical location or its cultivation location is required to submit a completed Department-approved change in location form to secure a new dispensary registration certificate. The Dispensary/Cultivation Change in Location Application is available by request. The dispensary shall be assessed a fee of $4,000 for each change of the dispensary’s physical location or its cultivation location.

E. Processing fee: reissued card. A processing fee of $10 shall be charged to registered cardholders for reissuing a lost card or a card reissued by the Department due to changes regarding the information on the registry identification card, such as an address change.

F. Laboratory testing fees. Registered dispensaries are responsible for the cost of required laboratory testing. A registered primary caregiver or registered dispensary will be responsible for the minimum testing fee required by statute and for laboratory charges not exceeding $300 per test specimen for each sample collected by the Department for compliance purposes.

SECTION 9

REGISTRY IDENTIFICATION CARD

A. Registry identification card required. Persons who are required to register pursuant to statute and this rule, must possess a valid registry identification card issued by the Department and Maine-issued photographic identification to establish proof of authorized conduct. Registry identification cards are issued to the applicant to serve as proof of conduct authorized by the Department and protections do not extend beyond the approved cardholder. Only the approved cardholder may possess the registry identification card issued and the registry identification card may not be transferred. Applicants must complete the applicable application form and submit the required fees. The Caregiver Application and the Employee/Board Member/Principal Officer Application forms are available on the Department’s website at http://www.maine.gov/dhhs/mecdc/public-health-systems/mmm/index.shtml .

1. Primary caregiver required to register. A primary caregiver who assists a patient who is not a member of the primary caregiver’s family or household is required to register and obtain a registry identification card for each patient. A registered primary caregiver may be issued up to a maximum of five registry identification cards.

a. An inpatient hospice or nursing home facility that assists a qualifying patient with the medical use of marijuana is required to register with the Department.

2. Primary caregiver not required to register. A primary caregiver who assists only patients who are family or household members is not required to register. A primary caregiver who is not required to register may voluntarily register with the Department to obtain a registry identification card for each patient the caregiver assists up to the maximum permitted by statute.

3. Qualifying patient is not required to register. A qualifying patient may voluntarily register with the Department and obtain a registry identification card. A qualifying patient who is not registered must possess the required written certification and a valid photographic identification in accordance with statute.

4. Principal officer, board member or employee required to register. A registered primary caregiver’s employee and a principal officer, board member or employee of a registered dispensary are required to register with the Department.

5. Denial of application. The Department may deny an application or renewal in accordance with the statute and this rule. Written notification of the Department’s decision to deny an application for or renewal of a registry identification card and the reason for the denial shall be sent to the applicant within 30 days of receipt of the completed application.

B. Voluntary patient application for a registry identification card. A qualifying patient may voluntarily register with the Department to secure a registry identification card for the lawful medical use of marijuana by submitting a completed Department-approved ­Patient Voluntary Registration Application form with required documentation. There is no fee for a qualifying patient who voluntarily registers with the Department. A criminal history record check in not required prior to issuing a patient a registry identification card. The Department shall issue a registry identification card to a patient who submits a completed application in accordance with 22 M.R.S. §2425 (1) and the application shall include, at a minimum, the following information:

1. Name, address and date of birth of the patient.

2. A copy of the written certification issued by the qualifying patient’s physician for the medical use of marijuana.

3. A copy of the patient’s Maine driver license or other state-issued photographic identification.

4. The patient who elects to cultivate some or all of the maximum allowed amount of marijuana for his or her own medical use must indicate that choice on the application and report the location of the patient’s cultivation area. The application must include the requested information regarding the primary caregiver or dispensary if one is designated to assist the patient.

5. Other information required by the Department.

C. Primary caregiver application for a registry identification card. A primary caregiver who is required to register must submit a completed Department-approved Primary Caregiver Application. A primary caregiver who is not required to register may voluntarily register. The application must include the required documentation and the registration fee, for each registry identification card, as applicable, up to a maximum of five registry identification cards. The application shall also include, but is not limited to the following information:

1. Name, address and date of birth of the primary caregiver;

2. A copy of the primary caregiver’s Maine driver’s license, or other Maine-issued photographic identification in compliance with this rule and the statute;

3. Name of the property owner and location of the primary caregiver’s cultivation location;

4. Personal identification number for purpose of filing taxes; and

5. Other information required by the Department.

D. Employee of a registered primary caregiver registry identification card. An employee of a registered primary caregiver must have a registry identification card. A completed Department-approved employee application form must be submitted with the required documentation and the registration fee for a registry identification card. The application shall include, at a minimum, the following information:

1. Name, address and date of birth of the applicant;

2. A copy of the applicant’s Maine driver’s license, or other Maine-issued photographic identification; and

3. Name of the applicant’s employer and location of that employer’s cultivation area; and

4. Other information required by the Department.

E. No work prior to issuance of card. Prior to receipt of a registry identification card, a primary caregiver who is required to register and the employee of a registered primary caregiver may not accept a designation form from a qualified patient, assist a qualified patient or possess or cultivate a patient’s marijuana for medical use.

1. Expedited determination: hospice or nursing facility. After verifying the information, the Department will approve or deny an application for or renewal of a registry identification card submitted by a hospice provider or nursing facility within five business days of the date the Department received the completed application for or renewal of a registry identification card with all required documents.

F. Notice to Department when employment or affiliation ceased. A primary caregiver must notify the Department within ten days of the date that the primary caregiver’s employee ceases to work for the primary caregiver.

1. Card expires after notice to Department when employment or affiliation ceased. The registry identification card of the registered primary caregiver’s employee expires when person ceases to work for the primary caregiver.

G. Card surrendered to Department. A primary caregiver must surrender to the Department any primary caregiver registry identification card that is no longer eligible for valid use, including the registry identification card of a primary caregiver’s employee.

H. Dispensary registry identification cards. The dispensary is required to obtain a registry identification card for each qualified principal officer, board member and employee of the registered dispensary. The registered dispensary must comply with provisions set forth in this rule and the statute.

1. Application form. The dispensary shall submit a completed Department-approved Employee/Board Member/Principal Officer Application for each registry identification card with the required documentation and the registry identification card fee. The application shall also include but is not limited to, the following information:

a. Name, address and date of birth of the qualified principal officer, board member, or employee;

b. A copy of the qualified principal officers’, board members’, or employees’ current Maine driver’s license or other Maine-issued photo­graphic identification; and

c. Other information required by the Department.

2. New principal officers, board members and employees: application required. Each time the dispensary has a new principal officer, board member or employee, it must submit an application form for a dispensary registry identification card for that new principal officer, board member or employee in compliance with this rule and the statute.

3. No work or affiliation prior to issuance of card. No principal officer, board member or employee may begin to work at or affiliate with the registered dispensary before he or she is issued a dispensary registry identification card.

4. Notice to Department when employment or affiliation ceased. The registered dispensary must notify the Department within ten days of the date that a principal officer, board member or employee ceases to work at or be affiliated with the registered dispensary.

5. Card surrendered. The registered dispensary must surrender to the Department any registry identification card that is no longer valid.

a. Dispensary action after repeat positive test result. The registered dispensary must require a principal officer, board member or employee to turn over his or her registry identification card if that person has confirmed positive results from two lawfully administered substance abuse tests within 12 months.

I. Annual renewal of card required. A completed Primary Caregiver/Employee/Board Member/Principal Officer Application, or a Qualifying Patient Voluntary Registration Application with all required documentation and the renewal fee must be submitted to the Department at least 30 calendar days before the registry identification card expiration date. The Department shall approve or deny the application in accordance with this rule and the statute.

J. Notification of change in cardholder’s status. The Department must be notified within ten days of a change in status or card information in accordance with the statute and this rule. A cardholder who fails to provide required notification may be subject to fines up to $150 per incident.

1. The patient’s primary caregiver or dispensary must notify the Department of a change in status as a patient’s designee in accordance with reporting requirements specified in this rule and the statute.

a. A registered primary caregiver must notify the Department within ten days of a change in patient designation, unless the caregiver has registered with a $1,200 annual fee and a new patient designates the primary caregiver within ten days of the rescinded patient designation.

K. Surrender old card or new card voided. The registry identification card with outdated information must be surrendered by returning it to the Department. It must be mailed or delivered to the Department within ten business days of the person’s receipt of the new registry identification card. Failure to timely surrender the superseded card to the Department may result in the Department voiding the newly issued card.

SECTION 10

COMPLIANCE and ENFORCEMENT

A. Compliance and enforcement. Compliance and enforcement are governed by this rule and the statute. The Department may refer criminal activity that is outside the scope of this rule and the statute to law enforcement.

1. An individual who engages in conduct authorized by this rule is subject to a review conducted by the Department to assess compliance with statute and rule.

2. Submission of an application for a registry identification card constitutes permission for a criminal history record check and on-site assessments which may include inspections to ensure compliance.

3. Any patient, primary caregiver or cardholder must comply with the Department’s request for evidence of authorized conduct and to inspect the premises and records, as appropriate, to assess compliance with this rule and the statute.

4. Failure to comply with provisions of statute and rule may result in remedial action up to, and including, directed corrective action; suspension, revocation and denial of a registry identification card or registration certificate; civil penalties; and referral to the appropriate agency, department or entity if the conduct is determined to be outside the scope of MMMP, is not appropriate for agency directed corrective action, or has not been rectified through correction action.

B. On-site assessment. The Department may initiate an on-site assessment, in accordance with the statute and this rule to ensure compliance prior to issuing a registry identification card, as a routine review, in response to an allegation of non-compliance or as part of a plan of correction.

1. During an on-site assessment, the primary focus of the Department will be:

a. Verifying information submitted in an application;

b. Reviewing records for all required documents, including, but not limited to designation forms, registration, and licenses, labeling and employee records, as applicable;

c. Conducting interviews;

d. Entering areas used for conduct authorized by this rule and the statute to ensure any marijuana, including plants, usable marijuana and incidental marijuana cultivated for medical use, is within the specified limit and is identifiable and maintained as required;

e. Taking samples of marijuana cultivated for medical use and products containing marijuana for medical use; and

f. Assessing conduct for compliance with the rule and statute.

2. Notification of an on-site assessment. No prior notice is required for the Department to initiate an on-site assessment to determine compliance.

3. Entry to inspect premises during an on-site assessment.

a. Inspection of a registered dispensary. In accordance with 22 M.R.S. §2428 (5), the Department may enter the dispensary and the one permitted additional location at which the dispensary cultivates marijuana at any time, without notification, to carry out an inspection.

b. Inspection of a registered primary caregiver. When the Department wants entry into an area reportedly used by a registered primary caregiver for conduct authorized by this rule to carry out an on-site assessment, the Department is not required to provide prior notification to the registered primary caregiver, including those who elect to cultivate at his or her residence.

i. Exception: registered inpatient hospice facility or nursing facility. The Department will provide a minimum of 24 hours’ notice before entering an inpatient hospice facility or nursing facility registered as a primary caregiver.

c. Inspection of a residence. When the Department determines entry into and inspection of areas within a person’s residence reportedly used for conduct authorized by this rule is necessary to ensure compliance, the Department will provide a notice of at least 24 hours prior to conducting an inspection of the person’s residence if that person is not required to register.

4. Prior to entry. The Department will show proof of identity when requesting entry to conduct an on-site assessment and to inspect an area reportedly used for conduct described under this rule and the statute. The Department will also provide the reason for the on-site assessment in standard written form developed by the Department prior to entry.

5. Precautions during on-site assessment. The Department will take measures to reduce potential disruption and contamination to the cultivation area during an on-site assessment.

6. Evidence. The Department may take samples, photographs or electronic copies during an on-site assessment to determine compliance.

7. Refusal of entry. If entry into an area reportedly used for conduct authorized by this rule and the statute is refused when the Department is conducting an on-site assessment, the Department will consider such action a failure to comply with provisions of this rule.

a. Upon refusal, the Department may refer to law enforcement as a progressive enforcement action when compliance cannot be determined.

b. Additionally, if denied entry by a cardholder, the Department may also take action to revoke the registry identification card or dispensary registration certificate.

8. On-site assessment report. An on-site assessment report will indicate whether any violation was identified and, if corrective action was taken, the outcome of that.

a. No action required. The Department will provide a report to the subject of the on-site assessment within 30 days of initiating the on-site assessment during which the Department did not identify a finding of non-compliance and no action was required.

b. Finding of non-compliance; enforcement action taken. The Department will provide a report within 30 days of initiating the on-site assessment during which the Department makes a finding of non-compliance, and may request a plan of correction.

c. Immediate enforcement action. The Department will document justification for any immediate enforcement action taken to suspend or revoke a registration certificate.

C. Allegations of non-compliance. The Department, upon receipt of a report alleging a participant’s conduct is in violation of this rule or the statute, will record the allegation and may conduct an on-site assessment to ensure compliance.

1. Department response to allegations of non-compliance. Responses to reports alleging non-compliance are determined by the Department and may include the following: an on-site assessment which may include an interview, a paper review, and an inspection of premises; suspension or revocation of a registry identification card or certificate; and referral to the appropriate agency, department or entity when the allegation or reported conduct is not within the scope of the MMMP or has not been resolved through Department directed corrective action.

a. Documentation of report. The Department will document reported allegations of non-compliance that result in an on-site assessment. Documentation will include the following:

i. Date of the report of alleged violation;

ii. The identity of the subject of the report; and

iii. The related provision of rule or statute.

D. Plan of correction. If a plan of correction is requested by the Department, the plan must be sent within five business days of receipt of the notice of non-compliance. The Department will provide notice of approval or denial of the plan of correction within five business days of receipt. The Department may issue a directed plan of correction if the Department does not receive a timely, acceptable corrective action plan, or the plan is not completed satisfactorily. Failure to submit a timely plan of correction or to comply with the approved plan of correction may result in further enforcement action by the Department up to and including revocation and referral of criminal activity to law enforcement. An acceptable plan of correction must include the following:

1. Action steps to correct any finding, violation or deficiency noted by the Department in the notice of non-compliance;

2. Specific deadlines for each corrective action step; and

3. Steps to reduce potential future violation.

4. The Department is not obligated to remediate non-compliance with a corrective action plan and may take action for immediate registration revocation i or other enforcement action.

E. Progressive enforcement. The Department may take progressive enforcement action when the Department is unable to determine compliance when conducting an on-site assessment, or when a finding of non-compliance is not resolved through technical assistance provided on-site or through other remedial action. Progressive enforcement action may include fines or penalties, required plan of correction, registration denial or revocation, and referral to law enforcement.

F. Court ordered fines. The Department may seek a court order imposing fines in accordance with this rule and the statute.

G. Denial of application or renewal for a registry identification card. The Department may deny an application or renewal for a registry identification card for the reasons stated in 22 M.R.S. §2425(3). The effective date of denial of an application or request for renewal for a registry identification card is the date shown on the Department’s written notice that is sent to the applicant’s or cardholder’s last known address. The notice issued by the Department will include the date of receipt of the application or request for renewal and reason for denial. When a request for renewal is denied, the registry identification card is void, unless timely appealed.

1. The Department may determine an applicant does not qualify for a registry identification card for reasons including, but not limited to, the following:

a. The applicant has failed to demonstrate compliance with this rule and the statute; and

b. The applicant is/will be using a location for conduct authorized by this rule and the statute where such conduct is prohibited by the host municipality’s local codes and ordinances. Reapplication for a registry identification card.

2. Reapplication for a registry identification card. When an application or renewal has been denied, the person may reapply for a registry identification card after 30 days from the date of denial. The person must demonstrate compliance with this rule and the statute, including those provisions that were the basis for the denial, and submit a completed Caregiver Application or Employee/Board Member/Principal Officer Application, all required documentation and required fees.

H. Revocation of registry identification card. The Department may revoke a registry identification card.The effective date of revocation of a registry identification card is three days after the date shown on the Department’s written notice that is sent to the cardholder’s last known address. A revoked registry identification card is void unless timely appealed.

1. Revoked card: no dispensary employment or affiliation. A principal officer, board member or employee of a registered dispensary whose card has been revoked by the Department is disqualified from serving as a principal officer, board member or employee of a registered dispensary.

I. Grounds for revocation of registry identification card. Grounds for revocation of a registry identification card are governed by this rule and the statute and include, but are not limited to, the following:

1. The Department determines the cardholder is non-compliant with this rule or the statute, including failure to cooperate with on-site assessment or allow entry for inspection.

2. The cardholder is convicted of a disqualifying drug offense.

3. The cardholder knowingly violates the confidentiality of information protected by the statute.

4. The cardholder commits, permits, aids or abets any illegal practices or unauthorized conduct related to the cultivation, processing, acquisition, dispensing, delivering or transfer of marijuana.

5. The cardholder no longer lives in Maine and the card is not surrendered to the Department. For the purposes of these rules, “living in Maine” means having a physical home address in Maine and living, in the aggregate, more than 183 days of the calendar year in Maine.

6. The cardholder fails to pay required State and local taxes, in accordance with 36 M.R.S. §175.

7. A cardholder commits a civil violation for fraudulent misrepresentation regarding authorized conduct, possession of prepared marijuana in excess of specified limits or failure to provide required notifications to the Department.

8. A cardholder has repeat forfeiture of excess marijuana.

9. A cardholder has been issued finding of repeated non-compliance, has failed to comply with the plan of correction or is no longer eligible for a registry identification card.

J. Failure to surrender a void registry identification card. A void registry identification card that is not surrendered to the Department is inactive and no longer valid.

K. Grounds for voiding a registry identification card and authorized conduct. The registry identification card is voided by the Department when any of the following occurs:

1. A new card is issued to a dispensary cardholder based on a change in status, and the superseded card is not surrendered to the Department.

2. A person is no longer employed by or affiliated with a dispensary, a registered primary caregiver or facility including a hospice provider or nursing facility and the card is not surrendered to the Department.

3. A person within 12 months has confirmed positive results from two lawfully administered substance abuse tests and the card is not surrendered to the Department.

4. A patient’s certifying medical provider notifies the Department in writing that the qualifying patient has ceased to suffer from a debilitating medical condition.

5. A request for registry identification card renewal is denied, and the card is not surrendered to the Department.

6. A revoked registry identification card is not surrendered to the Department.

L. Date card is void. The registry identification card is void ten days after the date shown on the Department’s written notice that is sent to the last known address of the cardholder and the dispensary, if applicable.

M. Termination of dispensary registration certificate. The termination of a dispensary registration certificate is governed by this rule and the statute. The Department may seek a district court order terminating a dispensary registration certificate.

1. The date of the termination is the date designated in the court order or the date appeal rights are exhausted, whichever is later.

N. Grounds for termination of dispensary registration certificate. Grounds for termination of a dispensary registration certificate include the following:

1. Failure to cooperate with required inspections, including failure to allow entry or interference with entry;

2. Violations of this rule, the statute or dispensary policies and procedures that govern the operation of a dispensary;

3. Committing, permitting, aiding or abetting any illegal practices in the operation of the dispensary;

4. Conduct or practices that are detrimental to the safety and welfare of qualifying patients or primary caregivers.

5. Providing information that is materially inaccurate or incomplete; and

6. Failure to pay required State and local taxes.

O. Emergency suspension of dispensary registration certificate. The Department may suspend a dispensary registration certificate on an emergency basis when the Department determines that the conduct of the dispensary threatened or may pose an immediate threat to the health or safety of a person or the public. In accordance with 5 M.R.S. §§ 10004(3) and (4) such suspension may not exceed 30 days. A threat to public health and safety, includes but is not limited to, providing product containing an unsafe level of a contaminant or pesticide.

P. Final agency action. The Department’s action pursuant to Section 10(G) or 10(H) is considered final agency action, as defined in 5 M.R.S. §8002(4), and subject to judicial review. Jurisdiction and venue for judicial review are vested in the Superior Court.

Q. Evidentiary record. The record for review is the Department’s file for that person, cardholder or dispensary for the period in question, any other documents relied upon by the Department in taking the action, the Department’s notice of the action, and other communications between the Department and the person, cardholder or dispensary regarding the action.

R. Notice and receipt of written notice. Prior to taking action under Section 10(G) or 10(H) the Department shall issue a written notice that includes the reason for the action, and the applicable rule or statute; the date the Department’s action takes effect; and the right to appeal the Department’s action. A person is deemed to have received written Department notification on the earliest of the following dates:

1. The date the person signs for receipt of the notice; or

2. The date that is three calendar days after the date the Department sends the notice by first class mail to the person’s last known address.

SECTION 11

INPATIENT HOSPICE AND NURSING FACILITIES

A. Voluntary participation of facility. Inpatient hospice providers and nursing facilities may voluntarily participate in the Maine Medical Use of Marijuana Program, in accordance with this rule and the statute to assist qualifying patients who use marijuana for medical purposes. Nothing in this rule compels an inpatient hospice program or nursing facility to permit marijuana for medical use at the facility by a qualifying patient. Only the inpatient hospice program or nursing facility assisting the patient with the administration of marijuana for medical use is required to be designated by the patient and register as a cardholder.

1. Home hospice programs. Home hospice programs are not subject to this rule and the statute. Only inpatient hospice programs are permitted to be a designated MMMP primary caregiver. However, in accordance with this rule and the statute, a qualifying patient may designate the individual home hospice employee who provides hospice care to the patient to also be his or her MMMP-designated primary caregiver, if the employer’s policies allow.

2. MMMP participation provisions are separate from licensing provisions. The requirements for MMMP participation are subject to the Maine Medical Use of Marijuana Act and this rule, not facility licensing laws.

a. MMMP and licensing documentation kept separate. MMMP documentation shall not be included in the medical record, chart or medication administration record (MAR) that is required under facility licensing laws. A qualifying patient’s MMMP record must be maintained at the facility as a separate record and shall include, but is not limited to, the inventory record, and documentation of marijuana administration.

3. Facility registration required Prior to assisting a patient residing in the facility, inpatient hospice providers and nursing facilities must submit a Department-approved Primary Caregiver Application form to become a registered primary caregiver in the Maine Medical Use of Marijuana Program. There is no application or renewal fee.

B. A qualifying patient in a hospice or nursing facility. A qualifying patient while in an inpatient hospice program or a nursing facility may participate in the Maine Medical Use of Marijuana Program in accordance with this rule and the statute. The facility's policy may require the patient to disclose possession when the patient is using or storing marijuana for medical use.

C. Designated primary caregiver is the facility. It is the inpatient hospice provider or the nursing facility, not their staff, that is designated a registered primary caregiver and must comply with applicable provisions of these rule and statute.

1. Not required to accept designation as caregiver. An inpatient hospice provider or nursing facility is not required to accept a qualifying patient’s designation as the patient’s primary caregiver. A facility may not assist the patient with the medical use of marijuana unless designated by the qualifying patient.

D. Registry identification cards for staff members. Designated inpatient hospice providers and nursing facilities must apply for registry identification cards for each individual staff member assigned to assist qualifying patients. A registry identification card is issued only to a staff person who is at least 21 years of age and not convicted of a disqualifying drug offense. The application process for a registry identification card is set out in this rule and the statute.

E. Criminal history record check. The designated facility must include the copy of a criminal history record check on each staff member for whom the facility submits a registry identification card application or renewal. The criminal history record check submitted by the facility must have been secured within the past 12 months. If the facility does not have the required criminal history record for an individual staff member, the facility must pay for and secure a criminal history record check to submit with the application for a registry identification card.

F. Facility registration and staff cards required prior to assisting patients. Prior to assisting qualifying patients, the designated hospice provider or nursing facility must be registered as a primary caregiver and MMMP registry identification cards issued to facility staff who will assist with the patient’s medical use of marijuana. No staff member should remove a registry identification card from the facility, except when the authorized staff member is transporting marijuana outside the facility to deliver to the patient or to legally dispose of the marijuana.

G. Qualifying patients in facility may not cultivate. Qualifying patients in a hospice inpatient program or a nursing facility may not cultivate their own marijuana.

H. Designate a second primary caregiver or dispensary to cultivate. The qualifying patient may either designate an individual, who is not a facility staff member, as a second primary caregiver to cultivate marijuana for the patient’s use or the patient may designate a dispensary to cultivate marijuana for medical use.

I. Marijuana acquisition: from dispensary or cultivating caregiver. A qualifying patient who is in an inpatient hospice program or a nursing facility may acquire marijuana for medical use in accordance with this rule and the statute. The facility shall document acquisition in the patient’s MMMP record.

1. Dispensary. A designated facility acquires marijuana from a dispensary by either sending a facility staff member with a registry identification card to the dispensary to pick up the marijuana or the dispensary delivers the marijuana to the facility.

2. Cultivating caregiver. When the qualifying patient has not designated a dispensary to cultivate, the patient may designate a cultivating primary caregiver to cultivate the marijuana for the patient’s use.

3. Products containing marijuana must be purchased. A facility may not possess, administer or furnish any other types of marijuana except prepared marijuana in an amount of two and a half ounces or less per qualifying patient that has designated the facility. A facility may not make marijuana into products to be ingested. Such products must be acquired or purchased from the designated dispensary or primary caregiver.

4. Trip tickets. The facility must retain the marijuana trip ticket from the dispensary or the cultivating caregiver with the marijuana during transport.

5. Storage of marijuana for medical use. Special storage consideration is required for marijuana and foods containing marijuana such that access is limited to only the patient and those authorized to assist the patient with the medical use of marijuana.

J. Inventory control. When the designated facility stores and maintains the inventory of medical use marijuana for a qualifying patient, the facility shall have a policy that addresses how inventory is recorded and access monitored.

1. Access to inventory. When marijuana is removed from the facility’s inventory, the cardholder must document this in the patient’s MMMP record.

2. Daily inventory. Prepared marijuana must be stored in accordance with the provisions for storing controlled substances and inventoried daily by two staff persons who have MMMP registry identification cards.

K. Assisting administration of marijuana. A facility assisting a qualifying patient with the medical use of marijuana shall have protocols in place that are consistent with this rule and the statute to address the storage, inventory monitoring and patient access and use. When the designated facility administers medical use marijuana for a qualifying patient, the facility is subject to the following provisions.

1. Facility staff. A medication technician or a nurse may administer marijuana as long as he or she has been issued a registry identification card for the designated facility. Designated facilities should limit the number of individual staff members who can assist the qualifying patient with marijuana for medical use.

2. Administration of marijuana in a facility. Only an authorized cardholder may assist a qualifying patient residing in a facility with the medical use of marijuana.

3. Disposal of unused marijuana. The designated facility must comply with this rule and the statute regarding the disposal of unused medical use marijuana.

4. Facility smoking policy. The designated facility shall establish and maintain a policy for the administration of marijuana for medical use that includes smoking, vaporizing and using non-smokable forms of medical marijuana.

L. Confidentiality. The fact that a patient is participating in the Maine Medical Use of Marijuana Program is confidential and each facility serving MMMP patients must develop “need to know” protocols.

M. Discharge from facility. A resident may not be discharged solely because the patient is a qualifying patient in the Maine Medical Use of Marijuana Program.

N. Protected conduct: hospice providers, nursing facilities, and staff. The protections and requirements of this rule and the statute are for conduct that is expressly authorized for hospice providers, nursing facilities and their staff that provide care for a qualifying patient in accordance with this rule and the statute.

O. Reimbursement. This rule and statute do not affect whether the facility may be reimbursed by other than private money for assisting a qualifying patient with the medical use of marijuana.

History

• Statutory Authority
• 22 M.R.S. Chapter 558-C
• 22 M.R.S. §42
• 22-A M.R.S. §205
• P.L. 2011, Ch. 383(6)
• History
• In November 2009, voters approved an initiated bill that changed Maine’s medical use of marijuana laws (IB 2009, c.1, §5). See 22 M.R.S.A. Chapter 558-C.
• The Maine Legislature amended the initiated bill. See Public Law 2009, Chapter 631 (Emergency Preamble) that took effect April 9, 2010.
• Emergency Rules (filing 2010-174) took effect May 5, 2010 for 90 days.
• ADOPTED
• (NEW) 10-144 C.M.R. Chapter 122, Rules Governing the Maine Medical Use of Marijuana Program
• EFFECTIVE DATE: August 4, 2010 – filing 2010-317
• AMENDED: December 31, 2012 – filing 2012-353
• AMENDED: June 19, 2013 – 2.7.1.2 added, 2.7.4.2 removed, filing 2013-142 (Emergency)
• AMENDED: (limited use of pesticides)
• AMENDED: September 17, 2013 – filing 2013-221
• AMENDED: February 1, 2018 – filing 2017-168
• TRANSFERRED: 2019 – from the Department of Health and Human Services to the Department of Administrative and Financial Services, Office of Marijuana Policy

Chapter 4 Marijuana Manufacturing Facilities

Code Me. R. 18-691 Ch. 4 Marijuana Manufacturing Facilities {#sec-18-691-ch.-4 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 4}

MARIJUANA MANUFACTURING FACILITIES

Maine Medical Use of Marijuana Program

Office of Marijuana Policy

Department of Administrative and Financial Services

AUGUST 1, 2019

General

The activities described in this rule may be considered a violation of federal law. Persons cultivating, manufacturing, testing, selling, purchasing or otherwise receiving medical marijuana, marijuana products, or marijuana concentrate may be subject to federal sanctions for what may otherwise be considered authorized conduct in the State of Maine, and compliance with the rule does not exempt registrants, their assistants, employees, or patients from possible federal prosecution. The Department is not responsible or liable for the actions of registered caregivers, dispensaries, manufacturing facilities, or inherently hazardous extraction facilities under the rule.

Section 1 – Administration

1.1 – Purpose and Scope

This rule is promulgated to establish standards and procedures related to manufacturing marijuana, marijuana concentrate, and marijuana products. This rule implements requirements of 22 MRS, chapter 558-C, including a marijuana track and trace system, and establishes minimum standards for manufacturing marijuana and marijuana products for medical use, including requirements for facility registration, requirements for engaging in marijuana extraction using inherently hazardous substances, staff qualifications, and security and testing. This rule protects public health and assures safe practices related to marijuana manufacturing, requiring a level of competency of facility personnel and appropriate equipment to process and extract marijuana. This rule establishes the form and content of initial and renewal applications for certification. This rule is in addition to the requirements of 10-144 Code of Maine Rules (“CMR”), chapter 122, Maine Medical Use of Marijuana Program Rule. In case of any inconsistencies between this rule and Chapter 122, this rule controls. (APA Office Note: 10-144 chapter 122 has been relocated to 18-691 chapter 2.)

1.2 – Authority

22 MRS, chapter 558-C.

1.3 – Definitions

For the purposes of this rule, the definitions included in this rule are in addition to the definitions contained in 22 MRS, chapter 558-C; unless the context otherwise indicates, the following terms have the following meanings:

Audit means a systematic and independent examination of facilities, equipment, personnel, training, procedures, record-keeping, data validation, data management and reporting aspects of a system to determine whether quality assurance, quality control and technical activities are being conducted as planned. An audit is conducted to determine whether these activities will effectively achieve quality objectives.

Act means the Maine Medical Use of Marijuana Act .

Assistant means a person paid to perform a service for a caregiver, dispensary, manufacturing facility or marijuana testing facility, whether as an employee or independent contractor, whose services include direct or indirect contact with marijuana or marijuana products.

Cannabidiol (CBD) is Chemical Abstracts Service number 13956-29-1.

Certificate of analysis means the document prepared by a testing facility that documents the analytical testing performed and results produced by the testing laboratory for a specific marijuana sample or product.

Department meansthe Department of Administrative and Financial Services.

Exempt caregiver means a natural person who is a caregiver for no more than two family members or members of the caregiver’s household, is exempt from registration pursuant to 22 MRS §2423-A(3)(C) and may not possess more than 8 pounds of marijuana.

Extraction means a process of extracting marijuana concentrate from marijuana using water, lipids, gases, solvents or other chemicals or chemical processes. The use of inherently hazardous substances in marijuana extraction is restricted by this rule.

Harvested marijuana means plant material harvested from a mature marijuana plant, except the stalk, leaves and roots of the plant that are not used for a qualifying patient’s medical use. Harvested marijuana includes marijuana concentrate and marijuana products.

Homogeneous means manufactured in a manner that results in the amount of marijuana or marijuana concentrate and cannabinoids within the product being consistent and reasonably equally dispersed throughout the product or throughout each portion of the product or concentrate; or a sample representative of the whole.

Inherently hazardous substance (“IHS”) means a liquid chemical; a compressed gas; carbon dioxide (CO₂); or a commercial product that has a flash point at or lower than 38 degrees Celsius or 100 degrees Fahrenheit, including, but not limited to, butane, propane and diethyl ether. For the purposes of this Rule, inherently hazardous substances include the potentially hazardous extraction methods listed at Section 4.1.2(B) and excludes any form of alcohol or ethanol.. A person or entity extracting marijuana is authorized to use only inherently hazardous substances approved by this rule.

Inherently hazardous substance registration means a valid registration issued by the Department authorizing a tier 1 or tier 2 manufacturing facility, patient, caregiver, dispensary, or freestanding entity to engage in extraction using the inherently hazardous substances approved by the Department only and that do not exceed thresholds established for required testing.

Local authorization means authorization from a municipality in accordance with 22 MRS §2429-D.

Manifest form means a record, either paper or electronic, required by the Department for a registered caregiver, dispensary, or licensed facility to document the possession and transfer of the marijuana or marijuana product on the premises, tracking all inventory, acquisition, sales and waste disposal.

Manufacturing facility means a registered tier 1 or tier 2 manufacturing facility or a person or entity authorized to engage in marijuana extraction using IHS under 22 MRS §2423-F.

Manufacture or manufacturing means the production, blending, infusing, compounding or other preparation of marijuana concentrate and marijuana products by a registered manufacturing facility, or by a patient, caregiver or dispensary as authorized under 22 MRS, chapter 558-C. Manufacturing includes, but is not limited to, marijuana extraction or preparation by means of chemical synthesis. “Manufacturing or manufacture” does not include cultivation.

Marijuana concentrate means the resin extracted from any part of a marijuana plant and every compound, manufacture, salt, derivative, mixture or preparation from such resin, including, but not limited to hashish.

Marijuana means the leaves, stems, flowers and seeds of all species of the plant genus Cannabis, whether growing or not, used for medical purposes and conduct authorized under 22 MRS, chapter 558-C.

Marijuana product means a product composed of marijuana, or marijuana concentrate and other ingredients that is intended for medical use. "Marijuana product" includes, but is not limited to, an edible marijuana product, a marijuana inhalant, a marijuana ointment and a marijuana tincture. "Marijuana product" does not include marijuana concentrate.

Marijuana testing facility means an entity licensed by the Department and certified to test medical use marijuana, including concentrates and products containing marijuana, for research and development purposes and to analyze contaminants in, and the potency and cannabinoid profile of, marijuana samples and products containing marijuana cultivated in accordance with 22 MRS, chapter 558-C.

Patient means a qualifying patient, or a visiting qualifying patient, who is18 years of age or older, and possesses a valid written certification for the medical use of marijuana obtained pursuant to 22 MRS §2423-B or a valid out-of-state credential for the medical use of marijuana pursuant to 22 MRS §2423-D.

Person means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

Premises means the structure or structures and land specified in the application for registration that is owned, leased, or otherwise held under the control of the applicant or registrant where conduct related to marijuana manufacturing takes place. The premises must be a contiguous area and may only be occupied by one registrant, unless otherwise permitted by statute and this rule.

Registration certificate means a document containing a unique registry identification number that permits the manufacturing of marijuana and marijuana products for medical use.

Registry identification card means a photographic identification card issued by the Department to an individual who is authorized to manufacture marijuana or marijuana products for medical use, in the capacity of or in the employ of a patient, caregiver, dispensary or manufacturing facility. For the purposes of these rules, the Department may issue a registry identification card to any person who holds an active and valid Individual Identification Card issued under Maine’s Adult Use Marijuana Program authorized by 28-B MRS, chapter 1.

Sample means a portion of marijuana or marijuana product containing marijuana regulated under this rule that may be analyzed for testing or for research and development purposes.

Sampler means a person authorized to collect samples of marijuana and marijuana products.

Sampling date means the date that a sample was collected from the manufacturer, in order to be reported as such, when reporting the sample results to marijuana testing facility clients.

Tetrahydrocannabinol (THC and delta-9 THC ) is substance defined in Chemical Abstracts Service number 1972-08-3.

Track and trace system means the record-keeping required and approved by the Department for registered caregivers, dispensaries, and manufacturing facilities to monitor inventory and transfers of marijuana for medical use for compliance purposes.

Visitor means any person, other than officer, assistant, or employee of the manufacturing facility, who enters into any areas of the manufacturing facility where marijuana is manufactured or stored.

Section 2 – Authorized Manufacturing; Patient, Caregiver and Dispensary Conduct

2.1 – Authorized Marijuana Manufacturing

2.1.1. Limited Authorization. A person or entity may not manufacture marijuana products or marijuana concentrate for medical use, including all forms and derivatives of the cannabis plant cultivated under 22 MRS, chapter 558-C, in whole or in part, except as explicitly authorized by and in accordance with this rule.

A qualifying patient, caregiver or registered dispensary may manufacture marijuana to produce marijuana product and marijuana concentrate for medical use as authorized in accordance with this rule, including limits on possessing and transferring marijuana and marijuana products for medical use.

A person or entity who is not a qualifying patient, caregiver or dispensary is required to apply for manufacturing facility registration to be authorized to manufacture marijuana for medical use. The person or entity not otherwise authorized to possess and manufacture marijuana for medical use may apply for a tier 1 or tier 2 manufacturing facility registration.

A caregiver or dispensary must apply for a manufacturing facility registration to manufacture marijuana for medical use on behalf of another caregiver or dispensary or to manufacture marijuana that is donated or acquired by wholesale.

An inherently hazardous substances registration (IHS registration) is required for any person or entity using inherently hazardous substances to extract marijuana, including a qualifying patient, exempt caregiver, or a freestanding person or entity. A tier 1 or 2 manufacturing facility is only authorized to extract with inherently hazardous substances if it also has an IHS registration.

Any natural person, including but not limited to officers or directors and assistants or employees, involved in manufacturing under these rules is required to hold a registry identification card as specified under 22 MRS §2425-A(2) and 22 MRS §2423-F(8)(B).

2.1.2. Permissible and Impermissible Activities. A person or entity manufacturing marijuana for medical use, whether or not required to register, must comply with all relevant Department rules.

No qualifying patient, caregiver, dispensary manufacturing facility or IHS registrant may employ or be a person who is under 21 years of age.

Manufacturing must be performed in a manner that results in the amount of marijuana and cannabinoid content within the portion or part of the product containing marijuana or marijuana concentrate being homogeneous throughout the product and consistent with product labeling.

Manufacturing edible products containing marijuana for medical use requires compliance with 22 MRS §2429-C, except that patients who manufacture edible products only for themselves, and exempt caregivers who manufacture edible products for their family members, or members of their household, in accordance with Department rules, are exempt.

A registered caregiver, dispensary, tier 1 manufacturing facility or tier 2 manufacturing facility producing an edible marijuana product must obtain a food establishment license.

Manufacturing-related equipment may not be used to simultaneously manufacture medical use marijuana with marijuana cultivated under the Marijuana Legalization Act , 28-B MRS, chapter 1.

A person or entity manufacturing marijuana under this rule must utilize reliable instruments and devices suitable for the weighing of the amount and kind of material to be weighed to uniformly and consistently calculate and report the amount of all forms of marijuana for medical use on the premises. The Department may require a statement of measurement or amount and investigate variations from the declared weight or counts for compliance purposes.

1. Units of harvested marijuana weight must be declared and expressed in pounds, kilograms, grams or milligrams.
2. Units of liquid measure must be declared and expressed in liters or milliliters.
3. Units must be expressed in terms of the largest whole unit with any remainder being in decimal fractions of the unit.
4. Whole numbers may be used in the statement of count for plants, packages and servings per package.
5. Pursuant to 22 MRS §2430-E(4), the calculation of the weight of marijuana that is not dried may be adjusted by a percentage to reasonably account for moisture content of the marijuana that is in need of further manufacturing. The date of harvest and conditions are factors to consider for weight.
6. A calculation of the weight of marijuana in a marijuana product may not include ingredients in the product other than marijuana, except that the weight of marijuana concentrate must be included whether the marijuana concentrate is possessed by itself or within a marijuana product.

No registered caregiver, dispensary or manufacturing facility may produce any marijuana manufactured product or marijuana concentrate in the distinct shape of a human, animal or fruit, or a shape that bears the likeness or contains the characteristics of a realistic or fictional human, animal, or fruit, including artistic, caricature, or cartoon renderings.

No registered caregiver, dispensary, or manufacturing facility may transfer or offer to transfer a marijuana manufactured product or marijuana concentrate that did not pass a test required by the Department and performed by a licensed marijuana testing facility.

Any marijuana, marijuana product or concentrate that fails a test required by the Department to verify or analyze the potency or the presence of residual solvents or other potential contaminants may not be dispensed unless remediated and the subsequent sample passes required testing.

Only approved inherently hazardous substances may be used by a person or entity registered with the Department. No Class 1 solvents may be used to manufacture marijuana.

2.2 – Qualifying Patient Authorized Manufacturing

A qualifying patient, who is not a visiting patient, may possess up to eight pounds of marijuana for medical use. A visiting qualifying patient may possess no more than two and one-half ounces of marijuana obtained from a registered caregiver or dispensary in a 15-day period.

A qualifying patient, including a visiting patient, may prepare marijuana, marijuana concentrate and marijuana products for medical use using the marijuana cultivated pursuant to 22 MRS, chapter 558-C.

A qualifying patient may manufacture extracts or concentrates using only generally safe extraction methods and potentially hazardous extraction methods using ethanol, including solutions of ethanol and potable water (See Section 4.1). Any other extraction methods are prohibited unless a registration to use inherently hazardous substances is obtained in accordance with this rule.

A qualifying patient, including a visiting patient, may provide marijuana cultivated under Chapter 558-C to an appropriately registered caregiver, dispensary or manufacturing facility for that caregiver, dispensary or facility to manufacture a product or concentrate on behalf of the qualifying patient.

A qualifying patient may not sell marijuana, or be otherwise compensated for furnishing marijuana to another person, or for assisting in the preparation of a marijuana product for, or on behalf of, another person. A qualifying patient, except a visiting patient, may furnish up to two and one-half ounces of marijuana to another qualifying patient if nothing is transferred in return or provided to the qualifying patient as compensation or remuneration.

2.3 – Caregiver Authorized Manufacturing

2.3.1. Exempt Caregiver Authorized Manufacturing.

An exempt caregiver may prepare marijuana, marijuana concentrate and marijuana products for medical use using the marijuana cultivated pursuant to 22 MRS, chapter 558-C for a family member or member of the caregiver’s household.. The caregiver may manufacture extracts or concentrates using only generally safe extraction methods and potentially hazardous extraction methods using ethanol, including solutions of ethanol and potable water (see Section 4.1). Any other extraction methods or solvents are prohibited unless a registration to use inherently hazardous extraction methods is obtained in accordance with this rule.

1. An exempt caregiver may not possess any more than eight pounds of harvested marijuana for medical use, including marijuana contained in marijuana manufactured products and concentrated marijuana concentrate.
2. An exempt caregiver is prohibited from assisting more than two qualifying patients.
3. An exempt caregiver using inherently hazardous substances must obtain an inherently hazardous substance registration from the Department.
4. An exempt caregiver may accept a limited amount of marijuana for medical use, as authorized under Chapter 558-C, to assist a qualifying patient who is a member of the caregiver’s family or household.
5. Any caregiver who manufactures marijuana or marijuana concentrate on behalf of another caregiver or dispensary must apply for a tier1 or tier 2 manufacturing facility registration.

An exempt caregiver producing edible products containing marijuana for medical use is not required to obtain a food establishment license in accordance with 22 MRS §2152, if the caregiver is providing the manufactured product only to the qualifying patient who is a family or household member.

1. An exempt caregiver is restricted to transferring no more than two and one-half ounces of marijuana to a qualifying patient at one time, except that, if the patient is a visiting qualifying patient, the caregiver is limited to transferring no more than two and one-half ounces to that visiting patient during a 15-day period.
2. An exempt caregiver may provide marijuana cultivated for medical use to registered caregiver, dispensary or tier 1 or tier 2 manufacturing facility to produce, on behalf of the caregiver, a marijuana product or concentrate for a qualifying patient who is a member of that caregiver’s family or household.
3. An exempt caregiver is permitted to be compensated for providing marijuana for medical use to a qualifying patient who is a member of the caregiver’s family or household. A caregiver exempt from registration may not be compensated for cultivating or furnishing marijuana plants, product or concentrate to anyone other than a family or household member.

2.3.2. Registered Caregiver Authorized Manufacturing. A registered caregiver must electronically enroll in the track and trace system chosen by the Department and pay required costs. Costs to use the monitoring system may include the vendor’s monthly license fee(s) and individual charges for identification tags that may be required to properly identify marijuana plants and marijuana products or concentrates. The registered caregiver must also comply with data collection and reporting requirements of the track and trace system implemented by the Department for all inventory and transfers.

A registered caregiver is permitted to possess and manufacture the total amount of marijuana produced by the registered caregiver’s cultivation under Chapter 558-C. A registered caregiver may manufacture marijuana the caregiver cultivated under Chapter 558-C to produce marijuana products and marijuana concentrate for medical use. The registered caregiver may manufacture extracts or concentrates using only generally safe extraction methods and potentially hazardous extraction methods using ethanol, including solutions of ethanol and potable water (see Section 4.1). Any other extraction methods or solvents are prohibited unless a registration to use inherently hazardous substances is obtained in accordance with this rule.

A registered caregiver may provide marijuana for medical use to an appropriately registered caregiver, dispensary or tier 1 or tier 2 manufacturing facility to produce, on behalf of the registered caregiver, a marijuana product or concentrate for a qualifying patient.

1. A registered caregiver who provides a qualifying patient prepared marijuana or marijuana product or concentrate manufactured using only the medical use marijuana cultivated by the caregiver and not using inherently hazardous substances is not required to register as a manufacturing facility.
2. A registered caregiver using inherently hazardous substances to extract marijuana must obtain an inherently hazardous substance registration from the Department.
3. A registered caregiver who manufactures marijuana and marijuana concentrate on behalf of another caregiver or dispensary is required to apply for a tier 1 or tier 2 manufacturing facility registration.

A registered caregiver is responsible for ensuring all marijuana plants, manufactured marijuana and marijuana concentrate are packaged and labeled in accordance with 22 MRS §§2429-A and 2430-G.

As part of a wholesale transaction, a registered caregiver may, in accordance with 22 MRS §2423-A (2)(K-1), acquire marijuana as inventory from another registered caregiver or dispensary. All marijuana plants, manufactured marijuana and marijuana concentrate must be stored securely, labeled for content, and accounted for in the track and trace system required by the Department.

1. The registered caregiver is required to obtain a tier 1 or tier 2 manufacturing facility registration if the registered caregiver manufactures wholesale marijuana or further processes wholesale or donated marijuana on behalf of another caregiver or dispensary.
2. The registered caregiver is not required to obtain a tier 1 or tier 2 manufacturing facility registration if the caregiver acquires, in wholesale, or by donation, marijuana, marijuana product or concentrate from a source authorized under Chapter 558-C and no further manufacturing is done by the registered caregiver to provide that marijuana to a qualifying patient for medical use.

A registered caregiver producing edible products containing the marijuana for medical use is required to obtain a food establishment license in accordance with 22 MRS §2152 and comply with any required testing and all applicable food safety standards.

A registered caregiver may conduct testing on manufactured marijuana for research and development purposes. Only the analysis conducted by a licensed marijuana testing facility may be reported for testing required by the Department.

2.4 – Dispensary Authorized Manufacturing

To assist qualifying patients with medical use of marijuana, a registered dispensary is permitted to possess and manufacture all marijuana produced from the plants cultivated by the dispensary under 22 MRS, chapter 558-C for a qualifying patient’s medical use.

A registered dispensary that manufactures marijuana for medical use must comply with tracking and record requirements established by 22 MRS §2430-G; and must establish credentials for and utilize any track and trace system implemented by the Department whenever such a system takes effect.

A dispensary manufacturing only the medical use marijuana cultivated by that dispensary and not using inherently hazardous substances is not required to register as manufacturing facility.

A dispensary is required to register as a tier 1 or tier 2 manufacturing facility if the dispensary manufactures on behalf of a caregiver, another dispensary, or manufacturing facility using marijuana provided to the dispensary by donation or wholesale transaction.

The dispensary is not required to obtain a manufacturing facility registration if the dispensary acquires marijuana for medical use from a source authorized under 22 MRS, chapter 558-C and no further manufacturing by the dispensary is needed for the dispensary to provide that marijuana to a qualifying patient.

A dispensary using inherently hazardous substances in marijuana extraction must obtain an inherently hazardous substance registration from the Department.

A dispensary that does not have an inherently hazardous substances registration may manufacture extracts or concentrates using only generally safe extraction methods and potentially hazardous extraction methods using ethanol, including solutions of ethanol and potable water.

The dispensary is permitted to dispense up to two and one-half ounces of harvested marijuana to a qualifying patient in one transaction, except that a dispensary assisting a visiting qualifying patient may not dispense more than two and one-half ounces of harvested marijuana to the visiting qualifying patient during a 15-day period. All transactions must be documented.

The registered dispensary is responsible for ensuring all marijuana plants, manufactured marijuana and marijuana concentrate are labeled and packaged in accordance with 22 MRS §§2429-A and 2430-G.

If the dispensary is manufacturing edible products containing marijuana, the dispensary is required to obtain a food establishment license in accordance with 22 MRS §2152 and comply with any required testing and all applicable food safety standards.

A dispensary may conduct testing on manufactured marijuana for research and development purposes. Only the analysis conducted by a licensed marijuana testing facility may be reported for testing required by the Department.

Section 3 – Authorized Manufacturing Conduct for Tier 1 and Tier 2 Manufacturing Facilities and IHS Registrants

The marijuana facility applicant must fulfill the following general requirements to apply for and annually renew a registration with the Department for manufacturing marijuana for medical use. Unless otherwise specified, all requirements of this section apply to tier 1 and tier 2 marijuana manufacturing facilities; patients, caregivers, dispensaries, and free-standing entities using inherently hazardous substances; and caregivers and dispensaries that manufacture marijuana or marijuana products on behalf of other authorized entities. Only facilities located and operating within the State of Maine may apply for registration. A marijuana manufacturing registration issued by the Department does not authorize the facility to cultivate marijuana or engage in retail sales of marijuana, nor does it exempt the facility from electrical permitting and inspection or food establishment licensing requirements.

3.1– General Provisions

3.1.1. General Requirements for Manufacturing Facility and Inherently Hazardous Substance Use Registration

Applications for registration must be in the name of the proprietors, partners, or corporation that directly owns the business. Applicants must be truthful on all application forms, attachments, and additional information required by the Department.

A marijuana manufacturing registration or inherently hazardous substances registration may not be issued unless the applicant has:

1. Provided a valid form of identification, verifying the applicant(s) is age 21 or older;
2. Completed all application forms prescribed by the Department;
3. Paid all required fees;
4. Submitted to a criminal history check conducted within the most recent 12 months for the applicant, and all principal owners, board members and assistants;
5. Demonstrated that the applicant has received local authorization to conduct manufacturing activities and/or use inherently hazardous substances if required by 22 MRS, chapter 558-C and these rules; and
6. Provided all additional documentation and information required by the application or Department.

A registration is valid only after the person or entity completes any enrollment process required by the Department, including payment of required fees and costs associated with use of the track and trace system.

A person required to register as a manufacturing facility or obtain an inherently hazardous substances registration must obtain a Department-issued registry identification card. If an entity, all facility directors, principal officers, board members, principal owners, employees and assistants must obtain a registry identification card.

3.1.2. Local Authorization for Manufacturing Facilities and the Use of Inherently Hazardous Substances

All applicants seeking to register a marijuana manufacturing facility and/or use inherently hazardous substances in a municipality pursuant to 22 MRS, chapter 558-C, must provide to the Department proof of local authorization to operate such a facility and/or use inherently hazardous substances. Local authorization must be indicated on forms provided by the Department and must include as an attachment a copy of any local ordinance or warrant article authorizing the applied-for conduct. In order to obtain from the Department a Local Authorization Form, the applicant must provide to the Department, in writing, the following information:

The name and date of birth of the applicant;

The type of manufacturing facility (tier 1 or 2) and/or a list of all inherently hazardous substances and potentially hazardous extraction methods to be used in the manufacture and extraction of marijuana, marijuana concentrate, and marijuana products;

A description of the manufacturing activities that will occur on the premises;

A diagram of the premises illustrating in which areas of the premises each manufacturing activity will occur;

If the property is also used as a residence, the location of that residence within the property and plans for complete separation of that residence from the facility including:

1. An entirely separate entrance from a public right of way; and
2. Acknowledgement that no solvent extraction will occur in the same building or structure where the residence is located;

A diagram illustrating the areas of the premises where any solvent, chemical and other inherently and/or potentially hazardous substances will be stored;

If required, the name, education and relevant experience of the person overseeing food safety procedures and requirements;

Equipment to be used, including UL or other safety listing;

Standard operating procedures for each process to be used to manufacture a marijuana product;

Plans for ventilation and filtration systems that prevent marijuana odors from significantly altering the environmental odor outside, while reducing the risk of fire or respiratory harm within the facility;

Any extraction methods and solvents to be used for extraction;

Background screening process for employees;

Plans for compliance with a relevant food safety, refrigeration, storage and sanitary standards;

Plans for compliance with packaging, labeling and other requirements;

Plans for disposal of marijuana and marijuana product waste;

A list of all safety and personal protective equipment to be used on the premises; and

Plans for compliance with all applicable building and electrical codes and federal and state environmental requirements.

3.2– Tier 1 and Tier 2 Manufacturing Facilities

3.2.1. Registration Requirements. Any person or entity manufacturing marijuana or marijuana products for medical use must register as a tier 1 or tier 2 manufacturing facility unless that person or entity is a patient, caregiver, or dispensary acting in compliance with 22 MRS, chapter 558-C and all Department rules and engages in conduct explicitly exempted from registration in Sections 2.2, 2.3 or 2.4 of this Rule.

3.2.2. Tier 1 and Tier 2 Manufacturing Facility Authorized Manufacturing.

A registered tier 1 or tier 2 manufacturing facility may possess harvested marijuana for manufacturing marijuana and marijuana products for medical use:

1. Pursuant to 22 MRS §2324-F(1) a tier 1 manufacturing facility may possess up to 40 pounds of harvested marijuana.
2. Pursuant to 22 MRS §2423-F(2) tier 2 manufacturing facility may possess up to 200 pounds of harvested marijuana.

A tier 1 or tier 2 manufacturing facility must track all inventory, including all transactions and transfers, in accordance with Department rules.

The facility is required to monitor possession limits using scales validated by weights and measure standards.

The facility must keep physically separate and account separately for marijuana and marijuana products regulated under this Section and any other marijuana the facility may be authorized to possess, including without limitation marijuana or marijuana products intended for adult use if the facility is also licensed for this purpose.

A registered tier 1 or tier 2 manufacturing facility may only engage in marijuana extraction using inherently hazardous substances if it obtains an IHS registration issued by the Department.

A registered manufacturing facility is required to track and trace inventory, transactions and transfers using the electronic system designated by the Department.

1. A registered manufacturing facility must maintain scales to reliably measure, manage and report inventory.
2. Any marijuana waste or abandoned marijuana product must be accounted for in the manufacturer’s electronic record.

The registered manufacturing facility must ensure that all proprietors, partners, board members, officers and assistants have valid registry identification cards.

A registered manufacturing facility may manufacture marijuana products or marijuana products using methods that are considered generally safe and potentially hazardous extraction methods using ethanol, including solutions of ethanol and potable water (see Section 4.1). Any other extraction methods or solvents are prohibited unless a registration to use inherently hazardous extraction methods is obtained in accordance with this rule.

Manufacture must be performed in a manner that results in the amount of marijuana or concentrate, and cannabinoid content within the product being homogeneous throughout the product and consistent with product labels.

A registered manufacturing facility may manufacture edible marijuana products or tinctures only if it acquires a food establishment license pursuant to 22 MRS §2167.

A registered manufacturing facility may accept harvested marijuana from a qualifying patient, registered caregiver, dispensary, or another registered marijuana manufacturing facility to manufacture a marijuana product or concentrate for that person or entity. The facility must transfer to that person or entity, in return, all the marijuana products and marijuana concentrate produced using the marijuana provided to the facility. The facility may not cultivate marijuana, engage in retail sale or participate in any way to transfer marijuana except as provided in 22 MRS §2423-F(4).

A registered manufacturing facility may conduct testing of marijuana products or marijuana concentrate manufactured by the facility for research and development purposes. Only testing performed by a licensed marijuana testing facility will be accepted when the test is required by the Department.

A registered manufacturing facility may receive reasonable compensation for producing marijuana products and marijuana concentrate.

3.3 – Manufacturing Facility Application Requirements

An application for initial registration or annual renewal for a tier 1 or tier 2 manufacturing facility must be filed with the Department. Any incomplete applications will not be processed and may be returned. A complete application for registration includes the completed application form prescribed by the Department along with all information required in the application forms approved by the Department.

Without limitation, required information includes:

1. A valid email address that the Department may use to send notice to the facility;
2. The physical address of the premises where an applicant will engage in the activities authorized under this section;
3. The name, address and date of birth of each proprietor, principal officer, director, board member and assistant of the facility or entity;
4. A notice indicating whether the applicant plans to engage in extraction involving inherently hazardous substances and whether it meets the requirements of Section 4.1 of these rules;
5. A premises diagram of the manufacturing facility that includes a brief statement of the principal activity to be conducted in each room or partitioned area, including where inherently hazardous substances may be used;
6. The name of each facility director or principal officer in charge of the manufacturing facility and each facility director or principal officers’ qualifications or job descriptions;
7. Resumes that document appropriate experience and education for personnel specified in Section 7;
8. The type of manufacturing registration for which the applicant is applying;
9. A copy of standard operating procedures specified on the application forms;
10. Payment of the non-refundable application fee; and
11. If required by these rules, proof that the entity seeking registration has received local authorization from the municipality where manufacturing and/or extraction activities will be conducted.

The facility is responsible for complying with the program-related information sent electronically to the email on record.

When the facility or entity changes its physical location, and when a person registered under this subsection changes the location at which the person engages in activities authorized under this section, the facility, entity or person must notify the Department prior to the relocation

3.4 – Inherently Hazardous Substance Registrants

3.4.1. Registration Requirements. Any person or entity manufacturing marijuana concentrate using inherently hazardous substances or potentially hazardous substances other than ethanol must obtain an IHS registration certificate from the Department. Any person or entity that has notified the Department of its intent to engage in extraction using inherently hazardous substances in accordance with 22 MRS §2423-F(3)(A)(4) and is otherwise in compliance with 22 MRS §2423-F(3)(A) may continue to operate pending issuance of an IHS registration from the Department.

3.4.2. Authorized Manufacture Using Inherently Hazardous Substances

IHS registrants may possess harvested marijuana for IHS extraction for medical use:

1. A freestanding IHS registrant who applies and is registered may possess up to 40 pounds of harvested marijuana.
2. A registrant that is also a qualifying patient, exempt caregiver, registered caregiver or tier 1 or tier 2 registered manufacturing facility may possess up to 40 pounds of harvested marijuana in addition to any other marijuana the registrant is authorized to possess.

A registered manufacturing facility is required to track and trace inventory, transactions and transfers using the electronic system chosen by the Department.

1. A marijuana facility registrant must electronically enroll in the track and trace system by the Department and pay required costs. Costs to use the monitoring system may include the vendor’s monthly license fee(s) and individual charges for identification tags that may be required to properly identify marijuana plants and marijuana products or concentrates.
2. A registered manufacturing facility must maintain scales to reliably measure, manage and report inventory.
3. Any marijuana waste or abandoned marijuana product must be accounted for the manufacturer’s electronic record.
4. The facility is required to monitor possession limits using scales validated by weights and measure standards.

The facility must keep physically separate and account separately for marijuana and marijuana products regulated under this section and any other marijuana the facility may be authorized to possess, including without limitation, marijuana and marijuana products intended for adult use if the facility is also licensed for that purpose.

The IHS registrant may manufacture marijuana concentrate using inherently hazardous substances for extracting marijuana as provided in this rule.

The IHS registrant must ensure that all assistants have a valid registry identification card.

The IHS registrant may accept harvested marijuana from a qualifying patient, a registered caregiver or a registered caregiver, or dispensary, to manufacture marijuana concentrate for that person or entity. The facility must transfer to that person or entity, in return, all marijuana concentrate produced using the marijuana provided to the facility. The facility may not cultivate marijuana, engage in retail sale or participate in any way to transfer marijuana except as separately authorized in 22 MRS, chapter 558-C.

The IHS registrant may conduct testing of marijuana concentrate manufactured by the facility for research and development purposes. Only testing performed by a licensed marijuana testing facility will be accepted when the test is required by the Department.

The IHS registrant may receive reasonable compensation for producing marijuana concentrate.

The IHS registrant is prohibited from modifying equipment after a professional engineer certifies the equipment as approved in writing by the engineer.

Use of unauthorized solvents by the registrant may result in an immediate revocation of registration.

3.5 – Inherently Hazardous Substance Registration—Additional Application Requirements

Any qualifying patient, caregiver, dispensary, or other manufacturing facility intending to use inherently hazardous substances in manufacturing must first obtain an inherently hazardous substance registration from the Department. A complete application for registration includes the completed application form prescribed by the Department along with all information required in the application form. Without limitation, required information includes:

Notice to the Department regarding their intent to extract using inherently hazardous substances as required pursuant to 22 MRS §2423-F(3)(A);

A list of any inherently hazardous substances to be used;

The process to be used;

A premises diagram of the manufacturing facility that includes a brief statement of the principal activity to be conducted in each room or partitioned area, including where inherently hazardous substances may be used;

Indication of whether the manufacturing facility is located in the same building as a residence or an area open to the public, along with a description of safety measures to protect the health and safety of other occupants of the building;

Certification by a professional engineer licensed in the State of Maine pursuant to 32 MRS, chapter 19 of the safety and location of the professional grade closed loop equipment used for marijuana extraction and the professional engineer's approval of the standard operating procedures for the marijuana extraction;

Certification by a professional engineer licensed in the State of Maine pursuant to 32 MRS, chapter 19, or a State or authorized local official, that the equipment used for marijuana extraction and the location of the equipment comply with state law and all applicable local and state building codes, electrical codes and fire codes, including the chapters of the most recent National Fire Protection Association Fire Code relating to marijuana extraction facilities; and

Documentation from the manufacturer of the marijuana extraction system, or certification by a professional engineer licensed in the State of Maine, showing that a professional grade, closed-loop extraction system that is capable of recovering the solvents used to produce marijuana concentrate is used by the person or entity.

3.6 – Department Action on Registration Application

In reviewing an application for registration, the Department may take one or more of the following actions:

Reject, deny or refuse to accept an application that is missing information or attachments required by the application;

Investigate applicants to verify all State and local requirements have been satisfied;

Verify all information and attachments to the application;

Investigate any and all applicants, assistants, and board members named in the application to ensure no person or individual has a disqualifying drug offense;

Request additional informationin order to fully verify all requirements for registration;

Permit the applicant to voluntarily withdraw the application; or

Extend the period of time for applicants to correct or cure applications that fail to meet requirements for registration by the Department.

3.7 – Denial of Application

3.7.1. Grounds for Denial of Application. The following acts or conditions may provide grounds for the Department to deny a registration application:

The applicant(s) or any principal officer, board member or assistant of the applicant:

1. Makes false statements or material omissions in connection with the application or during the verification of information in the application or its attachments;
2. Fails to cooperate with Department during the application process, which may include an inspection of the premises used for manufacturing activities;
3. Fails to submit information requested as part of a complete application; or
4. Fails to meet any of the requirements for registration;

The applicant(s) or any principal officer, board member or assistant of the applicant or person or entity authorized to engage in marijuana extraction has a disqualifying drug offense, or would be denied an approval, credential, certification, authorization or renewal under Title 20-A, section 6103 or 13011 based on that criminal history record check;

The applicant makes any changes affecting the accuracy and completeness of the application, including without limitation:

1. Changes to ownership, board members and required personnel;
2. Changes of location; or
3. Changes to corporate structure; or

The applicant engaged in marijuana extraction using inherently hazardous substances without first notifying and registering with the Department to conduct such activities. Except that any person or entity that has notified the Department of its intent to engage in extraction using inherently hazardous substances in accordance with 22 MRS §2324-F(3)(A) may continue to operate pending issuance of an IHS registration from the Department and such operation prior to registration shall not be considered grounds for denial of the registration application.

3.7.2 Process for Denial; Appeal. The Department will establish an objective process pursuant to the Maine Administrative Procedure Ac t, 5 MRS, chapter 375.

If the Department denies an application for a registration, it will notify the applicant in writing and provide reason for denial.

A denial of an application for registration is a final agency action, subject to judicial review. The Department may provide the opportunity for an administrative hearing.

3.8 – Annual Renewal of Registration

Registration is valid for up to one year from the date of issuance. A registrant for a marijuana manufacturing facility must apply for renewal of the registration no later than 60 days prior to the expiration of the current registration term to avoid lapse of authorization.

The Department may accept a renewal application within 60 days of the current registration’s expiration date.

The Department may administratively extend the expiration date of a registration, provided the registrant has submitted a complete renewal application.

A registrant may not operate or exercise the privileges of the registration at any time if the registration is expired, unless expressly agreed to in writing by the Department.

3.9 – Annual Criminal History Record Check

A marijuana manufacturing facility registrant or an applicant, and any principal officer, board member or assistant of a manufacturing facility is subject to annual criminal history checks beyond initial registration.

A registrant or an applicant and any principal officer, board member or assistant of a manufacturing facility must disclose all convictions of a disqualifying drug offense for the 10 years prior to the date of the application.

A registrant or an applicant, and any principal officer, board member or assistant of a manufacturing facility must provide court dispositions and other information requested by the Department for each conviction that is a disqualifying drug offense.

Any person subject to a criminal history record check who is administering marijuana on school grounds may be required to submit to fingerprinting and pay any associated fee. Fingerprints may be forwarded to the State Bureau of Identification (SBI) for State and national criminal history record checks. The person or entity who has an expired or revoked registration and is not subject to this rule may submit a written request to remove a fingerprint from the SBI files.

3.10 – Application Fees

An applicant is required to pay the following fees for initial manufacturing facility and/or IHS registration and annual renewal:

Tier 1. The annual fee for registering and renewing a tier 1 manufacturing facility registration is $150.

Tier 2. The annual fee for registering and renewing a tier 2 manufacturing facility registration is $250.

IHS registration. To use inherently hazardous substances for marijuana extractions, a qualifying patient, caregiver, dispensary, tier 1 manufacturing facility, or tier 2 manufacturing facility is required to complete an IHS registration application, including payment of the IHS registration fee of $350.

The cost of a criminal history check required for the applicant is $31 for each background check conducted through the State Bureau of Identification, and $60 if a federal or national background check is conducted.

All application fees are non-refundable.

Section 4 – Inherently Hazardous Substances

Extraction of medical marijuana shall be permitted as stated below and in accordance with this rule.All other extraction methods and substances are forbidden.

4.1 – Extraction Methods

Extraction of medical marijuana shall be permitted as stated below and in accordance with this rule.All other extraction methods and substances are forbidden.

4.1.1 Generally safe extraction methods. The Department permits, without an inherently hazardous substance registration, the following generally safe extraction methods, so long as they are done by a person or entity authorized pursuant to this rule:

Mechanical extraction using:

1. Potable water and ice made from potable water;
2. Dry screening or sieving;
3. Cryogenic or subzero manufacturing not involving a solvent; or
4. Pressure and temperature.

Infusion of marijuana in food grade fats or synthetic food additives:

1. Propylene glycol;
2. Glycerin,
3. Butter;
4. Olive Oil;
5. Other typical cooking fats. 1. Potentially hazardous extraction methods.

The Department will permit, without an inherently hazardous substance registration, potentially hazardous solvent extraction using a 99 percent or greater purity of the following solvents, using appropriate storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems methods and with an end result that does not exceed allowable limits specified by the Department:

1. Ethanol, including solutions of ethanol and potable water.

4.1.3 Inherently hazardous extraction methods. The Department will permit a manufacturing facility with an inherently hazardous substance registration to perform inherently hazardous solvent extraction using a 99 percent or greater purity of the following solvents, so long as the solvents are listed in the inherently hazardous substance registration and the end result does not exceed allowable limits specified by the Department:

Butane;

Propane;

Acetone;

Heptane;

Pentane; or

Any other liquid chemical, compressed gas, commercial product with a flash point at or below 100 degrees Fahrenheit, or CO₂, so as the solvent is approved by the Department in writing.

4.1.4. Additional Precautions for Extraction using Potentially Hazardous or Inherently Hazardous Substances.

All flammable gas must be odorized in compliance with state and federal regulations.

Pressurized canned flammable fuel, including without limitation butane or propane in containers intended for camp stoves, handheld torch devices, refillable cigarette lighters and similar consumer products, are prohibited for use in extraction.

A manufacturing facility performing potentially hazardous or inherently hazardous extraction shall be subject to inspection by the local fire department, building inspector and/or code enforcement officer to confirm that no health or safety concerns are present.

Any person or entity registered to use inherently hazardous substances must comply with requirements of the registration including but not limited to utilizing closed loop systems, meeting minimum required security measures, and obtaining necessary documentation, in accordance with 22 MRS 2423-F (3).

Any person or entity registered to use inherently hazardous substances may be required to demonstrate capability of recovering the solvents used to produce marijuana for medical use.

4.2 – Extraction by Patients

An inherently hazardous substance registration issued to a qualifying patient does not permit the qualifying patient to have assistants or employees perform extraction.

A qualifying patient registered to use inherently hazardous substances to extract marijuana solely for the qualifying patient’s own medical use is not required to enroll in the electronic monitoring system deployed by the Department.

Section 5 – Registered Manufacturing Facility Policies and Procedures

5.1 – Standard Operating Procedures

Each registered manufacturing facility must maintain written standard operating procedures that are easily accessible to on-site personnel for each product or concentrate it manufactures.

1. Standard operating procedures must be available for review on-site when requested by the Department.
2. Those procedures that the facility considers a trade secret must be clearly identified by the facility. The Department may consider specified trade secrets confidential if it determines such procedures meet the definition of trade secrets in 10 MRS §1542(4), except procedures or practices that are determined hazardous to public health and safety and violate authorizations of the Act are not trade secrets.

The standard operating procedures must, at minimum, include the following:

1. Detailed step-by-step instructions of each required process to manufacture marijuana products or concentrate, including but not limited to methods, use of equipment in accordance with manufacturer’s instructions, and applicable sanitary rules and safety measures.
2. For extraction involving inherently hazardous substances, additional detailed instructions to: 1. Conduct all necessary safety checks prior to commencing production; 2. Prepare marijuana for manufacturing; 3. Extract cannabinoids and other essential components of marijuana; 4. Purge any solvent or other unwanted components from a marijuana concentrate; and 5. Clean all equipment, counters and surfaces thoroughly;
3. Policies or procedures developed in accordance with the security requirements in Section 6 of these rules;
4. Emergency response procedures, including in case of a fire, chemical spill or other emergency;
5. Inventory control procedures for preventing unlawful diversion of marijuana and for tracking the amount of marijuana in possession of the facility;
6. Waste management procedures in compliance with Section 13 of these rules;
7. Policies and procedures for taking marijuana samples for required testing specified in Section 10 of these rules; and
8. Procedures for organizing tracking batches of marijuana product and concentrates, which includes tracking and reporting weight and/or count.

5.2 – Record Keeping and Audits

5.2.1 Record Keeping.

A manufacturing facility must maintain records of all transfers, inventory, transactions and chain of custody forms for a minimum of one year. All records must be made available to the Department upon request.

The Department, at its sole discretion, may require a registered manufacturing facility to account for all inventory through a centralized track and trace software system. A manufacturing facility must comply with all reporting requirements of the designated electronic data system.

All personnel records must be current and complete.

5.2.2. Internal Audit. The registered manufacturing facility must conduct an internal audit at least once per year.

The internal audit must at a minimum:

1. Examine the manufacturing facility’s compliance with the requirements of this rule and identify required updates to, including but not limited to, standard operating procedures, employee records, and training records that must be updated;
2. Report and reconcile any discrepancies in surplus or unaccounted marijuana held in inventory; and
3. Immediately report any material deficiencies and non-compliant findings to the Department along with a plan for correcting deficiencies (“corrective action plan”) and gaining compliance.

The Department may take administrative or disciplinary action based on the findings of the audit or place additional reporting requirements as part of a corrective action plan to ensure compliance is obtained.

If no material deficiencies or non-compliant findings are discovered, then the registered manufacturing facility will report the findings of the audit to the Department at the time of application or request.

