An Act To Secure Maine's Transportation Future
Maine Legislature, Session 123, LD 1790
Committee: Transportation
Sponsors: DAMON, MARLEY, DIAMOND, MARRACHE, MARTIN, NUTTING, PERRY, SAVAGE, STRIMLING, BLANCHARD, BROWNE, CEBRA, CRAVEN, CROSTHWAITE, CURTIS, FAIRCLOTH, FISCHER, FISHER, FLOOD, HOGAN, HOLMAN, MAZUREK, PEOPLES, PINGREE, PIOTTI, ROSEN, STRANG BURGESS, TARDY, THERIAULT, WOODBURY
Amends: 23 MRSA §73, 23 MRSA §1822, 30-A MRSA §6006-G, 30-A MRSA §6006-H, 36 MRSA §1482, 36 MRSA §1952-A, 36 MRSA §2903

Legislative Document 
No. 1790 
S.P.634 
March 29,2007 
An Act To Secure Maine's Transportation Future 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Senator DAMON of Hancock. 
Cosponsored by Representative MARLEY of Portland and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DIAMOND of Cumberland, MARRACHE of Kennebec, MARTIN of Aroostook, 
NUTTING of Androscoggin, PERRY of Penobscot, SAVAGE of Knox, STRIMLING of 
Cumberland, Representatives: BLANCHARD of Old Town, BROWNE of Vassalboro, 
CEBRA of Naples, CRAVEN of Lewiston, CROSTHWAITE of Ellsworth, CURTIS of 
Madison, FAIRCLOTH of Bangor, FISCHER of Presque Isle, FISHER of Brewer, FLOOD of 
Winthrop, HOGAN of Old Orchard Beach, HOLMAN of Fayette, MAZUREK of Rockland, 
PEOPLES of Westbrook, PINGREE of North Haven, PIOTTI of Unity, ROSEN of Bucksport, 
STRANG BURGESS of Cumberland, TARDY of Newport, THERIAULT of Madawaska, 
WOODBURY of Yarmouth. 
Printed on recycled paper 
Be it enacted by the Paple of the State of Maine as follows: 
Sec. 1. 23 MRSA §73, sub-§6 is enacted to read: 
6. Performance goals and reporting. The Legislature establishes the following set 
of goals to provide overall direction and consistency in delivering a comprehensive 
transportation capital improvement program that is geographically balanced and 
addresses urban and rural needs. 
A. All principal and minor arterials must be reconstructed to nationally accepted 
design standards by 2017. 
B. All major collectors must be reconstructed by 2027 to at least the standards set in 
the department's state design standards. 
C. The service period remaining before arterials and major collectors need major 
rehabilitation of drainage or structural features must be evenly distributed across the 
inventory by 2027. 
D. 
The service period remaining before nonextraordinary bridges need major 
rehabilitation or replacement must be evenly distributed across the inventory by 2027 
except for low use or redundant bridges. 
E. 
Extraordinary bridge replacement, removal or rehabilitation projects or new 
capacity highway projects exceeding $10,000,000 in cost must receive special 
consideration as to the most appropriate means of capital financing to avoid 
disruption to achievement of goals under paragraphs A to D. 
F. 
Capital improvements must maximize the benefit to freight and passenger 
transportation users while mitigating, to the extent practicable, energy and 
environmental impacts. 
The department shall report to the joint standing committee of the Legislature having 
jurisdiction over transportation matters on January 15th of each year the progress realized 
in achieving the goals set forth in this subsection. The report must quantify progress 
realized and time that has elapsed since the goals under paragraphs A to D were 
established. The department shall recommend any remedial actions, including additional 
funding, needed to ensure fulfillment of the goals if they are at risk of not being attained. 
