An Act To Restore Maine's Secondary Roads
Maine Legislature, Session 125, LD 1367
Committee Amendment CA_A_S452 (Senate)
Amends: 23 MRSA §754, 23 MRSA §1654, 23 MRSA §1654-A, 23 MRSA §1801, 23 MRSA §1803-B, 23 MRSA §1803-C, 23 MRSA §1804, 23 MRSA §4210-C, 30-A MRSA §5721-A

COMMITTEE AMENDMENT" A. " to S.P. 421, L.D. 1367, Bill, "An Act To 
Restore Maine's Secondary Roads" 
Amend the bill by striking out all of section 1. 
Amend the bill by striking out all of sections 3 to 7 and inserting the following: 
'Sec. 3. 23 MRSA §754, sub-§l, as enacted by PL 1999, c. 473, Pt. C, §3, is 
amended to read: 
1. Jurisdiction. Except as otherwise provided, all state and state aid highways 
within compact areas of urban compact municipalities, as defined in subsection 2, as 
determined by the department must be maintained in good repair by the town in which 
the highways are located at the expense of the town. Municipalities must be notified one 
year in advance of changes in compact or built-up sections that place additional 
maintenance responsibilities on the municipalities. Municipalities may waive the 
requirement of the one-year notice. When any town neglects to maintain the highways 
within 14 days after notice given its municipal officers by the department, the department 
may proceed to make necessary repairs to that way, which must be paid for by the State 
and the cost for the repairs must be withheld from funds due the town under the Urban 
Rural Initiative Local Road Assistance Program, established in chapter 19, subchapter ¥l 
Q. The amounts collected from these towns must be added to the fund for maintenance of 
state and state aid highways. 
Sec. 4. 23 MRSA §1654, as amended by PL 1985, c. 737, Pt. B, §21, is repealed. 
Sec. 5. 23 MRSA §1654-A is enacted to read: 
§1654-A. Transfers from Highway Fund unallocated surplus 
At the close of each fiscal year, the State Controller shall transfer to the Department 
of Transportation, Secondary Road Program Fund, established in section 1803-C and 
referred to in this section as "the fund," the uncommitted balance in the Highway Fund 
unallocated surplus account. The amount transferred to the fund, when added to previous 
transfers to the fund for the fiscal year in which the uncommitted balance is transferred, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A "to S.P. 42 J, L.D. J 367 
may not exceed the program funding cap provided in section 1803-C, subsection 4. Any 
remaining uncommitted balance in the Highway Fund after the transfer to the fund must 
be transferred to the Department of Transportation, Highway and Bridge Capital 
program. The Commissioner of Transportation may allot these funds by financial order 
upon the recommendation of the State Budget Officer and the approval of the Governor. 
The transferred amounts are considered adjustments to allocations. Within 30 days after 
approval of the financial order, the Commissioner of Transportation shall provide to the 
joint standing committee of the Legislature having jurisdiction over transportation matters 
a report detailing the financial status of the Department of Transportation, Highway and 
Bridge Capital program. 
For the purposes of this section, "uncommitted balance in the Highway Fund 
unallocated surplus account" or "uncommitted balance" means the amount remaining in 
the account at the close of the fiscal year after the deduction of all allocations, budgeted 
financial commitments and adjustments considered necessary by the State Controller. 
The State Controller shall include in the State Controller's official annual financial 
report at the close of each fiscal year a statement showing all transfers made from the 
Highway Fund unallocated surplus account for the fiscal period. 
Sec. 6. 23 MRSA §1801, as repealed and replaced by PL 1999, c. 473, Pt. D, §1, 
is amended to read: 
§1801. Findings and purpose 
Municipal transportation assistance funds must be targeted to the capital needs of 
rural roads and highways and must also reflect urban maintenance responsibilities on 
state and state aid roadways. 
Municipal transportation assistance funds must be adjusted according to increases or 
decreases in Highway Fund resources available for transportation. 
Responsibility for decisions regarding maintenance and improvement of roads must 
follow the principle that roads that primarily serve regional or statewide needs must be 
the State's responsibility, roads that primarily serve local needs must be a local 
responsibility and roads that primarily serve as minor collector routes and major collector 
routes may be improved through a partnership between municipalities and the State. 
The Legislature recognizes that without municipal participation the State has few 
resources to make necessary capital improvements to state aid minor collector highways 
and state aid major collector highways. 