Section 6 – Manufacturing Facility Security Requirements

6.1 – Security

The manufacturing facility must develop and implement security protocols that can ensure the security and tracking of marijuana on the premises, and prevent diversion, theft and loss of medical use marijuana.

The security protocol must be documented in writing and available to all registered manufacturing facility personnel during normal business hours.

The manufacturing facility must ensure that personnel have a thorough understanding of the security protocol and must take disciplinary action against any owner, officer, assistant or board member who negligently or willfully violates the security protocol.

6.2 – Access Control

The manufacturing facility must deter the unauthorized entrance into its premises by controlling access to those areas through the following means:

Limiting access to specific personnel who have cause to access the area to execute their specific job function and duties;

Implementing an access-control-card system capable of preventing unauthorized access through access control points and recording the transaction history of all entrants;

Using an actively monitored security alarm system;

Installing security cameras at all access points to the premises and in storage areas for medical use marijuana, products and concentrates; and

Maintaining a visitor arrival and departure log, which must contain, at a minimum, the name of the visitor, date and time of arrival and departure, and the purpose of the visit.

6.3 – Storage Areas

The manufacturing facility must store and secure marijuana with a commercial-grade lock in a room or cabinet capable of preventing diversion, theft and loss. Secured areas must be locked at all times, except when managing or retrieving a secured item or items. The total weight, measure or count of marijuana products and concentrates on the premises must be reported for compliance monitoring and auditing purposes.

The registered manufacturing facility must designate secure areas for storage of the following:

1. Marijuana, marijuana products and marijuana concentrates;
2. Test samples of marijuana for medical use;
3. Waste containing marijuana; and
4. Records of analytical tests, including certificates of analyses and data packages.

6.4 – Notification of Discrepancy

Unless otherwise specified, the registered manufacturing facility must notify the Department within one business day of discovering any of the following:

An unexplained loss of 5% or more of the inventory of marijuana, marijuana products or marijuana concentrates held at the registered manufacturing facility;

Diversion or theft of marijuana, any intentional or otherwise severe violations of internal security protocols by assistants, unauthorized or prohibited conduct, or any other criminal activity pertaining to the operation of the manufacturing facility; or

Any individual registrant, principal officer, board member or assistant that has been convicted of a disqualifying drug offense.

Section 7 – Manufacturing Facility Organization

7.1 – Responsibilities of Management

A manufacturing facility must designate a manufacturing facility director who is responsible for ensuring the facility operates in compliance with this rule. If the manufacturing facility is owned by a qualifying patient or caregiver, the owner must be designated as the facility director.

A registered manufacturing facility with more than 5 assistants must identify a principal officer in addition to the facility director.

The management shall ensure that a person-in-charge, who can cooperate with any inspection, on-site assessment or complaint response, is present on the premises of any manufacturing facility during hours of operation or apparent activity.

A registrant, manufacturing facility director, principal officers and person-in-charge are responsible for the management of the manufacturing facility and supervision of its assistants.

Registry identification cards are required for all proprietors, partners, board members, facility directors, principal officers and assistants pursuant to 22 MRS, chapter 558-C. A registry identification card may not be issued to any person who has not attained 21 years of age.

A registered manufacturing facility must:

1. Define the responsibilities of key personnel in the organization who have a management role; and
2. Have policies and procedures to ensure the protection of its qualifying patients’ confidential information, including procedures for protecting the electronic storage of confidential information.

A manufacturing facility with an inherently hazardous substances registration must define the responsibilities of key personnel in the organization who will be engaged in extraction using inherently hazardous substances.

7.2 – Director and Principal Officer Qualification Requirements

The facility director and, where applicable, principal officer(s) or person(s)-in-charge must have a high school qualifying degree, diploma or GED Equivalent.

The facility director and, where applicable, principal officer(s) or person(s)-in-charge may not have any conviction of a disqualifying drug offense.

7.3 – Personnel Documentation and Registrations

A manufacturing facility must maintain the following records and present to the Department upon request:

Records of valid registry identification cards for each owner, partner, principal officer, board member and assistant, including the name of the cardholder, the date of issuance and expiration date of the identification card;

A copy of the criminal history record check, if a copy had been provided to the facility by the Department, and unique identification number for each of its owners, partners, principal officers, board members and assistants;

Record of the qualifications of facility director and principal officer(s), or person(s)-in-charge, where applicable; and

Documentation of the responsibilities, training and supervision requirements of Sections 7.1 and 7.4 .

Section 7.4 – Personnel Training and Supervision

The registered manufacturing facility director or principal officer must:

Provide adequate supervision of staff, including trainees, by persons familiar with standard operating procedures;

Ensure all staff has demonstrated capability in the activities for which they are responsible;

Formulate goals for education and training of the facility’s personnel;

Have policies and procedures for identifying training needs and providing training of personnel; and

Ensure that the training of the registered manufacturing facility personnel is kept up to date (on-going) by providing the following:

1. Training documentation on equipment, techniques, standard operating procedures and security protocols; and
2. Training in ethical and legal responsibilities.

Section 8 – Packaging, Labeling and Marketing Manufactured Marijuana

Packaging and labeling for all transfers, including wholesale, must specify content and declare the quantity of contents in terms of weight, measure or count; list the registry identification card number and registry identification number of the source, if applicable; date of transfer; the identifier(s) required for the Department’s monitoring system, if any; and results of any required testing conducted by a licensed marijuana testing facility, if any. Marijuana for medical use on the premises, whether in process, stored or displayed, must be secure, measured and distinguishable from other products. Packaging and labeling must be in accordance with 22 MRS §§2423-F and 2430-G.

8.1 – Packaging Requirements

A registered caregiver, dispensary or manufacturing facility must package all marijuana products and marijuana concentrates prior to transfer to a qualifying patient. The packaging must:

Be tamper-evident and maintain an unbroken seal;

Completely enclose the entirety of marijuana product or concentrate;

Contain labeling on an easily identifiable portion of the packaging as specified in Section 8.2 of this rule; and

Conform to packaging and labeling requirements under applicable licenses held by the manufacturing facility, including required food establishment licenses, if any.

However, nothing in these rules shall be construed to prohibit the packaging of marijuana products or concentrates in reusable packaging provided to the registered caregiver, dispensary, or manufacturing facility by a qualifying patient for the packaging of marijuana products or marijuana concentrates for use by that same qualifying patient, so long as such packaging conforms with the requirements above.

8.2 – Labeling Requirements

All manufactured marijuana products and marijuana concentrates must be labeled and include the following information:

1. The registry identification number of the manufacturing facility;
2. Ingredients other than marijuana contained in the marijuana product or marijuana concentration;
3. Any pesticides, chemicals, solvents or other substances used to manufacture the marijuana product or concentrate;
4. A unique identifier to trace the marijuana used to manufacture the marijuana product or marijuana concentrate. This could be a batch number, track and trace identifier or other means required by the Department.
5. Results from the certificate of analysis for testing required by the Department and performed by a valid licensed marijuana testing facility, if any: 1. If the marijuana product or concentrate has undergone testing by a valid marijuana testing facility, the product or concentrate must bear a label displaying the THC and CBD content of the cannabinoid profile; a yes-or-no indication that the product has passed testing for pesticides, residual solvents and other contaminants; and a link to the online results of the full certificate of analytical results; 2. If the marijuana product or concentrate has not been tested by a licensed marijuana testing facility, and no such test is required, the product or concentrate must display a label with the following disclosure “THIS PRODUCT HAS NOT UNDERGONE TESTING FOR CONTAMINANTS, PESTICIDES, RESIDUAL SOLVENTS OR OTHER CONTAMINANTS BY A LICENSED MARIJUANA TESTING FACILITY. THIS PRODUCT MAY CONTAIN HARMFUL MATERIAL AND COULD BE HAZARDOUS TO YOUR HEALTH.”;
6. A warning indicating that medical marijuana is present, that the marijuana product is not FDA approved, and, the Department’s universal symbol indicating the presence of marijuana; and
7. A warning that marijuana product or concentrate should be kept away from minors and that caution must be exercised before driving or using heavy machinery.

No marijuana product or concentrate label from a registered manufacturing facility may include information about the THC or CBD contents or the profile of the product, or values of any test required by the Department unless the values are based on a homogenized sample tested by an accredited marijuana testing facility, and, if the Department has licensed a marijuana testing facility, values must be reported as provided in the certificate of analysis from a licensed marijuana testing facility, if any.

8.3 – Education Materials

A manufacturing facility must have available for the recipient of the manufactured marijuana educational materials related to the marijuana product or concentrate and any solvents used by the facility. The educational materials must include the following, as applicable:

Identification of the source of each informational material;

Information about methods of administration, the marijuana product or concentrate and how it should be correctly used;

Information on the risks of using marijuana, including prior to driving or operating heavy machinery, during pregnancy or while breastfeeding;

Information about the manufacturing process used to manufacture the marijuana product or concentrate, including any solvents used; and

A recommended dosage guide for edible or tincture products and a warning that effects may take up to two hours to experience. Each 10mg of THC will be considered a dose for purposes of the guide.

Section 9 – Required Testing of Manufactured Marijuana

A person or entity required to register to manufacture marijuana for medical use, including a manufacturing facility or anyone using inherently hazardous substances, may be subject to testing requirements established by the Department. Testing conducted by a marijuana testing facility licensed by the Department is considered valid 3rd party testing to verify product labels and is acceptable for required testing.

Section 10 – Manufactured Marijuana Sampling Requirements

10.1 – Sampling Procedures

A registered manufacturing facility, and IHS registrants must have written standard operating procedures for submitting a sample to a marijuana testing facility which must include:

1. Attaching a label with the date the sample was taken and identified product batch;
2. Obtaining a homogenous sample from a marijuana product and concentrate in its final form prepared for medical use;
3. Procedures for determining the volume of sample to be collected from each production batch;
4. Methods for obtaining a random sample from each production batch of a marijuana product or concentrate in its final form that is representative of the batch;
5. Procedures for maintaining chain of custody forms of the sample;
6. Factors such as storage, environmental conditions and transportation of the batch or sample; and
7. A policy for retaining all documents used in each part of the sampling process and all sampling chain of custody forms. The documents are required for each batch sampled.

A registered manufacturing facility that has samples obtained by a sampler employed by a marijuana testing facility shall comply with that marijuana testing facility’s sampling procedures.

A registered manufacturing facility must maintain a copy of all sampling forms used by the marijuana testing facility.

A registered manufacturing facility may not transfer a sample to a testing facility without including a chain of custody form for each sample.

A registered manufacturing facility that has a sample pending and awaiting a certificate of analysis from the marijuana testing facility must quarantine all marijuana product or concentrate from the sampled batch, and refrain from labeling any marijuana products or concentrates produced from the batch until the certificate of analysis has been received from the marijuana testing facility.

10.2 – Certificate of Analysis

A copy of the certificate of analysis that correlates with the marijuana used in the manufacturing must be available to the person or entity receiving the manufactured product or concentrate.

The registered manufacturing facility must retain every certificate of analysis it receives from a marijuana testing facility in accordance with Section 10.1, paragraph E for each sample submitted.

Section 11– Remediation of Manufactured Marijuana

A registered manufacturing facility or IHS registrant may be permitted to remediate a batch of marijuana product or concentrate when the sample tested exceeds the allowable level for residual solvents, or fails potency testing or visual inspection for filth and foreign materials.

If a marijuana product or marijuana concentrate has failed a residual solvent test or a visual inspection for filth and foreign materials, it may be destroyed or remediated in accordance with this rule and the marijuana testing facility’s standard, and in a manner that safely and effectively addresses the reason for the failed test result.

If as test is required by the Department, any manufactured marijuana that is remediated after a failed test must be re-sampled and tested again by a licensed marijuana testing facility before the marijuana product or concentrate may be transferred.

When informed of a failed residual solvent test or visual inspection for filth and foreign materials on a marijuana product or marijuana concentrate, the manufacturing facility must remediate or destroy all the failed sample batch and any marijuana products or marijuana concentrate that reasonably would have the same issues.

A registered manufacturing facility may only transfer marijuana products or marijuana concentrates that have failed testing to another manufacturing facility for remediation purposes. The sending manufacturing facility must disclose the failure to the receiving manufacturing facility prior to transfer and provide the test report.

Any registered manufacturing facility engaging in remediation must have standard operating procedures for detecting and removing solvents, filth and foreign materials, and harmful contaminants from a marijuana concentrate or product.

A registered manufacturing facility may not remediate a marijuana product or concentrate when the product or concentrate failed any test for microbials or metals required by the Department.

Section 12– General Reporting Requirements for Manufacturing Facilities

A manufacturing facility must submit the following information to the Department on an annual basis electronically if the Department has implemented a track and trace software system, or if requested by the Department, on forms provided by the Department:

1. A current list of the names of all owners, partners, board members, principal officers, assistants;
2. Annual revenue for the last fiscal year;
3. The number of samples tested by a marijuana testing facility, number of samples that failed testing standards, number of batches destroyed and number of batches remediated;
4. Any standard operating procedures added or modified during the year; and
5. Results of the annual internal audit conducted by the manufacturing facility.

A manufacturing facility registrant must report the following information to the Department within 3 days of discovery:

1. A change in facility director, principal officer or board member; or
2. A conviction of a disqualifying drug offense conviction by an assistant, board member or principal officer.

A manufacturing facility registrant must report to the Department at least 30 days beforehand any change in the physical address of the facility or entity, or the physical address where a registrant who is an individual will engage in the activities authorized under this Rule. The registrant must complete a change of location form.

Section 13 – Waste Disposal Requirements

A registered manufacturing facility must account for and dispose of all marijuana waste in a manner that prevents unlawful diversion and does not violate any other applicable federal, state or local laws and regulations governing the handling of waste.

All marijuana waste must be weighed and recorded from the time it becomes waste until the time it is disposed of in a secured receptacle in the registrant’s possession.

Marijuana waste must be rendered unusable and indistinguishable from non-marijuana waste by breaking up, grinding, unpackaging, combining and mixing with other solid waste.

Once marijuana waste is rendered unusable and indistinguishable, it must be placed in a secured receptacle in registrant’s possession until it is disposed of in compliance with all federal, state and local laws and regulations.

A registered manufacturing facility may not dispose of marijuana waste in any other way unless such disposal is in conformance with another method approved by the Department or its designee.

Section 14– Enforcement

14.1 – General Provisions

Unless otherwise specified, the Compliance and Enforcement procedures specified in 10-144 CMR, chapter 122, section 10 also apply to manufacturing facilities. Any conduct not authorized under this rule or Chapter 122 is prohibited. If there is a conflict between Chapter 122 and this rule, this rule applies. (APA Office Note: 10-144 chapter 122 has been relocated to 18-691 chapter 2.)

Any person or entity required to enroll in the track and trace system or register as a manufacturing facility under this rule has 60 days from the effective date of this rule to enroll and complete an application and obtain local approval. After that time no person or entity may manufacture marijuana or make concentrates using IHS except as permitted in this rule.

Conduct not authorized is prohibited. Violation of these rules or of 22 MRS, chapter 558-C may result in compliance and enforcement actions including directed corrective action; suspension, revocation and denial of a registry identification card or registration certificate; civil penalties; and referral to the appropriate agency, department or entity if the Department determined that the conduct is not appropriate for agency directed corrective action or the violation or deficiency has not been rectified through corrective action.

14.2 – Compliance Inspection

The Department may require an inspection prior to issuance of a manufacturing facility registration. As stated in 22 MRS §2430-G(2)(D), the Department may, without prior notice, inspect premises to ensure compliance with conduct authorized under this rule during regular business hours and hours of apparent activity. The Department will show proof of identity when requesting entry and to inspect an area reportedly used for conduct described under this rule. Prior to entry, the Department will also provide a written statement of the reason for inspection in a standard form.

A registered manufacturing facility or other entity authorized under this rule is required to make available any records, forms, protocols, documents or any other type of information required by the statute and this rule to the Department within ten (10)business days of a request from the Department. Delay may result in progressive enforcement action.

The Department may audit any registered manufacturing facility or other entity authorized under this rule to manufacture medical use marijuana to ensure compliance. The audit may include the tracking system used by the person or entity to record transactions and transfers and the Department's chosen tracking and tracing system.

When the Department is conducting an inspection, the Department will consider refusal to permit entry or access to inspect records or premises or willful avoidance of inspection a failure to comply with provisions of this rule, and upon a second failure to comply with inspections, the Department may take further enforcement action.

1. The Department may refer to law enforcement as a progressive enforcement action when compliance cannot be determined.
2. If denied entry more than one time by a cardholder, the Department may take action to revoke the registry identification card, individual identification card or registration certificate.

14.3 – Court Ordered Fines

The Department may seek a court order imposing fines.

A person who knowingly violates the confidentiality of information protected by 22 MRS, chapter 558-C commits a civil violation for which a fine of up to $1,000 may be imposed. This provision does not apply to a physician, staff of a hospice provider or nursing facility named as a primary caregiver or any other person directly associated with a physician or a hospice provider or nursing facility that provides services to a registered qualifying patient.

A person who is employed by or is a principal officer or board member of a manufacturing facility, if that person has been convicted of a disqualifying drug offense, commits a civil violation for which a fine of not more than $1,000 may be adjudged.

14.4 – Department Disciplinary Actions

The Department has the authority pursuant to Title 22, chapter 558-C and Title 5, chapter 375, subchapter 7 to administer disciplinary actions for violations of the statute and this rule.

When taking action, the Department will issue a written notice that includes the following information:

1. The nature of the violation and the specific rule violated;
2. The date the department’s action takes effect; and
3. If the Department is taking action to revoke a registration or certificate issued under this rule, the term of revocation for which the person is not eligible to apply for registrations issued by the Department.

A person or entity aggrieved by the Department’s actions may pursue the right to appeal the Department’s action as provided in the notice by requesting an administrative hearing or informal review.

History

• STATUTORY AUTHORITY: Title 22 ch. 558-C
• EFFECTIVE DATE: August 1, 2019 – filing 2019-140
• ACCESSIBILITY CHECK: July 7, 2025

Chapter 5 Rules for the Certification of Cannabis Testing Facilities

Code Me. R. 18-691 Ch. 5 – Rules for the Certification of Cannabis Testing Facilities {#sec-18-691-ch.-5 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 5}

General

This rule is promulgated to establish the requirements for certification by the Maine Center for Disease Control and Prevention of cannabis testing facilities licensed under Maine’s Adult Use Cannabis Program administered by the Office of Cannabis Policy, Department of Administrative and Financial Services, in order to mitigate potential threat to public health and safety by establishing minimum standards and procedures for the operation of cannabis testing facilities to provide information to consumers of adult use cannabis and cannabis for medical use. This rule, along with the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR, ch. 10, Rules for the Licensure of Adult Use Cannabis Establishments, 18-691 CMR, ch. 20, the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, the Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40 collectively are known as “the rules governing the adult use cannabis program”.

The activities described in this rule may be considered a violation of federal law. Persons cultivating, manufacturing, testing, selling, purchasing or otherwise receiving adult use cannabis or cannabis for medical use, or cannabis products derived from the same, may be subject to federal sanctions for what may otherwise be considered authorized conduct in the State of Maine, and compliance with this rule does not exempt licensees, their employees or customers from possible federal prosecution. Neither the Department of Administrative and Financial Services nor the Department of Health and Human Services is responsible for the actions of licensed and/or certified cannabis testing facilities under this rule.

§ 1 - Cannabis Testing Facility Certification Program Established.

(1) Statutory Authority. The Department of Administrative and Financial Services (referred to heretofore as DAFS), acting through its Office of Cannabis Policy (referred to heretofore as OCP), has promulgated the following rule in accordance with the statutory authority provided in 28-B MRS §104-C, in order to mitigate potential threat to public health and safety for the purpose of implementing, administering and enforcing the provisions of 28-B MRS, chapter 1. The Department of Health and Human Services (referred to heretofore as DHHS), acting through its Center for Disease Control and Prevention (referred to heretofore as the CDC) shall implement the certification program described herein in accordance with the statutory authority provided in 22 MRS § 569.

(2) Department Authority. DAFS and DHHS, through the CDC, may enforce this rule and any relevant provisions of Titles 4, 5, 22 and 28-B, and any other general statutes, laws, executive orders or subsequently passed legislation. DAFS shall set licensing fees in accordance with 28-B MRS § 207, and CDC shall set certification and technology fees in accordance with 22 MRS § 569. DAFS, DHHS or an agent thereof shall have the authority to inspect, during operating hours, times of apparent activity or any other reasonable time, any cannabis testing facility, including vehicles used to transport cannabis or cannabis products to a cannabis testing facility. Approval by the CDC of the plans, standard operating procedures, financial and business arrangements or other documents and information provided for certification by the CDC during the certification process does not constitute approval by DAFS for the purposes of licensure pursuant to the rules governing the adult use cannabis program.

( 3) Communication with DAFS and/or DHHS.

(A) Written Communications. If an applicant or licensee is required to or elects to submit anything in writing to DAFS or DHHS, unless otherwise prescribed by DAFS or DHHS, the applicant or licensee may submit the writing to DAFS or DHHS via:

(1) Mail;

(2) In-person delivery;

(3) Facsimile; or

(4) E-mail.

(B) Submission Deadline. If a written notification must be submitted by a deadline it must be received by DAFS or DHHS, regardless of method used to submit the writing, by 5 p.m. Eastern Time.

( 4) Definitions.

A_w means the water activity, which is the partial vapor pressure of water in a substance divided by the standard state partial vapor pressure of water. It is a measure of the quantity of water in a product that is available, and therefore capable of, supporting bacteria, yeasts and fungi.

Acceptance criteria means the specified limits placed on characteristics of an item, process or service that are used to determine data quality as defined in methods, rules or regulations.

Accredited means to be recognized as conforming to standards ISO/IEC 17025:2017 (or most recent version) for cannabis testing facilities, by an International Laboratory Accreditation Cooperation signatory Accreditation Body (ILAC); or ISO/IEC 17043:2023 (or most recent version) for proficiency testing bodies by an ILAC signatory accreditation body.

Accredited college or university is a college or university accredited by a regional or national accrediting agency recognized by the United States Department of Education.

Accuracy means the degree of agreement between an observed value and an accepted reference value. Accuracy includes a combination of random error (precision) and systematic error (bias) components that are a result of sampling and analytical operations; a data quality indicator.

Action level is the threshold value for determining whether a sample passes or fails an analytical test.

Adult use cannabis means cannabis cultivated, manufactured, distributed or sold by a cannabis establishment.

Adult use cannabis product means a cannabis product that is manufactured, distributed or sold by a cannabis establishment.

Aliquot is a portion of a sample that is used in an analysis performed by a testing facility.

Analyst means the designated individual who tests the samples by performing the “hands-on” analytical methods and associated techniques. The analyst is responsible for applying required testing facility practices and other pertinent quality controls to meet the required level of quality.

Analyte is a chemical, compound, element, bacteria, yeast, fungus or toxin that is identified or measured.

Analytical batch means a group of samples that is prepared and/or analyzed together with the same process and personnel, using the same lot(s) of reagents.

Analytical method is a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample.

AOAC International means Association of Official Agricultural Chemists International, a non-profit scientific association that creates, validates and publishes reliable analytical test methods.

Apparent activity means any sight, sound, smell or other indication that persons are present at a cannabis establishment.

Applicant means a person who submits to certification by the Maine CDC as part of an application for a license to operate a cannabis testing facility issued by OCP.

Approved proficiency testing provider means a provider of proficiency testing samples whom the certification officer has deemed to meet the requirements of this rule.

Assessment means the evaluation process used to measure or establish the performance effectiveness and conformance of a testing facility and/or its systems to defined criteria and standards and requirements of testing facility certification.

Audit means a systematic and independent examination of facilities, equipment, personnel, training, procedures, record-keeping, data validation, data management and reporting aspects of a system to determine whether quality assurance, quality control and technical activities are being conducted as planned. An audit is conducted to determine whether these activities will effectively achieve quality objectives.

Batch means:

(1) A harvest batch; or

(2) A production batch.

Batch number means a distinct group of numbers, letters or symbols, or any combination thereof, assigned to a specific batch of adult use cannabis by a cultivation facility, sample collector, testing facility, or a cannabis store or to a specific batch of adult use cannabis or adult use cannabis products by a products manufacturing facility, sample collector, testing facility or a cannabis store.

Best Practices Guide means the Best Practices for the Sampling of Adult Use Cannabis, published by the Department, incorporated by reference in Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40. All licensees and any employee of a licensee collecting samples of cannabis, cannabis concentrate, or cannabis products for mandatory testing must collect samples in accordance with the best practices described in the guide.

Bias means the systematic or persistent distortion of a measurement process, which causes errors in one direction, resulting in the expected sample measurement being different from the sample’s true value.

Calibration means a set of operations that establish, under specified conditions, the relationship between values of quantities indicated by a measuring instrument or measuring system or values represented by a material measure or a reference material, and the corresponding values realized by standards.

(1) In calibration of support equipment, the values realized by standards are established using reference standards that are traceable to the International System of Units (SI).

(2) In calibration, per methods, the values realized by standards are typically established using reference materials that are either purchased by the testing facility with a certificate of analysis or purity or prepared by the testing facility using support equipment that has been calibrated or verified to meet specifications.

Calibration curve means the mathematical relationship between the known values, such as concentrations, of a series of calibration standards and their instrument response.

Calibration standard means a substance or reference material used for calibration.

Cannabinoid is a chemical compound that is unique to, and derived from, cannabis.

Cannabis means the leaves, stems, flowers and seeds of a cannabis plant, whether growing or not. “Cannabis” includes cannabis concentrate, except where context indicates otherwise, but does not include hemp as defined in 7 MRS §2231, or a cannabis product.

Cannabis concentrate means the resin extracted from any part of a cannabis plant and every compound, manufacture, salt, derivative, mixture or preparation from such resin, including, but not limited to hashish. In determining the weight of a cannabis concentrate in a cannabis product, the weight of any other ingredient combined with cannabis or cannabis concentrate to prepare the cannabis product may not be included.

Cannabis flower means the pistillate reproductive organs of a mature cannabis plant, whether processed or unprocessed, including the flowers and buds of the plant. Cannabis flower does not include cannabis trim or whole mature cannabis plants.

Cannabis plant means all species of the plant genus cannabis. Including but not limited to a mother plant, a mature cannabis plant, an immature cannabis plant or a seedling, but it does not include a cannabis product or “hemp” as defined in 7 MRS § 2231.

Cannabis product means a product composed of cannabis or cannabis concentrate and other ingredients that is intended for use or consumption. “Cannabis product” includes without limitation an edible cannabis product, a cannabis ointment and a cannabis tincture. Cannabis product does not include cannabis concentrate.

Cannabis store has the same meaning as defined in the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR ch. 10.

Cannabis testing facility means an entity licensed according to Title 28-B, including those also registered as cannabis testing facilities in accordance with Title 22, ch. 558-C to test cannabis, cannabis products and other substances for research and development and to analyze contaminants in and the potency and cannabinoid profile of samples in an approved location.

Cannabis trim means any part of a cannabis plant, whether processed or unprocessed, that is not cannabis flower or a cannabis seed.

Cannabis waste means cannabis, cannabis plants or cannabis products that are unfit for retail sale for reasons including without limitation failed mandatory testing, expired products or crop failure.

CAS number is the unique numerical identifier assigned to every chemical substance by Chemical Abstracts Service (CAS).

CBD is cannabidiol, CAS number 13956-29-1.

CBDA is cannabidiolic acid, CAS number 1244-58-2.

Certificate of analysis means the report prepared for the requester and OCP about the analytical testing performed and results obtained by the testing facility.

Certification means the process by which an agency or organization evaluates and recognizes a testing facility as meeting certain predetermined qualifications or standards, thereby certifying the testing facility. The Department of Health and Human Services is responsible for certification of all testing facilities.

Certification officer means the person designated by the Department of Health and Human Services to manage certification of testing facilities.

Certified reference material means reference material, accompanied by a certificate, having a value, measurement of uncertainty and stated metrological traceability chain to a national metrology institute.

Chain of custody form means a record, either paper-based or electronic, that documents the possession of the samples at the time of receipt by the cannabis testing facility, in accordance with chain of custody protocol prescribed by the cannabis testing facility. This record, at a minimum, must include the sample location, the number and types of containers, the mode of collection, the authorized individual who collected the sample, the date and time of collection, preservation and requested analyses.

Chain of custody protocols means the procedures developed and employed by the cannabis testing facility to record the possession of samples from the time of sampling through the retention time specified by the client or program. These procedures are performed at the special request of the client and include the use of a chain of custody form that documents the collection, transport and receipt of compliance samples by the cannabis testing facility. In addition, these protocols document all handling of the samples within the cannabis testing facility and, if applicable, by the sample collector or self-sampler.

Colony forming unit (CFU) means a unit of measurement of estimated number of bacteria or fungal cells in a sample.

Contaminant means an unacceptable level of an unwanted or objectionable substance, toxin, pollution or foreign material that causes impurity in a product. Contaminants include, but are not limited to, pesticides, microbiology, filth, heavy metals and residual chemical solvents.

Corrective action means an action taken by the cannabis testing facility to eliminate or correct the causes of an existing nonconformance to prevent the recurrence of the nonconformance.

Corrective action plan means a report, including specific corrective actions and a specific date of completion, generated in response to deficiencies or findings of non-compliance.

Cultivar means a specific variety of cannabis produced by selective breeding. Also commonly referred to as a “strain” of cannabis.

Cultivation facility has the same meaning as defined in the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR ch. 10.

Cultivator means a cultivation facility licensed under 28-B MRS, Chapter 1 or a qualifying patient, exempt caregiver, registered caregiver or registered dispensary that is authorized under 22 MRS, chapter 558-C to cultivate cannabis.

Deficiency means a failure of the testing facility to meet any one of the requirements in this rule.

Demonstration of capability means a procedure to establish the ability of the analyst to generate acceptably accurate and precise analytical results.

Department of Administrative and Financial Services (DAFS) means the Maine Department of Administrative and Financial Services. DAFS includes the Office of Cannabis Policy (OCP), which licenses adult use cannabis establishments, including cannabis testing facilities, and registers medical cannabis program participants including patients, registered caregivers, registered dispensaries, registered manufacturing facilities and registered inherently hazardous extraction facilities.

Department of Health and Human Services (DHHS) means the Maine Department of Health and Human Services. DHHS includes the Maine Center for Disease Control and Prevention (CDC), which certifies, through its Maine Cannabis Certification Program, the technology and testing methods used by cannabis testing facilities under this rule.

Disciplinary action means any action taken by the CDC to limit, suspend, revoke, or deny the certification of a cannabis testing facility as a result of the cannabis testing facility’s violation or other nonconformance with this rule, 28-B MRS, ch.1, or other rules promulgated by DHHS or DAFS.

Edible cannabis product means a cannabis product intended to be consumed orally, including, but not limited to, any type of food, drink or pill containing cannabis.

Exempt caregiver means a medical cannabis caregiver who is exempt from the registration requirements of 22 MRS § 2425-A.

Facility director means the individual who is legally authorized to direct the activities of a testing facility and who commits the appropriate resources to comply with this rule.

Field of testing means those programs, matrices, methods or analyte combinations, for which certification is offered.

Final form means for the purpose of mandatory testing, adult use cannabis or an adult use cannabis product that is in the form that will be sold to an adult use cannabis consumer; except that the adult use cannabis or adult use cannabis product need not be prepackaged into individual retail units to be considered in its “final form”.

Finished plant material means cannabis that has been trimmed and dried. Trimming includes removing the leaves immediately subtending the buds and any dead leaves or stems.

Foreign material means any physical contaminant or filth, including without limitation hair, insects, feces, packaging contaminants and manufacturing waste and by-products.

Full active license means a license issued by the Department of Administrative and Financial Services, Office of Cannabis Policy to a cannabis testing facility that has received CDC full certification and ISO/IEC 17025:2017 or most recent version accreditation for all required technologies and analytes that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, Chapter 1 and this rule.

Full certification means certification granted by the CDC to a cannabis testing facility that has received ISO/IEC 17025:2017 or most recent version accreditation and meets all other requirements of this rule and authorizing it to seek an active license from DAFS.

Harvest batch means a specific quantity of adult use cannabis harvested from adult use cannabis plants of the same cultivar, grown under the same conditions, and harvested during a specified period of time from a specified cultivation area within a cultivation facility.

Homogeneity means the amount of cannabis or cannabis concentrate and cannabinoids within the product being consistent and reasonably equally dispersed throughout the product or each portion of the product or concentrate, or a representative sample.

Homogenization means the process by which the components of a sample are broken apart into particles that are equal in size and evenly distributed.

Increment or sample increment means a smaller sample that, together with other increments, makes up the primary sample.

ISO/IEC 17025:2017 or most recent version means the general requirements for the competence of testing and calibration laboratories issued in 2017 (or more recent) joint technical committee of the International Organization for Standardization and the International Electrotechnical Commission.

Licensee means a natural person or business entity licensed pursuant to 28-B MRS, Chapter 1 to operate an adult use cannabis establishment.

Limit of detection (LOD) means an estimate of the minimum amount of an analyte in a given matrix that an analytical process can reliably detect.

Limit of quantitation means the minimum level, concentration or quantity of a target variable (e.g., target analyte) that can be reported with a specified degree of confidence.

Manufacturer means a manufacturing facility licensed under 28-B MRS, Chapter 1 or a person, qualifying patient, registered caregiver or registered dispensary that is authorized to manufacture under 22 MRS, chapter 558-C.

Matrix means the component or substrate that contains the analyte of interest.

Matrix spike means a sample prepared by adding a known quantity of analyte and subjecting the sample to the entire analytical procedure to determine the ability to recover the known analyte or compound. The spiked concentration must be at a low to mid-range concentration of the calibration curve for the target analyte.

Method means a body of procedures and techniques for performing an activity (e.g., sampling, chemical analysis or quantification), systematically presented in the order in which they are to be executed.

Method blank means an analyte-free matrix, to which all reagents are added in the same volumes or proportions as are used in sample preparation and is processed in exactly the same manner as the samples.

Method detection limit means the minimum measured concentration of a substance that can be reported with 99-percent confidence that the measured analyte is distinguishable from method blank results.

Mycotoxin means any toxic substance produced by a fungus and especially a mold.

National Institute of Standards and Technology (NIST) means a federal agency of the United States Department of Commerce’s Technology Administration.

Nonconformance or noncompliance means a failure of a testing facility to meet any requirement in this rule.

Non-target organism means an organism that the test method or analytical procedure is not testing for. Non-target organisms are used in evaluating the specificity of a test method.

Percent recovery means the percentage of a measured concentration relative to the added (i.e. spiked) concentration in a reference material, matrix spike sample or matrix spike duplicate. A testing facility shall calculate the percent recovery by dividing the sample result by the expected result then multiplying the quotient by 100.

Pesticide means any substance or mixture of substances intended for preventing, destroying, repelling or mitigating any pest; any substance or mixture of substances intended for use as a plant regulator, defoliant or desiccant; and any nitrogen stabilizer; and all substances listed in Table § 6(8)-A of this rule. It does not include multicellular biological controls such as mites, nematodes, parasitic wasps, snails or other biological agents not regulated as pesticides by the U.S. Environmental Protection Agency.

Plant growth regulator means any substance or mixture of substances intended through physiological action for accelerating or retarding the rate of growth or rate of maturation or for otherwise altering the behavior of plants or the produce thereof. “Plant growth regulator” does not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants or soil amendments.

Practical experience means hands-on post-secondary-education testing facility experience, using equipment, instruments, kits and materials routinely found in a testing facility.

Precision means the degree to which a set of observations or measurements of the same property, obtained under similar conditions, conform to themselves. Precision serves as a data quality indicator. Precision is usually expressed as standard deviation, variance or range, in either absolute or relative terms.

Preservation means any conditions under which a sample must be kept to maintain chemical and/or biological integrity prior to analysis.

Primary sample means a portion of cannabis or cannabis products collected from a harvest or production batch for testing. Also called a “composite” sample.

Production batch means a specific quantity of cannabis concentrate or a cannabis product that is produced during a specified period of time using the same extraction and/or manufacturing method, formulation and/or recipe and standard operating procedure. “Production batch” also includes the combination of two or more harvest batches of cannabis trim or kief.

Products manufacturing facility has the same meaning as defined in the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR ch. 10.

Proficiency test means an evaluation of a testing facility’s performance against pre-established criteria, by means of inter-testing facility comparisons of test measurements.

Proficiency test sample means a sample prepared by a party independent of the testing facility tasked with evaluating the sample, with a concentration and identity of an analyte that is known to the independent party but is unknown to the testing facility evaluating the sample and its personnel.

Provisional certification means the process by which CDC evaluates and recognizes a cannabis testing facility as meeting the requirements of this rule with the exception ISO/IEC 17025 accreditation, for which an application must be pending.

Provisional active license means a license issued by DAFS to a cannabis testing facility that has received CDC provisional certification and has applied for, but not yet received, ISO/IEC 17025:2017 or most recent version accreditation for all required technologies and analytes that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, Chapter 1 and this rule.

Proficiency test sample means a sample, the composition of which is unknown to the testing facility, provided to test whether the testing facility can produce analytical results within the specified acceptance criteria.

Proficiency testing means a way to evaluate a testing facility’s performance under controlled conditions relative to a given set of criteria, through analysis of unknown samples provided by an external source.

Proficiency testing program means the aggregate of providing rigorously controlled and standardized samples to a testing facility for analysis, reporting of results, statistical evaluation of results and the collective demographics and results summary of all participating testing facilities.

Protocol means the detailed written procedure for field and/or testing facility operation (e.g., sampling, analysis) that must be strictly followed.

Qualifying patient means a person who possesses a valid certification for the medical use of cannabis pursuant to 22 MRS § 2423-B.

Quality assurance (QA) means a set of operating principles that enable testing facilities to produce defensible data of known accuracy and precision. Quality assurance includes without limitation employee training, equipment preventative maintenance procedures, calibration procedures and quality control testing.

Quality assurance manual means a document stating the management policies, objectives, principles, organizational structure and authority, responsibilities, accountability and implementation of an agency, organization or cannabis testing facility, to ensure the quality of its product and the utility of its product to its users.

Quality control (QC) means the overall system of technical activities that measures the attributes and performance of a process, item or service against defined standards to verify that they meet the stated requirements established by the client; operational techniques and activities that are used to fulfill requirements for quality; also the system of activities and checks used to ensure that measurement systems are maintained within prescribed limits, providing protection against “out of control” conditions and ensuring that the results are of acceptable quality.

Quality control sample means a sample used to assess the performance of all, or a portion of, the measurement system. One of any number of samples, such as certified reference materials, a matrix fortified by spiking, or actual samples fortified by spiking, intended to demonstrate that a measurement system or activity is in control.

Quality system means a structured and documented management system describing the policies, objectives, principles, organizational authority, responsibilities, accountability and implementation plan of an organization for ensuring quality in its work processes, products (items) and services. The quality system provides the framework for planning, implementing and assessing work performed by the organization and for carrying out required QA and QC activities. A cannabis testing facility’s quality system must account for anomalies arising from the collection and transport of samples for mandatory testing conducted by a self-sampler or a sample collector licensee, including provisions regarding the use of blanks.

Quantitate means to undertake the arithmetic process of determining the amount of analyte in a sample.

Raw data means the documentation generated during sampling and analysis. This documentation includes, but is not limited to, field notes, electronic data, magnetic tapes, un-tabulated sample results, QC sample results, chromatograms, instrument outputs and handwritten records.

Reagent means a compound or mixture added to a system to cause a chemical reaction, or test if a reaction occurs. A reagent may be used to determine whether or not a specific chemical substance is present by causing a reaction to occur with the chemical substance.

Reference material means a material or substance, one or more of which the property values are sufficiently homogeneous and well established to be used for the calibration of an apparatus, the assessment of a measurement method, or for assigning values to materials.

Reference method means a method by which the performance of an alternate method is measured or evaluated.

Registered caregiver means a caregiver who is registered by OCP pursuant to 22 MRS § 2425.

Registered dispensary or dispensary means an entity registered under 22 MRS § 2425-A that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, sells, supplies or dispenses cannabis or related supplies and educational materials to qualifying patients and the caregivers of those patients.

Relative standard deviation means the standard deviation expressed as a percentage of the mean recovery. It is the coefficient of variation multiplied by 100 and is calculated using the following equation:

RSD = (s / x) × 100% , where s = standard deviation and x = mean recovery. If any results are less than the limit of quantitation, the absolute value of the limit of quantitation is used.

Reporting limit means the lowest level of an analyte that can be accurately recovered from the matrix of interest (e.g., the level of quantitation).

Requester means a person who submits a request to a certified testing facility for state-mandated testing of cannabis or cannabis products.

Sample means, as applicable, an amount of:

(1) Cannabis, cannabis concentrate or cannabis product collected from an adult use cannabis establishment for mandatory testing:

(a) By an employee of a testing facility in accordance with 28-B MRS § 604 and Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40;

(b) By a sample collector, in accordance with 28-B MRS § 604 and 18-691 CMR, ch. 40 ; or

(c) By a self-sampler in accordance with 28-B MRS § 604-A and 18-691 CMR, ch. 40;

(2) Cannabis, cannabis concentrate or cannabis product provided to a testing facility by a cannabis establishment or other person for mandatory testing or testing for research and development purposes in accordance with 28-B MRS, chapter 1;

(3) Adult use cannabis or adult use cannabis product collected from a licensee by the Department for the purposes of testing the cannabis or cannabis product for quality control purposes pursuant to 28-B MRS §512.

Sample collection SOP means a standard operating procedure for the collection of samples of cannabis, cannabis concentrate and cannabis products for mandatory testing published by the Department that must be used by all licensees collecting, transporting and transferring samples for mandatory testing. The current sample collection SOP is Appendix A of the Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40.

Sample collector means a person licensed pursuant to the rules governing the adult use cannabis program and 28-B MRS, ch. 1 to collect samples of cannabis and cannabis products for testing and to transport and deliver those samples to a testing facility. A sample collector must hold a valid individual identification card (“IIC”).

Sample increment means a portion of a batch that, together with other increments, makes up the sample.

Sampling date means the date that a sample was collected in the field, in order to be reported as such, when reporting the sample results to testing facility clients or regulatory programs.

Sanitize means to sterilize, disinfect or make hygienic.

Self-sampler or Self-sampling licensee means a cultivation facility, products manufacturing facility or cannabis store licensee that collects samples of cannabis, cannabis concentrate and cannabis products for mandatory testing or an employee of a cultivation facility, products manufacturing facility or cannabis store licensee who collects samples of cannabis, cannabis concentrate and cannabis products for that licensee for mandatory testing. Any individual collecting samples for mandatory testing must hold a valid individual identification card (“IIC”).

Solid means a matrix that includes soils; sediments; solid waste; and sludges.

Standard means the certified reference materials produced by NIST or other equivalent organization and characterized for absolute content, independent of analytical method or the dilutions made from these certified reference materials for the purposes of calibration or determining accuracy of a test method.

Standard operating procedure (SOP) means a written document that details the method for an operation, analysis or action, with thoroughly prescribed techniques and steps. SOPs are officially approved by the testing facility’s senior management as the methods for performing certain routine or repetitive tasks.

Target or target analyte means an analyte or list of analytes within a test method that may be analyzed and for which the testing facility has obtained certification from the certification officer to test as part of a field of testing.

Target organism is an organism that is being tested for in an analytical procedure or test method.

Technology means a specific arrangement of analytical instruments, detection systems and/or preparation techniques.

Technology Analyte Table (TAT) means the table used to identify methods, analytes, programs and matrices available for certification.

Testing or test means the research and analysis of cannabis, cannabis products or other substances for contaminants, safety or potency. "Testing" or "test" includes the collection of samples of cannabis and cannabis products for testing purposes but does not include cultivation or manufacturing. Nothing in this definition shall be construed to permit any licensee except a cannabis testing facility to perform analyses of cannabis, cannabis concentrate or cannabis products for mandatory testing without a separate cannabis testing facility license issued by DAFS.

THC is tetrahydrocannabinol (delta-9 THC), CAS number 1972-08-3.

THCA is tetrahydrocannabinolic acid, CAS number 23978-85-0.

Tincture means a liquid edible cannabis product with a concentration of greater than 1 mg of THC per ounce of liquid.

Total CBD means the sum of CBD and CBDA. Total CBD is calculated using the following equation: Total CBD = CBD + (CBDA*0.877).

Total THC means the sum of THC and THCA. Total THC is calculated using the following equation: Total THC = delta-9 THC + (THCA*0.877).

Total Yeast and Mold Count (TYMC) means the total combined yeast and mold count in standardized plating methodologies and is usually expressed in number of colony forming units (CFU).

Traceability means the ability to trace the history, application or location of an entity by means of recorded identifications. In a calibration sense, traceability relates measuring equipment to national or international standards, primary standards, basic physical constants or properties or reference materials. In a data collection sense, it relates calculations and data generated throughout the project back to the requirements for the quality of the project.

Unusable means that the cannabis can no longer be smoked, eaten, ingested, topically applied or otherwise ingested. Nor can the cannabis be further manipulated in a manner to extract more than a trace amount of cannabinoid.

Validation means the confirmation by examination and objective evidence that the requirements for a specific intended use are fulfilled.

Verification means the confirmation by examination of, and provision of, objective evidence that specified requirements have been fulfilled. Verification refers to the process of examining a result of a given activity to determine conformance with this rule.

§ 2 - General CDC Certification and ISO/IEC 17025: 2017 Accreditation Requirements Prior to Issuance of a Cannabis Testing Facility License.

( 1) Certification of Cannabis Testing Facility Required Prior to Issuance of a Full Active or Provisional Active License. A cannabis testing facility must obtain certification by DHHS, CDC, as described in this rule, before DAFS, OCP will issue to that cannabis testing facility a full active or provisional active license.

(A) Cannabis Testing Facility General Requirements. The cannabis testing facility must:

(1) Be an entity that can be held legally responsible;

(2) Carry out its testing activities in such a way as to meet the requirements of this rule and to meet the needs of clients in accordance with the cannabis testing facility’s quality assurance manual;

(3) Employ technical management and personnel who, irrespective of other responsibilities, have the authority and resources needed to carry out their duties and identify departures from the management system and initiate actions to prevent or minimize such departures;

(4) Use personnel employed by, or under contract to, the cannabis testing facility, and where contracted and additional technical and key support personnel are used, ensure that such personnel are supervised and competent and that they work in accordance with the cannabis testing facility's quality system;

(5) Have a written policy that, as indicated by signature, ensures management and personnel are free from any undue internal and external commercial, financial and other pressures and influences that may adversely affect the quality of their work or diminish confidence in its competence, impartiality, judgement or operational integrity. Submission of this policy for the purposes of certification does not fulfill licensing requirements regarding undue influence evaluated by OCP, such information will be evaluated by OCP independent of any assessment made by the CDC;

(6) Have policies and procedures to ensure the protection of its clients’ confidential information and proprietary rights, including procedures for protecting the electronic storage and transmission of results;

(7) Authorize specific personnel to perform particular types of sampling, if applicable, and environmental testing, issue test reports, give opinions and interpretations and operate particular types of equipment; and

(8) Authorize specific personnel to maintain document control policies, chain of custody forms for each sample tested and control access to certificate of analysis data.

(B) Certification may be full or provisional. A cannabis testing facility must receive from the CDC full or provisional certification for all required analytes and technologies for all types of matrices (cannabis plant material, cannabis concentrate, and cannabis products as applicable) before that cannabis testing facility can seek a full active or provisional active license from OCP.

(1) Full certification will be granted by the CDC to a cannabis testing facility that can demonstrate that it has applied for and received ISO/IEC 17025:2017 or most recent version accreditation and that it meets all other requirements of this rule.

(2) Provisional certification will be granted by the CDC to a cannabis testing facility that can demonstrate that it has had an application accepted for, but has not yet received nor been denied, ISO/IEC 17025:2017 or most recent version accreditation and that meets all other requirements of this rule.

(3) Certification may be denied when an applicant has deficiencies and the certification officer determines that the applicant cannot consistently produce valid data.

( 2) ISO/IEC 17025:2017 or most recent version Accreditation Requirements for CDC Cannabis Testing Facility Certification.

(A) The cannabis testing facility must demonstrate ISO/IEC 17025: 2017 accreditation before the CDC will issue a full testing facility certification. The cannabis testing facility may apply for full certification for only those fields of testing accredited by ISO/IEC 17025:2017 or most recent version. The cannabis testing facility may apply for an OCP-issued full active license for only those fields of testing for which it has received ISO/IEC 17025:2017 or most recent version accreditation and CDC certification. An on-site inspection by CDC will be required.

(B) The cannabis testing facility must apply for ISO/IEC 17025:2017 or most recent version accreditation before the CDC will issue a provisional testing facility certification. A cannabis testing facility applicant meeting all general requirements for certification, except for ISO/IEC 17025:2017 or most recent version accreditation, may apply to the CDC for provisional certification by submitting a complete application and required fees. Following an on-site inspection of an applicant that has not received ISO/IEC 17025:2017 or most recent version accreditation, the CDC will perform a review of data validation studies and a review of all other proof that the cannabis testing facility has met certification requirements, and if the CDC determines the cannabis testing facility meets all requirements, the CDC may grant the applicant a provisional certification. The provisional certification, if granted, expires 12 months from the date of issuance.

(1) The cannabis testing facility may apply for an OCP-issued provisional active license for only those fields of testing included in the application for ISO/IEC 17025:2017 or most recent version accreditation.

(2) Upon receipt of ISO/IEC 17025:2017 or most recent version accreditation, the cannabis testing facility must demonstrate proof of accreditation to OCP and the CDC within 5 business days. Upon receipt of such notice and following confirmation of accreditation, the CDC will issue to the cannabis testing facility full certification for the accredited technologies and analytes which will expire on the same date as the originally issued provisional certification. A cannabis testing facility can request a change in licensure status from provisional active to full active licensure for the remainder of the term of the originally issued provisional active license. Nothing in this section shall be construed to extend the term of certification or licensure beyond the term of the originally issued provisional certification or provisional active licensure.

(3) Before the expiration of its provisional certification, the cannabis testing facility must obtain ISO/IEC 17025:2017 or most recent version accreditation for all fields of testing included in its accreditation application; otherwise it must cease all operations until such accreditation is obtained for all fields of testing.

(4) If ISO/IEC 17025:2017 or most recent version accreditation is denied to the cannabis testing facility holding provisional certification, the facility must notify the CDC of the denial within one business day of receipt of the denial. The CDC shall revoke the provisional certification, upon the cannabis testing facility’s notification of denial of ISO/IEC 17025:2017 or most recent version accreditation. Upon revocation of a provisional certification by the CDC, OCP shall revoke immediately the cannabis testing facility’s provisional active license.

§ 3 - Certification of Testing Facilities.

( 1) Certification Required. A cannabis testing facility may test cannabis or cannabis products only if it holds a current certification from DHHS, CDC. Initial certification will be for a period of 1 year, and annual recertification is required.

(A) Applications must meet all CDC requirements.

(1) At a minimum, the application for certification must include:

(a) The name of the facility director in charge of the cannabis testing facility and each employee’s qualifications or job descriptions;

(b) Resumes that document appropriate experience and education, including college transcripts and evidence of a completed degree, for personnel specified in section 4;

(c) A quality assurance manual, meeting the specifications of subsection 3.2;

(d) Standard operating procedures, meeting the specifications of subsection 3.3; and

(e) The fields of testing for which the applicant seeks provisional certification or certification using the technology analyte table (TAT) maintained by the program and proof of ISO/IEC 17025:2017 or most recent version accreditation for such fields of testing or, if applying for a provisional certification, proof that the applicant has submitted an approved application for ISO/IEC 17025:2017 or most recent version accreditation for such fields of testing.

(2) Applications for certification will not be considered complete until payment of the non-refundable application fee.

(3) Applications for renewal certification shall be submitted no less than sixty days prior to the expiration of current certification.

(4) The cannabis testing facility must submit the following additional documentation to obtain provisional or full certification from the CDC:

(a) A description of the organization and management structure of the cannabis testing facility, its place in any parent organization and the relationships between quality management, technical operations and support services;

(b) A management plan defining the responsibilities of key personnel in the organization who have any involvement or influence on the testing, and if the cannabis testing facility is part of an organization performing activities other than testing, identifying potential conflicts of interest;

(c) Written policies and procedures that ensure the protection of its clients’ confidential information and proprietary rights, including procedures for protecting the electronic storage and transmission of results;

(d) Written policies and procedures for receipt of samples for mandatory or other testing; and

(e) A written policy defining legal chain of custody protocols and including procedures to control access to certificate of analysis data and other testing data to prevent it from being falsified or manipulated.

(B) Certification is granted for specified matrices, technology and analytes.

(1) The CDC will only certify applicants for the matrices, technologies and analytes required for testing under this rule.

(2) The CDC must conduct a comprehensive on-site inspection of each cannabis testing facility prior to granting certification. Following its inspection, the CDC must issue a written initial on-site assessment report which identifies any deficiencies noted during the CDC inspection. In order to receive certification, the cannabis testing facility must correct any deficiencies identified and provide documentation of the correction to CDC within 30 days of receipt of the initial on-site inspection report.

(C) A cannabis testing facility must maintain its CDC certification at all times to remain licensed by DAFS.

(1) The CDC may, upon reasonable cause, complaint, or to assess continued compliance with this rule, conduct an onsite inspection or review written or electronic records to determine the cannabis testing facility’s compliance with the certification requirements described in this section.

(2) Upon the finding of significant or intentional deviation from certification requirements or if the cannabis testing facility refuses to permit access to the site or records, the CDC may suspend or revoke the cannabis testing facility’s certification.

(a) A cannabis testing facility may not conduct testing of cannabis or cannabis products while its certification is suspended or revoked.

(b) The CDC shall communicate any suspension or revocation in writing, along with a notice of the licensee’s right to appeal, consistent with the Maine Administrative Procedures Act, 5 MRS, chapter 375.

(c) Simultaneously, the CDC shall inform OCP of its actions.

(3) Annual recertification is required.

(a) The CDC will provide at notice to a testing facility least 90 days prior to the testing facility’s scheduled annual recertification.

(b) The recertification application shall include at minimum, the following:

(i) Any changes to assertions made during initial certification or most recent recertification;

(ii) Any fines, enforcement or letters of warning by OCP;

(iii) Copies of updated SOPs;

(iv) Copy of current QA manual; and

(v) Updated copies, at the CDC’s discretion, of any materials required for initial certification.

(c) The CDC may consider a cannabis testing facility’s compliance with certification requirements, proficiency testing, accuracy of testing and reporting implicated in this rule when determining whether to renew the cannabis testing facility’s certification.

(2) Quality Assurance Program and Manual.

(A) The cannabis testing facility must develop and implement a quality assurance program. The program must be sufficient to ensure the reliability and validity of the analytical data produced by the cannabis testing facility. The cannabis testing facility operations must also meet the requirements of the ISO 17025:2017 accreditation.

(B) The cannabis testing facility must develop and maintain a written quality assurance program manual.

(1) The manual must contain the following elements:

(a) Document title;

(b) Identification on each page to ensure that the page is recognized as part of the manual and clear identification of the end of the manual;

(c) The cannabis testing facility's name and address;

(d) Identification of the cannabis testing facility’s approved signatories;

(e) A revision number;

(f) A date indicating when the revision became effective;

(g) A table of contents, applicable lists of references, glossaries and appendices;

(h) Listing of all certified testing methods;

(i) Relevant organizational charts showing the organization and management structure of the cannabis testing facility and, if applicable, its place within a larger business entity; and

(j) Job descriptions of key staff and reference to the job descriptions of other cannabis testing facility staff;

(2) The manual must address all aspects of the cannabis testing facility’s quality assurance program, including without limitation the following:

(a) Quality control;

(b) Quality assurance objectives for measurement data;

(c) Traceability of all data, analytical results and certificates of analysis;

(d) Equipment preventative maintenance;

(e) Equipment calibration procedures and frequency;

(f) Performance and system audits;

(g) Corrective action;

(h) Record retention, including retention of quality assurance records;

(i) Document control;

(j) Standardization of testing procedures;

(k) Method validation;

(l) Maintenance, calibration and verification procedures;

(m) Major equipment, support equipment and reference measurement standards (e.g., NIST traceable thermometers and weights);

(n) Verification practices, which may include proficiency testing programs, use of reference materials, internal quality control processes and inter-cannabis testing facility comparisons;

(o) Reporting analytical results and generating the certificate of analysis;

(p) Traceability of measurements;

(q) Procedures for archiving traceability for reagents and standards;

(r) Adoption of new testing methods;

(s) Handling of samples;

(t) Collection and transportation of samples, as applicable;

(u) Receipt of samples for mandatory testing, or testing for research and development purposes;

(v) Sample rejection;

(w) Feedback and corrective action related to testing discrepancies or departures from documented policies and procedures;

(x) Policy for permitting departures from documented policies and procedures or from standard specifications;

(y) Handling of complaints;

(z) Protection of confidentiality and proprietary rights;

(aa) Data review;

(bb) Chain of custody forms;

(cc) Annual internal audits;

(dd) Evaluation of employee credentials;

(ee) Employee training, including initial data integrity training for new personnel and annual data integrity training for all current employees with written documentation of attendance;

(ff) Electronic signatures, where applicable;

(gg) How data accuracy and precision are determined for each accredited method and analyte within each test category;

(hh) Disposal of cannabis waste;

(ii) Review of all new work to ensure that the cannabis testing facility has appropriate facilities and resources before commencing such work;

(jj) Manual integration policy; and

(kk) Meeting all applicable ISO 17025:2017 accreditation requirements.

(3) The manual may include separate procedures or incorporate documents by reference.

(C) The quality assurance program and manual must be reviewed and updated regularly to remain current.

(1) The facility director and quality assurance officer must review, amend if necessary and approve the quality assurance program and manual.

(a) Routine review is required at least annually.

(b) The facility director must also review and amend the quality assurance program and manual whenever there is a change in methods, cannabis testing facility equipment or facility director.

(c) Documentation of the review process must include the scope of the review, identification and signature of the reviewer and the date the review was completed.

(2) Method detection limits and reporting limits may be determined by methods used by the U.S. Environmental Protection Agency.

(a) The cannabis testing facility may use the procedure for determining the method detection limit described in 40 C.F.R. Part 136, Appendix B, revised as of July 1, 2017, as amended by Federal Register, Vol. 82, No. 165, p. 40836-40941, August 28, 2017; or

(b) Other methods published by the federal U.S. Food and Drug Administration for the determination of limit of detection (LOD) and limit of quantitation including Guidelines for the Validation of Analytical Methods for the Detection of Microbial Pathogens in Foods and Feeds, 2nd Edition, April 2015.

(3) Standard Operating Procedures (SOPs).

(A) Written SOPs are required. The cannabis testing facility must possess written SOPs used by cannabis testing facility personnel for the analysis of samples and must prepare written procedures for all cannabis testing facility activities, including, but not limited to, sample collection, sample acceptance, sample analysis, operation of instrumentation, generation of data and performance of corrective action.

(1) Only the facility director, quality assurance officer or designee may make changes to SOPs.

(2) Such changes are effective only when documented in writing and approved by the facility director or quality assurance officer.

(3) The SOPs must be formatted to include:

(a) A table of contents;

(b) A unique identification of the SOP, such as a serial number, an identification on each page to ensure that the page is recognized as a part of the manual and a clear identification of the end of the manual;

(c) Page numbers;

(d) The cannabis testing facility's name;

(e) A revision number; and

(f) A date indicating when the revision became effective.

(4) Each analytical method SOP must include or reference the following topics, where applicable:

(a) Identification of the method;

(b) Applicable matrix or matrices;

(c) Limits of detection and quantitation;

(d) Scope and application, including parameters to be analyzed;

(e) Summary of the method;

(f) Definitions;

(g) Interferences;

(h) Safety;

(i) Equipment and supplies;

(j) Reagents and standards;

(k) Sample collection, preservation, shipment and storage;

(l) Quality control (QC);

(m) Calibration and standardization;

(n) Procedure;

(o) Data analysis and calculations;

(p) Method performance;

(q) Pollution prevention;

(r) Data assessment and acceptance criteria for QC measures;

(s) Corrective actions for out-of-control data;

(t) Contingencies for handling out-of-control or unacceptable data;

(u) Waste management;

(v) References; and

(w) Any tables, diagrams, flowcharts and validation data.

(5) For pesticide analysis, the SOP must include established and documented detection limits for each matrix type.

(B) Written SOPs are requirements of certification and licensing and must be followed.

(1) Actual practice must conform to the written procedures.

(a) The cannabis testing facility must maintain copies of the methods from which the procedures are developed and must ensure that the applicable requirements are incorporated into each procedure.

(b) A copy of each procedure must be available to all personnel that engage in that activity.

(c) An analyst must use the cannabis testing facility’s SOP beginning on its effective date.

(2) Standard operating procedure requirements may be considered confidential material, and OCP and the CDC may not disclose the information except in conjunction with agency actions.

(3) The cannabis testing facility must maintain a record of effective dates for all procedures and must review SOPs at least annually. A copy of the procedure and the record of effective dates must be maintained for the same period that records of the data generated by those procedures are required to be maintained.

(4) The cannabis testing facility must keep all standard operating procedures on the cannabis testing facility premises and in the field, as necessary, and must ensure that each standard operating procedure is accessible to cannabis testing facility personnel during operating hours. The cannabis testing facility must make the standard operating procedures available to the CDC upon request.

(5) All changes to the SOPs must be documented.

(a) Changes to the SOPs must be incorporated at least annually.

(b) The cannabis testing facility’s facility director must review, approve, sign and date each SOP and each revision to a SOP.

(c) The SOPs must include the dates of issue and dates of revision, if any.

(4) Proficiency Testing. The cannabis testing facility must participate in a proficiency-testing program provided by an ISO-17043-accredited proficiency test provider, at least annually each year. The CDC may waive proficiency testing requirements if no proficiency tests are available.

(A) Proficiency tests are required.

(1) Any cannabis testing facility seeking to obtain certification must successfully complete at least one proficiency test sample for each requested field of testing.

(a) The proficiency test must occur within six months prior to the date that the cannabis testing facility submits its initial application, and annually thereafter

(b) When any cannabis testing facility is granted certification, it must continue to complete proficiency testing studies for each field of testing and maintain a history of at least one acceptable evaluation for each field of testing out of the most recent two proficiency test sample results submitted to the proficiency test provider.

(c) To maintain certification, the cannabis testing facility must complete the annual study, and any corrective action study required, each year.

(d) Failure to participate in a proficiency test may result in disciplinary action against the cannabis testing facility, including suspension or revocation of certification.

(2) Proficiency testing must be conducted according to the following guidelines:

(a) The cannabis testing facility must rotate the proficiency tests among cannabis testing facility staff, so that all methods and all staff performing the methods have participated in proficiency tests over a reasonable planned period, as defined in the cannabis testing facility quality assurance manual.

(b) The cannabis testing facility must analyze the proficiency test samples following the approved cannabis testing facility standard operating procedures and using the same equipment that are used for testing.

(c) Cannabis testing facility employees who participate in a proficiency test must sign corresponding analytical reports or attestation statements to certify that the proficiency test was conducted in the same manner as the cannabis testing facility ordinarily conducts testing.

(d) The facility director must review and approve all proficiency test samples analyzed and results reported.

(e) The cannabis testing facility must authorize the proficiency test provider to release the results of the proficiency test to OCP and CDC at the same time that the results are submitted to the cannabis testing facility.

(f) Prior to the closing date of a study, cannabis testing facility personnel, including corporate personnel, may not:

(i) Communicate with any individual at another cannabis testing facility, concerning the analysis of the proficiency test sample prior to the closing date of the study;

(ii) Subcontract the analysis of any proficiency test sample or a portion of a proficiency test sample to another cannabis testing facility for any analysis;

(iii) Knowingly receive and analyze any proficiency test sample or portion of a proficiency test sample from another cannabis testing facility, for which the results of the proficiency test sample are intended for use for initial or continued certification; or

(iv) Attempt to obtain the assigned value of any proficiency test sample.

(g) The cannabis testing facility must analyze proficiency test samples in the same manner used for routine samples, using the same staff, sample tracking, sample preparation and analysis methods, SOPs, calibration techniques, QC procedures and acceptance criteria.

(h) The cannabis testing facility must follow sample preparation steps for the proficiency test sample, as instructed by the approved proficiency test provider for which the proficiency test sample was obtained.

(i) Testing facilities under the same ownership may not participate in the same study by the same approved proficiency test provider for the same fields of testing, except when a study is not again available for that field of testing by any approved proficiency test provider within the calendar year.

(3) Errors in reporting the proper matrix, the method used or the tested analytes in the proficiency test study by the cannabis testing facility must be graded as “not acceptable.”

(B) Cannabis testing facilities must provide proficiency test results.

(1) The cannabis testing facility must evaluate and report the analytical result for certification as follows:

(a) For instrument technology that employs a multi-point calibration, the working range of the calibration under which the proficiency test sample is analyzed must be the same range as used for routine samples.

(i) A result for any proficiency test at a concentration above or equal to the lowest calibration standard must be reported as the resultant value.

(ii) A result for any proficiency test at a concentration less than the lowest calibration standard must be reported as less than the value of the lowest calibration standard.

(iii) A result for any proficiency test greater than the highest calibration standard must be diluted to fall within the range of the calibration curve.

(b) For instrument technology that employs standardization with a zero point and a single point calibration standard, the cannabis testing facility must evaluate the analytical result in the same range as used for routine samples.

(i) A result for any proficiency test at a concentration above or equal to the reporting limit must be reported as the resultant value.

(ii) A result for any proficiency test at a concentration less than the reporting limit must be reported as less than the value of the reporting limit.

(iii) A result for any proficiency test greater than the high calibration standard must be diluted to be within the working range.

(2) The cannabis testing facility must ensure that the proficiency test results include the correct physical address of the cannabis testing facility.

(3) The cannabis testing facility must report the analytical results to the proficiency test provider on or before the closing date of the study using the reporting format specified by the proficiency test provider.

(4) On or before the closing date of the study, the cannabis testing facility must authorize the proficiency test provider to release the cannabis testing facility’s final evaluation report directly to OCP and the CDC.

(5) The cannabis testing facility must supply results by authorizing the approved proficiency test provider to release all PT results and corrective action results to the certification officer by an electronic format specified by the certification officer. The CDC must evaluate only results received directly from the proficiency test provider.

(6) The cannabis testing facility may not request a revised report from the proficiency test provider, when the revisions to the report are due to any error on the part of the cannabis testing facility.

(C) Successful performance is required.

(1) The cannabis testing facility must successfully participate in a proficiency test for each matrix, technology and analyte.

(a) Test results are considered “satisfactory” for an analyte tested in a specific technology, or if the results demonstrate a positive identification of an analyte tested in a specific technology, including quantitative results, when applicable.

(b) A cannabis testing facility must analyze only the analytes for which proficiency test results were considered “satisfactory.”

(c) The reporting of a false-positive result is an “unsatisfactory” score for the proficiency test.

(2) The cannabis testing facility must take corrective action and document corrective action, when the cannabis testing facility fails to score 100% on a proficiency test.

(a) Within 30 days of receiving an “unacceptable,” “questionable,” or “unsatisfactory” proficiency test result, a cannabis testing facility must submit the proficiency-test results and detailed corrective action responses to the CDC.

(i) This information must include root-cause analysis and remedial action plans.

(ii) The cannabis testing facility must not accept samples or analyze the analytes for which proficiency test results were considered “unacceptable,” or “unsatisfactory,” until completing the corrective action and resolving the problem.

(iii) The cannabis testing facility must enroll in the next available round of proficiency tests.

(iv) Such enrollment should be documented in the corrective action plan initiated in response to a proficiency test failure.

(b) The cannabis testing facility may not continue to report results for analytes that were deemed “unacceptable,” “questionable” or “unsatisfactory” if the cannabis testing facility has two successive failed proficiency test studies for any analyte and technologies.

(c) Within 180 days of an unacceptable or unsatisfactory proficiency test result, the cannabis testing facility must submit a written report showing whether the cannabis testing facility successfully implemented the corrective action to the CDC.

(d) Within 30 days of receipt of a corrective action report, the cannabis testing facility must order a new proficiency test to demonstrate proficiency for reinstatement of certification.

(3) If the facility fails two successive proficiency test studies for any analyte and technology, certification for that analyte and technology is suspended immediately. Certification may be reinstated pending successful completion of two successive proficiency test studies.

(D) Proficiency test sample study records must be maintained.

(1) The cannabis testing facility must maintain copies of all written, printed and electronic records pertaining to proficiency test sample analyses for 5 years.

(2) Proficiency test records must include, without limitation:

(a) Bench sheets;

(b) Instrument strip charts or printouts;

(c) Data calculations;

(d) Data reports; and

(e) Proficiency test study report forms used by the cannabis testing facility to record proficiency test results.

(3) The cannabis testing facility must make all retained records available to cannabis certification officers during on-site assessments of the cannabis testing facility.

(5) Conducting Annual Internal Audit.

(A) The cannabis testing facility must conduct an internal audit at least once per year, or per the ISO/IEC 17025:2017 or most recent version accrediting body’s requirement, whichever is more frequent.

(B) The internal audit must cover everything required to be covered by this rule and ISO/IEC 17025:2017 or most recent version internal-audit standards.

(C) The internal audit will be reviewed during the on-site assessment by the CDC, during an inspection by the CDC, or at the request of the CDC.

(D) Failure to conduct an internal audit or failure to submit the results of an internal audit to the CDC may subject the cannabis testing facility to suspension or revocation of certification.

§4 - Required Cannabis Testing Facility Personnel, Training and Supervision.

( 1) Required Personnel. Certification requires a cannabis testing facility to employ a qualified facility director and sufficient cannabis testing facility analysts and staff to handle the anticipated volume of testing. The cannabis testing facility must either employ a qualified quality assurance officer (QAO) or designate the facility director to fulfill that role. The cannabis testing facility must ensure that a testing facility director or QAO meeting the requirements of this rule is onsite and available during the hours of operation indicated on the facility’s operating plan.

(A) General requirements.

(1) All management of the cannabis testing facility and performance of required testing and related activities must be performed by personnel who meet the required educational and experience requirements.

(2) Only degrees issued by, or courses completed at, an accredited college or university may fulfill the educational requirements of this section.

(3) To meet practical laboratory experience requirements, prior work experience must:

(a) Have involved full-time work of 30 or more hours per week;

(b) Not have been completed as part of any educational requirement, even if it did not lead to the conferring of a degree; and

(c) Have taken place in a laboratory or cannabis testing facility performing analytical scientific testing in which the testing methods are or were recognized by a laboratory-accrediting body.

(B) Facility director.

(1) To be a facility director of a certified cannabis testing facility under this rule, a person must meet one of the following:

(a) A doctoral degree in a related science and 1 year of practical laboratory experience;

(b) A master’s degree in a related science and 2 years of practical laboratory experience; or

(c) A bachelor of science or bachelor of art degree in a related science and 4 years of practical laboratory experience.

(2) The facility director must be capable of fulfilling all the following core responsibilities:

(a) Oversee and direct the scientific methods of the cannabis testing facility;

(b) Ensure that the cannabis testing facility achieves and maintains quality standards of practice;

(c) Supervise all personnel; and

(d) Be present in the cannabis testing facility an average of 60% of hours of operation.

(3) The facility director may not have been convicted of an offense punishable by 1 year or more in prison and related to conduct involving dishonesty, fraud, deceit or gross negligence with the intent to substantially benefit himself, herself or another or to substantially injure another.

(4) The testing facility must appoint a deputy when the testing facility director is absent from the testing facility for more than 15 consecutive calendar days.

(a) The deputy facility director must meet the qualifications for testing facility director or QAO.

(b) Testing facility management must notify OCP and CDC in writing when the absence of the testing facility director is expected to, or in fact exceeds, 60 consecutive calendar days.

(5) Any requests for a waiver of any provision under this paragraph must be submitted in writing to the CDC, which reserves the right to deny such a request.

(C) Quality assurance officer (QAO).

(1) To be a QAO of a certified cannabis testing facility under this rule, a person must satisfy one of the following:

(a) Meet the qualification criteria required for a facility director; or

(b) Hold a bachelor’s degree in one of the related sciences; or

(c) Have completed at least 2 years of college coursework and at least 1 year of practical laboratory experience.

(2) The QAO must be capable of fulfilling all the following core responsibilities:

(a) Ensure that the cannabis testing facility achieves and maintains quality standards of practice;

(b) Review cannabis testing facility quality control data, conduct annual internal audits, notify management of deficiencies found in the quality system, ensure the accuracy and integrity of certificates of analysis and be free from internal and external influences, when evaluating data and conducting audits;

(c) Provide documented training and/or experience in QA and QC procedures and demonstrate knowledge of the approved analytical methods and quality system requirements, as well as maintain the QA documents up to date;

(d) Have direct access to cannabis testing facility management; and

(e) Whenever possible, conduct functions that are independent from the cannabis testing facility operations for which they have quality assurance oversight.

