------>[Jump directly to Part LLL, the section related to school reorganization]<--------

 

 

123rd Second Regular Session

Change Package Language Summary

March, 2008

 

 

 

 

Part C in LD 2173 is deleted and replaced with the following new Part C:

 

 Part C

 

Sec.  C-1. 20-A MRSA §4102 sub-§4, ¶A is amended to read:

 

A. Elementary schools in school administrative districts and community school districts may only be closed if approved by the voters in accordance with section 1407 and section 1751, subsection 5 1512 substituting school administrative district or community school district for regional school unit.   This amendment shall apply retroactively to June 7, 2007.

 

 

 

Sec.  C-2. 20-A MRSA §5806 sub-§2, is amended to read:

2. Maximum allowable tuition.  The maximum allowable tuition charged to a school administrative unit by a private school shall be the rate established under subsection 1 or the state average per public secondary student cost as adjusted, whichever is lower, plus an insured value factor. The insured value factor shall be computed by dividing 5% of the insured value of school buildings and equipment by the average number of pupils enrolled in the school on October 1st and April 1st of the year immediately before the school year for which the tuition charge is computed. It may not exceed 10% of a school's legal tuition rate per student in any one year beginning with the 1988-89 school year.

For the 1988-89 school year only the state share of the increase in the insured value factor shall be paid in the year of allocation.

Notwithstanding this section, for the 2008-09 school year only, a school administrative unit shall pay tuition for secondary students in private schools pursuant to the tuition rate established in section 5806, subsection 1 only.

 

 

 

Sec.  C-3. 20-A MRSA §15671 sub-§7, ¶ A, is amended to read:

A. The base total calculated pursuant to section 15683, subsection 2 is subject to the following annual targets.

(1) For fiscal year 2005-06, the target is 84%.

(2) For fiscal year 2006-07, the target is 90%.

(3) For fiscal year 2007-08, the target is 95%.

(4) For fiscal year 2008-09 and succeeding years, the target is 100%97%.

(5) For fiscal year 2009-10 and succeeding years, the target is 100%.

 

 

 

Sec.  C-4. 20-A MRSA §15671 sub-§7, ¶ B, is amended to read:

B. The annual targets for the state share percentage of the statewide adjusted total cost of the components of essential programs and services are as follows.

(1) For fiscal year 2005-06, the target is 52.6%.

(2) For fiscal year 2006-07, the target is 53.86%.

(3) For fiscal year 2007-08, the target is 53.51%.

(4) For fiscal year 2008-09 and succeeding years, the target is 55%54.03%.

(5) For fiscal year 2009-10 and succeeding years, the target is 55%.

 

 

 

Sec.  C-5. 20-A MRSA §15671-A sub-§2, ¶ B, ¶¶4 is amended to read:

(4) Except as provided in subparagraph (6), f For the 2008 property tax year and subsequent tax years, the full-value education mill rate is the amount necessary to result in a 45.0% 45.97%statewide total local share in fiscal year 2008-09 and after.

 

 

 

Sec.  C-6. 20-A MRSA §15671-A sub-§2, ¶ B, ¶¶4-A is enacted to read:

(4-A) Except as provided in subparagraph (6), for the 2009 property tax year and subsequent tax years, the full-value education mill rate is the amount necessary to result in a 45.0% statewide total local share in fiscal year 2009-10 and after.

 

 

 

Sec.  C-7. 20-A MRSA §15675 sub-§1, ¶ A, as enacted by PL 2003, c. 504, Pt. A, §6 is amended to read:

 A. For a school administrative unit with 15 or fewer limited English proficiency students, the unit receives an additional weight of .50 .70 per student; 

 

 

 

Sec.  C-8. 20-A MRSA §15675 sub-§1, ¶ B, as amended by PL 2005, c. 12, Pt. UU, §2 and affected by §§12 and 13 and Pr. WW, §§18,  is further amended to read:

 B. For a school administrative unit with more than 15 and fewer than 251 limited English proficiency students, the unit receives an additional weight of .30 .50 per student;   

 

 

 

Sec.  C-9. 20-A MRSA §15675 sub-§1, ¶ C, is amended to read:

 C. For a school administrative unit with 251 or more limited English proficiency students, the unit receives an additional weight of .60 .45 per student; and   

 

 

 

Sec.  C-10. 20-A MRSA §15683-A, is amended to read:

 

For each school administrative unit, that unit's total debt service allocation is that unit's debt service costs as defined in section 15672, subsection 2-A.  For 2008-09 funding year only, for each school administrative unit, that unit's total debt service allocation is that unit's debt service costs as defined in section 15672, subsection 2-A excluding insured value factor pursuant to section 15672, subsection 2-A, paragraph C.

 

 

 

Sec. C-11. 20-A MRSA §15688, sub-§3-A, ¶B-1,  as enacted by PL 2007, c. 240, Pt. XXXX, §30, is repealed.

 

 

 

Sec. C-12. 20-A MRSA §15688, sub-§3-A, ¶C,  as amended by PL 2007, c. 240, Pt. XXXX, §30, is further amended to read:

 

C. For a school administrative district, community school district or regional school unit composed of more than one municipality, the unit’s contribution to the total cost of education is the lesser of:

(1) The total cost as described in subsection 1; and

 

(2) The sum of the totals calculated for each member municipality pursuant to paragraph B, subparagraph (2), plus the total calculated pursuant to paragraph B-1 if applicable.