Sec. 2. 23 MRSA §1822 is enacted to read: 
§1822. State-municipal partnerships for state and state aid highway reconstruction 
1. Priority of transportation capital improvements; 90% of excise tax set aside. 
Of the deposits held by the Maine Municipal Bond Bank pursuant to Title 36, section 
1482, subsection 1, paragraph C, subparagraph (4), 90% must be expended on 
transportation capital improvements in the following order of priority: 
A. Arterial improvements for which the Department of Transportation provides at 
least a 60% match; 
Page I -123LR1908(Ol}-1 
B. 
Major collector improvements for which the Department of Transportation 
provides at least a 50% match; 
C. 
Minor collector improvements for which the Department of Transportation 
provides at least a 33% match; and 
D. Any capital improvement to a public road or bridge within a municipality that has 
a life expectancy of at least 10 years or restores the load-carrying capacity. 
2. Locally administered projects. The Department of Transportation shall provide 
to municipalities the opportunity to administer projects funded under this section upon 
successful completion of a department training and certification program. 
3. Ten percent of excise tax set aside. The balance of 10% of the deposits held by 
the Maine Municipal Bond Bank pursuant to Title 36, section 1482, subsection 1, 
paragraph C, subparagraph (4) may, at the discretion of the municipality, be expended on 
any of the transportation capital improvements set out in subsection 1 or on rail, bus, 
aviation, fem and pedestrian capital improvements or passenger rail, fem and bus 
operating subsidies. 
Sec. 3. 29-A MRS A §409, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
as affected by Pt. B, §5, is amended to read: 
3. Collection fee. Each official shall retain from the use taxes collected a fee of 
$1.25 for each vehicle or truck camper, even if a certificate indicates that no use tax is 
due. 
Retained fees must be transmitted to the Treasurer of State and credited to the Highway 
Fund. 
Taxes collected must be transmitted to the Treasurer of State and credited to the General 
Fund~, except that the following percentages of the tax collected from the tax imposed 
pursuant to Title 36, Part 3 on vehicles and transportation-related items must be deposited 
in the General Highway Fund established in Title 23, section 1651: 
A. On or after July 1, 2007, 4%; 
B. On or after July 1, 2008, 8%; 
C. On or afterJuly 1, 2009, 12%; 
D. On or after July 1, 2010, 16%; and 
E. On or after July 1,2011,20%. 
Deposits made to the General Highway Fund under this subsection must first be 
expended to satisfy all obligations of the State under Title 36, section 1482, subsection 1, 
paragraph C, subparagraph (4). Of the balance remaining, 90% may be expended only on 
state and state aid highway reconstruction, with first priority given to the modernization 
of arterials, second priority to modernization of major collectors and third priority to 
modernization of minor collectors. The remaining 10% of the balance may be expended 
only on rail, bus, aviation, fem and pedestrian capital improvements or passenger rail, 
fem and bus operating subsidies. 
Sec. 4. 30-A MRSA §6006-G is enacted to read: 
§6006-G. Bridge Investment Trust Fund 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Grant anticipation revenue bond" means a grant anticipation revenue vehicle 
debt financing instrument as authorized by 23 United States Code, Section 122. 
B. "Fund" means the Bridge Investment Trust Fund. 
C. 
"Qualified transportation project" means a bridge project for which the 
Department of Transportation has authorized state or federal financial participation or 
a combination of both. 
2. Establishment; purposes. The Bridge Investment Trust Fund is established in 
the custody of the bank as a special fund as provided in this section. The purpose of the 
fund is to provide financial assistance for qualified transportation projects to construct, 
reconstruct, rehabilitate or replace state bridges that meet eligibility requirements of the 
United States Department of Transportation, Federal Highway Administration. Costs of 
qualified transportation projects include, without limitation: 
A. The purchase price or acquisition of any property or interest in those properties or 
other rights necessary or convenient for such projects; 
B. Costs of the study, permitting and engineering of any such projects, including the 
preparation of plans and specifications, surveys and estimates of cost; 
C. 