(3) The QAO, regardless of other duties and responsibilities, must have defined responsibility and authority for ensuring that the management system related to quality and integrity of testing results is implemented and complied with at all times.

(4) The QAO duties and responsibilities may alternatively be carried out by the cannabis testing facility technical director.

(D) Cannabis Testing Facility Analyst. Any person who performs analytical tasks must meet the experience and educational requirements of an analyst and must be able to demonstrate proper performance of all analytical tasks. To be an analyst employed by a certified cannabis testing facility pursuant to this rule, a person must meet one of the following standards:

(1) Fulfill the qualification criteria required for the facility director; or

(2) Hold a bachelor’s degree in one of the related sciences; or

(3) Demonstrate completion of at least 2 years of college coursework and at least 1 year of practical laboratory experience.

(E) Cannabis Testing Facility Sample Collection. If the cannabis testing facility offers sample collection services, any person who performs sample collection for a cannabis testing facility must meet the experience and educational requirements of a sample collector contained in section 5.1.5 of this rule and be able to demonstrate appropriate sampling methods.

(2)Verification and Maintenance of Personnel Documentation. The cannabis testing facility must verify and maintain documentation of qualifications of all employees and contracted workers. Required documentation includes the following:

(A) Documentation of the employee’s education:

(1) The colleges and universities attended by the employee and the names and addresses of the colleges and universities, the major course of study, dates of attendance, degrees conferred and completion date;

(2) Official transcripts from the registrar of the colleges and universities attended by the employee showing all courses, course credits, degrees conferred, and dates degrees were conferred; and

(3) Records from credential evaluation services, including translations of transcripts from non-English-language colleges and universities. For an employee who attended a college or university not located in the United States (U.S.) or its territories, the requirement that the college or university be accredited is satisfied if the educational credentials of the employee are found, by the credential evaluation service, to be equivalent to those of a person who attended an accredited U.S. college or university.

(B) Documentation of each employee’s experience:

(1) Name and address of the laboratory or cannabis testing facility where the employee received non-course related experience, dates of employment, number of hours per week employed and a description of the testing and analytic methods performed by the person; and

(2) Signed documentation of such experience from the director or equivalent of the laboratory or cannabis testing facility.

(C) Records of all individual identification cards including the identification number and the date of issuance and expiration for every principal office, board member and employee of the cannabis testing facility.

(D) Personnel plans reflecting sufficient personnel with the necessary education, training, technical knowledge and experience for their assigned functions. cannabis testing facility management must:

(1) Specify and document the responsibility, authority and interrelationships of all personnel who manage, perform or verify work affecting the quality of the tests;

(2) Establish job descriptions to include the minimum level of qualifications, experience and basic cannabis testing facility skills necessary for all positions in the cannabis testing facility;

(3) Document authority of specific personnel to perform particular types of sampling and environmental testing, issue test reports, give opinions and interpretations and operate particular types of equipment; and

(4) Document authority of specific personnel to maintain document control policies, chain of custody forms for each sample tested and control access to certificate of analysis data.

(E) Records of the relevant authorization(s), demonstration(s) of capability, educational and professional qualifications, training, skills and experience of all technical personnel, including contracted personnel. This information must be readily available and include the date on which authorization and/or competence is confirmed.

(F) Documentation of the initials and signatures of anyone analyzing or reviewing data so that the records can be traced back to the individual approving the data.

( 3) Personnel Training and Supervision. The cannabis testing facility management must:

(A) Provide adequate supervision of staff by persons familiar with methods and procedures;

(B) Formulate goals with respect to the education and training skills of the cannabis testing facility personnel, including:

(1) Policies and procedures for identifying training needs and providing training of personnel;

(2) Ensuring relevance of the training program to the present and anticipated tasks of the cannabis testing facility; and

(3) Making documentation available upon request from the CDC;

(C) Ensure all technical cannabis testing facility staff has demonstrated capability in the activities for which they are responsible; and

(D) Ensure that the training of the cannabis testing facility personnel is kept up to date (on-going) by providing the following:

(1) Documentation that each employee has read, understands and uses the latest version of the cannabis testing facility’s quality documents and security plan;

(2) Training documentation on equipment, techniques and/or procedures;

(3) Training in ethical and legal responsibilities; and

(4) Documentation of each analyst’s continued performance at least once per year.

(E) Demonstrate capability as follows:

(1) The laboratory must demonstrate that it can properly perform all methods before conducting tests. An initial demonstration of capability must be completed each time there is a change in instrument, personnel or method.

(2) The demonstration of capability must be performed by spiking a known standard, containing all target analytes, into a clean matrix which duplicates that used for routine analysis. For analytes which do not lend themselves to spiking, the demonstration of capability may be performed using QC samples.

(3) All demonstrations must be documented. All data applicable to the demonstration must be retained for a minimum of five years and available for inspection. The laboratory must set reasonable criteria for acceptability of the demonstration of capability.

(F) Use the following procedure for an initial demonstration of capability:

(1) A QC sample must be prepared by the facility using stock standards that are not used in instrument calibration (e.g., calibration verification standard).

(2) The analyte(s) must be diluted in a volume of clean matrix sufficient to prepare four aliquots at the concentration specified, or if unspecified, to a concentration of the mid-level standard.

(3) At least four aliquots must be prepared and analyzed according to the test method either concurrently or over a period of days.

(4) Using all of the results, the facility must calculate the mean recovery in the appropriate reporting units and the sample standard deviations for each parameter of interest must be calculated. Recovery for each analyte in each aliquot and the calculated standard deviation must be within the limits specified by the facility. When it is not possible to determine mean and standard deviations, such as for presence or absence and logarithmic values, the facility must assess performance against established and documented criteria.

(5) It is the responsibility of the facility to document that any other approaches to the demonstration of capability are adequate.

(G) Use the following procedure for ongoing demonstrations of capability. After the initial demonstration of capability has been completed, the facility is required to continue demonstrating method performance through one of the following:

(1) Acceptable performance of a blind sample;

(2) Another demonstration of capability as described in paragraph 6 above;

(3) Analysis of at least four consecutive laboratory control samples with acceptable levels of precision and accuracy; or

(4) If one of the above cannot be performed, the analysis of cannabis samples that have been analyzed by another trained analyst with statistically indistinguishable results.

Results of all continuing demonstration of capability determinations must be documented in writing.

§ 5 - Samples for Testing and Research. A cannabis testing facility may offer a service to collect samples for mandatory testing from a licensee. A cannabis testing facility may contract with or otherwise accept samples for mandatory testing from a sample collector licensed pursuant to Title 28-B and the rules governing the adult use cannabis program. A cannabis testing facility may accept samples for mandatory testing from a self-sampling licensee authorized to collect samples pursuant to Title 28-B and the rules governing the adult use cannabis program. All samples for mandatory testing must be collected in accordance with Title 28-B and the rules governing the adult use cannabis program, including this rule.

(1) Samples for Mandatory Testing or Research and Development.

(A) Authorized collection of samples. In accordance with 28-B MRS §§604 and 604-A, all samples for mandatory testing under this rule must be collected by:

(1) An employee of the testing facility;

(2) A licensed sample collector; or

(3) A self-sampling licensee, collecting samples of cannabis or cannabis products cultivated, manufactured or otherwise produced by that licensee in compliance with all requirements of the rules governing the adult use cannabis program.

(B) Collection by cannabis testing facilities or sample collectors. An employee of a cannabis testing facility or a sample collector must collect samples of cannabis or cannabis products in compliance with:

(1) Sample collection recordkeeping requirements of 18-691 CMR, chs. 30 and 40;

(2) The Department-required sampling standard operating procedures;

(3) The Department-required Best Practices Guide;

(4) The requirements and restrictions of 28-B MRS § 604; and

(5) The requirements and restrictions of the rules governing the adult use cannabis program.

(C) Collection by self-sampling licensees. A self-sampling licensee may collect samples of cannabis or cannabis products cultivated, manufactured, or otherwise produced or sold by that licensee if the licensee has submitted all required documentation to the Department and in compliance with:

(1) Sample collection recordkeeping requirements of 18-691 CMR, chs. 30 and 40;

(2) The Department-required sampling standard operating procedures;

(3) The Department-required Best Practices Guide;

(4) The requirements and restrictions of 28-B MRS § 604-A; and

(5) The requirements and restrictions of the rules governing the adult use cannabis program.

(D) Required documentation and record keeping. An adult use cannabis cultivation, manufacturing, or cannabis store licensee requesting testing by a cannabis testing facility must indicate in its request for testing whether the requested testing is for mandatory testing purposes as required by the rules governing the adult use cannabis program, or for research and development purposes. The licensee must indicate in writing, prior to collection of the samples for testing, whether such testing is for mandatory testing purposes or for research and development purposes.

(1) Pursuant to 28-B MRS § 602(2), a licensee must maintain a record of all mandatory testing conducted at the request of the licensee that includes at a minimum:

(a) A description of the cannabis, cannabis concentrate or cannabis product submitted for mandatory testing;

(b) The identity of the testing facility conducting the mandatory testing; and

(c) The results of any and all mandatory testing conducted at the request of the licensee.

(E) Qualifications. Employees of a cannabis testing facility or sample collectors who collect samples from licensees must have a current individual identification card issued by OCP and must:

(1) Bephysically able to perform the duties, with or without reasonable accommodations;

(2) Pass initial and ongoing demonstrations of capability;

(3) When available, complete 8 hours of initial training on various sampling techniques; and

(4) When available, complete 8 hours of periodic refresher training annually.

(F) Transportation of Samples. A sample collector or self-sampling licensees may transport a sample from a licensee to the cannabis testing facility for testing and analysis.

(1) The sample collector or self-sampling licensee shall ensure the samples are not visible to the public. Samples shall be locked in a fully enclosed box, container or cage that is secured to the inside of the vehicle or trailer. For the purposes of this section, the inside of the vehicle includes the trunk.

(2) The sample collector or self-sampling licensees shall ensure that packages or containers holding cannabis goods samples are neither tampered with nor opened during transport.

(3) An employee of a cannabis testing facility who is collecting samples of cannabis, cannabis concentrate or cannabis products for mandatory testing shall only travel between licensees for whom the cannabis testing facility is conducting mandatory testing and the cannabis testing facility’s premises when engaged in the transportation of samples; a sample collector not employed by a cannabis testing facility shall only travel between licensees for whom the sample collector is collecting samples and the cannabis testing facility(ies) conducting the mandatory testing. A sample collector shall not deviate from the travel requirements described in this section, except for necessary meals or rest required by law, or refueling.

(4) The sample collector may transport multiple samples obtained from multiple licensees at once. A self-sampling licensee may transport only those samples collected by the licensee and must deliver those samples to the cannabis testing facility directly.

(5) Only persons who are in possession of a valid individual identification card issued by OCP may be in a vehicle or trailer transporting samples.

(6) All samples being transported must have a label with the following statement: “For Testing Purposes Only.”

( 2) Protocols for Acceptance of Samples Collected by Licensees or Other Qualified Persons. The cannabis testing facility must develop and maintain a plan for receiving samples for mandatory and other testing.

(A) SOPs. If the cannabis testing facility accepts samples from a sample collector or self-sampling licensee for mandatory or other testing, it must develop and maintain SOPs for receiving samples.

(1) A sample collector or self-sampling licensee must contact the cannabis testing facility(ies) and comply with the cannabis testing facility’s recommendations, based upon matrices sampled and analyses required, regarding, without limitation:

(a) Sample collection tools;

(b) Sample collection and transport containers;

(c) Whether any Field or Trip blanks are required to be collected, transported or otherwise used or delivered to the cannabis testing facility pursuant to the cannabis testing facility’s quality system; and

(d) Any limitations regarding sample delivery.

(2) The SOPs must have detailed chain of custody protocols for receiving samples.

(3) The SOPs must require sample collectors or self-samplers to address factors such as storage, environmental conditions, transportation of the batch or sample, tamper evident sealing and labeling samples for transport “For Testing Purposes Only.”

(4) The SOPs must address representativeness of the samples received from the sample collector or self-sampler; the sampling increments must be selected at random by the sample collector or self-sampler, and designed so that the samples collected reflect the total composition of the product.

(5) The SOPs must be designed to meet specified sample quality criteria, which is dependent upon whether the samples provided are for mandatory testing in compliance with the requirements of Title 28-B, ch. 1 or additional analyses not required by law. For non-mandatory test samples, this requires a sampling plan that includes enough representative sample increments to meet the client-specified confidence intervals.

(6) The SOPs must address volume of sample to be collected by sample collector or self-sampler from each batch in compliance with the requirements of section 6 of this rule for samples collected for mandatory testing , or client specifications for non-mandatory testing. This specification will ensure that adequate sample volume is collected for the analyses required, including all required quality control samples and any potential confirmation analysis.

( 3) Chain of Custody and Document Control Requirements. Testing facilities must develop and implement a chain of custody protocol to ensure accurate documentation of the handling, storage and destruction of cannabis samples. All samples for mandatory testing must also be accompanied by any documentation required by the testing facility.

(A) Chain of custody forms. The chain of custody protocol must require the use of a chain of custody form that contains, at a minimum, the following:

(1) Cannabis testing facility name, physical address and certification number of the cannabis testing facility analyzing the sample;

(2) Requester name, physical address and license or registration number; or if a registered caregiver, the registration card identification number; or if an exempt caregiver, the caregiver’s name and address; or if a qualifying patient, the patient’s name and address;

(3) Information regarding each primary sample, as follows:

(a) Unique primary sample identifier, as indicated on the sample container;

(b) For sample increments from the same sampled batch that are separated for homogeneity testing, the unique sample increment identifier as indicated on the container holding the separate sample increment for homogeneity testing;

(c) The number of containers used to collect samples;

(d) Date and time of the sample collection;

(e) The printed names and signatures of the sample collector(s);

(f) For cannabis products that need to be stored at specific temperatures: All conditions, including sample temperature at time of collection and temperature of the cooler used for transport; and

(g) The printed name and signature of the person at the cannabis testing facility receiving the sampled cannabis.

(B) Document control.

(1) Each time the sample changes custody, is transported, is removed from storage at the cannabis testing facility, or is destroyed, the date, time and the names and signatures of persons involved in these activities must be recorded on the chain of custody form.

(2) All documents must be controlled and retained in accordance with this rule.

(a) A complete chain of custody is required for each batch.

(b) If there is a quality assurance plan for the client, the sampling plan can be abbreviated to include the client and cannabis testing facility information and any variation or modification that occurred in the sampling event.

( 4) Sample Rejection.

(A) When samples are received by the cannabis testing facility, the cannabis testing facility must check the integrity of the samples. The cannabis testing facility must deem a sample compromised if one or more of the following has occurred:

(1) Broken shipping container;

(2) Evidence that the sample has been tampered with, manipulated, adulterated or contaminated;

(3) Evidence that the sample was not collected in the manner required by this rule or the DAFS-required sample collection SOP;

(4) Any missing or incomplete sample collection records required by testing facility in accordance with its quality system;

(5) The temperature of the sample is out of the required range to prevent microbial growth;

(6) The sample weight, as determined upon receipt by the cannabis testing facility, is greater than +/- 10% difference than the weight recorded on the transport manifest accompanying the samples; or

(7) Any other factor that may have negatively impacted the integrity of the sample since its collection.

(B) If the sample is rejected, the cannabis testing facility must document the sampling or handling errors, contact the requester and the sample collector (if the requester did not self-sample), schedule re-sampling and time for sample receipt, and document the conversation with all parties, including any additional specific instructions given to the sampling party to correct any sample deficiencies noted.

( 5) Sample Collection.

(A) Sample Collection by Cannabis Testing Facility Personnel.

(1) At minimum, the cannabis testing facility must use the Maine Adult Use Cannabis Program Sample Collection Standard Operating Procedure for Mandatory Testing included as Appendix A to the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40, and must complete for every batch a sample collection record to ensure it is collecting samples that support accurate analyses of cannabinoids, residual solvents and processing chemicals, contaminants, pesticides, microbiological impurities, mycotoxins, water activity, filth and foreign material and heavy metals, in compliance with Best Practice Guide for the Sample Collection of Adult Use Cannabis for Mandatory Testing published by DAFS.

(2) The cannabis testing facility must collect adequate samples of the cannabis, cannabis concentrate or cannabis product in the form in which it will be conveyed to a consumer (finished or unfinished plant material; cannabis concentrate; or an unpackaged or pre-packaged cannabis product) in accordance with Table § 5(5)-A. The sample must comprise the number of sample increments, selected at random, indicated in Table § 5(5)-A. The cannabis testing facility will combine these increments to make one complete sample for testing.

Table § 5(5)-A. Required Sample Size Based Upon Matrix Type and Batch Size

Matrix Type

Harvest Batch Weight Range*

Production Batch Units*

Primary Sample Amount

Plant Material

≤ 2.5 kg

6.5 g

(13 increments of 0.5 grams each)

2.5 kg < w ≤ 5 kg

9.5 g

(19 increments of 0.5 grams each)

5 kg < w ≤ 7.5 kg

16 g

(16 increments of 1 gram each)

7.5 kg < w ≤ 10 kg

22 g

(22 increments of 1 gram each)

Concentrate

≤ 0.5 kg

6 g

(12 increments of 0.5 grams each)

0.5 kg < w ≤ 1 kg

8 g

(16 increments of 0.5 grams each)

1 kg < w ≤ 1.5 kg

10 g

(20 increments of 0.5 grams each)

1.5 kg < w ≤ 2 kg

12 g

(24 increments of 0.5 grams each)

2 kg < w ≤ 5 kg

14 g

(28 increments of 0.5 grams each)

**Product ****

≤ 50

2 units

51 -150

3 units

151 - 500

5 units

501-1200

8 units

1201 -3200

13 units

3201-10000

20 units

*For harvest or production batches in excess of the sizes listed in this table (10 kg of plant material, 5 kg of concentrate or 10,000 production batch units), the batch must be divided and sampled in smaller batches in accordance with the batch size limits listed in this table and the rules governing the adult use cannabis program.

**For production batches of prepackaged cannabis products, one production unit is one sample increment. For production batches of unpackaged cannabis products, one serving size of the cannabis product is one sample increment.

(B) Sample Collection by Sample Collectors and Self-Samplers.

(1) Sample collectors and self-samplers must collect samples of cannabis, cannabis concentrate and cannabis products in accordance with OCP’s Maine Adult Use Cannabis Program Sample Collection Standard Operating Procedure for Mandatory Testing and must complete for every batch a sample collection record in addition to any additional forms, including chain of custody forms, required by the cannabis testing facility receiving the samples.

(2) Sample collectors and self-samplers must collect the required number of sample increments, based upon matrix type and batch size, in accordance with Table § 5(5)-A. The sample collector or self-sampler will specify in its sample collection records, after contacting the cannabis testing facility, the number and type of sample containers required to transport the primary sample and any separate sample increments to the testing facility for mandatory testing.

(a) Sample increments for homogeneity testing must be stored in a separate sample collection container from the other combined primary sample to ensure accurate testing.

(b) Sample increments for some analyses, depending on the instrumentation of the cannabis testing facility conducting the mandatory analyses, may require storage and transport in particular kinds of sample collection containers to ensure the integrity of the samples collected.

( 6) Sample Preparation and Testing.

(A) The cannabis testing facility must designate an area for preparation of cannabis product samples for analysis.

(B) The preparation area must include:

(1) Disposable gloves to be worn, to avoid sample contamination;

(2) Decontaminated or single-use disposable tool(s), including stainless steel spatulas, knives and/or disposable pipettes;

(3) Decontaminated stainless-steel bowls and implements for homogenizing samples appropriately;

(4) Clean, decontaminated surfaces for sample processing;

(5) Decontaminated or single use, disposable sample containers appropriate for processing;

(6) Labels and pens with indelible ink; and

(7) Necessary supplies for thoroughly cleaning, decontaminating and drying sample preparation tools and equipment between samples.

(C) The cannabis testing facility shall ensure that any primary samples of cannabis flower or cannabis trim, including pre-rolled cannabis cigarettes and infused pre-rolled cannabis cigarettes, are homogenized in accordance with the following requirements:

(1) The cannabis testing facility shall first remove any sample increments required to conduct testing for microbials and water activity; and

(2) The cannabis testing facility shall then homogenize, by grinding or other suitable method, enough of the remaining sample material to run all remaining analyses required plus any extra that may be needed for QC samples or retesting, including any stems, seeds or fan leaves submitted in the primary sample. For infused or uninfused pre-rolled cannabis cigarettes, the rolling paper shall be included in the sample for homogenization, but any filter not intended for combustion need not be included in the sample for homogenization. Samples must be homogenized to attain an average particle size of less than 1 millimeter.

(a) The testing facility shall determine, and record in the facility’s quality assurance manual, the percentage of the homogenized material necessary to ensure the representativeness of the sample tested.

(3) Any cannabis testing facility retesting of a portion of the original sample must be taken from the same homogeneous material of the original primary sample.

(4) Retesting of the original sample material by the cannabis testing facility may only be done to investigate instrument malfunctions, sample handling problems such as dilution errors, or for potency retesting in accordance with 28-B MRS, ch. 1. In the case of a clearly identified cannabis testing facility error, the retest results must substitute for the original test result. In the case of retesting for potency, the testing facility shall report the result of the initial potency test as well as the retest result.

(7) Instrument failures. In the event that a cannabis testing facility experiences an instrument failure for an instrument used to conduct mandatory testing on samples of cannabis or cannabis products, the cannabis testing facility shall provide notice, in accordance with this subsection, to OCP, CDC and any licensee that has submitted samples to the testing facility that cannot be tested by the cannabis testing facility due to the instrument failure. For the purposes of this subsection, “instrument failure” means any failure that impacts an instrument’s ability to conduct analyses and produce accurate mandatory test results in accordance with the method approved by the CDC.

Notice to OCP and CDC required.

(1) The cannabis testing facility shall notify OCP and CDC within 48 hours of an instrument becoming non-functional.

(2) The cannabis testing facility shall notify OCP and CDC as soon as the affected instrument is again functional.

(3) The cannabis testing facility shall promptly notify OCP and CDC if it determines an instrument will be non-functional for more than 5 business days.

(4) The cannabis testing facility shall promptly notify OCP and CDC if it determines an instrument will be non-functional for more than 30 calendar days. OCP or CDC may direct the cannabis testing facility to take additional action to mitigate the impact of such extended instrument failures.

(B) Notice to adult use cannabis establishment licensees required.

(1) After contacting OCP and CDC, the cannabis testing facility licensee shall provide notice to all adult use cannabis establishment licensees that are affected by the instrument failure. Notice must include:

(a) The date of the notice;

(b) Notice that the particular instrument has failed; and

(c) Notice that the affected licensee is permitted to submit a new sample from the affected batch to an alternative cannabis testing facility for all tests required for that sample.

(2) If the instrument is functional again within 5 business days, the cannabis testing facility shall provide notice to all adult use cannabis establishment licensees that were affected by the instrument failure stating that the instrument has been repaired and can be used for mandatory testing.

(3) If the instrument failure persists for more than 5 business days, the cannabis testing facility shall provide notice to all adult use cannabis establishment licensees that are affected by the instrument failure that:

(a) The affected licensees may submit a representative sample to the cannabis testing facility experiencing the instrument failure so that the affected cannabis testing facility can conduct all tests that it is able;

(b) The affected licensees may also submit a separate representative sample from the same batch to another cannabis testing facility so that that cannabis testing facility can conduct all mandatory tests that the first cannabis testing facility is unable to conduct due to the instrument failure; and

(c) Once the results of the tests conducted by each of the cannabis testing facilities have been entered into the inventory tracking system, either one of the testing facilities, or the cannabis establishment licensee that submitted the samples for mandatory testing, shall contact the inventory tracking system provider to note that the sample has undergone all required mandatory testing.

(C) A cannabis testing facility is prohibited from transferring to another cannabis testing facility a sample of cannabis or cannabis products submitted for mandatory testing by an adult use cannabis establishment licensee.

§ 6 - Testing of Cannabis and Cannabis Products.

( 1) Mandatory Testing Required. An adult use cannabis licensee may not sell or distribute adult use cannabis or an adult use cannabis product to a cannabis store for sale to a consumer unless the cannabis or cannabis product has been tested pursuant to this rule and that mandatory testing has demonstrated that the cannabis or cannabis product does not exceed the maximum level of allowable contamination for any contaminant that is injurious to health and for which testing is required, except that OCP may temporarily waive mandatory testing requirements under this section for any contaminant or factor for which OCP has determined that there exists no licensed cannabis testing facility in the state capable of and certified to perform such testing.

( 2) Mandatory Testing and Additional Analysis. Cannabis and cannabis products must be tested in accordance with this rule. OCP or a client may request additional analyses which will be specified by the cannabis testing facility in the written sampling plan.

(A) The following tests are mandatory for all cannabis or cannabis products, except seedlings, immature cannabis plants and seeds, prior to being transferred to a cannabis store for sale to a consumer:

(1) Filth and foreign material. Any visible contaminant, including without limitation hair, insects, feces, mold, sand, soil, cinders, dirt, packaging contaminants and manufacturing waste and by-products.

(2) Residual solvents, poisons and toxins. Acetone, acetonitrile, butane, ethanol, ethyl acetate, ethyl ether, heptane, hexane, isopropyl alcohol, methanol, pentane, propane, toluene, total xylenes (m, p, o-xylenes), 1,2-dichloroethane, benzene, chloroform, ethylene oxide, methylene chloride, trichloroethylene and any others used. A cannabis testing facility is not required analyze for residual solvents and processing chemicals in dried flower, kief, hashish or cannabis products manufactured without chemical solvents. A cannabis testing facility is not required to analyze an orally-consumed tincture containing alcohol for residual ethanol. A licensee is not required to test a cannabis product for residual solvents, poisons and toxins if all cannabis concentrate used to make the cannabis product has previously passed mandatory testing for residual solvents.

(3) Pesticides ( insecticides, fungicides, herbicides, acaricides, plant growth regulators, disinfectants, etc.). Any pesticide, insecticide, fungicide, herbicide, acaricide, plant growth regulator, disinfectant or any other chemical included as a pesticide in Table § 6(8)-A. A cannabis testing facility shall test cannabis concentrate for pesticides, fungicides, insecticides and growth regulators. A licensee is not required to test cannabis flower or trim for pesticides, fungicides, insecticides and growth regulators unless the cannabis flower or trim is intended for sale to a consumer as flower or trim, including flower or trim intended for sale to a consumer as a pre-rolled cannabis cigarette or infused pre-rolled cannabis cigarette. A licensee may not submit cannabis flower or trim that has not been dried for pesticides testing nor may a licensee submit cannabis products for pesticides testing.

(4) Other harmful chemicals (Metals). Cadmium (Cd), lead (Pb), arsenic (As) and mercury (Hg). A cannabis testing facility shall test cannabis concentrate for other harmful chemicals listed herein. A licensee is not required to test cannabis flower or trim for other harmful chemicals listed herein unless the cannabis flower or trim is intended for sale to a consumer as flower or trim, including flower or trim intended for sale to a consumer as a pre-rolled cannabis cigarette or infused pre-rolled cannabis cigarette. A licensee is not required to test a cannabis product for the other harmful chemicals listed herein if the cannabis concentrate used to make the cannabis product has previously passed mandatory testing for the other harmful chemicals listed herein. A licensee may not submit for metals testing cannabis flower or trim that has not been dried.

(5) Dangerous molds and mildew. Total yeast and mold, and for any cannabis or cannabis product that fails an initial test for total yeast and mold, mycotoxins including aflatoxins (B1, B2, G1, and G2) and ochratoxin A.

(6) Harmful microbes. Total viable aerobic bacteria, total coliforms, Enterobacteriaceae, Shiga toxin-producing E. coli (STEC) and Salmonella (spp.).

(7) THC potency, homogeneity and cannabinoid profiles. THC and any other cannabinoid to be referenced in labeling or marketing materials.

(8) Water activity. Testing for water activity is mandatory for solid and semi-solid edible cannabis products that do not require preservation by other means (e.g. refrigeration) and for cannabis plant material that is dried and prepared as a product in its final form of intended use and that is to be sold or transferred by a cultivation facility, products manufacturing facility or cannabis store.

(B) A registered or licensed cultivation facility, registered or licensed products manufacturing facility, registered inherently hazardous extraction facility, registered or exempt caregiver, or registered dispensary may submit for research and development purposes samples of cannabis, but such testing shall not be considered mandatory. Cannabis that is transferred to a cannabis store must still undergo mandatory testing as set forth herein.

(C) OCP or its designee will publish a best practices guidance document that includes examples of a sampling plan and preservation instructions appropriate to each matrix type.

(D) A cannabis testing facility must perform, and provide a certificate of analysis for, any test(s) requested by the CDC or OCP on any sample. Additionally, a cannabis testing facility shall utilize all quality assurance requirements described for adult use samples for every sample submitted by CDC or OCP, regardless of the origin of the sample. Such quality assurance requirements include quality control data reporting, traceability, corrective actions, sample receipt and all other requirements of this rule.

(E) Unless explicitly permitted by CDC or OCP in the event of instrument or equipment failure or other exigent circumstances, a cannabis testing facility shall not subcontract or otherwise transfer any sample submitted for mandatory analyses to any other testing facility for the purpose of conducting some or all the mandatory analyses required.

( 3) Testing Methodology.

(A) Testing facilities must develop and implement scientifically valid testing methodologies for the chemical, physical and microbial analysis of cannabis and cannabis products. A method validated in accordance with this section is deemed a scientifically valid testing methodology. The cannabis testing facility must not perform testing using a method that has not been validated.

(B) To the extent practicable, the cannabis testing facility’s testing methodologies must comport with the following guidelines:

(1) U.S. Food and Drug Administration’s Bacterial Analytical Manual, most recent version of target method;

(2) AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC International, 21^st Edition, 2019;

(3) Methods of analysis for contaminant testing published in the United States Pharmacopeia and the National Formulary (USP-NF) most recent version of target method; or

(4) If the cannabis testing facility wants to use an alternative scientifically valid testing methodology, the cannabis testing facility must validate the methodology and submit the validation study and standard operating procedure for the new methodology to the CDC.

(4) Validation of Non-Standard Test Methods or Technologies and Modified Standard Test Methods or Technologies.

(A) The cannabis testing facility may use a nonstandard method, including the use of a technology or instrumentation that is not one of the suggested instrumentations indicated in this rule, and including the use of a cannabis testing facility-designed or -developed method, a standard method used outside its intended scope or an amplification or a modified standard method for the analysis of samples, so long as the cannabis testing facility receives CDC certification for the use of such a nonstandard method.

(B) The cannabis testing facility must validate a desired method to use for the analysis of samples for each matrix. The cannabis testing facility must use one of the following guidelines, or equivalent methodologies, for validating a method, depending on the type of method:

(1) U.S. Food and Drug Administration’s Guidelines for the Validation of Methods for the Detection of Microbial Pathogens in Foods and Feeds, 3rd Edition, 2019; or

(2) U.S. Food and Drug Administration’s Guidelines for the Validation of Chemical Methods for the FDA FVM Program, 3rd Edition, 2019.

(C) At a minimum, the cannabis testing facility must conduct a level-one (emergency-use) single-cannabis testing facility validation study for all methods for testing for microbiological impurities or chemicals.

(D) A cannabis testing facility must include and address the criteria listed in Table § 6(4)-A in the cannabis testing facility’s level-one validation study.

Table § 6(4)-A. Microbiological-analysis method validation studies.

Criteria

Requirement

Number of target organisms; inclusivity

5

Number of non-target organisms; exclusivity

5

Number of analyte levels per matrix: Qualitative methods

3 levels: high and low inoculum levels and 1 uninoculated level

Number of analyte levels per matrix: Quantitative methods

4 levels: low, medium and high inoculum levels and 1 uninoculated level

Replicates per food at each level tested

2 or more replicates per level

Reference method comparison

No

(E) For purposes of validating standards for microbiological analysis, the following definitions apply:

(1) “Exclusivity” is the specificity of the test method. It evaluates the ability of the method to distinguish the target organisms from similar but genetically distinct non-target organisms.

(2) “Inclusivity” is the sensitivity of the test method, meaning its capability to discriminate between measurement responses representing different levels (e.g., concentrations) of a variable of interest. It evaluates the ability of the test method to detect a wide range of target organisms by a defined relatedness.

(F) For chemical analysis method validation studies:

(1) When high-concentration reference standards are available, testing facilities must employ direct spiking of the sample matrix.

(2) When high-concentration standards for matrix spiking are unavailable, matrix spikes may be made through post-processing and dilution spiking of samples before analysis, rather than direct sample-matrix spike.

(G) Testing facilities must use reference materials validation studies when cannabis reference materials become available.

( 5) Certificate of Analysis.

(A) For each primary sample of a batch tested, the cannabis testing facility must generate and provide a certificate of analysis to the requester and the CDC within two business days of the completion of the final data review.

(B) The certificate of analysis must, at a minimum, contain the following information:

(1) Cannabis testing facility’s name, mailing address and physical address;

(2) Sample-identifying information, including matrix type and unique sample identifiers;

(3) Sample history, including date collected, date received by the cannabis testing facility, whether the sample was collected by the cannabis testing facility or received from a licensee and date or dates of sample preparations and analyses;

(4) If applicable, the identity of the test methods used to analyze cannabinoids, residual solvents, pesticides, microbiological contaminants, mycotoxins, heavy metals and, if applicable, terpenes;

(5) If applicable, test results for sample homogeneity; cannabinoids; residual solvents; pesticides; microbiological contamination; and, if applicable, terpenes;

(6) The laboratory uncertainty for potency analysis;

(7) If applicable, the results of both the initial and retest results for cannabinoid potency conducted pursuant to sub-§ 6 below;

(8) If applicable, test results for water activity and visual inspection for filth and foreign material;

(9) The reporting limit for each analyte tested;

(10) The total primary sample weight in grams, reported to three significant figures;

(11) Whether the primary sample and batch “passed” or “failed” cannabis testing facility testing;

(12) The licensee for whom the testing was performed, including license number, name and source package identification number; and

(13) A disclaimer that not all potential/existing hazards were tested.

(C) The cannabis testing facility must validate the accuracy of the information contained in the certificate of analysis, and the facility director or QAO must sign and date the certificate of analysis.

(D) In the event that an error is discovered following the issuance of the certificate of analysis, the cannabis testing facility must correct the error through the correction and reissuance of the certificate of analysis to correct the error. The corrected certificate of analysis must state that it is a reissued version of a previous certificate of analysis and must include the original sample identifiers as well as the reason for reissuance.

(E) A cannabis testing facility shall submit electronic data deliverables of all certificates of analysis in the electronic format designated by the CDC in accordance with 10 MRS §9418 (2)(A).

( 6) Cannabinoids.

(A) When testing cannabinoid profile, the minimum representative sample size of 0.5 grams is required for all cannabis and cannabis products. The cannabis testing facility shall ensure that it retains, for a period of not less than 5 business days after the results are reported to the licensee that submitted the sample, enough of the primary sample necessary to conduct a retest of the cannabinoid potency upon request of the licensee that submitted the sample for mandatory testing.

(B) When testing cannabinoid profile, the cannabis testing facility must minimally test for and report measurements for the following cannabinoids stated in Table § 6(6)-A:

Table § 6(6)A. Cannabinoid Potency

Cannabinoid Potency as % of weight

∆⁹-THC

THCA

CBD

CBDA

Total THC (as sum of THCA and delta-9 THC)

Total CBD (as sum of CBDA and CBD)

Note: Testing Facility calculation for Total THC = delta-9 THC + (THCA0.877) and Total CBD = CBD + (CBDA0.877).

(C) For samples of cannabis flower, non-edible cannabis products and cannabis concentrate^[1], the cannabis testing facility must report, to three significant figures, the concentration in milligrams per gram (mg/g) of the cannabinoids listed in Table § 6(6)-A. For edible cannabis products, the cannabis testing facility must report, to three significant figures, the concentration in milligrams per serving (mg/serving) and milligrams per package (mg/package) of total THC in the product. The cannabis testing facility must report this information in the certificate of analysis. If a licensee requests that the cannabis testing facility retest the potency of the primary sample submitted, the cannabis testing facility shall report the results of both the initial cannabinoid potency testing, as well as the retest for cannabinoid potency.

(D) When determining whether a sample of edible cannabis product^[2] exceeds the 10 mg/serving and 200 mg/package limits, the cannabis testing facility must account for an allowable variance of 10% in accordance with 28-B MRS § 703.

(1) When determining whether a serving of edible cannabis products exceeds the potency limits, the cannabis testing facility may account for the following variance in the potency in excess of 10 mg/serving:

(a) Laboratory uncertainty, not to exceed 5% or 0.5 mg/serving; and

(b) An additional 10% allowable variance for edible cannabis products, which cannot exceed 1 mg/serving;

(c) For a total maximum allowable potency of 11 mg of Total THC/serving plus laboratory uncertainty which cannot exceed 5% or 0.5 mg/serving;

(2) When determining whether a multi-serving package of edible cannabis products exceeds the potency limits, the cannabis testing facility may account for the following variance in the potency in excess of 200 mg/package:

(a) Laboratory uncertainty, not to exceed 5% or 10 mg/package; and

(b) An additional allowable variance of up to 5 mg/package;

(c) For a total maximum potency per multi-serving package of edible cannabis products of 205 mg of Total THC/package plus laboratory uncertainty which cannot exceed 5% or 10 milligrams per multi-serving package.

(E) When determining whether a sample of edible cannabis product exceeds the 10 mg/serving and 200 mg/package limits required by 28-B MRS § 703, the cannabis testing facility must account for laboratory uncertainty, but under no circumstances may such uncertainty exceed 5%.

(F) If a batch of edible cannabis products is determined to exceed the allowable potency limits per serving or package, the batch may be remediated and retested. Remediation to address potency in excess of allowable limits may include the dilution of cannabinoids through the introduction of additional edible non-cannabis material to the batch of edible cannabis products.

(G) The cannabis testing facility may test for, and provide test results for, additional cannabinoids, if requested to do so by the client of the cannabis testing facility; however, these additional tests will not be certified by the CDC.

(H) When testing for homogeneity of cannabinoids in cannabis products:

(1) The cannabis testing facility must perform a homogeneity test for Total THC or Total CBD, whichever is purported by the manufacturer to be the largest ingredient content, for each production batch. If the amounts of Total THC and Total CBD are very similar (near 1:1), the cannabis testing facility must test for homogeneity of Total THC.

(2) A homogeneity test requires at least two increments, collected separately from those collected for the field primary sample, from different regions of the production batch, and analyzed as separate samples. Sample collection must be in accordance with procedures in the OCP’s best practices guidance document for sampling cannabis for mandatory testing purposes and the cannabis testing facility’s standard operating procedure for sampling.

(3) The cannabis testing facility must determine the relative standard deviation of Total THC or Total CBD content using test results of the two separately collected increments and the field primary sample collected for potency analysis. If the relative standard deviation is greater than 15%, then the batch “fails” the homogeneity test.

(I) When testing for homogeneity of edible cannabis products, a minimum size sample of 0.5 grams per increment is required.

(1) The number of samples required for analysis is specified in Table § 5(5)-A. Each increment constitutes one packaged unit.

(2) Total THC and, if applicable, Total CBD values between samples must not vary by more than 15% or the product fails testing.

( J) If a batch fails homogeneity testing, the batch may be remediated and retested.

( 7) Residual Solvents and Processing Chemicals.

(A) The minimum sample size of 0.5 grams of representative sample is required for residual solvent analysis.

(B) The cannabis testing facility must analyze samples in each production batch for residual solvents and processing chemicals, including but not limited to inherently hazardous substances, in accordance with Table § 6(7)-A.

(1) A licensee is not required to test a cannabis product for residual solvents, poisons and toxins if all cannabis concentrate used to make the cannabis product has previously passed mandatory testing for residual solvents.

(2) The cannabis testing facility is not required to analyze for residual solvents and processing chemicals in dried flower, kief and hashish or cannabis products manufactured without chemical solvents.

(3) The cannabis testing facility is not required to analyze an orally-consumed tincture cannabis product containing alcohol for residual ethanol.

(C) For the purposes of residual solvent testing, the cannabis testing facility must report that the sample “passed” residual-solvent testing, if the concentrations of residual solvents are reported at or below the residual solvents and processing chemicals action levels in Table § 6(7)-A below. cannabis

(D) The cannabis testing facility must report the solvents and processing chemicals listed in this section, in parts per million (ppm) to three significant figures. The cannabis testing facility must report this information in the certificate of analysis.

(E) The cannabis testing facility must test both the concentrations of solvents and processing chemicals in the sample within the certificate of analysis, as well as document clearly whether the sample “passed” or “failed” residual solvent and processing-chemicals testing.

(F) If the sample fails residual solvent testing, the batch may be remediated in accordance with all applicable rules from OCP. Under no circumstances may remediation be achieved through dilution of the batch that failed mandatory residual solvent testing.

(G) A remediated batch that previously failed a test due to exceeding the action levels for residual solvents must be retested for solvents.

Table § 6(7)-A. Concentration Limits for Residual Solvents, (mg/kg)

Chemical Name

CAS No.

Cannabis Product (ppm)

Acetone

67-64-1

5000

Acetonitrile

75-05-8

410

Butane^a

106-97-8

5000

Ethanol^b

64-17-5

5000

Ethyl acetate

141-78-6

5000

Ethyl ether

60-29-7

5000

Heptane

142-82-5

5000

Hexane**

110-54-3

290

Isopropyl alcohol^b

67-63-0

5000

Methanol

67-56-1

3000

Pentane

109-66-0

5000

Propane^a

74-98-6

5000

Toluene**

108-88-3

890

Total Xylenes (m, p, o-xylenes) **

1330-20-7

2170

1,2-Dichloroethane

107-06-2

1

Benzene**

71-43-2

1

Chloroform

67-66-3

1

Ethylene oxide

75-21-8

1

Methylene chloride

75-09-2

1

Trichloroethylene

79-01-6

1

Any other solvent detected not permitted for use

None Detected

** Due to the possible presence in the solvents approved for use, limits have been listed accordingly

Note :

(a) USP does not provide residual solvent limits for this solvent, the default USP Class 3 limits for acceptable use solvents was assigned as a limit.

(b) Products that are orally consumed and/or topically applied are exempt from ethanol limits.

( 8) Residual Pesticides and Growth Regulators.

(A) The minimum sample size is 0.5 grams of representative samples for all cannabis and cannabis products.

(B) The cannabis testing facility must test all cannabis and cannabis concentrate samples for pesticides, fungicides, insecticides and growth regulators to ensure pesticide use and use of plant regulators are in compliance with applicable rules related to pesticides.

A cannabis testing facility shall test cannabis concentrate for pesticides, fungicides, insecticides and growth regulators.

A licensee is not required to test cannabis flower or trim for pesticides, fungicides, insecticides and growth regulators unless the cannabis flower or trim is intended for sale to a consumer as flower or trim, including flower or trim intended for sale to a consumer as a pre-rolled cannabis cigarette or infused pre-rolled cannabis cigarette.

A cannabis testing facility shall not conduct mandatory pesticides testing on cannabis products.

A cannabis testing facility shall not accept for mandatory pesticides testing any cannabis flower or trim that has not been dried prior to collecting the samples for mandatory testing. This includes cannabis flower or trim that was previously frozen.

(C) The results of pesticide analyses must be less than the limits identified in Table § 6(8)-A below.

(D) The cannabis testing facility must report the levels detected in milligrams per kilogram (mg/kg) to three significant figures in the certificate of analysis. If a sample is found to contain pesticides above the cannabis limits listed in Table § 6(8)-A, the sample “fails” pesticide testing.

(E) The cannabis testing facility must analyze samples for the pesticides listed in Table § 6(8)-A below utilizing analytic procedures in accordance with 7 CFR, Part 205 and the Official Methods of Analysis of the AOAC International or other current applicable validated methodologies for determining the presence of contaminants in agricultural products.

(F) Batches of cannabis or cannabis concentrate that fail testing for pesticides may not be remediated but may be retested in accordance with the requirements of 18-691 CMR, ch. 40. Under no circumstance may a batch that has failed testing for pesticides be combined with another batch of cannabis or cannabis products.

Table § 6(8)-A. Concentration Limits for Pesticides, Fungicides and Growth Regulators, (mg/kg)

Pesticide

Cannabis (ppm)

Pesticide

Cannabis (ppm)

Abamectin

0.5

Imazalil

0.2

Acephate

0.4

Imidacloprid

0.4

Acequinocyl

2

Kresoxim-methyl

0.4

Acetamiprid

0.2

Malathion

0.2

Aldicarb

0.4

Metalaxyl

0.2

Azoxystrobin

0.2

Methiocarb

0.2

Bifenazate

0.2

Methomyl

0.4

Bifenthrin

0.2

Methyl parathion

0.2

Boscalid

0.4

MGK-264

0.2

Carbaryl

0.2

Myclobutanil

0.2

Carbofuran

0.2

Naled

0.5

Chlorantraniliprole

0.2

Oxamyl

1

Chlorfenapyr

1

Paclobutrazol

0.4

Chlorpyrifos

0.2

Permethrins ¹

0.2

Clofentezine

0.2

Phosmet

0.2

Cyfluthrin

1

Piperonylbutoxide

2

Cypermethrin

1

Prallethrin

0.2

Daminozide

1

Propiconazole

0.4

Diazinon

0.2

Propoxur

0.2

DDVP (Dichlorvos)

1

Pyrethrins ²

1

Dimethoate

0.2

Pyridaben

0.2

Ethoprophos

0.2

Spinosad

0.2

Etofenprox

0.4

Spiromesifen

0.2

Etoxazole

0.2

Spirotetramat

0.2

Fenoxycarb

0.2

Spiroxamine

0.4

Fenpyroximate

0.4

Tebuconazole

0.4

Fipronil

0.4

Thiacloprid

0.2

Flonicamid

1

Thiamethoxam

0.2

Fludioxonil

0.4

Trifloxystrobin

0.2

Hexythiazox

1

Note:

(a) Permethrins are measured as cumulative residue of cis- and trans- permethrin isomers. (CAS numbers 54774-45-7 and 51877-74-8 respectively).

(b) Pyrethrins are measured as cumulative residues of Pyrethrin. Cinerin, and Jasmolin (CAS number 8003-34-7).

( 9) Heavy Metals.

(A) The minimum representative sample size is 0.5 grams of all cannabis and cannabis products.

(B) When testing for heavy metals, the cannabis testing facility must analyze all samples for concentrations of the heavy metals listed in Table § 6(9)-A below.

A cannabis testing facility shall test cannabis concentrate for heavy metals.

A licensee is required to test for heavy metals cannabis flower or trim that is intended for sale to a consumer, including cannabis flower or trim intended for sale to a consumer as a pre-rolled cannabis cigarette or infused pre-rolled cannabis cigarette.

A licensee is not required to test a cannabis product for heavy metals if the cannabis concentrate used to make the cannabis product has previously passed mandatory testing for heavy metals.

A licensee submitting cannabis flower or trim for metals testing shall ensure that the cannabis flower or trim, including flower or trim that was previously frozen, has been dried prior to collecting samples for mandatory metals testing.

(C) The cannabis testing facility must report the concentration of each heavy metal in micrograms per kilogram (μg/kg) in the certificate of analysis.

(D) The cannabis testing facility must report that the sample “passed” heavy metal testing, if the concentrations of heavy metals listed in the table below are below the following heavy metal action levels.

(E) The cannabis testing facility may test for and report test results for additional metals, if the instrumentation detects additional metals in the samples, or if requested by the State or the client of the cannabis testing facility testing.

(F) Batches of cannabis or cannabis products that fail testing for metals may not be remediated but may be retested in accordance with the requirements of 18-691 CMR, ch. 40. Under no circumstances may a batch that has failed mandatory testing for metals be combined with another batch of cannabis or cannabis products.

Table §6(9)-A. Concentration Limits for Heavy Metals, (µg/kg)

Heavy Metal

Inhalation (ppb)

Ingestion or Suppository (ppb)

Topical Application (ppb)

Cadmium (Cd)

200

500

5000

Lead (Pb)

500

500

10,000

Arsenic (As)

200

1500

1000

Mercury (Hg)

100

3000

1000

These limits apply to cannabis and cannabis concentrate intended for ingestion, inhalation or dermal application, based on inhalation limits described in USP<232> Elemental Impurities-Limits.

( 10) Microbiological Impurities.

(A) The minimum representative sample size of 2.0 grams of finished plant material is required for analysis. The minimum representative sample size of 1.0 g of cannabis products is required for analysis. The minimum representative sample size of 1.0 g of cannabis concentrate is required for analysis.

(B) For the purposes of microbiological testing, the cannabis testing facility must report that the sample “passed” microbiological-impurity testing if the contaminants listed in Table § 6(10)-A below do not exceed the limits. If the cannabis product is found to have a contaminant in levels exceeding those established as permissible under this rule, then it failed microbial testing.

(1) Samples analyzed for yeast and mold shall be incubated for a minimum of 72 hours, regardless of the technology used for analysis.

(2) For microbiological testing using any plating method, the testing facility shall use an automated plate reader. The automated plate reader shall be used to read all plates, including those without growth. The plate reader shall maintain an audit trail including all raw data derived from the plate reader.

(3) Edible cannabis products that are fermented products shall not be subject to any limit for total viable aerobic bacteria. For the purposes of this exception “fermented products” means “foods made through desired microbial growth and enzymatic conversions of food components”.^[3]

(C) A licensee may attempt to remediate a batch of finished plant material or cannabis concentrate that fails microbial testing. Under no circumstances may remediation be achieved through dilution of the batch that failed mandatory testing.

(D) If the licensee chooses to remediate following a failed fungus or mold test, the batch will need to be retested by the same cannabis testing facility and shall include mycotoxin analysis, including Aflatoxins (B1, B2, G1 and G2) and Ochratoxin A. The total combined result of the five required mycotoxins must be less than 20 µg/kg to be considered a passing result.

Table § 6(10)-A. Limits for Microbiological Contaminants in CFU/g

Cannabis Material

Total Viable Aerobic Bacteria

Total Yeast and Mold

Total Coliform Bacteria

Enterobacteriacaea

E. coli (STEC) and Salmonella (spp.)

Plant Material and Cannabis Products

10⁵

10⁴

10³

10³

<1/g sample

CO₂ and Solvent-Based Concentrates

10⁴

10³

10²

10²

<1/g sample

Based on analytical limits based on American Herbal Pharmacopoeia, Revision 2014.

(E) The cannabis testing facility must report the concentration of each mycotoxin in micrograms per kilogram (µg/kg) to three significant figures in the certificate of analysis.

(F) The cannabis testing facility must report the concentration of total aerobic bacteria, total yeast and mold, total Coliform bacteria and Enterobacteriaceae in CFU/g to two significant figures in the certificate of analysis.

(G) The cannabis testing facility must report whether the strains listed in Table § 6(10)-A are detected, or are not detected, in 1.0 gram. The cannabis testing facility must report this information in the certificate of analysis. If any strains are detected above limits set in Table § 6(10)-A above, the batch fails testing and may not be released for sale.

(H) The cannabis testing facility may test for and provide test results for additional microorganisms if requested.

( 11) Water Activity.

(A) The minimum representative sample size of 0.5 grams of dried flower and 1.0 g of edible products is required for analysis.

(B) If the water activity in a dried flower production batch sample is at or below, 0.65 A_w, the sample “passes” water-activity testing.

(C) If the water activity in solid and semi-solid edible cannabis products that do not require additional preservation (e.g. refrigeration) is at, or below, 0.85 A_w, the sample “passes” water-activity testing.

(D) The cannabis testing facility must report the water-activity level of the sample in A_w to two significant figures.

(E) Batches of cannabis or cannabis products that fail testing for water activity may be remediated and/or retested in accordance with the requirements of 18-691 CMR, ch. 40. Under no circumstances may remediation be achieved through dilution of the batch that failed mandatory testing.

(F) The cannabis testing facility must report this information in the certificate of analysis.

(G) The cannabis testing facility may provide additional information on water activity results, if the cannabis testing facility determines that it is important, or if it is requested.

( 12) Visual Inspection for Filth and Foreign Material.

(A) The minimum sample size is 0.5 grams of representative samples.

(B) The cannabis testing facility must visually inspect, using magnification of at least 10x, all samples for signs of filth and foreign material present in the sample. Non-liquid samples shall be dissected so that all inner and outer surfaces of the sample may be inspected. “Filth and foreign material” includes, but is not limited to, hair, insects, feces, packaging contaminants and manufacturing waste and by-products.

(1) The samples shall not pass if any living or dead insect, at any life cycle stage; one hair; or one count of mammalian excreta is found.

(2) The sample shall not pass if more than one fourth of the total area is covered by mold, sand, soil, cinders, dirt or imbedded foreign material.

(C) The cannabis testing facility must report in the certificate of analysis whether the sample “passed” or “failed” visual inspection for filth and foreign material.

(1) If it fails visual inspection for filth and foreign material, the batch fails testing.

(2) A production batch that fails must be destroyed unless it can be remediated pursuant to any rules of OCP. Under no circumstances may remediation be achieved through dilution of the batch that failed mandatory testing.

(3) Failed batches not successfully remediated must be destroyed.

( 13) Terpenes.

(A) The cannabis testing facility may also report individual terpene results, as requested.

(B) If the product labeling reports that the sample contains discrete terpenes, the cannabis testing facility must test for those terpenes. The cannabis testing facility must report to one-hundredth of a percent the concentration in percentage in the certificate of analysis.

( 14) Quality Control.

(A) The cannabis testing facility must use quality control samples in the performance of each assay for chemical and microbiological analyses.

(1) The cannabis testing facility must analyze the quality control samples in the exact same manner as the test samples, to validate the testing results.

(B) The cannabis testing facility must run quality control samples with every analytical batch of samples. For chemical analyses, the cannabis testing facility must prepare and analyze samples in batches of up to 20 samples, to include a method blank, a laboratory control sample, a sample duplicate, a matrix spike sample, and a certified reference material when available.

(1) A method blank means an analyte-free matrix, to which all reagents are added in the same volumes or proportions as are used in sample preparation.

(a) Method blanks are analyzed under the same conditions, including sample preparation steps, as the other samples in the analytical batch to demonstrate the analytical process does not introduce contamination.

(b) If the method blank contains analyte(s) of interest greater than half of the reporting limit or limit of quantitation, but below the limit of quantitation, the data must be flagged with a “B” and an explanation noted in the certificate of analysis.

(c) If the method blank contains analyte(s) of interest above the limit of quantitation, it may be reanalyzed once. If the method blank is still above the limit of quantitation, the cannabis testing facility must seek to locate and reduce the source of the contamination, and then the entire batch must be re-prepared and reanalyzed. If the method blank results still do not meet the acceptance criteria, and/or reanalysis is not practical, then the cannabis testing facility must halt performing the analysis until resolution of this issue. Resolution of the issue requires the reduction of method blank measurements below the limit of quantification.

(d) In instances where the method blank contains analyte(s) of interest above the limit of quantitation but the samples in the associated batch do not contain any level of those specific analytes, the data for that batch may be reported as flagged as described in (b) above. If any of the samples in the batch contain those analytes at levels above the limit of quantitation, then that data cannot be reported, and the issue must be resolved before running further samples.

(2) A laboratory control sample means a simplified sample matrix, free from analytes of interest, spiked with known amounts of analytes, using a second source standard (a standard obtained from a different supplier than the calibration standards), where available, and taken through all sample preparation and analytical steps of the procedure, unless otherwise noted in a reference method (also known as a laboratory fortified blank, spiked blank or quality control check sample).

(a) When reference standards are commercially available in usable concentrations, and are applicable to the method being run, the cannabis testing facility must prepare and run one or more matrix samples spiked with the standard at a known concentration for each analytical batch up to 20 samples.

(b) For potency analysis, if a commercial reference standard is not available in usable concentrations, a cannabis testing facility may develop an in-house reference material as a spiking standard to be used in that analysis as described in section 6.13 B (5) (b) below. This spiking standard must contain at least one of the required target analytes for potency analysis.

(c) The cannabis testing facility must calculate the percent recovery for quantitative chemical analysis, for the laboratory control sample spiked with a known amount of reference standard. The acceptable percent recovery is ±20%.

(d) If the percent recovery is outside of the acceptable range, the cannabis testing facility must investigate the cause, correct the problem and re-run the batch of samples, if possible. If the problem persists, the cannabis testing facility must re-prepare the batch of samples and run the analysis again, if possible. If a laboratory control sample is performed and fails, it must be flagged with “*” and an explanation noted in the certificate of analysis.

(3) A sample duplicate means a separate aliquot of the sample carried through the complete preparation and analytical procedure.

(a) The acceptance criteria between the primary sample and the duplicate sample must be less than 20% relative percent difference. Relative percent difference is calculated using the following equation: RPD = │ (primary sample measurement – duplicate sample measurement) │ / ([primary sample measurement + duplicate sample measurement] / 2) × 100%.

(b) Limits must be set at <20% until enough data points are established to create lab defined limits. At no point can lab calculated limits be greater than the 20% listed in this rule.

(c) If the RPD exceeds the acceptance limits for a sample duplicate, it must be flagged with a “*” and an explanation noted in the certificate of analysis.

(4) A matrix spike means a sample prepared by adding a known quantity of analyte and subjecting the sample to the entire analytical procedure to determine the ability to recover the known analyte or compound.

(a) When reference standards are commercially available in usable concentrations and are applicable to the method being run, the cannabis testing facility must prepare and run one or more matrix samples spiked with the standard at a known concentration for each analytical batch up to 20 samples. The matrix spike sample must be prepared with all of the target analytes for that analysis with the exception of (b) below and that for residual solvents, the spike must contain all of the target analytes that have a pass/fail concentration limit greater than 1 ppm.

(b ) For potency analysis, if a commercial reference standard is not available in usable concentrations, a cannabis testing facility may develop an in-house reference material as a spiking standard to be used in that analysis as described in section 6.13 B (5) (b) below. This spiking standard must contain at least one of the required target analytes for potency analysis.

(c) The cannabis testing facility must calculate the percent recovery for quantitative chemical analysis by analyzing an aliquot of sample spiked with a known amount of reference standard. An aliquot of the sample is analyzed without the spike, and the result is subtracted from the spiked value. The sample result, after subtraction, is divided by the expected result and multiplied by 100. If interferences are present in the sample, results may be significantly higher or lower than the actual concentration contained in the sample. The acceptable percent recovery is 70% to 130%.

(d) If the percent recovery is outside of the range, the cannabis testing facility must investigate the cause, correct the problem and re-run the batch of samples, if possible. If the problem persists, the cannabis testing facility must re-prepare any affected sample and the associated matrix spike and run the analysis again, if possible. If the problem persists, the sample must be flagged with an “*” and an explanation noted in the certificate of analysis.

(5) A certified reference material (CRM) means a reference material, accompanied by a certificate, having a value, measurement of uncertainty and stated metrological traceability chain to a national metrology institute. The CRM must be in a matrix comparable to the samples being analyzed.

(a) When commercially available at a reasonable cost, a certified reference material must be obtained from an outside source.

(b) If an in-matrix CRM is not available from an outside source, the cannabis testing facility may make its own in-house reference material. In-house reference material must contain verified amounts of analytes determined by analyzing a batch of thoroughly homogenized sample material a minimum of ten times and using the average result of those ten replicate analyses as the accepted verified value.

(c) The CRM must fall within the quality control acceptance criteria given in its certificate, criteria given in a referenced test method, or be within +/- 20% of the given value, whichever is most stringent. If an in-house reference material is used, the result must fall within +/-20% of the verified value as determined in (b) above. If the result does not meet these criteria, the cannabis testing facility must investigate the cause, correct the problem and re-run the batch of samples, if possible. If the problem persists, the cannabis testing facility must re-prepare the samples and run the analysis again, if possible. If a CRM or in-house reference material is performed and fails, it must be flagged with an “*” and an explanation must be noted in the certificate of analysis.

(C) For microbiological analysis, the cannabis testing facility must prepare and analyze a negative control sample and a positive control sample for each new lot of testing media or reagent.

(1) A negative control sample means a QC sample for microbiological testing that is expected to produce a reaction which indicates the absence of the target organism.

(2) A positive control sample means a QC sample for microbiological testing that is expected to produce a reaction which indicates the presence of the target organism.

(3) Positive and negative control samples are analyzed under the same conditions as samples in an analytical batch to demonstrate the analytical process does not adversely affect test results.

(4) If the positive or negative control sample results do not meet acceptance criteria, the cannabis testing facility must investigate the cause, correct the problem, and rerun the positive and negative control samples. If the problem persists, the cannabis testing facility must reject the lot of testing media or reagent and use a new lot that passes QC testing.

(D) The cannabis testing facility must prepare calibration standards by diluting a standard solution to produce working standards used for calibration of the instrument and quantitation of analyses in samples.

(E) Cannabis testing facility must perform initial calibration of instruments and calibration verification.

(1) Initial Calibration.

(a) Sufficient records must be retained to permit reconstruction of the instrument calibration such as calibration date, approved method identification, instrument, analysis date, each analyte name, the manual or electronic identification of the analyst performing the test, concentration and response, calibration curve or response factor or unique equation or coefficient used to reduce instrument responses to concentration.

(b) Sample results must be quantitated from the most recent instrument calibration and may not be quantitated from any earlier instrument calibration verification.

(c) All instrument calibrations must be verified with a standard obtained from a second source such as a different manufacturer, when available. Traceability must be to a national standard, when available.

(d) Criteria for the acceptance of an instrument calibration shall include, at a minimum, a correlation coefficient not less than 0.99. Additional criteria used must be appropriate to the calibration technique employed and must be documented in the laboratory's SOP.

(e) If the instrument calibration results are outside established acceptance criteria, corrective actions must be performed, and all associated samples reanalyzed. If reanalysis of the samples is not possible, data associated with an unacceptable instrument calibration must be appropriately qualified on the test report.

(f) Calibration standards must include concentrations at or below the limit specified in the rule.

(g) The minimum number of calibration standards shall be dependent upon the calibration range desired. A minimum of three calibration standards are required to calibrate a range of a factor of 20 in concentration. For a factor of 50, at least four calibration standards are required, and for a factor of 100 or more, a least five calibration standards are required. The calibration standards must contain each analyte of concern at concentrations that define the range of the method. For each calibration range, one of the calibration standards must be at the RL, not including blanks or a zero standard, with the exception of instrument technology for which it has been established by methodologies and procedures that a zero and a single point standard are appropriate for calibrations. The cannabis testing facility must have an SOP that documents the protocol for determining the number of points required for the instrument calibration employed and the acceptance criteria for calibration.

(h) It is prohibited to remove data points from within a calibration range while still retaining the extreme ends of the calibration range.

(2) Calibration verification.

(a) When an instrument calibration is not performed on the day of analysis, the instrument calibration must be verified before analysis of samples by analyzing a calibration standard with each batch.

(b) Calibration verification must be repeated at the beginning of each batch, after every tenth sample, excluding QC samples, and at the end of each batch.

(c) Sufficient raw data records must be retained to permit reconstruction of the calibration verification, such as: instrument; analysis date; each analyte name, concentration and response; calibration curve or response factor; or unique equations or coefficients used to convert instrument responses into concentrations. Calibration verification records must explicitly connect the verification data to the instrument calibration.

(d) Criteria for the acceptance of calibration verifications must be established and evaluated using the same technique used to evaluate the instrument calibration.

(e) If the calibration verification results obtained are outside established acceptance criteria, corrective actions must be performed. If routine corrective action procedures fail to produce a second consecutive (immediate) calibration verification within acceptance criteria, then the cannabis testing facility must either demonstrate performance after corrective action by performing one successful calibration verification or perform a new instrument calibration. If the cannabis testing facility has not demonstrated acceptable performance after the corrective action, sample analyses must not occur until a new instrument calibration is established and verified. Sample data associated with unacceptable calibration verification may be reported as qualified data under the following special conditions if allowed in rule:

(i) When the acceptance criteria for the calibration verification are exceeded high (high bias) and all associated samples contain analytes below the RL, those sample results may be reported.

(ii) When the acceptance criteria for the calibration verification are exceeded low (low bias), the sample results may be reported if the concentration exceeds a maximum regulatory limit as defined by the rule.

(f) When allowed by rule, verification procedures may result in a set of correction factors. If correction factors are employed, the cannabis testing facility must have procedures to ensure that copies of all data records, such as in computer software, are correctly updated.

(g) Test equipment, including both hardware and software, must be safeguarded from adjustments that would invalidate the test results.

(F) The cannabis testing facility must store stock standards and reagents per manufacturer’s recommendations and use or discard by manufacturer’s expiration dates. All prepared standards and reagents must be traceable to stocks, and the date of preparations and expiration date must be traceable in facility documentation.

(G) If the response for a target analyte exceeds the working range of the calibration curve, the sample extract must be diluted and reanalyzed.

(H) For chemical analyses, a cannabis testing facility shall utilize an internal standard when possible, and for pesticide analyses, also use surrogate standards as appropriate. Internal standard instrument response (i.e. area count) must be monitored for the instrument calibration, calibration verification, batch QC and samples. Acceptance criteria for the internal standard must preclude instrument malfunction, sample interferences, and preparation errors. The response of the internal standard for calibration verifications must be +/- 30% of the average of the internal standard response from the initial calibration. The internal standard response for batch QC and samples must be within +/- 50% of the internal standard response from the initial calibration verification in the analytical batch.

(I) All quality control measures must be assessed and evaluated on an ongoing basis. QC acceptance criteria in the cannabis testing facility’s QA manual must be used to determine the validity of data.

(J) All instrument method detection and reporting limit studies shall be completed at least annually, and upon a change in methodology.

(K) If the cannabis testing facility finds evidence that a sample is contaminated due to contamination in the sample collection process, the cannabis testing facility will contact the individual or entity responsible for sample collection to validate the sample collector or self-sampling licensee’s decontamination procedure.

(L) Upon request by the CDC, the cannabis testing facility must in a timely manner generate and submit to CDC a quality control sample report that includes QC parameters and measurements, analysis date and matrix.

(M) CDC may require in writing reasonable additional quality control measures for any testing methodology as found in previously established Federal or State guidelines such as:

(1) AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC International, 21^st Edition, 2019;

(2) U.S. Food and Drug Administration’s NCIMS 2400 Forms, Rev. 04/2019; or

(3) State of Maine Comprehensive and Limited Environmental Laboratory Accreditation Rule, 10-144 CMR Ch. 263 (2018).

(N) CDC and OCP may require a cannabis testing facility to submit to interlaboratory testing at its discretion.

§ 7 - Recordkeeping Requirements.

( 1) Recordkeeping Requirements.

(A) The cannabis testing facility must maintain analytical records to demonstrate to the CDC the following: the analyst’s name; date of analysis; approver of the certificate of analysis and relevant data package; the test method; and the materials used.

(1) Cannabis testing facility recordkeeping may be on paper or on electronic, magnetic or optical media and must be stored in such a way that the data are readily retrieved when requested by the OCP or the CDC.

(2) If the cannabis testing facility recordkeeping is not on paper, the cannabis testing facility must be able to produce them in hard copy for OCP or the CDC, upon request.

(3) All cannabis testing facility records must be kept for a minimum of five years.

(4) OCP and the CDC must be allowed access to all electronic data, including standards records, calibration records, extraction logs, cannabis testing facility notebooks and all other cannabis testing facility-related documents listed below.

(B) The cannabis testing facility must maintain all documents, forms, records and standard operating procedures associated with the cannabis testing facility’s methods, including without limitation the following:

(1) Current personnel qualification, training and competency documentation, including, but not limited to, resumes, training records, continuing education records, analytical proficiency testing records and demonstration of capability records or attestations for cannabis testing facility work;

(2) Method verification and validation records, including records relating to method modification; method detection limit and reporting limit determination; ongoing verification, such as proficiency testing; and reference material analysis;

(3) Quality control and quality assurance records, including the cannabis testing facility’s quality assurance manual and control charts with control limits;

(4) Any sample collection records the testing facility requires licensees to submit with every sample collected and submitted for mandatory testing, if applicable in accordance with the testing facility’s quality system;

(5) Chain of custody records, including chain of custody forms, applicable field sample logs, and record relating to sample receipt, sample descriptions, sample rejections, laboratory information management system (LIMS), sample storage, sample retention and disposal;

(6) Records relating to purchasing and supply, purchase requisitions, packing slips, and supplier records;

(7) Certificates of analysis;

(8) Records of equipment installation, maintenance and calibration, including date; name of person performing the installation, calibration or maintenance; and description of the work performed; internal maintenance logs, pipette calibration records, thermometer calibration records, balance calibration records, working and reference mass calibration records and daily verification-of-calibration records;

(9) Customer service records, including include contracts with customers, customer request records, transaction records and customer feedback;

(10) Records related to the handling of complaints, nonconformities, and corrective action, including records of internal investigations, customer notifications and implementation of corrective action plans;

(11) Internal and external audit records, including audit checklists, standard operating procedures and audit observation and findings reports, including the date and name of the person or persons performing the audit;

(12) Management review records, including technical data review reports and final management review reports, with review date and the identity of the reviewer;

(13) Cannabis testing facility data reports, data review and data approval records, which must include the analysis date and the name of the analysts, including instrument and equipment identification records, records with unique sample identifiers, analysts’ cannabis testing facility notebooks and logbooks, traceability records, test-method worksheets and forms, instrumentation-calibration data and test-method raw data;

(14) Proficiency testing records, including the proficiency test schedule, proficiency test reports, and records of data review, data reporting, nonconforming work, corrective action, quality control and quality assurance;

(15) Electronic data, backed-up data, records regarding the protection of data and cannabis testing facility security records, including raw unprocessed instrument output data files and processed quantitation output files, electronic data protocols and records, authorized personnel records and cannabis testing facility access records and surveillance- and security-equipment records;

(16) Traceability, raw data, standards records, calibration records, extraction logs, reference materials records, raw data maintained as an audit trail for plate readers as applicable, analysts’ cannabis testing facility notebooks and logbooks, supplier records and all other data-related records; and

(17) Cannabis testing facility contamination and cleaning records, including autoclave records, acid wash logs and records and general cannabis testing facility safety and chemical-hygiene protocols.

(C) If the records are missing or incomplete, or if the cannabis testing facility does not produce the records for OCP or the CDC upon request, OCP or the CDC may take disciplinary action against the cannabis testing facility. The cannabis testing facility shall have 7 calendar days from issuance of request to respond.

( 2) Data Package Requests.

(A) The cannabis testing facility must retain the entire data package for each sample the cannabis testing facility analyzes for a minimum of five years and make available to OCP or the CDC upon request. The data package must contain, at a minimum, the following information:

(1) The name and address of the cannabis testing facility that performed the analytical procedures;

(2) Any sample collection records required by the testing facility’s quality system, if applicable, for each batch of cannabis, cannabis concentrate or cannabis product submitted for mandatory testing;

(3) The names, functions and signatures of the cannabis testing facility personnel that performed sample preparation and analyses and reviewed and approved the data;

(4) All sample and batch quality control sample results;

(5) Raw data for each sample;

(6) Instrument raw data, if any;

(7) Instrument test method with parameters;

(8) Instrument tune report;

(9) All instrument calibration data;

(10) Test method worksheets or forms used for sample identification, characterization and calculations, including chromatograms, sample preparation worksheets and final datasheets;

(11) Quality control report with worksheets, forms or copies of cannabis testing facility notebook pages containing pertinent information related to the identification and traceability of all reagents, reference materials and standards used for analysis;

(12) Analytical batch sample sequences;

(13) The field sample log and the chain of custody form; and

(14) The certificate of analysis created, as required under this rule.

(B) The cannabis testing facility must make the data package for a sample available.

(C) After the data package has been compiled, the facility director or QAO must:

(1) Review the analytical results for technical correctness and completeness;

(2) Verify that the results of each analysis carried out by the cannabis testing facility are reported accurately, clearly, unambiguously and objectively and that the measurements are traceable; and

(3) Approve the measurement results by signing and dating the data package prior to release of the data by the cannabis testing facility.

(D) The testing facility must submit requested sample results to the CDC in an electronic format acceptable to the Maine Cannabis Certification Program (MMCP). This includes the reporting of all required laboratory quality control information and associated acceptance limits.

( 3) Electronic Data.

(A) Testing facilities must store all raw unprocessed instrument output data files and processed quantitation output files on some form of electronic, magnetic or optical media. The cannabis testing facility must allow access to these records for inspection and audit.

(B) Testing facilities must install, manage and maintain password-protection for electronically stored data, including any certificate of analysis.

§ 8 - Waste Disposal Plan.

( 1) Waste Disposal SOP required. In addition to the SOPs required in section 3 of this rule, a cannabis testing facility must possess and follow written SOPs for the disposal of samples, digestates, leachates and extracts or other sample preparation products. All waste must be managed according to the following requirements:

(A) Solid waste, as defined in the Maine Hazardous Waste, Septage and Solid Waste Management Act , 38 MRS § 1303-C(29), must be managed in accordance with the Solid Waste Management Rules , 06-096 CMR, Ch. 400-425.

