An Act To Sustain Island Communities
Maine Legislature, Session 123, LD 1164
Committee: Transportation
Sponsors: DAMON, PINGREE, SAVAGE, MacDONALD, MARLEY, MAZUREK, RECTOR
Amends: 23 MRSA §4408

Legislative Document 
No. 1164 
S.P.412 
March 7,2007 
An Act To Sustain Island Communities 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Senator DAMON of Hancock. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative PINGREE of North Haven and Senator: SAVAGE of Knox, 
Representatives: MacDONALD of Boothbay, MARLEY of Portland, MAZUREK of 
Rockland, RECTOR of Thomaston. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 23 MRSA §4408 is enacted to read: 
§4408. Private ferry seryice payment program 
The Department of Transportation shall establish a private ferry service payment 
program for the purpose of providing financial assistance to private ferry services. For 
purposes of this section, "private ferry service" means a privately contracted vessel or 
company that provides year-round service to islands with year-round residents, referred to 
in this section as "year-round island communities," not otherwise served by the Maine 
State Ferry Service. The private ferry service payment program is governed by the 
provisions of this section. 
1. 
Application. 
A private ferry service may apply to the Department of 
Transportation for financial assistance if: 
A. 
At least 50% of the private ferry service's operating budget is supported by 
passenger fares, freight or mail revenues or a combination thereof; 
B. The year-round island community served has supported at least 10% of the private 
ferry service's operating budget through tax dollars; and 
7 
C. When more than one private ferry service serves an island, the year-round island 
community designates one private ferry service to be eligible for the Department of 
Transportation's private ferry service payment program. 
2. Use of funds. Funds received pursuant to this section may be applied to the 
private ferry service's operating budget only and are limited to costs for labor, insurance, 
taxes, fuel, supplies, repairs and maintenance, interest only on debt service for capital 
expenditures and employee retirement benefits. 
3. Program funding cap. The annual private ferry service payment for each private 
ferry service may not exceed $1,000 times the total year-round population of the year-
round island community as certified by the year-round island community based on the 
previous year's census or 30% of the private ferry service's operating budget, whichever 
is greater. 
4. Distribution of funds. A private ferry service must apply to the Department of 
Transportation to be eligible to receive funds under this section. 
5. Rules. The Commissioner of Transportation shall adopt rules to implement this 
section. Rules adopted pursuant to this subsection are major substantive rules as defined 
in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill provides that privately contracted vessels or companies that provide 
scheduled year-round ferry service to year-round island communities and that have been 
Page I - 123LR1914(Ol)-1 
I 
designated by the communities they serve may be eligible for Department of 
Transportation financial assistance based on certain conditions and terms.