SP0179, LD 450, item 1, An Act To Amend the Laws Regarding the Fund for the Efficient Delivery of Local and Regional Services

An Act To Amend the Laws Regarding the Fund for the Efficient Delivery of Local and Regional Services

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 30-A MRSA §5681, sub-§3, as amended by PL 2009, c. 213, Pt. S, §3 and affected by §16, is further amended to read:

3. Revenue-sharing funds. To strengthen the state-municipal fiscal relationship pursuant to the findings and objectives of subsection 1, there is established the Local Government Fund. To provide additional support for municipalities experiencing a higher-than-average property tax burden, there is established the Disproportionate Tax Burden Fund. To assist those municipalities that collaborate with other municipalities, counties or state agencies to obtain savings in the cost of delivering local and regional governmental services, there is established the Fund for the Efficient Delivery of Local and Regional Services, which is administered pursuant to chapter 231.

Sec. 2. 30-A MRSA §5681, sub-§5-D is enacted to read:

5-D. Fund for the Efficient Delivery of Local and Regional Services. For the months beginning on or after October 1, 2015 and before the distributions required by subsections 4-A and 4-B, 2% of all receipts transferred each month pursuant to subsection 5 must be deposited in the Fund for the Efficient Delivery of Local and Regional Services, as established in subsection 3, and distributed to those municipalities that can demonstrate significant and sustainable savings as determined by the Commissioner of Administrative and Financial Services in the cost of delivering local and regional governmental services through collaborative approaches to service delivery, enhanced regional delivery systems, the consolidation of administrative services, the creation of broad-based purchasing alliances or the execution of interlocal agreements. Any amounts transferred to the Fund for the Efficient Delivery of Local and Regional Services in excess of $500,000 in any fiscal year must be transferred to General Fund undedicated revenue.

Sec. 3. 30-A MRSA §6201, sub-§6, as amended by PL 2009, c. 213, Pt. S, §7 and affected by §16, is further amended to read:

6. Fund. "Fund" means the Fund for the Efficient Delivery of Local and Regional Services established by section 6202 5681, subsection 3.

Sec. 4. 30-A MRSA §6202, as amended by PL 2009, c. 213, Pt. S, §8 and affected by §16, is further amended to read:

§ 6202. Fund source; nonlapsing; dedicated, special revenue account

There is established the Fund for the Efficient Delivery of Local and Regional Services to assist those municipalities that collaborate with other municipalities, counties or state agencies to obtain savings in the cost of delivering local and regional governmental services. The fund consists of revenues transferred from the General Local Government Fund pursuant to section 5681, subsection 5-D and any funds received as contributions from private and public sources. Eligible investment earnings credited to the assets of the fund become part of the assets of the fund. Any balance remaining in the fund at the end of any fiscal year must be carried forward to the next fiscal year. The fund is a dedicated, special revenue account.

Sec. 5. 30-A MRSA §6204, first ¶, as amended by PL 2009, c. 213, Pt. S, §9 and affected by §16, is further amended to read:

Except as otherwise provided by this section and section 5681, subsection 3, the fund is available solely for grants for qualifying projects. The department may use the fund to cover its costs of administration, including contracting for services to administer the grants.

SUMMARY

This bill changes the funding for the Fund for the Efficient Delivery of Local and Regional Services from General Fund appropriations to monthly transfers of 2% of all receipts transferred to the Local Government Fund before the distributions to municipalities.

SP0179 LD 450	Session - 127th Maine Legislature		LR 34 Item 1
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