 

 

 

Sec. C-13. 20-A MRSA §15689, sub-§1-B  is enacted to read:

 

1-B.  Adjustments to state contributions to member municipalities in regional school units.     The minimum state allocation provisions of subsection 1, paragraph B are applicable for each case in which the school administrative units in existence prior to the operational date of the new regional school unit received an adjustment under subsection 1, paragraph B for fiscal year 2007-08 or fiscal year 2008-09. For each regional school unit eligible under this subsection, the minimum state allocation provisions of subsection 1, paragraph B are applicable for each member municipality that was a member of the eligible school administrative units in existence prior to the operational date of the new regional school unit.

 

 

 

Sec.  C-14. 20-A MRSA §15689, sub-§2, ¶ B, as amended by PL 2007, c. 240, Pt. C, §3 is further amended to read:

B. The school administrative unit's special education costs as calculated pursuant to section 15681-A, subsection 2 multiplied by the following transition percentages:

(1) In fiscal year 2005-06, 84%;

(2) In fiscal year 2006-07, 84%;

(3) In fiscal year 2007-08, 84%; and

(4) In fiscal year 2008-09 and succeeding years, 100%50%.; and

(5) In fiscal year 2009-10 and succeeding years, 84%.

 

 

 

Sec.  C-15. 20-A MRSA §15689-A, sub-§12-A, is amended to read:

 

12-A.  Learning through technology.   The commissioner may pay costs attributed to staff support and system maintenance for a program that promotes learning through technology. A transfer of All Other funds from the General Purpose Aid for Local Schools account to Personal Services and All Other line categories in the Learning Through Technology General Fund non-lapsing account sufficient to support the Personal Services and All Other costs of one Education Team and Policy Director position, the general fund share of one Education Specialist II position, one two Education Specialist III positions, one Planning and Research Associate I position, one Director of Special Projects, one Education Specialist II position and the agreement that provides one-to-one wireless computers for 7th grade, 8th grade and high school students and educators may occur annually by financial order upon recommendation of the State Budget Officer

and approval of the Governor.

 

 

 

Sec.  C-16. 20-A MRSA §15689-A, sub-§16, is enacted to read:

16. Transportation Administration.  The commissioner may pay costs attributed to staff support and system maintenance necessary to implement the transportation requirements of this chapter and Chapter 215. A transfer of All Other funds from the General Purpose Aid for Local Schools account to Personal Services and All Other line categories in the Support Systems General Fund account sufficient to support the Personal Services and All Other costs of one Education Specialist III positions may occur annually by financial order upon recommendation of the State Budget Officer and approval of the Governor.

 

 

 

Sec.  C-17. 20-A MRSA §15689-B, sub-§7, is amended to read:

7. Required data; subsidy payments withheld.  A school administrative unit shall provide the commissioner with information that the commissioner requests to carry out the purposes of this chapter, according to time schedules that the commissioner establishes. The commissioner may withhold monthly subsidy payments from a school administrative unit when information is not filed in the specified format and with specific content and within the specified time schedules.  If the school administrative unit files the information in the specified format, the Department of Education shall include the payment of the withheld subsidy in the next regularly schedule monthly subsidy  payment.

 

 

 

Sec.  C-18. 20-A MRSA §15689-B, sub-§7-A, is enacted to read:

7-A. Penalty for late submission of required data.  Notwithstanding any other provision of this Title, the commissioner may implement the following subsidy penalty for a school administrative unit that is not in compliance with subsection 7.  If a school administrative unit has not filed the required data pursuant to section 7 within three months of the due date then a penalty equal to 1% of that unit’s monthly subsidy check times the number of months past due.

 

 

 

Sec.  C-19. 20-A MRSA §15690, sub-§1, ¶ C is amended to read:

 

C. The state share of the total cost of funding public education from kindergarten to grade 12 as described in section 15688, excluding state-funded debt service for each school administrative unit, is limited to the same proportion as the local school administrative unit raises of its required contribution to the total cost of education as described in section 15688, excluding state-funded debt service costs.  For school administrative units that annually demonstrate savings by utilizing a purchasing portal, the commissioner may suspend all or a portion of any adjustment to the unit’s state contribution pursuant to the purpose of this paragraph.

 

 

 

Sec.  C-20. 20-A MRSA §15905 sub-§1 is amended to read:

1.  Approval authority. The state board must approve each school construction project, unless it is a small scale school construction project as defined in section 15901, subsection 4-A, a non state funded project as defined in section 15905-A or a permanent space lease-purchase project.

 A. The state board may approve projects as long as no project approval will cause debt service costs, as defined in section 15672, subsection 2-A, paragraph A, to exceed the maximum limits specified in Table 1 in subsequent fiscal years.

 

Table 1

Fiscal year Maximum Debt Service Limit 

 1990 $  48,000,000

 1991 $  57,000,000

 1992 $  65,000,000

 1993 $  67,000,000

 1994 $  67,000,000

 1995 $  67,000,000

 1996 $  67,000,000

 1997 $  67,000,000

 1998 $  67,000,000

 1999 $  69,000,000

 2000 $  72,000,000

 2001 $  74,000,000

 2002 $  74,000,000

 2003 $  80,000,000

 2004 $  80,000,000

 2005 $  84,000,000

 2006 $  90,000,000

 2007 $  96,000,000

 2008 $ 100,000,000

 2009 $ 104,000,000

 2010 $ 108,000,000

 2011 $ 126,000,000

2012  $ 126,000,000

2013  $ 126,000,000

 

 

 

Sec.  C-21.   Mill expectation.   The mill expectation pursuant to the Maine Revised Statutes, Title 20-A, section 15671-A for fiscal year 2008-09 is 6.54.

