March 2008 change package language

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123^rd 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 7^th grade, 8^th 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:

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:

PART LLL

Sec. LLL-1. 20-A MRSA §1305-C, as enacted by PL 2007, c. 240, Pt. XXXX, §11, is further amended to read:

§ 1305-C. Mandatory budget validation and cost center summary budget form

Notwithstanding any other law, school administrative district budgets developed after January 1, 2008 must conform to the format and referendum procedures set forth in ~~sections 1305-A and 1305-B~~sections 1485 and 1486.

Sec. LLL-2. 20-A MRSA §1452, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

§ 1452. Application of general law; core functions of a regional school unit

Notwithstanding any provision of law to the contrary, schools operated by the regional school units established in accordance with this chapter are the official schools of the participating municipalities. The provisions of general law relating to public education apply to these schools. State funds for public schools must be paid directly to the treasurer of a regional school unit. The core functions for which a regional school unit is responsible include without limitation:

1. Employment of superintendent. Employment and discharge of a superintendent pursuant to section 1001, subsection 3 and chapter 101, subchapter 2;

2. Performance of business functions. Administration of accounting, payroll, financial management, purchasing insurance and auditing;

3. Special education administration. Administration of special education duties of school administrative units under chapter 303;

4. Transportation. Administration of transportation;

5. Core curriculum. Adoption of a core curriculum, standardized testing and assessments aligned with the system of learning results established in section 6209;

6. Budget. Adoption of the regional school unit budget;

7. Reporting. Reporting required by state or federal law or regulation;

8. Employment. Functioning as the employer of all employees working within the regional school unit for collective bargaining purposes and for all other purposes, including but not limited to those contained in section 1464, in Title 26, chapter 9-A and in all state and federal laws regulating the rights and duties of employers and employees;

9. School calendar. Establishment of a common school calendar, subject to local variations permitted by the regional school unit board; and

10. Adoption of policies. Adoption of policies for all schools in the regional school unit pursuant to section 1001, subsection 1-A, except that the local school committee may adopt policies not in conflict with the regional school unit policies.

Sec. LLL-3. 20-A MRSA §1461-A is enacted to read:

§ 1461-A. Transitional powers and duties of initial regional school unit board

As used in this section, unless the context indicates otherwise, “regional school unit board” means the initial regional school unit board elected pursuant to section 1472-A. From the time of election of the regional school unit board to July 1st of the regional school unit’s first operational year, the regional school unit board shall establish interim rules of procedures and shall elect officers who shall serve until officers are elected at a meeting following the operational date of the regional school unit. The regional school unit board’s powers and duties during this period are governed by this section.

1. Selection of superintendent. The regional school unit board shall select a superintendent for the regional school unit in accordance with section 1051 to carry out the duties specified in section 1055. During the interim period, the salary, office and other expenses of the superintendent, as well as the costs of the regional school unit board, including insurance, must be allocated to the school administrative units by the cost-sharing formula established in accordance with section 1481-A and included in the reorganization plan for the regional school unit.

2. Budget preparation and approval. The regional school unit board shall prepare the annual budget for the first operational year of the regional school unit in time for its presentation to and consideration by the regional school unit board in accordance with subchapter 4. Specific duties may be assigned to existing personnel with the approval of the employing school administrative unit. The regional school unit board shall complete the budget development process and recommend a budget for consideration by the legislative body responsible for final budget approval and the residents of the regional school unit. The budget format, approval procedures and assessments for the regional school unit’s first operational year budget must be in accordance with this chapter.

3. Authorization. The regional school unit board is authorized to take all other actions provided under state law to prepare the regional school unit to become operational on July 1st for the first operational year, including the authority to open and maintain accounts, to incur expenses to be allocated among the regional school unit’s member school administrative units in accordance with the reorganization plan for the regional school unit and to file applications for school construction projects and revolving renovation fund loans and other available funding.

4. Fiscal agent. The regional school unit board is authorized to expend start-up funds for the regional school unit. A school administrative unit within the regional school unit may serve as a fiscal agent and may expend any start-up funds on behalf of the new regional school unit prior to the regional school unit’s operational date without calling for a special meeting of the local legislative body.

