An Act Regarding the Accounting Procedure for Certain State Programs
Maine Legislature, Session 123, LD 0425
Committee: Taxation
Sponsors: HOLMAN, CROSTHWAITE, FLOOD, MILLETT, ROBINSON, TARDY, MILLS, NASS
Amends: 5 MRSA §1547, 5 MRSA §1663, 36 MRSA §6203-A, 36 MRSA §6203-B, 36 MRSA §700-B, 36 MRSA §6656

Legislative Document 
No. 425 
H.P.341 
House of Representatives, January 29, 2007 
An Act Regarding the Accounting Procedure for Certain State 
Programs 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative HOLMAN of Fayette. 
Il/~ 
171.7lPc~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CROSTHWAITE of Ellsworth, FLOOD of Winthrop, 
MILLETT of Waterford, ROBINSON of Raymond, TARDY of Newport, Senators: MILLS of 
Somerset, NASS of York. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 5 MRSA §1547, sub-§l, as enacted by PL 1999, c. 731, Pt. RRR, §1 
and amended by PL 2003, c. 600, §4, is further amended to read: 
1. Office of the State Controller shall complete financial statements, notes and 
other documentation. Following the official close of the State's fiscal year ending on 
June 30th, the Department of Administrative and Financial Services, Office of the State 
Controller, under the direction of the State Controller, shall prepare and complete all 
financial statements, notes and other documentation as considered necessary by the State 
Controller in accordance with all governing rules, statutes and generally accepted 
accounting principles. The report must identify all nonexpenditure payments that are 
accounted for as an offset to revenue. This information must be made available to the 
Department of Audit no later than November 1st of that year. 
Sec. A-2. 5 MRSA §1663 is amended to read: 
§1663. Scope of budget 
The budget of the State Government sHall must present a complete financial plan for 
each fiscal year of the ensuing biennium. It sHall must set forth all proposed expenditures 
for the administration, operation and maintenance of the departments and agencies of the 
State Government; all nonexpenditure payments that are accounted for as an offset to 
revenue; all interest and debt redemption charges during each fiscal year~ and all 
expenditures for capital projects to be undertaken and executed during each fiscal year of 
the biennium. In addition thereto, the state budget sHall must set forth the anticipated 
revenues of the State Government and any other additional means of financing 
expenditures proposed for each fiscal year of the biennium. 
PART B 
Sec. B-1. 36 MRSA §6203-A, as enacted by PL 2003, c. 673, Pt. BB, §2, is 
repealed. 
Sec. B-2. 36 MRSA §6203-B is enacted to read: 
§6203-B. Claim to be paid from General Fund 
The State Tax Assessor shall certify that the claimant is eligible for reimbursement 
under this chapter. The assessor shall determine the benefit for each claimant and shall 
pay the benefit from General Fund appropriations for the Maine Residents Property Tax 
Program. 
Sec. B-3. 36 MRS A §6221 is enacted to read: 
§6221. Financial projections report 
1. Report to Leeislature. By January 15th annually, the State Tax Assessor shall 
submit to the joint standing committee of the Legislature having jurisdiction over 
appropriations and financial affairs and the joint standing committee of the Legislature 
having jurisdiction over taxation matters a report that contains the following information 
with regard to the projected cost of benefits under this chapter: 
A. The projected costs of benefits for the current biennium and ensuing 2 biennia: 
and 
B. The economic factors and underlying assumptions that contribute to the projected 
costs. 
Sec. B-4. Transfer; circuit breaker reserve. The State Controller shall transfer 
any balance in the circuit breaker reserve account on June 30, 2009 to General Fund 
undedicated revenue within the individual income tax category. 
Sec. B-5. 
Effective date. Those sections of this Part that repeal the Maine 
Revised Statutes, Title 36, section 6203-A and enact Title 36, section 6203-B take effect 
July 1,2009. 
PART C 
Sec. C-l. 36 MRSA §700-B, as enacted by PL 2005, c. 623, §1, is amended to 
read: 
§700-B. Certification and payment of claim 
1. 
Certification. 
By June 30, 2009 and each subsequent year, the State Tax 
Assessor shall certify to the State Controller amounts certified to the Treasurer of State as 
reimbursements to be paid to municipalities during the fiscal year under section 694, 
subsection 5. The Treasurer of State shaH certify to the State Controller payments due 
under section 700-A. 
2. Payment. THe State Controller SHall transfer amounts certified under subsection 1 
to the Business Equipment Tax Reimbursement resef\'e account establiShed, maintained 
and administered by the State Controller from the General fund undedicated revenue 
within the individual income tax category after the reduction for the tranSfef to the Looal 
GO't'ernment fund required by Title 30 A, section 5681, sl:lbseetion 5. The assessor and 
the Treasurer of State shall pay amounts required under section 694, subsection 5 and 
section 700-A from General Fund appropriations for municipal business equipment tax 
reimbursement. 
Sec. C-2. 36 MRSA §6656, sub-§l, as enacted by PL 2005, c. 618, §20 and 
affected by §22, is amended to read: 
1. Reimbursement claim. Notwithstanding any other provision of law, except as 
provided in section 6652 and section 6662, upon receipt of a timely and properly 
completed claim for reimbursement, the State Tax Assessor shall certify that the claimant 
is eligible for reimbursement under this chapter. The assessor shall determine the benefit 
for each claimant and shall eertify to the State Controller the amounts to be traAsrerred to 
the Business Equipment TIDi: Reimbursement resen'e aeeount established, maintained and 
administered by the State Controller from General Fund undedieated revenue within the 
indiyidual iReome tax eategory pay the benefit from General Fund appropriations for 
business equipment tax reimbursement. 
Sec. C-3. Transfer; Business Equipment Tax Reimbursement reserve 
account. The State Controller shall transfer any balance in the Business Equipment Tax 
Reimbursement reserve account on June 30, 2009 to General Fund undedicated revenue 
within the individual income tax category. 
Sec. C-4. Effective date. Those sections of this Part that amend the Maine 
Revised Statutes, Title 36, section 700-B and Title 36, section 6656 take effect July 1, 
2009. 
SUMMARY 
This bill provides more transparency to the appropriations process by returning the 
funding mechanism for the Maine Residents Property Tax Program and business 
equipment tax reimbursement to General Fund appropriations rather than an offset to 
General Fund revenue within the individual income tax category beginning in the 2010-
2011 biennium. It also requires the State Tax Assessor to issue an annual financial report 
for the Maine Residents Property Tax Program at the same time as a similar existing 
report is required for the Business Equipment Tax Reimbursement program. 
This bill requires the State Controller's official annual report of the State and the state 
budget to specifically identify all nonexpenditure payments that are accounted for as an 
offset to revenue to increase access to the information by the public.