(B) The cannabis testing facility must destroy nonhazardous used or unused cannabis test samples in accordance with the facility’s standard operating procedure and this rule.

(C) To render cannabis goods into cannabis waste, the cannabis testing facility must add the cannabis to other material not suitable for human consumption (e.g. agricultural manure suitable for composting, other compostable material) and mix it thoroughly. The resulting mixture must be at least 50% non-cannabis material. Licensees must render goods into cannabis waste one batch at a time and track that batch through its disposal in the statewide inventory tracking system.

(D) It is unlawful for any cannabis testing facility to dispose of cannabis goods or waste in a trashcan, dumpster or other similar receptacle, unless the nonhazardous goods or waste is composted and made unusable as described in this section. Testing facilities are required to quarantine cannabis goods on the premises for at least 3 business days to permit OCP time to investigate or witness the destruction process.

(E) The cannabis testing facility must document the quarantine, rendering into cannabis waste, and disposal or deposition of the cannabis waste. A cannabis testing facility may retain and utilize cannabis and cannabis products for use as standards or for method development.

(F) Hazardous wastes, as defined by 38 MRS § 1303-C(15), with the exception of infectious and pathogenic wastes, and in 06-096 CMR, Ch. 850, must be managed in accordance with Maine’s Standards for Hazardous Waste Facilities Rules, Interim Licenses for Waste Facilities for Hazardous Wastes Rules, Licensing of Hazardous Waste Facilities Rules and Hazardous Waste Manifest Requirements (See 06-096 CMR, Chs. 850-857).

(G) If there is a conflict between another applicable rule or regulation and this rule, the more restrictive requirement applies.

§ 9 - Changes to Cannabis Testing Facility Operations.

( 1) Post-Certification Change Notification.

(A) The cannabis testing facility must provide OCP and the CDC with a written notice of any change described below at least thirty calendar days prior to the proposed effective date of the change:

(1) Change in ownership of the cannabis testing facility as defined in section 2 of this rule;

(2) Change in the cannabis testing facility’s facility director or QAO;

(3) Changes in the approved location for an analysis;

(4) Major changes in analytical equipment;

(5) Change to approved premises floor plan submitted to OCP in the cannabis testing facility’s license application, including without limitation proposed premises expansion;

(6) Discontinuation of, or failure to launch, cannabis testing facility activities.

(B) When there is a change in location or change in technology of analysis, the cannabis testing facility must provide results of proficiency testing samples or a demonstration of capability, analyzed in the new cannabis testing facility location or analyzed under a change in instrumentation.

(C) Unless the cannabis testing facility provides timely notification of the above changes and receives prior approval or waiver of the requirement of prior notice and approval by OCP and the CDC, the certification of the field of testing is void and must be returned to the CDC.

§ 10 - Denial, Suspension, Limitation or Revocation of Certification by the CDC.

( 1) Denial, Suspension or Revocation of Provisional Certification.

(A) The CDC may suspend a provisional certification if the provisional licensee fails to obtain ISO/IEC 17025:2017 or most recent version accreditation within the period of the original provisional certification.

(B) The CDC shall revoke a provisional certification if the provisional licensee is denied ISO/IEC 17025:2017 or most recent version accreditation.

( 2) Denial, Suspension or Revocation of Certification.

(A) The CDC may deny, revoke, suspend, or not renew the certification of any cannabis testing facility for engaging in conduct that includes, but is not limited to, the following:

(1) Failure to observe any term of certification;

(2) Failure to observe any order, request or other directive made under the statutory authority vested in OCP or the CDC;

(3) Engaging in, aiding, abetting, causing or permitting any action prohibited under 22 MRS, chapter 558-C or 28-B MRS, chapter 1;

(4) Failure to comply with any regulatory requirement of these rules and any other applicable state regulation or statute;

(5) Making false or deceptive representation on any application for certification or renewal thereof;

(6) Failure to maintain professional, competent and ethical standards of practice;

(7) Making false or deceptive representation of any testing results and reports thereof;

(8) Failure to provide timely and accurate data reporting;

(9) Engaging in false or deceptive advertising; or

(10) Providing services associated with product labeling for a licensed establishment, registered dispensary, or an exempt or registered caregiver; a principal officer, board member of a registered dispensary; or an employee or assistant of a registered dispensary or an exempt or registered caregiver who has a financial or other interest in the cannabis testing facility.

(B) The CDC may deny, revoke or suspend the certification of any cannabis testing facility if the municipality wherein the cannabis testing facility is located has informed OCP that it has revoked, suspended or not renewed local authorization of the cannabis testing facility.

(C) The CDC shall communicate any denial, suspension or revocation in writing, along with a notice of the licensee’s right to appeal, consistent with the Maine Administrative Procedures Act, 5 MRS, chapter 375.

§ 11 - Certification Fees for Testing Facilities.

( 1) CDC Certification Fees. The following fees are required for cannabis testing facility certification. However, these fees are subject to an annual maximum of $2,500 per cannabis testing facility.

(A) Provisional Certification: A cannabis testing facility that has applied for but has not yet obtained ISO/IEC 17025:2017 or most recent version accreditation is required to pay a base fee of $1,250 plus appropriate technology fees to apply for a provisional certification.

(B) Full Certification: The CDC shall issue full certification to a cannabis testing facility holding provisional certification in good standing once the cannabis testing facility provides proof of ISO/IEC 17025:2017 or most recent version accreditation and pays an application fee of $500.

(C) Full Certification without Provisional Certification: An applicant that has received ISO/IEC 17025:2017 or most recent version accreditation but does not have provisional certification may apply for full certification directly. The cannabis testing facility is required to pay an application fee of $1,000 for initial certification, plus applicable technology fees.

(D) Renewal: The cannabis testing facility is required to pay an annual application fee of $1,000 plus appropriate technology fees to apply for annual recertification.

(E) Technology fees: An applicant must pay the fees listed in Table § 11(1)-A for each technology certified.

Table § 11(1)-A. Technology Fees

Analyte Category

Technology Fee

Microbiological Contaminants

Visual Inspection

Water Activity

$50 per technology

Metals

$125 per technology

Solvents

Pesticides

Cannabinoids

$150 per technology

(2) Payment of Certification Fees Required Prior to Full Active or Provisional Active Licensure.

(A) OCP may not issue a provisional active license or active license until the applicant meets all requirements and pays all applicable fees.

(B) All applications or requests to change the scope of activities to be conducted under a cannabis testing facility license must be accompanied by the applicable fees specified in this section.

(C) Application fees apply to the addition of technologies for reinstatement after revocation or denial of licenses.

(D) Payment of fees must be in the form of a check or money order, made payable to the ‘‘Treasurer, State of Maine.’’

Fiscal impact note, included pursuant to 5 MRS § 8063: The Department estimates that the changes implemented by this rulemaking will have no fiscal impact on municipalities and counties.

For the purposes of potency testing, a cannabis testing facility shall analyze a pre-rolled cannabis cigarette that is infused with cannabis concentrate as a cannabis concentrate. ↑

For production batches of prepackaged cannabis products, one production unit (product packaged for retail sale in either a single or multi-serving package) is one sample increment. For production batches of unpackaged cannabis products, one serving size of the cannabis product is one sample increment. ↑

Marco, M.L., Sanders, M.E., Gänzle, M. et al. The International Scientific Association for Probiotics and Prebiotics (ISAPP) consensus statement on fermented foods. Nat Rev Gastroenterol Hepatol 18, 196–208 (2021). https://doi.org/10.1038/s41575-020-00390-5 ↑

Chapter 10 Rules for the Administration of the Adult Use Cannabis Program

Code Me. R. 18-691 Ch. 10 - Adult Use Cannabis Program {#sec-18-691-ch.-10 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 10}

§ 1 - Administrative

(1) Statutory Authority

(2) Department Authority

(3) Communication with Department

(4) Definitions

§ 2 - Fee Schedule

(1) Payment of Fees

(2) Return of Fees Prohibited

(3) Individual Identification Card Fees

(4) Fingerprinting and Criminal History Record Check Fee

(5) Tracking System Fees

(6) Cultivation Facility Application and License Fees

(7) Other Cannabis Establishment Application and License Fees

(8) Other Cannabis Establishment Fees

(9) Annual Renewal and Late Renewal Application and License Fees

Chapter 10 – Administration of the Adult Use Cannabis Program

This rule governs the administration of the rules that govern the Adult Use Cannabis Program. The terms defined in this rule are applicable to all rules governing the Adult Use Cannabis Program. All applicants, licensees and individual identification cardholders that are authorized to conduct activities pursuant to licenses or individual identification cards issued pursuant to Rules for the Licensure of Adult Use Cannabis Establishments, 18-691 CMR, ch. 20 must also at all times comply with the requirements of that rule and of Title 28-B of the Maine Revised Statutes and the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, the Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40, as well as the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5 and any other applicable local, state or federal laws or regulations. Collectively, 18-691 CMR, chapters 5, 10, 20, 30, and 40 are the “rules governing the adult use cannabis program”.

§1 - Administrative. The rules governing the adult use cannabis program establish the requirements for becoming a licensed cannabis establishment, including fees, application and licensing processes, and procedures for cultivation, manufacture, sample collection, testing, and retail sale of adult use cannabis and adult use cannabis products. The activities described in the rules governing the adult use cannabis program may be considered a violation of federal law. Persons cultivating, manufacturing, collecting samples of, testing, selling, purchasing, or otherwise receiving adult use cannabis or adult use cannabis products may be subject to federal sanctions for what may otherwise be considered authorized conduct in the State of Maine, and compliance with the rules governing the adult use cannabis program does not exempt licensees, their employees, or customers from possible federal prosecution. The Department is not responsible or liable for the actions of licensed cannabis establishments under the rule.

(1) Statutory Authority. The Department of Administrative and Financial Services (referred heretofore as the Department), acting through its Office of Cannabis Policy, has developed the rules governing the adult use cannabis program in accordance with the statutory authority provided in Title 28-B, §104-C for the purpose of implementing, administering and enforcing the provisions of 28-B MRS, ch. 1.

(2) Department Authority. The Department may enforce this rule and all other rules governing the adult use program and any relevant provisions of 4 MRS, 5 MRS, 28-B MRS, and other general statutes, laws, executive orders, or subsequently passed legislation. The Department shall set licensing fees in accordance with 28-B MRS §207. As applicable, the Department may delegate authority to appropriate state and local agencies. The Department, or an agent thereof, shall have the authority to inspect, during business hours any cannabis establishment, vehicles used to transport cannabis, cannabis products, or inventory tracking system records.

(3) Communication with Department.

(A) Written Communications. If an applicant or licensee is required to or elects to submit anything in writing to the Department, unless otherwise prescribed by the Department, the applicant or licensee may submit the writing to the Department via:

(1) Mail;

(2) In-person delivery;

(3) Facsimile; or

(4) E-mail.

(B) Submission Deadline. If a written notification must be submitted by a deadline it must be received by the Department, regardless of the method used to submit the writing, by 5:00 p.m. Eastern Time (ET)

(4) Definitions.

Action level: “Action level” means the threshold value for determining whether a sample passes or fails an analytical test.

Active license: “Active license” means a license issued by the Department that authorizes cultivation, sample collection, testing, manufacture or sale of cannabis, or cannabis products in accordance with 28-B MRS and the rules governing the adult use cannabis program, including a provisional active license to operate a cannabis testing facility.

Adult use cannabis: “Adult use cannabis” means cannabis cultivated, manufactured, tested, distributed, or sold by a cannabis establishment. Unless otherwise specified, all references throughout this rule and the rules governing the adult use cannabis program to “cannabis” are referring to “adult use cannabis”.

Adult use cannabis product: “Adult use cannabis product” means a cannabis product that is manufactured, distributed, or sold by a cannabis establishment.

Advertising: “Advertising” means publicizing the trade name of a licensee together with words or symbols referring to cannabis or publicizing the brand or logo of cannabis or cannabis products.

Analyst: “Analyst” means the designated individual who tests the samples by performing the “hands-on” analytical methods and associated techniques. The analyst is responsible for applying required testing facility practices and other pertinent quality controls to meet the required level of quality.

Analyte: “Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin that is identified or measured.

Another jurisdiction: “Another jurisdiction” means the Federal Government, the United States military, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, and each of the several states of the United States except Maine.

Applicant: “Applicant” means a person who submits an application for a license, or as applicable, an individual identification card, under the rules governing the adult use cannabis program to the Department for review that the Department has not yet approved or denied.

Batch: “Batch” means:

(1) A harvest batch; or

(2) A production batch.

Batch number: “Batch number” means a distinct group of numbers, letters or symbols, or any combination thereof, assigned to a specific batch of cannabis by a cultivation facility, sample collector, testing facility, or a cannabis store or to a specific batch of cannabis or cannabis products by a products manufacturing facility, sample collector, testing facility, or a cannabis store.

Best Practices Guide: “Best Practices Guide” means the Best Practices for the Sampling of Adult Use Cannabis , Version 3.1, dated September 11, 2020, published by the Department available at: https://www.maine.gov/dafs/ocp/sites/maine.gov.dafs.ocp/files/inline-files/AUMP_Mandatory_Testing-Best_Practice_Guide_Sample_Collection.pdfwhich is incorporated herein by reference. All licensees and any employee of a licensee collecting samples of cannabis, cannabis concentrate, or cannabis products for mandatory testing must collect samples in accordance with the best practices described in the guide.

Brand: “Brand” means a name, term, design, or symbol that identifies a licensee’s or licensed goods or services as distinct from those of other licensees or brands.

Business entity: “Business entity” means a partnership, association, company, corporation, limited liability company, or other entity incorporated or otherwise formed or organized by law. “Business entity” does not include a federal, state, or municipal government organization.

Business hours: “Business hours” means 9 A.M. to 5 P.M. Monday through Friday.

Cannabinoid: “Cannabinoid” means a chemical compound that is unique to, and derived from, cannabis.

Cannabis: “Cannabis” means the leaves, stems, flowers and seeds of a cannabis plant, whether growing or not. “Cannabis” includes cannabis concentrate, except where context indicates otherwise, but does not include hemp as defined in 7 MRS §2231, or a cannabis product.

Cannabis concentrate: “Cannabis concentrate” means the resin extracted from any part of a cannabis plant and every compound, manufacture, salt, derivative, mixture or preparation from such resin, including, but not limited to, hashish. In determining the weight of cannabis concentrate in a cannabis product, the weight of any other ingredient combined with cannabis or cannabis concentrate to prepare the cannabis product may not be included.

Cannabis drink: “Cannabis drink” means a liquid edible cannabis product with a concentration of less than 1 mg of THC per ounce of liquid.

Cannabis establishment: “Cannabis establishment” means a cultivation facility, a products manufacturing facility, a testing facility, a sample collector, or a cannabis store licensed under 28-B MRS and the rules governing the adult use cannabis program.

Cannabis extraction: “Cannabis extraction” means the process of extracting cannabis concentrate from cannabis using water, lipids, gases, solvents, or other chemicals or chemical processes.

Cannabis flower: “Cannabis flower” means the pistillate reproductive organs of a mature cannabis plant, whether processed or unprocessed, including the flowers and buds of the plant. “Cannabis flower” does not include cannabis trim or whole mature cannabis plants, but does include kief.

Cannabis plant: “Cannabis plant” means all species of the plant genus cannabis, including, but not limited to, a mother plant, a mature cannabis plant, an immature cannabis plant, or a seedling but it does not include a cannabis product or “hemp” as defined in 7 MRS §2231.

Cannabis product: “Cannabis product” means a product composed of cannabis or cannabis concentrate and other ingredients that is intended for use or consumption. “Cannabis product” includes, but is not limited to, an edible cannabis product, a cannabis ointment, and a cannabis tincture. “Cannabis product” does not include cannabis concentrate.

Cannabis store: “Cannabis store” means a facility licensed under the rules governing the adult use cannabis program to purchase cannabis, immature cannabis plants and seedlings from a cultivation facility, to purchase cannabis and cannabis products from a products manufacturing facility, to collect and transport samples of cannabis, cannabis concentrate, and cannabis products in that cannabis store’s possession for mandatory testing, and to sell cannabis, cannabis products, immature cannabis plants, and seedlings to consumers.

Cannabis Testing Facility or Testing Facility: “Cannabis testing facility” or “testing facility” means an entity licensed according to 28-B MRS §503, including those also registered as cannabis testing facilities in accordance with 22 MRS §2423-A, to test cannabis, cannabis products, and other substances for research and development and to analyze contaminants in and the potency and cannabinoid profile of samples in an approved location. A cannabis testing facility is authorized to collect samples of cannabis, cannabis concentrate, and cannabis products without a separate sample collector license in accordance with Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5.

Cannabis trim: “Cannabis trim” means any part of a cannabis plant, whether processed or unprocessed, that is not cannabis flower or a cannabis seed, except that “cannabis trim” does not include the stalks or roots of the cannabis plant.

Cannabis waste: “Cannabis waste” means cannabis, cannabis plants, or cannabis products that are unfit for retail sale for reasons including, without limitation, failed mandatory testing, expired products, or crop failure.

Caregiver: “Caregiver” has the same meaning as in 22 MRS §2421-A(11).

Certificate of analysis: “Certificate of analysis” means the report prepared for requests for testing by a party , for the Department about the analytical testing performed, and for results obtained by the cannabis testing facility.

Certification: “Certification” means the process by which an agency or organization evaluates and recognizes a cannabis testing facility as meeting certain predetermined qualifications or standards, thereby certifying the cannabis testing facility. The Department of Health and Human Services (DHHS) and Center for Disease Control and Prevention (CDC) are responsible for certification of all cannabis testing facilities.

Chain of custody form: “Chain of custody form” means a record, either paper-based or electronic, that documents the possession of the samples at the time of receipt by the cannabis testing facility, in accordance with chain of custody protocol prescribed by the cannabis testing facility. This record, at a minimum, must include: the sample location; the number and types of containers; the mode of collection; the name of the authorized individual who collected the sample; and the date and time of collection, preservation, and requested analyses.

Chain of custody protocols: “Chain of custody protocols” means the procedures developed and employed by the cannabis testing facility to record the possession of samples from the time of sampling through the retention time specified by the client or program. These procedures are performed at the special request of the client and include the use of a chain of custody form that documents the collection, transport, and receipt of compliance samples by the cannabis testing facility. In addition, these protocols document all handling of the samples within the cannabis testing facility and, if applicable, by the sample collector or self-sampler.

CBD: “CBD” means cannabidiol.

Child-resistant: “Child-resistant” means, with respect to packaging or a container:

(1) Specially designed or constructed to be significantly difficult for a typical child under five years of age to open and not to be significantly difficult for a typical adult to open and reseal; and

(2) With respect to any product intended for more than a single use or that contains multiple servings, resealable.

Co-location: “Co-location” means the siting of multiple adult use licensees or an adult use licensee with a registered caregiver or registered dispensary within a licensed premises.

Conditional license: “Conditional license” is a license issued by the Department that authorizes the licensee to seek local authorization to operate a cultivation facility, testing facility, products manufacturing facility, or cannabis store. The conditional license does not authorize possession, transfer, cultivation, testing, manufacture or sale of cannabis or cannabis products.

Consumer sample: “Consumer sample” means a sample of adult use cannabis flower, an edible cannabis product or a cannabis vape cartridge that is provided by a cannabis store to a consumer who is at least 21 years of age for no remuneration at the request of, or with affirmative consent from, the adult use consumer. Each of the following is one consumer sample:

(1) 0.5 grams of cannabis flower, whether as unprocessed flower or as an uninfused, raw pre-rolled cannabis cigarette that contains only cannabis flower and trim;

(2) One serving of an edible cannabis product that does not contain more than 10 milligrams of THC;

(3) One cannabis vape cartridge that contains 0.5 grams or less of cannabis concentrate.

Contaminant: “Contaminant” means an unacceptable level of an unwanted or objectionable substance, toxin, pollution, or foreign material that causes impurity in a product. Contaminants include, but are not limited to, pesticides, microbiology, filth, heavy metals, and residual chemical solvents.

Container: “Container” means a sealable package in which cannabis or a cannabis product is placed in that meets all applicable packaging, labeling, and health and safety requirements of the rules governing the adult use cannabis program.

Controlled entry area: “Controlled entry area” means an indoor entry area directly inside the licensed premises of a cannabis store, containing the door leading to a public right of way that is used for the purpose of verifying the identification and age of an adult use consumer prior to the consumer’s entry to the sales area of the cannabis store. The controlled entry area shall be conspicuous and make it apparent to consumers that entry to the retail sales area is not permitted until identification and appropriate age is verified.

Criminal justice agency: “Criminal justice agency” has the same meaning as in 16 MRS §803(4).

Cultivation: “Cultivation” or “cultivate” means the planting, propagation, growing, harvesting, drying, curing, grading, trimming, or other processing of cannabis for use or sale. “Cultivation” or “cultivate” does not include manufacturing, testing, or cannabis extraction.

Cultivation facility: “Cultivation facility” means a facility licensed under the rules governing the adult use cannabis program to purchase cannabis plants and seeds from other cultivation facilities; to cultivate, prepare, and package cannabis; to collect and transport samples of cannabis cultivated by that facility for mandatory testing; to sell cannabis to products manufacturing facilities, to cannabis stores, and to other cultivation facilities; to sell cannabis plants and seeds to other cultivation facilities; to sell immature cannabis plants and seedlings to cannabis stores; and as applicable, to conduct sales to consumers by delivery. A cultivation facility includes a nursery cultivation facility. Licensees that cultivate cannabis in a nursery cultivation facility may sell an unlimited number of cannabis seeds and a sum total of twelve seedlings and immature plants to a consumer 21 years of age or older.

Cultivation plan: “Cultivation plan” means the information regarding an applicant’s cultivation activities listed in a conditional application for a license to operate a cultivation facility and facility plan required for an active license to operate a cultivation facility; including a nursery cultivation facility.

Curbside pickup: “Curbside pickup” means retrieval of a sales order containing cannabis and/or cannabis products at an outdoor area, included within the licensed premises of a cannabis store or immediately adjacent to the primary public ingress and egress of the cannabis store, designated for curbside pickup by a consumer 21 years of age or older.

Custodian: “Custodian” means the person who has legal custody and power over the person of a child who is under 18 years of age.^[1]

Delivery: “Delivery” means the transportation by a tier 1, tier 2, and nursery cultivation facility, products manufacturing facility, and cannabis store licensee, from the licensed premises of the cannabis store to a private residence or business, as applicable in accordance with the rules governing the adult use cannabis program, of sales orders of cannabis and cannabis products to consumers 21 years of age or older who request such sales orders through a telephonic or internet-based platform.

Department: “Department” means the Department of Administrative and Financial Services.

Department of Agriculture, Conservation and Forestry (DACF): “Department of Agriculture, Conservation and Forestry” or “DACF” means the Maine Department of Agriculture, Conservation and Forestry that includes the Board of Pesticides Control (“BPC”) and the Division of Quality Assurance and Regulations that issues food establishment licenses and oversees the certification of scales used for commercial purposes.

Department of Health and Human Services (DHHS): “Department of Health and Human Services (DHHS)” means the Maine Department of Health and Human Services. DHHS includes the Maine Center for Disease Control and Prevention (CDC), which certifies, through its Maine Cannabis Testing Facility Certification Program, the technology and testing methods used by cannabis testing facilities under the rules governing the adult use cannabis program.

Direct or Indirect Financial Interest: “Direct or Indirect Financial Interest” means any interest in a sole proprietorship or business entity that is applying for or holds a cannabis establishment license, including without limitation:

(1) Equity Owners. Proprietors, partners, shareholders, persons with membership interests, and persons with any other equity ownership interests, such as purchase warrants or options, whether whole or partial. If the equity owner is a business entity, all business entities and natural persons who have an aggregate ownership interest in that equity owner business entity of 5% or more are deemed to be indirect financial interests of the applicant or cannabis establishment licensee.

(2) Other Equity Ownership. Any employee, independent contractor, professional, or other person who has an agreement with the applicant or licensee that provides for the person’s attaining any form of equity ownership. Except that employee equity ownership vested pursuant to an employee stock ownership program is governed by paragraph 4. If the other equity owner is a business entity, all business entities and natural persons who have an aggregate ownership interest in that other equity owner business entity of 5% or more are deemed to be indirect financial interests of the applicant or cannabis establishment licensee.

(3) Non-Owner Interests. All persons who expect to receive financial payment in the form of royalty payments, profit sharing, revenue sharing, or similar payment, such as, but not limited to royalty license partners, parties to a profit sharing agreement, capital investors, and management contractors or consultants. If the non-owner interest is a business entity, all business entities and natural persons who have an aggregate ownership interest in that non-owner interest business entity of 5% or more are deemed to be indirect financial interest holders of the applicant or cannabis establishment licensee.

(4) Employee Stock Ownership Program (ESOP). Any shares designated solely for inclusion in a portion of shares reserved for employees of the licensee for the purpose of vesting an equity ownership interest in an employee or employees of the licensee. A licensee offering an ESOP must designate a percentage of equity ownership interests for the ESOP and must report annually the identity of any person holding an equity interest in the licensee through the ESOP.

Disqualifying drug offense: “Disqualifying drug offense” means a conviction for a violation of a state or federal controlled substance law that is a crime punishable by imprisonment for one year or more; except that “disqualifying drug offense” does not include:

(1) An offense for which the sentence, including any term of probation, incarceration or supervised release, was completed five or more years prior to the submission of an application for a license under the rules governing the adult use cannabis program; or

(2) An offense that consisted of conduct that would be authorized under Title 28-B, or that, if the person convicted of the offense had been acting under the authority of a license pursuant to Title 28-B, would have been authorized under Title 28-B.

Edible cannabis product: “Edible cannabis product” means a cannabis product intended to be consumed orally, including, but not limited to, any type of food, drink, or pill containing cannabis or cannabis concentrate.

Exit packaging: “Exit packaging” means a bag, pouch or other container that cannabis and/or cannabis products are placed in by a licensee after a retail sale to a consumer or sales order to a consumer via delivery or curbside pickup and before the purchased items leave the licensed premise.

Facility director: “Facility director” means the individual who is legally authorized to direct the activities of a cannabis testing facility and who commits the appropriate resources to comply with the rules governing the adult use cannabis program.

Facility plan: “Facility plan” means the comprehensive plan submitted by an applicant for an active cannabis establishment, and amendments thereto submitted after licensure, that includes all information regarding the physical location where the cannabis establishment is located, the operation of the cannabis establishment, the security measures utilized by the cannabis establishment, and as applicable, the cultivation activities of the cannabis establishment. A facility plan includes, as applicable, the operating, cultivation, and security plans of a licensee.

Final form: “Final form” means for the purpose of mandatory testing, cannabis, or a cannabis product that is in the form that will be sold to an adult use cannabis consumer; except, that the cannabis or cannabis product need not be prepackaged into individual retail units to be considered in its final form.

Flowering: “Flowering” means, with respect to a cannabis plant, the gametophytic or reproductive state of a female cannabis plant during which the plant is in a light cycle intended to produce flowers, trichomes, and cannabinoids characteristic of cannabis.

Full active license: “Full active license” means a license issued by the Department to a cannabis testing facility that has received full certification from the CDC and ISO/IEC 17025:2017 accreditation for all required technologies and analytes, that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, ch. 1, subchapters 2 and 6 and the rules governing the adult use cannabis program.

Full certification: “Full certification” means certification granted by the CDC pursuant to Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, to a cannabis testing facility that has received ISO/IEC 17025:2017 accreditation for all required technologies and analytes and meets all other requirements of the rules governing the adult use cannabis program. Full certification is a prerequisite for the issuance of a full active license by the Department pursuant to the rules governing the adult use cannabis program.

Group of cannabis plants: “Group of cannabis plants” means cannabis plants at the same stage of growth, that are intended to be harvested at the same time, and that are the same varietal or cultivar of the plant genus Cannabis that:

(1) Are planted in the same specific area at the same time;

(2) Are transplanted to the same specific area at the same time; or

(3) Include cannabis plants that were planted in a specific area and cannabis plants that were transplanted to the same specific area.

Guardian: “Guardian” means a person who has qualified as a guardian of a minor or incapacitated person pursuant to appointment by a parent or spouse or the court. “Guardian” includes a limited, an emergency and a temporary substitute guardian, but not a guardian ad litem.^[2]

Handbill: "Handbill" is a flyer, leaflet, or sheet that advertises cannabis, cannabis products, or a cannabis establishment.

Harvest batch: “Harvest batch” means a specific quantity of cannabis harvested from cannabis plants of the same strain, grown under the same conditions, and harvested during a specified period of time from a specified cultivation area within a cultivation facility.

Homogeneity: “Homogeneity” means the amount of cannabis, cannabis concentrate, and/or cannabinoids within the product being consistent and reasonably equally dispersed throughout the cannabis product, cannabis concentrate, a representative sample, or each portion thereof.

Identity statement: “Identity statement” means the name of a business entity as it is commonly known and used in any advertising or marketing by the business entity.

Immature cannabis plant: “Immature cannabis plant” means a cannabis plant that is not a mature cannabis plant or a seedling.

Indoor: “Indoor” means, for the purpose of cultivating cannabis, cultivation of mature cannabis plants using artificial light or light deprivation in an enclosed structure.

Infused cannabis product: “Infused cannabis product” means a product or compound that includes one or more cannabis concentrates along with other materials or ingredients, including without limitation to, edible cannabis products and topical cannabis products.

Inhaled cannabis product: “Inhaled cannabis product” means cannabis, cannabis concentrate, or cannabis products that are intended to be consumed by inhalation, including, without limitation to: cannabis flower or trim, pre-rolled cannabis cigarettes, vaporizer cartridges, and vaporizer pens.

Inherently hazardous substance: “Inherently hazardous substance” means a liquid chemical, compressed gas, or commercial product that has a flash point at, or lower than, 38 degrees Celsius or 100 degrees Fahrenheit, including, but not limited to, butane, propane, and diethyl ether. “Inherently hazardous substance” does not include any form of alcohol or ethanol.

Intermediate packaging: “Intermediate packaging” means packaging materials that are not part of the marketing layer or container, but are included inside an outer container layer, such as a marketing layer.

Intoxication: “Intoxication” means a substantial impairment of an individual's mental or physical faculties as a result of drug or alcohol use.

ISO/IEC 17025:2017: “ISO/IEC 17025:2017” means the general requirements for the competence of testing and calibration laboratories issued in 2017 joint technical committee of the International Organization for Standardization and the International Electrotechnical Commission, and any subsequent revision or version thereof.

Kief: “Kief” means the dried or drying resinous trichomes of cannabis plant that have separated from cannabis flower or have been separated from cannabis flower by processes other than extraction. Kief is cannabis flower.

Law enforcement officer: “Law enforcement officer” has the same meaning as in 17-A MRS §2(17).

Licensed premises: “Licensed premises” means the premises specified in a license to operate a cannabis establishment within which the licensee is authorized under the rules governing the adult use cannabis program to cultivate, manufacture, distribute, sample, test, or sell cannabis or cannabis products.

Licensee: “Licensee” means a natural person or business entity licensed pursuant to 28-B MRS to operate a cannabis establishment.

Limited access area: “Limited access area” means a building, room or other area within the licensed premises of a cannabis establishment, or as applicable for cannabis stores conducting sales at a specified event, the permitted premises for a specified event, where a licensee is authorized to cultivate, store, weigh, manufacture, sample, package, or otherwise prepare for testing, transfer, or retail sale, cannabis and cannabis products. A limited access area can only be accessed by authorized persons displaying individual identification cards or authorized contractors of the licensee aged 21 and older displaying a visitor identification badge.

Liquid: “Liquid” means a substance that flows freely but is of constant volume; having a consistency like that of water or oil.

Local authorization: “Local authorization” means authorization from a municipality in accordance with 28-B MRS §402 or authorization from the Maine Land Use Planning Commission and either a town, plantation, or county commission in accordance with 28-B MRS §403. Local authorization is not required for sample collector licenses.

Logo: “Logo” means a graphic mark, emblem, or symbol used by a licensee to promote consumer association and recognition of the licensee.

Manufacture: “Manufacture” or “manufacturing” means the production, blending, infusing, compounding, or other preparation of cannabis and cannabis products, including but not limited to cannabis extraction or preparation by means of chemical synthesis. “Manufacture” or “manufacturing” does not include cultivation or testing.

Marketing layer: “Marketing layer” means the outermost layer of a retail sale container, which is most predominantly apparent and visible, such as a box or bag that another container containing cannabis, cannabis plants, cannabis concentrate, or cannabis products are within. If the container consists of only a single layer, then the outer surface of the container is the marketing layer.

Matrix or matrices: “Matrix” or “matrices” means the component or substrate that contains the analyte of interest (e.g., cannabis flower, trim, cannabis cigarettes, types of cannabis concentrate, types of cannabis products, etc.).

Mature cannabis plant: “Mature cannabis plant” means a cannabis plant that is flowering.

Method: “Method” means a body of procedures and techniques for performing an activity (e.g., sampling, chemical analysis, or quantification), systematically presented in the order in which they are to be executed.

Minor: “Minor” means a natural person who has not attained 21 years of age.

Mother plant: “Mother plant” means a cannabis plant that is used solely for the taking of seedling cuttings.

Municipality: “Municipality” means a city, town, or plantation in this State that is not located within the unorganized and deorganized areas.

Mycotoxin: “Mycotoxin” means any toxic substance produced by a fungus, especially a mold.

Office of Cannabis Policy: “Office of Cannabis Policy” or “the Office” means the division of the Department of Administrative and Financial Services responsible for administration and enforcement of the Cannabis Legalization Act and the Maine Medical Use of Cannabis Act .

Operating plan: “Operating plan” means information regarding the operating requirements listed in an application for a conditional license and included in the facility plan submitted for an active license to operate a cannabis establishment.

Outdoor: “Outdoor” or an “outdoor cultivation area” means, for the purpose of cultivating cannabis, a cultivation area that is neither enclosed in a building or structure that is permanently fixed to the ground, nor a foundation that is used to create cultivation conditions that are not materially impacted by ambient atmospheric conditions of the area where the licensed premises is located. An outdoor cultivation area is one where mature cannabis plants cannot be cultivated between the months of November and March without being materially impacted by atmospheric conditions.

Parent: “Parent” means a natural or adoptive parent or a parent established under Title 19-A, ch. 61, unless parental rights have been terminated.^[3]

Permitted premises for a specified event: "Permitted premises for a specified event" means the premises at a specified event location described in a specified event permit issued to a cannabis store pursuant to 28-B MRS § 504-A, where a cannabis store is authorized to sell cannabis and cannabis products.

Person: “Person” means a natural person or a business entity.

Plan of correction: “Plan of correction” means a written plan to address violations of 28-B MRS or the rules governing the adult use cannabis program that includes:

Action steps to address any violation of the requirements of the adult use cannabis program identified by the Department in its Notice of Violation;

The date by which each action step will be complete; and

The steps to be taken by the licensee, or interventions implemented by the licensee, to ensure that the violation does not happen again.

Plan of record: “Plan of record” means, as applicable, a licensee’s current facility plans as well as the operating, cultivation, and security information listed in the licensee’s applications for a conditional or active license on file with and approved by the Department.

Plant canopy: “Plant canopy” means the total surface area within the licensed premises of a cultivation facility that is authorized by the Department for use at any time by the cultivation facility licensee to cultivate mature cannabis plants. The surface area of the plant canopy must be calculated in square feet (sq. ft.),measured using the outside boundaries of the area, and must include all of the area within such boundaries. If the surface area of the plant canopy consists of noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered or shelving system is used by the cultivation facility licensee, the surface area of each tier or shelf must be included in calculating the area of the plant canopy. Calculation of the area of the plant canopy may not include the areas within the licensed premises of cultivation facility that are used by the licensee to cultivate immature cannabis plants and seedlings and that are not used by the licensee at any time to cultivate mature cannabis plants.

Plant regulator: “Plant regulator” means any substance or mixture of substances intended through physiological action for accelerating or decelerating the rate of growth or maturation, or for otherwise altering the behavior of plants or the produce thereof. “Plant regulator” does not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, or soil amendments.

Principal: "Principal" means:

(1) A natural person operating as a sole proprietor;

(2) The officers of a corporation organized pursuant to Title 13-C who have authority to manage, direct or oversee the applicant's or licensee's operations, if the applicant or licensee is a corporation;

(3) The directors of a corporation organized pursuant to Title 13-C, if the applicant or licensee is a corporation;

(4) The shareholders of a corporation organized pursuant to Title 13-C, if no officers or directors are appointed and the applicant or licensee is a corporation;

(5) The general or limited partners of a partnership organized under Title 31, chapter 19, if the applicant or licensee is a partnership;

(6) The nonmember managers or managing members of a limited liability company organized under Title 31, chapter 21, if the applicant or licensee is organized as a limited liability company; and

(7) Any other natural person to whom the applicant or licensee has given authority to manage, direct or oversee the applicant's or licensee's operations.

If an officer, director, shareholder, partner, manager or member under paragraph 2, 3, 4, 5 or 6 is a business entity, "principal" means any natural person to whom the business entity has given authority to manage, direct or oversee the applicant's or licensee's operations.

"Principal" does not include those persons whose managerial responsibilities are limited to staff supervision and who are not authorized to act on behalf of the applicant or licensee. For purposes of this subsection, "operations" does not include human resources, information technology, marketing or accounting and finance.

Premises: “Premises” means the designated area within a structure or structures and land specified in the facility plan included in a license application that is owned, leased, or otherwise held under the control of the applicant or licensee where conduct related to the cultivation, manufacture, sampling, testing, or sale of cannabis and cannabis products occurs. The premises must be a contiguous area and may only be occupied by one establishment, unless otherwise permitted by statute or the rules governing the adult use cannabis program; except that nothing in this definition may be construed to prohibit the siting of multiple cannabis establishments in the same building or property so long as each establishment operates in a physically distinct space from any other establishment. “Premises” may also mean “permitted premises for a specified event,” for appropriately permitted cannabis stores conducting sales of cannabis and cannabis products at specified event off of the licensed premises of the cannabis store.

Pre-packaged retail unit: “Pre-packaged retail unit” means cannabis or a cannabis product that has passed all mandatory testing and is packaged into an individual container for retail sale to a consumer 21 years of age or older.

Private residence: “Private residence” means the part of a building or structure with a fixed location used as a dwelling; including without limitation: a private home, townhouse, condominium, apartment, mobile home, vacation home, cabin, or cottage.

Production batch: “Production batch” means a specific quantity of cannabis concentrate or a cannabis product that is produced during a specified period of time using the same extraction and/or manufacturing method, formulation and/or recipe, and standard operating procedure. Production batch also includes the combination of two or more harvest batches of cannabis trim or kief.

Products manufacturing facility: “Products manufacturing facility” means a facility licensed under the rules governing the adult use cannabis program to purchase cannabis from a cultivation facility or another products manufacturing facility; to manufacture, label, and package cannabis and cannabis products; to collect and transport samples of cannabis, cannabis concentrate, and cannabis products manufactured by that facility for mandatory testing; to sell cannabis and cannabis products to cannabis stores and to other products manufacturing facilities; and as applicable, to conduct sales to consumers by delivery.

Propagation: “Propagation” means the process of reproducing cannabis plants through the use of cannabis seeds, cuttings, or grafting.

Provisional active license: “Provisional active license” means a license issued by the Department to a cannabis testing facility that has received provisional certification from the CDC and has applied for, but not yet received, ISO/IEC 17025:2017 accreditation for all required technologies and analytes, that authorizes testing of cannabis or cannabis products in accordance with 28-B MRS, ch. 1, subchapter 2 and 6, and the rules governing the adult use cannabis program.

Provisional certification: “Provisional certification” means certification granted by the CDC pursuant to Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5, to a cannabis testing facility that has not yet received ISO/IEC 17025 accreditation for all required technologies and analytes, but for which an application is pending, and that meets all other requirements of the rules governing the adult use cannabis program. Provisional certification is a prerequisite for the issuance of a provisional active license by the Department pursuant to the rules governing the adult use cannabis program.

Qualifying patient: “Qualifying patient” means a person who possesses a valid certification for the medical use of cannabis pursuant to 22 MRS §2423-B.

Quality assurance (QA): “Quality assurance (QA)” means a set of operating principles that enable testing facilities to produce defensible data of known accuracy and precision. Quality assurance includes without limitation employee training, equipment preventative maintenance procedures, calibration procedures, and quality control testing.

Quality control (QC): “Quality control (QC)” means the overall system of technical activities that measures the attributes and performance of a process, item, or service against defined standards to verify that they meet the stated requirements established by the client; the operational techniques and activities that are used to fulfill requirements for quality; the system of activities and checks used to ensure that measurement systems are maintained within prescribed limits, to protect against “out of control” conditions ensure that the quality of results is acceptable.

Quality assurance manual: “Quality assurance manual” means a document containing policies and records used to ensure the quality and utility of cannabis and cannabis products to its users in accordance with the quality system.

Quality system: “Quality system” means a structured and documented management system that describes the policies, objectives, principles, organizational structure, management authority responsibilities, fiduciary duties liability, and implementation plan of an organization for ensuring quality in its work processes, products (items), and services. The quality system provides the framework to plan , implement, and assess work performed by the organization and to carryout required QA and QC activities. The quality system of a cannabis testing facility must account for anomalies that arise from the collection and transport of samples for mandatory testing conducted by a self-sampler or a sample collector licensee--including provisions regarding the use of blanks.

Radio: "Radio" means a system for transmitting sound without visual images, and includes broadcast, cable, on-demand, satellite, or internet programming. Radio includes any audio programming downloaded or streamed via the internet.

Registered caregiver: “Registered caregiver” means a caregiver who is registered by the department pursuant to 22 MRS §2425-A.

Registered dispensary: “Registered dispensary” or “dispensary” means an entity registered under 22 MRS §2425-A that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, sells, supplies, or dispenses cannabis or related supplies and educational materials to qualifying patients and the caregivers of those patients.

Remediation: “Remediation” means a process by which a licensee mitigates or otherwise removes a contaminant from a batch of cannabis or cannabis products that has failed mandatory testing due to the presence of the contaminant. Remediation also means the process by which a products manufacturing facility licensee reformulates or repackages a batch of edible cannabis products that has failed mandatory testing due to THC potency in excess of the per serving or per package potency limits. Remediation may include without limitation the application of heat, radiation, or ozone; or solvent extraction; or further drying and curing. Dilution of contaminants through the addition of uncontaminated material to batches of cannabis or cannabis products that are contaminated is not an approved remediation method.

Requester: “Requester” means a person who submits a request to a licensed cannabis testing facility for State-mandated testing of cannabis or cannabis products.

Retail sale hours: “Retail sale hours” means the hours during which a cannabis store licensee is open to the public to conduct sales to consumers.

Sale: “Sale” or “sell” means a transfer of cannabis or cannabis products for consideration.

Sales delivery manifest: “Sales delivery manifest” means a record required by the Department for a licensed cannabis store to document the possession, transportation, and delivery of sales orders of cannabis and/or cannabis products by tier 1, tier 2, and nursery cultivation facilities, products manufacturing facilities, and cannabis stores to adult use consumers age 21 or older at a private residence or business, as applicable in accordance with the rules governing the adult use cannabis program.

Sales Order: “Sales Order” means cannabis or cannabis product, or a combination of cannabis and/or cannabis products, requested by an adult use consumer, through a telephonic or internet-based platform, to be conveyed to the consumer via curbside pickup at a cannabis store or via delivery to a private residence or business, as applicable in accordance with the rules governing the adult use cannabis program, by an employee of the cannabis store.

Sample: “Sample” means, as applicable, an amount of:

(1) Cannabis, cannabis concentrate, or cannabis product collected from an adult use cannabis establishment for mandatory testing:

(a) By an employee of a testing facility in accordance with 28-B MRS §604 and the rules governing the adult use cannabis program;

(b) By a sample collector, in accordance with 28-B MRS §604 and the rules governing the adult use cannabis program; or

(c) By a self-sampler in accordance with 28-B MRS §604-A and the rules governing the adult use cannabis program;

(2) Cannabis, cannabis concentrate, or cannabis product provided to a testing facility by a cannabis establishment or other person for mandatory testing, or testing for research and development purposes, in accordance with 28-B MRS, ch. 1;

(3) Cannabis or cannabis product collected from a licensee by the Department for the purposes of testing the cannabis or cannabis product for quality control purposes pursuant to 28-B MRS §512(2);

(4) Cannabis provided by a cultivation facility to another licensee for business or marketing purposes pursuant to 28-B MRS §501(8) (trade samples); or

(5) Cannabis or cannabis product provided to another licensee by a products manufacturing facility for business or marketing purposes pursuant to 28-B MRS §502(6) (trade samples).

Sample collection SOP: “Sample collection SOP” means a standard operating procedure for the collection of samples of cannabis, cannabis concentrate, and cannabis products for mandatory testing published by the Department that must be used by all licensees collecting, transporting, and transferring samples for mandatory testing. The current sample collection SOP is Appendix A of 18-691 CMR, ch. 40.

Sample collector: “Sample collector” means a person licensed pursuant to the rules governing the adult use cannabis program and 28-B MRS, ch. 1, to collect samples of cannabis and cannabis products for testing and to transport and deliver those samples to a testing facility. A sample collector must hold a valid individual identification card (“IIC”).

Seedling: “Seedling” means a cannabis plant that is:

(1) Not flowering;

(2) Less than 24 inches (in) in height; and

(3) Less than 24 inches (in) in width.

“Seedling” includes clones and tissue cultures.

Self-sampler or Self-sampling licensee: “Self-sampler” or “self-sampling licensee” means a cultivation facility, products manufacturing facility, or cannabis store licensee that collects samples of cannabis, cannabis concentrate, and cannabis products, for mandatory testing; or an employee of a cultivation facility, products manufacturing facility or cannabis store licensee who collects samples of cannabis, cannabis concentrate and cannabis products for that licensee for mandatory testing. Any individual collecting samples for mandatory testing must hold a valid individual identification card (“IIC”).

Specified event: "Specified event" means an event that occurs outside the

licensed premises of a cannabis store that is not conducted primarily for the benefit or enjoyment of minors and that is not more than ten consecutive days in duration or ten occurrences in duration. For purposes of this definition, "occurrence" means an event that is less than 24-hours in duration and that occurs during the same calendar year as another occurrence.

Specified event permit: "Specified event permit" means a temporary authorization for a cannabis store to conduct sales of cannabis and cannabis products on the permitted premises for a specified event in accordance with 28-B MRS §504-A.

Standard operating procedure (SOP): “Standard operating procedure (SOP)” means a written document that details the method for an operation, analysis, or action, with thoroughly prescribed techniques and steps.

Tamper-evident: “Tamper-evident” means, with respect to a device or process, bearing a seal, a label, or a marking that makes unauthorized access to or tampering with a package, product, or container easily detectable.

Target organism: “Target organism” means an organism that is being tested for in an analytical procedure or test method.

Technical assistance: “Technical assistance” means assistance provided by the Office when a licensee is found to be in violation of the laws or rules governing the adult use cannabis program. Technical assistance:

(1) May be offered in person and will be documented in writing;

(2) Includes an explanation of any applicable laws or rules;

(3) Includes an explanation of how the program participant is in violation; and

May include a timeline for corrective action to be taken and advice or guidance regarding how the program participant can comply with program requirements.

Television: "Television" means a system for transmitting visual images and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or internet programming. Television includes any video programming downloaded or streamed via the internet.

Testing or Test: “Testing” or “test” means the research and analysis of cannabis, cannabis products, or other substances for contaminants, safety, or potency. “Testing” or “test” includes the collection of samples of cannabis and cannabis products for testing purposes but does not include cultivation or manufacturing. Nothing in this definition shall be construed to permit any licensee except a cannabis testing facility to perform analyses of cannabis, cannabis concentrate, or cannabis products for mandatory testing without a separate cannabis testing facility license issued by the Department.

Testing facility: “Testing facility” means a facility licensed under the rules governing the adult use cannabis program to develop, research, and test cannabis, cannabis products, and other substances.

Testing facility director: “Testing facility director” means the cannabis testing facility director who is legally authorized to direct the activities of a cannabis testing facility and who commits the appropriate resources to comply with the rules governing the adult use cannabis program.

THC: “THC” means tetrahydrocannabinol.

Tincture: “Tincture”means a liquid edible cannabis product with a concentration of greater than 1 mg of THC per ounce of liquid.

Topical cannabis product: “Topical cannabis product” means non-edible cannabis or cannabis products that are intended to be applied topically and absorbed transdermal; including without limitation to, salves, creams, lotions, transdermal patches, or balms.

Total CBD: “ Total CBD” means the sum of CBD and CBDA. Total CBD is calculated by a cannabis testing facility using the following equation: Total CBD = CBD + (CBDA*0.877).

Total THC: “ Total THC” means the sum of THC and THCA. Total THC is calculated by a cannabis testing facility using the following equation: Total THC = delta-9 THC + (THCA*0.877).

Transport manifest: “Transport manifest”means a record, either paper or electronic, required by the Department for a licensed facility to document the possession of the cannabis or cannabis product on the premises, tracking all inventory, acquisition, and sales as well as the transfer of any cannabis or cannabis product to another facility, including for the purposes of testing or provision of trade samples to another licensee.

Universal symbol: “Universal symbol” means an image developed and made available to licensees by the Department indicates that a container, package, or product contains cannabis, cannabis concentrates, or is itself a cannabis product.^[4]

Unorganized and deorganized areas: “Unorganized and deorganized areas” has the same meaning as in 12 MRS § 682(1).

Unpackaged cannabis or cannabis products: “Unpackaged cannabis or cannabis products” means cannabis or a cannabis product that has not been packaged into an individual child-resistant, tamper-evident container for retail sale to a consumer 21 years of age or older.

Unusable: “Unusable” means that the cannabis or cannabis product can no longer be smoked, eaten, , topically applied, or otherwise ingested. Nor can the cannabis or cannabis product be further manipulated in a manner to extract more than a trace amount of cannabinoid.

Visibly intoxicated: “Visibly intoxicated” means a state of intoxication accompanied by a perceptible act, a series of acts, or the appearance of an individual that clearly demonstrates the state of intoxication (I.e. Incoherence, lack of physical coordination and balance, etc.).

Water activity: “Water activity” means a measure of the quantity of water in a product that is available, and therefore capable of, supporting bacteria, yeasts, and fungi. Water activity is reported in the unit A_w.

Wholesale container: “Wholesale container” means a sealed package in which cannabis, cannabis concentrate, and cannabis products are conveyed during an authorized transfer.

§2 - Fee Schedule.

(1) Payment of Fees.

(A) Application Fees. An applicant shall pay the application fee required by the Department at the time that the applicant submits an application for licensure to the Department for processing.

(B) License Fees. Before issuing an active license, the Department shall invoice the conditional licensee for the applicable fee as determined by the Department pursuant to Title 28-B and the rules governing the adult use cannabis program. The Department shall not accept any license fees except pursuant to such invoice.

( 2) Return of Fees Prohibited. Pursuant to 28-B MRS §207(5), the Department may not return to an applicant or licensee or reimburse an applicant or licensee for any portion of an application or license fee paid by the applicant or licensee, regardless of whether the applicant withdraws its application prior to a final decision of the Department on the application, the licensee voluntarily terminates its license pursuant to 28-B MRS and the rules governing the adult use cannabis program or the Department suspends or revokes the licensee’s license in accordance with the provisions of 28-B MRS and the rules governing the adult use cannabis program.

(3) Individual Identification Card Fees.

Card Type Fee

Original Issuance $50.00 plus cost of fingerprinting and criminal history record check, as applicable for principals

Biennial Renewal^[5] $50.00

Reissuance $10.00

(lost, stolen, damaged, info change)

(4 ) Fingerprinting and Criminal History Record Check Fee. The fee for the fingerprinting and criminal history record checks for principals shall be set by the State Police and/or State Bureau of Identification, in accordance with its usual operations.

(5 ) Tracking System Fees. Each licensee is responsible for all costs associated with its use of the tracking system and any associated vendor fees.

(6) Cultivation Facility Application and License Fees.

License Type Application Fee Annual License Fee

Outdoor Only Indoor/Both

Tier 1 Cultivation Facility

Plant-Count-Based $100.00 $9.00/mature plant $17.00/mature plant

Plant-Canopy-Based $100.00 $500.00

Tier 2 Cultivation Facility $500.00 $1,500.00 $3,000.00

Tier 3 Cultivation Facility $500.00 $5,000.00 $10,000.00

Tier 4 Cultivation Facility $500.00 $15,000.00 $30,000.00

For each increase in canopy size +$5,000.00 +$10,000.00

Nursery Cultivation Facility $60.00 $350.00 $350.00

(7) Other Cannabis Establishment Application and License Fees.

License Type Application Fee License Fee

Products Manufacturing Facility $250.00 $2,500.00

Cannabis Store $250.00 $2,500.00

Testing Facility $250.00 $1,000.00

Sample Collector $100.00 $250.00

(8) Other Cannabis Establishment Fees.

Fee Type Application Fee

Specified Event Permit (per event) $200.00

Transfer of Ownership/Change of Principals $250.00

Relocation $250.00

(9) Annual Renewal and Late Renewal Application and License Fees. All renewal application and license fees shall be due annually in the amounts listed in this rule and submitted in accordance the rules governing the adult use cannabis program, except that the Department may require payment of $2,500.00 in addition to the relevant application fee for complete renewal applications received less than 30 days prior to the date of expiration of the license. The Department may not accept an application for renewal of a license after the date of expiration of that license.

Fiscal impact note, included pursuant to 5 MRS § 8063: The Department estimates that the changes implemented by this rulemaking will have a de minimus fiscal impact on municipalities and counties.

ACCESSIBILITY CHECK: July 7, 2025

22 MRS § 4002(5). ↑

18-C MRS §1-201(22). ↑

22 MRS § 4002(7). ↑

Office of Cannabis Policy, Universal Symbol, OCP Website: Resources, https://www.maine.gov/dafs/ocp/resources/universal-symbol (accessed June 20, 2024). ↑

Effective July 1, 2025, individual identification cards, and renewals thereof, shall be valid for two years from the date of issuance. ↑

Chapter 20 Rules for the Licensure of Adult Use Cannabis Establishments

Code Me. R. 18-691 Ch. 20 – Licenses and Licensing {#sec-18-691-ch.-20 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 20}

§ 1 - Individual Identification Cards

(1) Individual Identification Cards Required

(2) Issuance of Individual Identification Cards

(3) Format and Use of Individual Identification Cards

(4) Appeals

§ 2 - License Types

§ 3 - Cannabis Establishment Licenses & Authorized Activity

(1) Cultivation Facility License

(2) Cannabis Testing Facility License

(3) Products Manufacturing Facility License

(4) Cannabis Store License

(5) Sample Collector License

§ 4 - General Licensing Criteria & Qualifications

(1) General Licensing Criteria

(2) Criminal History Record Check

(3) Required Forms and Information for All Licenses

§ 5 - Application for Conditional License

(1) Conditional License

(2) Additional Requirements for Issuance of a Conditional Cultivation Facility License

(3) Additional Requirements for Issuance of a Conditional Products Manufacturing Facility License

(4) Additional Requirements for Issuance of a Conditional Testing Facility License

(5) Additional Requirements for Issuance of a Conditional Cannabis Store License

(6) Administrative Abandonment of Conditional License Applications that are Inactive for at Least 365 Days

§ 6 - Application for Active Sample Collector License

(1) Forms

(2) Vehicle Requirements

(3) Payment of Fees

§ 7 - Department Review of Applications for Conditional Licenses & Active Sample Collector License

(1) Ownership Interest

(2) Application for a Conditional License and Active License for Sample Collector Processing

(3) Application for a Conditional License and Active License for Sample Collector Review

(4) Withdrawal

(5) Denial

§ 8 - Application for Active License of a Cultivation Facility, Testing Facility, Products Manufacturing Facility or Cannabis Store, Including Provisional Testing License

(1) Forms

(2) Local Authorization

(3) Supplemental Information for Issuance of Active License

(4) Facility Plan

(5) Co-Location of Adult Use Cannabis Establishments

(6) Tax Registration

(7) Application Processing for an Active License

(8) Application for an Active License Review

(9) Payment of Fees

(10) Denial

§ 9 - Specified Event Permits for Retail Sales Outside the Licensed Premises of a Licensed Cannabis Store

(1) Specified Event Permit and Individual Identification Cards Required

(2) Application for a Specified Event Permit

(3) Permit Application Review, Issuance or Denial of a Specified Event Permit and Changes to Application Materials

(4) Appeals

§10 - License Renewal

(1) Annual Renewal

(2) Continued Authority

(3) Application Processing for an Active License Renewal

(4) Application for an Active License Renewal Review

(5) Payment of Fees

(6) Denial

§11 - Application for Relocation of Licensed Premises

(1) Conditional Relocation of Licensed Premises Approval

(2) Updated License

(3) Relocation with Any Change in Ownership Interests

(4) Denial

§12 - Transfer of Ownership and/or Change of Principal(s)

(1) Department Approval Required

(2) Notice Required

(3) No Prior Notice Required

(4) Temporary Appointee

(5) Denial

Chapter 20 – Licenses and Licensing

The terms used in this rule are defined in and governed by the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR, ch. 10. The administration of this rule and the other rules governing the Adult Use Cannabis Program are also governed by 18-691 CMR, ch. 10. All applicants, licensees and individual identification cardholders that are authorized to conduct activities pursuant to licenses, permits or individual identification cards issued pursuant to this rule must also at all times comply with the requirements of Title 28-B of the Maine Revised Statutes and the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, and the Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40; as well as the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5 and any other applicable local, state or federal laws or regulations. Collectively, 18-691 CMR, chapters 5, 10, 20, 30, and 40 are the “rules governing the adult use cannabis program”.

§ 1 - Individual Identification Cards.

(1) Individual Identification Cards Required.

(A) A valid individual identification card issued by the Department is required to be displayed by any individual working in or for a licensed cannabis establishment who:

(1) possesses, cultivates, manufactures, packages, tests, dispenses, transfers, serves, handles, transports or delivers cannabis or cannabis products;

(2) has the authority to access or input data into the inventory tracking system or a cannabis establishment point of sale system; or

(3) is a principal of the licensee or other person having a controlling authority or leading position in the licensee’s operations.

(B) Licensees are responsible for verifying that each required person has a valid individual identification card and must report within 24 hours any attempt by an individual to use an individual identification card that is falsified, altered or issued to a person other than the bearer.

(C) A contractor or visitor of the licensee, including, but not limited to, an electrician, a plumber, an engineer, an alarm technician, an attorney, or a local, state or federal elected official whose scope of work will not involve the handling of cannabis or cannabis products does not require an individual identification card, subject to the requirements of §1, sub-§1 of 18-691 CMR, ch. 30.

(D) The individual identification card requirement does not apply to employees or agents of the Department, law enforcement officers or employees or agents of other local or state agencies with regulatory authority, including but not limited to fire marshals, electrical inspectors, pesticide control staff and environmental inspectors, for the purpose of exercising such regulatory authority.

(2) Issuance of Individual Identification Cards.

(A) The Department shall issue individual identification cards to natural persons licensed under Title 28-B.

(B) Upon request, the Department shall issue an individual identification card to a principal who has participated in the license application process and has had fingerprinting and criminal history record checks approved by the Department within the past 24 months, subject to the reporting of any arrests subsequent to the criminal history record check.

(C) Upon request, the Department shall issue an individual identification card for the purpose of employment to an applicant who:

(1) Submits proof of being of age 21 or older in a form satisfactory to the Department;

(2) Submits any other information required by the Department on its individual identification card application form, including history of enforcement actions in the adult use or medical use of cannabis programs; and

(3) Satisfies all requirements for the issuance of an individual identification card.

(D) The Department shall not permit an individual to act as a principal if they have been convicted of a disqualifying drug offense, but the Department may issue the individual an individual identification card.

(E) The Department may for good cause deny an application for individual identification card by any person who:

(1) Has faced penalties under the adult use cannabis program;

(2) Has been subject to revocation or denial of a registry identification card or registration certificate issued pursuant to 22 MRS, chapter 558-C;

(3) Has outstanding court-ordered payments, past due taxes or fees or other tax delinquency;

(4) Has had an individual identification card revoked within the previous 2 years; or

(5) Has had been subject to 2 or more individual identification card revocations.

(F) Each licensee shall provide to the Department upon request a list of all individual identification card numbers used by any principals, contractors, employees or other support staff of the licensee.

(G) The Department may maintain a list of all individual identification cards that have been issued to individuals and any licensees that have reported an affiliation with the cardholder.

(3) Format and Use of Individual Identification Cards.

(A) The Department shall charge fees for the issuance, reissuance and renewal of an individual identification card in accordance with the fee schedule located in 18-691 CMR, ch. 10, §2.

(B) The individual identification card shall include a current photograph, full name, date of birth, date of issuance, expiration date and a unique identification number.

(C) Individual identification cards are valid for two years from the date of issue.^[1] The individual identification card shall be renewed on forms provided by the Department in accordance with the fee schedule located in 18-691 CMR, ch. 10, § 2.

(D) All individual identification cards shall remain the property of the Department and shall be returned to the Department upon demand of the Department.

(E) No person shall alter, obscure, damage or deface an individual identification card in any manner. To be valid, all individual identification cards must be in good condition, with all original markings and information clearly legible.

(F) The holder of an identification card must notify the Department immediately if the individual identification card is lost, stolen or damaged. A fee, in accordance with the fee schedule located in 18-691 CMR, ch. 10, § 2, will be charged for the issuance of a reissued individual identification card, which will not extend the expiration date of the individual identification card it replaces.

(4) Appeals. An applicant may appeal an application denial pursuant to the Maine Administrative Procedure Act, 5 MRS, chapter 375.

§ 2 - License Types.

The general types of licenses for adult use cannabis establishments are cultivation facility, testing facility, products manufacturing facility, cannabis store and sample collector. A license to conduct authorized activities pursuant to 28-B MRS, ch. 1 and the rules governing the adult use cannabis program does not exempt a licensee from any required inspection, licensure or certification by any federal, state or local jurisdiction in order to conduct such authorized activities; including licenses and certifications required for, without limitation: the production or sale of food and/or bottled beverages; electrical permitting; waste management and environmental protection; workplace safety and employment; and/or pesticide application.

§ 3 - Cannabis Establishment Licenses & Authorized Activity.

(1) Cultivation Facility License.

(A) The Department may issue the following types of cultivation facility licenses:

(1) Tier 1 cultivation facility license. The two subcategories of tier 1 cultivation facility license are plant-count-based tier 1 cultivation facility license and plant-canopy-based tier 1 cultivation facility license:

(a) Plant-count-based tier 1 cultivation facility license. Allows cultivation of a specified number (not more than 30) of mature cannabis plants and an unlimited number of immature cannabis plants and seedlings;

(b) Plant-canopy-based tier 1 cultivation facility license. Allows cultivation of not more than 500 square feet of plant canopy of mature plants;

(2) Tier 2 cultivation facility license. Allows cultivation by a licensee of not more than 2,000 square feet of plant canopy of mature cannabis plants;

(3) Tier 3 cultivation facility license. Allows cultivation by a licensee of not more than 7,000 square feet of plant canopy of mature cannabis plants;

(4) Tier 4 cultivation facility license. Allows cultivation by a licensee of not more than 20,000 square feet of plant canopy of mature cannabis plants, except as approved by the Department pursuant to 28-B MRS §304; or

(5) Nursery cultivation facility license. Allows cultivation by a licensee of not more than 1,000 square feet of cannabis plant canopy, subject to the requirements and restrictions of 28-B MRS §501(3).

(B) A tier 1, tier 2, tier 3 or tier 4 cultivation facility license permits the following activities, subject to all requirements of Maine Title 28-B and the rules governing the adult use cannabis program:

(1) Planting and raising cannabis plants, subject to the limits associated with each tier of license described above;

(2) Selling or otherwise transferring cannabis plants to another cultivation facility;

(3) Harvesting and trimming cannabis plants;

(4) Combining harvest batches of cannabis trim or kief into production batches;

(5) Storing harvested cannabis flower, including kief, and cannabis trim;

(6) Packaging cannabis flower, including kief, and cannabis trim into individual retail units for wholesale to a cannabis store;

(7) Collecting samples of cannabis for mandatory testing and delivering those samples to a testing facility;

(8) Selling and transporting cannabis flower, including kief, and cannabis trim to testing facilities, products manufacturing facilities or cannabis stores;

(9) Accepting returns of adult use cannabis or cannabis products from consumers, or returns of cannabis or cannabis products that were returned from a consumer to a cannabis store and subsequently returned to a cultivation facility for destruction, and promptly destroying such returned items;

(10) Accepting returns of cannabis flower, including kief, and cannabis trim from a products manufacturing facility that received the cannabis flower or trim from the cultivation facility, and then reselling that returned cannabis flower or trim subject to the inventory tracking requirements of the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30 and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40; and

(11) Accepting returns of pre-packaged retail units of cannabis flower, including kief, and cannabis trim from another cultivation facility, products manufacturing facility or cannabis store that received the cannabis flower or trim from the cultivation facility, and then reselling that returned cannabis flower or trim subject to the inventory tracking requirements of the Compliance Rules for Adult Use Cannabis Establishments , and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40.

(C) In addition to the activities authorized above, a tier 1 or tier 2 cultivation facility is permitted to conduct sales of cannabis and cannabis products by delivery to consumers 21 years of age or older in accordance with the requirements of this rule and the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30.

(1) A tier 1 or tier 2 cultivation facility may accept wholesale transfers of cannabis and cannabis products packaged and labeled for retail sale to consumers by delivery; and

(2) A tier 1 or tier 2 cultivation facility may designate a portion of its inventory of cannabis flower or cannabis trim for retail sale to consumers by delivery.

(D) A nursery cultivation facility license permits the following activities, subject to all requirements of 28-B MRS and the rules governing the adult use cannabis program:

(1) Cultivating immature cannabis plants, subject to the limits described above;

(2) Cultivating mature cannabis plants, subject to the plant canopy square footage limits in § 3, sub-§ 1 of this rule, and mother plants, solely for the purpose of propagating seedlings or immature cannabis plants or collecting seeds, in an area clearly delineated from areas used for planting and raising immature cannabis plants and seedlings;

(3) Collection of cannabis seeds for sale;

(4) Preparation of cannabis seedlings and immature plants for sale;

(5) Collecting samples of cannabis for mandatory or research and development testing and delivering those samples to a testing facility;

(6) Selling cannabis seeds, seedlings and immature plants to cultivation facilities and cannabis stores;

(7) Selling unlimited cannabis seeds, and a sum total of 12 seedlings and immature plants to a consumer 21 years of age or older, provided the licensee has designated an area of premises for retail sales in compliance with 18-691 CMR, ch. 30, § 1, sub-§1(B);

(8) Selling agricultural or gardening supplies relating to the cultivation of cannabis to a consumer 21 years of age or older;

(9) Conducting retail sales by delivery of immature cannabis plants, seedlings, cannabis seeds and agricultural or gardening supplies relating to the cultivation of cannabis to consumers 21 years of age or older;

(10) Accepting returns of immature cannabis plants, seedlings, cannabis seeds and agricultural or gardening supplies relating to the cultivation of cannabis from consumers and promptly destroying such returned items; and

(11) Accepting returns of immature cannabis plants, seedlings, and cannabis seeds from another cultivation facility or a cannabis store that received the immature cannabis plants, seedlings, or cannabis seeds from the cultivation nursery cultivation facility and reselling those items subject to the inventory tracking requirements of the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, § 2.

(2) Cannabis Testing Facility License.

(A) A cannabis testing facility may purchase or otherwise obtain cannabis or cannabis products for the purposes of training staff, developing and validating protocols, and other purposes that directly support the operation of a cannabis testing facility.

(B) A cannabis testing facility license permits the following activities on behalf of cultivation facilities, products manufacturing facilities, and cannabis stores subject to all requirements of 28-B MRS and the rules governing the adult use cannabis program:

(1) Collecting and transporting, for the purpose of mandatory testing pursuant to 28-B MRS § 602, samples of cannabis and/or cannabis products cultivated, manufactured or sold by a licensed cannabis establishment;

(2) Receiving, for the purpose of mandatory or other testing, samples of cannabis and cannabis products from sample collectors and self-samplers;

(3) Performing laboratory analysis of samples of cannabis and cannabis products following protocols approved by the Department and in accordance with Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5;

(4) Providing reports on cannabinoid identity and content profiles and biological and chemical contaminants to cultivation facilities, products manufacturing facilities, and cannabis stores;

(5) Reporting testing results according to the requirements of 18-691 CMR, ch. 40; and

(6) Destroying and disposing of samples, subject to all requirements of 28-B MRS and 18-691 CMR, ch. 30, § 4.

(C) A cannabis testing facility license permits the licensee, upon notification in writing to the Department, to:

(1) Accept, from a person 21 years of age or older, cannabis or cannabis products grown or possessed lawfully under 28-B MRS, chapter 3;

(2) Perform laboratory analysis of samples of cannabis or cannabis products following protocols approved by the Department; and

(3) Issue, solely for the use of the person 21 years of age or older, a report on cannabinoid identity and content profiles and biological and chemical contaminants of the sample.

(D) A cannabis testing facility license permits, upon notification in writing to the Department, the following activities on behalf of qualifying patients, caregivers, registered caregivers or registered dispensaries, subject to all requirements of 28-B MRS, 22 MRS, chapter 558-C and the rules governing the adult use cannabis program:

(1) Collecting and transporting, for testing purposes, samples of cannabis or cannabis products from a qualifying patient, a caregiver, a registered caregiver or a registered dispensary;

(2) Performing laboratory analysis of samples of cannabis and cannabis products following protocols approved by the Department;

(3) Providing reports to qualifying patients, caregivers, registered caregivers or dispensaries; and

(4) Destroying and disposing of samples, subject to all requirements of 28-B MRS and 18-691 CMR, ch. 30, § 4.

(3) Products Manufacturing Facility License.

(A) A products manufacturing facility license permits the following activities, subject to all requirements of 28-B MRS and the rules governing the adult use cannabis program:

(1) Purchasing adult use cannabis from licensed cultivation facilities;

(2) Purchasing adult use cannabis concentrate from other licensed products manufacturing facilities;

(3) Extracting cannabinoids from cannabis;

(4) Preparing, weighing, packaging, labeling and storing cannabis and cannabis products;

(5) Collecting samples of cannabis or cannabis products for mandatory or research and development testing and delivering those samples to a testing facility;

(6) Selling or authorized transport of cannabis or cannabis products to licensed products manufacturing facilities and/or cannabis stores;

(7) Selling adult use cannabis and cannabis products by delivery to consumers 21 years of age or older in accordance with the requirements of this rule and the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30.

(a) A products manufacturing facility may accept wholesale transfers of cannabis and cannabis products packaged and labeled for retail sale to consumers by delivery;

(b) A products manufacturing facility may designate a portion of its inventory of cannabis and cannabis products for retail sale to consumers by delivery;

(8) Accepting returns of adult use cannabis or cannabis products from consumers and promptly destroying such returned items;

(9) Accepting returns of adult use cannabis or cannabis products from another products manufacturing facility that received the cannabis or cannabis products from the products manufacturing facility, and then reselling that returned cannabis or cannabis products subject to the inventory tracking requirements of the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, § 2, and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40;

(10) Accepting returns of pre-packaged retail units of adult use cannabis or cannabis products from another products manufacturing facility, cultivation facility or cannabis store that received the cannabis or cannabis products from the products manufacturing facility, and then reselling that returned adult use cannabis or cannabis products subject to the inventory tracking requirements of the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, § 2 and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40; and

(11) As applicable, for products manufacturing facility licensees that have a valid food establishment license from the Department of Agriculture, Conservation and Forestry, manufacture for sale or distribution any products that the facility is authorized to manufacture or distribute in accordance with the food establishment license and the requirements of 18-691 CMR, ch. 30, § 1(7)(H), except that a products manufacturing facility is prohibited from extracting hemp or manufacturing products that contain hemp or ingredients derived from hemp that do not also contain cannabis.

(B) A products manufacturing facility may assemble packaging and labeling for use on their products if packaging and labeling is consistent with the requirements of 28-B MRS, ch. 1 and 18-691 CMR, ch. 30, § 5.

(C) A products manufacturing facility shall comply with all generally applicable kitchen-related health and safety standards of the relevant local jurisdiction and of the State of Maine Food Code, Department of Health and Human Services (Chapter 200) and Agriculture, Conservation and Forestry (Chapter 331).

(1) Preparation of all edible cannabis products, unless otherwise specified, shall comply with all provisions of the State of Maine Food Code, including rules relating to potentially hazardous foods, food preparation areas and all other safety related provisions, unless otherwise specified.

(2) Pursuant to 22 MRS § 2158-B, the addition of adult use cannabis to food is not considered adulteration under the State of Maine Food Code.

(D) Adult use cannabis products shall comply with all other provisions of the rules governing the adult use cannabis program, including the use of solvents and inherently hazardous substances.