Sec. LLL-4. 20-A MRSA §1472-A is enacted to read:

§ 1472-A. Election of initial regional school unit board

1. Election; interim secretary; duties. Within 30 days of the issuance of a certificate of organization for the regional school unit by the state board pursuant to section 1461, subsection 7, the members of the school boards of the school administrative units within the regional school unit shall conduct a joint meeting for the purposes of electing an interim secretary of the regional school unit and determining a date for the election of the initial regional school unit board. The interim secretary shall notify the municipal officers of the member municipalities of the regional school unit of the date of the election. The election must be conducted in accordance with section 1473, subsection 2, except that the election duties of the secretary and the regional school unit board must be performed by the interim secretary. The duties of the interim secretary include:

A. Notifying the municipal officers of the date of the election;

B. Furnishing nomination papers at least 10 days before the deadline for filing nomination papers;

C. Receiving completed nomination papers in accordance with section 1473, subsection 2;

D. Preparing and distributing election ballots in accordance with section 1473, subsection 2;

E. Receiving the town clerk’s certification of the results of the voting in each member municipality;

F. Tabulating the town clerk’s certification of the results of the voting in each member municipality;

G. Accepting any recount petitions that may have been filed pursuant to section 1473, subsection 2, paragraph C; and

H. Totaling the votes cast for each candidate and notifying the clerk in each municipality, the candidates and the commissioner of the final results of the voting and the names and addresses of the persons elected as directors.

2. Initial meeting. In accordance with section 1473, subsection 1, the clerk of each municipality within the regional school unit shall forward the names and addresses of the directors elected to represent that municipality to the state board with other data regarding their election as the state board may require. On receipt of the names and addresses of all of the directors, the state board shall set a time, place and date for the first meeting of the directors and give notice to the directors in writing, sent by registered or certified mail, return receipt requested, to the addresses provided by the municipalities.

Sec. LLL-5. 20-A MRSA §1472-B is enacted to read:

§ 1472-B. Staggered initial terms

Notwithstanding section 1471, subsection 2, the initial directors elected to a regional school unit board shall meet and draw lots for their term lengths as specified in this section.

1. Municipalities with annual elections. In municipalities with annual elections, 1/3 of the directors serve one-year terms, 1/3 of the directors serve 2-year terms and 1/3 of the directors serve 3-year terms. If the number of directors is not evenly divisible by 3, the first remaining director serves a 3-year term and the 2nd remaining director serves a 2-year term.

2. Municipalities with biennial elections. In municipalities with biennial elections, half of the directors serve 4-year terms and half of the directors serve 2-year terms. If the number of directors is not divisible by 2, the remaining director serves a 4-year term.

The directors shall serve their terms as determined under this section and any additional period until the next regular election of the municipalities. Thereafter, the directors’ terms of office are as established in section 1471.

Sec. LLL-6. 20-A MRSA §1478, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is repealed and the following enacted in its place:

§ 1478. Local school committees

1. Formation. A reorganization plan under section 1461 or a regional school unit board may authorize the formation of a local school committee for a member municipality established in accordance with chapter 111, subchapter 1.

2. Delegation of functions. A reorganization plan that has been approved in accordance with subchapter 2 or a regional school unit board may delegate a local school committee to perform any duties, functions and services other than those reserved to the regional school unit under subchapter 1. The core functions provided by a regional school unit pursuant to section 1452 may be supplemented at the expense of any member municipality.

3. Budget responsibility. A reorganization plan that has been approved in accordance with subchapter 2 or a regional school unit board may authorize a local school committee to present to the board a proposed budget for the local school in a form that is consistent with section 1485. The proposed local school budget must be submitted in time to be included in the budget for the regional school unit. Proposed expenditures that are not included in the regional school unit budget may be separately appropriated by the municipality to be expended by the regional school unit in accordance with the appropriation. Supplemental municipal appropriations for education are not subject to section 1486.

4. Title to property. School property overseen by a local school committee may be owned either by the municipality or by the regional school unit as long as there is a clear allocation of responsibilities for management of all of the school property in the regional school unit.’

Sec. LLL-7. 20-A MRSA §1481, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is repealed.

Sec. LLL-8. 20-A MRSA §1481-A is enacted to read:

§ 1481-A. Finances

1. Apportionment of costs for regional school unit. A regional school unit may raise money, in addition to the local contribution pursuant to section 15690, subsection 1, for establishing and maintaining public schools, erecting buildings and providing equipment for educational purposes. The additional costs of operating a regional school unit must be shared among all municipalities within the regional school unit by the same local share percentages for each municipality resulting from the determination of the local contribution under section 15688.

2. Existing cost-sharing agreement. Notwithstanding subsection 1, a cost-sharing agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, chapter 2 or pursuant to a private and special law remains in existence unless the parties to the agreement modify or terminate the agreement:

A. As part of a reorganization to regional school units under this chapter; or

B. As a result of a negotiated agreement between the parties to the cost-sharing agreement.

3. Method included in reorganization plan. Notwithstanding subsection 1, a regional school unit may use a method of cost sharing that was included in a reorganization plan developed pursuant to section 1461 or Public Law 2007, chapter 240, Part XXXX, section 36 as long as the method complies with this subsection.

A. The costs of operating a regional school unit must be shared among all municipalities within the unit in one of the following ways.

