An Act To Implement the Recommendations of the Commission To Study the Costs of Providing Certain Services in the Unorganized Territories
Maine Legislature, Session 123, LD 0885
Committee: Taxation
Amends: 30-A MRSA §7504, 20-A MRSA §3252, 20-A MRSA §3253-A, 36 MRSA §1605, 36 MRSA §1487, 30-A MRSA §7501, 30-A MRSA §7502, 36 MRSA §1610

Legislative Document 
No. 885 
H.P.670 
House of Representatives, February 28, 2007 
An Act To Implement the Recommendations of the Commission To 
Study the Costs of Providing Certain Services in the Unorganized 
Territories 
Reported by Representative DUCHESNE of Hudson for the Commission to Study the 
Costs of Providing Certain Services in the Unorganized Territories pursuant to Resolve 2005, 
chapter 125. 
Reference to the Committee on Taxation suggested and ordered printed under Joint Rule 
218. 
Printed on recycled paper 
'71/~ /J1.1iJu~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 30-A MRSA §7504 is enacted to read: 
§7504. Service fees 
1. Authority. The county commissioners of each county may impose a service fee 
on recipients of eligible servIces, as described in subsection 2, provided in the 
unorganized territory. 
2. Eligible services. For the purposes of this section, eligible services include: 
A. Solid waste management; 
B. Structural fire protection; 
C. Ambulance and emergency medical services; 
D. Law enforcement; 
E. Animal control; and 
F. Other services provided to property owners or residents in a limited geographic 
area. 
3. Conditions. A service fee imposed under this section must be: 
A. Based on the actual cost of providing the service; 
B. Imposed only on persons eligible for or actually receiving the service; and 
C. Imposed on all similarly situated persons eligible for or actually receiving the 
servIce. 
4. Use of revenues. Revenues received under this section must be used to reduce the 
amount requested to be raised through property taxes under Title 36, chapter 115. 
PART B 
Sec. B-1. 12 MRS A §685-D, as amended by PL 1999, c. 333, §18, is repealed. 
Sec. B-2. 12 MRS A §685-E, as amended by PL 2005, c. 386, Pt. I, §2, IS 
repealed. 
Sec. B-3. 12 MRS A §685-F, sub-§I, ~, as enacted by PL 2005, c. 107, §2 and 
as affected by §4, is amended to read: 
B. 
Require the commission to incur costs that exceed the funding provided in 
accordance with section ~ 
685-G. 
Sec. B-4. 12 MRS A §685-G is enacted to read: 
['ag'> 1 - 123LR0714(OJ)-! 
§685-G. Funding 
1. 
Unorganized territories. 
Beginning with fiscal year 2008-09, funding for 
services and activities of the commission for planning, pennitting and ensuring 
compliance in the unorganized territories must be assessed and allocated to the 
unorganized territories through a fee equal to .014% of the most recent equalized state 
valuation established by the State Tax Assessor. This fee must be collected through the 
municipal cost component under Title 36, chapter 115. 
2. 
Towns and plantations. Beginning with fiscal year 2008-09, a town or a 
plantation in the commission's jurisdiction that elects not to administer land use controls 
at the local level but receives commission services or a town or plantation with a portion 
II 
of its land under the commission's jurisdiction and receiving commission services, 
including planning, pennitting and ensuring compliance, must be assessed a fee equal to 
.025% of the most recent equalized state valuation established by the State Tax Assessor 
for that town or plantation or that portion of a town or plantation under the commission's 
jurisdiction. The State Tax Assessor shall issue a warrant to each such town or plantation 
no later than March 1 st of each year. The warrant is payable on demand. Interest charges 
on unpaid fees begin on June 30th of each year and are compounded monthly at the 
interest rate for unpaid property tax as established by the State Tax Assessor for the 
unorganized territory. For any assessment that remains unpaid as of September 1 st of the 
year in which it is due, state revenue sharing to that town or plantation must be reduced 
by an amount equal to any unpaid warrant amount plus any accrued interest, until the 
amount is paid. These fees must be deposited to the General Fund. 