(4) Cannabis Store License.

(A) A cannabis store license permits the following activities, subject to all requirements of 28-B MRS and the rules governing the adult use cannabis program:

(1) Purchase, for retail sale to consumers, pre-packaged retail units of cannabis flower, including kief and cannabis trim, immature cannabis plants and seedlings from a licensed cultivation facility;

(2) Purchase, for retail sale to consumers, pre-packaged adult use cannabis and adult use cannabis products from a products manufacturing facility;

(3) Store adult use cannabis, adult use cannabis products, immature cannabis plants and seedlings;

(4) Collect, subject to the requirements and restrictions of 28-B MRS §604-A, samples of cannabis or cannabis products for mandatory testing;

(5) Conduct authorized transfers of pre-packaged adult use cannabis, adult use cannabis products, and as applicable, immature cannabis plants and seedlings to another licensed cannabis store or licensed testing facility;

(6) Collect samples of cannabis or cannabis products for mandatory testing and delivery of those samples to a testing facility;

(7) Sell adult use cannabis, adult use cannabis products, immature cannabis plants, seedlings and seeds to consumers at a cannabis retail store and at a curbside pickup location indicated on the licensee’s facility plan of record;

(8) Sell adult use cannabis, cannabis products, immature cannabis plants, seedlings and seeds to consumers by delivery;

(9) Sell adult use cannabis and cannabis products through off-premises sales at a specified event after obtaining from the Department a permit to conduct such off-premises sales at specified event during a specified time;

(10) Accept returns of adult use cannabis and cannabis products from consumers and promptly destroy such returned items, or return such items, or other items requiring destruction, to a cultivation facility or products manufacturing facility for destruction by that licensee;

(11) Return pre-packaged retail units of adult use cannabis or cannabis products to the cultivation or products manufacturing facility, as applicable, that transferred the adult use cannabis or cannabis products to the licensee;

(12) Sell consumable products not containing cannabis, including, but not limited to: soft drinks, candies and baked goods; and

(13) Give away sample adult use cannabis or adult use cannabis products to a consumer who is at least 21 years of age subject to the limitations of 18-691 CMR, ch. 30, § 1(8)(L).

(B) In addition to any other prohibitions and restrictions of 28-B MRS, the rules governing the adult use cannabis program and any other applicable laws or rules, cannabis store licensee may not:

(1) Give away seedlings or immature cannabis plants;

(2) Sell or give away mature cannabis plants or consumable products containing tobacco or alcohol that do not contain cannabis;

(3) Except for nonedible adult use cannabis products that do not contain THC, sell to any person in any individual sales transaction an amount of adult use cannabis, adult use cannabis products or immature cannabis plants or seedlings that exceeds the person adult use limitations of 28-B MRS § 1501(1);

(4) Sell adult use cannabis, adult use cannabis products, immature cannabis plants or cannabis seedlings using:

(a) An automated dispensing or vending machine;

(b) A drive-through sales window;

(c) An Internet-based sales platform; or

(d) A third-party delivery service; or

(5) Sell, or give away samples of, adult use cannabis or adult use cannabis products to a person who is visibly intoxicated.

(5) Sample Collector License.

(A) A sample collector license permits the following activities, subject to all requirements of 28-B MRS and the rules governing the adult use cannabis program:

(1) Collecting samples of cannabis and cannabis products from a cannabis establishment for the purposes of mandatory or other testing by a testing facility in compliance with:

(a) Applicable sample collection, transport and receipt recordkeeping requirements;

(b) The Department-required sampling standard operating procedures;

(c) The Department-required Best Practices Guide; and

(d) The requirements and restrictions of 28-B MRS § 604-A.

(2) Transporting and delivering those samples to a testing facility.

(B) A sample collector shall deliver to a cannabis testing facility all samples on the day those sample are collected and may not store any collected samples at the sample collector’s home or place of business. Samples may not be held or stored overnight in the sample collector’s vehicle except in the event of unforeseen exigent circumstances in accordance with 18-691 CMR, ch. 30, § 2.

§ 4 - General Licensing Criteria & Qualifications.

(1) General Licensing Criteria. An applicant for a license to operate a cannabis establishment must meet each of the following requirements, if applicable. Except as otherwise provided in this section, if the applicant is a business entity, every principal of the business entity must meet each of the requirements of this section. An applicant shall disclose in or include with its application the names and addresses of the applicant and all natural persons and business entities having a direct or indirect financial interest in the applied-for license and the nature and extent of the financial interest held by each person or entity and, if applicable, the nature and extent of any financial interest the person or entity has in any other license applied for or issued under this rule.

(A) Age. The applicant must be at least 21 years of age. If the applicant is a business entity, every principal must be at least 21 years of age.

(B) Incorporated in State. If the applicant is a business entity, the business entity must be incorporated in the State of Maine or otherwise formed or organized under the laws of the State.

(C) Prohibited persons.

(1) Not an employee of a State agency. The applicant may not be employed by the Department or any other state agency with regulatory authority under the rules governing the adult use cannabis program. The applicant must disclose any current state employment.

(2) Not law enforcement officer or corrections officer. The applicant may not be a law enforcement officer; a corrections officer as defined in 25 MRS § 2801-A(2); or any other natural person subject to the certification requirements of 25 MRS, chapter 341.

(D) Good conduct and character.

(1) No disqualifying drug offense.

(a) Applicants are required to disclose all state and federal criminal convictions, as well as any pending prosecutions, for offenses punishable by imprisonment for one year or more and involving the possession, distribution, manufacturing, cultivation or use of a controlled substance.

(b) The Department may require supplemental information regarding any such convictions disclosed by the applicant or identified by a criminal background check.

(2) The Department may not grant a license to anyone convicted of such offenses, unless the applicant demonstrates that:

(a) The applicant completed his or her sentence, including any term of probation, incarceration or supervised release, 5 or more years prior to the submission of the application; or

(b) The conviction was based on conduct that is now authorized by 28-B MRS.

(3) No license denial or revocation. The applicant, or if the applicant is a business entity, any principal of the business entity, may not have had denied or revoked previously a license issued pursuant to the rules governing the adult use cannabis program.

(4) No medical registry identification card or registration certificate denial or revocation. The applicant, or if the applicant is a business entity, any principal of the business entity, may not have had denied or revoked a registry identification card or registration certificate previously issued pursuant to the Maine Medical Use of Cannabis Act.

(5) Departmental consideration of enforcement actions in other jurisdictions . Applicants are required to disclose any violations or penalties imposed in another jurisdiction regarding the regulated cultivation, manufacture, testing or sale of cannabis or cannabis products.

(6) The Department may for good cause deny a license to an applicant if the applicant, or if the applicant is a business entity, any principal of the business entity, has had denied or revoked a license, permit, certificate or other government-issued authorization issued in another jurisdiction allowing the cultivation, manufacture, testing or sale of cannabis or cannabis products or has faced significant penalties under such authorization.

(7) No outstanding court-ordered payments. A license may not be issued to an applicant if that applicant, or if the applicant is a business entity, any principal of the business entity, has any outstanding payments due on court-ordered fines, court-appointed attorney's fees or court-ordered restitution. Except that the Department may issue a license to an applicant if it is satisfied that the applicant has entered into, and is in compliance with, any agreement or payment plan for the remittance of any fines, fees, or restitution owed.

(8) Departmental consideration of past due taxes, interest, penalties or fees in Maine.

(a) Applicants are required to submit a detailed list of any pending past due taxes, interest, penalties or fees owed in Maine.

(b) The Department may for good cause deny a license to an applicant if the applicant, or if the applicant is a business entity, if any principal of the business entity, is currently delinquent in any payment of income tax, sales tax, excise tax or any other tax, interest, penalty or fee to the state or any municipality within the state. The Department will consider:

(i) The amount of the delinquency;

(ii) Whether deceit was involved;

(iii) Whether the business entity or individual, has entered into, and is in compliance with, any agreement or payment plan with the relevant tax authority overseeing the tax liability for which the applicant is otherwise delinquent; and

(iv) Other mitigating circumstances.

(9) Departmental consideration of past tax delinquency.

(a) Applicants, and if the applicant is a business entity, every principal of the business entity, are required to provide detailed tax history, covering Maine and all other jurisdictions in which taxes were owed, for the 5 years preceding the application.

(10) The Department shall consider an applicant’s history, and if the applicant is a business entity, the history of every principal of the business entity, pertaining to paying taxes to Maine and other jurisdictions in the previous 2 years, as well as any tax liens imposed in any jurisdiction in the previous 5 years, and may for good cause deny a license to an applicant with a recent history of tax delinquency.

(E) Criminal history record check. The applicant must have submitted to a criminal history record check in accordance with the requirements of 28-B MRS and this rule.

(F) Compliance with application process; no false statement of material fact. The applicant must have completed all application forms required by the Department fully and truthfully and complied with all information requests of the Department relating to the license application. A license may not be issued to an applicant that has knowingly or recklessly made any false statement of material fact to the Department in applying for a license under this rule. The Department shall revoke the license of a licensee pursuant to 28-B MRS, chapter 1, subchapter 8 if, subsequent to the issuance of the license, the Department determines that the licensee knowingly or recklessly made a false statement of material fact to the Department in applying for the license.

(2) Criminal History Record Check. The Department shall require fingerprinting and state and federal criminal history record checks for every applicant who is a natural person, and for every natural person who is a principal of an applicant that is a business entity, and biennially thereafter.

(A) For applicants that are business entities, the Department shall require fingerprinting and criminal history record checks for every principal.

(B) The applicant is responsible for all costs associated with fingerprinting and criminal history record checks. The fee for the fingerprinting and criminal history record checks shall be set by the State Police and/or State Bureau of Identification, in accordance with its usual operations.

(C) The Department shall issue a fingerprinting and criminal history record check form or use forms specified by the Department of Public Safety, Bureau of State Police, State Bureau of Identification or Federal Bureau of investigation. Such forms shall obtain the applicant’s consent and information needed to complete the check, including but not limited to:

(1) First, middle and last name;

(2) Any aliases and/or previous names;

(3) Date of birth;

(4) Place of birth;

(5) Identifying information such as gender, height, weight and eye color;

(6) Disclosure of previous convictions;

(7) Driver license information; and

(8) Address and recent residency information.

(D) The Department may request that an applicant disclose his or her Social Security Number if notice is provided that:

(1) Indicates the disclosure of the Social Security Number is voluntary; and

(2) That the Department requests the Social Security Number for the purpose of positively identifying the applicant during the criminal records check process.

(E) All applicants required to submit to a criminal history record check under this section shall submit to having the individual's fingerprints taken. The State Police, upon payment by the individual of the required fee, shall take or cause to be taken the individual's fingerprints and shall forward the fingerprints to the Department of Public Safety, Bureau of State Police, State Bureau of Identification.

(F) The State Bureau of Identification shall conduct the state and national criminal history record checks, which shall include information from:

(1) The Maine Criminal Justice Information System, regarding records of offenses within the state; and

(2) The Federal Bureau of Investigation, regarding offenses in other jurisdictions.

(G) Except for the portion of a payment, if any, that constitutes the processing fee for a criminal history record check charged by the Federal Bureau of Investigation, all money received by the State Police under this section must be paid to the Treasurer of State, who shall apply the money to the expenses incurred by the Department of Public Safety in the administration of this section.

(H) All criminal history record information obtained by the Department pursuant to this rule is confidential, is for the official use of the Department only and may not be disseminated outside of the Department or disclosed to any other person or entity.

(I) The subject of a Federal Bureau of Investigation criminal history record check may obtain a copy of the criminal history record check by following the procedures outlined in 28 Code of Federal Regulations (henceforth referred to C.F.R; the Code of Federal Regulations is available free online at multiple websites, including federal government websites, by searching the citation. All references are to the 2018 version) Sections 16.32 and 16.33. The subject of a state criminal history record check may inspect and review the criminal history record information pursuant to 16 MRS § 709.

(3) Required Forms and Information for All Licenses. All applicants for a cannabis establishment license shall include on forms supplied by the Department as well as attachments thereto, all information requested by the Department, including without limitation information described in this subsection. The Department may collect this information as part of the application for conditional cultivation facility, testing facility, products manufacturing facility and cannabis store and active sample collector licenses.

(A) An applicant for a conditional license for a cultivation facility, testing facility, products manufacturing facility or cannabis store license or an applicant for an active sample collector license shall provide, on forms made available by the Department:

(1) The name of the applicant;

(2) An email account that is actively monitored;

(3) Date of application;

(4) The type of cannabis establishment license being applied for;

(5) Whether or not the licensee proposes to co-locate adult use and medical cannabis operations as permitted by this rule and in accordance with rules governing the Maine Medical Use of Cannabis Program on the licensed premises;

(6) Identification of every principal of the business entity, as applicable;

(7) Identification of all natural persons and business entities having a direct or indirect financial interest in the applied-for license and the nature and extent of the financial interest held by each person or entity and, if applicable, the nature and extent of any financial interest the person or entity has in any other license applied for or issued under this rule;

(8) Identification of any other cannabis establishments, including those outside of Maine, in which the applicant, or if the applicant is a business entity, any principal of the business entity, holds an ownership interest;

(9) Attestations that the applicant, and every principal of the applicant, as applicable:

(a) Has read the licensing requirements;

(b) Is age 21 years or older; and

(c) Has disclosed any disqualifying drug convictions and pending prosecutions for any such disqualifying drug offense; and

(10) A notarized signature page, attesting under penalty of perjury to the accuracy of the information provided in the application.

(B) At a minimum, all applicants shall provide, at the time of application, the following information:

(1) Proof of lawful presence or citizenship in the United States as required on forms provided by the Department.

(2) A list of natural persons and business entities having a direct or indirect financial interest in the applied-for license and a description of the nature and extent of the financial interest held by each person or entity; except that with respect to banks, credit unions, or other state- or federally-chartered financial institutions, in order to the satisfy the requirements of this subsection, the applicant shall disclose:

(a) The name of the institution;

(b) The address of the institution; and

(c) The terms of any financial instrument held by the bank, credit union, or other state- or federally-chartered financial institution.

(C) If the applicant for any license is a business entity it shall submit all Department-required forms, attachments and supplemental information for every principal of the business entity, along with the following additional information and supporting material:

(1) If the business entity is a corporation, a copy of its articles of incorporation within Maine, corporate bylaws, and most recent stock ledger.

(2) If the business entity is a limited liability company, a copy of its certificate of formation within Maine and its most current operating agreement.

(3) If the business entity is a general partnership, limited partnership, limited liability partnership or limited liability limited partnership, a copy of the partnership agreement.

(D) The Department shall require evidence of compliance with all tax obligations.

(1) The Department shall require each applicant, or if the applicant is a business entity, every principal, to disclose the following information to Maine Revenue Services, on forms provided by the Department:

(a) The applicant, or if the applicant is a business entity, every principal shall disclose their Social Security Number for the Maine Revenue Service to provide an assessment of whether the person owes back taxes, interest, fees or penalties.

(b) A list of sales tax identification numbers and employer identification numbers for all entities licensed in the state in which the applicant, or if the applicant is a business entity, in which every principal, has a management role or ownership interest of 10 percent or more for the Maine Revenue Service to provide an assessment of whether any of those entities owe back taxes, interest, fees or penalties.

(2) The Department shall require the disclosure of the following information to Maine Revenue Services for the purpose for providing evidence of compliance with all tax obligations:

(a) For each applicant that is a business entity, the business entity’s employer identification number and any associated sales tax ID number for the Maine Revenue Service to provide an assessment of whether the business entity applying for a license to operate a cannabis establishment owes back taxes, interest, fees or penalties.

(E) It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS § 402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

§ 5 - Application for Conditional License.

(1) Conditional License. The Department may issue a conditional license to applicants for any type of cannabis establishment license, except for a sample collector license. Because an applicant for a sample collector license is not required to obtain local authorization, the Department will not issue a conditional sample collector license. Instead, the initial application is for an active license.

(A) The application for a conditional license must meet all requirements applicable to all license types and include all information applicable to all license types.

(B) The conditional license is valid for one year and is non-renewable.

(C) The conditional license may be used to demonstrate that the applicant has met the Department’s conditional licensing requirements under 28-B MRS §205(3), for the purpose of seeking local authorization.

(D) The conditional license does not grant any authority for cultivation, manufacturing, testing or sale of cannabis or cannabis products.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS § 402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

(2) Additional Requirements for Issuance of a Conditional Cultivation Facility License.

(A) Each applicant for a conditional cultivation facility license shall designate in its application, the tier (or designation as a nursery cultivation facility) for the proposed cultivation facility.

(1) Each applicant for a conditional tier 1 cultivation facility license must designate in its application whether the license sought is plant-count based or total plant canopy area based pursuant to 28-B MRS § 301.

(2) Each applicant for a conditional nursery cultivation facility license must designate in its application whether it intends to sell cannabis seeds, seedlings or immature plants to adults, 21 years of age or older, who are not licensees.

(B) An applicant for a conditional cultivation facility license that intends to co-locate its licensed premises shall notify the Department of its intention to co-locate in its application.

(C) An applicant for a conditional cultivation facility license for a tier 1, tier 2 or nursery cultivation facility license that intends to conduct sales, as applicable, of adult use cannabis or adult use cannabis products to consumers by delivery must include in its application affirmation that the licensee will conduct such retail sales by delivery only between the hours of 7 A.M. and 10 P.M. local time.

(3) Additional Requirements for Issuance of a Conditional Products Manufacturing Facility License. Each applicant for a conditional products manufacturing facility license shall submit the following information in its application:

(A) A description of the manufacturing activities that will occur on the premises;

(B) An applicant for a conditional products manufacturing facility license that intends to co-locate its licensed premises shall notify the Department of its intention to co-locate in its application;

(C) An applicant for a conditional products manufacturing facility license that intends to use the portion of its licensed premises that is licensed as a food establishment by the Department of Agriculture, Conservation and Forestry (DACF) for the manufacture of any products that do not contain cannabis or hemp shall notify the Department of its intention to manufacture such products on its application; and

(D) An applicant for a conditional products manufacturing facility license that intends to conduct sales of adult use cannabis or adult use cannabis products to consumers by delivery must include in its preliminary operating plan affirmation that the licensee will conduct such retail sales by delivery only between the hours of 7 A.M. and 10 P.M. local time.

(4) Additional Requirements for Issuance of a Conditional Testing Facility License. Each applicant for a cannabis testing facility license shall include, on forms supplied by the Department, and attachments thereto, all information required by the Department, including without limitation, the following information:

(A) A statement identifying whether the cannabis testing facility and/or other operational assets will be owned or leased by a person or entity other than the applicant.

(B) A statement as to whether the cannabis testing facility intends to offer, in addition to mandatory testing, testing services to persons 21 years of age or older under 28-B MRS §503(1)(C) and/or qualifying patients, caregivers, registered caregivers or registered dispensaries under 28-B MRS §503(1)(D).

(C) An applicant for a cannabis testing facility must submit the following additional documentation to obtain a conditional license:

(1) A written policy that, as indicated by signature, ensures management and personnel are free from any undue internal and external commercial, financial and other pressures, and influences that may adversely affect the quality of their work or diminish confidence in its competence, impartiality, judgement or operational integrity, as well as a signed disclosure by the owners and principal(s) of the licensee stating that there is no financial conflict with, interest in, investment in, landlord-tenant relationship with or loan to a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary;

(2) A description of the organization and management structure of the cannabis testing facility, its place in any parent organization and the relationships between quality assurance, technical operations and support services;

(3) A management plan defining the responsibilities of key personnel in the organization who have any involvement or influence on the testing, and if the cannabis testing facility is part of an organization performing activities other than testing, identifying potential conflicts of interest;

(4) Written policies and procedures that ensure the protection of its clients’ confidential information and proprietary rights, including procedures for protecting the electronic storage and transmission of results;

(5) A written policy defining legal chain of custody protocols and including procedures to control access to certificate of analysis data and other testing data to prevent it from being falsified or manipulated; and

(6) Written procedures for the receipt of samples, including samples collected by:

(a) Sample collectors pursuant to 28-B MRS §503;

(b) Other cannabis establishments for mandatory testing pursuant to 28-B MRS §604-A or for voluntary testing;

(c) Qualifying patients, caregivers, registered caregivers or registered dispensaries pursuant to 22 MRS, chapter 558-C; and

(d) Other persons 21 years of age or older.

(5) Additional Requirements for Issuance of a Conditional Cannabis Store License. Each applicant for a conditional cannabis store license shall submit the following information in its application:

(A) A cannabis store application must at a minimum include affirmation that the licensee will conduct retail sales, including sales via curbside pickup and/or delivery, to consumers only between the hours of 7 A.M. and 10 P.M. local time or only those days and hours during which retail sales are permitted by local regulation; and

(B) If the application for a nursery cultivation facility includes sales to consumers, the operating plan shall meet all requirements that are applicable to cannabis stores in addition to all requirements that are applicable to nursery cultivation facilities.

(6) Administrative Abandonment of Conditional License Applications that are Inactive for at Least 365 Days. The Department may deem an application for a conditional license abandoned if the following conditions are met:

(A) The applicant has not provided all required information to complete its conditional license application within one year from the date of the initial application; and

(B) The Department attempted to contact the applicant in writing at least 30 days prior to expiration of the one-year abandonment period to notify the applicant of the pending abandonment.

Once a conditional license application has been deemed abandoned by the Department, an applicant for a conditional license shall begin a new application for a conditional cannabis establishment license.

§ 6 - Application for Active Sample Collector License.

(1) Forms. An applicant shall prepare an application on forms made available by the Department along with the appropriate application fee as determined by the Department pursuant to 28-B MRS § 207 and 18-691 CMR, ch. 10, § 2. In order for an application for an active sample collector license to be considered complete, the following must be true:

(A) An applicant for a sample collector license must meet all applicable requirements of the rules governing the adult use cannabis program.

(B) An applicant for a sample collector license shall include on forms supplied by the Department, as well as attachments thereto, all information requested by the Department, including without limitation information described in the sections referenced in subsection A above and:

(1) A facility plan including an indication of whether the licensee does not intend to conduct authorized activities during any business hours. The applicant shall indicate any business days or hours, as defined in 18-691 CMR, ch. 10, it does not intend to conduct authorized activities;

(2) Designation of a place of business or home office where records and equipment are appropriately and securely stored, including a description of where the Department can inspect all required records upon request;

(3) A statement asserting whether the sample collector’s operational assets will be owned or leased by a person or entity other than the applicant;

(4) A written policy that, as indicated by signature, ensures management and personnel are free from any undue internal and external commercial, financial and other pressures, and influences that may adversely affect the quality of the sample collector’s work, diminish confidence in the sample collector’s competence, impartiality, judgment or operational integrity, as well as a signed disclosure by the owner(s) and principal(s) stating that there is no financial conflict with, interest in, investment in, landlord-tenant relationship with or loan to a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary;

(5) A description of the organization and management structure of the sample collector, and its place in any parent organization;

(6) Written policies and procedures that ensure that protection of the sample collector’s clients’ confidential information and proprietary rights; and

(7) Proof that the applicant has an inventory tracking system account activated and functional.

(C) All applications must be complete and accurate in every material detail.

(D) An application for an active sample collector license is considered incomplete until the Department is in possession of all required forms, supplemental information, criminal history record checks and any other requirements of this rule.

(E) A license issued to a cannabis establishment or an individual constitutes a revocable privilege. The burden of proving an applicant’s qualifications for licensure rests at all times with the applicant.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS § 402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

(2) Vehicle Requirements. An applicant for an active sample collector license must provide the following information to the Department for each vehicle that will be used to transport samples:

(A) Proof of a valid insurance policy;

(B) A description, with photos as necessary, of the locked compartment to be used to secure samples; and

(C) A description of how the sample collector will maintain samples within the appropriate temperature range.

(3) Payment of Fees. Before issuing an active license, the Department shall invoice the applicant for the applicable fee as determined by the Department pursuant to Title 28-B and 18-691 CMR, ch. 10, § 2. The Department shall not accept any license fees except pursuant to such invoice.

§ 7 - Department Review of Applications for Conditional Licenses & Active Sample Collector License.

(1) Ownership Interest. Except for an applicant for a cannabis testing facility license, the Department shall verify that any applicant for a cannabis establishment license is either a natural person or a business entity that meets the requirements of 28-B MRS and the rules governing the adult use cannabis program.

(A) The Department may require additional information to verify that business structures, loans, franchise agreements, royalty agreements and other legal arrangements are not being used to circumvent licensing requirements including without limitation: limits on common financial interests and disqualifying drug offenses.

(B) The Department will ensure that issuance of both a conditional license or active license to the applicant will not result in any person having a direct or indirect financial interest in:

(1) More than 3 cultivation facility licenses;

(2) Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to 28-B MRS §304; or

(3) A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

(C) An application for license will not be considered complete until the applicant satisfies all such information requests.

(D) The Department may refuse to issue a conditional license for a cultivation facility, products manufacturing facility or cannabis store license or active license for a sample collector to an applicant at its discretion until it is satisfied that the applicant has met the requirements of 28-B MRS and the rules governing the adult use cannabis program.

(2) Application for a Conditional License and Active License for Sample Collector Processing. An application for a conditional license, or active license for a sample collector, is considered incomplete until the Department is in possession of all required forms, additional information, criminal history record checks and any other requirements of the rules governing the adult use cannabis program. If, in the course of processing the application, the Department discovers that any required forms, supplemental information or criminal history record checks are incomplete, the Department may ask the applicant to supply the missing information . The Department has 90 days from the date the Department provides notice to the applicant that the application is complete to review and act upon the application. The Department shall, however, avoid unreasonable delays in the case of inadvertent omission of material that is not central to its review of the merits of the application for a conditional license or active license for a sample collector.

(3) Application for a Conditional License and Active License for Sample Collector Review.

(A) For the purposes of processing applications for cannabis establishments, the Department, pursuant to 28-B MRS § 205, shall apply an objective standard to establishing whether an applicant has satisfied the cannabis establishment licensing requirements, specifically the satisfaction of general licensing criteria and the submission of all required documents, forms and fees and the subsequent issuance of provisional and active licenses.

(B) Within 90 days from the date the Department provides notice to the applicant that the application is complete, the Department shall, as applicable:

(1) Deny the license application;

(2) Issue a non-renewable conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store valid for up to one year; or

(3) Issue an active license for a sample collector valid for one year.

(4) Withdrawal.

(A) The Department and the applicant for a conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store or the applicant for an active license for a sample collector may mutually agree in writing to the voluntary withdrawal of an application for a conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store or an active license for a sample collector.

(B) The Department may not refund any application or other fees, regardless of the circumstances of the withdrawal.

(5) Denial. The Department may for good cause pursuant to 28-B MRS §206 deny an application for a conditional license for a cultivation facility, products manufacturing facility, testing facility or cannabis store or for an active sample collector license.

(A) The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

(1) Disqualifying drug offenses;

(2) Other mandatory disqualifying factors;or

(3) Any other reason constituting good cause.

(B) Denial of an application pursuant to 28-B MRS § 206 is final agency action as defined in 5 MRS § 8002(4). The Department shall notify the applicant in writing of the applicant’s right to appeal the denial to the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

§ 8 - Application for Active License of a Cultivation Facility, Testing Facility, Products Manufacturing Facility or Cannabis Store, Including Provisional Testing License.

(1) Forms. An applicant shall prepare an application on forms made available by the Department for the type of license sought along with the appropriate application fee as determined by the Department pursuant to 28-B MRS § 207 and this rule. For an application for a cannabis establishment to be considered complete, the following must be true:

(A) All applications must include all attachments or supplemental information required by the current forms supplied by the Department and the rules governing the adult use cannabis program.

(B) All applications must be complete and accurate in every material detail.

(C) A license issued to a cannabis establishment or an individual constitutes a revocable privilege. The burden of proving an applicant’s qualifications for licensure rests at all times with the applicant.

(D) The Department may refuse to accept or consider an incomplete application.

(2) Local Authorization.

(A) In order for a cultivation facility, testing facility, products manufacturing facility or cannabis store conditional licensee to be eligible for a cannabis establishment active license, the municipality or the Maine Land Use Planning Commission, whichever has jurisdiction over the planned site, must have submitted a signed and notarized local authorization certification form prepared and furnished by the Department.

(B) Upon receipt of the local authorization certification form, the Department shall, within 10 calendar days, notify the applicant of any additional information needed for the issuance of an active license.

(C) Nothing in this rule shall be construed to prohibit local entities from implementing municipal or other local regulations further restricting the operation and siting of cannabis establishments, including, but not limited to regulations regarding the co-location of residences, registered caregivers, dispensaries and/or cannabis establishments.

(D) Local authorization is not required for sample collector licenses.

(3) Supplemental Information for Issuance of Active License.

(A) All conditional licensees must submit the following forms and supplemental information:

(1) Affirmation that the operating plan, and as applicable, cultivation plan submitted for a conditional license is accurate, and updated information if such operating or cultivation plan has changed from the information submitted for conditional licensure.

(2) Evidence of compliance with all applicable electrical inspection and permitting requirements; which may include but is not limited to: a Certificate of Occupancy issued by the municipal code officer, or written clearance by the Electricians Examining Board, Department of Professional and Financial Regulations.

(3) Copies of any required licenses, certificates or registrations from any state agency with oversight of any authorized activities conducted on the licensed premises including without limitation:

(a) Licenses and certifications required for food and beverage manufacturing, bottling and sale, and scale certifications from the Department of Agriculture, Conservation and Forestry;

(b) Pesticides applicator license from the Board of Pesticides Control, Department of Agriculture, Conservation and Forestry; and/or

(c) Tobacco retail sales license from the Department of Health and Human Services and tobacco distributor license from the State Tax Assessor.

(4) Affirmation that the licensee will operate in accordance with all applicable federal, state and local laws and regulations, including without limitation laws and regulations regarding waste management and disposal, food and beverage safety, pesticides application and workplace safety.

(5) Facility plan, consistent with the requirements of this rule.

(6) Confirmation that the cannabis establishment has a tracking system account activated and functional.

(7) Proof of ownership of the premises or proof of the owner’s consent for the intended use of the premises.

(8) Identification of any registered caregiver or registered dispensary that will be co-located with a cultivation or products manufacturing facility licensee, as applicable, and demonstration that at least one owner of the applicant is also the co-located registered caregiver or owner of the co-located registered dispensary.

(9) Any material changes from the conditional license application, including but not limited to, any changes related to ownership or control and any new arrests or criminal charges of the applicant, or if the applicant is a business entity, of any principal.

(10) Any information necessary to determine if the applicant continues to meet all requirements of conditional licensure; including any updates to information in the application or an attestation that there have not been any material changes to the conditional license application.

(B) All licensees engaging in manufacturing involving inherently hazardous substances shall also show proof of compliance with the requirements of this rule, on forms made available by the Department.

(C) Cultivation facilities, including nursery cultivation facilities, must additionally submit the facility’s Excise Tax Identification Number and verification by the Department of registration with the State Tax Assessor.

(D) A cannabis testing facility must obtain full or provisional certification by the CDC as described in Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5, before the Department will issue a provisional or full active testing facility license. A cannabis testing facility may test cannabis and cannabis products only if it holds a current provisional or full certification from the CDC. Initial certification will be for a period of 1 year, and annual recertification is required in compliance with 18-691 CMR, ch. 5. A cannabis testing facility must maintain its certification at all times to remain licensed by the Department. A cannabis testing facility must notify the Department within 1 business day if the CDC suspends or revokes its certification. If the CDC suspends or revokes its certification the cannabis testing facility must cease all testing for any analyte and technology covered by the suspension or revocation.

(1) A cannabis testing facility must apply for ISO/IEC 17025:2017 accreditation before the Department will issue a provisional active testing facility license.

(a) The cannabis testing facility may apply for a Department-issued testing facility license to conduct testing only for those fields of testing included in the application for ISO/IEC 17025:2017 accreditation.

(b) Upon receipt of ISO/IEC 17025:2017 accreditation, a cannabis testing facility must demonstrate proof of accreditation to the Department and DHHS within 5 business days of receipt.

(c) Before the expiration of its provisional active license and any permitted one-time renewal of the same, a cannabis testing facility must obtain ISO/IEC 17025:2017 accreditation; otherwise it must cease all operations in that field of testing until such accreditation is obtained if no other field of testing related to cannabis remains.

(d) If ISO/IEC 17025:2017 accreditation is denied to the cannabis testing facility holding provisional active licensure, the facility must notify the Department of the denial within one business day of receipt of the denial. The Department shall revoke the provisional active license, upon the cannabis testing facility’s notification of denial of ISO/IEC 17025:2017 accreditation.

(E) The Department may request additional information or documentation to ensure that issuance of an active license will not result in any person having a direct or indirect financial interest in:

(1) More than 3 cultivation facility licenses;

(2) Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to 28-B MRS §304; or

(3) A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

(4) Facility Plan. In accordance with the requirements of this rule, a conditional licensee shall submit a facility plan, on forms provided by the Department, that includes all of the following elements in order to receive an active license. The facility plan shall include diagrams and drawings with sufficient detail and clarity to allow the Department to identify all elements required below; such as diagrams and drawings produced using computer-aided design (CAD) or digital drafting software. The facility plan shall include the following elements, identified with sufficient detail for the Department to determine compliance with this section:

(A) Location of the establishment within the municipality, town, township, or plantation, and indicating its proximity to any school. A copy of a tax map showing an area in all directions from the premises of 1000 feet, or in cases where a municipality or the Maine Land Use Planning Commission has reduced the setback to no less than 500 feet, then showing the distance in all directions required by local authority, and indicating that the area around the premises does not include a pre-existing public or private school, as defined in 28-B MRS §§ 402(2)(A) and 403(2)(A), shall meet this requirement;

(B) Size and layout of the establishment, including, but not limited to, limited access areas, display areas, commercial kitchen areas, sample receiving areas and points of entry;

(C) A legal ingress onto the property from the closest maintained public way;

(D) If the property is also used as a residence, the location of that residence within that property and plans for complete separation of the residence from the facility, including:

(1) Entirely separate entrances to the residence and any portion of the property that is part of the licensed premises; and

(2) That no solvent extraction is being conducted in the same building or structure as the residence;

(E) Description of the licensee’s visitor identification badge verification process and visitor entry log in compliance with requirements of 18-691 CMR, ch. 30, § 1;

(F) Identification of all required security measures required in 18-691 CMR, ch. 30, § 1 and a written security plan in accordance with 18-691 CMR, ch. 30, § 1;

(G) An indication of whether the licensee does not intend to conduct authorized activities during any business hours, as defined in 18-691 CMR, ch. 10, § 1. The applicant shall indicate any business days or hours it does not intend to conduct authorized activities;

(H) An indication whether the applicant intends to collect samples of cannabis and cannabis products and deliver them to testing facilities for mandatory testing pursuant to 28-B MRS §604-A, and if so, must submit an attestation that it will follow department-required sampling procedures;

(I) As applicable, plans for co-location of multiple cannabis establishments or a cannabis establishment and a registered caregiver or dispensary;

(J) For conditional cultivation facility licensees, the following additional elements:

(1) The size of the cultivation facility;

(2) The layout of the cultivation facility;

(3) A floor plan showing the proposed size and layout of the cultivation areas where the licensee intends to cultivate mature cannabis plants, showing exterior dimensions of the areas, drawn in straight lines and clearly stating the square footage of each area. The floor plan for a cannabis cultivation establishment must include the detail dimensions of all areas which the licensee is authorized to cultivate mature plants;

(a) For conditional cultivation facility licensees intending to engage in the cultivation of mature cannabis plant canopy in any noncontiguous outdoor area, the licensee shall clearly delineate each row where mature cannabis plants will be grown in order to calculate the total mature plant canopy of the cultivation facility.

(4) A floor plan showing the proposed size and layout of the cultivation areas where the licensee intends to cultivate mature cannabis plants solely for the purpose of propagating seedlings, immature cannabis plants or collecting seeds, seedlings and immature cannabis plants, showing exterior dimensions of the areas, drawn in straight lines and clearly stating the square footage of each area and whether this square footage is within or outside the plant canopy;

(5) Clear delineation of where mature cannabis plants, cannabis plants solely used for propagation, immature plants and seedlings will be grown;

(6) The lights, irrigation, greenhouses and other equipment to be used;

(7) A list of all pesticides, fungicides, insecticides and fertilizers that will be present or used;

(8) If applicable as part of an integrated pest management plan, a list of all other vegetation to be cultivated alongside any cannabis;

(9) If applicable, for a conditional tier 1, tier 2 or nursery cultivation facility licensee that intends to conduct sales of adult use cannabis or cannabis products by delivery to consumers, affirmation that the licensee will only conduct retail sales by delivery to consumers during the hours of 7 A.M. and 10 P.M. local time; and

(10) Each applicant for an active cultivation facility license that intends to co-locate its licensed premise with a registered dispensary or registered caregiver must address the following in its facility plan:

(a) Identification of the registered caregiver or registered dispensary that will be co-located with the cultivation facility licensee;

(b) Indication on the floor plan, with the same level of detail, areas to be used for cultivating cannabis for medical use, including which areas will be used to cultivate plants solely used for propagation, seedlings, immature plants and mature plants;

(c) Indication on the floor plan any areas that will support cultivation of both cannabis for medical use and adult use cannabis, including storage areas, office space, walkways, entryways, restrooms and utility rooms;

(d) A list of all equipment to be used for cultivating both cannabis for medical use and adult use cannabis;

(e) A description of how the licensee will ensure that each shared piece of cultivation equipment is not used simultaneously on cannabis for medical use and adult use cannabis, with the purpose of ensuring that cannabis for medical use remains separate from adult use cannabis.

(f) Each applicant for an active cultivation facility license to share premises with a registered dispensary or registered caregiver must address in its facility plan the licensee’s plan for creating a visually conspicuous delineation to make distinct the areas used for cultivation of cannabis for medical use from those areas used for the cultivation of adult use cannabis. For the purposes of this paragraph, “visually conspicuous delineation” means a permanently constructed physical barrier including, but not limited to, walls or fencing.

(i) A co-located cultivation facility licensee shall ensure that adult use cannabis plants and cannabis plants for medical use are not cultivated in the same cultivation room;

(ii) A co-located cultivation facility licensee shall ensure that adult use cannabis plants and cannabis plants for medical use are not dried in the same drying room at the same time;

(iii) A co-located cultivation facility licensee shall ensure that adult use cannabis and cannabis for medical use is not cured in the same curing room at the same time;

(iv) A co-located cultivation facility licensee shall ensure that adult use cannabis and cannabis for medical use is not trimmed or packaged in the same room at the same time; and

(v) A co-located cultivation facility licensee shall indicate in its facility plan its plan for storing adult cannabis flower and trim and harvested cannabis for medical use in a manner whereby the adult use and medical cannabis are readily identifiable and distinguishable in any shared storage areas;

(g) The licensee shall separately track cannabis for medical use and adult use cannabis and will otherwise ensure that they do not become intermixed;

(h) As applicable, the cultivation facility must have distinctly separate entrances from the area of the premises used for retail sales of adult use cannabis to consumers and for the distribution of cannabis and cannabis products for medical use. Under no circumstances can cannabis or cannabis products for medical use be sold in, transferred, transported or otherwise conveyed through any portion of the co-located premises designated for retail sales of adult use cannabis or cannabis products to consumers; and

(i) The cultivation facility must conduct all cultivation activities for adult use cannabis and cannabis for medical use in accordance with 28-B MRS and the rules governing the adult use cannabis program.

(11) Nursery cultivation facility applicants that intend to conduct sales to adults over the age of 21 who are not licensees shall submit a facility plan that meets all of the requirements for both a cultivation facility and a cannabis store.

(K) For conditional products manufacturing facility licensees, the following additional elements:

(1) A diagram illustrating in which areas of the premises each manufacturing activity will occur;

(2) A diagram illustrating the areas of the premises where any solvent (excluding water), chemical or potentially hazardous substance will be stored;

(3) Manufacturing equipment to be used, including without limitation extraction equipment, kitchen equipment, and equipment used to package and label cannabis and cannabis products;

(a) For any extraction equipment that uses inherently hazardous substances, the UL listing in addition to certification by a professional engineer licensed in Maine that the extraction equipment is properly installed;

(4) A description of the types of products such as edible, inhaled or topical that will be manufactured on the premises;

(5) Any extraction methods and solvents to be used for extraction;

(6) Any inherently hazardous substances to be used for extraction, along with the process for use, certification by a professional engineer licensed in Maine that the manufacturing facility’s storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems are adequate;

(7) If the conditional products manufacturing facility licensee intends to conduct sales of adult use cannabis or cannabis products by delivery to consumers, affirmation that the licensee will only conduct retail sales to consumers during the hours of 7 A.M. and 10 P.M. local time; and

(8) Each applicant for an active cannabis products manufacturing facility license that intends to co-locate its licensed premise with a registered dispensary or registered caregiver must address the following in its facility plan:

(a) Identification of the registered caregiver or registered dispensary that will be co-located with the products manufacturing facility licensee;

(b) An indication on the floor plan any areas of the premises where adult use and medical cannabis will be received, manufactured, packaged, labeled or stored;

(c) An indication on the floor plan any areas of the premises where equipment, chemicals and other items to be used for both adult use and medical cannabis manufacturing will be used and stored;

(d) A list of all extraction equipment and other supplies to be used for extracting from both cannabis for medical use and adult use cannabis;

(e) A list of all manufacturing equipment and other supplies to be used for manufacturing both cannabis products for medical use and adult use cannabis products;

(f) A description of how the licensee will ensure that each shared piece of extraction or manufacturing equipment is not used simultaneously or contemporaneously on cannabis for medical use and adult use cannabis, with the purpose of ensuring that cannabis, cannabis concentrate and cannabis products for medical use remain separate from adult use cannabis, cannabis concentrate and cannabis products;

(g) A description of how the licensee will track and store cannabis for medical use separately from adult use cannabis, cannabis concentrate and cannabis products and will otherwise keep them from becoming intermixed;

(h) A clear indication on floor plans of which areas house equipment used to manufacture both cannabis for medical use and adult use cannabis products; and

(i) A clear indication of any areas used to store equipment, supplies or non-cannabis ingredients used to produce, package or label both cannabis products for medical use and adult cannabis products.

(9) Each applicant for an active cannabis products manufacturing facility license that intends to use the portion of its licensed premises that is licensed as a food establishment by DACF for the manufacture of any products that contain neither cannabis nor hemp (collectively referred to as “non-cannabis products” for the purpose of this paragraph) must address the following in its facility plan:

(a) An indication on the floor plan of the portion of the licensed premises that is licensed as a food establishment by DACF;

(b) An indication on the floor plan of any areas of the premises where non-cannabis products will be received, manufactured, packaged, labeled or stored separate from any cannabis products;

(c) An indication on the floor plan any areas of the premises where equipment, chemical, ingredients, or other items to be used for both adult use cannabis and non-cannabis product manufacturing will be used and stored;

(d) A list of all extraction equipment and other supplies to be used for manufacturing both cannabis products and non-cannabis products;

(e) A description of the cleaning and sanitation methods that will be employed to ensure that that no cannabis residues remain on any surface or equipment used in the food establishment to manufacture non-cannabis products;

(f) A description of how ingredients that will be used to manufacture non-cannabis products will be physically separated from cannabis, cannabis concentrate and cannabis products, including a clear indication of any areas used to store equipment, supplies or non-cannabis ingredients used to produce, package or label both cannabis and non-cannabis products;

(g) A description of how the licensee will ensure that each shared piece of extraction or manufacturing equipment is not used simultaneously or contemporaneously to manufacture cannabis and non-cannabis products, with the purpose of ensuring that adult use cannabis, cannabis concentrate and cannabis products are not intermingled with non-cannabis products; and

(h) A clear indication of any areas used to store equipment, supplies or non-cannabis ingredients used to produce, package or label both cannabis and non-cannabis products.

(L) For conditional cannabis testing facility licensees, the following additional elements:

(1) A premises diagram of the cannabis testing facility that includes a brief statement of the primary activity to be conducted in each room or partitioned area, including without limitation activities related to sample receiving, sample storage, record storage, microbiological and chemical analysis and office space;

(2) A list of all mandatory tests, including technology and analyte, for which the applicant has received or is applying for ISO/IEC 17025 accreditation at the time of the application for a conditional license from the Department;

(3) A list of all mandatory tests, including technology and analyte, for which the applicant has received or is applying for full or provisional certification from the CDC;

(4) A list of all nonstandard test methods and technologies for which the applicant has received or requested CDC certification for any mandatory test;

(5) A description of the workplace safety plan consistent with 29 CFR 1910 as applicable; and

(6) Plans for disposal of cannabis waste and cannabis product waste.

(M) For conditional cannabis store licensees, the following additional elements:

(1) Affirmation that the licensee will only conduct retail sales to consumers during the hours of 7 A.M. and 10 P.M. local time or only those days and hours during which retail sales are permitted by local regulation;

(2) An indication of whether the licensee intends to sell adult use cannabis and/or adult use cannabis products to consumers using curbside pickup and/or delivery;

(3) A diagram illustrating the layout of the licensed premises, including limited access areas and any areas where the licensee intends to conduct curbside pickup;

(a) For cannabis store licensees conducting curbside pickup in an area immediately adjacent to the primary public ingress and egress of the store, but not included in the licensed premises, the licensee shall also indicate the curbside pickup area on its facility diagram;

(b) Any curbside pickup location outside of the licensed premises must be a place designated for parking or standing, and fully within view of cameras fixed to the exterior of the cannabis store;

(4) Identification of the area where the licensee will verify the age of all customers;

(5) Description of how the cannabis store licensee will prevent unauthorized sales to, or on behalf of, minors accompanying adult use consumers within the licensed premises;

(6) Descriptions or diagrams of displays indicating how they control customer access to cannabis and cannabis products; and

(7) Descriptions of any electrical equipment.

It is the exclusive responsibility of the applicant to clearly indicate on any forms, attachments, and supplemental information supplied to the Department any content the applicant deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS § 402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

(5) Co-Location of Adult Use Cannabis Establishments. An applicant may propose the co-location of multiple adult use cannabis establishment types in accordance with this subsection. Nothing in this subsection should be construed to permit the retail sale of adult use cannabis or adult use cannabis products in the same facility or building in which the licensee also sells or offers for sale to qualifying patients cannabis and cannabis products for medical use pursuant to the Maine Medical Use of Cannabis Act.

(A) The Department may approve an application that would result in a testing facility being located adjacent to another type of adult use cannabis establishment or a registered dispensary, registered caregiver, or manufacturing facility registered in accordance with 22 MRS §2423-F, only if the following conditions are met:

(1) The testing facility must have a distinctly separate entrance from a public right of way;

(2) The testing facility must demonstrate it has adequate environmental controls to protect against incidental contamination of testing equipment or samples as a result of its location adjacent to an adult use cannabis establishment, registered dispensary, registered caregiver, or manufacturing facility registered in accordance with 22 MRS §2423-F;

(3) Signage must not convey the impression that the two businesses are connected; and

(4) There must be no way that an employee of the testing facility or the other business may travel between the two businesses without returning to the public right of way. Public right of way shall be interpreted in this paragraph to include private property that is generally open to the public during normal business hours, such as a shopping center or business park.

(B) The Department may approve an application that would result in a cultivation facility being co-located with a products manufacturing facility or cannabis store, only if the following conditions are met:

(1) The cultivation facility area shall be clearly delineated from the other establishment in all written plans.

(2) Regardless of common ownership, excise tax is payable when any cannabis seedlings, immature plants, cannabis is transferred from the inventory of a cultivation facility into the inventory of another cannabis establishment. All cannabis must be entered into the tracking system, and excise taxes shall be paid when it is transferred to another licensee in accordance with the rules governing the adult use cannabis program and Title 36, ch. 723.

(3) If the cultivation facility is co-located with a cannabis store, the cultivation facility may not be also co-located with a registered caregiver or the retail location of a registered dispensary.

(4) If the cultivation facility is co-located with a registered caregiver or registered dispensary, as well as a products manufacturing facility, the licensees shall ensure that all applicable co-location requirements of this rule are met.

(C) The Department may approve an application that would result in a products manufacturing facility being co-located with a cannabis store, only if the following conditions are met:

(1) The products manufacturing area shall be clearly delineated from the other establishment in all written plans.

(2) Any shared space must comply with all regulations applicable to products manufacturing facilities and all regulations applicable to cannabis stores.

(3) No manufacturing facility using inherently hazardous substances may be co-located with a cannabis store unless all inherently hazardous extraction activities are conducted in a separate and entirely freestanding structure.

(4) If the products manufacturing facility is co-located with a cannabis store, the licensee shall ensure that cannabis and cannabis products remain at all times within the care and control of an individual identification cardholder delivered to or transported through the retail sales area(s) of the cannabis store during the hours that the cannabis store is open to the public;

(5) The manufacturing facility may not be also co-located with a registered caregiver or the retail location of a registry dispensary.

(6) Tax Registration. The Department may not issue an active license to a conditional licensee that is not properly registered with the State Tax Assessor.

(A) Any conditional licensee must obtain a Sales and Use Tax Account Identification Number. A unique Sales and Use Tax Account Identification Number is required for each active license, regardless of common ownership or co-location.

(B) A conditional cultivation facility licensee, including a nursery cultivation facility licensee, must additionally obtain an Excise Tax Identification Number. A unique Excise Tax Identification Number is required for each active cultivation facility license (including nursery cultivation facility), regardless of common ownership or co-location.

(C) As applicable, a conditional licensee must obtain a resale certificate.

(7) Application Processing for an Active License. An application for an active license is considered incomplete until the Department is in possession of all required forms, supplemental information, criminal history record checks and any other requirements of this rule. If, in the course of processing the application, the Department discovers that any required forms, supplemental information or criminal history record checks are incomplete, the Department may ask the applicant to supply the missing information. The Department shall, however, avoid unreasonable delays in the case of inadvertent omission of material that is not central to its review of the merits of the application for a conditional license or active license for a sample collector.

(8) Application for an Active License Review.

(A) For the purposes of processing applications for active cannabis establishment licenses, the Department, pursuant to 28-B MRS § 205, shall apply an objective standard to determine whether an applicant has satisfied the cannabis establishment licensing requirements, specifically the satisfaction of general licensing criteria and the submission of all required documents, forms and fees and the subsequent issuance of provisional and active licenses.

(B) Upon receipt and review of a complete application, the Department shall, as applicable:

(1) Deny the license application;

(2) Issue a renewable active license for a cultivation facility, products manufacturing facility, testing facility or cannabis store valid for up to one year; or

(3) Issue an active license for a sample collector valid for one year.

(9) Payment of Fees. Before issuing an active license, the Department shall invoice the conditional licensee for the applicable fee as determined by the Department pursuant to Title 28-B and 18-691 CMR, ch. 10, § 2. The Department shall not accept any license fees except pursuant to such invoice. The Department may not refund any license or other fees, regardless of the circumstances.

(10) Denial. The Department may for good cause pursuant to 28-B MRS § 206 deny an application for an active license.

(A) The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

(1) Failure to meet any of the application requirements of Title 28-B or this rule;

(2) Failure to comply with any provisions of Title 28-B or the rules governing the adult use cannabis program, or any applicable state or local law, rule or regulation; or

(3) Failure to comply with any special terms, consent decree or conditions placed upon previously issued licenses pursuant to an order of the Department, the municipality, town, plantation, county commission, or Maine Land Use Planning Commission with jurisdiction over the area where the cannabis establishment is located.

(B) Denial of an application pursuant to 28-B MRS § 206 is final agency action as defined in 5 MRS § 8002(4). The Department shall notify the applicant in writing of the applicant’s right to appeal the denial to the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

§ 9 - Specified Event Permits for Retail Sales Outside the Licensed Premises of a Licensed Cannabis Store.

(1) Specified Event Permit and Individual Identification Cards Required.

(A) A specified event permit issued by the Department is required by any cannabis store licensee that conducts sales of adult use cannabis or cannabis products at a fixed location outside the licensee’s licensed premises at a specified event.

(B) Any individual conducting sales of adult use cannabis or cannabis products on behalf of a cannabis store licensee at a specified event; and any individual engaged in the transfer or transportation of adult use cannabis or cannabis products at, to, or from the specified event; and any individual with access to the limited access areas of the permitted premises for a specified event shall possess and display a valid individual identification card at all times.

(2) Application for a Specified Event Permit. A cannabis store licensee that intends to conduct off-premises sales to consumers of cannabis or cannabis products at a specified event must first obtain from the Department a permit to conduct sales at the specified event during a particular period. Nothing in this rule shall be construed to require the organizer of a specified event, any private property owner where the specified event will occur, or the municipality where the specified event will occur, to permit the sale of adult use cannabis or cannabis products. Nothing in this rule shall be construed to prohibit a municipality from restricting the sale of certain adult use cannabis or cannabis products at a specified event.

(A) Prior to submitting to the Department an application for a specified event permit, a cannabis store licensee shall obtain, on forms provided by the Department, as applicable:

(1) Written authorization from the owner of any private property where the specified event will occur; and

(2) Written authorization from the municipality where the specified event will occur. A licensee must submit a request for authorization from a municipality not less than 45 days prior to the first day the licensee intends to conduct retail sales to adult use consumers at a specified event.

(B) A cannabis store licensee that intendsto conduct off-premises sales to consumers of cannabis or cannabis products at a specified event shall submit a complete permit application to the Department not less than 30 days prior to the first day the licensee intends to conduct retail sales to adult use consumers at a specified event. A complete application, on forms provided by the Department, shall include, as applicable:

(1) Proof of municipal authorization to conduct off-premises sales at the specified event;

(2) The location and description of the specified event including:

(a) The date(s) and time(s) of the event;

(b) The date(s) and time(s) the licensee intends to sell adult use cannabis and cannabis products at the specified event; and

(c) The name and description of the organization sponsoring the event.

(3) Written authorization from the owner of any private property where the specified event will occur, if applicable;

(4) A description of the adult use cannabis and cannabis products the licensee intends to sell at the specified event;

(5) The number of employees that will be required to work at the specified event;

(6) A diagram and description of the permitted premises for the specified event including a diagram of the specified event that indicates where the permitted premises will be located and an indication of any areas at the specified event that will be designated for attractions or activities primarily for the benefit of minors;

(7) A diagram and description of the security measures the cannabis store intends to implement on the permitted premises to prevent unauthorized access to adult use cannabis and cannabis products, including measures to prevent unauthorized access to the permitted premises by minors and plans for securing cannabis inventory during the specified event; and

(8) A nonrefundable $200 permit application fee.

(3) Permit Application Review, Issuance or Denial of a Specified Event Permit and Changes to Application Materials.

(A) Within 14 calendar days of receipt of a complete permit application, the Department shall review the application materials and either:

(1) Issue a specified event permit to the licensee that shall be effective for the dates provided in the licensee’s application; or

(2) Deny the issuance of a specified event permit to the licensee.

(B) The Department may deny an application for a specified event permit for good cause as defined in 28-B M.R.S. § 206(2).

(C) An applicant that makes changes to any information included in the permit application shall submit an application for an updated permit and shall not make any such changes until the application for an updated permit is approved in writing by the Department.

(4) Appeals. An applicant may appeal an application denial pursuant to the Maine Administrative Procedure Act, 5 MRS, chapter 375.

§10 - License Renewal.

(1) Annual Renewal.

(A) Active licenses must be renewed on an annual basis. At the time of renewal the licensee must demonstrate or otherwise confirm continued compliance with all applicable licensing criteria in accordance with 28-B MRS and the rules governing the adult use cannabis program.

(B) An annual inspection by the Department may be required for renewal of a cannabis establishment license.

(C) A license shall not be renewed by the Department if:

(1) Outstanding fines or penalties are owed to the Department, unless a plan for payment of those fines has been agreed to and approved, in writing, by the Department, prior to the expiration of an active license;

(2) The licensee has not engaged in licensed activity at the licensed premises for a period of 1 year or more, unless the licensee submits evidence of reasonable justification, including without limitation death, illness, natural disaster, or other circumstances beyond the licensee’s control;

(3) Renewal will result in any person having a direct or indirect financial interest in:

(a) More than 3 cultivation facility licenses;

(b) Multiple cultivation facility licenses with a combined total licensed amount of plant canopy exceeding 30,000 square feet, except when that exceedance is solely attributable to approved increases in the maximum licensed area of plant canopy authorized under a tier 4 cultivation facility license pursuant to 28-B MRS §304; or

(c) A testing facility license or sample collector license if the applicant or licensee is a caregiver or a registered caregiver or has an equity ownership interest or a partial equity ownership interest or any other type of financial interest, including but not limited to, being an investor or serving in a management position in a registered dispensary, a cultivation facility license, a products manufacturing facility license or a cannabis store license.

(D) The Department shall notify all licensees of the duty to renew no later than 90 days prior to the expiration date of an active license.

(E) In conjunction with license renewal, a tier 1, tier 2, tier 3 or tier 4 cultivation facility licensee may apply for a change in the tier of cultivation facility license.

(1) The Department may approve the application, subject to:

(a) Submission of revised facility plan;

(b) Payment of any requisite fee(s) in accordance with 18-691 CMR, ch. 10, § 2;

(c) If the application is to increase the plant canopy, demonstration that 85% of adult use cannabis cultivated by the licensee at its cultivation facility was sold over the current period of licensure; and

(d) Compliance with total canopy limits.

(2) If the licensee does not meet the criteria for a tier of cultivation facility license authorizing a greater area of plant canopy, but otherwise meets the requirements for renewal, the Department may renew the license at the existing tier.

(F) In conjunction with license renewal and no more frequently than once every 2 years, a tier 4 cultivation facility licensee may apply for an increase of up to 7,000 square feet in plant canopy area.

(1) The Department may approve the application, subject to:

(a) Submission of revised facility plan, including an updated cultivation plan;

(b) Payment of any requisite fee(s) in accordance with 18-691 CMR, ch. 10, § 2;

(c) Licensee demonstration that 85% of adult use cannabis cultivated by licensee at its cultivation facility was sold over the past 2-year period of licensure; and

(d) Compliance with total canopy limits.

(2) If the licensee does not meet the criteria for a greater plant canopy, but otherwise meets the requirements for renewal, the Department may renew the license with the existing plant canopy area.

(G) A products manufacturing facility engaged in extraction using inherently hazardous substances shall submit proof that a professional engineer licensed in Maine has inspected and certified, within 24 months of the date the licensee submits an application for renewal of its license, that the product manufacturing facility’s storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems continue to be adequate. Such inspection and certification may be conducted remotely as appropriate.

(H) The licensee shall submit proof that the licensee is still in good standing with MRS.

(1) For all licensees, an active Sales and Use Tax Account Identification Number, and no tax delinquencies associated with that Sales and Use Tax Account Identification Number.

(2) For cultivation facility licensees, an active Excise Tax Identification Number, and no tax delinquencies associated with that Excise Tax Identification Number.

(3) For all licensees, a list of all Sales and Use Tax Account Identification Numbers and Excise Tax Identification Numbers associated with any related cannabis establishment in Maine and no tax delinquencies associated with those numbers.

(I) The licensee shall submit proof, through a renewed local authorization certification form, that the licensee is still in compliance with all requisite local permits and licenses and is in good standing with the municipality or other local entity wherein the licensee’s facility is located.

(J) The licensee shall submit proof of any material changes from the prior year’s application, including, but not limited to, any changes related to ownership or direct or indirect financial interest holders that did not require prior approval or notification to the Department, including without limitation those changes in ownership that resulted from an employee obtaining an interest in the license through an ESOP or those changes in ownership that resulted in a person obtaining an ownership interest in the license of less than 5%.

(2) Continued Authority.

(A) The Department shall make every effort to approve license renewals in a timely manner.

(B) A licensee that has submitted a timely complete renewal application by the deadline given by the Department shall be permitted to continue operations if the licensee is not required, or if the licensee is a business entity, no principal of the business entity, is required, pursuant to this rule and 28-B MRS, to report information, including criminal convictions or enforcement actions, that could affect continued eligibility.

(C) A cultivation facility may not increase its mature plant canopy beyond the limits of its type of license before receiving approval from the Department.

(D) Any application for change in ownership or control that results in any new person obtaining an ownership interest in the license of 5% or more, or an existing person increasing their ownership interest in the license to 5% or more, must be approved by the Department and is not considered a renewal application.

(3) Application Processing for an Active License Renewal. An application for an active license renewal is considered incomplete until the Department is in possession of all required forms, supplemental information, criminal history record checks and any other requirements of the rules governing the adult use cannabis program. If, in the course of processing the application, the Department discovers that any required forms, supplemental information or criminal history record checks are incomplete, the Department may ask the applicant to supply the missing information. The Department shall, however, avoid unreasonable delays in the case of inadvertent omission of material that is not central to its review of the merits of the application for a conditional license or active license for a sample collector.

(4) Application for an Active License Renewal Review.

(A) For the purposes of processing applications for active license renewals, the Department, pursuant to 28-B MRS § 209, shall apply an objective standard to determine whether an applicant has satisfied the cannabis establishment licensing requirements, specifically the satisfaction of general licensing criteria and the submission of all required documents, forms and fees and the subsequent issuance of provisional and active licenses.

(B) Upon receipt and review of a complete application for an active license renewal, the Department shall, as applicable:

(1) Deny the license application;

(2) Issue a renewable active license for a cultivation facility, products manufacturing facility, sample collector, testing facility or cannabis store valid for up to one year; or

(3) Issue an active license for a sample collector valid for one year.

(5) Payment of Fees. Before issuing an active license renewal, the Department shall invoice the licensee for the license fee and, if applicable, a late renewal application fee, as determined by the Department pursuant to Title 28-B and 18-691 CMR, ch. 10, § 2. The Department shall not accept any license fees except pursuant to such invoice. The Department may not refund any license or other fees, regardless of the circumstances.

(6) Denial.

(A) The Department may deny an application for license renewal. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial, including but not limited to:

(1) Failure to submit a complete application for renewal, including, as applicable, submission of any required updated plans of record;

(2) Failure to pay any outstanding fine or fee required by the Department;

(3) The licensee did not obtain required approval from the Department prior to implementing an applicable change of ownership or control;

(4) The licensee is subject to an ongoing investigation by the Department;

(5) The licensee has not engaged in licensed activity at the licensed premises for a period of one year or more without providing evidence of a reasonable justification for the lapse in licensed activity;

(6) Renewal of the license would result in any person having an impermissible direct or indirect financial interest described in section 10(1)(C)(3) above; or

(7) Failure to obtain local authorization.

(B) An applicant may appeal a renewal application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

§11 - Application for Relocation of Licensed Premises.

A licensee shall request approval from the Department of any relocation of any cannabis establishment for which local authorization is required, even if the move is entirely within a premise in the control of the licensee. This includes without limitation, as applicable: expansion, movement of a greenhouse or changes to co-location of multiple establishment types. Nothing in this section shall be interpreted to require prior approval of the relocation of an establishment not requiring local authorization, including a sample collector.

(1) Conditional Relocation of Licensed Premises Approval.

(A) Before seeking local authorization, the licensee must inform the Department, in writing, of its application for relocation of licensed premises.

(1) All licensees must submit an updated facility plan and proof of compliance with all applicable permitting requirements.

(2) All cultivation facilities must submit a revised cultivation plan.

(B) The Department shall, within 30 days, issue a decision, in writing, on the application for relocation of licensed premises.

(1) The Department may deny an application for relocation of the licensed premises if the licensee has not submitted updated plans of record;

(2) The Department may deny an application for relocation of the licensed premises if the licensee has not paid any fine or fee required by the Department; and

(3) The Department may deny an application for relocation of the licensed premises during the pendency of an investigation of the licensee by the Department.

(C) All licensees must then obtain, as applicable, local authorization.

(D) The relevant authority must submit a local authorization form to the Department.

(2) Updated License.

(A) Within 10 days of receiving authorization on the local authorization form, the Department shall notify the licensee and issue an updated license with the new address. The license shall have the same expiration date as the one it replaces.

(B) A cannabis establishment may operate at the new location only after receiving the updated license from the Department.

(C) After receiving the updated license, the cannabis establishment may conduct activity concurrently at both locations, subject to the following limitations:

(1) The licensee shall provide the Department with timeline of planned relocation not to exceed 90 days;

(2) From the moment the licensee transfers any cannabis or cannabis products in any form to the new location, the licensee has no more than 90 days to cease all activities at the old location. During the period of transfer, the licensee may not begin any new operations in the old location;

(3) From the moment the licensee sells or otherwise transfers cannabis or cannabis products in any form to the new location, the licensee may no longer sell or transfer cannabis or cannabis products in any form at the old location, except to transfer the cannabis or cannabis products to the new location;

(4) The licensee shall notify the Department in writing when it has ceased operations at the old location; and

(5) During the period of transfer, limits of the number of plants or size of the plant canopy shall be calculated by combining the total amount of plants at both the old and new location.

(3) Relocation with Any Change in Ownership Interests. When a licensee proposes both a relocation and any change in ownership interests that results in any new person obtaining an ownership interest in the license of 5% or more, or an existing person increasing their ownership interest in the license to 5% or more, the licensee shall be required to fulfill all requirements of an application for a new license, and the Department shall evaluate the application de novo.

(4) Denial. The Department may deny an application for relocation of licensed premises for failure to comply with this section. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial.An applicant may appeal an application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

§12 - Transfer of Ownership and/or Change of Principal(s).

(1) Department Approval Required. A licensee may transfer ownership and/or controlling interests, including without limitation partial ownership, that results in any new person obtaining, or an existing person increasing, an ownership interest in the licensee equal to or greater than 5%, only after the application for a transfer of ownership or controlling interests has been approved by the Department. Ownership or controlling interests include all equity ownership interests as defined in 18-691 CMR, ch., 10, § 1, and all principals. This section applies, without limitation, to any change in principals. A licensee is not required to file an application for the transfer of ownership or controlling interests for the purpose of reporting transfers to employees whose ownership or controlling interests vested during the term of the license through an ESOP disclosed on the licensee’s application for an active license or renewal, so long as such a transfer is not made to a person who is not an employee of the licensee and any such transfer does not result in an ownership or controlling interest in excess of the amount of ESOP-designated shares reported on the licensee’s application for a license.

(A) An application for the transfer of ownership or controlling interests must:

(1) Be completed on forms made available by the Department;

(2) Be submitted to the Department;

(3) Be accompanied by any applicable fees described on the application form; and

(4) Be accompanied by all required forms and supplemental information, provided by the person or entity seeking to assume an ownership interest, similar to that required in an application for a cannabis establishment license, to demonstrate compliance with all applicable requirements for licensure.

(B) Fingerprinting and criminal history record checks in accordance with this rule are required for anyone proposed as a principal.

(C) If the municipality or Maine Land Use Planning Commission requires notice and approval of transfers of ownership pursuant to its local authorization, the licensee must request and the municipality or the Maine Land Use Planning Commission, as applicable, must submit the local authorization form.

The Department may deny an application for transfer of ownership interests if:

(1) The Department determines that any proposed ownership interest is not permitted under 28-B MRS or this rule;

(2) The licensee has not paid any fine or fee required by the Department; or

(3) The Department is engaged in an ongoing investigation of the licensee.

(2) Notice Required. The following changes require notice to the Department:

(A) Notice and Individual Identification Cardholders. Before any new principal, contractor, or consultant as defined in 18-691 CMR, ch. 10, § 1 may associate with a licensee, the licensee shall comply with 28-B MRS § 213.

(B) Notice and Assessment. For any financial interest that does not require prior approval or notice as above, the licensee shall notify the Department prior to the beginning of that association and the Department will consider whether the interest has been appropriately characterized and whether 28-B MRS § 205(2) is implicated.

(C) Notice of Termination and Changes. The licensee shall notify the Department within 5 business days of the termination of any direct or indirect financial interest, and of any significant change to the nature or extent of that interest.

(3) No Prior Notice Required. Without prior notice to and approval by the Department, licensees may employ and contract with any persons who clearly do not fall within the definition of those with direct or indirect financial interests in the licensee or principals of the licensee, for the operation of a cannabis establishment, so long as each such person has a valid individual identification card. Employment of an employee having a direct or indirect financial interest in the license solely through an ESOP as defined in 18-691 CMR, ch. 10, § 1 does not require prior notice or approval by the Department provided that the licensee appropriately reports the ESOP, by reporting annually on forms provided by the Department, the name of any person holding an equity interest in the licensee through an ESOP. Compensation for such persons must not be structured as a means of evading the provisions of this rule. As employers, licensees are required to follow all applicable local, state and federal employment laws. including, without limitation, laws pertaining to workplace safety, hours and wages, and all other laws pertaining to the employment of persons in the State of Maine. Nothing in this rule shall be construed to exempt a cannabis establishment from the rights and responsibilities associated with being an employer.

(4) Temporary Appointee. Ownership or operations generally may not be transferred to a person or business entity prior to the approval of an application for transfer of ownership interests. However, in cases of death, disability, bankruptcy or other exceptional circumstances, a court may appoint a receiver, personal representative, executor, administrator, guardian, conservator, trustee or similarly situated person to take possession of, operate, manage, control, or wind down a licensee’s operations. In the absence of such a court appointment, the Department may approve a temporary appointee to take possession of, operate, manage, control or wind down a licensee’s operation. Under such circumstances:

(A) The court appointee or temporary appointee may assert a financial and management interest in a cannabis establishment upon certification to the Department that the person is 21 years of age and has no disqualifying drug offenses.

(B) No court appointee or temporary appointee may enter a limited access area, sell or otherwise transfer cannabis or cannabis products without a valid individual identification card.

(C) No person may use the tracking system until authorized by the Department.

(D) If appointed by the court, the person shall submit application for transfer of ownership interests as soon as practical, and in no case more than 45 days after a qualifying event.

(E) If approved as a temporary appointee by the Department in the absence of a court appointment, the licensee shall submit a plan of temporary appointment, on forms made available by the Department, as soon as practicable, and in no case more than 60 days after the qualifying event.

(5) Denial. The Department may deny an application for transfer of ownership interests for failure to comply with this section. The Department shall notify the applicant in writing of the denial and the good cause basis for the denial.An applicant may appeal an application denial to the Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

Fiscal impact note, included pursuant to 5 MRS § 8063: The Department estimates that the changes implemented by this rulemaking will have a de minimus fiscal impact on municipalities and counties.

ACCESSIBILITY CHECK: July 7, 2025

Effective July 1, 2025, individual identification cards, and renewals thereof, shall be valid for two years from the date of issuance. ↑

Chapter 30 Compliance Rules for Adult Use Cannabis Establishments

Code Me. R. 18-691 Ch. 30 – Compliance and Enforcement {#sec-18-691-ch.-30 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 30}

§1 - General Compliance

(1) Premises

(2) Security

(3) General Conduct

(4) Adherence to Written Plans Approved by the Department

(5) Requirements Applicable to Cultivation Facilities

(6) Requirements Applicable to Testing Facilities

(7) Requirements Applicable to Products Manufacturing Facilities

(8) Requirements Applicable to Cannabis Stores and Nursery Cultivation Facilities

(9) Requirements Applicable to the Delivery of Adult Use Cannabis or Cannabis Products by Tier 1, Tier 2, or Nursery Cultivation Facilities and Products Manufacturing Facilities

(10) Requirements Applicable to Sample Collectors

(11) Recordkeeping Requirements for Sample Collection, Transport and Receipt

§2 - Tracking, Transportation and Authorized Transfers

(1) General Tracking Requirements

(2) Transportation

(3) Returns of Cannabis and Cannabis Products

(4) Retention of Business Records

§3 - Advertising

(1) Prohibitions

(2) Websites

(3) Required Statements

(4) Branding and Logos

(5) Objectionable and Non-Conforming Advertising

(6) Voluntary Sign, Advertising and Marketing Review

(7) Approval or Rejection of Submitted Signs, Advertising or Marketing

(8) Marketing Between Licensees and Employee Samples

§4 - Waste Management

(1) Hazardous Waste

(2) Cannabis Waste

(3) Cannabis Waste Exceptions

(4) Wastewater

(5) Reducing Packaging Waste

§5 - Packaging and Labeling

(1) General Packaging and Labeling Requirements for Retail Sale

(2) Packaging and Labeling of Trade Samples

(3) Packaging and Labeling for Retail Sale of Inhaled Cannabis Products

(4) Packaging and Labeling for Retail Sale of Edible Cannabis Products

(5) Packaging and Labeling for Retail Sale of Topical Cannabis Products

(6) Packaging and Labeling for Retail Sale of Cannabis Seeds

(7) Packaging and Labeling of Samples Collected by a Licensee

(8) Packaging and Labeling for Storage by a Cannabis Establishment

§6 - Enforcement

(1) Department Enforcement Authority

(2) Administrative Monetary Penalties

(3) Major License Violations Affecting Public Safety

(4) Major License Violations

(5) Minor License Violations

(6) License Restriction, Suspension, Revocation and Voluntary Surrender

(7) Destruction and Voluntary Surrender of Cannabis Plants, Cannabis and Cannabis Products

(8) Audit, Compliance and Random Testing

(9) Seizure or Confiscation of Cannabis, Cannabis Concentrate or Cannabis Products

(10) Cannabis Recalls

Chapter 30 - Compliance and Enforcement

The terms used in this rule are defined in and governed by the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR, ch. 10. The administration of this rule and the other rules governing the Adult Use Cannabis Program are also governed by 18-691 CMR, ch. 10. All applicants, licensees and individual identification cardholders that are authorized to conduct activities pursuant to licenses or individual identification cards issued pursuant to the Rules for the Licensure of Adult Use Cannabis Establishments , 18-691 CMR, ch. 20, shall also at all times comply with the requirements of Title 28-B of the Maine Revised Statutes and this, and the Rules for the Testing of Adult Use Cannabis , 18-691 CMR, ch. 40; as well as the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5 and any other applicable local, state or federal laws or regulations. Collectively, 18-691 CMR, chapters 5, 10, 20, 30, and 40 are the “rules governing the adult use cannabis program”.