(1) Under a property valuation method, municipalities in a unit shall share costs in the same proportion as each municipality’s property fiscal capacity as defined in section 15672, subsection 23 is to the unit’s property fiscal capacity.

(2) Under an alternate method of cost sharing, municipalities in a unit shall share costs based on:

(a) The number of resident pupils in each town;

(b) The property fiscal capacity of each member municipality as defined in section 15672, subsection 23;

(d) Any other factor or combination of factors that may, but need not, include divisions (a) or (b).

B. A process of amending the cost-sharing formula must be included in the reorganization plan.

Notwithstanding any provision of law to the contrary, a cost-sharing agreement in existence on June 7, 2007 that was adopted pursuant to Public Law 2005, chapter 2 or pursuant to a private and special law may not be construed to preempt the formation of a regional school unit under this chapter. Notwithstanding any provision of law to the contrary, a cost-sharing agreement between 2 or more municipalities in existence on June 7, 2007 that was adopted prior to June 7, 2007 may not be construed to preempt the formation of a regional school unit under this chapter.

Notwithstanding any provisions of law to the contrary, a municipality within a regional school unit may raise money and direct the spending of the funds to any school within the regional school unit.

Sec. LLL-9. 20-A MRSA §1482-A is enacted to read:

§ 1482-A. Budget meeting

A regional school unit board shall hold a regional school unit budget meeting at a time it determines.

1. Warrant. The budget meeting must be called by a warrant. The warrant must:

A. Be signed by a majority of the regional school unit board;

B. Specify the time and place of the meeting;

C. Include the proposed school budget and other articles the regional school unit board chooses to place before the voters, excluding authorization to borrow money for school construction purposes;

D. Specify the state and local shares of the state-local allocation and local leeway and additional expenditures without state participation; and

E. Be directed to a resident of the regional school unit by name ordering the resident to notify all voters within the regional school unit to assemble at the time and place appointed.

2. Notice. An attested copy of the warrant must be posted by the person to whom it is directed in some conspicuous public place in each of the municipalities within the regional school unit at least 7 days before the meeting. The person who gives notice of the meeting shall make a return of the posting on the warrant stating the manner of notice in each municipality and the time when it was given.

3. Requested articles. If requested by a written petition of at least 10% of the number of voters voting for the gubernatorial candidates in the last gubernatorial election in each municipality within the regional school unit, the regional school unit board shall place specific articles, not in conflict with existing state statutes, in the warrants for consideration at the next annual regional school unit budget meeting. To be included in the warrant, a petition must be received by the regional school unit board at least 15 days before the date set for the budget meeting. When placed on the warrant, the articles must be considered before action relating to the appropriation of money for the operation of schools may be taken.

Sec. LLL-10. 20-A MRSA §1482-B is enacted to read:

§ 1482-B. Annual budget meeting procedures

The following procedures must be used at a regional school unit annual budget meeting.

1. Election of moderator. The secretary of the regional school unit board or the chair of the regional school unit board when the secretary is absent shall open the annual budget meeting and call for the election of a moderator, receive and count votes for the moderator and swear in the moderator.

2. Appointing ballot clerks. The moderator shall appoint from the certified voting list the ballot clerks necessary for the efficient operation of the annual budget meeting. The moderator shall swear in the clerks.

3. Budget consideration. The superintendent of the regional school unit shall thoroughly explain the budget. The voters must have an opportunity to be heard. The voters may change only items dealing with:

A. The expenses necessary to operate the regional school unit;

B. Appropriations for the reserve fund; and

C. Appropriations for the contingency fund and school construction purposes.

4. Approval. A majority vote of those voters present and voting is necessary for the approval of the annual budget.

5. Voting lists. Registration of voters for the annual budget meeting must be held in each member municipality in accordance with Title 21-A, section 122.

A. Prior to the annual budget meeting, the municipal clerks of the member municipalities shall supply to the regional school unit board certified corrected copies of the registered voters of their municipalities.

B. The certified corrected copies under paragraph A must be used in determining the voters who are eligible to vote at the annual budget meeting.

6. Written ballot. An article must be voted on by written ballot if at least 10% of those present and voting vote to use a written ballot. The department, in consultation with municipal and school officials and with organizations representing those officials, shall develop and distribute guidelines to assist regional school unit annual budget meeting moderators in explaining and implementing this subsection.

Sec. LLL-11. 20-A MRSA §1506, sub-§1, ¶A, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

A. ”Existing debt” means any bond, note, loan agreement, lease-purchase agreement or other debt instrument issued prior to July ~~1, 2008~~1st of the first operational year of the new unit for the purposes of funding public schools, or for refinancing such debt, that remains outstanding at the time of a reorganization pursuant to this chapter. “Existing debt” does not include routine payables or commercial contract obligations.

