An Act To Implement the Recommendations of the Task Force on Rail Transportation
Maine Legislature, Session 121, LD 0599
Committee: Transportation
Sponsors: MARTIN, DAVIS, ROTUNDO, SAVAGE, COLLINS, MURPHY
Amends: 5 MRSA §13058, 23 MRSA §74, 23 MRSA §7103, 23 MRSA §7107, 23 MRSA §7230, 29-A MRSA §2602, 36 MRSA §2621-A, 36 MRSA §3218-A

Legislative Document 
No. 599 
S.P.208 
In Senate, February 11, 2003 
An Act To Implement the Recommendations of the Task Force on 
Rail Transportation 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Senator MARTIN of Aroostook. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: DAVIS of Piscataquis, ROTUNDO of Androscoggin, SAVAGE of 
Knox, Representatives: COLLINS of Wells, MURPHY of Kennebunk. 
Primed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13058, sub-§19 is enacted to read: 
19. 
Coordinate assessment of transportation needs related 
to 
economic 
development 
projects. 
The 
commissioner 
shall 
coordinate the activities of the department, the State Plannin-9 
Office 
within 
the 
Executive 
Department, 
the 
Department 
of 
Transportation and regional planning and 
economic 
development 
organizations 
to 
ensure 
that 
the 
location 
of 
rail 
lines, 
potential 
use 
of 
passenger 
and 
freight 
rail 
and 
costs 
of 
transportation improvements related to development are considered 
during initial planning and locating of projects reviewed by the 
commissioner in administering economic development programs under 
this chapter. 
Sec. 2. 23 MRSA §74 is enacted to read: 
§74. 
Freight transportation advisory council 
1. Purpose; membership. The Commissioner of Transportation 
shall establish 
a 
freight transportation advisory council 
to 
facilitate discussion and provide insight into issues pertaining 
to freight transportation in the State. 
The commissioner shall 
invite 
no 
fewer 
than 
people 
from 
the private 
sector 
to 
participate as members of the council. 
Membership must include 
representatives 
of 
various 
geographic 
areas 
of 
the 
State. 
Membership must include at least one person with experience in 
each of the following: 
A. 
Commercial trucking; 
B. 
Rail freight; 
C. 
Waterborne freight; 
D. 
Manufacturing forest products; 
E. 
Shipping forest products; 
F. 
Shipping agricultural products; and 
G. 
Distributing petroleum products. 
2. 
Meetings; chair. 
The Commissioner of Transportation or 
the commissioner I s designee shall serve as chair of the council 
established in subsection 1. 
The Department of Transportation 
shall provide staff support to the council. 
The council shall 
meet 
at 
the 
call 
of 
the 
chair 
but 
not 
less 
than 
Page l-LRI087(1) 
• 
• 
times during 
a 
calendar year. 
Members of the council serve 
without compensation. 
Sec. 3. 23 MRSA §7103, sub-§l, as repealed and replaced by PL 
1989, c. 398, §7, is amended to read: 
1. 
Fund 
created. 
There 
is 
created 
the 
"Railroad 
Preservation and Assistance FundL
" 
which saall--£€€€,ive receives 
.ail revenue derived from the tax levied pursuant to Title 36, 
chapter 361, 
eHee~~-~~-~~B&-~aaB-$~~Q7~Q~-~~~-~i&-~eVeBye 
saall-Be-£~~~€£-~~~~~~-~-a&y-fi&eal-year fines collected 
pursuant to Title 29 A, section 2602, subsection 4, paragraph D 
and taxes paid under Title 36, section 1865. 
The fund saall is 
also ae eligible to receive grants 
from other sources. 
The 
Treasurer of State shall receive and deposit all revenue to the 
fund 
in 
a 
separate 
account 
to 
be 
known 
as 
the 
Railroad 
Preservation and Assistance Fund. 
Sec. 4. 23 MRSA §7107 is enacted to read: 
§7l07. 
Dismantling of state-owned track 
Except 
as 
provided 
~n this 
section, 
the 
Department 
of 
Transportation may not dismantle or contract with a state agency 
or private entity for the dismantling of state-owned track. 
When 
the department, in consultation with a regional economic planning 
entity 
and 
a 
regional 
transportation 
advisory 
committee 
established in accordance with rules adopted under section 73, 
subsection 4, determines that removal of a specific length of 
rail owned by the State will not have a negative impact on a 
region or on future economic opportunities for that region, the 
Commissioner of Transportation shall seek review and approval of 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over transportation matters prior to removal. 
Sec. 5. 23 MRSA §7230. 3rd~. as enacted by PL 1989, c. 398, 
§8, is amended to read: 
The State may provide annually each railroad corporation 
with 
a 
reimbursement 
payment. 
For 
at-grade 
crossings, 
the 
payment 
saal± 
must 
be 
determined 
based 
on 
each 
railroad 
corporation's verified average 
cost 
for 
crossing maintenance 
mul tiplied by the number of eligible crossings, with a maximum 
payment of $lTagg $2,500 per crossing. 
