An Act To Establish Municipal Cost Components for Unorganized Territory Services To Be Rendered in Fiscal Year 2006-07
Maine Legislature, Session 122, LD 2039
Committee Amendment CA_A_H952 (House)
Amends: 36 MRSA §1611

COMMITTEE AMENDMENT .. /f .. to H.P. 1437, L.D. 
Act 
To 
Establish 
Municipal 
Cost 
Components 
Territory Services To Be Rendered in Fiscal Year 
2039, Bill, "An 
for 
Unorganized 
2006-07" 
Amend the bill by inserting before section 1 the following: 
'Sec. 1. 36 MRSA §1611 is enacted to read: 
§16ll. 
Limitation on municipal cost component 
1. 
Growth limitation. 
Except as otherwise provided in this 
section. the municipal cost component may not exceed the growth 
limitations established in subsection 2. 
2. 
Calculation 
of 
growth 
limitations. 
The 
growth 
limitation factors are calculated as follows. 
A. 
The growth limitation factor for the aggregate cost of 
the municipal cost components provided by the State is the 
same as the General 
Fund appropriation limitation factor 
calculated under Title 5. section 1534. subsection 2. 
B. 
The 
growth 
limitation 
factor 
for 
the 
cost of 
the 
municipal 
cost 
components 
provided by 
a 
county may 
not 
exceed the municipal cost component assessment limit for 
that county. 
For purposes of this section. a municipal cost 
component assessment limit must be determined by the State 
Tax Assessor annually for the unorganized territory in each 
county using the criteria provided under Title 3Q-A, section 
5721-A as if the unorganized territory for each county were 
a municipality. 
Page l-LR3l99(2) 
COMMITTEE AMENDME/\fr 
~" 
COMMITTEE AMENDMENT "~,, to H.P. 1437, L.D. 2039 
3. 
Exceeding or 
increasing growth 
limitations. 
Growth 
limitations on the municipal cost component may be exceeded or 
increased as follows. 
A. 
A governmental body with the authority to approve the 
county municipal cost component under Title 30-A, chapter 
may request that the Legislature approve a municipal 
cost component for that county that exceeds or increases the 
county growth limitation by sending a letter to the fiscal 
administrator of the unorganized territory at the same time 
that the finalized budget for services is submitted under 
Title 30-A, 
section 7503. 
The letter must describe the 
amount by which the growth limitation should be exceeded or 
increased 
and 
provide 
a 
detailed justification for 
the 
request. 
The 
fiscal 
administrator 
of 
the 
unorganized 
territory 
shall 
provide 
copies 
of 
all 
county 
letters 
requesting 
that 
the 
growth 
limitation 
be 
exceeded 
or 
increased to the joint standing committee of the Legislature 
having 
jurisdiction over the municipal cost component by 
March 1st annually. 
B. 
The Legislature may exceed or increase the municipal 
cost 
component 
growth 
limitation 
for 
state 
or 
county 
components by including a provision in the municipal cost 
component legislation enacted pursuant to section 1604 that 
specifically states the intent of the Legislature to exceed 
or increase the growth limitation. 
4. 
Application. 
This section applies to municipal cost 
component fiscal years beginning on or after July 1, 2007.' 
Further amend the bill by inserting after section 1 the 
fOllowing: 
'Sec. 2. Review and recommendation. 
The Commission to Study 
the 
Cost 
of 
Providing 
Certain 
Services 
in 
the 
Unorganized 
Territories shall review growth limitations established by the 
portion of this Act enacting the Maine Revised Statutes, Title 
36, section 1611 and make recommendations for retaining, amending 
or repealing those limitations to the joint standing committee of 
the Legislature having jurisdiction over taxation matters as part 
of its reporting responsibilities under Resolve 
2005, 
chapter 
125. 
The joint standing committee of the Legislature having 
jurisdiction over taxation matters may submit legislation related 
to the recommendations of the commission to the First Regular 
Session of the 123rd Legislature .. 
COMMITTEE AMENDMENT 
~Q 
~# ~ 
COMMITTEE AMENDMENT "A" to H.P. 1437, L.D. 2039 
Further amend the 
nonconsecutive 
consecutively. 
Part 
bill by 
letter 
relettering 
or 
section 
SUMMARY 
or renumbering any 
number 
to 
read 
This amendment includes statutory changes to apply growth 
limitations 
to 
spending 
and 
taxes 
under 
the 
municipal 
cost 
component 
that 
parallel 
state 
and 
local 
limitations. 
The 
amendment 
also directs the Commission to 
Study 
the Cost of 
Providing Certain Services in the Unorganized Territories to 
review the new growth limitations and make recommendations for 
retaining, amending or repealing those limitations to the joint 
standing committee of the Legislature having jurisdiction over 
taxation matters as part of its reporting responsibilities under 
Resolve 2005, chapter 125. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMEf'JT 
Approved: 03/30/06 frac 
LD 2039 
LR 3199(02) 
An Act To Establish Municipal Cost Components for Unorganized Territory Services To Be Rendered 
in Fiscal Year 2006-07 
Fiscal Note for Bill as Amended by Committee Amendment" 1\" 
Committee: Taxation 
It 
Fiscal Note Required: Yes 
Fiscal Note 
No net fiscal impact - General Fund 
Fiscal Detail and Notes 
The amounts in the bill for the state costs included in the municipal cost components are based on budgeted 
expenditures for fiscal year 2006-07. These costs are incorporated into the tax assessment for the unorganized 
territory, which is collected as dedicated revenue to the Unorganized Territory Education and Services Fund. 
Transfers are then made to the other dedicated accounts for certain expenditures related to the Unorganized Territory 
and to the General Fund to reimburse for actual General Fund expenditures included in the municipal cost 
components. This bill will not affect budgeted General Fund revenue or appropriations. 
LR3199(2) - Fiscal Note - Page I of I