Sec. LLL-12. 20-A MRSA §1506, sub-§4, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

4. Debt of original education units. After July ~~1, 2008,~~1st of the first operational year of the new unit for each original education unit with existing debt that has reorganized into a new unit, if the new unit has not agreed to assume liability to pay that existing debt, the regional school unit board shall serve as agent for purposes of that existing debt and has full authority to:

A. Sue and be sued in the name of the original education unit with respect to the existing debt;

B. Determine the debt service due each fiscal year on any existing debt;

C. As applicable, allocate to each member of the original education unit the member’s share of the annual debt service for the existing debt of the original education unit in addition to each member’s share of costs of the new unit;

D. Collect the allocation for debt service on the existing debt from the original education unit or, as applicable, from each member of the original education unit in addition to each member’s share of costs of the new unit;

E. Pay the debt service on the existing debt of the original education unit when due; and

F. Take all other actions necessary and proper with respect to the existing debt.

Allocations between members of the original education unit to pay the debt service for the existing debt must be made on the basis of the cost-sharing formula of the original education unit in effect on July 1, 2007, as applied to the year of allocation. In the case of state-subsidized debt service, the provisions of subsection 3 apply. Amounts to pay the debt service on the existing debt of the original education units must be included in the budget that the regional school unit board of a new unit submits for approval. If the original education unit is divided between different new units that have not agreed to assume liability to pay the existing debt, the commissioner shall require that the reorganization plan of one of those new units provide for that new unit to serve as agent for purposes of the existing debt of the original education unit. That new unit, as agent, has the authority provided by this subsection, except that the new unit shall notify the other new units containing members of the original education unit of the amounts they must assess and collect from their members who were members of the original education unit, and those other new units shall perform the functions in subsection 4, paragraphs C and D with respect to their members, and shall pay the appropriate amounts over to the new unit serving as agent.

Sec. LLL-13. 20-A MRSA §1512, sub-§6, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is amended to read:

6. Multiple municipalities. If a school proposed for closure is ~~an elementary~~a school that serves students from more than one municipality, the article set forth in subsection 1 must be submitted to the voters in each of the municipalities that sent all ~~elementary~~ students from that municipality to the school. If the article is approved by a majority of the voters in each of the municipalities, the school is not closed and the municipalities share in the costs under this section in the same proportion as they share the current operating costs of the school.

Sec. LLL-14. 20-A MRSA §1701-C, as enacted by PL 2007, c. 240, Pt. XXXX, §16, is amended to read:

§ 1701-C. Mandatory budget validation and cost center summary budget form

Notwithstanding any other law, community school district budgets developed after January 1, 2008 must conform to the format and referendum procedures for regional school units as set forth in sections ~~1701-A and 1701-B~~1485 and 1486. A community school district is deemed to be a regional school unit solely for the purpose of developing a budget pursuant to sections 1485 and 1486.

Sec. LLL-15. 20-A MRSA §2307, as enacted by PL 2007, c. 240, Pt. XXXX, §21, is amended to read:

§ 2307. School budgets

Notwithstanding any other law, municipal school budgets developed after January 1, 2008 must follow the same school budget requirements as regional school units pursuant to chapter 103-A, except as described in subsections 1 and 2. A municipal school unit is deemed to be a regional school unit solely for the purpose of developing a budget pursuant to chapter 103-A.

1. Budget meeting. In charter municipalities the budget meeting required by section 1485, subsection 3 must be a meeting of the municipal council or other municipal legislative body established by the charter with authority to approve the budget.

2. Municipal charter. In charter municipalities where the municipal charter confers upon a municipal council or other municipal legislative body the authority to determine the total amount of the school budget and confers upon the school committee or school board the authority to direct the expenditure of those funds for school purposes, the municipal council or other municipal legislative body shall determine the total amount of the school budget to be submitted to a budget validation referendum and the school committee or school board shall determine the allocation of the approved school budget among the cost centers of the cost center summary budget format.’

Sec. LLL-16. 20-A MRSA §5203, sub-§4, as enacted by PL 1981, c. 693, §§ 5, 8, is repealed and the following enacted in its place:

4. Exception; no elementary school. A school administrative unit that neither maintains an elementary school nor contracts for elementary school privileges pursuant to chapter 115 shall pay the tuition, in accordance with chapter 219, at the public school or the approved private school of the parent’s choice at which the student is accepted.

Sec. LLL-17. 20-A MRSA §5204, sub-§4, as amended by PL 1985, c. 797, §32, is further amended to read:

4. No secondary school. ~~Secondary students whose parents reside in a~~ A school administrative unit ~~which~~ that neither maintains a secondary school nor contracts for secondary school privileges may attend a private school approved for tuition purposes, a public school in an adjoining unit which accepts tuition students, or a school approved for tuition purposes in another state or country upon permission of officials of the receiving school. The school administrative unit where the students’ parents reside shall pay tuition in the amount up to the legal tuition rate as defined in chapter 219pursuant to chapter 115 shall pay the tuition, in accordance with chapter 219, at the public school or the approved private school of the parent’s choice at which the student is accepted .