§1 - General Compliance.

( 1) Premises. Only activities authorized by the rules governing the adult use cannabis program, 18-691 CMR, chapters 5, 10, 20, 30, and 40, and 28-B MRS may be conducted on the licensed, or as applicable permitted, premises. No other activities besides those authorized by the rules governing the adult use cannabis program and 28-B MRS may be conducted at any time on the licensed or permitted premises, including without limitation: sampling events, catered events, specified events, retail sales by delivery to consumers, or parties.

(A) Controlling Entry to Cannabis Establishments and Permitted Premises for a Specified Event.

(1) In accordance with 28-B MRS § 507 , cannabis establishments must design entry points so that no minor is allowed entry to the premises of:

(a) A cultivation facility, products manufacturing facility, or cannabis testing facility except in the event of an emergency, in which case the minor must be accompanied by their parent, guardian or custodian. For the purposes of this paragraph “emergency” means a serious and unexpected situation that requires immediate action to prevent or mitigate damage to, or destruction of, inventory, equipment or the licensed premises of a cannabis establishment, or a medical emergency. A licensee shall notify the Department within 48 hours of an emergency that necessitated a minor accompanying their parent, guardian or custodian into the facility.

(b) A cannabis store unless accompanied by their parent, guardian or custodian. A minor who accompanies an adult use consumer into the licensed premises of a cannabis store does so for the convenience of the parent, guardian or custodian they are accompanying and under no circumstances may be considered a customer of the cannabis store.

(2) A minor that enters the premises of a licensed cannabis establishment must be under the supervision of their parent, guardian or custodian at all times within the licensed premises. Under no circumstances may a minor be permitted in any limited access area of a cannabis store, nor may a minor be permitted to touch or handle cannabis or cannabis products, or equipment used in the cultivation or manufacture of cannabis or cannabis products, within any licensed cannabis establishment. Nothing in this section shall be construed to require a licensee to permit entry of minors into any licensed cannabis establishment.

(3) All cannabis establishments must designate in the facility plan of record the specific place at which the licensee will:

(a) Require authorized contractors or other visitors to sign the visitor entry log before entering limited access areas; and

(b) Receive mail and other deliveries, including deliveries of cannabis and cannabis products, if applicable.

(4) A cannabis store licensee shall verify that any individual who enters the cannabis store and appears to be a minor is either:

(a) At least 21 years of age; or

(b) Accompanying their parent, guardian or custodian.

(5) A cannabis store licensee shall not permit any minor to loiter within the licensed premises of the cannabis store. A cannabis store licensee may not sell cannabis, cannabis products or cannabis paraphernalia to a consumer if the licensee reasonably suspects the consumer is making the purchase for a minor.

(6) Nursery cultivation facilities and cannabis stores must designate specific places at which an employee or licensee will check for a valid government-issued form of identification to verify the age of any consumer before completing a retail sale at the licensed or permitted premises, in compliance with §1, sub-§ 8 of this rule.

(7) Entry points must be designed so as not to enable a minor to handle cannabis or cannabis products.

(B) Access to Adults Aged 21 or Older.

(1) Cannabis stores and nursery cultivation may allow access to individuals who are at least 21 years of age for the following purposes:

(a) Consultations between employees and adult customers;

(b) Distribution of printed materials about cannabis;

(c) Sales or returns of products that may be legally sold by the licensee to the consumer after verifying the age of the consumer; and

(d) Customer restrooms, if provided.

(2) A cannabis store conducting sales to consumers of adult use cannabis or cannabis products at a specified event may allow access to the permitted premises for a specified event by individuals at least 21 years of age for the following purposes:

(a) Consultations between employees and adult customers;

(b) Distribution of printed materials about cannabis; and

(c) Sales or returns of products that may be legally sold by the licensee to the consumer after verifying the age of the consumer.

(3) A cannabis establishment may not allow the purchaser of cannabis or cannabis products, and as applicable, any minor accompanying the purchaser, to consume cannabis or cannabis products on the premises.

(4) A cannabis testing facility may designate on its facility plan a portion of the premises where it will receive samples for non-mandatory testing from licensees, persons 21 years of age or older, and/or qualifying patients, caregivers, registered caregivers or registered dispensaries in accordance with 28-B MRS §§ 503 and 503-A and the rules governing the adult use cannabis program.

(C) Limited Access Areas.

(1) Limited access areas include, but are not limited to:

(a) Areas in cultivation facilities in which mature cannabis plants, mother plants, immature plants or seedlings are grown; or cannabis is cut, stored, trimmed, cured or otherwise cultivated; cannabis is packaged for transfer; cannabis or cannabis products for retail sale to consumers by delivery is stored or prepared for delivery; or cannabis waste is stored or processed.

(b) Areas in testing facilities in which cannabis or cannabis products are received, stored, handled, tested, transferred or discarded.

(c) Areas in cannabis product manufacturing facilities in which cannabis or cannabis concentrate is received, stored, combined with other ingredients or otherwise manufactured; cannabis products are stored, cooled, cut, packaged or labeled; cannabis or cannabis products are refrigerated; cannabis or cannabis products for retail sale to consumers by delivery is stored or prepared for delivery; or cannabis waste is discarded or destroyed.

(d) Areas in cannabis stores in which a person would be able to touch or handle cannabis or cannabis products, including point of sale areas intended for employees only.

(2) Any other area that is used to cultivate, store, weigh, manufacture, package or otherwise prepare for sale adult use cannabis and adult use cannabis products is also considered a limited access area.

(3) It is the sole responsibility of the licensee to control access to limited access areas and limit access only to the following persons:

(a) The establishment’s owners, managers or employees who are displaying a valid individual identification card issued to that person; and valid individual identification card holders making deliveries to or receiving transfers of cannabis or cannabis products from the licensee; and registry identification cardholders (except any registry identification cardholder who is a minor) making deliveries to or receiving transfers from the licensee as authorized for co-located adult use cultivation or products manufacturing facilities;

(b) In the event of an emergency as defined in § 1(1)(A)(1)(b) above, the minor children of an individual identification cardholder who is the parent, guardian or custodian of the minor children;

(c) Sample collectors who are displaying a valid individual identification card issued to that person;

(d) Employees of a testing facility who are displaying a valid individual identification card issued to that person;

(e) Contractors or other authorized visitors aged 21 or older (including, but not limited to, electricians, plumbers, engineers, alarm technicians or attorneys) and local, state or federal elected officials who will not handle cannabis plants, cannabis or cannabis products, in compliance with this subsection;

(f) Staff or agents of the Department;

(g) Law enforcement officers; and

(h) Employees or agents of other local or state agencies with regulatory authority, including but not limited to fire marshals, electrical inspectors, pesticide control staff, and environmental inspectors.

(4) Staff or agents of the Department, and employees or agents of local or state agencies with regulatory authority shall provide proof of identification but shall not be considered visitors and shall not be denied entry to any area of the premises.

(5) Security.

(a) Nurseries and cannabis stores that make sales of cannabis plants, cannabis or cannabis products to persons 21 years of age or older shall use identification checks, locked doors, video surveillance, counters, and locked displays, in accordance with their Department-approved security plan, included in the licensee’s facility plan of record, and as applicable, a cannabis store licensee’s application for a specified event permit, to prevent unauthorized entry to limited access areas. Use of these security measures does not relieve a nursery or cannabis store licensee from its responsibility to ensure that it is not aiding or assisting in the procurement, furnishing, selling or delivery of cannabis or cannabis products to a minor.

(b) Other licensees shall use identification checks, locked doors, and video surveillance, in accordance with their Department-approved security plan, to prevent unauthorized entry to limited access areas.

(c) Any security breaches must be reported within 24 hours, in writing, to the Department.

(6) Required Signage.

(a) All areas of ingress and egress to limited access areas on the premises shall be clearly identified by posting a sign which shall be no smaller than 8.5 inches high and 11 inches wide, composed of letters not less than a half inch in height, which shall state: “Pursuant to State Law: Do Not Enter – Authorized Persons Only.”

(b) If a person must pass through a limited access area to reach other limited access areas, and there is no other route through which a person can gain access to the subsequent limited access areas, then signage must only be posted on the first limited access area through which a person must pass.

(7) Contractors and other authorized visitors.

(a) Contractors and other authorized visitors who will not handle cannabis plants, cannabis or cannabis products, including but not limited to electricians, plumbers, engineers, alarm technicians, attorneys, local, state or federal elected officials, and any other individual who is at least 21 years of age who is not an employee or principal of the licensee, do not require an individual identification card.

(b) A contractor or other authorized visitor may enter a limited access area only if wearing a visitor identification badge, signed in and recorded on a visitor entry log.

(c) At all times while in a limited access area, the visitor shall display in a conspicuous place on their person a visitor identification badge.

(i) The visitor identification badge must display an identifying mark, which may be a clearly identifiable letter, number or symbol or combination thereof.

(ii) The visitor identification badge may be displayed on a sticker, a card on a lanyard, a card pinned to the clothing of the visitor, or by other effective means.

(d) A visitor entry log must include, at a minimum:

(i) The date and time of the visitor’s entry;

(ii) The date and time of the visitor’s departure;

(iii) The full name of the visitor;

(iv) The identifying number of the visitor’s state- or federally-issued identification;

(v) The identifying mark on the visitor identification badge; and

(vi) The purpose for which the visitor is accessing the limited access area[s].

(e) At all times while in a limited access area, the visitor shall be accompanied by an individual identification cardholder who is a principal or employee of the licensee, except that a contractor who is engaged in maintenance activities in the limited access area is not required to be accompanied by an individual identification cardholder at all times during maintenance activities.

(2) Security. Cultivation facilities, testing facilities, products manufacturing facilities, and cannabis stores must provide adequate security at the licensed premises, and as applicable for sales at a specified event, the permitted premises. This section does not apply to sample collectors.

(A) Mandatory Requirements for Cultivation Facilities, Testing Facilities, Products Manufacturing Facilities and Cannabis Stores. As applicable, cannabis establishments must enact security measures to prevent the diversion of cannabis or cannabis products that are being cultivated, manufactured, tested, packaged, stored, displayed or transported.

(1) Lighting.

(a) Any gate or perimeter entry point of a cannabis establishment, and the entirety of the permitted premises for a specified event, must have lighting sufficient for observers to see, and cameras to record, any activity within 10 feet of the gate or entry and within the permitted premises for the specified event.

(b) A motion detection lighting system may be employed to light required areas in low-light conditions.

(2) Doors and windows.

(a) Commercial grade locks, appropriate for facilities requiring high levels of physical security, are required on all perimeter entry doors and on all doors separating limited access areas from areas open to visitors and customers.

(b) All external entrances to indoor facilities on the licensed premises must be able to be locked.

(c) All perimeter windows must be in good condition and lockable.

(3) Alarm system.

(a) Monitored sensors are required on all perimeter entry points and perimeter windows, except that perimeter windows may be protected by appropriately located motion sensors.

(b) Alarm systems must be monitored by a licensed security company capable of contacting the licensee and, if necessary, law enforcement.

(c) The system must include an audible alarm, which must be capable of being disabled remotely by the security company.

(4) Video surveillance.

(a) Placement and coverage of cameras shall be sufficient:

(i) Cameras must be permanently fixed inside each entry/exit point (perimeter and limited access area) to allow identification of persons entering the licensed or permitted premises and limited access areas, except that all required cameras for a specified event shall be securely affixed to any structure used to fully enclose the perimeter of the permitted premises.

(ii) Cameras must be permanently fixed outside each entry/exit point (perimeter and limited access area) to allow identification of persons exiting the licensed or permitted premises and limited access areas, except that all required cameras for a specified event shall be securely affixed to any structure used to fully enclose the perimeter of the permitted premises.

(iii) A sufficient number of cameras must be permanently fixed to allow the viewing, in its entirety, of any area where cannabis, cannabis plants, immature cannabis plants, seedlings, seeds, cannabis concentrate or cannabis products are cultivated, manufactured, stored or prepared for transfer or sale or where samples for mandatory testing are collected, and prepared and sealed for transport to a cannabis testing facility;

(1) Except that outdoor cultivation areas must have only a sufficient number of cameras permanently fixed to allow the viewing of the entirety of the perimeter of the cultivation area inside of the exterior fence;

(2) Indoor cultivation areas, including each grow room and each drying room, must have only a sufficient number of cameras permanently fixed to allow the viewing of all points of ingress and egress to and from the cultivation area; and

(3) All required cameras for a specified event shall be securely affixed to any structure used to fully enclose the perimeter of the permitted premises

(iv) A sufficient number of cameras must be permanently fixed to allow the viewing, in its entirety, of any area where cannabis waste is stored before being made unusable, or where cannabis waste is made unusable, except that all required cameras for a specified event shall be securely affixed to any structure used to fully enclose the perimeter of the permitted premises.

(v) A camera must be permanently fixed at each point of sale to ensure identity of the purchaser, except that all required cameras for a specified event shall be securely affixed in such a manner as to limit the capture of only the transaction and the purchaser.

(vi) A sufficient number of cameras shall be permanently fixed to allow recording of all transactions conducted in areas designated by a cannabis store for curbside pickup by customers, including any areas not included in the licensed premises of the cannabis store but immediately adjacent to the primary public ingress and egress of the cannabis store where the cannabis store intends to conduct curbside pickup by consumers.

(1) Any curbside pickup location outside the licensed premises must be in a place designated for parking or standing and capable of being entirely within the view of cameras permanently fixed to the exterior of the licensed premises where such cameras can clearly capture the entirety of the transaction conducted via curbside pickup.

(vii) A sufficient number of cameras shall be permanently fixed to allow recording of all areas outside of the premises within 10 feet of the exterior fence and gates of a cultivation facility with outdoor growing.

(viii) Cameras, either mobile or fixed, must be maintained to allow recording of all transactions conducted via delivery. Cameras recording sales via delivery must be sufficient to record the entirety of the transaction and to ensure identity of the purchaser.

(b) Video surveillance shall meet the following minimum requirements:

(i) Minimum camera resolution is 720p.

(ii) System storage and cameras are internet protocol (IP) compatible.

(iii) All cameras must record continuously twenty-four hours per day or be motion activated and at a minimum of 15 frames per second.

(1) Motion activated video storage must capture and store footage for no less than 120 seconds prior to motion activation and 120 second following the cessation of motion.

(iv) All recorded images must clearly and accurately display the time and date. Time is to be measured in accordance with the U.S. National Institute Standards and Technology standards.

(v) The surveillance system storage device must be secured on the licensed premises of a cannabis establishment in a lockbox, cabinet or closet, or must be on a third-party server or secured in another manner to protect from employee tampering or criminal theft.

(vi) Surveillance equipment used to record deliveries or permitted premises at a specified event shall be secured when not in use and recordings shall be uploaded to the surveillance system server, including if applicable, a third-party cloud-based server, within 24 hours of the recording.

(vii) Video surveillance is not intended to include the use of any computer software or application that performs facial surveillance as defined by 25 MRS § 6001 (1) (D) and (E).

(c) All surveillance recordings, including recordings made of deliveries and the permitted premises at a specified event, must be kept for a minimum of 45 days on the licensee's recording device.

(d) All videos are subject to inspection by any Department employee and must be copied and provided to the Department upon request.

(e) Licensees shall maintain a list of all persons with access to video surveillance recording and procedures for controlling access to recordings.

(B) Fencing and Lighting Requirements for Cultivation Facilities. A cultivation facility that cultivates seedlings, immature plants, mother plants or mature plants in outdoor areas or in greenhouses or other structures that do not meet all security requirements for buildings must secure such cultivation areas with fencing and lighting.

(1) Any cultivation facility with cultivation areas that do not meet the requirements for building security shall erect secure fencing around such areas. Fencing and all gates must be secure, at least 6 feet high and obscure, or have a cover that obscures, the Limited Access Area from being readily viewed from outside of the fenced in area. Such fencing must be commercial or security grade, not agricultural or residential grade, and designed to prevent access to the cultivation area by unauthorized persons.

(2) Lighting shall be designed to sufficiently illuminate a perimeter of at least 10 feet around any point of entry, whether it is a gate or access from a building. A licensee may use motion sensor lighting in cultivation areas.

(C) Additional Security Measures. The licensee may choose to enact additional security measures to enhance the safety of the cannabis establishment and any permitted premises for a specified event. Any additional security measures implemented by a licensee are subject to the following requirements:

(1) Measures to prevent employee or contractor theft:

(a) Licensees may designate areas for employee and contractor storage of bags, overcoats and other belongings.

(b) Licensees may place limits on the size of bags to be brought to the cannabis establishment.

(c) Licensees may institute other reasonable procedures for checking for stolen cannabis or cannabis products when an employee or contractor leaves the premises.

(2) Security guards:

(a) Security guards are permitted but not required at cannabis establishments.

(b) Security guards employed or contracted by a licensee must:

(i) Meet all qualifications of 32 MRS, chapter 93;

(ii) Be at least 21 years of age;

(iii) Comply with all requirements of 32 MRS, chapter 93; and

(iv) Obtain and display individual identification cards if they will be in limited access areas or in a vehicle that is transporting cannabis plants, cannabis or cannabis products.

(c) Security guards must not consume cannabis or cannabis products or be intoxicated while performing any duties for a licensee.

(d) Licensees, employees and security guards must comply with all laws and regulations related to firearms and other weapons.

(D) Written Security Plan. Before cultivating, manufacturing, testing, selling, storing or transporting cannabis or cannabis products, each licensee shall receive Department approval of a written security plan, included in the licensee’s facility plan of record, demonstrating compliance with all requirements of the rules governing the adult use cannabis program.

(1) At a minimum, the security plan shall provide sufficient detail so that the Department may determine whether the following requirements are met:

(a) Lighting adequately illuminates entry and exit points;

(b) All doors and windows are lockable;

(c) Fences (if present) meet height and other requirements;

(d) Alarm sensors are present on all entry points and windows and are remotely monitored;

(e) Video cameras are present in all required locations;

(f) Video cameras and storage meet all required specifications; and

(g) In areas of the premises (if any) designated for retail sales, lockable and secure display cases or counters of sufficient height to prevent the public from handling or accessing cannabis plants, cannabis or cannabis products without direct supervision of a licensee or employee.

(2) Each licensee shall adhere to the security plan and submit to the Department an application for a change to a plan of record in accordance with § 1, sub-§ 4 of this rule. The Department may determine at any time that the revised security plan does not meet minimum requirements. Except in exigent circumstances, which must be communicated to the Department in 24 hours, a licensee may not make any material changes to security measures without prior approval of the Department.

(3) Material changes include, but are not limited to: the addition or removal of sensors or cameras; or changes to the location of sensors, cameras, points of entry or exit or points of sale or authorized transfers; changing security monitoring companies; and changes to lighting.

(4) A cannabis store licensee that applies for a permit to conduct sales of adult use cannabis and cannabis products at a specified event shall include in its application for a specified event permit a diagram and description of the security measures the cannabis store intends to implement on the permitted premises to prevent unauthorized access to adult use cannabis and cannabis products, including measures to prevent unauthorized access to the permitted premises by minors, including without limitation requiring consumers to present a valid, government-issued identification card that demonstrates that the consumer is at least 21 years of age, and plans for securing cannabis inventory during the specified event, including, but not limited to, sufficient information for the Department to determine whether the following requirements are met:

(a) A tent or other opaque structure fully encloses the perimeter of the permitted premises and has a single point of entry into the permitted premises;

(b) Lighting adequately illuminates entry and exit points;

(c) Video cameras are present in all required locations;

(d) Video cameras and storage meet all required specifications;

(e) In areas of the permitted premises designated for retail sales, lockable and secure display cases or counters of sufficient height to prevent the public from handling or accessing cannabis plants, cannabis or cannabis products without direct supervision of a licensee or employee; and

(f) All cannabis and cannabis products offered for retail sale at the permitted premises are secure for the duration of the specified event and will not be stored at the specified event at any time other than the opening hours of the specified event.

(3) General Conduct.

(A) General Requirements.

(1) Cannabis licensees are responsible for the operation of their licensed business in compliance with Maine Revised Statutes, Titles 28-B, 17-A, 36; the rules governing the adult use cannabis program; and any other applicable state laws and rules.

(2) Licensees and their employees must conduct business and maintain the licensed and any applicable permitted premises, surrounding area, and vehicles transporting product, in compliance with the following laws, as they now exist or may later be amended:

(a) Falsification in Official Matters, 17-A MRS, chapter 19;

(b) Offenses against Public Order, 17-A MRS, chapter 21;

(c) Drugs, 17-A MRS, chapter 45; and

(d) Motor Vehicles and Traffic, 29-A MRS.

(3) Licensees have the responsibility to control their conduct and the conduct of employees, customers, contractors and visitors on the licensed or permitted premises at all times. Licensees shall ensure that at all times during business hours, as applicable, and hours of apparent activity that there is, on-site, an individual identification cardholder authorized to cooperate with Department inspection of the premises and business records. Except as otherwise provided by law, licensees or employees may not:

(a) Be disorderly or visibly intoxicated by liquor, cannabis or controlled substances on the licensed or permitted premises;

(b) Permit any disorderly or visibly intoxicated person to remain on the licensed or permitted premises;

(c) Engage in or allow behavior on the licensed or permittedpremises that provokes conduct which presents a threat to public safety;

(d) Engage in, or permit any employee or other person to engage in, conduct on the licensed or permitted premises that is prohibited by any portion of 28-B MRS, 17-A MRS or 36 MRS; any part of the rules governing the adult use cannabis program; or any other applicable state laws and rules; or

(e) Engage in or permit any employee or other person to engage in the consumption of any type of cannabis, cannabis concentrate or cannabis product on the premises, except:

(i) A licensee may allow an employee who is a qualifying patient to consume legally obtained medical cannabis or cannabis products on the licensed premises. Pursuant to 22 MRS § 2426(2)(B), no employer is required to accommodate the ingestion of medical cannabis in any workplace or any employee working while under the influence of cannabis.

(ii) An employee of a licensee may ingest, consume or apply products for quality control, research or development, or employee educational purposes, so long as the licensee does not allow any products to be smoked on the premises and the licensee ensures that the person conducting the testing does not operate any equipment or machinery or a motor vehicle while under the influence of the cannabis product.

(4) Licensees are prohibited by this rule from manufacturing, selling or offering for sale any cannabis product intended for intravenous delivery or that involves any type of injection involving piercing of the skin of a human or animal.

(B) General Sanitary Requirements. In addition to the requirements found in Maine Food Code Chapter 33, this rule and all other applicable rules and laws, a cannabis establishment licensee must:

(1) Prohibit an individual from working at a licensed premise who has or appears to have:

(a) An open or draining skin lesion unless the individual wears an absorbent dressing and protective gloves; or

(b) Any illness accompanied by diarrhea or vomiting if the individual has a reasonable possibility of contact with cannabis or cannabis products on the licensed premises;

(2) Require all persons who work in direct contact with cannabis or cannabis products conform to hygienic practices while on duty, including but not limited to:

(a) Maintaining adequate personal cleanliness; and

(b) Washing hands thoroughly in an adequate hand-washing area before starting work, prior to having contact with cannabis or cannabis products and at any other time when the hands may have become soiled or contaminated;

(3) Provide adequate and convenient hand-washing facilities, furnished with potable running water at a suitable temperature, effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying device;

(4) Properly remove all litter and waste from the licensed premises and maintain the operating systems for waste disposal in an adequate manner so that they do not constitute a source of contamination in areas where cannabis or cannabis products are exposed;

(5) Provide employees with adequate and readily accessible toilet facilities that are maintained in a sanitary condition and good repair;

(6) Hold cannabis or cannabis products in a manner that prevents pathogenic microorganism growth or toxin formation; and

(7) Conduct mandatory testing of cannabis or cannabis products returned to the licensee by another licensee in accordance with the following requirements:

(a) A licensee shall not sell or furnish to a licensee for sale to a consumer, cannabis or a cannabis product that has been returned by a consumer, including cannabis or cannabis products that were returned by a consumer in packaging that remains intact and unadulterated. Cannabis or cannabis products that are returned by a consumer shall be destroyed.

(b) A licensee may sell or furnish to a licensee for sale to a consumer, without further testing in accordance with the rules governing the adult use cannabis program, cannabis or cannabis products that have been returned to the licensee from another licensee that is in intact, unadulterated pre-packaged retail units provided that such pre-packaged retail units remain intact and unadulterated upon resale to another licensee.

(c) A licensee may sell or furnish to a licensee for sale to a consumer cannabis or cannabis products that have been returned to a licensee from another licensee. If cannabis or cannabis products are returned to the licensee that originally cultivated or manufactured the cannabis or cannabis product, the licensee shall ensure that the cannabis or cannabis product is subject to all mandatory testing before transfer to another licensee for sale to a consumer. A licensee is not required to test returned cannabis or cannabis products for the following analyte categories, so long as the cannabis or cannabis products previously passed mandatory testing for the following analyte categories and the cannabis or cannabis product is not combined with any other cannabis or cannabis product that has not passed mandatory testing for the analyte categories listed below:

(i) Residual solvents;

(ii) Pesticides; and

(iii) Other harmful chemicals (metals).

(4) Adherence to Written Plans Approved by the Department. Cannabis establishment licensees are required to conduct operations in accordance with all written plans and applications and supplemental materials submitted by the licensee as an applicant, conditional licensee or active licensee and approved by the Department as indicated by the issuance of a cannabis establishment license, or as applicable specified event permit.

(A) Covered Plans. As applicable,a licensee is responsible for developing, obtaining approval for, and adhering to, any plans that the Department may require to promote public health, public safety and orderly operation of the adult use cannabis program in accordance with the 28-B MRS and the rules governing the adult use cannabis program. At minimum:

(1) All cannabis establishments must develop, receive approval for and operate in accordance with its facility plan.

(2) All cannabis establishments must operate in accordance with:

(a) Any applicable written plans of record included in the facility plan of record;

(b) Any other written assurances regarding operations to the Department for the purpose of ensuring health and safety;

(c) Local ordinances, land use standards and/or warrant articles;

(d) Any permits issued, or conditions imposed by a municipality, town, plantation, county commission or the Maine Land Use Planning Commission in connection with local authorization; and

(e) Any plans required by any other federal, state or local regulations.

(3) Licensees collecting their own samples for mandatory testing must comply with all Department-required forms, SOPs and guidance.

(4) Cannabis store licensees conducting sales of cannabis or cannabis products at a specified event shall operate in accordance with all plans, diagrams, descriptions and other permit application materials submitted to the Department and approved by the Department through the issuance of a specified event permit.

(B) Plans of Record. The Department shall keep on file a copy of all facility plans as well as copies of certifications of testing facilities and applications for specified event permits submitted by cannabis store licensees. The most recent Department-approved plan, whether submitted with the issuance of the cannabis establishment license, or by the subsequent approval of an application to change, shall be the plan of record with which the licensee must comply.

(C) Licensee Responsibility. A cannabis establishment licensee is solely responsible for the operation of the cannabis establishment in accordance with the cannabis establishment facility plan of record on file with the Department. A cannabis store licensee conducting sales of cannabis or cannabis products at a specified event is also responsible for operating in accordance with all information included in its specified event permit application.

(D) Changes to Facility Plan, including changes to operations, cultivation or security information included therein. Any material changes to the facility plan of record, including changes to cultivation or security practices, of any cannabis establishment must be approved by the Department. A material change includes without limitation: changes to the licensed premises including changes to the floor plan, security equipment, manufacturing equipment, display cases or any other area of the licensed premises where cannabis is cultivated, manufactured, stored or sold, the commencement or cessation of activities related to the manufacture of products that do not contain cannabis within the licensed premises of products manufacturing facility, the addition or removal of curbside pickup locations – including those curbside pickup locations outside the licensed premises but immediately adjacent to the primary public ingress and egress of the cannabis store, the commencement or cessation of delivery activities and seasonal or temporary cessation of authorized activities at a licensed cannabis establishment in excess of 30 days.

(1) An application to materially change the facility plan of a cannabis establishment must be:

(a) Submitted on forms made available by the Department;

(b) Accompanied by all required fees associated with a change of facility plan; and

(c) Consistent with 28-B MRS, the rules governing the adult use cannabis program and any other applicable laws and rules.

(2) No licensee shall make material changes to a facility plan of record until the application for changes to the facility plan have been approved by the Department.

(3) Within 30 days of receiving an application for changes to the facility plan, the Department shall:

(a) Approve the application for changes to the facility plan and update the facility plan of record on file with the Department; or

(b) Deny the application for changes to the facility plan only if the changes requested are in violation of 28-B MRS, the rules governing the adult use cannabis program, conditions required for local approval or other applicable laws or rules.

(4) The Department may place an application for changes to a facility plan on hold if the cannabis establishment applying for the change of facility plan is currently under investigation for a violation of 28-B MRS, the rules governing the adult use cannabis program or other related laws or rules.

(5) For purposes of this subsection, a licensee proposing to co-locate a medical cannabis operation not currently operating on the premises shall constitute a material change in the facility plan.

(5) Requirements Applicable to Cultivation Facilities.

(A) General Compliance. In addition to the general compliance requirements of this rule and all requirements pursuant to 28-B MRS, 36 MRS and all other applicable laws and rules, a cannabis cultivation licensee must comply with the requirements of this subsection.

(B) Privileges Granted. A cannabis cultivation licensee shall only exercise those privileges granted to it by the Department. In accordance with 28-B MRS, the rules governing the adult use cannabis program and all other applicable laws and rules, a cannabis cultivation licensee may within limited access areas of the premises as described in the cannabis establishment facility plan of record:

(1) Propagate and cultivate cannabis plants;

(2) If appropriately licensed as a pesticide applicator with the Department of Agriculture, Conservation and Forestry, Board of Pesticides Control, apply pesticides, fungicides and growth regulators permitted for use on cannabis and cannabis plants;

(3) Trim, dry, cure and store cannabis;

(4) Prepare cannabis plants and cannabis for authorized transfer and participate in authorized transfers of cannabis plants and cannabis;

(5) Package cannabis for retail sale:

(a) A cannabis cultivation establishment may package cannabis flower and trim for retail sale; and

(b) A cannabis cultivation establishment may produce pre-rolled cannabis cigarettes, so long as the pre-rolled cannabis cigarettes contain only cannabis flower or trim.

(6) Prepare cannabis waste for disposal and dispose of cannabis waste;

(7) Transfer cannabis samples to products manufacturing and cannabis store licensees pursuant to 28-B MRS and this rule;

(8) Collect samples for mandatory testing in compliance with the requirements of 18-691 CMR, ch. 40;

(9) Transfer cannabis testing samples to a licensed cannabis testing facility;

(10) For tier 1, tier 2 or nursery cultivation facilities, conduct retail sales of cannabis or cannabis products by delivery to consumers in accordance with the delivery requirements in subsection 9 of this section; except that a nursery cultivation facility may only conduct retail sales by delivery of immature cannabis plants, seedlings, cannabis seeds and agricultural or gardening supplies relating to the cultivation of cannabis;

(11) Accept returns of cannabis plants or cannabis sold to a consumer from cannabis stores, or as applicable, from consumers, for the purpose of destruction;

(12) Accept returns of cannabis flower, including kief, and cannabis trim from a products manufacturing facility that received the cannabis flower or trim from the cultivation facility, and then reselling that returned cannabis flower or trim subject to the inventory tracking requirements of this rule and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40; and

(13) Accept returns of pre-packaged retail units of cannabis flower, including kief, and cannabis trim from another cultivation facility, products manufacturing facility or cannabis store that received the cannabis flower or trim from the cultivation facility, and then reselling that returned cannabis flower or trim subject to the inventory tracking requirements of this rule and the mandatory testing requirements of the Rules for the Testing of Adult Use Cannabis, 18-691 CMR, ch. 40.

(C) Authorized Sources of Cannabis Plants and Seeds. A cultivation facility licensee may acquire cannabis plants and seeds by the following processes:

(1) By lawful purchase from another cultivation facility licensee, including a nursery cultivation facility.

(2) By gift from an individual person, who must be a resident of the State of Maine:

(a) A cultivation facility licensee may receive, by gift from an individual, only seeds and seedlings pursuant to this rule;

(b) A cultivation facility licensee may not accept, during a 90-day period, more than one transfer of seeds or seedlings from each individual gifting seeds or seedlings to that licensee;

(c) A cultivation facility licensee may not accept more than 12 seedlings from an individual gifting seedlings to the licensee;

(d) A cultivation facility licensee may not accept more than 2.5 ounces of seeds, from one individual during a 90-day period;

(e) Before accepting a gift of seeds or seedlings, the cultivation facility must receive approval from the Department, in writing, to accept the gift of seeds or seedlings. A cultivation facility licensee that receives seeds or seedlings as a gift from an individual, shall record on forms made available by the Department, the full name, contact telephone number and the identification number of a valid state identification belonging to the individual;

(i) The licensee’s request for approval of a transfer to the Department shall include an anticipated transfer date and the actual date of the transfer of the gifted seedlings or seeds may not be more than 10 business days after the transfer date approved in writing by the Department.

(f) The seeds or seedlings shall be recorded in the inventory tracking system by 11:59 P.M. on the day the licensee receives the gift of seeds or seedlings;

(g) The individual gifting the seeds or seedlings to the licensee may not receive remuneration of any kind in return; and

(h) The gift of the seeds or seedlings must not be conditional or contingent upon any other terms or requirements of the licensee.

(D) Cannabis Cultivation Establishment Premises.

(1) The premises of a cannabis cultivation establishment must comply with all security requirements described in subsection 2.

(2) All electrical equipment, including but not limited to growing lights, cultivation equipment and packaging equipment, must be agency approved including UL, ETL, and CSA.

(3) Any cultivation of seedlings, immature plants, mother plants or mature plants must take place in:

(a) A fully enclosed secure indoor facility or secure greenhouse with walls, a roof, lockable doors, and secure windows as described in subsection 2 that prevent entry by unauthorized persons; or

(b) Within a secured fenced area, as described in subsection 2.

(4) The entire area within the fence surrounding non-secure greenhouses, other structures or expanse of open or cleared ground shall be considered a limited access area.

(a) An outdoor or greenhouse cannabis cultivation facility must provide sufficient security measures to demonstrate that outdoor areas are not readily accessible by unauthorized individuals.

(b) It shall be the responsibility of the licensee to maintain physical security in a manner similar to a cultivation facility located in an indoor licensed premise so it can be fully secured and alarmed.

(5) A nursery cultivation facility or a cultivation facility that also holds a cannabis store license on the same premises must use a fence or other adequate security measures to separate areas of the premises designated for retail sales from limited access areas, including any area where samples for mandatory testing are collected, packaged, and sealed for transport to a cannabis testing facility.

(E) Authorized Mature Plant Canopy. At no time may a cannabis cultivation licensee cultivate mature cannabis plants in an area not clearly illustrated on the facility plan of record previously filed and approved by the Department. At no time may the total area in square feet in which mature cannabis plants are cultivated exceed the total area for which the cannabis cultivation licensee has been approved as indicated on the license issued to the licensee by the Department.

(F) Cultivation of Medical and Adult Use Cannabis on the Same Premises. A cultivation facility may cultivate both medical cannabis and adult use cannabis only if it has received the Department’s approval of a facility plan to cultivate both and it is a registered caregiver or registered dispensary eligible to co-locate in accordance with the rules governing the adult use cannabis program and 28-B MRS, ch. 1. The cultivation facility must:

(1) Cultivate medical cannabis in an area that is separated from the area used to cultivate adult use cannabis by a permanently constructed physical barrier such as a wall or fencing;

(2) Maintain all required business and inventory transfer records of medical cannabis separately from adult use cannabis inventory tracking records;

(3) Store all medical cannabis separately from adult use cannabis;

(4) Ensure that medical cannabis is never cultivated simultaneously or contemporaneously with adult use cannabis using the same piece of equipment; and

(5) Develop and maintain a standard operating procedure to ensure that, for tax compliance purposes, cultivation-related equipment is not used simultaneously for the cultivation of adult use and medical cannabis.

(6) Requirements Applicable to Testing Facilities.

(A) General Requirements. Before accepting any cannabis or cannabis products for mandatory testing pursuant to 28-B MRS § 602, a cannabis testing facility must:

(1) Obtain certification from the Department of Health and Human Services, Maine Center for Disease Control and Prevention, in accordance with 18-691 CMR, Ch. 5, at any point during the licensure process, but prior to the issuance of a full or provisional active license by the Department. Approval by the CDC of plans, standard operating procedures, financial and business arrangements, or other documents and information provided for certification by the CDC pursuant to the Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch. 5 does not constitute approval by DAFS for the purposes of licensure pursuant to 18-691 CMR, ch. 20; and

(2) In accordance with the requirements of 18-691 CMR, ch. 10,obtain a conditional license from the Department; obtain local authorization to operate a cannabis testing facility; and an active license from the Department.

(B) Prohibited Conduct. In addition to any other restrictions or prohibitions contained in the rules governing the adult use cannabis program, 28-B MRS, any other applicable Federal, State or Local rules or laws or any accreditation requirements, cannabis testing facilities are subject to the following prohibitions.

(1) No testing facility or principal, or employee of a cannabis testing facility may have a direct or indirect financial interest in a cultivation facility, products manufacturing facility, manufacturing facility, cannabis store, registered caregiver or registered dispensary.

(2) No principal of a cannabis testing facility may be a registered caregiver.

(3) No testing facility may conduct testing on behalf of a registered caregiver who is an employee of that testing facility.

(4) Cannabis or cannabis products may not be collected, accepted, transported, purchased, transferred or destroyed without entering the cannabis or cannabis products into the tracking system required by the Department by 11:59 P.M. that same day.

(5) A cannabis testing facility may not transfer any cannabis or cannabis products or samples to any person or entity other than the person or entity who provided the sample, a law enforcement officer authorized to collect the cannabis or cannabis product, another licensed cannabis testing facility with a valid license to perform the testing requested, or the Department.

(6) No principal, contractor or employee of a cannabis testing facility may accept any gifts of goods, services, or money from a cultivation facility, products manufacturing facility, cannabis store, registered caregiver or registered dispensary or a person or an organization representing such entities.

(7) A cannabis testing facility shall maintain the confidentiality of test results and may not report test results with any identifying information to anyone other than the person or entity who submitted the sample, law enforcement officers authorized to collect the information, the CDC, or the Department.

(8) No employee of a cannabis testing facility may alter the results of any test. In cases in which a sample was retested in accordance with 18-691 CMR, ch. 40, both test results shall be maintained.

(9) No employee of a cannabis testing facility may conceal from the Department the results of any mandatory test for cannabinoid content or contamination.

(10) No testing facility may fail to operate within the requirements of the rules governing the adult use cannabis program, any term of certification or any order, or any request or other directive made under authority of or under the statutory authority vested in the Department.

(11) No testing facility may engage in, aid, abet, cause or permit any action prohibited under this the rules governing the adult use cannabis program.

(12) No testing facility may fail to provide timely and accurate data reporting.

(13) No testing facility may engage in false or deceptive advertising.

(14) A cannabis testing facility must maintain its certification at all times for at least one analyte and technology required as part of mandatory testing to remain licensed by the Department.

(15) No testing facility may continue to operate after a municipality or the Maine Land Use Planning Commission informs the Department that it has revoked, suspended or not renewed local authorization.

(C) Personnel Qualifications. A cannabis testing facility must employ at all times qualified staff who meet the requirements of certification by the CDC.

(1) A cannabis testing facility must ensure that a cannabis testing facility director meeting CDC certification requirement is onsite and available during on average, at least 60% of the business hours indicated on the facility plan.

(2) A cannabis testing facility must keep a current record of all individual identification cards, the individual identification card number and date of issuance and expiration for every principal, employee, or any other individual identification card holder of the cannabis testing facility.

(D) Written SOPs are Requirements of Licensing and Must be Followed.

(1) Actual practice must conform to the written procedures required under 18-691 CMR ch.5.

(a) The cannabis testing facility must maintain copies of the methods from which the procedures are developed and must ensure that the applicable requirements are incorporated into each procedure.

(b) A copy of each procedure must be available to all personnel that engage in that activity.

(c) An analyst must use the cannabis testing facility’s SOP beginning on its effective date.

(2) It is the exclusive responsibility of the cannabis testing facility to clearly indicate on any SOPs supplied to the Department any content the cannabis testing facility deems to be trade secrets or other information that would be within the scope of a privilege against discovery or use as evidence recognized by the courts of this State in civil or criminal trials if the records or inspection thereof were sought in the course of a court proceeding, which may otherwise be included as a “public record” pursuant to 1 MRS § 402(3) in a response to a request for records and information under the Maine Freedom of Access Act.

(3) The cannabis testing facility must make the SOPs available to the Department and the CDC upon request.

(E) A Cannabis Testing Facility Must Comply with all Recordkeeping Requirements of 18-691 CMR, Ch. 5 and this Rule.

(1) The cannabis testing facility must maintain analytical records to demonstrate to the Department and the CDC the following: the analyst’s name; date of analysis; approver of the certificate of analysis and relevant data package; the test method; and the materials used.

(a) Cannabis testing facility records may be on paper or on electronic, magnetic or optical media and must be stored in such a way that the records are readily retrieved when requested by the Department or the CDC.

(b) If the cannabis testing facility records are not on paper, the cannabis testing facility must be able to produce the records in hard copy for the Department or the CDC, upon request.

(c) All cannabis testing facility records must be kept for a minimum of five years.

(d) The Department and the CDC must be allowed access to all electronic data, including standards records, calibration records, extraction logs, cannabis testing facility notebooks and all other cannabis testing facility-related documents as required by the rules governing the adult use cannabis program.

(2) The cannabis testing facility must maintain all analytical records and documents, forms, records and standard operating procedures associated with the cannabis testing facility’s methods as required by the rules governing the adult use cannabis program.

(3) If records are missing or incomplete, or if the cannabis testing facility does not produce records for the Department or the CDC upon request, the Department may take disciplinary or enforcement action against the cannabis testing facility. A cannabis testing facility shall have 7 calendar days from the request to respond.

(F) Electronic Data Storage and Security.

(1) A cannabis testing facility must store all raw unprocessed instrument output data files and processed quantitation output files on some form of electronic, magnetic or optical media. The cannabis testing facility must allow access to these records for inspection and audit by the Department or the CDC.

(2) A cannabis testing facility must install, manage and maintain password-protection for electronically stored data, including any certificate of analysis.

(G) Test Waste Disposal.

(1) A cannabis testing facility must dispose of all unused test samples and waste generated by the testing of samples of cannabis, cannabis concentrate and cannabis products in accordance with the facility’s SOPs and this rule.

(2) The cannabis testing facility must discard hazardous waste in accordance with Section 4 of this rule.

(3) The cannabis testing facility must discard cannabis waste in accordance with Section 4 of this rule.

(H) Security.

(1) All cannabis on the premises must be tracked using the chain-of-custody forms and the inventory tracking system in accordance with the rules governing the adult use cannabis program.

(2) The cannabis testing facility must install key-card doors, alarms or other means of detecting entrance and exit to limited access areas and during times that are outside of the business hours of the facility.

(3) The cannabis testing facility must develop and implement security protocols that can prevent diversion, theft and loss of samples.

(4) The security protocol must be documented in writing and available to all testing facility personnel during normal business hours and must be included in training materials. The cannabis testing facility must ensure that personnel have a thorough understanding of the security protocol.

(5) The cannabis testing facility must deter the unauthorized entrance into areas within the cannabis testing facility where samples are present by controlling access to those areas through the following means:

(a) Limiting access to specific personnel, in order for them to execute their specific job function and duties;

(b) Implementing an access-control-card system capable of preventing unauthorized access through access control points and recording the transaction history of all entrants;

(c) Using a monitored security alarm system;

(d) Maintaining a visitor arrival and departure log, which must contain, at a minimum, the name of the visitor, date and time of arrival and departure, and the purpose of the visit; and

(e) Installing security cameras at all access points to the premises, in storage areas for samples and where cannabis waste will be destroyed.

(6) The cannabis testing facility must store and secure cannabis with a commercial-grade lock in a room or cabinet capable of preventing diversion, theft, and loss. Secured areas must be locked at all times, except when managing or retrieving a secured item or items. The cannabis testing facility must store cannabis and cannabis product samples apart and away from non-cannabis samples and items. The cannabis testing facility must designate secured areas for storage of the following:

(a) Test samples of cannabis and cannabis products;

(b) Waste containing cannabis;

(c) Reference standards for analysis of cannabinoids; and

(d) Any controlled substances related to cannabinoids.

( 7) Testing facilities must notify the Department within one business day of discovering any of the following:

(a) An unexplained loss of 5% or more of the inventory of unpackaged and unused production batch samples held at the cannabis testing facility;

(b) An unexplained loss of one or more units of packaged batch samples held at the cannabis testing facility; or

(c) Diversion or theft of cannabis, unauthorized or prohibited conduct, or any other criminal activity pertaining to the operation of the cannabis testing facility.

(8) The cannabis testing facility must also comply with security requirements of this rule.

(9) In addition to any samples collected for mandatory testing by the cannabis testing facility, a cannabis testing facility may only accept samples for mandatory testing from:

(a) Licensed sample collectors; or

(b) A self-sampler in compliance with this rule.

(7) Requirements Applicable to Products Manufacturing Facilities.

(A) General Product Safety. In addition to other provisions of the rules governing the adult use cannabis program, 28-B MRS and all other applicable rules and laws, a cannabis products manufacturing facility must:

(1) Ensure that all equipment and surfaces that come into contact with any cannabis or other ingredients are food grade and made of materials that do not react adversely with cannabis, any ingredient, chemical or solvent being used;

(2) Construct, install and maintain all counters and surface areas in a manner that reduces the potential for development of microbials, molds, mildew, fungi and other contaminants, and that can be easily cleaned;

(3) Maintain the premises in a manner that is:

(a) Free from conditions that may result in contamination; and

(b) Suitable to facilitate safe and sanitary operations;

(4) Provide adequate refrigeration for perishable cannabis products that will be consumed and utilize adequate storage facilities and transport methods;

(5) Ensure that all electrical equipment used for extraction is agency approved including UL, ETL, and CSA;

(6) Maintain a log of all maintenance, service and repairs to any equipment used for extraction using inherently hazardous substances;

(7) Ensure that all chemicals and substances used in the manufacturing process are stored in a safe location on the premises and in a manner to prevent contamination of any cannabis or cannabis products;

(8) Collect and submit samples of cannabis concentrate and cannabis products for mandatory testing in accordance with all requirements of 18-691 CMR, ch. 40;

(9) Ensure that any cannabis or cannabis products sold to a consumer and returned by a cannabis store or a consumer for destruction are appropriately stored, tracked and destroyed; and

(10) Ensure that any pre-packaged or unpackaged cannabis or cannabis products returned from another licensee that received those cannabis or cannabis products from the products manufacturer are appropriately stored, tracked and tested in accordance with the requirements of the rules governing the adult use cannabis program.

(B) Prohibited Conduct. In addition to any other restrictions or prohibitions contained in the rules governing the adult use cannabis program, 28-B MRS and any other applicable rules or laws, a cannabis products manufacturing establishment may not:

(1) Manufacture a cannabis product that by its shape or design that is specifically designed to target minors, including without limitation:

(a) Products that are modeled after non-cannabis products commonly consumed by and marketed to minors; or

(b) Products in the distinct shape of a human, animal or fruit.

(2) Manufacture a cannabis product that is adulterated or misbranded in contravention of the Maine Food Law , Title 22, ch. 551;

(3) Manufacture a cannabis product by adding or infusing cannabis into a commercially available non-cannabis end product;

(4) Manufacture any product that does not contain cannabis;

(5) Manufacture any edible cannabis product that has more than 10 milligrams of THC per serving;

(6) Package together for sale an edible cannabis product that has more than 200 milligrams of total THC;

(7) Sell cannabis or cannabis products that have not passed all mandatory testing as verifiable with a certificate of analysis from a licensed cannabis testing facility; or

(8) Sell cannabis or cannabis products directly to a consumer except through delivery in accordance with subsection 9 of this section.

(C) Tracking. A cannabis products manufacturing facility must enter into the tracking system all required information.

(D) Extraction.

(1) Generally safe extraction methods. The Department permits the following generally safe extraction methods, so long as they are listed in the facility plan of record:

(a) Mechanical extraction using:

(i) Potable water and ice made from potable water;

(ii) Dry screening or sieving;

(iii) Cryogenic or subzero processing not involving a solvent; or

(iv) Pressure and temperature.

(b) Infusion of cannabis in food grade fats or synthetic food additives:

(i) Propylene glycol;

(ii) Glycerin;

(iii) Butter;

(iv) Olive Oil; or

(v) Other typical cooking fats.

(2) Potentially hazardous extraction methods. The Department will permit potentially hazardous solvent extraction using a 99 percent or greater purity of the following solvents, using storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems methods approved in the facility plan of record, so long as the solvents are listed in the facility plan of record and the end result does not exceed allowable limits specified by the Department:

(a) CO2;

(b) Ethanol, including solutions of ethanol and potable water; or

(c) A liquid chemical, compressed gas or commercial product that has a flashpoint above 38 degrees Celsius or 100 degrees Fahrenheit.

(3) Inherently hazardous extraction methods. Upon certification by a professional engineer licensed in Maine that the manufacturing facility’s storage, preparation, electrical, gas monitoring, fire suppression and exhaust systems are adequate, the Department will permit inherently hazardous solvent extraction using a 99 percent or greater purity of the following solvents, so long as the solvents are listed in the facility plan of record and the end result does not exceed allowable limits specified by the Department:

(a) Butane;

(b) Propane;

(c) Acetone;

(d) Heptane;

(e) Pentane; or

(f) Any other chemicals approved by the Department in writing.

(4) Pressurized canned flammable fuel, including without limitation butane or propane in containers intended for camp stoves, handheld torch devices, refillable cigarette lighters and similar consumer products are prohibited for use in extraction.

(5) As applicable, all licensees and employees must:

(a) Operate all inherently hazardous substance extraction equipment in accordance with the equipment manufacturer’s instructions;

(b) Work in an environment with proper ventilation, controlling all sources of ignition where a flammable atmosphere is or may be present;

(c) Use proper eye protection, respiratory protection and gloves;

(d) Use only potable water and ice made from potable water in processing; and

(e) Undergo safety training on fire prevention and safe operation of equipment used for manufacturing.

(6) A cannabis products manufacturing facility performing extraction may be subject to inspection by the state fire marshal, local fire department, building inspector or code enforcement officer to confirm that no health or safety concerns are present, and that the facility is in compliance with all applicable standards contained in the NFPA model fire code.

(E) Edible Cannabis Products Manufacturing. In addition to all other provisions of the rules governing the adult use cannabis program, 28-B MRS and all other applicable rules or laws, a cannabis products manufacturing facility that has declared edible cannabis products as part of their facility plan of record may manufacturer edible cannabis products in accordance with the following:

(1) Must obtain a food establishment license from the State of Maine pursuant to 22 MRS § 2167.

(2) May not:

(a) Manufacture edible cannabis products intended for non-human consumption;

(b) Manufacture edible cannabis products within the same licensed food establishment that operates as a restaurant or that prepares non-cannabis food to be served to order; or

(c) Extract hemp or manufacture products that contain hemp, or ingredients derived from hemp, that does not also contain cannabis.

(3) Shall be subject to inspection by state or local regulatory authorities including but not limited to the local fire department, building inspector or code enforcement officer to confirm that no health, safety or threats to the public welfare are present; and

(4) Shall comply with all applicable standards of the relevant local jurisdiction and the Maine Food Code.

(a) The addition of cannabis to food is not considered adulteration as provided in 22 MRS §2158-B.

(b) In the event of a conflict between this rule and the Maine Food Code, this rule shall control.

(F) Edible Cannabis Product Safety.

(1) Cannabis and cannabinoid content must be homogeneous throughout:

(a) The product, or that portion of the product that contains THC; and

(b) Each serving.

(2) Serving sizes must be standardized.

(a) The size of a standardized serving of cannabis shall be no more than 10mg of total THC.

(b) A cannabis products manufacturing facility that manufactures edible cannabis product shall determine the total number of standardized servings per package of cannabis for each product that it manufactures.

(c) No individual edible cannabis product unit for sale shall contain more than 200 milligrams of total THC, which must be readily divisible into individual servings containing no more than 10 milligrams of THC per serving.

(d) Determinations of cannabinoid content must comply with the testing requirements of 18-691 CMR, ch. 40.

(e) When determining whether a serving of edible cannabis products exceeds the potency limits, a licensee may account for the following variance in the potency in excess of 10 milligrams per serving:

(i) Testing facility uncertainty, as indicated on the testing facility’s certificate of analysis for the mandatory potency test results. A variance for testing facility uncertainty cannot exceed 5% or 0.5 milligrams per serving; and

(ii) An additional 10% allowable variance for edible cannabis products, which cannot exceed 1 milligram per serving;

(iii) For a total maximum allowable potency of 11 milligrams of total THC per serving plus testing facility uncertainty which cannot exceed 5% or 0.5 milligrams per serving.

(f) When determining whether a multi-serving package of edible cannabis products exceeds the potency limits, a licensee may account for the following variance in the potency in excess of 200 milligrams per package:

(i) Testing facility uncertainty, as indicated on the testing facility’s certificate of analysis for the mandatory potency test results. A variance for testing facility uncertainty cannot exceed 5% or 10 milligrams per package; and

(ii) An additional allowable variance of up to 5 milligrams per package;

(iii) For a total maximum potency per multi-serving package of edible cannabis products of 205 milligrams of total THC plus testing facility uncertainty which cannot exceed 5% or 10 milligrams per multi-serving package.

(g) Unless impracticable, each single standardized serving of cannabis shall be marked, stamped, individually wrapped or blister packaged with the Department-approved universal symbol.

(h) If each serving of the edible cannabis product itself is marked, stamped or otherwise embossed, the universal symbol shall be applied directly to at least one side of the edible cannabis product in a manner to cause the universal symbol to be distinguishable and easily recognizable. The universal symbol marking shall:

(i) Be centered either horizontally or vertically on each standardized serving of cannabis; and

(ii) If centered horizontally on a serving, the height and width of the universal symbol shall be of a size that is at least 25% of the serving’s width, but not less than ¼ inch by ¼ inch; or

(iii) If centered vertically on a serving, the height and width of the universal symbol shall be of a size that is at least 25% of the serving’s height, but not less than ¼ inch by ¼ inch.

(i) If each serving of the edible cannabis product itself is individually wrapped with the universal symbol, the wrapper must fully enclose the serving of the edible cannabis product When the wrapper is wrapped around a serving of an edible cannabis product, it shall be wrapped in a manner to cause the universal symbol to be distinguishable and easily recognizable. A wrapper containing the universal symbol shall satisfy the following requirements.

(i) A wrapper containing the universal symbol shall include one or more images of the universal symbol. If the wrapper contains one image of the universal symbol, the serving of the edible cannabis product must be wrapped in such a way that the universal symbol is centered, either horizontally or vertically, on the serving. If the wrapper contains multiple images of the universal symbol, then every image of the universal symbol must comply with the requirements of this section and the images of the universal symbol must be evenly distributed across the wrapper, with at least one image of the universal symbol centered, either horizontally or vertically, on the serving when the serving is wrapped.

(ii) The universal symbol shall be the only image, figure or logo on the wrapper. No other words or images may be included on the wrapper.

(iii) The universal symbol shall be at least ¼ inch by ¼ inch.

(iv) The wrapper must be white andthe universal symbol must be maintained in the form provided to the licensee and may not be modified, recreated, stylized, stretched or otherwise distorted.

(v) The universal symbol mustprinted using the black and red color scheme published by the Department.

(j) If each serving of the edible cannabis product is wrapped in blister packaging, each serving of the edible cannabis product must be fully enclosed in one blister or well of the packaging and covered with lidding material made from foil or plastic film at least four mil in thickness. A blister package containing the universal symbol shall satisfy the following requirements.

(i) The blister packaging shall include one image of the universal symbol in the center of the lidding material that covers each blister or well that contains a serving.

(ii) The universal symbol shall be the only image, figure or logo on the lidding material of the blister packaging. No other words or images may be included on the lidding material of the blister packaging.

(iii) The universal symbol shall be at least ¼ inch by ¼ inch.

(iv) The exterior surface of the lidding material must be white andthe universal symbol must be maintained in the form provided to the licensee and may not be modified, recreated, stylized, stretched or otherwise distorted.

(v) The universal symbol mustprinted using the black and red color scheme published by the Department.

(3) The following categories of edible cannabis products are considered to be per se practicable to mark with the universal symbol:

(a) Chocolate;

(b) Soft confections, except gummies;

(c) Hard confections or lozenges;

(d) Consolidated baked goods (including without limitation cookies, brownies, cupcakes, and granola bars); and

(e) Pressed pills and capsules.

(4) The following categories of edible cannabis products are considered to be per se impracticable to mark with the universal symbol:

(a) Potato or corn chips;

(b) Popcorn;

(c) Pretzels;

(d) Loose granola; and

(e) Gummies.

(G) Manufacturing of Medical Cannabis Products and Adult Use Cannabis Products on Same Premises.

(1) A products manufacturing facility may possess medical cannabis or medical cannabis concentrate only if it has received the Department’s approval of a facility plan to extract concentrate from medical cannabis and/or produce medical cannabis products and it is a registered caregiver or registered dispensary eligible to co-locate in accordance with the rules governing the adult use cannabis program and 28-B MRS, ch. 1. The products manufacturing facility must:

(a) Maintain all required business and inventory transfer records of medical cannabis, medical cannabis concentrate and medical cannabis products separately from inventory tracking records for adult use cannabis, adult use cannabis concentrate and adult use cannabis products.

(b) Store all medical cannabis, medical cannabis concentrate and medical cannabis products separately from adult use cannabis, cannabis concentrate and cannabis products.

(c) Ensure that medical cannabis or medical cannabis concentrate is never manufactured simultaneously or contemporaneously with adult use cannabis or cannabis concentrate on the same piece of equipment.

(d) Develop and maintain a standard operating procedure to ensure that manufacturing-related equipment is not used simultaneously for the manufacture of adult use and medical cannabis and for tax compliance purposes.

(H) Manufacturing products that do not contain cannabis within the licensed premises of a Products Manufacturing Facility.

(1) A products manufacturing facility that holds an active food establishment license issued by DACF pursuant to 22 MRS § 2167 may manufacture products that do not contain cannabis, within the portion of the facility’s licensed premises that is licensed as a food establishment, in accordance with this subsection.

(2) A products manufacturing facility that intends to use any portion of the licensed premises that is licensed as a food establishment shall conduct such manufacturing activities in accordance with the licensee’s facility plan and only in those areas of the licensed premises identified as the DACF-licensed food establishment, except that a products manufacturing facility may share the following items and areas within the licensed premises:

(a) Manufacturing-related and nonmanufacturing-related equipment and supplies, so long as such equipment or supplies are not used simultaneously for the manufacture of products that do and do not contain cannabis;

(b) Manufacturing-related and nonmanufacturing related supplies and products, including solvents used for extraction and ingredients used to make edible products, as well as the storage areas for those supplies and products; and

(c) General office space, bathrooms, entryways and walkways.

(3) A products manufacturing facility shall, prior to manufacturing products that do not contain cannabis, develop a policy, process or other standard operating procedure to ensure that:

(a) Manufacturing-related equipment and supplies are not simultaneously used for manufacturing products that do and do not contain cannabis.

(b) All manufacturing-related equipment, work surfaces, work areas, refrigeration equipment, storage containers and storage areas used to prepare, manufacture, package or store products that do and do not contain cannabis are washed, rinsed and sanitized between manufacturing products that do contain cannabis and manufacturing products that do not contain cannabis.

(c) All cannabis and cannabis products are kept secure and separate from products, supplies and ingredients that do not contain cannabis.

(d) Cannabis and cannabis products are packaged and labeled in accordance with the requirements of this rule.

(e) Products that do not contain cannabis are packaged and labeled in accordance with the requirements of the food establishment license issued by DACF.

(4) A products manufacturing facility licensee may not simultaneously manufacture edible cannabis products in the same room or area the licensed premises where the licensee is manufacturing edible products that do not contain cannabis. A licensee may simultaneously use rooms or areas of the licensed premises that are physically separate and visually distinct from one another in accordance with the policy, process or procedures developed by the licensee.

(5) Under no circumstances may a products manufacturing facility extract hemp within the licensed premises of the products manufacturing facility.

(6) Under no circumstances may a products manufacturing facility manufacture products that contain hemp, or that contain ingredients derived from hemp, that do not contain adult use cannabis.

(7) Any person that manufactures products that do not contain cannabis in a licensed food establishment within the licensed premises of a products manufacturing facility shall obtain from the Department an individual identification card in accordance with the requirements of 18-691 CMR, ch. 20.

(8) Requirements Applicable to Cannabis Stores and Nursery Cultivation Facilities.

(A) Authorized Conduct. In accordance with the requirements and restrictions of 28-B MRS, the rules governing the adult use cannabis program and any other applicable laws or rules, a cannabis store licensee or nursery cultivation facility may:

(1) Between the hours of 7:00 A.M. and 10:00 P.M. local time or the retail sales hours during the hours of 7:00 A.M. and 10:00 P.M. permitted by local regulation:

(a) Sell or transfer permitted items on the licensed premises, and as applicable to cannabis stores, via curbside pickup, delivery, or sales at a specified event, to consumers age 21 or older, within the limits described in this subsection:

(i) Cannabis stores may sell cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products, along with cannabis paraphernalia, non-cannabis food and non-alcoholic beverages, clothing and other generally permissible retail items.

(ii) Nursery cultivation facilities may sell cannabis seeds, cannabis seedlings, immature cannabis plants and agricultural or gardening supplies relating to the cultivation of cannabis.

(b) Offer and give away samples of cannabis or cannabis products subject to the limitations of this rule;

(c) Accept returns of products sold by the licensee at the same premises to the person making the return and offer a refund or exchange of equal or lesser value;

(d) Refuse to sell any item to any person; or

(e) Provide consultations between employees and adult consumers.

(2) At any time, except during those business hours the licensee indicated on its operating plan that it does not intend to conduct authorized activities:

(a) Prepare and transport permitted items to another licensee;

(b) Accept deliveries of permitted items and manage its inventory;

(c) Enter transfers or deliveries into the tracking system;

(d) Dispose of cannabis waste, including returned cannabis and cannabis products;

(e) Conduct employee training; or

(f) Perform administrative work, cleaning or maintenance.

(B) Sales Limits.

(1) A cannabis store conducting sales on the licensed premises of the cannabis store, or by curbside pickup, or delivery, or at a specified event, may not knowingly sell more than the following amounts, in combination with any samples given to the consumer by the cannabis store, if applicable, to an individual at any one time or within one day:

(a) Two and one-half ounces of cannabis; or

(b) Two and one-half ounces of cannabis and cannabis concentrate that includes no more than ten grams of cannabis concentrate, whether sold alone, contained in an inhalant delivery system, or contained in edible cannabis products.

(2) A nursery cultivation facility may not sell more than a sum total of 12 seedlings or immature plants to an individual at any one time or within one day.

(3) A nursery cultivation facility may not sell cannabis, cannabis products, cannabis plants or seeds via curbside pickup.

(4) A cannabis store or nursery cultivation facility is required to report to law enforcement the identity of any individual who explicitly communicates the intent to divert adult use cannabis to individuals under the age of 21, across state lines or to be engaging in the unlicensed sale of cannabis.

(5) A licensee shall report any criminal activity of which it is aware related to the unlicensed sale or diversion of cannabis, cannabis products or cannabis plants. Failure to report such activity to appropriate law enforcement entities may result in penalties up to and including license revocation and monetary fines.

(6) A licensee shall report all transactions into the tracking system.

(C) Prohibited Conduct. In addition to any other prohibitions and restrictions of 28-B MRS, the rules governing the adult use cannabis program or any other applicable laws or rules, a cannabis store or nursery cultivation facility must not:

(1) Conduct any transaction without face-to-face verification of the purchaser’s identity and age of 21 or older on an approved form of government-issued identification;

(2) Sell cannabis or a cannabis product that has not passed mandatory testing;

(3) Accept from another licensee or sell to a consumer cannabis or a cannabis product that is not properly packaged or labeled in accordance with Section 5 of this rule;

(4) Give away adult use cannabis, adult use cannabis products, cannabis seeds, immature cannabis plants or cannabis seedlings, except a cannabis store may give away consumer samples subject to the limitations of this rule;

(5) Sell or give away:

(a) Mature cannabis plants; or

(b) Consumable products containing tobacco or alcohol that do not contain cannabis.

(6) Except for nonedible adult use cannabis products that do not contain THC, sell to any person in any individual sales transaction an amount of adult use cannabis, adult use cannabis products or immature cannabis plants or seedlings that exceeds the personal adult use limitations of 28-B MRS §1501(1);

(7) Sell adult use cannabis, adult use cannabis products, immature cannabis plants or cannabis seedlings using:

(a) An automated dispensing or vending machine;

(b) A drive-through sales window;

(c) An Internet-based sales platform; or

(d) A third-party delivery service.

(8) Accept payment for a retail sale prior to verifying that the purchaser is at least 21 years of age;

(9) For retail sales occurring via curbside pickup or delivery, transfer a sales order to an individual prior to verifying that the identity of the individual receiving the sales order is the same as the individual who requested the sales order;

(10) Sell adult use cannabis or adult use cannabis products to a person who is visibly intoxicated;

(11) Sell or offer for sale to consumers adult use cannabis and adult use cannabis products within the same facility or building in which the licensee also sells or offers for sale to qualifying patients cannabis and cannabis products for medical use pursuant to 22 MRS, chapter 558-C;

(12) Sell or give away pressurized containers of butane or other materials that could be used in the home production of cannabis concentrate, except that a cannabis store or nursery cultivation facility may sell or give away disposable butane lighters;

(13) Sell or give away any items that are targeting minors as defined in 18-691 CMR, ch. 10;

(14) Sell an edible cannabis product that according to its label, exceeds 10 milligrams of THC per serving and 200 milligrams of THC in the total product;

(15) Discount cannabis or a cannabis product if the retail sale is made in conjunction with the retail sale of any other items, including other cannabis or cannabis products;

(16) Sell cannabis or cannabis products at a price that is significantly less than the wholesale price, or other price, that the cannabis store paid for the cannabis or cannabis product;

(17) Permit consumers to be present on the licensed premises or conduct sales, including sales via curbside pickup or delivery, or on the permitted premises at a specified event, between the hours of 10:00 P.M. and 7:00 A.M. local time the following day or any hours not permitted by local regulation;

(18) Conduct curbside pickup of cannabis or cannabis products at a location not approved by OCP on the licensee’s facility plan of record;

(19) Conduct any activities during hours or on days not authorized in the licensee’s facility plan, except as communicated to and approved by the Department in writing in accordance with the rules governing the adult use cannabis program;

(20) Deliver adult use cannabis or adult use cannabis products to a hotel or other business without first obtaining written consent from an authorized employee or other authorized agent of the business owner;

(21) Deliver adult use cannabis or adult use cannabis products to a private residence, hotel or other business located inside a drug-free safe zone designated by a municipality;

(22) Sell adult use cannabis or adult use cannabis products at a specified event without first obtaining a specified event permit to conduct sales at a particular specified event;

(23) Offer to give away, or give away, samples of adult use cannabis or cannabis products at a specified event, at a curbside pick up location, via delivery, or at any other location other than within the licensed premises of the cannabis store;

(24) Sell or transfer returned cannabis or cannabis products to another consumer;

(25) Knowingly or negligentlypermit a consumer to open or alter a package containing cannabis or a cannabis product or otherwise remove cannabis or a cannabis product from packaging required by this rule within the premises or in an area that the licensee controls;

(26) Knowingly or negligently permit a consumer to bring cannabis or cannabis products onto the premises except for cannabis or cannabis products being returned for refund or exchange as allowed by this rule;

(27) Sell any item not allowed under this rule or any of the following items:

(a) Pet or animal food, treats or other pet or animal products containing cannabis;

(b) Injectable cannabis; or

(c) Any other cannabis products not meant for human consumption or use;

(28) Sell mother plants, mature cannabis plants or tissue cultures;

(29) Use any electrical equipment, including but not limited to display lighting, not listed as agency approved including UL, ETL, and CSA; or

(30) Engage in the sale of cannabis seeds, cannabis plants, cannabis or cannabis products if mandatory testing, if applicable, is not verified or verifiable with certificate of analysis, or if testing reports unsafe levels of potentially harmful substances.

(D) Controlling Access to Retail Sales Areas. The cannabis store or nursery cultivation facility shall maintain control of areas of the premises designated for retail sales by ensuring that any minor entering the licensed facility is accompanied by a parent, guardian or custodian who is at least 21 years of age, and by verifying the age of any consumer before completing the retail transaction.

(E) Curbside Pickup of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products. A cannabis store may permit curbside pickup by adult use consumers of adult use cannabis and/or cannabis products if:

(1) The licensee has indicated that it will be conducting curbside pickup on its facility plan of record;

(2) The licensee conducts curbside pickup only in those areas designated for curbside pickup on the licensee’s facility plan of record;

(3) The licensee has implemented all required security measures for curbside pickup;

(4) The licensee verifies the age and identity of the purchaser, to confirm that the individual is at least 21 years of age and is the person who initiated the order, prior to conveying to the purchaser any package containing a sales order;

(5) The adult use cannabis and/or cannabis products are appropriately packaged and labeled in accordance with Section 5 of this rule; and

(6) All sales of cannabis and cannabis products conducted via curbside pickup are appropriately tracked in accordance with section 2 of this rule.

(F) Delivery of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products. A cannabis store may deliver adult use cannabis and/or cannabis products to consumers at a private residence, hotel or other business if the licensee:

(1) Has indicated that it will be conducting delivery of adult use cannabis and/or cannabis products on its facility plan of record;

(2) Has implemented all required security measures for delivery;

(3) Ensures that any employees delivering adult use cannabis and/or cannabis products have been trained to properly verify the age and identity of the adult use consumer purchasing and receiving adult use cannabis or cannabis products. Such training shall include, at a minimum:

(a) Instruction on how to verify the authenticity of the government-issued, unexpired photo identification produced by a consumer.

(b) Instruction on a policy maintained by the licensee requiring all employees to verify that any adult use consumer receiving a sales order via delivery is:

(i) At least 21 years of age; and

(ii) The individual who initiated the purchase of the cannabis or cannabis products included in the delivery order; and

(c) Instruction requiring the termination of a sale via delivery if the employee conducting the delivery is unable to verify the age or identity of the consumer receiving the cannabis or cannabis products, or if the consumer is visibly intoxicated;

(4) Conducts all deliveries of sales orders by motor vehicle only;

(5) Provides adequate refrigeration for perishable cannabis products in transit;

(6) Ensures that any employee delivering adult use cannabis and/or adult use cannabis products does not convey a sales order to a purchaser if:

(a) The purchaser is not at least 21 years of age;

(b) The purchaser’s identity cannot be verified; or

(c) The purchaser is visibly intoxicated;

(7) Ensures that deliveries are made only to private residences, hotels and other businesses that are not located in any drug free safe zone designated by a municipality;

(8) Ensures that the licensee has the express written permission of an authorized employee or other authorized agent of any hotel or business where the licensee makes deliveries to consumers;

(a) Authorization to make deliveries to a hotel or other business shall be on forms provided by the Department; and

(b) The licensee shall retain the written authorization and shall provide a copy to the Department, or the hotel or business owner, or other authorized agent of any hotel or business, upon request.

(9) Ensures that the order is appropriately packaged and labeled in accordance with section 5 of this rule;

(10) Ensures that all retail sales of cannabis and cannabis products conducted via delivery are accompanied by a sales delivery manifest and appropriately tracked in accordance with section 2 of this rule.

Nothing in this paragraph shall be construed to require an employee delivering a sales order to a private residence to enter the private residence in order to complete the retail sale.

(G) Sales of Cannabis and Cannabis Products at Specified Events. A cannabis store licensee that has obtained from the Department a permit to conduct sales of adult use cannabis and cannabis products at a specified event outside the licensed premises of a cannabis store may do so only in accordance with the requirements of the rules governing the adult use cannabis program and 28-B MRS, ch. 1.