Costs of construction, reconstruction, paving, repaving, building, alteration, 
repair, restoration, environmental review or remediation, enlargement or other 
improvement, including all labor, materials, machinery, fixtures and equipment, 
including rolling stock or vehicles; 
D. Costs of engineering, architectural, legal and other professional services; 
E. Costs of reserves, insurance, letters of credit or other financial guarantees for 
payment of future debt service on bonds or notes; and 
F. All other costs or expenses necessary or convenient to such projects, including the 
financing or refinancing of the projects. 
3. Grant anticipation revenue vehicle bonds authorized. Notwithstanding any 
other provision of law, the bank shall issue from time to time grant anticipation revenue 
bonds to be repaid solely from annual federal transportation appropriations for funding 
for qualified transportation projects and any matching funds of the State. At the time of 
any grant anticipation revenue bond issuance, the total amount of annual debt service 
payments, including principal and interest, for all issued and outstanding grant 
anticipation revenue bonds may not exceed the obligation authority granted to the State of 
Maine from the United States Department of Transportation, Federal Highway 
Administration for the immediately prior federal fiscal year for the federal bridge 
program. 
A. The bank shall issue grant anticipation revenue bonds from time to time pursuant 
to a resolution adopted by the bank. The grant anticipation revenue bonds issued must 
be secured pursuant to a pledge and certificate issued by the Department of 
Transportation and approved by the State Budget Officer. The pledge and certificate 
must contain provisions that dedicate and pledge receipt of future federal 
transportation funds to secure the payment of the grant anticipation revenue bonds, 
including principal, interest and issuance costs. The terms of the grant anticipation 
revenue bonds, their repayment schedule and other provisions to facilitate their 
creditworthiness are determined by the bank in consultation with the Department of 
Transportation and the State Budget Officer. The pledge and certificate are a part of 
the contract with the holders of the grant anticipation revenue bonds to be authorized. 
B. The grant anticipation revenue bonds must be in the form, bear the date or dates, 
mature at the time or times and have such other terms as determined by the bank and 
approved by the Department of Transportation and the State Budget Officer, except 
that a grant anticipation revenue bond may not mature more than 20 years from the 
date of its issue. 
C. Grant anticipation revenue bonds issued under this section do not constitute a debt 
or liability of the State or of any political subdivision of the State, or a pledge of the 
full faith and credit of the State or of any political subdivision of the State, but are 
payable solely from the funds and revenues pledged for that purpose. 
D. The proceeds from the sale of the grant anticipation revenue bonds must be 
deposited into the appropriate highway fund capital account or other appropriate 
dedicated revenue account. 
4. Power and duty of the bank. The powers and duties of the bank provided in this 
chapter are modified and supplemented as follows. 
A. The bank may assist the State by borrowing money to finance or refinance from 
time to time all or a portion of the costs of Qualified transportation projects and make 
the proceeds of such borrowing available to the Department of Transportation at 
terms agreed upon by the bank, the State Budget Officer and the Department of 
Transportation. The principal of and interest on any bonds or notes issued by the bank 
to finance or refinance the qualified transportation projects must be secured by a 
pledge of funds paid by the United States Department of Transportation, Federal 
Highway Administration and any matching funds of the State as necessary and 
legally available that are allocated for such a purpose on an annual basis by the 
Treasurer of State pursuant to Title 36, section 2903, subsection 5 and Title 36, 
section 3203, subsection 4 and may further be secured by a pledge of any rights, 
grants, reserves, contracts, agreements or other revenues or property as may be 
determined by resolution of the bank. Bonds, notes, leases, agreements or other forms 
of debt or liability entered into or issued by the bank under this section are not in any 
way a debt or liability of the State and do not constitute a loan of the credit of the 
State or create any debt or liability on behalf of the State or constitute a pledge of the 
faith and credit of the State. Each bond, note, lease, agreement or other evidence of 
debt or liability entered into by the bank must contain a statement to the effect that 
the bank is obligated to pay the principal, interest, redemption premium, if any, and 
other amounts payable solely from the sources pledged for that purpose by the bank 
and that neither the faith and credit nor the taxing power of the State is pledged to the 
payment of the principal, interest, premium, charge, fee or other amount on the bond, 
note, lease, agreement or other form of indebtedness. 