Sec. LLL-18. 20-A MRSA §6051, sub-§1, ¶C, as enacted by PL 1985, c. 797, §36, is amended to read:

C. A determination of whether or not the annual financial ~~report~~data submitted to the department is correct;

Sec. LLL-19. 20-A MRSA §6051, sub-§4, as amended by PL 2005, c. 683, Pt. A, §25, is further amended to read:

4. Initial report to commissioner. On or before ~~December~~November 1st, the school board shall provide the commissioner with:

C. Written determination of whether or not proper budgetary controls are in place;

D. A written determination of whether or not the annual financial ~~report~~data submitted to the department is correct, including submission of an audited reconciliation of the annual financial ~~report~~data prepared and certified by the auditor; and

E. A written determination as to whether the school administrative unit has complied with applicable provisions of the Essential Programs and Services Funding Act.

Sec. LLL-20. 20-A MRSA §6051, sub-§6, as enacted by PL 2001, c. 344, §9, is amended to read:

6. Report to commissioner. Within 96 months after the end of the audit period, the school board shall provide the commissioner with:

A. A copy of the audit report;

B. Accountability of all revenues and expenditures;

C. Written assurance that the audit has been conducted in accordance with applicable state and federal laws relating to financial and compliance audits; and

D. Any other information that the commissioner may require.

Sec. LLL-21. Retroactivity. Those sections of this Act that amend the Maine Revised Statutes, Title 20-A, sections 1305-C, 1701-C and 2307 apply retroactively to January 1, 2008.

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

PART MMM

Sec. MMM-1. Sale of Real Property, Department of Administrative and Financial Services. Notwithstanding any other provision of law, $600,000 in net proceeds from the sale or sales of real property owned by the state and of which the Commissioner of the Department of Administrative and Financial Services is authorized to dispose by existing law shall be deposited as undedicated revenue to the General Fund in fiscal year 2008-09.. The Commissioner must make such a deposit to and for use by the General Fund notwithstanding any competing provisions of law or resolve that would accrue the benefits of such proceeds to any other purpose.

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

PART NNN

Sec. NNN -1. MRSA 22, §3174-G, sub-§1-D is enacted to read:

1-D. Enrollment fee. The department may assess an annual enrollment fee of $25 for participation in the MaineCare program for a family including a parent or caretaker relative of a child described in paragraph B or D of this section when the family’s income exceeds 150% of the nonfarm income official poverty line.

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

PART OOO

Sec. OOO-1. Transfer from Other Special Revenue Funds to unappropriated surplus of the General Fund. Notwithstanding any other provision of law, the State Controller shall transfer $10,000,000 in fiscal year 2007-08 from Other Special Revenue Funds to the unappropriated surplus of the General Fund no later than June 30, 2008. On July 1, 2008, the State Controller shall transfer $10,000,000 from the General Fund unappropriated surplus along with interest to Other Special Revenue Funds as repayment. This transfer is considered an interfund advance to be repaid with interest compounded annually at the earnings rate within the Treasurer of State’s cash pool on the date of the advance.

Amends LD 2173 by adding a new Part PPP as follows:

PART PPP

Sec. PPP-1. MRSA 25, §1541. Commanding officer sub-§6 as amended PL 2003, c. 451, Pt. S, §1 is further amended to read:

6. Establishment of fees. The State Bureau of Identification may charge a fee to individuals, nongovernmental organizations, governmental organizations that are engaged in licensing and governmental organizations that are not a governmental entity of the State, a county of the State or a municipality of the State for each criminal history record check requested for noncriminal justice purposes pursuant to Title 16, chapter 3, subchapter 8. The requestor shall provide a name and date of birth for each record being requested. A request made pursuant to 5 United States Code, Section 9101 must be accompanied by fingerprints. A governmental organization that is engaged in licensing may charge an applicant for the cost of the criminal history record check. The commissioner shall establish a schedule of fees that covers the cost of providing these services. $1 of each fee generated under this section shall be deposited to the Other Special Revenue account within the Bureau of State Police to offset the cost of maintenance and or replacement of both hardware and software associated with the criminal history record check system. Revenues generated from the remaining fees must be credited to the General Fund.

Amends LD 2173 by adding a new Part QQQ as follows:

Sec. QQQ -1. MRSA, 28-A §1361 sub-§2, as amended PL 2001, c. 20, §1, is further amended to read:

2. Fee for certificate of approval. The fee for a certificate of approval is ~~$600~~ $1,000 per year for malt liquor only and ~~$600~~ $1,000 for wine only, except that the fee for a manufacturer or foreign wholesaler of wine who ships 120 gallons of wine or less per year is $100. Payment of the fee must accompany the application for the certificate.