 

 

 

Sec.  C-22.  Total cost of funding public education from kindergarten to grade 12.  The total cost of funding public education from kindergarten to grade 12 for fiscal year 2008-09 is as follows:

 

           

2008-09

 

TOTAL

Total Operating Allocation

 

 

 

Total Operating Allocation pursuant to the Maine Revised Statutes, Title 20-A, section 15683 without transitions percentage

 

 

$1,326,051,106

 

 

Total Operating Allocation pursuant to the Maine Revised Statutes, Title 20-A, section 15683 with 97% transitions percentage

 

 

$1,286,269,573

 

 

 

 

Total other subsidizable costs pursuant to the Maine Revised Statutes, Title 20-A, section 15681-A

 

$371,300,906

 

 

            Total Operating Allocation

 

Total operating allocation pursuant to the Maine Revised Statutes, Title 20-A, section 15683 and total other subsidizable costs pursuant to Title 20-A, section 15681-A

 

 

 

$1,657,570,479

 

 

 

 

Total Debt Service Allocation

 

 

 

Total debt service allocation pursuant to the Maine Revised Statutes, Title 20-A, section 15683-A

 

$90,887,874

 

 

 

Total Adjustments and Miscellaneous Costs

 

 

 

Total adjustments and miscellaneous costs pursuant to the Maine Revised Statutes, Title 20-A, section 15689 and 15689-A

 

 

$71,803,813

 

 

Total Cost of Funding Public Education from Kindergarten to Grade 12

 

 

 

Total cost of funding public education from kindergarten to grade 12 for fiscal year 2008-09 pursuant to the Maine Revised Statutes, Title 20-A, chapter 606-B

 

$1,820,262,166

 

 

 

 

 

 

 

 

 

 

 

Sec.  C-23. Local and state contributions to total cost of funding public education from kindergarten to grade 12.  The local contribution and the state contribution appropriation provided for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 2008 and ending June 30, 2009 is calculated as follows:

 

 

 

2008-09

2008-09

Local and State Contributions to the Total Cost of Funding Public Education from Kindergarten to Grade 12. 

LOCAL

STATE

 

 

 

Local and state contributions to the total cost of funding public education from kindergarten to grade 12 pursuant to the Maine Revised Statutes, Title 20-A, section 15683.

 

 

$836,712,351

 

 

$983,549,815

 

 

 

 

 Sec.  C-24.  Limit of State's obligation.  If the State's continued obligation for any individual component contained in section 22 and section 23 of this Part exceeds the level of funding provided for that component, any unexpended balances occurring in other programs may be applied to avoid proration of payments for any individual component.  Any unexpended balances from section 5 and 6 of this Part may not lapse but must be carried forward for the same purpose.

 

 

 

Sec.  C-25.  Authorization of payments.  Sections 22 and 23 of this Part may not be construed to require the State to provide payments that exceed the appropriation of funds for General Purpose Aid for Local Schools for the fiscal year beginning July 1, 2008 and ending June 30, 2009.

Amends Part H, sections H-1 and H-3 of LD 2173 as follows:

 

Sec. H-1. Transfer of funds from Accident, Sickness and Health Insurance Internal Service Fund. Notwithstanding any other provision of law, the State Controller shall transfer $500,000 by June 30, 2008 and $500,000 $1,117,799 by June 30, 2009 from the Accident, Sickness and Health Insurance Internal Service Fund in the Department of Administrative and Financial Services to the unappropriated surplus of the General Fund. The State Controller shall also transfer the equitable share of health insurance savings to each participating fund by June 30, 2008 and June 30, 2009. The fund transfers are to recognize health insurance savings achieved through changes to be adopted by the State Employee Health Commission.

 

 

 

Sec. H-3. Transfer of excess equity reserves from Retiree Health Insurance Internal Service Fund. Notwithstanding any other provision of law, the State Controller shall transfer $9,936,891 $16,832,248 representing the General Fund share of excess equity reserve for retiree health insurance by June 30, 2008 from the Retiree Health Insurance Internal Service Fund in the Department of Administrative and Financial Services to the unappropriated surplus of the General Fund. The State Controller shall also transfer the equitable share of retiree health insurance excess equity reserve to each participating fund by June 30, 2008.

 

 

 

Adds to Part H a new section H-4 as follows:

 

Sec. H-4. Transfer of funds from Retiree Health Insurance Internal Service Fund. Notwithstanding any other provision of law, the State Controller shall transfer $185,196 by June 30, 2009 from the Retiree Health Insurance Internal Service Fund in the Department of Administrative and Financial Services to the unappropriated surplus of the General Fund. The State Controller shall also transfer the equitable share of retiree health insurance savings to each participating fund by June 30, 2009. The fund transfers are to recognize retiree health insurance savings achieved through changes to be adopted by the State Employee Health Commission.

Amends Part I section I-2 of LD 2173 as follows:

 

Current

 

Sec. I-2. Department of Administrative and Financial Services; statewide enterprise system, e-mail; lease-purchase authorization. Pursuant to the Maine Revised Statutes, Title 5, section 1587, the Chief Information Officer within the Department of Administrative and Financial Services may enter into financing arrangements in fiscal years 2007-08, 2008-09 and 2009-10 for the acquisition of a statewide enterprise system to facilitate e-mail archiving and related activities, including software, necessary hardware and peripherals and contractual services associated with the implementation and deployment of the system. The financing arrangements may not exceed $3,000,000 and 5 years in duration. The interest rate may not exceed the current market rate at the time of the financing. The annual principal and interest costs must be paid from the appropriate line category in the Office of Information Services account.