B. In addition to all other powers elsewhere granted to the bank, the bank may, with 
respect to qualified transportation projects: 
(1) Acquire title to or an interest in the qualified transportation projects; 
(2) Make, enter into and enforce contracts and all other instruments, including 
any amendments or modifications to the extent permitted under its contract with 
holders of its bonds or notes, with the State, the United States Department of 
Transportation, Federal Highway Administration or any other legal entity in 
furtherance of the purposes of this section; 
(3) Invest any funds or money of the bank not then required for funding costs of 
the qualified transportation projects in the same manner as permitted for the 
investment of funds belonging to the State or held by the Treasurer of State, 
except as otherwise permitted or provided by this section; 
(4) Fix and prescribe any form of application or procedure to be required of the 
State or of any agency, political subdivision, instrumentality or department of the 
State with respect to the qualified transportation projects and fix the terms and 
conditions of the qualified transportation projects and enter into agreements with 
the State or any agency, political subdivision, instrumentality or department of 
the State in connection with the qualified transportation projects; and 
(5) 
Lease the qualified transportation projects to the State or any agency, 
political subdivision, instrumentality or department of the State to further the 
purposes of this section, as long as the obligation of the State or of any such 
agency, political subdivision, instrumentality or department to make any rental or 
other payments is considered executory only to the extent of funds paid by the 
United States Department of Transportation and any matching funds of the State 
as necessary and legally available that are allocated for such a purpose on an 
annual basis by the Treasurer of State, as long as the liability on account of the 
State or any such agency, political subdivision, instrumentality or department is 
not incurred by the State or any such agency, political subdivision, 
instrumentality or department beyond the money available for that purpose. 
5. 
Pledge of federal highway funds. 
The Department of Transportation is 
authorized to transfer, assign or pledge any or all of the bridge program funds paid to it, 
directly or indirectly, by the United States Department of Transportation, Federal 
Highway Administration with respect to the qualified transportation projects, together 
with any matching funds of the State as necessary and legally available that are allocated 
for such a purpose on an annual basis by the Department of Transportation in its sole 
discretion. Any such pledge does not constitute a debt or liability on behalf of, a loan of 
the credit of or a pledge of the faith and credit of the State or of any political subdivision 
of the State. A decision by the Department of Transportation not to allocate such federal 
transportation funds or state matching funds as necessary and legally available in any 
given fiscal year for the payment of such bonds or notes or related costs and expenses 
may not be construed to constitute an action impairing any contract entered into by the 
bank under this section. 
6. 
Contracts are subject to continuing federal appropriations of federal 
transportation funds. 
Every contract relating to the issuance of bonds or notes to 
finance all or a part of the costs of qualified transportation projects must provide that all 
financial obligations of the State or of any agency, political subdivision, instrumentality 
or department of the State in regard to the portion of the principal of and interest on the 
bonds or notes and the related costs and expenses that may be paid from federal 
transportation funds pursuant to federal law and any agreement between the United States 
Department of Transportation, Federal Highway Administration or any agency of the 
Federal Highway Administration and the Department of Transportation that is or will be 
the initial recipient of such federal transportation funds are subject to continuing federal 
appropriations of federal transportation funds at a level equal to or greater than the 
amount needed to pay the federal share of principal, interest and costs and expenses on 
any such bonds or notes. 
7. State agency powers. Each agency, instrumentality, department or other political 
subdivision of the State, for the pumose of aiding and cooperating in the financing, 
construction, operation or maintenance of qualified transportation proj ects, has the power: 
A. To sell, lease, loan, donate, grant, convey, pledge, assign or otherwise transfer to 
the bank any real or personal property or interests in any real or personal property; 
and 
B. To enter into agreements, including loan and pledge agreements, with any person 
for the joint financing, construction, operation or maintenance of the qualified 
transportation projects and to agree to make payments, without limitation as to 
amount except as set forth in the agreement, from revenues received in one or more 
fiscal years by the Department of Transportation or with any person to defray the 
costs of the financing, construction, operation or maintenance of the qualified 
transportation projects. 