Sec. QQQ-2. MRSA, 28-A, §1551. Fees for nonretail licenses, as enacted by PL 1987, c. 342, §114, is amended to read:

1. Certificate of approval. The license fees for certificates of approval are:

A. For malt liquor (one year)............. ~~$600~~ $1,000; and,

B. For wine (one year).................... ~~$600~~ $1,000.

Amends Part YY section 2 of LD 2173 as follows:

Current

Sec. YY-2. Merger. The Department of Agriculture, Food and Rural Resources, Department of Conservation, Department of Inland Fisheries and Wildlife and Department of Marine Resources shall merge into not more than 2 natural resources departments in accordance with this section.

1. In collaboration with the Commissioner of Administrative and Financial Services and the Director of the State Planning Office within the Executive Department, the Commissioner of Agriculture, Food and Rural Resources, Commissioner of Conservation, Commissioner of Inland Fisheries and Wildlife and Commissioner of Marine Resources shall submit a plan for organization of their departments into not more than 2 natural resources departments and implementing legislation to the First Regular Session of the 124th Legislature by January 1, 2009. The department or departments of natural resources must at a minimum contain offices of law enforcement; resource management; policy, planning and operations; and land management.

2. In developing the reorganization plan, the Commissioner of Agriculture, Food and Rural Resources, Commissioner of Conservation, Commissioner of Inland Fisheries and Wildlife and Commissioner of Marine Resources shall, in collaboration with the Commissioner of Administrative and Financial Services and the Director of the State Planning Office within the Executive Department:

A. Seek reorganization ideas from Legislators, members of the public, businesses, outside experts and others served by the departments being reorganized; accept information; and address concerns;

B. Cooperate with other entities of State Government;

C. Enhance services provided to natural resources-based businesses and industries and for outdoor recreation, natural resources management and environmental protection;

D. Integrate research, scientific, land management, enforcement and outreach, promotion and education functions;

E. Utilize advances in science and technology and plan for trends in natural resources, recreation activity, environmental management and business sector needs;

F. Maximize natural resources, environmental and economic benefits;

G. Coordinate and streamline functions, services and activities;

H. Eliminate duplication of services and administrative activities; and

I. Create efficiencies and cost savings in the provision of services to be directed in the future to the needs of the new natural resources department or departments.

3. The Department of Agriculture, Food and Rural Resources, Department of Conservation, Department of Inland Fisheries and Wildlife and Department of Marine Resources shall, using existing funds and in a process administered through the Executive Department, State Planning Office, contract with a consultant to analyze existing department functions, research approaches to natural resources departments’ organization in other states, conduct stakeholder outreach, develop reorganization plan options and write the rationale for each option.

4. The plan developed pursuant to this section must, at a minimum, clearly articulate, regarding the reassignment of powers, duties and responsibilities from the entities in existence on the effective date of this Part to the entities that will result from the reorganization:

A. An outline of:

(1) The structure of the reorganized agencies, including the number, title and functions of bureaus and divisions within bureaus;

(2) The administrative structure of the reorganized agencies; and

(3) Program and service delivery functions;

B. The disposition of accrued expenditures, assets, liabilities, balances of appropriations, allocations, transfers, revenues or other available funds in an account or subdivision of an account. The plan must identify the successor agency for each federal block grant or program and any other federal programs, grants and contracts;

C. The disposition of records;

D. The disposition of property and equipment; and

E. The disposition of personnel. The plan must also include detailed information about positions that are eliminated or reclassified. Employees holding positions that are transferred retain all their employee rights, privileges and benefits, including sick leave, vacation and seniority, provided under the Civil Service Law or collective bargaining agreements.

5. Rules, contracts, agreements and compacts of the affected agencies that are in effect on the effective date of this Part remain in effect until they expire or are rescinded, revised or amended by the agencies or the parties involved in the contracts, agreements or compacts.

Proposed

Sec. YY-2. Long Term Enhancement of Services and Efficiencies.

1. The agencies serving the natural resource sectors within the State of Maine including but not limited to the Department of Agriculture, Food and Rural Resources, Department of Conservation, Department of Inland Fisheries and Wildlife, Department of Marine Resources and Department of Environmental Protection, will work together and with a task force appointed by the Governor to participate in the creation of and implementation of a plan that will consider all ideas and organizational configurations, eliminate duplication and create greater efficiencies to improve the delivery of services to the citizens of the State of Maine associated with the natural resources sector. Legislation to implement the plan will be presented to the First Regular Session of the 124^th Legislature by January 1, 2009.