Sec. B-5. Reports. The Maine Land Use Regulation Commission shall make the 
following reports to the Legislature. 
1. By January 15,2008 the commission shall report to the joint standing committees 
of the Legislature having jurisdiction over conservation matters and taxation matters 
making recommendations, including legislation if necessary, to enforce payment of the 
assessments required under the Maine Revised Statutes, Title 12, section 685-G, 
subsection 2. The joint standing committees of the Legislature having jurisdiction over 
conservation matters and taxation matters shall jointly review the recommendations and 
may submit legislation considered necessary as a result of the commission's report to the 
2. By January 15, 2009 the commission shall report to the joint standing committees 
of the Legislature having jurisdiction over conservation matters and taxation matters 
regarding commission funding and other financial matters. The report must cover the 5 
previous fiscal years and must identify General Fund appropriations and other resources, 
amounts assessed and collected from the assessments required under the Maine Revised 
Statutes, Title 12, section 685-G and amounts assessed and collected from fees and 
penalties assessed under Title 12, chapter 206-A. The joint standing committees of the 
Legislature having jurisdiction over conservation matters and taxation matters shall 
jointly review the distribution of funding and other assessments among the General Fund, 
unorganized territories and towns and plantations under the commission's jurisdiction and 
may submit legislation considered necessary as a result of the commission's report to the 
Sec. B-6. Effective date. 
Those sections of this Part that repeal the Maine 
Revised Statutes, Title 12, sections 685-D and 685-E and amend section 685-F, 
subsection 1, paragraph B take effect June 30, 2008. 
PARTe 
Sec. C-l. 20-A MRSA §3252, sub-§5, as repealed and replaced by PL 1985, c. 
490, §3, is amended to read: 
5. Transportation and board. The costs of transportation or board for students 
under this section may be paid in full or in part by the commissioner except that the 
commissioner may not provide or reimburse parents for providing transportation of 
students over roads that have not been accepted by the county as public roads or do not 
meet Department of Transportation standards. Beginning with fiscal year 2008-09, the 
commissioner may not reimburse parents for the transportation of a student. 
Sec. C-2. 20-A MRSA §3253-A, sub-§4, as enacted by PL 1985, c. 490, §5, is 
amended to read: 
4. Transportation or board. The costs of transportation or board for students under 
this section may be paid in full or in part by the commissioner except that the 
commissioner may not provide or reimburse parents for providing transportation of 
students over roads that have not been accepted by the county as public roads or do not 
meet Department of Transportation standards. Beginning with fiscal year 2008-09, the 
commissioner may not reimburse parents for the transportation of a student. 
Sec. C-3. Review and recommendation. The Department of Education shall 
review whether the Unorganized Territory Education and Services Fund under Title 36, 
chapter 115 should be entitled to receive aid from the General Fund in the same manner 
as if the Unorganized Territory Tax District were a school administrative district under 
the essential programs and services program. The department shall submit a report by 
January 15, 2008 to the joint standing committee of the Legislature having jurisdiction 
over taxation matters indicating the results of its review, including the fiscal impacts of 
making that change in entitlement and any statutory changes that would be necessary to 
accomplish the change. 
The joint standing committee of the Legislature having 
jurisdiction over taxation matters may submit legislation considered necessary as a result 
ofthe report to the Second Regular Session of the 123rd Legislature. 