To assist in the financing, construction, operation or maintenance of the qualified 
transportation project, any governmental unit or political subdivision may, by contract, 
pledge, assign or otherwise transfer to the Department of Transportation or otherwise as 
directed by the bank all or a portion of federal transportation funds paid to the 
governmental unit or political subdivision or the revenues from any other legally 
available source. 
8. Exception to prohibited acts and limitation of powers. Notwithstanding: 
A. Section 5958, the bank may make loans to the State or any agency, political 
subdivision, instrumentality or department of the State in connection with the 
financing of qualified transportation projects; 
B. Section 6003, the bank may issue its bonds from time to time in any principal 
amounts that it considers necessary to provide funds for any of the pumoses 
authorized by this section, including the financing or refinancing of all or a portion of 
the costs of qualified transportation projects; and 
C. Section 6019, the bank may enter into any agreements or contracts with any 
commercial banks, trust companies or banking or other financial institutions within or 
outside the State that are necessary, desirable or convenient in the opinion of the bank 
to provide any other services to the bank to assist the bank in effectuating the 
purposes of this section. 
9. Receipt of federal appropriation money. The Treasurer of State may receive 
from the Federal Government any amount of money as appropriated, allocated, granted, 
turned over or in any way provided for the purposes of this section. In connection with 
the financing of qualified transportation projects, these amounts must be credited to and 
deposited in the Highway Fund and are available to the bank. 
10. Remedies of holders of bonds and notes. In addition to all other rights or 
remedies set forth in section 6023, subsection 2, the trustee appointed pursuant to that 
section may, and upon written request of the holders of 25% in principal amount of all 
bonds then outstanding that have been issued to finance or refinance all or a portion of the 
costs of qualified transportation projects shall, in the trustee's or the bank's own name, by 
mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the 
bondholders, including the right to require the bank to collect payments and other 
amounts and to collect interest and amortization payments under agreements payable to 
the bank and pledged to payment of the bonds, adequate to carry out any agreement as to, 
or pledge of, those payments and other amounts and of :;uch interest and amortization 
payments and to require the bank to carry out any other agreements with the bondholders 
and to perform its duties under this section. 
Sec. 5. 30-A MRSA §6006-H is enacted to read: 
§6006-H. Transportation Investment Trust Fund 
1. 
Establishment; administration. The Transportation Investment Trust Fund, 
referred to in this section as "the fund," is established in the custody of the bank as a 
special fund as provided in this section. 
A. The purpose of the fund is to provide financial assistance under subsection 2 for 
the planning, design, acquisition, reconstruction and rehabilitation of transportation 
capital improvements, excluding bridges, and operating subsidies for passenger rail, 
ferries and buses. 
B. The bank shall administer the fund. The fund must be invested in the same 
manner as permitted for investment of funds belonging to the State or held in the 
State Treasury. The fund must be established and held separate from any other funds 
or money of the State or the bank and used and administered exclusively for the 
purpose of this section and Title 23, section 1822. 
The fund consists of the 
following: 
(1) Sums that are transferred to the fund from time to time by the Treasurer of 
State pursuant to Title 29-A, section 409, subsection 3 and Title 36, section 
1952-A; 
(2) Sums that are transferred to the fund from time to time by municipalities 
pursuant to Title 36, section 1482, subsection 1, paragraph C, subparagraph (8); 
(3) Principal and interest received from the repayment of loans made from the 
fund; 
(4) Capitalization grants and awards made to the State or an instrumentality of 
the State by the Federal Government for any of the purposes for which the fund 
has been established. These amounts must be paid directly into the fund without 
need for appropriation by the State; 
(5) Interest earned from the investment of fund balances; 
(6) 
Private gifts, bequests and donations made to the State for any of the 
purposes for which the fund has been established; 
(7) The process of notes or bonds issued by the State for the purpose of deposit 
in the fund; 
(8) The proceeds of notes or bonds issued by the bank for the purpose of deposit 
in the fund; and 
(9) Other funds from any public or private source received for use for any of the 
purposes for which the fund has been established. 
