An Act To Strengthen Maine's Hospitals, Increase Access to Health Care and Provide for a New Spirits Contract
Maine Legislature, Session 126, LD 1546
Committee Amendment CA_A_S96 (Senate)

COMMITTEE AMENDMENT "A" to S.P. 589, L.D. 1546, Bill, "An Act To 
Strengthen Maine's Hospitals, Increase Access to Health Care and Provide for a New 
Spirits Contract" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Enhance Revenues to the State from the Sale of Spirits and To Provide a 
Source of Payment for Maine's Hospitals' 
Amend the bill by striking out all of Parts C, D, E and F. 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment is the miIllority amendment to the bill reported out of the Joint 
Standing Committee on Veterans and Legal Affairs regarding the wholesale spirits 
contract. 
This amendment removes those parts of the bill related to MaineCare expansion. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMI7-TEE AMENDMENT 
• 
Approved: 05/17/13 
~ac:.. 
LD 
LR 2143(02) 
An Act To Strengthen Maine's Hospitals, Increase Access to Health Care and Provide for a New 
Spirits Contract 
Fiscal Note for Bill as Amended by Committee Amendment ~'(S- q ~) 
Committee: Veterans and Legal Affairs 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Federal Expenditures Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
$0 
$301,700,000 
$188,570,000 
$0 
$188,570,000 
FY 2014-15 
($1,000,000) 
$0 
$2,662,000 
$1,000,000 
$2,662,000 
Projections 
FY 2015-16 
($750,000) 
$0 
$6,201,600 
$750,000 
$6,201,600 
Projections 
FY 2016-17 
($750,000) 
$0 
$7,000,000 
$750,000 
$7,000,000 
Parts A and C of this bill implement the transition of the process for liquor sales and operations when the current lease 
arrangement ends at the close of fiscal year 2013-14. Under the revised contracting process, the net revenue from 
liquor sales and operations is projected to increase by roughly $25 million in fiscal year 2014-15 over current 
budgeted net revenue and continue increasing by additional amounts each fiscal year over the 10-year contract period 
for the operation and management of liquor sales in the State. The net change in revenue includes the effect of 
changes in agent discounts, pricing strategies to increase and recover sales from New Hampshire and the elimination 
of the administration of the sale of fortified wines by the State. The amount of the projected increase in revenue will 
depend on the effectiveness of the competitive bidding process for the contracts for the various aspects of liquor sales 
and marketing and enforcement strategies to recover sales. 
LR2143(02) - Fiscal Note - Page 10f2 
Part B of the bill authorizes the Mame Municipal Bond Bank with the approval of the Governor to issue liquor 
operation revenue bonds up to $188,500,000 plus financing costs. The net proceeds from these revenue bonds will be 
used for the state share of the payments to health care providers for services provided prior to December 1, 2012 and 
will be transferred from the bond bank to the Health Care Liability Retirement Fund, an Other Special Revenue Funds 
account within the Department of Health and Human Services. The estimated total amount of the payments, both 
state and federal, to health care providers for services provided prior to December 1, 2012 is approximately 
$490,200,000. 
If the full amount of the $188,500,000 is not required due to the timing of the sale of the bonds and the availability of 
the proceeds, either the full authorization will not be issued and annual debt service will be lower or the proceeds in 
excess of the amounts required for the state share of the payments to health care providers will be transferred to the 
bond bank to cover debt service costs. 
All net revenue from liquor sales is deposited in the Liquor Operations Revenue Fund at the Maine Municipal Bond 
Bank to first cover annual debt service costs of the revenue bonds, approximately $25 million per year. Total net 
borrowing costs above the $188,500,000 are projected to be $33,766,100, based on the full authorization being 
utilized. 
Excess revenue above debt service requirements will be transferred first to the General Fund through fiscal year 2016-
to cover current budgeted revenue estimates from liquor sales and operations and to offset the General Fund 
additional enforcement costs of $ 1,000,000 during the 2014-2015 biennium to be appropriated in the Governor's 
proposed 2014-2015 Biennial Budget Bill, LD 1509. Additional revenue received above the General Fund amounts 
will be credited to the Other Special Revenue Funds accounts for drinking water and wastewater projects up to the 
amounts needed to match available federal funds or up to $7,000,000 per year. The amounts not required to match 
available federal funds for the water programs will be transferred to the Department of Transportation for highway 
and bridge improvements. The total projected amounts to be allocated to the water programs in fiscal year 2014-15 
are $2,662,000. 
After fiscal year 2016-17 and until the revenue bonds are retired, up to $7,000,000 will be transferred to the water 
programs and the Department of Transportation with no General Fund revenue from liquor revenue during this period. 
Excess revenue from liquor operations after the de:bt service costs and the $7,000,000 annually will be retained by the 
bond bank until the revenue bonds are retired. At that time, the bond bank will transfer the excess reserve to the 
Maine Budget Stabilization Fund. In fiscal year 2023-24, the projected transfer to the Maine Budget Stabilization 
Fund will be roughly $138,000,000. 
LR2143(02) - Fiscal Note - Page 2 of2