PART D 
Sec. D-l. 36 MRSA §1605, sub-§4 is enacted to read: 
4. Fund accounting. The State Controller shall establish an Unorganized Territory 
Education and Services Fund that reflects all of the activity of that fund within the state 
accounting system chart of accounts in accordance with the standards of a governmental 
accounting standards board as they apply to financial statements of the fund. 
p"gr~ " - n:n .R0714(01 )-1 
PARTE 
Sec. E-l. 36 MRSA §1487, sub-§2, as amended by PL 1995, c. 29, §1, is further 
amended to read: 
2. State Tax Assessor. In the unorganized territory, the State Tax Assessor shall 
appoint agents to collect the excise tax. Agents, including municipalities designated as 
agents, are allowed a fee of $4 $6 for each tax receipt issued. Agents shall deposit the 
remainder on or before the 20th day of each month following receipt with the Treasurer 
of State. The Treasurer of State shall make quarterly payments to each county in an 
amount that is equal to the receipts for that period from each county. Those payments 
must be made at the same time as payments under section 1606. County receipts under 
this section must be deposited in the county's unorganized territory fund. 
PART F 
Sec. F-l. 30-A MRSA §7501, sub-§2, as enacted by PL 1987, c. 737, Pt. A, §2 
and Pt. C, §106 and as amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, 
is repealed and the following enacted in its place: 
2. Solid waste. Solid waste management; 
Sec. F-2. 30-A MRSA §7502, sub-§l, as amended by PL 2003, c. 414, Pt. B, 
§47 and as affected by c. 614, §9, is further amended to read: 
1. Fund established. There is established in each county one unorganized territory 
fund to which must be credited all receipts under Title 12, section 10203 and Title 36, 
sections +4&9 1487, 1505 and 1606 and all other receipts that are allocated for municipal 
services in the unorganized territory, and from which all disbursements for municipal 
services in the unorganized territory are made. 
Sec. F-3: 36 MRS A §1602, sub-§4,~, as amended by PL 1985, c. 458, §1, is 
further amended to read: 
B. The State Tax Assessor shall establish a district-wide mill rate calculated to raise 
the cost of all other portions of the municipal cost component certified by the 
Legislature. For fiscal years 1985 86, 1986 87, 1987 88, 1988 89 and 1989 90, in 
figuring the district wide mill rate, the State Tax Assessor shall subtract $100,000 
from the amount certified by the Legislature. 
Sec. F-4. 36 MRSA §1610, as enacted by PL 1985, c. 458, §2, is repealed. 
SUMMARY 
This bill implements the recommendations of the Commission to Study the Cost of 
Providing Certain Services in the Unorganized Territories established by Resolve 2005, 
chapter 125. 
Page·1 - HJUW7i4(ill)-1 
Part A provides authority for county commissioners to impose service fees for certain 
types of services provided in the unorganized territory. Service fees must be based on the 
actual cost of providing the service, imposed. only on persons actually receiving the 
service and imposed on all similarly situated persons receiving the service. Revenues 
must be used to reduce property taxes. 
Part B changes the method of assessing areas under the jurisdiction of the Maine 
Land Use Regulation Commission for the cost of providing services. The unorganized 
territory will be assessed a fee equal to .014% of state valuation. Towns and plantations 
under the jurisdiction of the Maine Land Use Regulation Commission will be assessed a 
fee equal to .025% of state valuation, reflecting a higher amount of commission activities 
in those areas. The commission is required to report during the First Regular Session of 
the 124th Legislature regarding financial matters. 
Part C provides that the Commissioner of Education may not provide or reimburse 
parents for providing transportation for students over roads that have not been accepted 
by the county as public roads or that do not meet Department of Transportation standards. 
Reimbursement to parents for transportation of a student will not be permitted beginning 
in fiscal year 2008-09. 
Part D requires the State Controller to establish an Unorganized Territory Education 
and Services Fund that is in accordance with the standards of a governmental accounting 
standards board as they apply to financial statements. 
Part E increases the fee paid to agents collecting motor vehicle and watercraft excise 
taxes in the unorganized territory from $4 to $6. 
Part F makes technical changes to update language and statutory references and 
repeals an obsolete provision in the laws relating to the funding of services in the 
unorganized territory.