2. Uses. The fund may be used for one or more of the following purposes: 
A. To make grants and loans to municipalities under this section; 
B. To guarantee or insure, directly or indirectly, the payment of notes or bonds 
issued or to be issued by a municipality for the purpose of financing any capital 
improvement described in Title 23, section 1822; 
C. To guarantee or insure, directly or indirectly, funds established by municipalities 
for the purpose of financing any capital improvements described in Title 23, section 
1822; 
D. To invest available fund balances and to credit the net interest income on those 
balances to the fund; 
E. To invest as a source of revenue or security for the payment of principal and 
interest on general or special obligations of the bank if the proceeds of the sale of the 
obligations have been deposited in the fund or loaned to eligible participants in the 
programs financed with the fund, or as a source of revenue to subsidize municipal 
loan payment obligations; and 
F. To pay the costs of the bank associated with the administration of the fund and 
projects financed by it as long as no more that 2% of the aggregate of the highest 
fund balance in any fiscal year is used for these purposes. 
3. Establishment of accounts. The bank may establish accounts and subaccounts 
within the fund as it determines desirable to effectuate the purposes of this section, 
including, but not limited to, accounts to segregate a portion of the fund for grants and as 
security for bonds issued by the bank for deposit in the fund and to be invested for the 
benefit of specified projects receiving financial assistance from the fund. 
Sec. 6. 36 MRSA §1482, sub-§l, ~C, as amended by PL 2001, c. 671, §32, is 
further amended to read: 
C. 
For the privilege of operating a motor vehicle or camper trailer on the public 
ways, each motor vehicle, other than a stock race car, or each camper trailer to be so 
operated is subject to excise tax as follows, except as specified in subparagraph (3): a 
sum equal to 24 mills on each dollar of the maker's list price for the first or current 
year of model, 17 112 mills for the 2nd year, 13 112 mills for the 3rd year, 10 mills for 
the 4th year, 6 112 mills for the 5th year and 4 mills for the 6th and succeeding years. 
The minimum tax is $5 for a motor vehicle other than a bicycle with motor attached, 
$2.50 for a bicycle with motor attached, $15 for a camper trailer other than a tent 
trailer and $5 for a tent trailer. The excise tax on a stock race car is $5. 
(1) On new registrations of automobiles, trucks and truck tractors, the excise tax 
payment must be made prior to registration and is for a one-year period from the 
date of registration. 
(2) Vehicles registered under the International Registration Plan are subject to 
an excise tax determined on a monthly proration basis if their registration period 
is less than 12 months. 
(3) For commercial vehicles manufactured in model year 1996 and after, the 
amount of excise tax due for trucks or truck tractors registered for more than 
26,000 pounds and for Class A special mobile equipment, as defined in Title 29-
A, section 10 1, subsection 70, is based on the purchase price in the original year 
of title rather than on the list price. 
Verification of purchase price for the 
application of excise tax is determined by the initial bill of sale or the state sales 
tax document provided at point of purchase. The initial bill of sale is that issued 
by the dealer to the initial purchaser of a new vehicle. 
(4) For an urban compact municipality as defined in Title 23, section 754, 
subsection 2, the following percentage of the tax collected from the tax imposed 
pursuant to this paragraph must be deposited in the Transportation Investment 
Trust Fund at the Maine Municipal Bond Bank in the name of and solely for the 
use of that municipality as set forth in Title 23, section 1822: 
(a) On or after July 1,2007,4%; 
(b) On or after July 1,2008,8%; 
(c) On or after July 1, 2009,12%; 
Cd) On or after July 1,2010,16%; and 
(e) On or after July 1, 2011, 20%. 