The purpose of the Urban Rural Initiative Local Road Assistance Program 
established in this subchapter is to provide equitable financial assistance to communities 
for their use in improving local roads, and maintaining state roads in urban compact 
areas. The purpose of the Secondary Road Program Fund established in this subchapter 
is to establish a partnership between communities and assisting the State in making 
capital improvements to state aid minor collector highways and state aid major collector 
highways. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
In order to meet the purposes set out in this section, the Urban Rural Initiative Local 
Road Assistance Program has a Rural Road Initiative and an Urban Compact Initiative 
rural road assistance and urban compact assistance funding as components. 
Sec. 7. 23 MRSA §1803-B, as amended by PL 2001, c. 565, Pt. K, §1, is further 
amended to read: 
§1803-B. Local Road Assistance Program 
1. Distribution and use of funds. Funds from the Urban Rural Initiative Local 
Road Assistance Program must be distributed to each eligible municipality, county or 
Indian reservation under the Rural Road Initiative and the Urban Compact Initiative 
through rural road assistance and urban compact assistance funding as follows. 
A. Rural Road Initiative road assistance funds must be distributed as follows. 
(1) Funds are distributed at a rate of $600 per year per lane mile for all rural state 
aid minor collector roads and all public roads maintained by a municipality 
located outside urban compact areas as defined in section 754, except that funds 
are distributed at a rate of $300 per year per lane mile for all seasonal public 
roads. 
(2) Effective July 1, 2000, funds Funds must be used for capital improvements 
as defined by this chapter, or for capital improvements to state aid minor 
collector reads highways and state aid maj or collector highways as described in 
subsection 5 section l803-C. In municipalities, counties and Indian reservations 
in which there are no rural state aid minor collector or major collector roads, 
funds may also be used for winter highway maintenance, acquisition of highway 
maintenance equipment or the construction of highway maintenance buildings if 
the governing legislative body affirmatively votes that its town ways and local 
bridges are in sufficiently good condition so as to not require significant repair or 
improvement for at least 10 years. 
B. 
Urban Compact Initiative compact assistance funds must be distributed as 
follows. 
(l) Funds are distributed at a rate of $2,500 per year per lane mile for summer 
maintenance performed by municipalities on state and state aid highways in 
compact areas as defined in section 754. For each lane mile beyond the 2nd lane 
on a highway with more than 2 lanes, funds are reimbursed at a rate of $1 ,250 per 
lane mile for summer maintenance in compact areas. Funds are distributed at a 
rate of $1,700 per year per lane mile for winter maintenance performed by 
municipalities on state highways in compact areas as defined in sections 754 and 
1001 regardless of the number of lanes. 
(2) Funds must be used only for the maintenance or improvement of public 
roads. 
C. The Urban Rural Initiative Local Road Assistance Program payment defined as 
the combined Urban Compact Initiative urban compact assistance and Rural Road 
Initiath;e rural road assistance annual payment to any municipality, county, or Indian 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
reservation may not be less than the fiscal year 1999 Local Road Assistance Program 
payment. 
D. 
Beginning July 1, 2001, the annual funding dedicated for the Urban Rural 
Initiative Local Road Assistance Program must bear the same percentage relationship 
to the sum of the General Fund and Highway Fund allocation to the department 
Department of Transportation for highway purposes as was provided during fiscal 
year 2000-01. On July 1, 2001 and every July 1 st thereafter, the commissioner 
Commissioner of Transportation shall administratively adjust the base funding and 
the reimbursement rates per lane mile proportionately according to revenue available. 
2. 
Retention of allocation for Local Road Assistance Program. 
Prior to 
apportioning funds to each municipality, the department Department of Transportation 
shall retain sufficient funds from the allocation for the Urban Rural InitiatiY6 Local Road 
Assistance Program to ensure equitable funds are provided for roads in unorganized areas 
and for administration. 
3. Payment of funds. One quarter of the funds apportioned to each municipality 
must be paid by the State to the municipality before September 1 st, December 1 st, March 
st and June 1 st each year. 
5. State aid minor eolleetor eapital projeets. State aid minor collector capital 
projects as determined by the department are financed 'llith contributions of Rural Road 
lHitiative fuHds not to e~cceed 33% of project costs with the remainder proYided by the 
State. Local funds other than Rural Road Initiative fuHds committed to the projects are 
matched by state funds at the discretion of the department and at a ratio that may e~cceed 
33% of local funds. If the department is not allocated sufficient funds to match offered 
mooicipal funds, then the department must reject or defer any ne'll ffi\tHicipal offers and 
award matching fuHds to municipalities "'lith pending offers based on a priority order 
consistent with an established departmental 6 year plan for state aid minor collector 
capital projects. 