2. The administration will, out of existing funds, secure facilitation and research expertise to undertake the following:

A. Analyze existing department functions;

B. Conduct stakeholder outreach;

C. Seek increased efficiency ideas from Legislators, members of the public, businesses, outside experts and others served by the departments serving the natural resources sector; accept information; and address concerns;

D. Cooperate with other entities of State Government;

E. Research approaches to natural resources services in other states;

F. Enhance services provided to natural resources-based businesses and industries and for outdoor recreation, natural resources management and environmental protection;

G. Integrate research, scientific, land management, enforcement and outreach, promotion and education functions;

H. Utilize advances in science and technology and plan for trends in natural resources, recreation activity, environmental management and business sector needs;

I. Maximize natural resources, environmental and economic benefits;

J. Coordinate and streamline functions, services and activities;

K. Eliminate duplication of services and administrative activities; and

L. Create efficiencies and cost savings in the provision of natural resource services.

3. The task force will issue a report, including recommendations and legislation necessary to the implementation of the recommendations, to the Governor by November 30, 2008.

4. Any savings that are achieved through increased efficiencies shall be re-allocated within the natural resource agencies.

Change Package

Statement Summary

Part C

Part C specifies a mill expectation of 6.54 for fiscal year 2008-09; the total cost of funding public education from kindergarten to grade 12, consisting of total operating allocation, total debt service allocation and total adjustments and miscellaneous costs; and the state and local share of those costs.

Part H

Part H section 3 is amended to reflect an increase in the projected amount available for transfer from the excess equity reserves retiree health insurance fund from $9,936,891 to $16,832,248 as the General Fund’s share to the unappropriated surplus of the General Fund. New section 4 recognizes retiree health insurance savings of $185,196 that will be achieved through changes to be adopted by the State Employee Health Commission.

Part I

The proposed amended language is provided as a replacement to the original language in I-2. The changes from the original submission remove the option to exercise the lease purchase in FY 08, sets a maximum allowable interest rate and interest amount that can be paid and makes this language consistent with other authorizations requested in the bill and formally approved in previous budgets.

Part N

Part N section 1 is amended to revise the title for one of the Deputy Commissioner positions in the Department of Health and Human Services. A new section 18 is added that repeals an outdated procedure by which a current contractor gets the right to appeal the department’s decision to issue a request for proposal for the services that the contractor provides. It also requests a renumbering of the remaining sections in this part.

Part Z

Part Z is amended by adding sections Z-3 and Z-4 which renames two additional programs of the Department of Health and Human Services.

Part MM

Part MM in LD 2173 is deleted and its content re-assigned to a new Part WW. This new Part MM extends the authority to transfer information technology positions and funding by financial order to include fiscal year 2008-09.

Part PP

Part PP in LD 2173 is amended to correct the amount available for transfer from the Office of the State Fire Marshall to the unappropriated surplus of the General Fund from $2,500,000 to $2,750,000 in fiscal year 2007-08.

Part TT

The initial Part TT is deleted. The new Part lapses $1,021,234 of unencumbered balance forward in the Legislative accounts to the General Fund in fiscal year 2008-09. It requires the Executive Director of the Legislative Council to identify to the State Controller and State Budget Officer by May 15, 2009 the program accounts and line category where these targeted savings will be achieved from in fiscal year 2008-09.

Part UU

The initial Part UU in LD 2173 is deleted and replaced with a new Part UU which revises the timeframe for the elimination of 100 positions in the Office of MaineCare Services that will no longer be required when the office has transitioned its current management information system model to a model operated by a fiscal agent. Rather that eliminating the positions in fiscal year 2008-09, the positions will be eliminated no later than June 19, 2010. The Commissioner of Health and Human Services is required to provide a report detailing the positions to be eliminated to the Joint Standing Committee on Health and Human Services and the Joint Standing Committee on Appropriations and Financial Affairs by December 15, 2008.

Part VV

This new part lapses $356,200 of unencumbered Personal Services funds from the Division of Forest Fire Control within the Department of Conservation to the General Fund at the close of fiscal year 2008-09.

Part WW

The initial Part WW in LD 2173 is deleted. This new part amends the Real Estate Transfer Tax provisions regarding transfers made to the Housing Opportunities for Maine (HOME) fund by requiring that effective with fiscal year 2008-09 and each fiscal year thereafter $2,972,414 of the remaining ½ of those revenues earmarked for the HOME fund must be transferred to the Department of Health and Human Services for the Bridging Rental Assistance Program.

Part ZZ

This new Part authorizes the Commissioner of Administrative and Financial Services 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.

Part AAA

This new Part amends Public Law 2007, c. 240, Pt KK section 1 by adding “after all financial commitments and adjustments have been made” to the existing provisions in order to prevent any conflict with other approved legislation. The State Controller before transferring unexpended Personal Services balances to the Compensation and Benefit, Salary Plan account to be used for costs associated with collective bargaining agreements for state employees must first ensure that all financial commitments and adjustments have been made.

