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PUBLIC LAWS
Second Regular Session of the 122nd

CHAPTER 643
H.P. 802 - L.D. 1159

An Act To Promote Municipal-State Transportation Investment Partnerships

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

     Sec. 1. 23 MRSA §703-B is enacted to read:

§703-B. Financing new road construction

     If the municipal officers of one or more municipalities determine it necessary that a public road be constructed to spur economic development, downtown revitalization or neighborhood preservation; to create new housing stock; to promote mixed-use or densely settled village centers; or to enhance public safety, then the municipal officers may petition the Department of Transportation to finance from the Highway Fund up to 50% of the cost of the proposed road construction, subject to available funds. The municipality shall have a department-approved transportation plan for state and state aid highways and comply with the policies and procedures adopted by the department. The municipality is responsible for securing the balance of funds and for undertaking project design, permitting and construction following department guidelines. The public road must meet state design standards and function as a major collector or arterial highway as defined in department rules. Prior to the commitment of funds by the department, the department shall notify the participating municipalities of the likely classification of the proposed road and what, if any, changes in classification might result for existing public ways in the project area.

     Sec. 2. 23 MRSA c. 19, sub-c. 6-A is enacted to read:

SUBCHAPTER 6-A
TRANSPORTATION INVESTMENT PARTNERSHIPS

§1821.   State aid for arterial and major collector highway capital projects

     Municipalities may choose to participate in the arterial and major collector highway capital projects program created under this section. Participating municipalities shall have a department-approved transportation plan for state and state aid highways and comply with policies and procedures adopted by the Department of Transportation. The plan must identify those capital improvements needed to remove or mitigate substandard conditions. A participating municipality may finance improvement projects from the approved plan in either of the following ways:

     1. State and municipal investments. Following authorization of the transportation improvement project by the Commissioner of Transportation and within 2 years of a mutual agreement between the municipality and the Department of Transportation and a financial commitment by the municipality, the Treasurer of State shall make a deposit of Highway Fund revenues and General Fund revenues, each fund amount equal to the municipal contribution, into a Maine Municipal Bond Bank trust account opened in the name of the municipality. The contributions of local funds may not exceed the product of $226 multiplied by the passenger car equivalents at peak hour for traffic movement permits issued under section 704-A for that municipality in the prior year. Except for the Highway Fund contributions, money deposited in the account may be used for utility and storm water improvements related to the transportation improvement project; or

     2. State, municipal and private investments. Following authorization of the transportation improvement project by the Commissioner of Transportation and within 2 years of a mutual agreement between the municipality and the Department of Transportation, the Treasurer of State shall make a deposit of Highway Fund revenues equal to the municipal contribution into a Maine Municipal Bond Bank trust account opened in the name of the municipality. The contributions of local funds may not exceed the projected level of private investment in transportation improvements within the plan area required under section 704-A.

     This section does not relieve the Department of Transportation of its obligation to make improvements to state and state aid highways without municipal participation.

Effective August 23, 2006.

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