 

 

Proposed

 

Sec. I-2. Department of Administrative and Financial Services; statewide enterprise system, e-mail; lease-purchase authorization. Pursuant to the Maine Revised Statutes, Title 5, section 1587, the Department of Administrative and Financial Services, Office of Information Technology may enter into financing arrangements on or after July 1, 2008 for the acquisition of a statewide enterprise system to facilitate e-mail archiving and related activities, including software, necessary hardware and peripherals and contractual services associated with the implementation and deployment of the system. The financing arrangements may not exceed $3,000,000 in principal costs and 5 years in duration. The interest rate may not exceed 8% and interest costs may not exceed $700,000. The annual principal and interest costs must be paid from the appropriate line category in the Office of Information Services account.

 

 

 

 

Amends Part N, section N-1 of LD 2173 on page 212 as follows:

 

Current

  Sec. N-1. 2 MRSA §6, sub-§2, as amended by PL 2007, c. 273, Pt. B, §1 and affected by §7, is further amended to read:

 

2. Range 90.   The salaries of the following state officials and employees are within salary range 90:

Superintendent of Financial Institutions;

Superintendent of Consumer Credit Protection;

State Tax Assessor;

Superintendent of Insurance;

Executive Director of the Maine Consumer Choice Health Plan;

Deputy Commissioner, Department of Administrative and Financial Services;

Associate Commissioner for Adult Services, Department of Corrections;

Associate Commissioner for Juvenile Services, Department of Corrections;

Public Advocate;

Deputy Commissioner of Integrated Services, Department of Health and Human Services;

Deputy Commissioner of Health, Integrated Access and Strategy, Department of Health and Human Services;

Chief Information Officer;

Associate Commissioner for Legislative and Program Services, Department of Corrections; and

Chief of the State Police.

 

Proposed

  Sec. N-1. 2 MRSA §6, sub-§2,  as amended by PL 2007, c. 273, Pt. B, §1 and affected by §7, is further amended to read:

 

2. Range 90.   The salaries of the following state officials and employees are within salary range 90:

Superintendent of Financial Institutions;

Superintendent of Consumer Credit Protection;

State Tax Assessor;

Superintendent of Insurance;

Executive Director of the Maine Consumer Choice Health Plan;

Deputy Commissioner, Department of Administrative and Financial Services;

Associate Commissioner for Adult Services, Department of Corrections;

Associate Commissioner for Juvenile Services, Department of Corrections;

Public Advocate;

Deputy Commissioner of Integrated Services, Department of Health and Human Services;

Deputy Commissioner of Health, Integrated Access and Strategy, Department of Health and Human Services;

Chief Information Officer;

Associate Commissioner for Legislative and Program Services, Department of Corrections; and

Chief of the State Police.

 

 

Further amend Part N by adding after section N-17 the following:

            Sec. N-18.  34-B, §1208, sub-§6 as enacted by PL 1989, c. 432 is repealed.

 

 

 

Further amend Part N by renumbering the remaining sections.

 

 

 

 

 

 

 

 

Amends LD 2173 Part Z on page 226 by adding sections Z-3 and Z-4 as follows:

 

Sec. Z-3.  Rename Foster Care program.  Notwithstanding any other provision of law, the “Foster Care” program within the Department of Health and Human Services is renamed the “IV-E Foster Care/Adoption Assistance” program.

           

 

 

Sec. Z-4.  Rename Child Welfare Services program.  Notwithstanding any other provision of law, the “Child Welfare Services” program is renamed the “State-Funded Foster Care/Adoption Assistance” program.

Amends LD 2173 by deleting Part MM on page 233 and replacing it with the following new Part MM as follows:

 

 

PART MM

 

Sec. MM-1.  PL 2007, c. 240, Pt. YY, §1 is further amended to read:

            Sec. YY-1. Information technology position transfers.  Notwithstanding any other provision of law, the State Budget Officer, based on information provided by the Chief Information Officer, shall transfer position counts and adjust the Personal Services and All Other funds for those affected departments and agencies by financial order upon approval of the Governor in order to complete the consolidation of information technology positions within the Department of Administrative and Financial Services, Office of Information Technology. These transfers are deemed adjustments to authorized position counts, appropriations and allocations in fiscal years 2007-08 and 2008-09.

 

Amends Part PP in LD 2173 as follows:

 

PART PP

Sec. PP-1. Transfer from Other Special Revenue Funds; Department of Public Safety, Office of the State Fire Marshal. Notwithstanding any other provision of law, the State Controller shall transfer $2,500,000  $2,750,000 of surplus funds not needed for current operations by June 30, 2008 from the Office of the State Fire Marshal Other Special Revenue Funds account in the Department of Public Safety to the unappropriated surplus of the General Fund consistent with past practice

 

 

 

 

 

Amends LD 2173 by deleting Part TT lines 14 through 16 on page 238 and replacing it with the new Part TT as follows:

 

PART TT

 

Sec. TT-1. Legislature; Lapsed balances. Notwithstanding any other provision of law, $1,021,234 of unencumbered balance forward from the various program accounts and line categories in the Legislative accounts, as specified by the Executive Director, lapses to the General Fund in fiscal year 2008-09. The Executive Director of the Legislative Council shall review the Legislative accounts and identify to the State Controller and State Budget Officer by May 15, 2009 the unencumbered balance forward amounts by account and line category totaling $1,021,234 that will lapse to the General Fund to achieve targeted savings for fiscal year 2008-09.  