The licensee shall:

(1) Operate in accordance with any terms, conditions or limitations included in the written authorization issued by the municipality where the specified event will occur.

(2) Operate in accordance with any terms, conditions or limitations included in the written authorization issued by the property owner of the property where the specified event will occur, if applicable.

(3) Implement all security measures required by this rule and indicated in the licensee’s application for a specified event permit.

(4) Ensure that any employees conducting sales at the specified event have been trained to properly verify the age and identity of the adult use consumer purchasing the cannabis and cannabis products. Such training shall include, at a minimum:

(a) Instruction on how to verify the authenticity of the government-issued, unexpired photo identification produced by a consumer.

(b) Instruction on a policy maintained by the licensee requiring all employees to verify that an adult use consumer purchasing cannabis or cannabis products at a specified event is:

(i) At least 21 years of age; and

(ii) Not visibly intoxicated.

(5) Ensure that adequate refrigeration for perishable edible cannabis products is functional and available within the permitted premises.

(6) Ensure that all cannabis and cannabis products available for sale at the specified event are packaged and labeled in accordance with the requirements of this rule.

(7) Ensure that it has obtained all local and state licenses, permits, and certificates necessary for the conduct of sales of cannabis and cannabis products at a location that is not the licensee’s licensed premise.

(8) Secure all cannabis and cannabis products offered for sale at the specified event in a limited access area within the permitted premises in a manner that prevents unauthorized access to the cannabis and cannabis products by a consumer or minor.

(9) Ensure that no cannabis or cannabis products offered for sale at the specified event is stored overnight on the permitted premises or any location other than the licensed premises of the cannabis store.

(10) Ensure that all cannabis and cannabis products offered for sale at a specified event are transported and tracked in accordance with the requirements of 28-B MRS and this rule.

(11) Display signs at the entrance to the permitted premises and at every point of sale notifying consumers that cannabis and cannabis products cannot be consumed on the permitted premises. Such signage shall be at least 8.5 inches high and 11 inches wide, composed of letter not less than a half inch in height that shall state: “Pursuant to State Law: Customers may not use or consume cannabis or cannabis products on these premises.”

(12) Ensure that all sales transactions conducted on the permitted premises are recorded on video in a manner that captures, to the extent practicable, only the individual making the purchase.

(13) Ensure that minors are not permitted inside the permitted premises for the specified event.

(14) Immediately cease any sales of cannabis or cannabis products at the specified event, and immediately notify the Department if either the municipality, or as applicable, the property owner, rescinds or otherwise revokes their written authorization for the licensee to conduct sales at the specified event.

(H) Display of Seeds, Seedlings, Immature Cannabis Plants, Cannabis and Cannabis Products. Cannabis seeds, seedlings, immature cannabis plants, cannabis and cannabis products may only be displayed in such a way that prevents access to persons who are not licensees or employees.

(1) As permitted under the type of license, cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products may be displayed in such ways that prevents access to persons who are not licensees or employees.

(2) As permitted under the type of license, displays accessible by persons other than licensees and employees may include packaging and marketing materials for cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products and mock examples, provided that no actual cannabis seedlings, immature cannabis plants, cannabis or cannabis products are present.

(I) Point of Sale Areas. A cannabis store or nursery cultivation facility must keep all permitted cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products in limited access areas where access is restricted to licensees and employees. Except that a licensee may receive and verify deliveries of cannabis and cannabis products within the retail sales area so long as the cannabis or cannabis products delivered remain at all times within the care and control of an individual identification cardholder.

(1) No person 21 years of age or older who is not a licensee or employee may handle cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis and cannabis products in the point of sale area unless a licensee or its employee supervises the person at all times.

(2) A person 21 years of age or older who is not a licensee or employee may only handle cannabis seeds, cannabis seedlings, immature cannabis plants, cannabis or cannabis products without the supervision of a licensee or employee following the completion of a sale.

(J) Sales Tax. A cannabis store or cannabis nursery cultivation facility must track sales and remit sales taxes according to 36 MRS and the rules of the Maine Revenue Service.

(K) Exit Packaging. A licensee that conducts retail sales to consumers, including sales by curbside pickup, delivery or at a specified event, shall ensure that all cannabis and cannabis products are appropriately packaged in containers that are child-resistant and tamper-evident, or are placed in exit packaging that is child-resistant and tamper-evident.

(1) All cannabis and cannabis products other than seedlings or immature plants must leave the licensed premises of a cannabis establishment in child-resistant, tamper-evident packaging.

(a) Cannabis or cannabis products that are not prepackaged in child-resistant containers must be placed into child-resistant exit packaging.

(b) Cannabis or cannabis products that are not prepackaged in tamper evident containers must be placed into tamper evident exit packaging.

(2) A licensee may charge a fee to consumers for exit packaging.

(3) A licensee may sell reusable exit packaging that is child-resistant but not tamper-evident.

(4) A consumer may supply reusable exit packaging, so long as:

(a) The reusable packaging is of a type sold or used by the licensee, and the licensee or employee verifies that it is exit packaging that meets the requirements of this rule;

(b) The licensee or employee verifies that the reusable exit packaging is in sound condition; and

(c) The reusable packaging is used only for cannabis or cannabis products that are prepackaged in tamper-evident packaging and that such sale otherwise meets applicable packaging requirements of 28-B MRS §701(2).

(5) A licensee shall maintain a copy of the certificate showing that all types of exit packaging required to be child-resistant meet the requirements of 16 C.F.R. 1700.15 (1995) and 16 C.F.R. 1700.20 (1995).

(6) A licenseemay use tamper evident tape or seals on exit packaging in order to satisfy the tamper evident requirements of this subsection.

(L) Requirements Applicable to Consumer Samples. A cannabis store may provide a consumer who is at least 21 years of age with samples of adult use cannabis or adult use cannabis products in accordance with the following requirements.

(1) For the purposes of this subsection, each of the following constitutes one consumer sample:

(a) No more than0.5 grams of cannabis flower, whether as unprocessed flower or as an uninfused, raw pre-rolled cannabis cigarette that contains only cannabis flower and trim;

(b) One serving of an edible cannabis product that does not contain more than 10 milligrams of THC;

(c) One cannabis vape cartridge that contains 0.5 grams or less of cannabis concentrate.

(2) A cannabis store may not give an individual consumer more than two consumer samples per day.

(3) A cannabis store may not offer or give a consumer sample to an individual who is visibly intoxicated.

(4) The combined total amount of adult use cannabis and cannabis products purchased and received by an individual as a consumer sample shall not exceed the sales limits described in § 1(8)(B) of this rule.

(5) All consumer samples offered by a cannabis store must pass mandatory testing in accordance with the rules governing the adult use cannabis program.

(6) All consumers samples shall be tracked in accordance with § 2 of this rule.

(7) All consumer samples shall be packaged and labeled in accordance with the requirements of § 5 of this rule.

(8) Under no circumstances may a cannabis store transfer consumer samples to a consumer via curbside pickup, delivery or at a specified event.

(9) A cannabis store may not permit a consumer to open any package containing a consumer sample or use or ingest the consumer sample within its licensed premises.

(9) Requirements Applicable to the Delivery of Adult Use Cannabis or Cannabis Products by Tier 1, Tier 2, or Nursery Cultivation Facilities and Products Manufacturing Facilities. A tier 1, tier 2 or nursery cultivation facility or products manufacturing facility conducting retail sales of adult use cannabis products by delivery shall:

(A) Comply with all applicable requirements of the rules governing the adult use cannabis program and 28-B MRS, including all of the requirements for delivery applicable to cannabis store licensees enumerated in Section 1, sub-§ 8, paragraph F of this rule and all applicable security, recordkeeping, inventory tracking and mandatory testing requirements.

(B) Comply with all applicable requirements, limitations and prohibitions enumerated in §1, sub-§ 8, paragraphs A-C of this rule.

(C) Obtain from the Department of Agriculture, Conservation and Forestry any licenses or certificates necessary to make deliveries of edible cannabis products, if applicable.

(D) Ensure that any cannabis or cannabis products returned by a consumer are destroyed in accordance with this rule.

(E) Remit sales taxes according to 36 MRS and the rules of the Maine Revenue Service.

(F) Only make sales by delivery off the licensed premises to a consumer at a private residence, hotel or other business.

(10) Requirements Applicable to Sample Collectors.

(A) General Requirements. Before collecting samples of cannabis, cannabis concentrate and cannabis products for mandatory testing, a sample collector must:

(1) Obtain an active sample collector license from the Department;

(2) Ensure that all individuals employed by the sample collector who will be collecting samples of cannabis, cannabis concentrate or cannabis products are in possession of a valid IIC issued by the Department;

(3) Ensure that each individual employed by the sample collector who will be collecting samples of cannabis, cannabis concentrate or cannabis products:

(a) Is physically able to perform the duties of a sample collector, with or without reasonable accommodations;

(b) Is trained and able to pass initial and ongoing demonstrations of sample collection in compliance with the Sample Collection SOP;

(c) Completes, when available, 8 hours of initial training on various sampling techniques; and

(d) Completes, when available, 8 hours of periodic refresher training annually; and

(4) Prior to every sample collection for mandatory testing, and in accordance with the sample collection recordkeeping requirements and sample collection SOP published by the Department, contact the cannabis testing facility(ies) conducting the mandatory analyses for instructions regarding the sample collection event, including without limitation:

(a) Sample collection tools to be used by the sample collector based upon the matrices to be sampled;

(b) Sample collection containers necessary to store the samples collected based on the analyses to be conducted;

(c) Sample storage and transportation requirements based upon the matrices sampled and analyses to be conducted; and

(d) Any additional considerations regarding sample collection, transportation, storage or receipt of the samples by the cannabis testing facility(ies) conducting the mandatory analyses.

(B) Prohibited Conduct. In addition to any other restrictions or prohibitions contained in the rules governing the adult use cannabis program, 28-B MRS and any other applicable Federal, State or Local rules or laws, sample collectors are subject to the following prohibitions:

(1) No sample collector or principal or employee of a sample collector may have a direct or indirect financial interest in a cultivation facility, products manufacturing facility, manufacturing facility, cannabis store, registered caregiver or registered dispensary.

(2) No principal of a sample collector may be a registered caregiver.

(3) No sample collector may collect samples for a registered caregiver that is an employee of that sample collector.

(4) Samples of cannabis, cannabis concentrate and cannabis products may not be collected, transported, transferred or destroyed without entering the samples of cannabis, cannabis concentrate or cannabis products into the tracking system required by the Department by 11:59 that same day.

(5) Samples of cannabis, cannabis concentrate and cannabis products may not be stored by the sample collector except during transport from the site where the samples were collected to the cannabis testing facility(ies) conducting mandatory analyses.

(6) Samples of cannabis, cannabis concentrate and cannabis products may not be stored overnight by a sample collector except in exigent circumstances as described in §2 of this rule.

(C) Use of Sample Collection SOP and Best Practices Guide Published by the Department Required. A sample collector must collect samples of cannabis, cannabis concentrate and cannabis products using the Sample Collection SOP and Best Practices Guide published by the Department when collecting samples of cannabis, cannabis concentrate or cannabis products for mandatory testing. A sample collector must document the sample collection event in accordance with the requirements of the rules governing the adult use cannabis program.

(1) The sample collector must keep complete records for each sample collection event conducted.

(2) The sample collector must collect samples in accordance with the Sample Collection SOP published by the Department. The Department may require a sample collector to demonstrate to the Department proper sample collection technique in accordance with the Sample Collection SOP at the request of the Department.

(3) The sample collector must collect samples in accordance with the Best Practices Guide published by the Department.

(4) The sample collector must ensure that at all times the sample collector and its employees are using the correct version of the Sample Collection SOP (Appendix A of 18-691 CMR, ch. 40) and Best Practices Guide available on the Department’s website at: https://www.maine.gov/dafs/ocp/adult-use/applications-forms.

(D) Record Keeping. A sample collector must maintain records in accordance with this rule.

(1) A sample collector must track all samples collected in the inventory tracking system required by the Department.

(2) A sample collector must keep for five years from the date of a sample collection event a copy of all records generated by sample collection event conducted by the sample collector and its employees in accordance with this rule.

(3) A sample collector must keep personnel records that include information on any training on sample collection received by its employees and a copy of the Department’s Sample Collection Standard Operating Procedure for Mandatory Testing (Appendix A of 18-691 CMR, ch. 40) signed by each IIC holder who will be collecting samples.

(4) A sample collector must keep an up-to-date list of all personnel and vehicles used to conduct sample collection or the transport of samples from the site where the samples are collected to cannabis testing facilities for analyses.

(5) A sample collector must make all required records available to the Department at its request. A sample collector must allow access to the Department to any premises where records are kept, including without limitation all vehicles used to transport samples of cannabis, cannabis concentrate and cannabis products and any physical or electronic location used to store all documents required by this rule.

(E) Waste Disposal. A sample collector may not dispose of waste generated by the collection, storage or transport of samples.

(1) Waste generated by the collection, storage or transport of samples must be disposed of by the licensee from which the samples were collected.

(2) If samples of cannabis, cannabis concentrate or cannabis products collected and transported by a sample collector are rejected by a cannabis testing facility, the sample collector will return the samples of cannabis, cannabis concentrate or cannabis products to the licensee from which the samples were collected.

(F) Security. A sample collector will employ security measures adequate to ensure that samples of cannabis, cannabis concentrate and cannabis products are not stolen or otherwise diverted during the course of sample collection, transport and as necessary due to exigent circumstances, storage.

(11) Recordkeeping Requirements for Sample Collection, Transport and Receipt.

(A) Sample Collection Records. Licensees collecting samples for mandatory testing, including self-sampling licensees, sample collectors, and cannabis testing facility staff collecting samples for mandatory testing must retain records of every sample collection event in accordance with this subsection. Licensees may use their own sample collection form, a form provided by the cannabis testing facility conducting the mandatory analyses or a sample collection log or any other format that the licensee can make available to the Department upon request, so long as such records include all information required by this rule. A licensee who is not a self-sampling licensee shall provide the licensee for whom the licensee is collecting samples for mandatory testing with a copy of all sample collection records generated by the sample collection event.

All sample collection records shall be retained for a minimum of 5 years and shall include, for every sample collection event, all information required by this rule and the Sample Collection SOP in Appendix A of 18-691 CMR, ch. 40, including without limitation:

(1) The name and individual identification card number of the individual identification cardholder collecting samples for mandatory testing;

(2) Instructions, if any, provided to the self-sampling licensee or sample collector licensee by the cannabis testing facility conducting the mandatory analyses regarding the following:

(a) Sample collection tools to be used to collect samples of cannabis, cannabis concentrate or cannabis products, based upon matrix type sampled and mandatory analyses required;

(b) Sample storage containers to be used to collect and store the samples of cannabis, concentrate or cannabis products, based upon matrix type sample and mandatory analyses required;

(c) Special instructions regarding sample storage and transport, including without limitation:

(i) The temperature at which the samples should be stored and transported;

(ii) The environmental humidity at which the samples should be stored and transported;

(iii) Any instructions regarding sample storage and transport required to maintain the integrity of the samples during storage and transport; and

(iv) Any other instructions regarding sample receipt by the cannabis testing facility;

(3) Any anomalies noted by the sample collector in the batch sampled at the time of the sample collection event;

(4) The type, number and weight of each sample storage container used to store sample increments collected;

(5) The total weight of the composite sample and the weight of any additional sample increments collected for homogeneity testing; and

(6) An attestation signed by the individual identification cardholder who collected the samples for mandatory testing and affixed tamper evident seals to every sample container in accordance with the Department’s Sample Collection SOP, that is also signed by an individual identification cardholder who witnessed the tamper evident seals being affixed to the sample containers. All signatures must be either wet or digital. The attestation must include, without limitation, the following:

(a) A statement attesting that the self-sampler or sample collector:

(i) Collected all samples in accordance with the Department’s Sample Collection SOP, Best Practices Guide and any instructions provided by the cannabis testing facility conducting the mandatory analyses;

(ii) Collected all sample increments randomly and that the self-sampler or sample collector did not intentionally enrich, alter, tamper with, degrade or otherwise alter the sample increments collected;

(iii) Was not asked by, nor allowed, another individual identification cardholder to enrich, alter, tamper with, degrade or otherwise alter the sample increments collected;

(iv) Sealed the sample collection containers with tamper evident seals in the presence of the witness countersigning the attestation; and

(v) Acknowledges that any intentional misrepresentation in the sample collection records or any attempt at tampering with the samples collected is grounds for revocation of the individual’s individual identification card and/or revocation, suspension or limitation of the sampling licensee’s license; and

(b) A statement attesting that the witness:

(i) Was present for the sealing of the sample containers with the tamper evident seal;

(ii) Did not witness the sample collector enrich, alter, tamper with, degrade or otherwise alter the sample increments when affixing the tamper evident seals to the sample containers;

(iii) Did not enrich, alter, tamper with, degrade or otherwise alter the sample increments when the tamper evident seals were affixed to the sample containers; and

(iv) Acknowledges that any intentional misrepresentation by the witness is grounds for revocation of the witness’ individual identification card and/or revocation, suspension or limitation of the sampling licensee’s license.

(B) Sample Transportation Records. Except as permitted by this rule, the licensee that collected samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must transport those samples to the cannabis testing facility conducting the mandatory analyses. A cannabis testing facility that did not collect the samples for mandatory testing, but that offers a service to transport samples collected by self-sampling licensees to its testing facility for mandatory testing, may offer to transport samples from self-sampling licensees to the cannabis testing facility for mandatory analyses. A cannabis testing facility may not transport samples to any other licensee unless otherwise authorized by this rule or 18-691 CMR, ch. 5. All samples of cannabis, cannabis concentrate and cannabis products must be appropriately tracked in the Department’s inventory tracking system and accompanied by a transport manifest in accordance with this rule.

(C) Sample Receipt Records. A cannabis testing facility must maintain sample receipt records in accordance with the cannabis testing facility’s quality system and must at all times maintain chain-of-custody records for all samples of cannabis, cannabis concentrate and cannabis products received by the cannabis testing facility from the time of receipt through storage, analysis and destruction. A cannabis testing facility may require any licensee delivering samples to the cannabis testing facility to record sample information on a form created by or in a database maintained by the cannabis testing facility, in addition to any sample collection records maintained by the licensee. The cannabis testing facility conducting mandatory analyses is responsible for maintaining all sample receipt records and must make those records available to the Department upon request.

§2 - Tracking, Transportation, Returns and Records Retention.

(1) General Tracking Requirements. In addition to any requirements specific to tracking within each license type, all licensees of cannabis establishments must meet minimum requirements.

(A) Cannabis establishment licensees must track, using the inventory tracking system specified by the Department, cannabis, cannabis concentrates and cannabis products from immature plant to point of sale.

(B) In addition to any tracking requirements specific to license type, a licensee must record the following data in the tracking system as applicable:

(1) A complete inventory of all seeds, seedlings (including clones and tissue cultures), immature cannabis plants, mother plants and mature cannabis plants, cannabis, cannabis concentrate and cannabis products in the possession, control or ownership of the licensee;

(2) Any changes to the cannabis establishment’s inventory of any cannabis or cannabis products;

(3) When plants are partially or fully harvested or destroyed;

(4) When harvest batches of cannabis trim or kief are combined into a single production batch;

(5) When cannabis waste is destroyed;

(6) When an authorized transfer occurs;

(7) Any theft of cannabis;

(8) All sales records, including sales made by delivery or curbside pickup or at a specified event pursuant to a specified event permit, as well as records of any consumer samples distributed by a cannabis store licensee for no remuneration;

(9) All returns of cannabis or cannabis products from a consumer or another licensee;

(10) All mandatory testing results; and

(11) Other information required by the tracking system or specified by the Department.

(C) Implementation and Administration of Tracking System.

(1) Unless excused by the Department, in writing, a cannabis establishment must have an inventory tracking system account activated and functional prior to operating or exercising any privileges of a license. The licensee shall keep and maintain comprehensive records to ensure adequate inventory tracking of any cannabis, cannabis concentrates and cannabis products during the period the licensee is not otherwise using the inventory tracking system.

(2) Licensees may not enter any inventory into the inventory tracking system until the licensee receives from the Department an active license to conduct authorized activities.

(3) Each licensee must designate one individual identification cardholder as an inventory tracking system administrator.

(4) In order to obtain an inventory tracking system administrator account, a licensee or its designee must attend and successfully complete all required inventory tracking system training. A licensee may apply for an account and training once they receive a conditional license from the Department.

(5) The Department may also require additional ongoing, continuing education for the inventory tracking system administrator to retain his or her inventory tracking system administrator account.

(6) Each licensee is responsible for all costs associated with its use of the tracking system and any associated vendor fees.

(7) A cannabis establishment may designate additional employees or staff who are individual identification cardholders as inventory tracking system users. The establishment shall ensure that all individuals who are granted inventory tracking system user account access for the purposes of conducting inventory tracking functions in the system are trained by inventory tracking system administrators in the proper and lawful use of the inventory tracking system.

(D) General Inventory Tracking System Use.

(1) All inventory tracking activities at a cannabis establishment licensee must be tracked through use of the inventory tracking system. A licensee must reconcile all on-premises and in-transit cannabis, cannabis concentrates and cannabis product inventories, and sales records, including sales conducted by delivery, each day in the inventory tracking system by 11:59 P.M. that same day.

(2) A cannabis establishment must utilize a standard of weights and measures that is supported by the inventory tracking system to track all cannabis, concentrate and cannabis product. A scale used to weigh product prior to entry into the inventory tracking system shall be certified in accordance with 10 MRS, chapter 501.

(3) A licensee shall maintain the security of the inventory tracking system, as follows:

(a) A cannabis establishment licensee must train and authorize any new inventory tracking system users before they may access inventory tracking system or input, modify or delete any information in the inventory tracking system.

(b) A cannabis establishment licensee must cancel any inventory tracking system administrators and inventory tracking system users from their associated inventory tracking system accounts once any such individuals are no longer employed by the licensee or at the licensed premises.

(c) A cannabis establishment licensee is accountable for all actions employees take while logged into the inventory tracking system or otherwise conducting cannabis, cannabis concentrates and cannabis product inventory tracking activities.

(d) Each individual user is also accountable for all of his or her actions while logged into the inventory tracking system or otherwise conducting cannabis, cannabis concentrates or cannabis product inventory tracking activities, and shall maintain compliance with all relevant laws.

(e) Each individual user shall only log activities in the inventory tracking system under the user’s own unique inventory tracking system user account.

(4) A cannabis establishment may use separate software applications to collect information to be used by the business, including secondary inventory tracking or point of sale systems.

(a) A licensee must ensure that all relevant inventory tracking system data is accurately transferred to and from the inventory tracking system for the purposes of reconciliations with any secondary systems.

(b) A cannabis establishment must preserve original inventory tracking system data when transferred to and from a secondary application(s). Secondary software applications must use the inventory tracking system data as the primary source of data and must be compatible with updating to the inventory tracking system.

(E) Conduct While Using Inventory Tracking System.

(1) A cannabis establishment and its designated inventory tracking system administrator(s) and inventory tracking system user(s) shall enter data into the inventory tracking system that fully and transparently accounts for all inventory tracking activities and authorized transfers. Both the cannabis establishment and the individuals using the inventory tracking system are responsible for the accuracy of all information entered into the inventory tracking system. Any misstatements or omissions may be considered a major license violation affecting public safety.

(2) Individuals entering data into the inventory tracking system shall only use that individual’s inventory tracking system account.

(F) Procedures for Inventory Tracking System Temporary Outages. If at any point a cannabis establishment loses access to the inventory tracking system for any reason:

(1) The cannabis establishment shall immediately notify the Department and shall keep and maintain comprehensive records detailing all cannabis, cannabis concentrates and cannabis product tracking inventory activities that were conducted during the loss of access;

(2) Once access is restored, all cannabis, cannabis concentrates and cannabis product inventory tracking activities that occurred during the loss of access must be entered into the inventory tracking system and the Department shall be notified that access has been restored;

(3) A cannabis establishment must document when access to the system was lost, the cause of system loss and when it was restored; and

(4) Unless permitted in writing by the Department, a cannabis establishment shall not transport or receive any cannabis, or cannabis product to or from another cannabis establishment until such time as access is restored and all information is recorded into the inventory tracking system.

In the event of a statewide or regional outage of the Department’s inventory tracking system that is expected to last more than 24 hours, the Department will promptly notify licensees of such outage and any interim recordkeeping procedures or requirements for the duration of the outage.

(G) System Notifications.

(1) A cannabis establishment must monitor all compliance notifications from the inventory tracking system. The licensee must resolve the issues detailed in the compliance notification in a timely fashion. Compliance notifications shall not be dismissed in the inventory tracking system until the cannabis establishment resolves the compliance issues detailed in the notification.

(2) A cannabis establishment must take appropriate action in response to informational notifications received through the inventory tracking system including but not limited to notifications related to enforcement alerts and other pertinent information.

(H) Lawful Activity Required. Proper use of the inventory tracking system does not relieve a licensee of its responsibility to maintain compliance with all laws, rules and other requirements at all times.

(I) Inventory Tracking System Procedures Must Be Followed. A cannabis establishment must utilize the inventory tracking system in conformance with this rule and inventory tracking system procedures, including but not limited to:

(1) Properly indicating the creation of a harvest batch or production batch including the assigned harvest batch or production batch number;

(2) Accurately identifying the cultivation rooms where each plant or as applicable, group of plants, is located on the licensed premises;

(3) Accurately identifying when inventory is no longer on the licensed premises or is part of an authorized transfer;

(4) Properly indicating that a test batch is being used as part of achieving process validation;

(5) Accurately recording all remediation steps taken to remediate any batches of cannabis or cannabis products that fail mandatory testing;

(6) Properly indicate test results from a cannabis testing facility, as applicable;

(7) Accurately indicating the inventory tracking system item category for all cannabis and cannabis products;

(8) Accurately recording, as applicable, the actual wholesale or retail price of all cannabis and cannabis products sold or otherwise transferred; and

(9) Accurately including a note explaining the reason for any destruction of cannabis and/or cannabis products, and reason for any adjustment of weights to inventory tracking system packages.

(2) Transportation.

(A) Transport Manifest. A transport manifest, generated by the tracking system, is required for all authorized transfers of cannabis or cannabis products, including samples of cannabis, cannabis concentrate and cannabis products for mandatory testing, to another licensee. The transport manifest does not take the place of a chain-of-custody form that may be required of the licensee. Transport authorized by this rule shall be by motor vehicle only, except that islands not serviced by roads or bridges may be accessed by watercraft provided cannabis is secured during transport by motorized watercraft. For the purposes of this subsection, “watercraft” does not include personal watercraft like a jet ski or human-propelled watercraft like canoes, kayaks, paddleboats or paddleboards.

(1) The licensee transporting cannabis or cannabis products including samples for mandatory testing is responsible for entering all required information in the tracking system for the generation of a transport manifest, including without limitation, the following information:

(a) The name, contact information, licensed premises address and license number of the licensee transporting the cannabis or cannabis products;

(b) The name, contact information, licensed premises address and license number of the licensee receiving the transported cannabis;

(c) Product name and quantities (by weight or unit) of all cannabis and/or cannabis product, including samples, contained in each transport;

(d) The date of transport and approximate time of departure;

(e) Arrival date and estimated time of arrival;

(f) Delivery vehicle make and model and license plate number or watercraft registration number, as applicable;

(g) Name and signature of the licensee or individual identification card holder and their identification card number accompanying the transport;

(h) Name and signature of the licensee or individual identification card holder and their identification card number receiving the authorized transfer; and

(i) Damaged or refused cannabis or cannabis products being returned to the original seller, in the case of samples of cannabis, cannabis concentrate or cannabis products for mandatory testing collected by a sample collector, the sample collector will return any samples rejected by a cannabis testing facility to the licensee from which the samples were collected;

(2) A transport manifest must be prepared for each cannabis establishment that will receive cannabis or cannabis products. Each transport manifest must specify a single authorized destination.

(3) A licensee may not void or change a transport manifest after departing from the originating premises.

(4) A licensee must accept returns of any cannabis or cannabis products, including samples, that are refused by the intended recipient and appropriately track and dispose of the same.

(B) Transport Manifest Exception. When cannabis or cannabis products are transferred by way of authorized transfer between two licenses controlled by the same licensee, and which do not require the transport of the cannabis or cannabis products outside the boundaries of the premises, then a licensee need not create three copies of the transport manifest. In these cases, the licensee must still follow all requirements of the tracking system.

(C) Transportation of Samples for Research and Development Purposes. A licensee transporting samples of cannabis or cannabis products solely for the purpose of research and development must record such samples in the Department’s inventory tracking system and complete a paper transport manifest on forms provided by the Department. The licensee must make at least 2 copies of the transport manifest; one to be retained by the licensee transporting the samples for research and development testing, and one for the cannabis testing facility receiving the samples for research and development testing.

(D) Sales Delivery Manifest. A sales delivery manifest, generated by the tracking system, is required for all deliveries of cannabis or cannabis products by a cannabis store, tier 1, tier 2 or nursery cultivation facility, or products manufacturing facility licensee to an adult use consumer.

(1) A licensee transporting sales orders of adult use cannabis and cannabis products to adult use consumers is responsible for entering all required information in the tracking system for the generation of a sales delivery manifest, including without limitation, the following information:

(a) The name, contact information, premises address and license number of the licensee transporting the sales order of cannabis and/or cannabis products;

(b) The name and address of the adult use consumer that placed the request for delivery of the sales order;

(c) Item name and quantities (by weight or count) of the cannabis and cannabis products ordered by the consumer;

(d) The date and approximate time of departure;

(e) The date and approximate time of arrival at the delivery address;

(f) Delivery vehicle make, model and license plate number;

(g) Name and individual identification card number of employee delivering the sales order;

(h) Government-issued identification number presented by the consumer receiving the delivery; and

(i) An indication of any cannabis or cannabis products from the sales order that were not delivered to the consumer that requested the order, and the reason the items were not delivered.

(2) A sales delivery manifest must be prepared for each sales order to be delivered to a consumer. A sales order shall only be transferred to the consumer who placed the request for the sales order with the cannabis store after the consumer’s age and identity are verified by the employee making the delivery. Each sales delivery manifest must specify only one delivery destination. An employee may complete delivery of multiple sales orders in one delivery trip.

(3) A licensee may not void or change a sales delivery manifest after departing from the originating licensed premises.

(4) A licensee must accept returns of any cannabis or cannabis products that are refused by the intended recipient and must appropriately track the same.

(5) A licensee shall ensure that the sales delivery record for each delivery is completed in the inventory tracking system by 11:59 P.M. that same day in accordance with the requirements of this rule.

(E) Transportation of Cannabis and Cannabis Products. Cannabis and cannabis products, including samples, must be transported subject to the following requirements:

(1) Cannabis or cannabis products may be transported only from one licensed cannabis establishment to another licensed cannabis establishment, or from a cannabis store, tier 1, tier 2 or nursery cultivation facility, or products manufacturing facility licensee to an adult use consumer pursuant to a request for delivery of a sales order; or to or from the licensed premises of a cannabis store to or from the permitted premises for a specified event in accordance with this rule and 28-B MRS § 504-A;

(2) Samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must be transported by the licensee that collected the samples for mandatory testing from the site where the samples were collected to the cannabis testing facility(ies) performing the mandatory analyses, except that a cannabis testing facility may, at its discretion, offer a service to retrieve samples collected by self-samplers from the cannabis establishment where the samples were collected and transport those samples to the cannabis testing facility conducting the mandatory analyses;

(3) Except as provided in this section, all cannabis or cannabis products being transported must be included in, and accompanied by, a transport manifest or sales delivery manifest generated by the tracking system;

(4) All cannabis or cannabis products, including sales orders for delivery to adult use consumers, being transported must be contained within an enclosed, locked area in the transport vehicle;

(5) A cannabis products manufacturing facility, and as applicable to cannabis stores, tier 1, tier 2 or nursery cultivation facility, or products manufacturing facility licensees delivering sales orders, or a cannabis store transporting cannabis and cannabis products to or from the licensed premises of a cannabis store to or from the permitted premises for a specified event, must provide adequate refrigeration for perishable cannabis product that will be consumed and shall utilize adequate storage facilities and transport methods. This shall include, but not be limited to, potentially hazardous food as defined under the State of Maine Food Code.

(6) The licensee transporting the cannabis or cannabis products must:

(a) Keep cannabis or cannabis products in transit shielded from public view;

(b) Use a vehicle for transport that is:

(i) Insured at or above the legal requirements in Maine; and

(ii) Equipped with, at a minimum, a functional, manufacturer-installed alarm system.

(c) Ensure that only IIC holders are in any vehicle, including trailers, used in transport.

(7) All cannabis or cannabis products must be contained within wholesale containers in the transport vehicle, except that cannabis and cannabis products to be delivered by a cannabis store, tier 1, tier 2 or nursery cultivation facility, or products manufacturing facility licensee to adult use consumers shall be prepackaged in retail units in accordance with § 5 of this rule.

(8) Samples of cannabis, cannabis concentrate and cannabis products for mandatory testing must be transported in appropriately labeled sample collection containers with tamper evident seals affixed.

(9) An IIC holder transporting cannabis or cannabis products to another adult use establishment licensee must carry two copies of each transport manifest during the transportation of cannabis or cannabis products and must:

(a) Give one copy to the receiving licensee following the verification of the transport manifest and transfer of the cannabis or cannabis products; and

(b) Maintain a copy of the transport manifest that must be returned to the cannabis establishment for record-keeping purposes, except that a sample collector licensee will retain this copy of the transport manifest for the sample collector licensee’s records and is not required to return this copy to the cannabis establishment from which the samples were collected;

(10) An employee transporting sales orders of cannabis or cannabis products to adult use consumers must carry one copy of the sales delivery manifest for each order transported in the delivery vehicle. If the receiving consumer is unable or unwilling to accept receipt of some or all of the delivery order, or the cannabis store employee declines to transfer the delivery order:

(a) The employee shall note that the sales order, or a portion thereof, was retained on the sales delivery manifest, as well as the reason for retaining the sales order; and

(b) The employee shall return, that same day, the cannabis and/or cannabis products, along with the sales delivery manifest, to the licensed premises of the cannabis establishment.

(11) In the event of unforeseen exigent circumstances, a sample collector licensee that needs to store samples of cannabis, cannabis concentrate or cannabis products for mandatory testing overnight must store those samples:

(a) Securely in a locked container or locked compartment in the locked vehicle;

(b) In a manner that maintains at all times the recommended temperature range; and

(c) The sample collector must provide contemporaneous written notice via e-mail to the Department’s Compliance Division regarding the nature of the exigent circumstances, the amount of cannabis or cannabis products being stored, the location, the license and IIC number of the person in possession of the cannabis or cannabis products and the expected duration of the circumstances necessitating storage in a vehicle.

(12) Any vehicle transporting cannabis or cannabis products, including a licensee making deliveries to adult use consumers, must travel directly from the shipping licensee to the receiving licensee, including the licensee’s own permitted premises at a specified event, or adult use consumers, for cannabis store licensees making deliveries, and the licensee or individual identification card holder transporting cannabis or cannabis products must not:

(a) Make any stops in between except:

(i) to the destination listed on a transport manifest; to accommodate meal and rest periods required by law, or refueling;

(ii) in the case of an emergency, in which case the shipping licensee shall promptly report, or cause to be reported, the stop and the reasons for the stop to the Department and note the same on the transport manifest; or

(iii) in the case of a licensee making deliveries of sales orders to multiple adult use consumers, to the delivery location for each adult use consumer to whom the licensee is delivering sales orders;

(b) Remove the cannabis or cannabis products from the vehicle until arrival at the destination;

(c) Transfer cannabis or cannabis products to, nor store cannabis or cannabis products in any unlicensed premises; or

(d) Travel with any persons not listed on the transport manifest.

(13) A licensee or individual identification card holder must make a vehicle used for the transport of cannabis or cannabis products immediately available for inspection upon request of the Department.

(14) Upon law enforcement stop or other contact all persons in the vehicle shall identify themselves with their Department-issued individual identification card and all transport manifests.

(F) Receiving Party.

(1) The cannabis establishment receiving cannabis or cannabis products pursuant to an authorized transfer must:

(a) Verify the condition and quantity of cannabis or cannabis products included in the transport manifest;

(b) Record in the tracking system and any other relevant business records any damaged or refused cannabis or cannabis products, or other discrepancies found between the cannabis or cannabis products delivered and the cannabis or cannabis products stated on the transport manifest;

(c) Enter the received cannabis or cannabis products in the tracking system of the receiving party prior to end of business on the day that they are received; and

(d) Provide an authorized signature and individual identification card number of the person receiving the authorized transport on the transport manifest belonging to the party transporting the cannabis or cannabis products, which must be kept by the transporting party for their records.

(2) An employee transporting sales orders of cannabis or cannabis products to adult use consumers must indicate on the sales delivery manifest whether the sales order, or a portion thereof, was retained by the cannabis store employee and the reason the order was rejected by, or otherwise not delivered to, the receiving consumer.

(3) Returns of Cannabis and Cannabis Products. As applicable, a cultivation facility, products manufacturing facility, or cannabis store may make and accept returns of cannabis and cannabis products cultivated, manufactured or sold by the licensee from a consumer or the licensee that received the cannabis or cannabis product from the cultivation facility, products manufacturing facility or cannabis store.

(A) A licensee that makes sales of cannabis or cannabis products to a consumer may accept returned cannabis or cannabis products from a consumer that bought the cannabis or cannabis products from the licensee. Cannabis or cannabis products returned by a consumer to a licensee shall be destroyed and may not be resold or combined with other cannabis or cannabis products for resale. A licensee that conducts retail sales to consumers by delivery is not required to destroy cannabis inventory that was packaged for delivery to a consumer but that was not delivered to the consumer, so long as the packaging remains tamper evident and child resistant. Such cannabis and cannabis products are not considered returned for the purposes of this subsection.

(B) A licensee that sells pre-packaged retail units of cannabis or cannabis products to another licensee may accept returns of some or all of the pre-packaged retail units of cannabis products from that licensee.

(1) A licensee may resell any returned pre-packaged retail units of cannabis or cannabis products without additional mandatory testing so long as:

(a) the cannabis or cannabis products are appropriately tracked in the inventory tracking system;

(b) the packaging and labeling on the pre-packaged retail units is fully intact, unopened, and still in compliance with the packaging and labeling requirements of this rule; and

(c) the cannabis and cannabis products are unadulterated and otherwise in the same condition that the units were in at the time of transfer to the returning licensee;

(2) A licensee may unpackage and repurpose pre-packaged retail units of cannabis or cannabis products returned by a licensee and combine the cannabis or cannabis products with other cannabis or cannabis products. Any unpackaged and repurposed cannabis or cannabis products that were returned shall constitute the creation of a new production batch and the resulting batch will be subject to the inventory tracking and mandatory testing requirements of the rules governing the adult use cannabis program.

(C) A cultivation or products manufacturing facility may accept returns of cannabis or, as applicable to products manufacturing facilities, cannabis products, that the licensee transferred to another cultivation or products manufacturing facility in wholesale containers and may repurpose that cannabis or cannabis, subject to the inventory tracking and mandatory testing requirements of the adult use cannabis program.

(D) Under no circumstances may a licensee repurpose or otherwise combine cannabis or cannabis products that were returned by another licensee if the receiving licensee knows, or has reason to believe, that the returned cannabis or cannabis product is adulterated or otherwise contaminated with harmful chemicals, including heavy metals, or pesticides. A licensee shall destroy such cannabis or cannabis products.

(E) Nothing in this subsection shall be construed to require a licensee to accept returns of cannabis or cannabis products cultivated, manufactured, packaged, labeled, or otherwise transferred by that licensee.

(4) Retention and Department Inspection of Business Records.

(A) Unless otherwise indicated, all business records created and maintained pursuant to the rules governing the adult use cannabis program and 28-B MRS shall be retained by a licensee at minimum for a period comprising the current tax year and the six (6) immediately preceding tax years. Unless otherwise specified, business records may be maintained and stored electronically, provided that such records can be reproduced on paper upon request.

(B) The Department shall provide at least 24 hours notice to a licensee prior to inspecting or auditing the licensee’s business records, except that the Department may inspect and review at any time business records submitted by a licensee through the inventory tracking system.

§3 - Advertising.

(1) Prohibitions.

(A) In the course of promoting its brand or the brand of another licensee, cannabis or cannabis products, a cannabis establishment or licensee may not advertise in a manner:

(1) That targets minors or contains subject matter or an illustration that targets minors;

(2) That promotes irresponsible use;

(3) That promotes activity that is illegal under Maine law;

(4) That is contrary to or in direct violation of state or federal consumer protections; or

(5) That otherwise presents a significant risk to public health and safety.

(B) Advertising for a cannabis establishment may not:

(1) Contain statements that are deceptive, false or misleading;

(2) Display consumption of cannabis or cannabis products;

(3) Include claims related to potency (beyond listing of cannabinoid content);

(4) Depict activities or conditions considered risky when under the influence of cannabis, such as operating a motorized vehicle, boat or machinery, being pregnant or breastfeeding;

(5) Contain any content that targets minors, including any subject matter or illustrations that target minors or images or other depictions of minors;

(6) Contain any imitation of candy, sweets or snack food advertising, including any imitation of advertising used for branded candy, sweets or snack food;

(7) Include the term “candy” or “candies”, or any imitation of the names of branded candy, sweets or snack food;

(8) Encourage the transportation of cannabis or cannabis products across state lines or otherwise encourage illegal activity;

(9) Assert that cannabis or cannabis products are safe because they are regulated by the Department or have been tested by a testing facility or otherwise make claims that any government agency endorses or supports cannabis;

(10) Make claims that cannabis has curative or therapeutic effects;

(11) Contain any health or physical benefit claims, including but not limited to health or physical benefit claims on labels or packaging; or

(12) Contain material that encourages excessive or rapid consumption.

(C) No licensee or agent of a licensee may:

(1) Make any deceptive, false or misleading assertions or statements on any informational material, any sign or any document provided to a consumer;

(2) Distribute handbills in public areas or on publicly owned property;

(3) Utilize television, radio, print media or internet advertising targeted at minors or traditional media outlets or social media outlets that target minors. Licensees or an agent of a licensee must take reasonable steps to ensure that any mass marketing or advertising does not target minors, including, for example, using marketing information from the vendor or employing age verification techniques commonly used in internet advertising to avoid reaching minors;

(4) Advertise within a prohibited distance of the property line of an existing public or private school, which shall be:

(a) A distance of 500 feet or more as established by the municipality in which the advertising is located;

(b) A distance of 500 feet or more as established by the Maine Land Use Planning Commission for advertising located in unorganized or deorganized areas; or

(c) A distance of 1,000 feet if no other distance has been set by a municipality or the Maine Land Use Planning Commission.

(5) Engage in advertising via marketing directed towards location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is 21 years of age or older and includes a permanent and easy opt-out feature; or

(6) Permit use of the licensee’s trademarks, brands, names, locations or other distinguishing characteristics for third-party use on advertising in a manner that does not comply with this section or any other statute, rule or regulation.

(D) In the event a third-party has used licensee brand, trademarks, brands, names, locations or other distinguishing characteristics in an advertisement that does not comply with this section or any other statute, rule or regulation, the licensee must immediately notify the Department, issue a cease-and-desist order to the third-party and pursue appropriate legal action.

(2) Websites. In addition to complying with the advertisement criteria and prohibitions outlined in this section, a cannabis establishment advertising on a website must utilize appropriate measures to ensure that individuals visiting the web page are over 21 years of age.

(3) Required Statements. A licensee must include the following statements, either in print or audio, on all print, television, radio and internet advertising in font size legible to the viewer or at a volume and speed that is readily understandable by the average listener:

(A) “For use only by adults twenty-one years of age and older.”

(B) The license number of the cannabis establishment.

(4) Branding and Logos. A licensee may utilize a brand name or brand names and a logo or logos for the marketing, advertising or other promotion of the licensee’s business, cannabis or cannabis products, provided that the use of the brand name or logo in advertising, marketing, signage, non-cannabis items (such as clothing, lighters or stickers), packaging and labeling does not violate the requirements of the rules governing the adult use cannabis program.

(5) Objectionable and Non-Conforming Advertising. The Department reserves the right to take action, including the use of punitive measures, against any licensee who fails to comply with the advertising provisions of this section, including, without limitation, specifying a period of time by which the licensee shall cease the non-compliant advertising and remove any advertising still being published or displayed.

(6) Voluntary Sign, Advertising and Marketing Review. A licensee may submit to the Department a request for approval of any sign, advertisement or marketing materials it intends to use. For the purposes of this subsection, “sign” includes vehicle wraps as well as signs placed at a fixed location. Such a request for approval shall be submitted on forms provided by the Department and shall include the following information, as applicable:

(A) A digital or physical sample of the sign, advertisement or marketing materials for which approval is requested, including a description of, as applicable:

(1) The location(s) where the sign(s) will be placed; or

(2) The time(s), place(s) and manner(s) the advertisement or marketing materials will be used.

(B) A description of the target audience for any advertisement or marketing materials, including market research into the distribution or audience for any event, periodical, television or radio station, or online streaming service, social media outlet or other website where the advertisement or marketing materials may be used.

(C) If applicable, any additional information required on the sign, advertisement, and marketing approval request form provided by the Department and available on the Department’s website.

(7) Approval or Rejection of Submitted Signs, Advertising or Marketing. The Department may refuse to approve any sign, advertising or marketing that is not in compliance with the requirements of this rule, or if the licensee does not provide complete or adequate information to the Department.

(A) Within 30 days of receiving all applicable information regarding the sign, advertising or marketing materials for which approval is requested, the Department shall issue a decision in writing to approve or reject any sign, advertisement or marketing materials submitted for review. Any decision rejecting a submitted sign, advertisement or marketing material shall state the reasons for denial.

(B) Signs, advertisements or marketing materials approved by the Department shall be issued an approval number. Approval is issued for and based upon the actual sample or samples and additional information provided by the licensee and may not be construed to indicate approval of any variation of the sign, advertisement, or marketing materials not initially approved.

(C) Licensees shall maintain a record of each of the licensee’s signs, advertisements, and marketing materials approved by the Department including the date of approval and the approval number. A licensee shall print the Department-issued approval number on any sign, advertisement or marketing materials that have been approved by the Department.

(D) Reviews of signs, advertisements and marketing materials are licensee-specific and non-transferrable, except that a cannabis store licensee may rely on Department approval granted to a cultivation facility or products manufacturing facility licensee’s advertisements or marketing materials so long as the cannabis store licensee does not alter or obscure any portion of the approved advertisements or marketing materials.

(8) Marketing Between Licensees and Employee Samples.

(A) Trade Samples.

(1) Regulation of Trade Samples. Licensees may not provide samples of seeds, seedlings, immature cannabis plants, mother plants or mature cannabis plants to other licensees. As authorized in this subsection, trade samples may be provided only by cultivation facilities, with the exception of nursery cultivation facilities, and product manufacturing facilities and:

(a) Must be provided solely for the purposes of business to business marketing;

(b) May not be sold or otherwise provided for payment or consideration, including swapping samples among licensees;

(c) Must be conveyed by way of authorized transfer in accordance with all tracking requirements;

(d) Must be packaged and labeled in accordance with section 5 of this rule;

(e) May not be consumed on the premises of the licensee providing or receiving the sample;

(f) May not be sold or conveyed to another licensee or consumer; and

(g) May not be provided for any payment or consideration in contravention of sales and excise tax requirements.

(2) Cultivation Facilities. Cultivation facilities, with the exception of nursery cultivation facilities, may provide trade samples of cannabis grown at the facility to licensed products manufacturing facilities or cannabis stores.

(3) Products Manufacturing Facilities. Products manufacturing facilities may provide trade samples of cannabis products to licensed cannabis stores, or other licensees conducting retails sales to consumers by delivery, in accordance with this subsection.

(4) Trade Sample Limits. No samples of cannabis or cannabis products shall be permitted to be sold or otherwise transferred or conveyed to consumers. A licensee is limited to providing the following aggregate amounts of trade samples to an authorized individual recipient licensee in a calendar month period:

(a) Edible cannabis products containing less than five grams of THC, which is easily divisible into servings of 10 mg of THC or less;

(b) Cannabis concentrate containing 10 grams of THC; and

(c) Two- and one-half ounces of cannabis.

(B) Employee Samples.

(1) Employee Sampling. A licensee may provide samples of cannabis and cannabis products to its employees for the purposes of research and development or employee education. As authorized in this paragraph, employees of a cultivation facility, products manufacturing facility or a cannabis store licensee may be provided with samples of cannabis or cannabis products and:

(a) Under no circumstances may an employee be required to accept or consume samples from a licensee;

(b) Such samples must have passed all mandatory testing and be provided solely for the purpose of research and development of cultivars of cannabis or cannabis products not currently sold by licensee to another licensee; or in the case of a cannabis store licensee, for the purpose of providing education to its employees for the purpose of providing information to consumers regarding cannabis or cannabis products sold by the licensee;

(c) Such samples must be accounted for in the Department’s inventory tracking system;

(d) Must be packaged and labeled in accordance with Section 5 of this rule;

(e) May not be consumed on the premises of the licensee by whom the employee is employed;

(f) May not be sold or conveyed to any licensee, consumer or employee other than the employee identified in the Department’s inventory tracking system; and

(g) No samples of cannabis or cannabis products shall be permitted to be sold or otherwise transferred or conveyed to employees or to other licensees, except as outlined in this paragraph. A licensee is limited to providing each authorized individual recipient employee no more than two and one half ounces of a combination of cannabis and cannabis concentrate, that includes no more than 10 grams of cannabis concentrate, in a 90 day period. A licensee may not provide any authorized individual recipient employee with a package of edible cannabis product that contains more than 200 mg of THC, which must be easily divisible into servings of 10 mg of THC or less.

§4 - Waste Management. All wastes must be managed in accordance with federal, state and local requirements. Applicants should contact the Department of Environmental Protection for guidance on applicable regulations.

(1) Hazardous Waste.

(A) Discharges of hazardous waste or other matter in any quantity and under any circumstances must be reported to the Department and in accordance with this section.

(1) Licensees must immediately report discharges to the Department of Public Safety (State Police) unless exempted pursuant to Chapters 800 and 850 of the Department of Environmental Protection’s regulations:

(a) Licensees must call 1-800-452-4664 or 207-624-7000 to notify the Department of Public Safety of a discharge.

(b) Licensees are not required to notify the Department of Environmental Protection.

(2) Licensees must also report any discharges of hazardous matter exceeding the federal reportable quantities in Appendix A to Chapters 800 and 850 of the Department of Environmental Protection’s regulations as follows:

(a) The licensee must call the National Response Center at 1-800-424-8802; and

(b) If the spill goes beyond the boundary of the facility, the licensee must call the local fire department and the local community emergency coordinator.

(2) Cannabis Waste. In addition to any other provisions of 28-B MRS, the rules governing the adult use cannabis program or other applicable laws or rules, non-hazardous cannabis wastes shall be managed in accordance with the following:

(A) A cannabis plant, cannabis, trim and other plant material in itself is not considered hazardous waste unless it is toxic, flammable or a listed waste subject to regulation under Department of Environmental Protection rule Chapter 850.

(B) Non-hazardous cannabis waste that is to be disposed of must be rendered unusable prior to leaving a cannabis establishment by one of the following methods:

(1) Grinding and incorporating the cannabis waste with other ground materials so the resulting mixture is at least fifty percent non-cannabis waste by volume, including:

(a) Food waste;

(b) Yard waste; or

(c) Other wastes approved by the Department.

(2) Using another method approved by the Department and recorded in the licensee’s facility plan of record before implementation.

(3) Sample collector licensees may not dispose of cannabis waste. A sample collector licensee who is in possession of samples of cannabis or cannabis products to be wasted must return such samples of cannabis, cannabis concentrate or cannabis products to the licensee from which the samples were collected.

(C) Composting of cannabis wastes may be subject to the Department of Environmental Protection’s Solid Waste Management rules: Composting Facilities rule, 06-096 C.M.R., chapter 410.

(3) Cannabis Waste Exceptions. The following materials shall not be considered to be cannabis waste requiring treatment to be rendered unusable, provided that they are completely free of all cannabis flowers and leaves with any visible trichomes, and may be disposed of, provided that they are non-hazardous, in accordance with standard waste disposal regulations:

(A) Root balls, soil or growing media;

(B) Stalks of cannabis plants; and

(C) Leaves and branches removed from cannabis clones, seedlings and cannabis plants.

(4) Wastewater. Wastewater generated during the cultivation or manufacturing of cannabis must be disposed of in compliance with all applicable state and local laws and regulations.

(5) Reducing Packaging Waste. A licensee may reuse containers and exit packaging and may permit a consumer to use their own reusable exit packaging in accordance with the packaging and labeling requirements of this rule. A licensee may charge a reasonable fee to a consumer for any reusable containers or exit packaging and a licensee may offer a refund of such fees to consumers who return containers or exit packaging that can be reused or who use their own reusable exit packaging. A licensee must ensure that the reused packaging is clean and does not impart any deleterious substances to the cannabis or cannabis products contained therein.

Nothing in this section shall be construed to exempt a licensee from compliance with the packaging and labeling requirements of section 5 of this rule.

§5 - Packaging and Labeling.

All cannabis, cannabis concentrate and cannabis products, including consumer samples, received by a cannabis store from an authorized transfer, and offered for retail sale by a cannabis store, or as applicable for retail sales to an adult use consumer made by delivery by a nursery cultivation facility, tier 1 or tier 2 cultivation facility or products manufacturing facility, must be packaged and labeled, including all required health and safety warnings, in accordance with this rule, in addition to any other provisions of the rules governing the adult use cannabis program, 28-B MRS and any other applicable laws and rules.

A licensee may not label or package for retail sale adult use cannabis or an adult use cannabis product under this rule, or offer any adult use cannabis or adult use cannabis product as a consumer sample, unless the cannabis or cannabis product has passed all mandatory testing required by Rules for the Mandatory Testing of Adult Use Cannabis, 18-691 CMR, ch. 40 and the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5.

(1) General Packaging and Labeling Requirements for Retail Sale.

(A) General Packaging for Retail Sale Requirements. All cannabis or cannabis products, including each individual serving of consumer samples, must be packaged in containers that:

(1) Are fully enclosable;

(2) Are resealable;

(3) Protect the packaged item from contamination; and

(4) Do not impart any toxic or deleterious substance to the packaged item.

(B) General Labeling for Retail Sale Requirements. In addition to any other requirements pursuant to this rule and 28-B MRS, all cannabis or cannabis product labels must comply with the following:

(1) All required information must be printed directly on, or on a label or sticker affixed directly to, the marketing layer.

(2) Labeling text on any marketing layer must be no smaller than size 6 font or 1/12 inch.

(3) All information included in the labeling requirements, or any other provision of this rule, must be clearly written or printed and in the English language. In addition to the required English label, licensees may include an additional, accurate foreign language translation on the label that otherwise complies with this rule.

(4) All information included in the labeling requirements, or any other provision of this rule, must be displayed on the marketing layer and must be unobstructed and conspicuous. A cannabis establishment licensee may affix multiple labels to the marketing layer, provided that none of the information required by this rule is obstructed. A licensee may also include a QR code or other means of accessing digitally-stored consumer information on the marketing layer, but such a digital code does not excuse the licensee from affixing all required label information to the marketing layer of the cannabis product.

(5) The cannabis store, and as applicable for cultivation and products manufacturing facilities conducting retail sales by delivery to consumers, that conducted the retail sale of the cannabis, cannabis concentrate or cannabis product must ensure that its license number is affixed to the marketing layer of the cannabis, cannabis concentrate or cannabis product, either on the label or on a separate sticker affixed to the item before transferring the item to a consumer.

(6) The label must include the full inventory tracking system-generated identification number of the final batch from which the testing sample for the mandatory testing of the contents of the cannabis or cannabis product was taken.

(7) The label must include the following statement regarding mandatory test results: “Passed mandatory testing”.

(8) The label’s statement of net contents must identify the net weight of the cannabis, cannabis concentrate or cannabis product prior to its placement in the container, using a standard of measure compatible with the tracking system.

(9) The Department-approved universal symbol, as made available by the Department, must appear on the front or most predominantly displayed area of the marketing layer and must be:

(a) No smaller than ¹/₂ inch by ¹/₂ inch;

(b) Placed on a white background and the interior of the icon must remain white;

(c) Maintained in the form provided to the licensee and may not be modified, recreated, stylized, stretched or otherwise distorted;

(d) Reproduced using the black and red color scheme published by the Department; and

(e) Displayed on a white background.

(10) The label must include, as a production date:

(a) For cannabis and cannabis products consisting in whole or in part of cannabis flower or cannabis trim, the date of the harvest batch; or

(b) For cannabis concentrate or cannabis products that were manufactured, the date on which the production batch was created.

(11) Required information may be stated in a peel-back accordion style, expandable, extendable or layered label, so long as the label can be easily identified by a consumer as containing important information and the label is easy to open without the use of tools.

(12) The label shall state cannabinoid content, and, if applicable, gases, solvents and chemicals used in cannabis extraction. Statements regarding contaminants and use of solvents or absence thereof shall not conflict with results reported in an approved cannabis testing facility’s Certificate of Analysis. If a licensee chooses to retest any cannabis or cannabis product for potency in accordance with the rules governing the adult use cannabis program, the licensee shall include in the THC potency information for the cannabis or cannabis product from the retest results.

(13) In addition to any other warning statements required for specific categories of cannabis products, all cannabis and cannabis products must carry the following warning statement in no smaller than 6-point font: “WARNING: Keep out of reach of children and pets. Do not drive or operate machinery while intoxicated. This product can be addictive. Use of this product may be harmful, especially if you are under 21, inexperienced with cannabis,

pregnant, breastfeeding, or at risk for psychiatric problems.”

(14) In addition to all other label information required by this rule based on the kind of adult use cannabis or adult use cannabis product offered as a consumer sample, the label of every package containing an individual consumer sample shall carry the following notice in bold, capital letters that is no smaller than 12-point font: “NOTICE: CONSUMER SAMPLE, NOT FOR RETAIL SALE.”

(15) If the label is affixed to a package that is not child-resistant, the label shall carry the following notice in bold, capital letters that is no smaller than 12-point font: “WARNING: PACKAGE IS NOT CHILD RESISTANT.”

(16) If the label is affixed to a package that is not tamper evident, the label shall carry the following notice in bold, capital letters that is no smaller than 12-point font: “WARNING: PACKAGE IS NOT TAMPER EVIDENT.”

(C) General Labeling Prohibitions. The label for retail sale of cannabis, cannabis concentrate or cannabis products may not:

(1) Depict a human, animal or fruit or the word “candy” or “candies” on the label of any marketing layer, container holding cannabis, cannabis concentrate or cannabis product or intermediate packaging;

(2) Display any content on a container, marketing layer or intermediate packaging making any claims regarding health or physical benefits to the consumer;

(3) Cause a reasonable consumer confusion as to whether the cannabis, cannabis concentrate or cannabis product is a trademarked product;

(4) Violate any state or federal trademark law or regulation;

(5) Include any false or misleading statements;

(6) Obscure identifying information or warning statements;

(7) Reasonably appear to target minors, or contain subject matter or an illustration that targets minors, including but not limited to, depictions of cartoon characters or similar images; or

(8) Report information regarding the quality or potency of the enclosed product, except as reported by a testing facility, unless the label clearly indicates that testing regarding the claim is not required or conducted by a testing facility.

(D) Voluntary Packaging and Labeling Review. A licensee may submit to the Department a request for approval of any packaging or labeling it intends to use. Such a request for approval shall be submitted on forms provided by the Department and shall include the following information as applicable:

(1) A digital or physical sample of label for which approval is requested, or a physical sample of any package for which approval is requested;

(2) As applicable for label reviews, a description of any additional labels or stickers that will be affixed to the label the information contained thereupon;

(3) As applicable for packaging reviews, evidence that the packaging is child resistant and tamper-evident or a description of how the licensee will ensure that any licensee that receives cannabis items in the packaging will place the cannabis items into child resistant and tamper-evident exit packaging before transferring the cannabis or cannabis product to a consumer;

(4) As applicable for label reviews, evidence that the label includes all required information based upon the kind of cannabis or cannabis product wrapped with the label;

(5) As applicable for packaging review, evidence that the packaging is compliant with all requirements applicable to the kind of cannabis or cannabis product to be packaged therein; and

(6) If applicable, any additional information required on the package or label approval request form provided by the Department and available on the Department’s website.

(E) Approval or rejection of submitted packaging and labeling. The Department may refuse to approve any package or label that is not in compliance with the requirements of this rule, or if the licensee does not provide complete or adequate information to the Department.

(1) Within 30 days of receiving all applicable packaging or labeling information, the Department shall issue a decision in writing to approve or reject any package or label submitted for review. Any decision rejecting a submitted package or label shall state the reasons for denial.

(2) Packages or labels approved by the Department shall be issued an approval number. Approval is issued for and based upon the actual sample or samples and additional information provided by the licensee and may not be construed to indicate approval of any variation of the package or label not initially approved, including without limitation variations in:

(a) The font, color or size of any information written on the label;

(b) The colors used in the label;

(c) The placement or size of other label elements, including without limitation: logos, the Department-required universal symbol, Department-required notices or warnings, nutrition fact panels, or ingredients lists;

(d) The material used to make the packaging; or

(e) The mechanism for achieving child resistance or tamper evidence is modified or replaced or otherwise materially different from the mechanism included on the packaging originally approved.

(F) Licensees shall maintain a record of each of the licensee’s packages or labels approved by the Department including the date of approval and the packaging and labeling approval number. A licensee shall print the Department-issued packaging and labeling approval number on any label, or on the label of any packaging, that has been approved by the Department.

(G) Packaging and labeling reviews are licensee-specific and non-transferrable, except that a cannabis store licensee may rely on Department approval granted to a cultivation facility or products manufacturing facility licensee for packages or labels of adult use cannabis or cannabis products offered for sale by the cannabis store, so long as the cannabis store licensee does not alter or obscure any part of the package or label, except as necessary to affix the cannabis store’s license number to the label.

(2) Packaging and Labeling of Trade Samples. Along with all requirements of the rules governing the adult use cannabis program and 28-B MRS, cannabis cultivation and cannabis products manufacturing establishments shall comply with the following minimum packaging and labeling requirements prior to authorized transfer of any trade sample to a licensed cannabis establishment.

(A) Prior to authorized transfer, a trade sample must be placed in a container that is compliant with the packaging for retail sale requirements of this rule.

(B) Prior to authorized transfer to a licensed cannabis establishment, every container containing a trade sample shall be affixed with a label that is compliant with the labeling for retail sale requirements of this rule.

(C) Either the label affixed to the container or the marketing layer shall include the statement in a font that is bold: “Trade Sample. Not for Sale.”

(3) Packaging and Labeling for Retail Sale of Inhaled Cannabis Products.

(A) Retail Sale Packaging for Inhaled Cannabis Products. Prior to authorized transfer to a cannabis store or retail sale by another licensee authorized to conduct retail sales to consumers by delivery, all inhaled cannabis products shall be packaged in accordance with the following:

(1) The container must be fully enclosed on all sides, as follows:

(a) If container is soft sided, it must be four mil or greater in thickness; or

(b) If container has rigid sides, it must have a lid or enclosure that can be placed tightly and securely on the container.

(c) The container must be child-resistant or be placed in child-resistant exit packaging prior to transfer to a consumer.

(2) The container must be tamper-evident or be placed in tamper-evident exit packaging prior to transfer to a consumer. To be tamper-evident:

(a) If the container is soft sided, the opening must be sealed by some means in a manner which would indicate if the container had been opened or tampered with. The tamper evident indicating feature of the opening must not be resealable, and once opened must remain clearly evident that the package has previously been opened; or

(b) If the container is rigid, the opening must contain a tamper evident seal, or the lid or enclosure must have an adhesive band or seal that once opened must remain clearly evident that the package has previously been opened.

(3) The packaging must contain a marketing layer, on which required labeling information can be printed.

(B) Labeling for Retail Sale Requirements for Inhaled Cannabis Products. In addition to the general labeling requirements of this section and any other provisions of the rules governing the adult use cannabis program and 28-B MRS, all inhaled cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

(1) The potency of inhaled cannabis products, expressed as the actual potency results for total THC and total CBD reported by a testing facility on the certificate of analysis;except that if the testing facility reports that total CBD or total THC is “not detected” or “zero” (“0”), then the label may state “0” for those cannabinoids;

(2) If applicable, a list of any solvent(s) used to produce any cannabis concentrate that was used in the manufacturing of the inhaled cannabis product;

(3) If applicable, for cannabis flower or trim that has been treated or remediated, including without limitation treatment or remediation using radiation, ozone, or carcinogenic gases to mitigate mold, mildew, yeast, microbials, or other harmful contaminants, a statement in no less than 6-point font that reads “Contents have been treated with [treatment or remediation method].” For the purposes of this paragraph the use of ozone generators to clean a cultivation room or area that does not have any plants, flower or trim present does not constitute treatment or remediation of cannabis flower or trim;

(4) If applicable, a list of all ingredients used to manufacture the inhaled cannabis product, including identification of the actual or potential presence of any major allergens contained in the cannabis concentrate in accordance with the Food Allergen Labeling and Consumer Protection Act of 2004, 21 U.S.C. § 343 (2010), specifically milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat and soybeans; and

(5) Net content, according to the following:

(a) For inhaled cannabis products, net contents shall be stated in grams, except that inhaled cannabis products containing less than one gram of net content may state the net contents in milligrams.

(b) Variance is allowed as follows:

(i) For inhaled cannabis products composed primarily of cannabis flower or trim, the actual net contents by weight may be as much as 0.1 grams less or 0.5 grams greater than the statement of net content on the label;

(ii) For inhaled cannabis products that are pre-rolled cannabis cigarettes, the actual net contents by weight may be as much as 5% less than or 15% greater than the statement of net content;

(iii) For inhaled cannabis products composed primarily of cannabis extract, the actual net contents by weight may be as much as 5% less or 10% more than the statement of net content.

(c) Inhaled cannabis product labels may state the net contents in ounces in addition to stating the net contents in grams.

(d) In determining the weight of cannabis concentrate in a cannabis product, the weight of any other ingredients combined with cannabis or cannabis concentrate to prepare the cannabis products may not be included.

(4) Packaging and Labeling for Retail Sale of Edible Cannabis Products.

(A) Retail Sale Packaging Requirements for Edible Cannabis Products. Prior to authorized transfer to a consumer, all edible cannabis products shall be packaged in child-resistant containers or exit packaging in accordance with 16 C.F.R. Part 1700 (2018), with a tamper evident seal as follows:

(1) For single-serving edible cannabis products:

(a) Single-serving edible cannabis products must be placed into a child-resistant container that may or may not be resealable.

(b) Single-serving edible cannabis products that are placed into a child-resistant, tamper evident container may be bundled into a larger marketing layer so long as the total amount of THC per marketing layer does not exceed 200 milligrams, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5.

(2) For multiple-serving edible cannabis products:

(a) Every multiple-serving edible cannabis product must be placed into a child-resistant container that is resealable.

(b) A multiple-serving edible cannabis product must not exceed 200 milligrams of total THC per multiple-serving container, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5.

(c) The packaging shall clearly indicate the size of a serving if the edible product is not in a form that indicates a serving and shall include a measuring device with the package to be used to measure a single serving of the edible product, as applicable for edible products that are, or are similar to, powders, looseleaf tea, coffee grounds, or grains.

(3) Single-serving cannabis drinks or tinctures that do not contain more than 10 milligrams of THC, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5, shall be packaged in a child-resistant container, such as:

(a) An aluminum or metal can with a child-resistant cap or cover over any stay tab mechanism opening; or

(b) A bottle with a metal crown cork style bottle cap.

(4) Multiple-serving cannabis drinks or tinctures that contain more than 10 milligrams of THC but no more than 200 milligrams of THC, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5, must:

(a) Be packaged in a child-resistant container compliant with 16 C.F.R. Part 1700 (2018) that has a resealing cap or closure; and

(b) Include a measuring device such as a measuring cap or dropper with the package containing the cannabis-infused liquid edible product; hash marks on the bottle or package do not qualify as a measuring device.

(5) Cannabis drinks packaged according to this section may be bundled into a larger marketing layer so long as the total amount of THC per marketing layer does not exceed 200 milligrams, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5.

(6) The container must be tamper-evident.

(B) Labeling for Retail Sale Requirements for Edible Cannabis Products. In addition to the general labeling requirements of this section, any other provisions of the rules governing the adult use cannabis program and 28-B MRS, ch. 1, all edible cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

(1) Total THC and total CBD, stated in milligrams and for edible cannabis products containing at least 5 milligrams of total THC, not more than 10% less or 10% greater than the actual total THC and total CBD content, and for edible cannabis products containing less than 5 milligrams of total THC, not more than 20% less or 20% greater than the actual total THC and total CBD content (except that such allowable variance for edible cannabis products shall not be less than 0.6 milligrams of total THC per serving), including:

(a) The total THC and total CBD per serving unit; and

(b) If the label is on the marketing layer of a package containing more than one serving unit, the total contents of THC and CBD contained within the entire package;

(2) The serving size, which must reflect the amount of a product customarily consumed by an adult, in compliance with the requirements and limitations of 21 C.F.R. Part 101 (2018), which may contain no more than 10 milligrams of total THC, except as permitted by §1, sub-§ 7 and 18-691 CMR, ch. 5;

(3) The number of servings per container or marketing layer;

(4) Total net weight of the edible cannabis product separate from the package and label;

(5) A statement in font no smaller than 6 point: “This product contains cannabis. Keep away from children.”;

(6) If applicable, a list of all ingredients used to manufacture the edible cannabis product, including identification of the actual or potential presence of any major allergens contained in the product in accordance with the Food Allergen Labeling and Consumer Protection Act of 2004, 21 U.S.C. § 343 (2010), specifically milk, eggs, fish, crustacean shellfish, tree nuts, peanuts, wheat and soybeans;

(7) A nutritional fact panel in accordance with 21 C.F.R. Part 101 (2018); and

(8) A statement in font no smaller than 6 point: “Effects of this product may not be felt for up to 4 hours.”

( 5) Packaging and Labeling for Retail Sale of Topical Cannabis Products.

(A) Retail Sale Packaging for Topical Cannabis Products. Prior to authorized transfer to a consumer, all topical cannabis products shall be packaged in child-resistant packaging in accordance with the following:

(1) Salves, creams, lotions and balms shall be packaged in a child-resistant container that has a resealing cap or closure compliant with 16 C.F.R. 1700 (2018).

(2) Transdermal patches shall be packaged in a plastic four mil or greater in thickness and be heat sealed with no easy-open tab, dimple, corner or flap, as to make it difficult for a child to open.

(3) The packing must be tamper-evident.

(B) Labeling for Retail Sale of Topical Cannabis Products. In addition to the general labeling requirements of this section, any other provisions of the rules governing the adult use cannabis program and 28-B MRS, ch. 1, all topical cannabis products must clearly display the following information on the marketing layer of the package for retail sale:

(1) A potency statement for topical cannabis products stating the total THC and total CBD in milligrams in the container, and for transdermal products the total content of THC and CBD in milligrams contained in each transdermal product;

(2) A list of all ingredients in descending order of predominance by weight or volume as applicable;

(3) The amount recommended for use at any one time; and

(4) The following warning statement: “For Topical Application – Do Not Eat or Smoke.”

(6) Packaging and Labeling for Retail Sale of Cannabis Seeds.

(A) Retail Sale Packaging for Cannabis Seeds. Prior to authorized transfer to a cannabis store, or for nursery cultivation facilities, prior to authorized transfer to consumer, or retail sale by another licensee authorized to conduct retail sales to consumers by delivery, all cannabis seeds shall be packaged in accordance with this subsection. Packaging for cannabis seeds for sale to consumers shall:

(1) Keep all cannabis seeds dry;

(2) Prevent germination of the seeds in the packaging;

(3) Not impart any deleterious substances into the cannabis seeds; and

(4) Be exempt from the requirements that packaging be child-resistant and tamper-evident.

(B) Labeling for Retail Sale of Cannabis Seeds. There is no mandatory testing required for cannabis seeds, therefore labels affixed to individual retail packages of cannabis seeds shall not contain information regarding test results, including without limitation cannabinoid content, potency or the absence or presence of contaminants. All cannabis seeds must clearly display the following information on the marketing layer of the package for retail sale:

(1) The inventory tracking system package number for the package of cannabis seeds sold by the cannabis store or nursery cultivation facility licensee;

(2) The license number of the cultivation facility where the cannabis seeds were propagated;

(3) The license number of the cannabis store or nursery cultivation facility (if different from the cultivation facility that produced the seeds) that is offering the individual retail package for sale to consumers;

(4) The net weight or the number of individual seeds in the package, a licensee may include either or both values on the label; and

(5) The following statement: “For cultivation only by consumers 21 years of age or older.”