Part BBB

New Part BBB authorizes the State Controller to 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.

Part CCC

New Part CCC does the following:

1. updates references to the United States Internal Revenue Code of 1986 contained in the Maine Revised Statutes, Title 36 to the United States Internal Revenue Code of 1986 as amended through February 13, 2008 for tax years beginning on or after January 1, 2007 and for any prior taxable years as specifically provided by the United States Internal Revenue Code concerning income tax and estate tax laws.

2. amends the addition modifications for individual and corporate income tax to include add-backs of the 50% bonus depreciation allowance enacted by Public Law 110-185.

Sections 4, 5 and 6 enact new modifications to itemized deductions for individuals and the fiduciary adjustment for estates and trusts to disallow a deduction of mortgage insurance premiums allowed pursuant to the Code, Section 163(h)(3)(E).

Sections 7, 8 and 9 enact a new addition modification for individuals to reverse the exclusion from income of certain State and local tax benefits or qualified payments to a member of a qualified volunteer emergency response organization allowed pursuant to the Code, Section 139B.

Part DDD

This Part changes the definitions of community support services and day habilitation services and repeals the definition of residential training services to conform to recently rule changes governing the MaineCare program within the Department of Health and Human Services. These services are now divided into community support services for persons with mental health diagnoses, community support services for persons with mental retardation or autistic disorders, and home support services for adults with mental retardation or autistic disorders.

PART EEE

This Part authorizes the Department of Health and Human Services to transfer any Personal Services unencumbered balances in the Disproportionate Share - Dorothea Dix Psychiatric Center General Fund account and the Disproportionate Share – Riverview Psychiatric Center General Fund account to the All Other line category beginning in fiscal year 2008-09.

Part FFF

This new Part provides the method of distributing departmentwide savings and position eliminations in the Department of Health and Human Services resulting from a departmentwide reorganization.

Part GGG

This new Part provides the method for distributing savings within the Judicial Branch program within the General Fund that will result from maintaining costs within available resources.

Part HHH

This new Part amends the statutes by allowing Maine Housing to participate

with conventional lenders in construction lending, to allowing Maine Housing to provide construction loans outright.

Part III

This new Part repeals the requirement that the Department of Health and Human Services provide food assistance to legally-admitted aliens.

Part JJJ

Part JJJ does the following:

It provides the method for distributing department-wide savings within the Department of Health and Human Services that will result from reducing the services provided through the cooperative agreement with the University of Maine System.
It provides the method for distributing department-wide savings within the Department of Health and Human Services that will result from consolidating outpatient services into one section of MaineCare.

Part KKK

This Part would allow the reporting on the income tax return of the sales tax on casual rentals by any person whose only responsibility under the sales tax statute is the collection of tax on casual rentals and whose estimated annual sales tax liability is less than $1,000. These individuals will be allowed to report the tax on the Maine individual income tax return rather than filing sales/use tax returns.

Part LLL

This Part amends the laws regarding the implementation of school reorganization providing clarification on budget procedures, duties and responsibilities, transition procedures, debt services obligations, school closure, cost-sharing, audit requirements and elimination of barriers to reorganization.

Part MMM

This new Part requires that $600,000 in net proceeds from the sale or sales of real property owned by the state shall be deposited as undedicated revenue to the General Fund in fiscal year 2008-09.

Part NNN

This new Part authorizes the department to assess an annual enrollment fee of $25 to certain participants in the MaineCare program.

Part OOO

This new Part authorizes the transfer of $10,000,000 from the Other Special Revenue Fund to the unappropriated surplus of the General Fund at June 30, 2008. On July 1, 2008, the State Controller shall transfer $10,000,000 from the General Fund unappropriated surplus along with interest to Other Special Revenue Funds as repayment.

Part PPP

This new Part authorizes an increase in the fee for background checks that will result in additional undedicated revenue to the General Fund of approximately $533,174 in fiscal year 2008-09. It also dedicates $1.00 of the fee to be credited to the Bureau of State Police, Other Special Revenue Fund account in the Department of Public Safety to offset the cost of maintenance and or replacement of both hardware and software associated with the criminal history record check system.

Part QQQ

This new Part increases the license fee on certificate of approval from $600 to $1,000 for malt liquor and for wine for out-of-state alcohol manufactures.

PartYY

Part YY section 2 of LD 2173 is amended to clarify the role of the agencies serving the natural resource sectors by requiring a plan that will consider all ideas and organizational configurations, eliminate duplication and create greater efficiencies to improve the delivery of services associated with the natural resources sector.

Total Debt Service Allocation

Total Adjustments and Miscellaneous Costs

Total Cost of Funding Public Education from Kindergarten to Grade 12