 

 

Amends LD 2173 by deleting Part UU on page 238 and replacing it with the new Part UU as follows:

 

 

PART UU

 

Sec. UU-1.  PL 2007, c. 240, Part GG, §GG-1 is amended to read:

Sec. GG-1.  Review of transitioning to a fiscal agent model to improve efficiency and cost-effectiveness; Office of MaineCare Services. The Commissioner of Health and Human Services shall review the current organizational structure, systems and operations of the Office of MaineCare Services to transition Maine’s current management information system model to a model operated by a fiscal agent. To assist with this review, the commissioner shall use staff resources from the Office of MaineCare Services and the Department of Administrative and Financial Services, Office of Information Technology. The commissioner is authorized to identify position eliminations and identify Personal Services savings available for transfer to All Other from the improvements identified from the review. Notwithstanding any other provision of law, the State Budget Officer shall transfer position counts and identified available balances between line categories by financial order upon approval of the Governor in order to achieve the position eliminations identified in section 2. These transfers are considered adjustments to authorized position count, appropriations and allocations in fiscal years 2007-08 and 2008-09. The commissioner and the State Budget Officer shall provide the joint standing committees of the Legislature having jurisdiction over health and human services matters and appropriations and financial affairs a report outlining the progress towards the new organizational structure and any transferred amounts by December 15th and June 15th in each year of the 2008-2009 biennium and in fiscal year 2009-10.

 

 

 

Sec. UU-2.  PL 2007, c. 240, Part GG, §2 is repealed.

 

 

 

Sec. UU -3.  PL 2007, c. 240, Part GG, §3 is enacted to read:

 

Sec. GG-3.  Office of MaineCare Services; position eliminations.  The Commissioner of Health and Human Services shall identify a minimum of 100 Legislative Count positions in the Office of MaineCare Services, including any positions eliminated pursuant to section 1, that must be eliminated no later than June 19, 2010 upon the transition to the fiscal agent model.  The commissioner shall provide the joint standing committees of the Legislature having jurisdiction over health and human services matters and appropriations and financial affairs a report detailing the positions to be eliminated by December 15, 2008.

Amends LD 2173 by deleting Part VV and replacing it with the following new Part VV as follows:

 

 

Sec. VV-1. Department of Conservation, Division of Forest Fire Control account; lapsed balances; General Fund.  Notwithstanding any other provision of law, $356,200 of unencumbered balance forward in the Personal Services line category in the Division of Forest Fire Control, General Fund account in the Department of Conservation lapses to the General Fund at the close of fiscal year 2008-09.

 

 

 

Amends LD 2173 by deleting Part WW on pages 239 -240 and replacing it with the following new Part WW as follows:

 

 

PART WW

 

Sec. WW-1. 36 MRSA §4641-B, sub-§4,  as amended by PL 2007, c. 240, Pt. H, §1 and c. 427, §1, is repealed and, notwithstanding the notice section in sub-§4, the following enacted in its place:

4.  Distribution of State's share of proceeds.   The State Tax Assessor shall pay all net receipts received pursuant to this section to the Treasurer of State, and shall at the same time provide the Treasurer of State with documentation showing the amount of revenues derived from the tax imposed by section 4641-A, subsection 1 and the amount of revenues derived from the tax imposed by section 4641-A, subsection 2. The Treasurer of State shall credit 1/2 of the revenues derived from the tax imposed by section 4641-A, subsection 1 to the General Fund and shall monthly pay the remaining 1/2 of those revenues to the Maine State Housing Authority, which shall deposit the funds in the Housing Opportunities for Maine Fund created in Title 30-A, section 4853, except that in fiscal year 2007-08 and fiscal year 2008-09, $5,000,000 of the remaining 1/2 of those revenues must be transferred to the General Fund before any payments are made to the Maine State Housing Authority.

 

Effective in fiscal year 2008-09 and each fiscal year thereafter $2,972,414 of the remaining ½ of those revenues must be transferred to the Department of Health and Human Services for the Bridging Rental Assistance Program. 

 

Neither the Governor nor the Legislature may divert the revenues payable to the Housing Opportunities for Maine Fund to any other fund or for any other use. Any proposal to enact or amend a law to allow distribution of less than 1/2 of the revenues derived from the tax imposed by section 4641-A, subsection 1 to the Housing Opportunities for Maine Fund must be submitted to the Legislative Council and to the joint standing committee of the Legislature having jurisdiction over affordable housing matters at least 30 days prior to any vote or public hearing on the proposal. The Treasurer of State shall credit to the General Fund all of the revenues derived from the tax imposed by section 4641-A, subsection 2.

Adds the following new Part ZZ to LD 2173

 

Sec. ZZ-1. Authority to lease – sell buildings. Notwithstanding any other provision of law, the Commissioner of the Department of Administrative and Financial Services is authorized to enter into long-term ground leases of the following sites and to convey the following buildings, subject to surrender to the State upon termination of the ground lease: the Stone Buildings, the Administration Building and the Center Building formerly occupied by the Augusta Mental Health Institute in Augusta.

1. Definitions.      As used in this section, the following terms have the following meanings.

A. "Commissioner" means the Commissioner of Administrative and Financial Services.

B. "State property" means the real and personal property described in sections 3 and 4 of this section.

C.  For purposes of this section, the terms "lease" and "ground lease" are used interchangeably.

 2. Authority to convey property. The State, by and through the commissioner, may:

A. Enter into ground leases of the real property described in section 3;

B. Convey title to the buildings described in section 4 subject to surrender to the State upon termination of any ground lease; and

C. Negotiate, draft, execute and convey any rights that, in the commissioner's discretion, may contribute to the value of a proposed ground lease or are essential to the operation of a building located on the leased property.

