An Act To Strengthen Maine's Hospitals and To Provide for a New Spirits Contract
Maine Legislature, Session 126, LD 1555
Committee Amendment CA_A_S269 (Senate)

COMMITTEE AMENDMENT 'A " to S.P. 596, L.D. 1555, Bill, "An Act To 
Strengthen Maine's Hospitals and To Provide for a New Spirits Contract" 
Amend the bill in Part B in section 2 in §6053 in subsection 1 in the 3rd line (page 8, 
line 4 in L.D.) by striking out the following: "$188,500,000" and inserting the following: 
'$183,500,000' 
Amend the bill in Part B in section 2 in §6054 in subsection 3 in the 5th line (page 
11, line 1 in L.D.) by inserting after the following: "including" the following: 'costs of 
administering the fund, the bonds and the ancillary obligations and' 
Amend the bill in Part B in section 2 in §6054 in subsection 3 by striking out all of 
paragraph A (page 11, lines 9 to 11 in L.D.) and inserting the following: 
'A. First, to the General Fund as undedicated revenue up to $9,714,884 in the fiscal 
year ending June 30, 2015, $9,639,000 in the fiscal year ending June 30, 2016 and 
$9,817,000 in the fiscal year ending June 30, 2017;' 
Amend the bill in Part B in section 2 in §6054 in subsection 4 in the 5th line (page 
11, line 24 in L.D.) by inserting after the following: "including" the following: 'costs of 
administering the fund, the bonds and the ancillary obligations and' 
Amend the bill in Part B in section 2 in §6054 in subsection 5 in the first paragraph in 
the last line (page 12, line 2 in L.D.) by inserting after the following: "basis to the State" 
the following: " after payment of costs of administering the fund,' 
Amend the bill in Part B by striking out all of section 3. 
Amend the bill by inserting after Part C the following: 
'PARTD 
Sec. D-l. Appropriatioilis and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
COMM/7-TEE AMENDMENT 
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COMMITTEE AMENDMENT 'A" to S.P. 596, L.D. 1555 
Alcoholic Beverages - General Operation 0015 
Initiative: Allocates funds to reflect the transfer of 50% of the costs of the Director 
Alcoholic Beverages/Lottery Operations position and a Public Service Manager II 
position and 100% of the costs of a Public Service Coordinator I position from the State 
Lottery Fund to the State Alcoholic Beverage Fund and to provide funding for 
administrative costs and contracts to operate the wholesale liquor business in the State. 
STATE ALCOHOLIC BEVERAGE FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
STATE ALCOHOLIC BEVERAGE FUND TOTAL 
Lottery Operations 0023 
2013-14 
0.000 
$0 
$0 
$0 
2014-15 
1.000 
$210,462 
$11,533,800 
$11,744,262 
Initiative: Deallocates funds to reflect the transfer of 50% of the costs of the Director 
Alcoholic Beverages/Lottery Operations position and a Public Service Manager II 
position and 100% of the costs of a Public Service Coordinator I position from the State 
Lottery Fund to the State Alcoholic Beverage Fund. 
STATE LOTTERY FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
STATE LOTTERY FUND TOTAL 
Purchases - Division of 0007 
2013-14 
0.000 
$0 
$0 
2014-15 
(1.000) 
($210,462) 
($210,462) 
Initiative: Allocates funds for the costs associated with developing and reviewing the 
request for proposals from potential bidders for contracts related to liquor sales and 
operations. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
ADMINISTRA TIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
2013-14 
$70,000 
$70,000 
2013-14 
$70,000 
COMMITTEE AMENDMENT 
2014-15 
$0 
$0 
2014-15 
$0 
". ~ c:,. 
COMMITTEE AMENDMENT 'A" to S.P. 596, L.D. 1555 
STATE ALCOHOLIC BEVERAGE FUND 
STATE LOTTERY FUNU 
DEPARTMENT TOTAL - ALL FUNDS 
ENVIRONMENTAL PROTECTION, DEPARTMENT OF 
Land and Water Quality 0248 
$0 
$11,744,262 
$0 
($210,462) 
$70,000 
$11,533,800 
Initiative: Allocates funds for the state share to match available federal matching funds 
for wastewater treatment projects. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
ENVIRONMENTAL PROTECTION, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL - ALL FUNDS 
2013-14 
$0 
$0 
2013-14 
$0 
$0 
2014-15 
$1,313,700 
$1,313,700 
2014-15 
$1,313,700 
$1,313,700 
HEAL TH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
Health - Bureau of 0143 
Initiative: Allocates funds for the state share to match available federal matching funds 
for drinking water projects. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Health Care Liability Retirement Fund N157 
2013-14 
$0 
$0 
2014-15 
$1,313,700 
$1,313,700 
Initiative: Authorizes the expenditure of bond proceeds from the sale of liquor operation 
revenue bonds for the state share of payments to health care providers for services 
provided prior to December 1, 2012. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "An to S.P. 596, L.D. 1555 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Medical Care - Payments to Providers 0147 
2013-14 
$183,500,000 
$183,500,000 
2014-15 
$0 
$0 
Initiative: Allocates the federal share of payments to health care providers for services 
provided prior to December 1,2012. 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
STATE ALCOHOLIC BEVERAGE FUND 
STATE LOTTERY FUND 
SECTION TOTAL - ALL FUNDS 
2013-14 
$306,700,000 
$306,700,000 
2013-14 
$306,700,000 
$183,500,000 
$490,200,000 
2013-14 
$306,700,000 
$183,570,000 
$0 
$0 
$490,270,000 
2014-15 
$0 
$0 
2014-15 
$0 
$1,313,700 
$1,313,700 
2014-15 
$0 
$2,627,400 
$11,744,262 
($210,462) 
$14,161,200 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes the amount of the liquor operation revenue bonds that may 
be issued to $183,500,000 from $188,500,000. 
This amendment also changes the 
distributions from the Liquor Operation Revenue Fund to the General Fund from 
$8,714,884 to $9,714,884 in fiscal year 2014-15, from $8,889,000 to $9,639,000 in fiscal 
year 2015-16 and from $9,067,000 to $9,817,000 in fiscal year 2016-17. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "4" 1:0 S.P. 596, L.D. 1555 
This amendment also specifies that the fund must be used for the costs of 
administering the fund, bonds and ancillary obligations. 
This amendment replaces the appropriations and allocations Part with a new 
appropriations and allocations Part to implement the provisions of the bill. 
]"ISCAL NOTE REQUIRED 
(See attached) 
COMM/T·TEE AMENDMENT 
Approved: 06/11/13 ;lJ;?ae 
LD 1555 
LR 2154(02) 
An Act To Strengthen Maine's Hospitals and To Provide for a New Spirits Contract 
Fiscal Note for Bill as Amended by Committee Amendment ft{s- 2-taq) 
Committee: Appropriations and Financial Affairs 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Federal Expenditures Fund 
Other Special Revenue Funds 
State Alcoholic Beverage Fund 
State Lottery Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
$0 
$306,700,000 
$183,570,000 
$0 
$0 
$0 
$183,570,000 
FY 2014-15 
($1,210,462) 
$0 
$2,627,400 
$11,744,262 
($210,462) 
$1,210,462 
$2,627,400 
Projections 
FY 2015-16 
($966,776) 
$0 
$5,716,800 
$12,890,576 
($216,776) 
$966,776 
$5,716,800 
Projections 
FY 2016-17 
($973,279) 
$0 
$7,000,000 
$12,625,179 
($223,279) 
$973,279 
$7,000,000 
This bill implements 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 ofliquor sales and marketing and 
enforcement strategies to recover sales. 
LR2154(02) - Fiscal Note - Page 1 of2 
The bill also authorizes the Maine Municipal Bond Bank with the approval ofthe Governor to issue liquor operation 
revenue bonds up to $183,500,000 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 selvices 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 shan~ 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 $40,807,900, based on the full authorization being 
utilized. 
Excess revenue above debt service requirements will be transferred first to the General Fund through fiscal year 2016-
to cover current budgeted revenue estimates from liquor sales and operations and to provide an offset for an 
intended increase in the General Fund enforceme:nt costs of$l,OOO,OOO during the 2014-2015 biennium. Additional 
revenue transferred from the bond bank 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 
projected amounts that are allocated to the water programs in fiscal year 2014-15 total $2,627,400. 
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 debt 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. 
The deallocations from the State Lottery Fund retlecting the reallocation of the costs of certain positions to the State 
Alcoholic Beverage Fund will increase General Fund revenue from the State Lottery Fund by $210,462 in fiscal year 
2014-15. 
LR2154(02) - Fiscal Note - Page 2 of2