6. MHnieipal, eOHnty or Indian reservation administration. Municipalities or 
coooties or lHdian reservations may choose to administer rural minor collector capital 
projects based on mutual agreement guided by policies and procedures adopted by the 
department. 
The state share must be available prior to construction or contract. 
Mooicipal, COooty or Indian reservation equipment and material contributions are 
included as part of the contribution of Rural Road InitiatiYe funds. Project cost overruns 
or sayings are shared by the municipality, county or Indian resen'ation and the 8tate 
according to the cost sharing ratio established in subsection 5. State savings must be 
used for the purposes of state aid minor collector capital projects 'i'lithin the State. 
Municipal, county or lHdian reseFYation sayings may be used for any purpose allowed 
pursuant to subsection 1, paragraph A. At the discretion of the municipality, COlIDty or 
Indian reserYation, project cost sayings including matched state funds may accrue entirely 
to'tvard additional or expanded minor collector state aid capital proj ects within that same 
jurisdiction. 
Sec. 8. 23 MRSA §1803-C is enacted to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
§1803-C. Secondary Road Program Fund 
1. Establishment. The Secondary Road Program Fund, referred to in this section as 
"the fund," is established as a dedicated account within the Department of Transportation, 
referred to in this section as "the department." The fund must be used for capital 
improvements to state aid minor collector highways and state aid malor collector 
highways. The department shall administer the fund. 
2. Revenue. The fund receives the following revenue: 
A. Amounts that are transferred to the fund from time to time by the Treasurer of 
State pursuant to: 
(1) Title 5, section 282, subsection 9; and 
(2) Title 35-A, section 122, subsection 6-B; 
B. Amounts from unallocated balances in the Highway Fund as provided in section 
1654-A; and 
C. 
Other funds from any public or private source received for use for any of the 
purposes for which the fund has been established. 
3. Distribution and use of funds. Up to 50% of project costs for a capital project 
on a state aid minor collector highway or state aid major collector highway as determined 
by the department may be financed from the fund with the remainder provided by the 
municipality, county or Indian reservation, except that the Commissioner of 
Transportation may authorize up to 80% of project costs for a capital project on a state 
aid minor collector highway or state aid major collector highway to be financed from the 
fund with the remainder provided by the municipality, county or Indian reservation if the 
municipality, county or Indian reservation demonstrates to the commissioner's 
satisfaction that the proposed project: 
A. Addresses locations where there is a high incidence of vehicular accidents as 
defined by the department; 
B. Creates a substantial number of new jobs for the region; or 
C. Offers greater regional or statewide benefits relative to other similarly classified 
roads. 
In determining local share of project costs for a capital project on a state aid minor 
collector highway or state aid major collector highway, the commissioner may consider 
the use of municipal, county or Indian reservation equipment, materials or in-kind 
services, an agreement to assume year-round capital and maintenance responsibilities for 
the project under consideration or a reduction in future Local Road Assistance Program 
payments. 
A capital project on a state aid minor collector highway or state aid major collector 
highway may not be allotted funding from the Secondary Road Program Fund until the 
project and local financing is approved by a vote of the legislative body of the 
municipality, county or Indian reservation. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
4. Program funding cap. The annual amount available for distribution under this 
section may not exceed $4,000,000, and any remaining funds after all financial 
commitments have been made lapse to the department's Highway and Bridge Capital 
program within the Highway Fund at the end of each fiscal year. 
Sec. 9. 23 MRSA §1804, as amended by PL 1999, c. 473, Pt. D, §5, is further 
amended to read: 
§1804. Municipal, county or Indian reservation requirements 
To be eligible to receive funds from the Urban Rural Initiative Local Road 
Assistance Program, each municipality, county or Indian reservation shall, prior to 
August 1 st each year, certify in a manner acceptable to the department that the funds are 
used in a manner consistent with this chapter. To be guaranteed to receive state ffiatching 
funds for any Rural Road Initiative funds directed to state aid ffiinor collector cElflital 
projects, each municipality, c01:mty and Indian reservation, prior to May 1st of each even 
numbered year, shall subffiit a 6 year plan to the department describing the intended state 
aid ffiinor collector projects to be financed \-vith funds currently available, funds provided 
over the 6 year period beginning fuly 1 st of the follovAng year and any other funds or 
financing. The report ffiust include details sufficient to estiffiate needed state ffiatching 
funds, and ffiust indicate 'Nhether the lnunicipality intends to adffiinister the project. The 
report also llRlst describe any funds held in reserve for future state aid minor collector 
projects. 