 3. Property interests that may be leased. The commissioner may enter into ground leases for the following real property: the site formerly occupied by the Augusta Mental Health Institute on which stand the buildings known as the Stone Buildings, the Administration Building and the Center Building, together with such additional land and parking areas as may facilitate operation of the buildings and are not required by the State for operation of the East Campus.

            The amount of state property and the boundary of the state property leased pursuant to this section shall be that which the commissioner, in the commissioner's sole discretion, determines to be in the best interest of the State.

            The state property may be leased for a term of up to 90 years in whole or in part, at the discretion of the commissioner, subject to such permits or approvals as may be required by law.

 4. Buildings that may be conveyed. The following buildings may be conveyed: the Stone Buildings, the Administration Building, the Center Building and other buildings attached to or associated with the former Augusta Mental Health Institute complex. The buildings must be conveyed subject to such terms and conditions and restrictions as the commissioner determines are in the best interest of the State, including but not limited to appropriate lease options and restrictions on use of the buildings; each conveyance shall be subject to surrender to the State upon termination of any ground lease under section 3.

 5. Property to be leased or conveyed as is. The commissioner may negotiate and execute leases, ground leases and purchase and sale agreements upon such terms and conditions the commissioner considers appropriate; however, the state property must be conveyed or leased "as is," with no representations or warranties.

            Title to the buildings must be transferred by quitclaim deed without covenants and executed by the commissioner.

 6. Exemptions. Any lease pursuant to this section is exempt from any statutory or regulatory requirement that the property first be offered to the Maine State Housing Authority or another state or local agency.

 

7. Appraisal. The commissioner shall have the current market value of the state property determined by an independent appraiser. The commissioner may list the property for lease and buildings for sale with private real estate brokers, may solicit bids or proposals, may conduct a "Request for Qualification" process to select a developer or may enter directly into a sale or ground lease. The commissioner may reject any offer, bid or proposal.

            The commissioner shall establish the rent and the terms of lease or sale.

            If the commissioner elects to solicit bids, proposals or qualifications, the commissioner shall publish notices sufficient to advertise the properties for lease and buildings for lease or sale. The commissioner may reject any offer, bid or proposal.

 8. Proceeds. Any rental or lease proceeds that accrue to the State in excess of operating and capital costs and the provisions of 5 MSRA section 1784 must be deposited into the General Fund undedicated revenue account.

            Any proceeds from sale of the Stone Buildings, Administration Building and Center Building must be deposited into the Department of Administrative and Financial Services, Bureau of General Services capital repair and improvement account to be used for capital repairs and improvements as designated by the commissioner in the State's East Campus in Augusta as described in the Maine Revised Statues, Title 1, section 814, subsection 2, paragraph A.

9.      Repeal. The authority in this section is repealed 5 years from the effective date of this budget.

Adds the following new Part AAA to LD 2173

 

PART AAA

 

Sec. AAA-1.  PL 2007, c. 240, Pt. KK, §1 is amended to read:

Sec. KK-1. Personal Services transfer. Notwithstanding any other provision of law, the State Controller shall transfer unexpended Personal Services balances in the General Fund lapsing accounts on June 30, 2007, June 30, 2008 and June 30, 2009 to the Compensation Salary Plan General Fund account in the Department of Administrative and Financial Services after all financial commitments and adjustments have been made to be used for costs associated with collective bargaining agreements for state employees.

 

Adds the following new Part BBB to LD 2173

 

PART BBB

 

 

Sec. BBB-1. Transfer from the Maine Coastal and Inland Surface Oil Clean Up Fund, unexpended funds. Notwithstanding any other provision of law, the State Controller shall transfer $33,602 from the Maine Coastal and Inland Surface Oil Clean up Fund, Other Special Revenue Funds account in the Department of Environmental Protection to the unappropriated surplus of the General Fund no later than June 30, 2009.

 

Adds the following new Part CCC to LD 2173

 

 

PART CCC

 

Sec. CCC-1. 36 MRSA §111, sub-§1-A, as amended by PL 2007, c. 240, Pt. CCC, §1 and affected by §4, is further amended to read:

 

1-A. Code.   “Code” means the United States Internal Revenue Code of 1986 and amendments to that Code as of December 31, 2006 February 13, 2008.

 

 

 

Sec. CCC-2. 36 M.R.S.A. § 5122, sub-§ 1, ¶N, as amended by PL 2007, c. 240, Pt. CCC, §2 and affected by §4, is further amended to read:

 

N. With respect to property placed in service during the taxable year, an amount equal to the net increase in depreciation or expensing attributable to:

 

(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year;

 

(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; and

 

(3) For taxable years beginning on or after January 1, 2003, the increase in aggregate cost under Section 179 of the Code arising from amendments to the Code applicable to tax years beginning on or after January 1, 2003; and

 

(4) For taxable years beginning on or after January 1, 2008 but prior to January 1, 2010, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed in service during the taxable year;

 

 

 

Sec. CCC-3. 36 M.R.S.A. § 5200-A, sub-§ 1, ¶N, as amended by PL 2007, c. 240, Pt. CCC, §3 and affected by §4, is further amended to read:

 

N. With respect to property placed in service during the taxable year, an amount equal to the net increase in depreciation or expensing attributable to:

 

(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year;

 

(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; and

 

(3) For taxable years beginning on or after January 1, 2003, the increase in aggregate cost under Section 179 of the Code arising from amendments to the Code applicable to tax years beginning on or after January 1, 2003; and

 

(4) For taxable years beginning on or after January 1, 2008 but prior to January 1, 2010, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 103 of the Economic Stimulus Act of 2008, Public Law 110-185 with respect to property placed in service during the taxable year;

 

 

 

Sec. CCC-4. 36 M.R.S.A. § 5125, sub-§ 3, ¶¶ D and E as enacted by PL 2003, c.390, § 34 are further amended to read:

 

D. Reduced by any amount attributable to interest or expenses incurred in the production of income exempt from tax under this Part; and

 

            E. Reduced by the amount attributable to any contribution that qualified for and was actually utilized as a credit under section 5216-C. ; and

           

 

 

Sec. CCC- 5. 36 M.R.S.A. § 5125, sub-§ 3, ¶F, is enacted to read:

 

F. For taxable years beginning on or after January 1, 2008, reduced by the amount of any deduction claimed pursuant to the Code, Section 163(h)(3)(E) for mortgage insurance premiums.    