Upon monthly certification by the Maine Municipal Bond Bank, the Treasurer of 
State shall deposit in the Transportation Investment Trust Fund at the Maine 
Municipal Bond Bank in the name of the municipality an amount from the General 
Highway Fund from proceeds derived from section 1952-A and Title 29-A, section 
409, subsection 3 that is equal to the municipal deposit and for the sole use of the 
municipality as set forth in Title 23, section 1822. If the Treasurer of State fails to 
make the deposit required under this section after 2 months of receipt of the monthly 
certification, the municipality is entitled to withdraw any unmatched funds. 
For motor vehicles being registered pursuant to Title 29-A, section 405, subsection 1, 
paragraph C, the excise tax must be prorated for the number of months in the 
registration. 
Sec. 7. 36 MRSA §1952-A, as amended by PL 2005, c. 218, §26, is further 
amended to read: 
§1952-A. Payment of tax on vehicles and recreational vehicles 
The tax imposed by this Part on the sale or use of any vehicle, snowmobile, all-terrain 
vehicle or watercraft must, except where the dealer has collected the tax in full, be paid 
by the purchaser or other person seeking registration of the vehicle, snowmobile, alI-
terrain vehicle or watercraft at the time and place of registration. In the case of vehicles, 
the tax must be collected by the Secretary of State and transmitted to the Treasurer of 
State as provided by Title 29-A, section 409. In the case of watercraft, snowmobiles and 
all-terrain vehicles, the tax must be collected by the Commissioner of Inland Fisheries 
and Wildlife and transmitted to the Treasurer of State as provided by Title 12, sections 
l3002 to l3005. If the dealer collects the tax due under this Part on the sale of vehicles, 
the following percentage of the tax collected from the tax imposed pursuant to Part 3 on 
vehicles and transportation-related items must be deposited in the General Highway Fund 
established in Title 23, section 1651: 
1. 2007. On or afterJuly 1, 2007, 4%; 
2. 2008. On or after July 1, 2008, 8%; 
3. 2009. On or after July 1, 2009,12%; 
4. 2010. On or after July 1, 2010, 16%; and 
5. 2011. On or after July 1, 2011, 20%. 
Deposits made to the General Highway Fund under this section may be used only for 
the purpose of state and state aid highway reconstruction with first priority given to the 
modernization of arterials, second priority to modernization of major collectors and third 
priority to modernization of minor collectors and for permitted uses under Title 23, 
section 1822. The remaining 10% of the balance may be expended only on rail, bus, 
aviation, ferry and pedestrian capital improvements or passenger rail, ferry and bus 
operating subsidies. 
Sec. 8. 36 MRSA §2903, sub-§5 is enacted to read: 
5. Deposit to trust fund. Beginning on January 1,2008, the Treasurer of State shall 
deposit monthly in the Bridge Investment Trust Fund established in Title 30-A, section 
6006-G and administered by the Maine Municipal Bond Bank 7.5% of the excise tax 
imposed under subsection 1. 
Sec. 9. 36 MRS A §3203, sub-§4, as enacted by PL 1997, c. 738, § 10, is amended 
to read: 
I 
4. Highway Fund. All taxes and fines collected under this chapter must be credited 
to the Highway Fund, except that beginning January 1, 2008 the Treasurer of State shall 
deposit monthly in the Bridge Investment Trust Fund established in Title 30-A, section 
6006-G and administered by the Maine Municipal Bond Bank 7.5% of the excise tax 
imposed under subsection 1. 
Sec. 10. Legislative purpose. The Legislature declares that it is the purpose of 
this Act to comprehensively address the State's transportation capital improvement needs 
by: 
1. Providing stable, reliable, long-term funding supported by transportation user fees 
and taxes; 
2. Setting priorities that maximize the benefit to transportation users; 
3. Creating intergovernmental and public-private partnerships that expand available 
financial resources; 
4. Instituting actions to reduce costs; and 
5. 
Establishing quantifiable performance measures and reporting procedures to 
enhance accountability and guide the enactment of remedial policies. 