Sec. 10. 23 MRSA § 1807, as enacted by PL 2001, c. 681, § 1, is amended to read: 
§1807. Transit bonus payment program 
In order to promote the purposes of the Sensible Transportation Policy Act set forth 
in section 73, a transit bonus payment program is established. The program is governed 
by the provisions of this section. 
1. Application. A municipality that increases its qualifying expenditures for transit 
over a base year may apply to the department for a transit bonus to the municipality's 
Urban RurallRitiative Local Road Assistance Program payment, as defined described in 
section 1803-B. 
2. 
Qualifying expenditures for transit. 
As used in this section, "qualifying 
expenditures for transit" means a municipality's total annual expenditures derived from 
municipal revenue sources that are used for the operations of a seasonal or year-round 
transit service that has been established for at least 3 years and that provides scheduled 
service for at least 3 days per week. 
3. Use of funds. All funds distributed pursuant to this section must be used for the 
purposes set forth in sections 1801 and 1803-B. 
4. Program funding cap. The annual amount available for distribution under this 
section may not exceed 2.5% of the annual funding dedicated for the Urban Rural 
Initiative Local Road Assistance Program. All funds not distributed each year lapse to 
the Department of Transportation, Highway and Bridge Capital program within the 
Highway Fund. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
5. Distribution of funds. Beginning July 1, 2003, the department shall increase aH: 
Urban Rural Initiative the Local Road Assistance Program payment for a municipality 
that applies under subsection 1 on a dollar-far-dollar basis. After the total of qualifying 
applications for reimbursement exceeds the annual amount available for distribution 
provided under subsection 4, funds must be apportioned according to the amount of each 
municipality's increase of qualifying expenditures, lidership or other factors determined 
by the department. 
6. Rules. The commissioner shall adopt rules to implement this section. Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter II-A 2-A. 
Sec. 11. 23 MRSA §4210-C, sub-§3, as enacted by PL 2005, c. 457, Pt. GGG, 
§3, is amended to read: 
3. Calculation. The account is not considered a General Fund appropriation or 
Highway Fund allocation for highway purposes in order to calculate the annual funding 
for the Urban Rural Initiative Local Road Assistance Program pursuant to section 
1803-B.' 
Amend the bill by striking out all of sections 9 to 14 and inserting the following: 
'Sec. 9. 30-A MRSA §5721-A, sub-§4, as amended by PL 2007, c. 662, §3, is 
further amended to read: 
4. Adjustment for new state funding. If the State provides net new funding to a 
municipality for existing services funded in whole or in part by the property tax levy, 
other than required state mandate funds pursuant to section 5685 that do not displace 
current property tax expenditures, the municipality shall lower its property tax levy limit 
in that year in an amount equal to the net new funds. For purposes of this subsection, 
"net new funds" means the amount of funds received by the municipality from the State 
during the most recently completed calendar year, with respect to services funded in 
whole or in part by the property tax levy, less the product of the following: the amount of 
such funds received in the prior calendar year mUltiplied by one plus the growth 
limitation factor described in subsection 3. "Net new funds" refers to state-municipal 
revenue sharing and does not include changes in state funding for general assistance 
under Title 22, section 4311 or in state funding under the Urban Rural Initiative Local 
Road Assistance Program under Title 23, section 1803-B if those changes are the result of 
the operation of the formula for calculation of state funding under that section but does 
include changes in funding that are the result of a statutory change in the formula for 
calculation of state funding under that section. 
If the calculation required by this 
subsection reveals that the municipality received a net reduction in funding, the 
municipality is authorized to adjust its property tax levy limit in an amount equal to the 
net reduction of funds. For the purpose of determining if there was a net reduction in 
funding, the municipality may consider only those funds that are net new funds. For 
purposes of this subsection, "net reduction in funding" means the amount of funds 
received by the municipality from the State during the calendar year immediately 
preceding the most recently completed calendar year less the amount of such funds 
received in the most recently completed calendar year. If the calculation required by this 
subsection yields a positive value, that value may be added to the municipality's property 
tax levy limit. If a municipality receives net new funds in any fiscal year for which its 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 421, L.D. 1367 
property tax levy limit has not been adjusted as provided in this subsection, the 
municipality shall adjust its property tax levy limit in the following year in an amount 
equal to the net new funds. 
