An Act To Create Incentives for the Consolidation ofMun~cipal Services
Maine Legislature, Session 124, LD 1220
Sponsors: MI LLS
Amends: 30-A MRSA §6201, 30-A MRSA §6205, 30-A MRSA §6207-A

MAINE STATE LEGISLATURE 
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STATE LAvv LIBRARY 
AUGUSTA, MJ-WVr-
CORRECTED COPY 
March 26, 2009 
(Please Destroy any copy of 
L.D. 1220 that does not have 
the notation "Cor~ected Copy") 
'124th MAINE LEGISLATURE 
Legislative Document 
No. 1220 
S.P.453 
In Senate, March 26, 2009 
An Act To Create Incentives for the Consolidation ofMun~cipal 
Services 
Reference to the Committee on State and'Local Government suggested and ordered printed. 
Presented by Senator MI LLS of Somerset. 
Prillll!J (In rl!cydl!d papl!r 
9t!}CJj3uB~ 
JOY J. O'BRIEN 
Secretary of the Senate . 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §6201, sub-§l-A is enacted to read:' 
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I-A. 
Challenge grant. 
"Challenge grant" means a grant award from the fund 
pursuant to section 6207-A to cover eligible costs of a qualifying project. 
Sec. 2. 30-A MRSA §6201, sub-§5, as enacted by PL 2005, c. 266, §2, IS 
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amended to read: 
5. Eligible costs. "Eligible costs" means the actual and direct expenses incurred in 
implementing a cooperative services grant ef" a planning grant awarded under section 
6208 or a challenge grant awarded under section 6207-A, including expenses incurred in 
connection with the following activities for cooperative services grants aREi" planning 
grants and challenge grants. 
A. Eligible costs for a planning grant include the expense of: 
(1) Studies to examine alternative methods of achieving collaboration, including 
those adopted by other municipaliiities; 
15(2) 
Cost-~enefit studies; and 
(3) Facilitation of community meetings and public outreach and education. 
B. Eligible costs for a cooperative services grant includes include the expense of: 
(1) Execution and implementation of an interlocalagreement under chapter 115, 
a tax base sharing arrangement or another regional government mechanism for 
achieving collaboration; 
(2) Joint strategic planning or comprehensive or capital investment planning; 
(3) Public outreach and education; 
(4) Collaboration or consolidation of offices or serVices; 
(5) 
Professional services, such as those provided by attorneys, consultants, 
facilitators and architects; and 
(6) Administrative services and costs, such as photocopying, printing, telephone 
service and travel costs. 
C. Eligible costs for a challenge grant include the expense of: 
(1) 
The start-up costs of consolidating the public works of multiple 
municipalities under integrated services; and 
(2) Administration and delivery of integrated services. 
Admi'nistrative and other costs of ongoing operations that would otherwise be budgeted 
by a municipality, county or regional government subdivision are not eligible costs 
except for a grant under paragraph C. 
Sec. 3. 30-A MRSA §6201, sub-§6-A is enacted to read: 
Page I - 124LRI837(OI)-1 
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6-A. Integrated services. "Integrated services" means public works provided to 3 or 
more municipalities by one administration under the direction of a county or a manager 
who develops a budget for and implements the delivery of the public works and'is hired 
by and reports to a board composed of one member from each municipality receiving the 
intcgrated services. 
Sec. 4. 30-A MRSA §6201, sub-§7-A is enacted to read: 
7-/\.. Public works. "Public works" means. services provided by a local or regional 
government relating to the construction, repair and maintenance of public roads, bridges 
and sidewalks and associated lighting, stomi water and traffic control systems within the 
jurisdiction of the local or regional government. 
Sec. 5. 30-A MRSA §6205, first ~, as enacted by PL 2005, c. 266, §2, IS 
amended to read: 
In accordance with the request for proposals issued by the department under section 
6209, an eligible applicant may apply for a planning grant eF~ a cooperative services grant 
or a challenge grant from the fund. In order to be eligible for a planning grant or a 
cooperative services grant, an eligible applicant must demonstrate in its application that 
the project for which it seeks a grant will be undertaken in cooperation with one or more 
municipalities, counties or regio~al government subdivisions. In order to qualify for a 
challenge grant, an eligible applicant must demonstrate in its application that the project 
for which it seeks a grant will be undertaken in cooperation with 3 or more 
municipalities. 
Sec .. 6 .. 30-A MRSA §6207-A is enacted to read: 
§6207-A. Challenge grant funding 
1. Challenge grants. The department shall award a challenge grant to an eligible 
applicant to consolidate into integrated services substantially all of the public works of 3 
or more adjacentinunicipalities in accordance with a request for proposals issued by the 
department under section 6209. 
2. Basic funding. For each of the first 3 fiscal years under the challenge grant, the 
department shall award from the fund to the administration of the integrated services an 
amount equal to $ I times the combined population of the municipalities receiving the 
integrated services to be used to administer and deliver the integrated services. 
3. County funding. For each of the first 6 years under the challenge grant, if a 
qualifying project ,consolidates substantially all of the public works of at least 3 
rriunicipalities that collectively represent more than 60% of the population of the county 
in which the municipalities· are located into integrated services administered by the 
county, the department shall award from the fund to the county an amount equal to $3 
tirries the population of the municipalities receiving the integrated services to be used in 
the administration and delivery of the integrated services. 
4. Adjustments. Ifa participating munidpalitytenninates or a new municipality 
begins participation in integrated services awarded a challenge grant'under this chapter, 
then the amount awarded under subsection 2 or 3 must be adjusted for the -resulting 
population number for the year in which the municipality tenninated -or began 
participation. 
5. Successive grant. A challenge grant under subsection 3 may be awarded in 
succession to a grant under subsection 2 for the. same integrated services, but the first 3 
years of the grant under subsection 3 -must be reduced by the amounts awarded in the 
respective :3 years of the grant awarded under subsection 2 .. 
SUMMARY 
This bill creates a challenge grant to be awarded by the Department of Administrative 
and Financial Services from the Fund for the Efficient Delivery of Local and Regional 
Services for the start-up costs and first 3 years of the integration of public works services 
of 3 or more municipalities or 6 years if the municipalities comprise over 60% of the 
population of the county in which the -municipalities are lo.cated and the county 
administers the integrated services. 
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