Sec. 11. Extraordinary corridor investment program. The Department of 
Transportation shall establish priorities and financing plans for significant new capacity 
projects and extraordinary bridge replacement, removal or rehabilitation projects. The 
department shall take into consideration all available funding options including federal 
funds, bonds and public-private partnerships. 
The department shall consider at a 
minimum partnerships with the Maine Turnpike Authority, the Maine Port Authority and 
the Northern New England Passenger Rail Authority. 
The department shall identify significant new capacity projects, which must include 
at least the following: Aroostook North-South Highway; East-West Highway; Gorham 
connector; 1-295 South Portland to Brunswick capacity improvements; 1-295 Brunswick 
to Gardiner rehabilitation; 1-95 Bangor capacity and modernization improvements; 
Lewiston-Auburn 1-95 to downtown connector; Portland to Brunswick passenger rail; 
Sanford connector; Wiscasset bypass; and the department's three-port strategy including 
the ports of Eastport, Searsport and Portland. 
The department shall also identify extraordinary bridge replacement, removal or 
rehabilitation projects, which must include at least the following: Carlton Bridge in Bath; 
Route 1 West approach in Bath; Beals Island Bridge in Beals; Knickerbocker Bridge in 
Boothbay; Frank J. Wood Bridge in Brunswick; Sibley Pond Bridge in Canaan; 
Aroostook River Bridge in Caribou; Deer Isle-Sedgwick Bridge in Deer Isle; 
International Bridge in Fort Kent; Turner Center Bridge in Greene; Bailey Island Bridge 
in Harpswell; Penobscot River Bridge in Howland; Piscataquis River Bridge in Howland; 
Memorial Bridge in Kittery; Sarah Mildred Long Bridge in Kittery; Covered Bridge in 
Norridgewock; Martin's Point Bridge in Portland; Waldo-Hancock Bridge in Prospect; 
Maine Kennebec Bridge in Richmond; Kennebec River Bridge in Skowhegan; Veterans 
Memorial Bridge in South Portland; and New Bridge in York. 
The department shall submit a report that includes priorities and financing plans for 
significant new capacity projects and extraordinary bridge replacement, removal or 
rehabilitation projects to the Joint Standing Committee on Transportation by January 15, 
2008. 
SUMMARY 
This bill sets forth a comprehensive transportation capital improvement program 
based upon measurable goals matched with long-term financing. 
Under the goals 
established in this bill, within 20 years 1,900 miles of state highways that have not been 
reconstructed in over 50 years will be modernized and roughly one-third of the State's 
aging bridge inventory will be replaced or substantially rehabilitated. 
A portion of 
existing highway user fees including motor fuel taxes, sales taxes on vehicles and 
transportation-related items and motor vehicle excise taxes raised in urban compact 
communities are set aside in trust funds established under the authority of the Maine 
Municipal Bond Banle 
Any municipal excise tax revenues transferred to the bond bank must be held in an 
account in the name of the contributing municipality in the Transportation Investment 
Trust Fund and be matched by the State. If the State fails to make its match commitment, 
unmatched municipal funds may be withdrawn. 
Further, match through the Maine 
Department of Transportation is set at 60% for arterial reconstruction, 50% for major 
collector reconstruction and 33% for minor collector reconstruction. 
If the Maine 
Department of Transportation declines to provide a match, the participating municipality 
may expend the funds held by the bond bank for any public road improvement within the 
municipality. The municipality is granted the option to administer projects undertaken 
within its boundaries. The municipality is granted discretion to use up to 10% of funds 
for alternative modes of transportation. 
There is also created a Bridge Investment Trust Fund within the bond bank 
capitalized by a 7.5% set aside of motor fuel taxes and Federal Highway Administration 
Bridge Replacement and Rehabilitation Program funds. Authority is granted to undertake 
grant anticipation revenue bond financing for bridge capital improvements. 
Additionally, the bill requires that the Maine Department of Transportation establish 
and provide to the Legislature priorities and financing plans for significant new capacity 
projects and extraordinary bridge projects.