A licensee may include additional information regarding the contents of the individual retail packages of cannabis seeds, provided that such information does not conflict with the rules governing the adult use cannabis program. A licensee may provide to consumers information on the limitations of home cultivation of cannabis for personal use contained in 28-B MRS § 1502.

(7) Packaging and Labeling of Samples Collected by a Licensee.

(A) Self-Samplers and Sample Collectors Must Contact Cannabis Testing Facility. Any licensee collecting samples for mandatory testing in accordance with 28-B MRS, subchapter 6, and 18-691 CMR, ch. 40, must contact the cannabis testing facility that will conduct the mandatory testing and comply with the cannabis testing facility’s specific recommendations regarding, without limitation:

(1) Required sample collection tools and equipment based upon sample matrix type and mandatory tests required;

(2) Required sample collection containers based upon sample matrix type and mandatory tests required;

(3) Required sample transportation conditions based upon sample matrix and mandatory tests required;

(4) A plan for sample receipt which includes any limitations on days or times when samples will be accepted by the cannabis testing facility; and

(5) Any additional quality measures required by the cannabis testing facility to ensure sample integrity and prevent contamination of the licensee’s samples or the samples of other licensees.

All cannabis testing facility recommendations regarding sample collection will be recorded for every sampling event in the licensee’s sample collection records in accordance with the recordkeeping requirements of this rule. Cannabis testing facility recommendations must align with the Department’s Best Practice Guide as applicable.

(B) Self-Samplers and Sample Collectors Must Use Sample Collection Containers Required by Cannabis Testing Facility. A licensee collecting samples for mandatory testing must collect samples in accordance with the Department’s sample collection SOP and deposit the required sample increments in the sample collection containers required by the cannabis testing facility analyzing the samples. When all required sample increments are collected, the person collecting the samples must immediately:

(1) Affix a tamper evident seal to each sample container and must initial the seal. The seal must be initialed by another individual identification cardholder witnessing the sealing of the sample containers;

(2) Ensure that the universal symbol is on every sample collection container, no smaller than ¹/₂ of an inch by ¹/₂ of an inch;

(3) Ensure that each sample collection container has the following notice: “FOR TESTING PURPOSES ONLY”; and

(4) Ensure that each sample collection container is accompanied by the appropriate label generated by the inventory tracking system required by the Department.

(C) Self-Samplers, Sample Collectors and Cannabis Testing Facilities Must Comply with All Sample Collection Recordkeeping Requirements and Use the Department-required Sample Collection SOP and Best Practices Guide. A licensee must conduct all sample collection in accordance with the Department’s sample collection SOP and Best Practices Guide and must submit to the cannabis testing facility all information required by the cannabis testing facility’s quality system for each batch of cannabis or cannabis product sampled for mandatory testing. A licensee conducting sample collection for mandatory testing must comply with the sample collection recordkeeping requirements of this rule.

(8) Packaging and Labeling for Storage by a Cannabis Establishment.

(A) Storage Prior to Testing. Following samples being taken from a batch of cannabis, a licensee must:

(1) Store the batch in one or more sealed containers enclosed on all sides, so as to prevent the cannabis or cannabis product from being tampered with or transferred or sold prior to test results being reported.

(2) Affix to the container(s) in which the cannabis is stored a label including the following information:

(a) The batch number; and

(b) In bold, capital letters, no smaller than 12-point font, “PRODUCT NOT TESTED”; and

(3) Report the transfer of the sample into the tracking system and the batch number being sampled.

(B) Storage of Cannabis Not Labeled for Retail Sale. All cannabis or cannabis products stored on the licensed premise must be secured in a limited access area and tracked consistent with the inventory tracking rules.

(C) Storage of Cannabis for Retail Sale through Delivery by an Applicable Cultivation or Products Manufacturing Facility. A nursery, tier 1 or tier 2 cultivation facility or a products manufacturing facility that conducts retail sales of cannabis or cannabis products to consumer through delivery from the licensed premises of the cultivation or products manufacturing facility shall store all of its inventory intended for sale by delivery to consumers in a secure limited access area that is separate and distinct from any area of the licensed premises where the licensee stores cannabis or cannabis products intended for transfer to another licensee and shall track such inventory in accordance with the inventory tracking provisions of this rule.

(D) Health and Safety Standards for Storage. Storage of cannabis and cannabis products shall be under conditions that will protect products against physical, chemical and microbial contamination, as well as against deterioration of any container.

§6 - Enforcement.

(1) Department Enforcement Authority.

(A) Inspection of Cannabis Establishments and Premises. A cannabis establishment licensee must provide the Department, or agent thereof, access to inspect a cannabis establishment and premises at any time during the business hours stated on the facility plan of record of the cannabis establishment. Licensees shall not deny entrance for inspection, upon demand and without notice required, during any business hours, or at any other time upon reasonable notice. In any case, the licensee shall ensure there is an individual identification card holder at the cannabis establishment to accompany the agent of the Department during the inspection. Licensees shall permit staff or agents of the Department and employees or agents of local or state agencies with regulatory authority access to inspect the cannabis establishment and premises in accordance with the statutes, regulations and operating procedures employed by those regulatory bodies. If a licensee denies the agent of the Department access to a licensed premise, the Department may put an administrative hold on the cannabis establishment license and may impose fines, suspensions or revocation of that license.

(B) Routine or Random Inspection or Audit of Sample Collection by Licensees. The Department may, with or without suspicion of infractions, conduct inspection or audit of any licensee’s sample collection practices in accordance with the requirements of this rule; except that the Department may not require the licensee to submit more than 3 representative samples of adult use cannabis or cannabis products every 60 days unless the cannabis or cannabis products fail testing or such samples are taken pursuant to investigation of a complaint.

(C) Investigation. The Department may, as a result of a complaint filed with the Department, or as a result of its administration of the program, investigate suspected infractions by licensees to any provision of 28-B MRS or the rules governing the adult use cannabis program. Infractions that may be investigated include, without limitation:

(1) Failure to comply with facility plan of record;

(2) Failure to properly report inventory in the inventory tracking system;

(3) Unauthorized transfers of cannabis;

(4) Failure to disclose or properly report changes to the record of principals or natural persons or business entities having a direct or indirect financial interest in the licensee or the nature of such direct or indirect financial interests;

(5) Failure to comply with any conditions required by a municipality, town, plantation, township or county commission for approval of the license;

(6) Use of prohibited pesticides in cultivation of cannabis;

(7) Any violation of the rules and regulations as set forth by the Department; or

(8) Any conduct by a cannabis establishment licensee not authorized by 28-B MRS or the rules governing the adult use cannabis program.

(D) Samples Taken Pursuant to an Investigation or Inspection. The Department may, as part as an investigation or inspection, take samples of cannabis plants, cannabis or cannabis products as evidence or for testing. When the Department takes samples pursuant to an inspection or investigation, it will give the licensee a receipt for all samples taken. The Department shall not take more than 3 representative samples of adult use cannabis or a cannabis product from a licensee within a 60 day period, unless such samples are taken pursuant to an investigation by the Department in accordance with this section.

(E) Enforcement Actions.

(1) The Department may take the following actions against licensees, alone or in combination, subject to the requirements of this section:

(a) Impose monetary penalties;

(b) Suspend a license;

(c) Revoke a license;

(d) Accept the voluntary surrender of a license;

(e) Confiscate or seize cannabis plants, cannabis or cannabis products;

(f) Destroy cannabis plants, cannabis or cannabis products;

(g) Recall cannabis or cannabis products; or

(h) Accept the voluntary surrender of cannabis plants, cannabis or cannabis products.

(2) The Department may revoke an individual identification card for any violation of 28-B MRS or this rule.

(F) Reciprocal Revocation of a Specified Event Permit.

(1) A specified event permit issued by the Department shall be automatically revoked as a matter of reciprocity if either the municipality, or as applicable, the property owner revokes their written authorization for the licensee to conduct sales at the specified event.

(2) If the Department revokes or suspends a specified event permit for any reason other than reciprocal revocation, the procedures for enforcement actions shall apply.

(G) Technical Assistance.

(1) For a first violation of any “minor license violation” as defined in this rule or for any other violation of the rules governing the adult use cannabis program or 28-B MRS that is not otherwise defined as a “major license violation affecting public safety” or a “major license violation” the Department shall provide technical assistance to a licensee for that violation.

(2) If the Department determines that a licensee is in violation of the rules governing the adult use cannabis program or 28-B MRS for more than one instance of the same misconduct, the Department shall provide technical assistance for the first violation in addition to any enforcement actions taken for subsequent instances of the same misconduct.

(3) Technical assistance is intended to educate program participants, obtain compliance, and maintain future compliance. Providing technical assistance does not preclude other enforcement actions, and failure to address violations identified through technical assistance will result in additional enforcement action.

(4) The Department may take subsequent enforcement action if the licensee fails to comply with any corrective action necessary to address the initial license violation for which the licensee received technical assistance.

(H) Notice of Violation.

(1) The Department shall provide notice to a licensee, in writing, within five (5) business days of determining that the licensee has violated the rules governing the adult use cannabis program or 28-B MRS.

(2) Such notice shall specify whether a plan of correction is required to address the violation and, if applicable:

(a) Direct the licensee to develop a plan of correction and submit that plan to the Department within 5 business days of the notice of violation, and implement the plan following approval of the same by the Department; or

(b) Direct the licensee to implement a plan of correction developed by, and acceptable to, the Department; or

(c) Permit the licensee to address the violation without a formal plan of correction.

(3) Any plan of correction shall specify any actions necessary to address the violations identified by the Department, as well as the time frame for correcting the violation.

(4) The Department may reject any plan of correction proposed by a licensee and may instead direct that a licensee comply with a plan of correction developed by the Department.

(5) The Department may, at its discretion, conduct a follow up inspection to determine whether the licensee has timely complied with any applicable plan of correction.

(6) Notice of violation in accordance with this paragraph does not constitute final agency action. The Department may, after any follow up inspection, or otherwise within a reasonable time following issuance of the Notice of Violation, impose a monetary penalty in accordance with the requirements of the rules governing the adult use cannabis program and 28-B MRS.

(I) Procedures for Enforcement Actions.

(1) Except in cases where technical assistance is first required,the Department may, on its own initiative or on complaint and after investigation, initiate enforcement actions, notwithstanding any other criminal, civil or administrative proceedings against the licensee.

(2) The Department will initiate an enforcement action with written notice to the licensee, which will include notice to the licensee regarding their right to a hearing pursuant to the Maine Administrative Procedures Act, Title 5, ch. 375, subch. 4.

(3) Enforcement actions shall be based upon the following:

(a) Any false or misleading statements to the Department;

(b) Other violations by the licensee or by an agent or employee of the licensee of 28-B MRS or the rules governing the adult use cannabis program;

(c) Violations by the licensee or by an agent or employee of the licensee of the terms of the licensee’s license, including all licensing criteria required to be granted a conditional or active license; or

(d) Inactivity at the licensed premises for a period of 1 year or more without reasonable justification, including without limitation death or illness of a licensee, fire, natural disaster, or building conditions outside of the licensee’s control.

(4) Any final agency enforcement action or order by the Department after administrative hearing shall be made only on the basis of relevant evidence and shall be communicated in writing to the licensee, along with a notice of the licensee’s right to judicial review in the Maine Superior Court in accordance with Rule 80C of the Maine Rules of Civil Procedure.

(2) Administrative Monetary Penalties. A monetary penalty imposed by the Department on a licensee pursuant to this subchapter may not exceed $20,000 per license violation. Penalties to be imposed on a licensee based upon specific categories of unauthorized conduct by the licensee, including major and minor license violations, as follows:

(A) Not more than $20,000 per major license violation affecting public safety;

(B) Not more than $10,000 per other major license violation; and

(C) Not more than $2,500 per minor license violation.

(3) Major License Violations Affecting Public Safety.

(A) The Department may impose a fine of up to $20,000 for each major license violation affecting public safety.

(B) “Major license violation affecting public safety” means an intentional or knowing violation that imminently jeopardizes public health and safety or conduct that indicates a willful or reckless disregard for public health and safety. “Major license violation affecting public safety” is limited to :

(1) Intentionally or recklessly selling cannabis or cannabis products containing any scheduled drug as defined in 17-A MRS § 1101(11), except for any compounds naturally occurring in the cannabis plant;

(2) Intentionally or recklessly using prohibited agricultural chemicals that pose a threat to public health and concealing their use from the Department, other licensees or consumers;

(3) Intentionally or knowingly treating or otherwise adulterating cannabis or cannabis products with a scheduled drug as defined in 17-A MRS § 1101(11), except for any compounds naturally occurring in the cannabis plant, or intentionally or knowingly purchasing, acquiring or possessing cannabis or cannabis products that have been adulterated;

(4) Intentionally or knowing destroying, damaging, altering, removing or concealing potential evidence of a major violation affecting public safety, or asking or encouraging another person to do so;

(5) Intentionally or knowingly purchasing, acquiring or possessing cannabis plants, cannabis or cannabis products from outside the State, from any person who is not a licensee authorized under 28-B MRS, ch. 1, or from the illicit market;

(6) Three or more instances of a licensee failing to have on the premises at all times during business hours an individual identification cardholder who is authorized to allow and cooperate with the Department’s request to inspect the premises;

(7) Intentionally or knowingly tampering with or interfering with mandatory testing processes, including sample collection or auditing testing results; or

(8) Other intentional or knowing egregious conduct that imminently threatens public health and safety or conduct that shows a willful or reckless disregard for public health and safety that poses an imminent risk to public health and safety.

(4) Major License Violations.

(A) The Department may impose a fine of up to $10,000 for each other major license violation.

(B) “Major license violation” means a serious violation that does not imminently jeopardize public safety. "Major license violation” is limited to:

(1) Intentionally or recklessly misleading the Department for the purpose of involving an individual with a disqualifying drug offense in the operation of a cannabis establishment;

(2) Intentionally or knowingly diverting cannabis or cannabis products to the illicit market;

(3) Except as otherwise prohibited by sub-§3(B)(2) and (3) above, treating or otherwise adulterating cannabis or cannabis products with any chemical that alters the color, appearance, weight or smell of the cannabis or cannabis product or that increase its potency, toxicity or addictiveness in a manner not authorized under 28-B MRS, ch. 1;

(4) Selling cannabis plants, cannabis or cannabis products to a minor, by failing to take all necessary steps to verify age;

(5) Intentionally or knowingly making deliveries of adult use cannabis or adult use cannabis products to safe zones designated by a municipality in accordance with 30-A MRS § 3253;

(6) Allowing any minor to engage in any cannabis-related activity;

(7) Cultivating cannabis plants for adult use in an amount that is equal to or greater than 150% of the total number of cannabis plants, or plant canopy, that the licensee is authorized to cultivate pursuant to the Department-issued active license;

(8) Intentionally or knowingly misrepresenting any cannabis product to a consumer, licensee or the public including information regarding: the contents, test results or potency of the cannabis product;

(9) Two or more instances of a licensee failing to have on the premises, at all times during business hours, as applicable, an individual identification card holder who is authorized to allow and cooperate with Department requests to inspect the premises;

(10) Intentionally or knowingly destroying, damaging, altering, removing or concealing potential evidence of a major license violation, or asking or encouraging another person to do so;

(11) Selling or transferring cannabis plants, cannabis or cannabis products outside of the tracking system;

(12) Two or more instances of refusing to permit the Department to inspect the premises during business hours;

(13) Conduct that demonstrates a pattern of willful or reckless disregard for the tracking system requirements, sales tax obligations, excise tax obligations, mandatory testing obligations, or facility requirements;

(14) Intentionally making false statements to the office in order to obtain or maintain a license; or

(15) Any “minor license violation” identified in subsection 5 below that is a knowing violation that the licensee has committed 3 or more times.

(5) Minor License Violations.

(A) The Department may impose a fine of up to $2,500 for each minor license violation.

(B) “Minor license violation” means a negligent violation. “Minor license violation” is limited to:

(1) Procuring or in any way abetting or assisting in procuring, furnishing, selling or delivery cannabis or cannabis products to a minor;

(2) Cultivating more cannabis plants for adult use than the licensee is authorized to cultivate pursuant to its Department-issued active license, but less than 150% of the total number of cannabis plants or plant canopy authorized;

(3) Supplying adulterated or misbranded cannabis or cannabis products;

(4) Intentionally or knowingly purchasing, receiving, selling or transferring any cannabis, cannabis plant or cannabis product that is fraudulently entered into the tracking system;

(5) Failing to request and obtain from the Department approval for a change in ownership or principals, prior to making such a change in ownership or principals;

(6) Subletting any portion of the licensed premises;

(7) Making representations or claims that cannabis or a cannabis product has curative or therapeutic effects;

(8) Not operating in accordance with the operations, cultivation or facility plans of record on file with the Department, except that a licensee may use a piece of equipment not included on its facility plan of record in exigent circumstances when use of the equipment is necessary to mitigate loss of or damage to a licensee’s inventory or property and the licensee notifies the Department within one business day of the day the equipment is used and the licensee updates their facility plan of record within five (5) business days of first using the equipment to address the exigent circumstances;

(9) Failing to have on the licensed premises at all times during business hours an individual identification cardholder who is authorized to allow inspection and cooperate when the Department requests to inspect the licensed premises;

(10) Allowing consumption of cannabis on the licensed premises of a cannabis establishment except as otherwise authorized by the rules governing the adult use cannabis program and 28-B MRS, ch. 1; and

(11) A second violation of any other requirement of the rules governing the adult use cannabis program and 28-B MRS, that is not expressly listed in sub-§ 3, 4 and 5.

(6) License Suspension, Revocation and Voluntary Surrender. The Department shall have the authority to suspend or revoke licenses subject to Title 28-B, Section 802-A.

(A) Suspension.

(1) The Department may suspend for a period of up to one year, any or all cannabis establishment licenses held by the licensee, including any other licenses with a common principal, upon a finding that the licensee:

(a) Has committed a major violation affecting public safety;

(b) Has committed more than one major violation within the previous 30 months; or

(c) Has cultivated cannabis plants for adult use in an amount that is equal to or greater than 150% of the total number of cannabis plants, or plant canopy, that the licensee is authorized to cultivate pursuant to the Department-issued active license

(2) In accordance with 28-B MRS § 604-A(1)(F) the Department may suspend a license based upon the Department’s determination that the licensee has failed at least two audits of a licensee’s sample collection process.

(3) A licensee whose license has been suspended pursuant to this subsection may not, for the duration of the period of suspension, engage in any activities relating to the operation of the cannabis establishment the licensee is licensed to operate, except that a cultivation facility may harvest any plants growing at the time of the suspension, but may not begin cultivating any new plants.

(4) The Department retains discretion as to whether to allow the transfer of a suspended license and shall be permitted, but not required, to allow new owners to begin some or all operations prior to the end of the suspension.

(B) Summary Suspension.

(1) In accordance with 5 MRS § 10004, the Department may order summary suspension of a cannabis establishment license for up to 30 days under the following circumstances:

(a) The Department concludes, based upon a physical test, inspection or examination conducted by a state-certified inspector, that allowing the licensee to continue operations would not adequately protect public health or public safety; or

(b) The Department has other objective and reasonable grounds to believe that public health, public safety or significant natural resources are in immediate jeopardy.

(2) The Department may order summary suspension of a cannabis establishment license if a court issues a ruling that indicates the licensee has committed a major license violation affecting public safety or that the licensee has committed two or more major license violations within the preceding 60 months.

(C) Revocation.

(1) Upon the finding that a licensee has committed a major license violation affecting public safety or that a licensee has committed more than one major license violation within the preceding 60 months, in addition to any monetary penalties, the Department may permanently revoke any or all cannabis establishment licenses held by the licensee found in violation, including any other licenses with a common principal.

(2) In accordance with 28-B MRS § 604-A(1)(F), the Department may permanently revoke a license based upon the Department’s determination that the licensee has failed at least two audits of a licensee’s sample collection process.

(3) The Department may also permanently revoke for inactivity, a cannabis establishment license, when it determines that the licensed premises have been inactive for a period of one year or more without reasonable justification.

(4) A licensee whose license has been revoked pursuant to this subchapter shall cease all activities relating to the operation of the cannabis establishment.

(5) A license that is revoked may not be transferred or renewed.

(D) Voluntary Surrender of License.

(1) A licensee facing penalties under this section may offer to voluntarily surrender its license, meaning that the licensee must cease operations and may not renew or transfer the license. In such cases, the Department has the discretion:

(a) To reject voluntary surrender of license and pursue penalties under this section;

(b) To accept the voluntary surrender of license made without conditions; or

(c) To negotiate conditions of a voluntary surrender, including but not limited to the following:

(i) The amount of monetary penalties, if any are to be imposed;

(ii) The effect of the voluntary surrender on any other adult use cannabis licenses or medical cannabis registrations with which the licensee is associated;

(iii) The amount of time before which the licensee or any principal of the licensee may apply for an adult use cannabis license or medical cannabis registration; and

(iv) The waiver of appeal.

(2) A licensee who voluntarily surrenders its license must follow the procedure described in this section.

(E) Procedure for Termination of License. Licensees who permanently abandon the licensed premises or otherwise permanently ceases all activities relating to the operation of the cannabis establishment under its license, whether a result of revocation, voluntary surrender or other reasons, must follow the procedures for terminating a license prescribed by 28-B MRS §212. The licensee must:

(1) Provide written notice of abandoning the licensed premises or ceasing operations at least 48 hours in advance to the Department and the municipality in which the licensed premises are located, which shall mean notifying:

(a) The county commissioners of the county in which the township is located, for licensed premises located in townships;

(b) The Maine Land Use Planning Commission and the town or plantation, for licensed premises located in unorganized areas; or

(c) The city, town or plantation in which the licensed premises are located;

(2) Provide the Department and the municipality in which the licensed premises are located with a full accounting of all adult use cannabis and adult use cannabis products located within the licensed premises; and

(3) Forfeit the cannabis and cannabis products to the Department for destruction in accordance with 28-B MRS §803.

(7) Destruction and Voluntary Surrender of Cannabis Plants, Cannabis and Cannabis Products.

(A) Order by the Department.

(1) If the Department issues a final order imposing a monetary penalty on, or a license suspension or revocation against, a licensee pursuant to this subchapter, the Department may specify in the order, in addition to any other penalties imposed in the order, that all or a portion of the cannabis or cannabis products in the possession of the licensee are not authorized under the rules governing the adult use cannabis program and are subject to destruction. A licensee subject to a final order directing the destruction of cannabis or cannabis products in its possession shall forfeit the cannabis or cannabis products to the Department or destroy the cannabis and cannabis products at the time and place and in the manner required by the Department in writing.

(2) If the Department is notified by a criminal justice agency that there is a pending investigation of a licensee subject to an order imposed under this subsection, as set forth in 28-B MRS § 803, the Department may not destroy any cannabis or cannabis products of that licensee until the destruction is approved by the criminal justice agency.

(B) Voluntary Surrender of Cannabis Plants, Cannabis or Cannabis Products.

(1) A licensee may elect, upon mutual agreement with the Department, to voluntarily surrender any cannabis plants, cannabis or cannabis products to the Department. Such voluntary surrender:

(a) Must be made on a form supplied by the Department;

(b) Must be signed by an individual who certifies that he or she has authority to represent and bind the licensee; and

(c) May require destruction of any cannabis plants, cannabis or cannabis products in the presence of a Department employee or agent and at the licensee’s expense; except that no cannabis plants, cannabis or cannabis products may be destroyed until the Department confirms with law enforcement that the cannabis plants, cannabis or cannabis products to be destroyed are not necessary to any ongoing investigation or prosecution.

(2) Such a voluntary surrender may be made:

(a) Prior to a final order and upon mutual agreement with the Department;

(b) In connection with a stipulated order through which the licensee waives the right to hearing and any associated rights;

(c) In conjunction with a pending action even if the licensee does not waive the right to hearing and any associated rights, with the understanding that the outcome of the hearing does not impact the validity of the voluntary surrender; or

(d) After a final order.

(3) If a voluntary surrender is made in conjunction with a final order, including a stipulated order, the licensee must complete and return the Department's voluntary surrender form within 15 calendar days of the date of the final order.

(8) Audit, Compliance and Random Testing.

(A) Department May Require Audits and Random Testing. The Department may require a cannabis establishment licensee to provide to the Department up to 3 representative samples, per 60-day period, identified by the Department to a testing facility of the Department’s choosing to be tested in order to determine whether a licensee is in compliance with mandatory testing standards..

(1) A testing facility doing audit testing must comply with applicable provisions of the rules governing the adult use cannabis program, and if conducting testing not required by this rule, may only use Department approved methods.

(2) The Department may require a licensee to submit samples to the Department for any mandatory or additional testing to be conducted by a testing facility.

(3) The Department may order the removal from retail sale of any cannabis or cannabis products for which a licensee has intentionally misrepresented testing results.

(4) The Department may exempt a product at its sole discretion.

(B) Routine or Random Audits of Sampling by Licensees. The Department may, with or without suspicion of infractions, conduct routine audits of any licensee’s sample collection practices, including without limitation:

(1) Reviewing video footage;

(2) Reviewing sample collection and chain-of-custody forms;

(3) Inspecting any samples, including sample collection containers, for compliance with all packaging and labeling requirements of this rule;

(4) Reviewing tracking system data and transportation manifests;

(5) Requiring a demonstration of the licensee’s sample collection practices; and

(6) Requiring testing of batches, at the licensee’s expense. Samples collected for testing pursuant to this paragraph must be collected by or in the presence of Department employees.

Unless the Department is investigating the licensee, or any audit sample taken from the licensee fails audit testing, the Department may not require a licensee to submit for audit testing more than 3 representative samples of cannabis or cannabis products every 60 days.

(C) Routine or Random Sampling and Testing of Cannabis and Cannabis Products by the Department. In accordance with 28-B MRS § 512, the Department may require a licensee to submit to sampling and testing of any cannabis or cannabis product within the licensee’s possession during all business hours listed on the licensee’s facility plan for the purpose of product quality control.

(1) The Department may require the licensee to collect samples or may require that the licensee permit Department employees to collect samples in accordance with the Department-required sampling standard operating procedure.

(2) The Department may require a licensee to pay for any testing required pursuant to this section at a cannabis testing facility that is licensed by the Department.

Unless the Department is investigating the licensee, or any audit sample taken from the licensee fails audit testing, the Department may not require a licensee to submit for audit testing more than 3 representative samples of cannabis or cannabis products every 60 days.

(9) Seizure or Confiscation of Cannabis, Cannabis Concentrate or Cannabis Products.

(A) Authority. The Department may seize, destroy, or confiscate any cannabis or cannabis products under, but not limited to, the following circumstances:

(1) Any cannabis or cannabis products not properly logged in inventory records or the tracking system;

(2) Any cannabis or cannabis products that are altered or not properly packaged and labeled in accordance with this rule;

(3) Any cannabis or cannabis products that has been cultivated, harvested, manufactured or transferred in a manner, or otherwise in a form, not compliant with 28-B MRS, the rules governing the adult use cannabis program or rules governing the Maine Medical Use of Cannabis Program; or

(4) Improper use, handling, storage, transport, transfer or other possession of samples of cannabis, cannabis concentrate or cannabis products.

If the Department seizes cannabis, the Department shall not cultivate nor preserve any seized cannabis, cannabis plants or cannabis products. Unless notified by a criminal justice agency of pending investigation of the licensee, the Department may, in its final order, specify the destruction of the seized cannabis, cannabis plants or cannabis products.

(B) Administrative Holds. The Department may order an administrative hold of cannabis or cannabis products to prevent destruction of evidence, diversion or other threats to public safety, while permitting a licensee to retain its inventory pending further investigation, pursuant to the following procedure:

(1) If during an investigation or inspection of a licensee, an employee or agent of the Department develops reasonable grounds to believe certain cannabis plants, cannabis or cannabis products constitute evidence of violation of the rules governing the adult use cannabis program, or 28-B MRS, regarding labeling and packaging, testing results, contamination of cannabis plants, cannabis or cannabis products, or cannabis, or inventory tracking of adult use cannabis or cannabis plants, the employee or agent may issue a notice of administrative hold of any such cannabis plants, cannabis or cannabis products. The notice of administrative hold shall provide a documented description of the cannabis plants, cannabis or cannabis products to be subject to the administrative hold and a concise statement that is promptly issued and approved by the director of the Office of Cannabis Policy or a designee regarding the reasons for issuing the administrative hold.

(2) Following the issuance of a notice of administrative hold, the Department will identify the cannabis plants, cannabis or cannabis products subject to the administrative hold in the tracking system. The licensee shall continue to comply with all tracking requirements.

(3) The licensee shall completely and physically segregate the cannabis plants, cannabis or cannabis products subject to the administrative hold in a limited access area of the licensed premises under investigation, where it shall be safeguarded by the licensee.

(4) While the administrative hold is in effect, the licensee is prohibited from selling, giving away, transferring, transporting or destroying the cannabis plants, cannabis or cannabis products subject to the administrative hold, except as otherwise authorized by the rules governing the adult use cannabis program.

(5) While the administrative hold is in effect, the licensee must safeguard the cannabis plants, cannabis or cannabis products subject to the administrative hold, must maintain the licensed premises in reasonable condition according to health, safety and sanitary standards, and must fully comply with all security requirements, including but not limited to all surveillance, lock and alarm requirements detailed in the security plans, 28-B MRS or the rules governing the adult use cannabis program.

(6) Nothing herein shall prevent a licensee from voluntarily surrendering cannabis plants, cannabis or cannabis products that is subject to an administrative hold, except that the licensee must follow the procedures set forth in this section.

(7) Nothing herein shall prevent a licensee from the continued possession, cultivation or harvesting of the cannabis plants, cannabis or cannabis products subject to the administrative hold.

(8) At any time within 30 days after the initiation of the administrative hold, the Department may lift the administrative hold or seek other appropriate relief.

(10) Cannabis Recalls. The Department may require a licensee to recall any cannabis and cannabis product that the licensee has sold or transferred upon a finding that circumstances exist that pose a risk to public health and safety.

(A) A recall may be based on, without limitation, evidence that:

(1) Cannabis or cannabis product contains an unauthorized pesticide(s);

(2) Cannabis or cannabis product failed a mandatory test and was not mitigated pursuant to testing protocols;

(3) Cannabis or cannabis product is contaminated or otherwise unfit for human use, consumption or application;

(4) Cannabis or cannabis product is not properly packaged or labeled; or

(5) Cannabis or cannabis product was not cultivated or manufactured by a cannabis establishment.

(B) If the Department finds that a recall is required, the Department:

(1) Must notify the public and licensees of the recall;

(2) Must administratively hold all affected cannabis or cannabis products in the tracking system;

(3) May require a licensee to notify an individual to whom cannabis or a cannabis product was sold; and

(4) May require that the licensee destroy the recalled product.

Fiscal impact note, included pursuant to 5 MRS § 8063: The Department estimates that the changes implemented by this rulemaking will have a de minimus fiscal impact on municipalities and counties.

ACCESSIBILITY CHECK: July 7, 2025

Chapter 40 Rules for Testing of Adult Use Cannabis

Code Me. R. 18-691 Ch. 40 – Sampling and Testing {#sec-18-691-ch.-40 omnilex-key=us-me-regs-official--dept-administrative-financial-services--18-691 Ch. 40}

§ 1 - Sampling

(1) Samples for Mandatory Testing or Research and Development

§ 2 - Testing

(1) Commencement of Mandatory Testing.

(2) Mandatory Testing and Additional Analysis.

(3) Reporting.

(4) Retesting and remediation of batches that fail mandatory testing.

(5) Department action following issuance of a failed mandatory test result by a cannabis testing facility.

Appendix

Chapter 40 – Sampling and Testing

The terms used in this rule are defined in and governed by the Rules for the Administration of the Adult Use Cannabis Program , 18-691 CMR, ch. 10. The administration of this rule and the other rules governing the Adult Use Cannabis Program are also governed by 18-691 CMR, ch. 10. All applicants, licensees and individual identification cardholders that are authorized to conduct activities pursuant to licenses or individual identification cards issued pursuant to Rules for the Licensure of Adult Use Cannabis Establishments, 18-691 CMR, ch. 20 must also at all times comply with the requirements of that rule and of Title 28-B of the Maine Revised Statutes and the Compliance Rules for Adult Use Cannabis Establishments , 18-691 CMR, ch. 30, as well as the Rules for the Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5 and any other applicable local, state or federal laws or regulations. Collectively, 18-691 CMR, chapters 5, 10, 20, 30, and 40 are the “rules governing the adult use cannabis program”.

§ 1 - Sampling.

(1) Samples for Mandatory Testing or Research and Development.

(A) Authorized Collection of Samples. In accordance with 28-B MRS §§604 and 604-A, all samples for mandatory testing under this rule must be collected by:

(1) An employee of the testing facility;

(2) A licensed sample collector; or

(3) A self-sampling licensee, collecting samples of cannabis, or cannabis products cultivated, manufactured, or otherwise produced by that licensee in compliance with all requirements of the rules governing the adult use cannabis program.

(B) Collection by Cannabis Testing Facilities or Sample Collectors. An employee of a cannabis testing facility or a sample collector must collect samples of cannabis or cannabis products in compliance with:

(1) Sample collection, transport, and receipt recordkeeping requirements;

(2) The Department-required sampling standard operating procedures;

(3) The Department-required Best Practices Guide;

(4) The requirements and restrictions of 28-B MRS §604; and

(5) The rules governing the adult use cannabis program.

(C) Collection by Self-Sampling Licensees. A self-sampling licensee may collect samples of cannabis or cannabis products cultivated, manufactured, or otherwise produced or sold by that licensee if the licensee has submitted all required documentation to the Department and in compliance with:

(1) Sample collection, transport, and receipt recordkeeping requirements;

(2) The Department-required sampling standard operating procedures;

(3) The Department-required Best Practices Guide;

(4) The requirements and restrictions of 28-B MRS §604-A; and

(5) The rules governing the adult use cannabis program.

(D) Required Documentation and Record Keeping. A cannabis cultivation, manufacturing, or cannabis store licensee requesting testing by a cannabis testing facility must indicate in its request for testing, in writing, prior to the collection of the samples for testing, whether the requested testing is for mandatory testing purposes as required by the rules governing the adult use cannabis program, or for research and development purposes.

(1) Pursuant to 28-B MRS §602(2), a licensee must maintain a record of all mandatory testing conducted at the request of the licensee that includes at a minimum:

(a) A description of the cannabis, cannabis concentrate, or cannabis product submitted for mandatory testing;

(b) The identity of the testing facility conducting the mandatory testing; and

(c) The results of any and all mandatory testing conducted at the request of the licensee.

§ 2 - Testing. A licensee may not sell or transfer cannabis or an cannabis product to a cannabis store, or as applicable a tier 1, tier 2, or nursery cultivation facility, or a products manufacturing facility, licensee for sale to a consumer under 28-B MRS, ch. 1, and the rules governing the adult use cannabis program unless the cannabis or cannabis product has been tested pursuant to this rule and 18-691 CMR, ch. 5, and mandatory testing has demonstrated that the cannabis or cannabis product does not exceed the maximum level of allowable contamination for any contaminant that is injurious to health and for which testing is required. The Department may temporarily waive mandatory testing requirements under this section for any contaminant or factor for which the Department has determined that there exists no licensed testing facility in the State capable of and certified to perform such testing. Unless permitted by the Department in writing to address a temporary instrument failure, a cannabis testing facility may not subcontract testing for any of the analyte categories required herein. A sample of cannabis or cannabis products submitted for mandatory testing may only be tested by the testing facility that received the sample for mandatory testing.

(1) Commencement of Mandatory Testing. The Department may, at any time, require immediate mandatory testing for any analyte required by this rule or any other analyte reasonably suspected to be a health hazard or safety threat, to ensure public health and safety.

(2) Mandatory Testing and Additional Analysis.

(A) The following tests are mandatory for all cannabis or cannabis products, except seedlings, immature cannabis plants, and seeds, in final form prior to being sold to a cannabis store, or as applicable, a tier 1, tier 2, or nursery cultivation facility, or products manufacturing facility making sales to consumers by delivery, for sale to a consumer in accordance with this section. A licensee may choose whether to conduct some tests, as indicated below, before the cannabis or cannabis product is in its final form; however, the licensee that transfers cannabis or cannabis products to a licensee for sale to a consumer, or as applicable, makes sales by direct delivery to consumers, shall ensure that every required test is conducted in accordance with this section prior to transfer to the licensee or as applicable, a consumer. The following tests are mandatory for all cannabis and cannabis products:

(1) Filth and foreign material. Any visible contaminant, including without limitation, hair, insects, feces, mold, sand, soil, cinders, dirt, packaging contaminants, and manufacturing waste and by-products.

(2) Residual solvents, poisons, and toxins. Acetone, acetonitrile, butane, ethanol, ethyl acetate, ethyl ether, heptane, hexane, isopropyl alcohol, methanol, pentane, propane, toluene, total xylenes (m, p, o-xylenes), 1,2-dichloroethane, benzene, chloroform, ethylene oxide, methylene chloride, trichloroethylene, and any others used. A licensee is not required to analyze for residual solvents and processing chemicals in dried flower, kief, hashish, or cannabis products manufactured without chemical solvents. A licensee is not required to analyze an orally-consumed tincture containing alcohol for residual ethanol. A licensee is not required to test a cannabis product for residual solvents, poisons, and toxins if all cannabis concentrate used to make the cannabis product has previously passed mandatory testing for residual solvents.

(3) Pesticides (e.g., insecticides, fungicides, herbicides, acaricides, plant growth regulators, disinfectants, etc.) Pesticides listed in Table 6.8-A of the Rules for Certification of Cannabis Testing Facilities , 18-691 CMR, ch. 5. A licensee is not required to test a cannabis concentrate or a cannabis product for pesticides, fungicides, insecticides, and growth regulators if all cannabis flower and/or trim used to make the cannabis concentrate or cannabis product has previously passed mandatory testing for pesticides, fungicides, insecticides, and growth regulators. Cannabis products may not be manufactured using cannabis, including cannabis concentrate, that has not been tested for pesticides. A cannabis testing facility may not test fresh frozen cannabis flower, trim or kief for pesticides until the plant material has been dried and cured. A cannabis testing facility may not test cannabis products for pesticides.

(4) Other harmful chemicals (Metals). Other harmful chemicals (Metals) include, but are not limited to: Cadmium (Cd), lead (Pb), arsenic (As), and mercury (Hg). A licensee is not required to test a cannabis product for the other harmful chemicals listed herein if the cannabis concentrate used to make the cannabis product has previously passed mandatory testing for the other harmful chemicals listed herein.

(5) Dangerous yeasts, molds, and mildew. Any cannabis or cannabis product that fails an initial test for total yeast and mold, mycotoxins including aflatoxins (B1, B2, G1, and G2) and ochratoxin A are a danger to public health and safety A sample that fails mandatory testing for dangerous molds and mildew shall be tested for mycotoxins upon retesting, regardless of remediation method, including methods that change the cannabis or cannabis product into a different form.

(6) Harmful microbes. Total viable aerobic bacteria, total coliforms, Enterobacteriaceae, Shiga toxin-producing E. coli (STEC) and Salmonella (spp.).

(7) THC potency, homogeneity, and cannabinoid profiles. THC and any other cannabinoid to be referenced in labeling or marketing materials.

(8) Water activity. Testing for water activity is mandatory for solid and semi-solid edible cannabis products that do not require preservation by other means (e.g., refrigeration) and for cannabis plant material that is dried and prepared in its final form of intended use and that is to be sold or transferred by a cultivation facility or products manufacturing facility to a cannabis store.

(B) A licensed cultivation facility, licensed manufacturing facility, or licensed cannabis store may submit for additional analysis of cannabis for research and development purposes, but such testing shall not satisfy the mandatory testing requirements of the rules governing the adult use cannabis program.

(C) The Department shall publish a Best Practices Guide that includes a sampling plan and preservation instructions appropriate to each matrix type. All cannabis testing facilities, all sample collectors, and any self-sampling licensee collecting samples for mandatory testing must comply with the Department-required Best Practices Guide.

(D) A licensee collecting and transporting samples for mandatory testing must comply with all recordkeeping requirements regarding sample collection, sample transport, and sample receipt in accordance with the rules governing the adult use cannabis program and any instructions regarding sample collection, sample transport, and sample receipt provided to the licensee by the cannabis testing facility(ies) conducting the mandatory analyses.

(E) The Department shall publish standard operating procedures for sample collection which must be used by any licensee collecting samples for mandatory testing.

(F) A licensee may sell or furnish to a licensee for sale to a consumer cannabis or a cannabis product without submitting it for testing if:

(1) The cannabis or cannabis product in its final form has previously undergone all required testing at the direction of another licensee or licensees as evidenced by a certificate of analysis, or in the case of cannabis concentrate or cannabis products that were tested for some analytes prior to final form, as evidenced by the certificates of analysis for testing done in accordance with the requirements of sub-§2 above;

(2) The previous testing demonstrated that the cannabis or cannabis product does not exceed the maximum level of allowable contamination for any contaminant that is injurious to health and for which testing is required;

(3) The mandatory testing process and the test results for the cannabis or cannabis product are documented in a certificate of analysis issued pursuant to a request for mandatory testing. A certificate of analysis for non-mandatory testing for research or development purposes does not satisfy this requirement; and

(4) The cannabis or cannabis product has been appropriately tracked in the inventory tracking system, and the cannabis or cannabis product has not been altered in any way, including any further processing or manufacturing, other than packaging and labeling of the cannabis or cannabis product for retail sale, following the issuance of the certificate(s) of analysis indicated in sub-paragraph (1) above.

(3) Reporting.

(A) If a sample’s result exceeds an action level as required by 18-691 CMR, ch. 5, the cannabis testing facility must report in the inventory tracking system and the certificate of analysis that the sample failed the mandatory test for which the result exceeds the action level, and the cannabis testing facility must report that the sample failed mandatory testing in general unless otherwise provided for in this rule or 18-691 CMR, ch. 5.

(1) In the event a cannabis testing facility determines that a sample has failed testing, the entity that submitted the sample may remediate the batch in accordance with sub-§4 before the batch is re-tested.

(2) The results of failed mandatory tests must be reported to both the Department and the entity that submitted the sample.

(3) The cannabis testing facility is not required to report to the Department the results of any tests if the requester notifies the cannabis testing facility in advance that the testing is solely for research development purposes and agrees not to use the results to satisfy any mandatory testing requirements.

(B) If a sample passes testing, the cannabis testing facility must, within one business day from issuance of final QC review, enter “pass” into the inventory tracking system for the batch from which the sample came. The batch is then released for distribution to a consumer.

(4) Retesting and Remediation of Batches that Fail Mandatory Testing. If a cannabis testing facility determines that a batch of cannabis or cannabis product fails mandatory testing, the cannabis testing facility must promptly report to the licensee and the Department that the sample failed mandatory testing. In accordance with this subsection, the licensee that submitted the sample may choose to have the batch retested without remediating the failed batch, or may remediate the failed batch and then submit samples for retesting.^[1] Batches of cannabis and cannabis products that have failed mandatory testing for pesticides and heavy metals may not be remediated but may be retested in accordance with this subsection. Batches of cannabis and cannabis products that passed mandatory testing may not be retested in order to enhance the results indicating that the sample passed for all tested analyte categories.

(A) Batches of cannabis and cannabis products that have failed mandatory testing may be retested without remediation. A licensee seeking retesting of batch that failed mandatory testing without remediation shall submit two samples from the batch that failed mandatory testing to the same cannabis testing facility that issued the initial failed test result.

(1) Both samples submitted for retesting must pass all required testing required for any analyte that failed initial mandatory testing.

(a) Batches of cannabis or cannabis products that fail initial mandatory testing for yeast or mold must pass mandatory testing for total yeast and mold and mycotoxins upon retesting.

(2) If either sample submitted for retesting fails any required test for any analyte that failed initial mandatory testing, the batch of cannabis flower or trim may be transferred to another licensee for extraction following a failed retest and subsequently retested in accordance with sub-paragraph (B)(2) below.

(3) If either sample submitted for retesting fails any required test for any analyte that failed initial mandatory testing, the batch of cannabis concentrate or cannabis products may not be remediated or retested and must be destroyed.

(B) Batches of cannabis, cannabis concentrates, or cannabis products that have failed mandatory testing may be remediated and shall be retested following remediation. A licensee may attempt to remediate any batch that fails mandatory testing, except for batches that fail due to heavy metals or pesticide contamination. A licensee may attempt to remediate the batch at the licensee’s cannabis establishment or the licensee may transfer the failed batch to another licensee for remediation. Batches of cannabis, cannabis concentrate or cannabis products that have failed mandatory testing may not be remediated in a manner that involves the combination of the batch that failed mandatory testing with a batch, or batches, of cannabis, cannabis concentrate or cannabis product that has not been tested or that has passed mandatory testing.

(1) If a failed batch is remediated using a remediation method that does not change the cannabis or cannabis product into a different matrix of cannabis or cannabis product (e.g., remediation that does not change cannabis flower or trim into cannabis concentrate, or remediation that changes cannabis concentrate into a cannabis product), then the licensee must submit two samples from the remediated batch to the same cannabis testing facility that issued the initial failed test result.

(a) Both samples submitted for retesting must pass all required testing required for any analyte category that failed initial mandatory testing.

(i) Batches of cannabis or cannabis products that fail initial mandatory testing for yeast or mold must pass mandatory testing for total yeast and mold and mycotoxins upon retesting.

(b) If either sample submitted for retesting fails any required test for any analyte category that failed initial mandatory testing, the batch of cannabis or cannabis products may be remediated in accordance with this section or destroyed.

(2) If a failed batch is remediated using a remediation method that changes the cannabis or cannabis product into a different matrix of cannabis or cannabis product, then the licensee must submit one sample from the remediated batch to the cannabis testing facility that issued the initial failed test result.

(a) The sample from the remediated batch must pass all mandatory testing required for the cannabis or cannabis product in the matrix it is in after remediation, including any tests previously passed, if applicable.

(i) Batches of cannabis or cannabis products that fail initial mandatory testing for yeast or mold must pass mandatory testing for total yeast and mold and mycotoxins upon retesting.

(b) If the remediated batch, that is in a new matrix, fails mandatory testing, the failed mandatory test is treated as an original failed mandatory test and the remediated batch may be retested or remediated in accordance with this section.

(C) A licensee that remediates any failed batch must appropriately record all remediation steps and processes in the Department’s inventory tracking system.

(D) A licensee must ensure at all times while submitting samples for testing or retesting, or transferring batches for remediation, that all cannabis and cannabis products are appropriately tracked in the Department’s inventory tracking system in accordance with the rules governing the adult use cannabis program.

(E) A licensee must take action to retest, remediate, or destroy a batch of cannabis or cannabis products within 30 days of receiving notice from the cannabis testing facility of the initial failed test result. If the licensee does not record an action on the failed batch within 30 days, the Department may issue an Order of Destruction.

(5) Department Action Following Issuance of a Failed Mandatory Test Result by a Cannabis Testing Facility. The Department may issue an Order of Destruction to a licensee that has not taken action to retest, remediate, or destroy a batch of cannabis or cannabis products that failed mandatory testing within 30 days of receiving notice from the cannabis testing facility of the initial failed test result. Unless otherwise indicated by the Department, an Order of Destruction under this subsection shall be considered final agency action and notice will be given to the licensee of the licensee’s right to appeal, consistent with the Maine Administrative Procedures Act, 5 MRS, ch. 375. The notice shall contain:

(A) The batch number of the cannabis or cannabis products to be destroyed;

(B) The method of destruction directed by the Department, if any;

(C) Any proof of destruction required by the Department; and

(D) The date by which destruction must occur and the Department must receive notice.

Appendix A

Maine Adult Use Cannabis Program Sample Collection Standard Operating Procedure for Mandatory Testing

Section 1: Purpose

To explain and standardize the process by which Adult Use Cannabis Program licensees (including without limitation, cultivation facility, products manufacturing facility, cannabis store, sample collector and cannabis testing facility licensees) must collect and transport samples of cannabis, cannabis concentrate, and cannabis products for mandatory testing.

Section 2: Compliance Documents

Sample collection must be done in compliance with this standard operating procedure (SOP) and the rules governing the adult use cannabis program, using techniques described in the Best Practices Guide published by the Department. All licensees collecting samples for mandatory testing must comply with the recordkeeping requirements of 18-691 CMR, ch. 30.

Section 3: Applicable Matrix or Matrices

This SOP applies to sample collection of cannabis, cannabis concentrate, and cannabis products.

Section 4: Scope / Field of Application

This SOP covers the requirements for sample collection and transportation for mandatory testing under Maine’s Adult Use Cannabis Program. All licensees collecting samples of cannabis, cannabis concentrate, and/or cannabis products for mandatory testing must collect samples in accordance with this SOP.

Section 5: Summary of Procedure

This SOP describes sample collection procedures for licensees collecting samples for mandatory testing.

Section 6: Definitions and Acronyms

Aliquot is a portion of a sample that is used in an analysis performed by a testing facility.

Analytical Method is a technique used qualitatively or quantitatively to determine the composition of a sample or a microbial contamination of a sample.

Best Practices Guide means the Best Practices for the Sampling of Adult Use Cannabis published by the Department available at: https://www.maine.gov/dafs/ocp/adult-use/applications-forms. All licensees and any employee of a licensee collecting samples of cannabis, cannabis concentrate, or cannabis products for mandatory testing must collect samples in accordance with the best practices described in the Guide.

CDC means the Maine Center for Disease Control and Prevention, Cannabis Testing Facility Certification Program.

Chain of Custody Form means a record, either paper-based or electronic, that documents the possession of the samples at the time of receipt by the cannabis testing facility, in accordance with chain of custody protocol prescribed by the cannabis testing facility. This record, at a minimum, must include the sample location, the number and types of containers, the mode of collection, the authorized individual who collected the sample, the date and time of collection, preservation, and requested analyses.

Cultivar means a specific variety of cannabis produced by selective breeding. Also commonly referred to as a “strain” of cannabis.

Decontaminate or decontamination means cleaning tools, equipment, sample preparation areas, and any other required areas or surfaces to neutralize or otherwise remove any analyte of interest, filth, and any other material that may be reasonably expected to interfere with the integrity of mandatory test results.

Department means Department of Administrative and Financial Services, Office of Cannabis Policy.

Harvest Batch means a specific quantity of cannabis harvested from cannabis plants of the same strain, grown under the same conditions, and harvested during a specified period of time from a specified cultivation area within a cultivation facility.

Homogeneity means the amount of cannabis or cannabis concentrate and cannabinoids within the product being consistent and reasonably equally dispersed throughout the product or each portion of the product or concentrate, or a representative sample. Sample increments for homogeneity testing must be stored and transported in a separate sample collection container from the larger, combined primary sample.

Increment or Sample Increment means a smaller sample that, together with other increments, makes up the primary sample.

Licensee means a natural person or business entity licensed pursuant to 28-B MRS, ch.1, subchapters 2 and 5 to operate a cannabis establishment.

Primary Sample means a portion of cannabis or cannabis products collected from a harvest or production batch for testing. Also referred to as a “composite sample”.

Production Batch means a specific quantity of cannabis concentrate or a cannabis product that is produced during a specified period of time using the same extraction and/or manufacturing method, formulation and/or recipe, and standard operating procedure.

Random Sampling is a procedure in which the selection of sample increments from a batch of cannabis product is based on chance, and every element of the batch has a probability of being selected. Random sampling helps produce representative cannabis samples by eliminating certain types of biases.

Representative Sample is a sample that accurately reflects the characteristics of the larger batch of cannabis product.

Requester means a person who submits a request to a licensed cannabis testing facility for State-mandated testing of cannabis or cannabis products.

Sample means, as applicable, an amount of:

1. Cannabis, cannabis concentrate, or cannabis product collected from a cannabis establishment for mandatory testing: 1. By an employee of a testing facility in accordance with 28-B MRS §604 and the rules governing the adult use cannabis program; 2. By a sample collector, in accordance with 28-B MRS §604 and the rules governing the adult use cannabis program; or 3. By a self-sampler in accordance with 28-B MRS §604-A and the rules governing the adult use cannabis program.
2. Cannabis, cannabis concentrate, or cannabis product provided to a testing facility by a cannabis establishment or other person for mandatory testing or testing for research and development purposes in accordance with 28-B MRS, ch. 1; or
3. Cannabis or cannabis product collected from a licensee by the Department for the purposes of testing the cannabis or cannabis product for quality control purposes pursuant to 28-B MRS §512(2).

Sample Collector means a person licensed pursuant to this Rule and 28-B MRS, ch. 1 to collect samples of cannabis and cannabis products for testing and to transport and deliver those samples to a testing facility. A sample collector must hold a valid individual identification card (“IIC”).

Self-sampler or Self-sampling licensee means a cultivation facility, products manufacturing facility, or cannabis store licensee that collects samples of cannabis, cannabis concentrate, and cannabis products for mandatory testing or an employee of a cultivation facility, products manufacturing facility, or cannabis store licensee who collects samples of cannabis, cannabis concentrate, and cannabis products for that licensee for mandatory testing. Any individual collecting samples for mandatory testing must hold a valid individual identification card (“IIC”).

Sterilization or Sterilize means cleaning tools, equipment, sample preparation areas, and any other required areas or surfaces to destroy and remove all forms of life present in those areas which may be reasonably expected to interfere with the integrity of mandatory test results, specifically, microbiological impurities.In the context of this guide,areas and surfaces that have been cleaned in this manner are “sterile”.

Section 7: Safety

The safety rules of each facility to be sampled will be followed with no exceptions.

Each facility will be responsible for educating any sample collector or employee of a cannabis testing facility collecting samples for mandatory testing of the rules and safety requirements of the facility where samples for mandatory testing are collected.

All safety rules will be followed as dictated by Maine motor vehicle and traffic laws.

Cross-contamination from site to site must be considered during every step of the sample collection process. A sample collector or employee of a cannabis testing facility collecting samples for mandatory testing must decontaminate any reusable tools or equipment used for sample collection at more than one facility or sampling site between sample collection events.

Section 8: Pre-Sample Collection Procedure

The following pre-sample collection procedure applies to self-sampling licensees or sample collector licensees collecting samples for mandatory testing:

The requester, and if applicable, the sample collector, must keep records of the sample collection information required in 18-691 CMR, ch. 30.

The self-sampler or sample collector must contact the cannabis testing facility(ies) conducting analyses for mandatory testing prior to collecting any samples to ensure that the sampler is using sample containers appropriate for the matrix tested and analyses requested.

The self-sampler or sample collector licensee must keep records of the instructions given to the self-sampler or sample collector licensee by the cannabis testing facility conducting the analyses.

The self-sampler or sample collector must collect samples for mandatory testing in accordance with this SOP, the Department’s Best Practices Guide, and instructions given to the licensee by the cannabis testing facility conducting the mandatory analyses.

The following pre-sample collection procedure applies to a cannabis testing facility licensee collecting samples for mandatory testing:

A cannabis testing facility collecting samples for mandatory testing from a licensee must keep records of the sample collection event in accordance with its site-specific sample collection SOP, if any, and this rule.

A cannabis testing facility collecting samples for mandatory testing must conduct its sample collection and sample transport in accordance with this SOP, the Department’s Best Practices Guide, and any other requirements of the cannabis testing facility’s quality system.

Section 9: Materials Required - Equipment and Supplies

The following equipment and supplies may be used for sample collection as applicable:

NOTE: Images and examples of the sample collection equipment and supplies listed below are included in the Department’s Best Practices Guide.

Spatulas (disposable or stainless steel).

Forceps (disposable or stainless steel).

Balance (capable of 0.01g measurements, provided by licensee, and checked for calibration).

Calibrated verification weights appropriate to verify accuracy of balance (provided by licensee).

Amber jars, Whirl-Pak bags, PTFE Centrifuge Tubes or equivalent, sterile (for edible cannabis products).

Borosilicate VOA vials, PTFE Centrifuge Tubes or equivalent, sterile (for cannabis concentrates or extracts)

Amber Bottles/Whirl-Pak bags or equivalent, sterile (for cannabis plant material).

Coolers and ice packs or other appropriate refrigeration to maintain collected samples at required temperature, as appropriate.

A transport manifest generated by the inventory tracking system for tracking all collected samples from the sample collection site to the cannabis testing facility.

Pens with indelible ink.

Plastic cup or beaker to hold sample container upright while depositing sample.

Security tamper evident tape.

Sample labels (may write directly on sample container if appropriate).

Equipment logbook.

Disposable 1mL (or larger) syringes or pipettes (for liquid transfer).

Sterile/sanitized nitrile, latex, or rubber gloves.

Teri-Wipes, Clorox wipes or equivalent.

Foil or other method of protecting sample containers from light (for mycotoxin testing).

Clean lab wipes (Kimwipes or equivalent).

Transport container for cannabis material that is stored at room temperature (cooler without ice pack is acceptable).

Cannabis testing facility’s sample collection/chain-of-custody form.

NOTE: For sample collectors or employees of cannabis testing facilities, sample collection tools and supplies may be provided by the requester at the location to be sampled; this will minimize the possibility of outside contamination. The requester may also supply all necessary sample collection equipment and sample containers. The requester should receive guidance from the testing facility regarding what types and sizes of sample collection containers should be used. The testing facility may also ship or drop off sample collection containers to the requester in preparation of the sampling event.

Any self-sampler, sample collector, or employee of a cannabis testing facility that uses re-usable sample collection tools and equipment must keep a log of cleaning and sterilization for every re-usable sample collection tool and equipment used.

Section 10: Reagents and Standards

The following reagents or standards may be used to clean reusable sample collection tools and equipment:

Cleaning supplies – solvent, bleach, 70% ethanol, etc.

Deionized Water

The self-sampler, sample collector, or employee of a cannabis testing facility that cleans reusable sample collection tools and equipment will be responsible for keeping a log of cleaning and supplies used.

NOTE: Some cleaning supplies, such as alcohol or ethanol, are solvents which are tested for pursuant to Maine’s mandatory testing requirements. To that end, it is important that reusable sample collection tools that are used to collect sample increments for residual solvent testing are not cleaned using alcohol or ethanol.

Section 11: Sample collection, preservation, shipment and storage Further guidance on how to perform the sample collection procedures outlined below, including selection of appropriate sample collection equipment and tools based upon matrix type, collection of random sample increments, etc. is included in the Department’s Best Practice Guide.

Representative Sampling

When sampling a batch, the self-sampler, sample collector, or employee of a cannabis testing facility collecting samples for mandatory testing shall check for any signs of non-uniformity. Some obvious indicators may be different types or sizes of containers, variations in marks and labels, or mixed batch numbers. During sample collection, the self-sampler, sample collector, or employee of a cannabis testing facility shall look for differences in the usable cannabis being sampled such as color, shape, size, and treatment. The batch must be uniform for all factors that appear on the label; hence, variations in the product may indicate nonuniformity in the batch and any sample collected may not be representative for testing. The self-sampler, sample collector, or employee of a cannabis testing facility shall note these anomalies in the sample collection records kept by the licensee in accordance with 18-691 CMR, ch. 30.

General procedural guidelines that apply to all sample collection include:

a. The self-sampler, sample collector, or employee of a cannabis testing facility must be given access to the entire batch.

b. The self-sampler, sample collector, or employee of a cannabis testing facility must use of appropriate sampling equipment.

c. The self-sampler, sample collector, or employee of a cannabis testing facility must consistently follow sample collection procedures based upon matrix type.

d. The self-sampler, sample collector, or employee of a cannabis testing facility must take equal portions for each sample increment.

e. The self-sampler, sample collector, or employee of a cannabis testing facility must randomly select sample increments throughout the batch to ensure a representative sample.

f. The self-sampler, sample collector, or employee of a cannabis testing facility must obtain at least a minimum number of sample increments.

g. The self-sampler, sample collector, or employee of a cannabis testing facility must record all observations and procedures used while collecting the sample increments in the sample collection records kept in accordance with 18-691 CMR, ch. 30.

h. All samples collection containers must be sealed with tamper evident seals in front of a witness, who must be an individual identification cardholder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and record the time and date of sealing on the tamper evident seal(s) and must further sign and date an attestation in accordance with the sample collection recordkeeping requirements of 18-691 CMR, ch. 30.

Random Sampling

Sample increments should be randomly selected from different locations within the batch, which could be comprised of a container or set of containers, including prepackaged units of cannabis products. Random samples are determined by using the procedure below.

1. Determine the size of the batch and how many containers make up the batch.
2. Determine the number of samples needed based on the batch size.
3. Count the number of containers in batch.
4. Randomly select the containers to be sampled. The self-sampler, sample collector, or employee of a cannabis testing facility must have a random number generator or other means of randomly selecting sample increment units.
5. Record the container numbers to be sampled in the sample collection records.
6. Take the same approximate weight from each container that is sampled.

Sampling a Batch of Cannabis Flower, Trim, or Pre-rolled Cannabis Cigarettes

A harvest batch of cannabis flower, trim, or pre-rolled (uninfused) cannabis cigarettes must be sampled in accordance with the following table based upon the weight of the harvest batch after it has been “dried” or “cured”.

Harvest Batch Weight Range*

Composite Sample Amount*

≤ 2.5 kg

6.5 g (13 increments of 0.5 grams each)

2.5 kg < w ≤ 5 kg

9.5 g (19 increments of 0.5 grams each)

5 kg < w ≤ 7.5 kg

16 g (16 increments of 1 gram each)

7.5 kg < w ≤ 10 kg

22 g (22 increments of 1 gram each)

*For harvest batches in excess of 10 kg, the harvest batch must be divided and sampled in batches of 10 kg or less.

Weigh the empty sample container(s) and record the weight in the sample collection records.

Locate the batch to be sampled.

Review the container label information for harvest lot number, producer, and other pertinent information and match to the sampling request or transport information, as applicable.

Record the batch size and number of containers in the batch as reported by the requester.

Select the appropriate sampling tool to ensure that it reaches all portions of the container.

Visually inspect each test sample increment to assess uniformity, if non-uniformity is identified, record observation in the sample collection record. It is expected there will be variable sizes and appearance of flower material.

For harvest batches of cannabis flower, trim, or pre-rolled cannabis cigarettes stored in storage containers (I.e., plastic tubs), the harvest batch containers shall be sampled in a spatial pattern to ensure that each region of the container has been sampled.

When collecting sample increments, approximately equal amounts of product are to be taken with each increment and from each container. Care must be taken by the self-sampler, sample collector, or employee of a cannabis testing facility to not damage any portion of the product that is being sampled or any portion of the product that remains.

Collect sample increments (minimum of twelve) from random locations as determined above throughout the sample batch into a large sterile container. Sample increments for homogeneity testing must be placed in separate, sterile containers.

The sample increments should be collected and each increment should be packaged in accordance with the requirements identified by the cannabis testing facility(ies) conducting the mandatory analyses.

Combine all sample increments to form the composite sample(s) as directed by the cannabis testing facility. Please note: sample increments to analyze homogeneity will require separate sample containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the composite sample(s). The self-sampler, sample collector, or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Unpackaged Servings or Prepackaged Retail Units of Cannabis Concentrate and Cannabis Products

For unpackaged or pre-packaged samples, based on batch size, the required number of increments collected from each batch is listed in the following chart. Each sample increment is one serving of an unpackaged retail unit or one pre-packaged unit (i.e., one unpackaged serving or one pre-packaged unit containing multiple servings is one sample increment).

of Unpackaged servings or Pre-packaged retail units in Production Batch*

Number of Sample increments**

Where to take samples:

≤ 50

2 units

One from beginning and one from end

51 -150

3 units

Beginning (1), Middle (1), End (1)

151 – 500

5 units

Beginning (2), Middle (2), End (1)

501-1200

8 units

Beginning (3), Middle (2), End (3)

1201 -3200

13 units

Beginning (4), Middle (5), End (4)

3201-10000

20 units

Beginning (6), Middle (7), End (7)

*For production batches in excess of 10,000 units, the production batch must be divided and sampled in batches of 10,000 units or less.

**Depending on the weight of the pre-packaged samples, more than the listed number of increments may need to be taken as directed by the cannabis testing facility.

The increments sampled should cover the range of the batch. See table above.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

For unpackaged sample increments, select the appropriate sampling tool to ensure that it reaches all portions of the container.

Visually inspect each test sample increment to assess uniformity. If non-uniformity is identified, record observation in the sample collection record.

Randomly select unpackaged or pre-packaged sample increments from the beginning third, middle third, and end third of the container(s) holding the unpackaged servings or pre-packaged units. For unpackaged sample increments, sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the composite sample(s). The self-sampler, sample collector, or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Shatter/Wax/Slab Concentrates

For cannabis concentrate, based on batch weight, the required number of sample increments is listed in the following chart.

Production Batch Weight*

Composite sample amount

≤ 0.5 kg

6 g (12 increments of 0.5 grams each)

0.5 kg < w ≤ 1 kg

8 g (16 increments of 0.5 grams each)

1 kg < w ≤ 1.5 kg

10 g (20 increments of 0.5 grams each)

1.5 kg < w ≤ 2 kg

12 g (24 increments of 0.5 grams each)

2 kg < w ≤ 5 kg

14 g (28 increments of 0.5 grams each)

*For production batches in excess of 5 kg, the production batch must be divided and sampled in batches of 5 kg or less.

Note: The shatter, wax, or other concentrate slab may have varying degrees of thickness; thus, the amounts of cannabinoids or potential residual solvent(s) may vary with the thickness of the concentrate. It is important that the samples taken are equivalent from each region of thickness to provide a representative sampling of the overall product. The thinner portions of the concentrate slab will have more surface area exposed allowing for a higher rate of diffusion of residual solvents from the wax or shatter than the thicker portions.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

Identify three (3) thicknesses or regions to the product.

Using spatula or forceps, collect the determined number of sample increments needed from each region of the overall production batch to meet the minimum number of increments required above.

Collect sample increments (minimum of twelve) from random locations throughout the sample batch into a container. Sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the sample containers. The self-sampler, sample collector, or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seals in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information is appropriately recorded.

Sampling Oils, Tinctures, and Other Liquids

Unless already prepackaged into individual retail units (see above), sample increments of oils or tinctures will be collected from container(s) holding the production batch of the oil or tincture in accordance with the following chart.

Production Batch Weight*

Composite Sample Amount

≤ 0.5 kg

6 g (12 increments of 0.5 grams each)

0.5 kg < w ≤ 1 kg

8 g (16 increments of 0.5 grams each)

1 kg < w ≤ 1.5 kg

10 g (20 increments of 0.5 grams each)

1.5 kg < w ≤ 2 kg

12 g (24 increments of 0.5 grams each)

2 kg < w ≤ 5 kg

14 g (28 increments of 0.5 grams each)

*For production batches in excess of 5 kg, the production batch must be divided and sampled in batches of 5 kg or less.

Note: The container holding the oil or tincture shall be inverted a minimum of three (3) times to ensure that the oil or tincture is homogenous. Each inversion shall be complete, i.e., the oil shall flow to the cap of the container and back to the base three times. Viscous substances such as oil may need to be allowed to come to room temperature before inversion occurs. A self-sampler, sample collector or employee of a cannabis testing facility may allow viscous substances to come to room temperature to promote inversion.

Weigh the empty sample container(s) and record the weight in the sample collection record.

Locate the batch to be sampled.

Review the container label information for production batch number, producer, and other pertinent information and match to the sampling request or transport information.

Record the batch size and number of containers in the batch as reported by the requester.

Invert oil as described above.

Weigh and record the weight and of the production batch in the sample collection record.

Using a 0.5 mL, 1.0 mL, 10.0 mL or other appropriate sterile disposable pipette1 or syringe, remove the sample amount for each sample to be collected into sterile vial or other appropriate container as directed by the cannabis testing facility. The sample increments (minimum of twelve) shall be taken at different depths of the oil or tincture to ensure that the oil or tincture is sampled representatively. The top third of the container, middle third of the container, and bottom third of the container must be sampled. Sample increments for homogeneity testing must be placed in separate, sterile containers.

Weigh and record the weight of the sample(s) in the sample collection record.

Seal and label the sample containers. The self-sampler, sample collector, or employee of a cannabis testing facility must seal each container holding sampled material using tamper evident seal in the presence of a witness who is an IIC-holder employed by the requester. Both the self-sampler, sample collector, or employee of a cannabis testing facility and the witness must initial and date the seal and sign the required attestation.

Complete the sample collection record while at the sampling location and generate an appropriate transport manifest and test sample labels in the inventory tracking system. Make sure all notes, containers sampled, and all field information are appropriately record.

Note: Sample amounts collected will be no less than the minimum sample size required by Table 5.5-A in Rules for the Certification of Cannabis Testing Facilities, 18-691 CMR, ch.5(That table is reproduced in sections above). If there is a discrepancy between the tables above and Table 5.5-A, the table in the rule controls. A testing facility may require that additional sample material be taken for quality control samples.

Section 12: Sample Transportation and Receipt

The licensee collecting samples for mandatory testing must transport those samples to the cannabis testing facility(ies) conducting the analyses, except that a cannabis testing facility may offer a service to retrieve samples collected from a self-sampler at the cannabis establishment where the samples were collected. All samples must be accompanied by a transport manifest generated by the METRC inventory tracking system in accordance with the requirements of 18-691 CMR, ch. 30, §2.

Except as noted in Sampling Oils, Tinctures and Other Liquids, samples must be maintained at all times during collection and transport at the temperature at which the cannabis, cannabis concentrate, or cannabis product is stored to prevent microbial growth. The self-sampler, sample collector, or employee of a cannabis testing facility must provide appropriate refrigeration during transport for samples requiring refrigeration.

Self-samplers and sample collectors must deliver samples to a cannabis testing facility in accordance with any instructions or restrictions indicated by the cannabis testing facility during its pre-sampling discussion with the self-sampler or sample collector.

Cannabis testing facilities must receive and account for all samples for mandatory testing in accordance with the testing facility’s SOP regarding sample receipt. A testing facility must inspect all samples upon receipt and promptly notify the requester, and if applicable, the sample collector, if samples are rejected and the reason for such rejection and record the same in the sample collection record and in the inventory tracking system.

Section 13: Recording Sampling Events in METRC Inventory Tracking System

Self-samplers, sample collectors, and employees of a cannabis testing facility must track all inventory, including sample collection events, in accordance with the user guide provided by the Department’s required inventory tracking system.

Section 14: Quality Control

A cannabis testing facility may require any licensee to collect and remit additional sample increments or analytic blanks (e.g., equipment, trip, field blanks) as required by the testing facility’s quality system.

At all times, licensees, including cannabis testing facilities, must comply with their Department-approved standard operating procedures, including this SOP and the licensee’s quality control system.

Section 15: Calibration and Standardization

The field balance must be initially verified as within the standards listed in the National Institute of Standards and Technology (NIST) Handbook by a scale dealer or repairman registered pursuant to 10 MRS §2651, and calibrated on a yearly basis.

The field verification weights must be calibrated on a yearly basis.

The field balance must be verified each day it is use with weights that bracket the range of use. These verifications will be documented and recorded in the equipment log maintained by the self-sampler, sample collector, or employee of a cannabis testing facility collecting samples for mandatory testing.

Section 16: Waste Management

All waste must be disposed of in accordance with the requirements of 18-691 CMR, ch. 30.

Section 17: Documentation

The following Quality Records shall be generated and managed for every sample collected:

Required Record

Form Steward

Copies to be Retained By

Sample collection record, to be completed by licensee collecting samples

Licensee collecting samples for mandatory testing

Licensee collecting samples for mandatory testing

Transport Manifest, generated by METRC, to accompany every sample from sampling site to cannabis testing facility

Office of Cannabis Policy

2 copies per Adult Use Cannabis Program Rule

Chain-of-Custody Form, per cannabis testing facility SOP

Cannabis Testing Facility Licensees

Per cannabis testing facility SOP as applicable

Section 18: Sample Collector Signatures

By signing below the self-sampler, sample collector, or employee of a cannabis testing facility collecting samples for mandatory testing affirms that they have read, understand and agree to follow this current version of the SOP. They also agree that they have read and understood 18-691 CMR, ch. 30, §2, this SOP and the Best Practices Guide.

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Name__________________ Signature:____________________ Date:_______

Fiscal impact note, included pursuant to 5 MRS §8063: The Department estimates that the changes implemented by this rulemaking will have a de minimus fiscal impact on municipalities and counties.

ACCESSIBILITY CHECK: July 7, 2025 (by OCP)

Office of Cannabis Policy, Guidance Documents, OCP Website: Resources, https://www.maine.gov/dafs/ocp/sites/maine.gov.dafs.ocp/files/inline-files/OMP_Memorandum-AUMP_Retesting_of_Cannabis_Failed_Test.pdf (accessed April 29, 2022). On January 26, 2021, the Department issued a Memorandum on Retesting and Remediation of Cannabis Items Subject to a Failed Test which provides examples of the retesting and remediation requirements of this section. ↑