 

 

 

 

Sec. CCC-6. 36 M.R.S.A. § 5164, sub-§ 1, as amended by PL 1999, c. 708, § 38, is further amended to read:

 

            1. Fiduciary adjustment defined. The fiduciary adjustment is the net amount of the modifications described in section 5122, including subsection 3 if the estate or trust is a beneficiary of another estate or trust, which relates to items of income or deduction of an estate or trust.  Income taxes imposed by this State or any other taxing jurisdiction, mortgage insurance premiums paid or accrued on or after January 1, 2008 and claimed as a deduction pursuant to the Code, Section 163(h)(3)(E) and interest or expenses incurred in the production of income exempt from tax under this Part deducted in arriving at federal taxable income must be added back to the fiduciary adjustment. Interest or expenses incurred in the production of income taxable under this Part but exempt from federal income tax must be subtracted from the fiduciary adjustment.

 

 

 

Sec. CCC-7. 36 M.R.S.A. § 5122, sub-§ 1, ¶ X as amended by PL 2007, c. 437, §16 is further amended to read:

 

X. An amount equal to the taxpayer’s federal deduction relating to income attributable to domestic production activities claimed in accordance with Section 102 of the federal American Jobs Creation Act of 2004, Public Law 108-357; and

 

 

 

Sec. CCC-8. 36 M.R.S.A. § 5122, sub-§ 1, ¶ Y as amended by PL 2007, c. 437, §17 and affected by §22 is amended to read:

 

            Y. Any amount of allowable deduction claimed for federal purposes in accordance with the election under Section 642(g) of the Code that is also used to determine the taxable estate for purposes of calculating the Maine estate tax under chapter 575. ; and

           

   

 

Sec. CCC-9. 36 M.R.S.A. § 5122, sub-§ 1, ¶Z, is enacted to read:

 

Z. For income tax years beginning on or after January 1, 2008, the amount of any qualified State and local tax benefit and any qualified payment excluded from gross income pursuant to the Code, Section 139B.      

 

 

 

Sec. CCC-10. Application. That section of this Part that amends the Maine Revised Statutes, Title 36, section 111, subsection 1-A applies to tax years beginning on or after January 1, 2007 and to any prior years as specifically provided by the United States Internal Revenue Code of 1986 as amended.

 

 

Adds the following new Part DDD to LD 2173

 

 

PART DDD

 

Sec. DDD–1.  36 M.R.S.A. §2551, sub-§1-A, as enacted by PL 2005, c. 12, §VV-1, is amended to read:

 

            1-A.  Community support services. "Community support services" means rehabilitative services provided to adults at least 18 years of age or to emancipated children that are provided in the context of a supportive relationship pursuant to an individual support plan that promotes a person's recovery and integration of the person into the community and that sustain the person in that person's current living situation or another living situation of that person's choice. "Community support services" include only those services provided by a designated community support services provider licensed by and operating under a contract with the Department of Health and Human Services for such services, whether the provider is reimbursed through participation in the MaineCare program or with state grant funds.  “Community support services” under this subsection include only those services provided to persons with mental health diagnoses.

 

           

 

Sec.DDD-2.  36 M.R.S.A. §2551, sub-§1-B, as enacted by PL 2005, c. 386, §S-1, is amended to read:

 1-B.  Day habilitation Community support services. "Day habilitation Community support services" means services:

            A. That are provided by community-based agencies to children or adults with mental retardation or autistic disorders and include assistance with the acquisition, retention or improvement of self-help, socialization and adaptive living skills; and 

            B. That take place in a nonresidential setting separate from the home or facility in which the child or adult resides, except when a physician has ordered that such services be provided in the child's or adult's home, and focus on enabling the child or adult to attain or maintain maximum functional levels.   

"Day habilitation Community support services" includes only those services provided by designated agencies under a contract with the Department of Health and Human Services.

           

 

Sec. DDD-3.  36 M.R.S.A. §2551, sub-§7-B, as enacted by PL 2005, c. 386, §S-2, is amended to read:

            7-B.  Personal Home support services. "Personal Home support services" means services provided to children or adults with mental retardation or autistic disorders, including direct assistance with eating, bathing, dressing, personal hygiene and other activities of daily living. These services include only those services provided by designated agencies under a contract with the Department of Health and Human Services and:

            A. May include assistance with instrumental activities of daily living such as assistance with the preparation of meals, but does not include the cost of the meals themselves;   

            B. If specified in the child's or adult's care plan, may include such housekeeping chores as bed making, dusting and vacuuming that are incidental to the care furnished, or are essential to the health and welfare of the child or the adult; and   

            C. May be provided by a provider unrelated to the child or the adult or by an adult relative other than an adult recipient's spouse, but may not be provided in the same setting where residential training is provided.   