~eF-~r~-£€~a£a~ieB 
Bria~esT-~~~-saal±-~~~r~~-Basea-~~-rai±reaa 
eer~era~ieB~s--~~~~~--avera~e--~~~--ees~--~~---~raae 
se~a~a~ieB--~-~--ffiYl~,i~l,iea--~Y--~~--&~~F--~---eli~iale 
s~rye~YresT-wi~a-a-ffiaHiffiYffi-~aYffieB~-ef-$6Tagg-~er-s~rye~YFeT 
Sec. 6. 29-A MRSA §2602~ sub-§4, "B and C. as enacted by PL 
1997, c. 750, Pt. A, §3, are amended to read: 
B. 
Of 
the 
fines 
and forfeitures 
collected for 
infractions under sections 511, 2356, 2360, 2380, 
traffic 
2387 and 
2388, 7% accrues to the General Fund, 6% 
Enforcement 
Agency 
Reimbursement 
Fund 
accrues to the General Highway Fund; aae 
accrues to the Law 
and 
the 
balance 
C. 
Of the fines and forfeitures collected for violations 
other than traffic infractions under sections 511, 
2356, 
2360, 
2380, 
2387 
and 2388, 
only $5 or 
l3ob, 
whichever is 
greater, accrues to the General Fund and the balance accrues 
to the Highway FundT; and 
Sec. 7. 29-A MRSA §2602, sub-§4"n ~s enacted to read: 
D. 
All 
fines 
and 
forfeitures 
collected 
for 
violations 
under section 2354, 
subsection 
accrue to the Railroad 
Preservation and Assistance Fund established in Title 23.<-
section 7103. 
Sec. 8. 36 MRS A §1865 is enacted to read: 
§1865. 
Deposit of use taxes paid on certain fuels 
The Treasurer of State shall deposit all use taxes 
receive~ 
for fuel consumed b;:' vehicles operating on rails and qualifying 
for a fuel tax refund under section 3218 and taxed under this 
chapter 
into 
the 
Rail 
Preservation 
and 
Assistance 
Fund 
established in Title 23, section 7103. 
Sec. 9. 36 MRSA §2621-A. sub-§3. F, as enacted by PL 199 L 
c. 
591, Pt. N, §3 and affected by §4, is repealed. 
Sec. 10. 36 MRS A §2625, as repealed and replaced by PL 1983, 
c. 571, §8, is amended to read: 
§2625. 
Return and payment 
Every railroad company incorporated under the laws of this 
State or doing business in this State shall file with the State 
Tax Assessor annually, on or before April 15th, a railroad excise 
tax return, on a form prescribed by the State Tax Assessor. 
The 
tax sRall must be paid in equal installments on the next June 
15th, September 15th and December 15th. 
The Treasurer of State 
shall deposit all taxes paid under this chapter into the Railroad 
Preservation and Assistance 
Fund established under Title 
23, 
section 7103. 
• 
Sec. 11. 36 MRSA §3218-A is enacted to read: 
§3218-A. 
Refunds of tax for fuel used by railroads 
Beginning July 1, 
2004, 
the assessor 
shall monitor 
the 
amount of refunds paid under section 3218 for fuel consumed by 
vehicles operating on rails and monitor the amount of use tax 
paid on 
fuel 
consumed 
by vehicles operating 
on rails 
under 
chapter 215. 
Sec. 12. Review of taxes imposed on railroads: legislation. 
The 
chairs of the Joint Standing Committee on Taxation shall appoint 
a 
subcommittee to 
review statutory provisions for 
taxes that 
apply to companies operating railroads in the State and consider 
the impact of these provisions. 
The subcommittee shall recommend 
statutory revisions to Maine tax laws to improve the viability of 
railroads operating in the State. 
The Joint Standing Committee 
on Taxation may report out legislation to the Second Regular 
Session 
of 
the 
l2lst Legislature pertaining to 
taxation of 
companies operating railroads in Maine. 
SUMMARY 
This bill does the following: 
1. 
Directs 
the 
Commissi~ner of 
Economic 
and 
Community 
Development to ensure that transportation needs and the potential 
use of rail are considered when economic development projects are 
planned; 
2. 
statute; 
Establishes a freight transportation advisory council ln 
3. 
Requires the Commissioner of Transportation to seek the 
review 
and 
approval 
of 
the 
joint standing committee 
of 
the 
Legislature having jurisdiction over transportation matters prior 
to the dismantling of state-owned railroad tracks; 
4. 
companies 
$2,500 per 
Increases 
the 
for maintaining 
crossing; 
maximum 
reimbursement 
to 
a 
railroad crossing from 
railroad 
$1, 500 
to 
5. 
Provides 
for 
fines 
imposed 
violations to be deposited into the 
Assistance Fund when the weight exceeds 
for 
6-axle 
truck 
weight 
Railroad Preservation and 
100,000 pounds; 
6. 
Repeals the tax credit cap on the railroad excise tax; 
7. 
Provides for all revenue from the railroad excise tax to 
be deposited in the Railroad Preservation and Assistance Fund; 
8. 
Provides for use taxes paid on fuel consumed by vehicles 
operating on rails and eligible for a refund from the gas tax to 
be deposited in the Railroad Preservation and Assistance Fund; and 
9. 
Directs the Joint Standing Committee on Taxation to 
review and make recommendations for statutory revisions to Maine 
tax laws affecting railroads. 
The bill authorizes the committee 
to report out legislation to implement recommendations during the