Sec. 10. 35-A MRS A §122, sub-§6-B is enacted to read: 
6-B. Revenue from energy infrastructure corridors. Notwithstanding subsection 
6-A, revenues generated from the use of statutory corridors designated under subsection 
I-A, paragraphs A and B owned by the Department of Transportation within energy 
infrastructure corridors must be deposited into the Secondary Road Program Fund 
established in Title 23, section 1803-C. 
Sec. 11. Effective date. This Act takes effect July 1,2013.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment strikes from the bill the following: 
1. The requirement that any balance remaining in the Law Enforcement Agency 
Reimbursement Fund at the end of the fiscal year must be transferred to the Secondary 
Roads Fund; 
2. The requirement that any damages paid to the Department of Transportation must 
be transferred to the Secondary Roads Fund; 
3. The requirement that any proceeds from leasing, letting or renting Department of 
Transportation property must be transferred to the Secondary Roads Fund; 
4. 
The Commissioner of Transportation's authorization to allow, for a fee, the 
placement of off-premises signs within the right-of-way of an interstate highway, a state 
highway or state aid highway and the requirement that the fees collected by the 
Department of Transportation for the placement of such off-premises signs must be 
deposited into the Secondary Roads Fund; 
5. 
The change to the proportional split between Highway Fund allocations and 
General Fund appropriations to the Department of Public Safety, Bureau of State Police 
budgetary appropriation program to 25% allocated from the Highway Fund and 75% 
appropriated from the General Fund and the requirement that an amount equal to 24% of 
state funding for the Bureau of State Police be allocated from the Highway Fund to the 
Secondary Roads Fund; 
6. The increase of the annual fee for a vanity registration plate by $10, from $25 to 
$35, to be deposited into the Secondary Roads Fund; and 
7. The requirement that, except as otherwise provided, all fines for traffic infractions 
and other violations of the motor vehicle statutes accrue to the Secondary Roads Fund. 
The bill establishes the Secondary Roads Fund as a dedicated account within the 
Department of Transportation for the purpose of financing capital improvements to state 
aid minor collector highways. This amendment changes the purpose of the Secondary 
Roads Fund to include financing capital improvements to state aid major collector 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 421, L.D. 1367 
highways as well as state aid minor collector highways and changes its name to the 
Secondary Road Program Fund. 
This amendment also renames the Urban-Rural 
Initiative Program as the Local Road Assistance Program. 
The bill provides that any revenue derived from the use of department land and assets 
for energy infrastructure development will no longer be deposited into the energy 
infrastructure benefits fund and will instead be deposited into the Secondary Roads Fund. 
This amendment clarifies that revenues generated from the use of designated statutory 
corridors, Interstate 295 and Interstate 95, not including that portion of Interstate 95 
designated as the Maine Turnpike, must be deposited into the Secondary Road Program 
Fund. 
Current law directs the Maine Turnpike Authority to negotiate with the 
Department of Transportation to govern the conditions under which the authority will 
grant an occupancy agreement for use of Maine Turnpike Authority property as part of 
the Interstate 95 statutory corridor. 
This amendment changes the effective date of the bill from July I, 2012 to July I, 
2013. 
FISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 03/08112 
.M'a-c:.. 
LD 1367 
LR 887(02) 
An Act To Restore Maine's Secondary Roads 
Fiscal Note for Bill as Amended by Committee Amendment" A" 5 -45 2-
Committee: Transportation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
Projections 
FY 2013-14 
Projections 
FY 2014-15 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0 
$0 
$500 
$500 
This legislation, which is effective July 1,2013, establishes the Secondary Road Program Fund within the Department 
of Transportation. The bill includes a base allocation to the Department of Transportation of $500 beginning in fiscal 
year 2013-14 to allow the department to spend any funds received. 
The Fund may receive revenue derived from the use of department land and assets and designated statutory corridors 
for energy infrastructure development as well as any potential uncommitted balance in the Highway Fund unallocated 
surplus account calculated at the end of each fiscal year. 
LR0887(02) - Fiscal Note - Page 1 of 1