                                                                                                

           

 

Sec. DDD-4.  36 M.R.S.A. §2551, sub-§13-A, as enacted by PL 2005, c. 386, §S-3, is repealed.

 

Adds the following new Part EEE to LD 2173

 

 

PART EEE

 

Sec. EEE-1.  Transfer from Personal Services to All Other; Dorothea Dix Psychiatric Center. Notwithstanding the Maine Revised Statutes, Title 5, section 1585 or any other provision of law, beginning in fiscal year 2008-09 the available unencumbered balance at the end of each fiscal year in the Personal Services line category in the Disproportionate Share - Dorothea Dix Psychiatric Center General Fund account may be transferred to All Other by financial order upon

recommendation of the State Budget Officer and approval of the Governor.

 

 

 

Sec. EEE -2.  Transfer from Personal Services to All Other; Riverview Psychiatric Center. Notwithstanding the Maine Revised Statutes, Title 5, section 1585 or any other provision of law, beginning in fiscal year 2008-09 the available unencumbered balance at the end of each fiscal year in the Personal Services line category in the Disproportionate Share - Riverview Psychiatric Center General Fund account may be transferred to All Other by financial order upon recommendation of the State Budget Officer and approval of the Governor.

 

 

Adds the following new Part FFF to LD 2173

 

 

Sec. FFF-1.  Calculation and transfer, General Fund savings; position reductions; department reorganization; Department of Health and Human Services.  Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings and the position eliminations in Part A in the Department of Health and Human Services resulting from a departmentwide reorganization that applies to each applicable General Fund or other funds account in the department and shall transfer the amounts by financial order upon the approval of the Governor.  These transfers are considered adjustments to appropriations and allocations in fiscal year 2008-09.

 

Adds the following new Part GGG to LD 2173

 

 

PART GGG

 

Sec. GGG-1.  General Fund savings; Judicial Branch.  Notwithstanding any other provision of law, the Court Administrator shall adjust the Personal Services and All Other line categories to achieve the amount of projected savings in Part A in the Judicial Branch related to maintaining costs within available resources and shall transfer the amounts by financial order upon the approval of the Governor.  These transfers are considered adjustments to appropriations in fiscal year 2008-09.

 

 

Adds the following new Part HHH to LD 2173 as follows:

 

 

PART HHH

           

 

Sec. HHH-1. 30-A MRSA §4832. Construction loans is amended to read:

 

The Maine State Housing Authority may participate with financial institutions in the State in the making of make construction loans for the purpose of land development and the construction of housing units or housing projects for persons of low income, under any terms and conditions that the Maine State Housing Authority may establish by rule.

1. Participation requirements.  Except as provided in paragraph A, the Maine State Housing Authority may not participate in the making of construction loans unless a financial institution in the State agrees to participate in the loan at least to the extent of acting as escrow agent. Notwithstanding any other provisions of law, financial institutions in the State may act as required by this subchapter.

A. The Maine State Housing Authority may make construction loans to state public bodies or other public instrumentalities and private nonprofit corporations without the participation of a financial institution.

2. Rules.  The Maine State Housing Authority shall establish rules in accordance with the Maine Administrative Procedure Act, Title 5, chapter 375, governing, without limitation, the following subjects and procedures for participating in the making of construction loans:

A. The submission, review and acceptance of requests from borrowers for construction loans under this section;

B. Qualifications of borrowers;

C. Limitation on and standards for location and construction of housing units or housing projects;

D. Schedules of fees and other charges made by the authority and the financial institution to the borrower in accepting, reviewing and acting upon applications for construction loans under this subchapter; and

E. Restrictions on the interest rates charged by the financial institutions and the authority on the construction loans or the return on those loans to be realized by the financial institution.

 

 

Adds the following new Part III to LD 2173 as follows:

 

 

PART III

 

 

            Sec. III-1.  22 MRSA §3104-A, as amended by PL 1999, c. 401, Part S, §2 is repealed.

 

 

           

 

Adds the following new Part JJJ to LD 2173 as follows:

 

 

PART JJJ

 

            Sec. JJJ-1 .  Calculation and transfer; General Fund savings for cooperative agreement with University of Maine System; Department of Health and Human Services.  Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of projected savings in Part A in the Department of Health and Human Services related to reducing the services provided through the cooperative agreement with the University of Maine System that applies to each applicable General Fund account in the department and shall transfer the amounts by financial order upon the approval of the Governor.  These transfers are considered adjustments to appropriations in fiscal year 2008-09.

 

 

 

Sec. JJJ -2.  Calculation and transfer; consolidation of outpatient services; Department of Health and Human Services.  Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of projected savings in Part A in the Department of Health and Human Services related to consolidating outpatient services into one section of MaineCare that applies to each applicable General Fund account in the department and shall transfer the amounts by financial order upon the approval of the Governor.  These transfers are considered adjustments to appropriations in fiscal year 2008-09.

 

Adds the following new Part KKK to LD 2173 as follows:

 

            Sec. KKK-1. 36 §1951-A., sub-§2 is enacted as follows:

 

Reporting tax on casual rentals on individual income tax returns.  A person whose only sales tax collection responsibility under this title is the collection of sales tax on casual rentals of living quarters pursuant to section 1764 and whose sales tax liability in connection with those rentals during the period of the individual’s income tax return is expected to be less than $1,000 may report and pay that sales tax on the person’s Maine individual income tax return for that year in lieu of filing reports under subsection 1.   If the person’s actual liability for the year is $1,000 or more, the person must file reports as required under subsection 1 during the succeeding year.

 

 

Adds the following new Part LLL to LD 2173 as follows: