An Act To Provide Funding to the Maine Budget Stabilization Fund
Maine Legislature, Session 127, LD 1606
Committee Amendment CA_A_S464 (Senate)
Amends: 24-A MRSA §4317, 36 MRSA §5217-D

COMMITTEE AMENDMENT "A" to S.P. 647, L.D. 1606, Bill, "An Act To 
Provide Funding to the Maine Budget Stabilization Fund" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide Funding to the Maine Budget Stabilization Fund and To Make 
Additional Supplemental Appropriations and Allocations for the Expenditures of 
State Government, General Fund and Other Funds and To Change Certain 
Provisions of the Law Necessary to the Proper Operations of State Government for 
the Fiscal Years Ending June 30, 2016 and June 30, 2017' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the 90-day period may not terminate until after the beginning of the next 
fiscal year; and 
Whereas, certain obligations and expenses incident to the operation of state 
departments and institutions will become due and payable immediately; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1. 
Department to increase wages at state mental health 
institutions. The Department of Health and Human Services shall increase wages for 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "/J. "to S.P. 647, L.D. 1606 
select personnel at the state mental health institutions. Wages must be increased by $2 
per hour for all Acuity Specialist positions, Licensed Practical Nurse positions, Mental 
Health Worker I positions, Mental Health Worker II positions and Mental Health Worker 
III positions. Wages must be increased by $4 per hour for all Nurse I positions, Hospital 
Nurse II positions, Hospital Nurse III positions, Hospital Nurse IV positions, 
Psychologist III positions and Psychologist IV positions. 
Sec. A-2. Appropriations and allocations. The following appropriations and 
allocations are made. 
HEALTH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY BOS) 
Disproportionate Share - Dorothea Dix Psychiatric Center 0734 
Initiative: Provides funds to increase wages by $4 per hour for all Nurse I positions, 
Hospital Nurse II positions, Hospital Nurse III positions, Hospital Nurse IV positions, 
Psychologist III positions and Psychologist IV positions at the state mental health 
institutions. 
GENERAL FUND 
Personal Services 
GENERAL FUND TOTAL 
2015-16 
$0 
$0 
Disproportionate Share - Dorothea Dix Psychiatric Center 0734 
2016-17 
$231,112 
$231,112 
Initiative: Provides funds to increase wages by $2 per hour for all Acuity Specialist 
positions, Licensed Practical Nurse positions, Mental Health Worker I positions, Mental 
Health Worker II positions and Mental Health Worker III positions at the state mental 
health institutions. 
GENERAL FUND 
Personal Services 
GENERAL FUND TOTAL 
Disproportionate Share - Riverview Psychiatric Center 0733 
2015-16 
$0 
$0 
2016-17 
$77,625 
$77,625 
Initiative: Provides funds to increase wages by $2 per hour for all Acuity Specialist 
positions, Licensed Practical Nurse positions, Mental Health Worker I positions, Mental 
Health Worker II positions and Mental Health Worker III positions at the state mental 
health institutions. 
GENERAL FUND 
Personal Services 
GENERAL FUND TOTAL 
2015-16 
$0 
$0 
COMMITTEE AMENDMENT 
2016-17 
$318,317 
$318,317 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
Disproportionate Share - Riverview Psychiatric Center 0733 
Initiative: Provides funds to increase wages by $4 per hour for all Nurse I positions, 
Hospital Nurse II positions, Hospital Nurse III positions, Hospital Nurse IV positions, 
Psychologist III positions and Psychologist IV positions at the state mental health 
institutions. 
GENERAL FUND 
Personal Services 
GENERAL FUND TOTAL 
Dorothea Dix Psychiatric Center 0120 
2015-16 
$0 
$0 
2016-17 
$304,229 
$304,229 
Initiative: Provides funds to increase wages by $4 per hour for all Nurse I positions, 
Hospital Nurse II positions, Hospital Nurse III positions, Hospital Nurse IV positions, 
Psychologist III positions and Psychologist IV positions at the state mental health 
institutions. 
OTHER SPECIAL REVENUE FUNDS 
Personal Services 
OTHERSPECIALREVENUEFUNDSTOTAL 
Dorothea Dix Psychiatric Center 0120 
2015-16 
$0 
$0 
2016-17 
$410,019 
$410,019 
Initiative: Provides funds to increase wages by $2 per hour for all Acuity Specialist 
positions, Licensed Practical Nurse positions, Mental Health Worker I positions, Mental 
Health Worker II positions and Mental Health Worker III positions at the state mental 
health institutions. 
OTHER SPECIAL REVENUE FUNDS 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Riverview Psychiatric Center 0105 
2015-16 
$0 
$0 
2016-17 
$137,717 
$137,717 
Initiative: Provides funds to increase wages by $4 per hour for all Nurse I positions, 
Hospital Nurse II positions, Hospital Nurse III positions, Hospital Nurse IV positions, 
Psychologist III positions and Psychologist IV positions at the state mental health 
institutions. 
COMMITTEE AMENDMENT 
I 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
OTHER SPECIAL REVENUE FUNDS 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOT AL 
Riverview Psychiatric Center 0105 
2015-16 
$0 
$0 
2016-17 
$539,739 
$539,739 
Initiative: Provides funds to increase wages by $2 per hour for all Acuity Specialist 
positions, Licensed Practical Nurse positions, Mental Health Worker I positions, Mental 
Health Worker II positions and Mental Health Worker III positions at the state mental 
health institutions. 
OTHER SPECIAL REVENUE FUNDS 
Personal Services 
OTHER SPECIAL REVENUE FUNDS TOTAL 
HEAL TH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY BOS) 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
PARTB 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
$0 
2016-17 
$564,733 
$564,733 
2016-17 
$931,283 
$1,652,208 
$2,583,491 
Sec. B-1. Reimbursement for personal care and related services. The 
Department of Health and Human Services shall amend its rules for reimbursement rates 
for personal care and related services provided under rule Chapter 101: MaineCare 
Benefits Manual, Chapter III, Sections 12, 19 and 96 and Chapter 5, Office of Elder 
Services Policy Manual, Section 63 to reflect 50% of the increase in rates noted in the 
final rates modeled in the February 1, 2016 report "Rate Review for Personal Care and 
Related Services: Final Rate Models" prepared for the department by Bums & 
Associates, Inc. 
Rules adopted pursuant to this section are routine technical rules 
pursuant to the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
Sec. B-2. Unstaffed hours and waiting lists. The Department of Health and 
Human Services shall estimate the number of hours, and the cost of those hours, of unmet 
need under rule Chapter 101: MaineCare Benefits Manual, Chapter III, Sections 12, 19, 
and 96 and Chapter 5, Office of Elder Services Policy Manual, Section 63. The 
estimate must include individuals eligible for services but on a waiting list and 
individuals who are entitled to services that are eligible for reimbursement but are unable 
to locate individuals or agencies to provide those services. 
COMMITTEE AMENDMENT 
t:-'' 
,, 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
Sec. B-3. Appropriations and allocations. The following appropriations and 
allocations are made. 
HEAL TH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY OHS) 
Medical Care - Payments to Providers 0147 
Initiative: Provides funds for a rate increase for personal care and related services. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
FEDERAL EXPENDITURES FUND 
All Other 
FEDERAL EXPENDITURES FUND TOT AL 
Office of Aging and Disability Services Central Office 0140 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
2016-17 
$2,773,600 
$2,773,600 
2016-17 
$4,920,692 
$4,920,692 
Initiative: Provides funds for a rate increase for personal care and related services. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
DEPARTMENT TOTAL-ALL FUNDS 
PART C 
2015-16 
$0 
$0 
2015-16 
$0 
$0 
$0 
2016-17 
$1,226,400 
$1,226,400 
2016-17 
$4,000,000 
$4,920,692 
$8,920,692 
Sec. C-1. Adjustment of salary schedules for certain law enforcement 
position classifications in fiscal year 2015-16. Notwithstanding any other provision 
of law, effective at the beginning of the pay period commencing closest to May 1, 2016, 
the salary schedules for the positions specified in this section in the Department of Public 
Safety, the Department of Inland Fisheries and Wildlife and the Department of Marine 
COMMITTEE AMENDMENT 
COMMIITEE AMENDMENT" A" to S.P. 647, L.D. 1606 
I 
Resources that are included in the Maine State Police bargaining unit, the law 
enforcement bargaining unit or the supervisory services bargaining unit must be adjusted 
upward by the percentages indicated in this section. 
1. Twelve percent increase. The salary schedules must be adjusted upward by 12% 
for all positions classified as Game Warden Sergeant, Game Warden Lieutenant, Marine 
Patrol Pilot Supervisor, Marine Patrol Sergeant or Marine Patrol Lieutenant. 
2. Thirteen percent increase. The salary schedules must be adjusted upward by 
13% for all positions classified as State Police Trooper, Game Warden Investigator, 
Game Warden Specialist, Capitol Police Officer or Fire Investigator. 
IO 
3. Fourteen percent increase. The salary schedules must be adjusted upward by 
14% for all positions classified as Game Warden Pilot Supervisor. 
4. Fifteen percent increase. The salary schedules must be adjusted upward by 15% 
for all positions classified as State Police Specialist, State Police Corporal, State Police 
Detective, State Police Polygraph Examiner, State Police Forensic Specialist, State Police 
Pilot, State Police Pilot Supervisor, State Police Polygraph Examiner Supervisor, State 
Police Sergeant-E, Game Warden, Marine Patrol Officer, Capitol Police Sergeant, Senior 
Fire Investigator, Fire Investigations Sergeant or Forensic Specialist, Dual Discipline. 
5. Seventeen percent increase. The salary schedules must be adjusted upward by 
7% for all positions classified as Game Warden Pilot. 
6. Eighteen percent increase. The salary schedules must be adjusted upward by 
18% for all positions classified as State Police Lieutenant, Capitol Police Lieutenant or 
Marine Patrol Specialist. 
Sec. C-2. Salary schedule for law enforcement supervisors changed. The 
Department of Administrative and Financial Services, Bureau of Human Resources shall 
amend by August I, 2016 its rules regarding compensation to ensure that the fixed salary 
schedule for positions classified as law enforcement supervisors within the Department of 
Agriculture, Conservation and Forestry and the Baxter State Park Authority is increased 
by 5%. 
Sec. C-3. Certain law enforcement confidential positions; similar and 
equitable treatment. The Department of Administrative and Financial Services, 
Bureau of Human Resources shall adjust upward the salary schedules for those law 
enforcement confidential positions in the Department of Public Safety, the Department of 
Inland Fisheries and Wildlife and the Department of Marine Resources that the bureau 
determines to be similar to the law enforcement positions listed in section 1 of this Part. 
The salary schedules must be adjusted consistently with the salary adjustment for the law 
enforcement positions listed in section 1 of this Part. For the purposes of this section, 
"confidential position" means a position within the executive branch that is a position 
excluded from bargaining units pursuant to the Maine Revised Statutes, Title 26, section 
979-A, subsection 6, paragraphs B, C, D, I and J, including a probationary employee in 
such an excluded position. 
Sec. C-4. Positions subject to adjustment or approval by the Governor. 
The Governor may adjust in a manner consistent with the salary adjustment for the law 
enforcement positions listed in section 1 of this Part the salary schedules for unclassified 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
law enforcement positions in the Department of Public Safety, the Department of Inland 
Fisheries and Wildlife and the Department of Marine Resources whose salaries are 
subject to the Governor's adjustment or approval. 
Sec. C-5. 
Transfer from Salary Plan program and special account 
funding. 
The funds in the Salary Plan program, General Fund account within the 
Department of Administrative and Financial Services may be used as needed in allotment 
by financial order upon the recommendation of the State Budget Officer and approval of 
the Governor to be used for the economic items contained in this Part and in Public Law 
2015, chapter 376 in fiscal year 2016-17. Positions supported from sources other than the 
General Fund and the Highway Fund must be funded from those other sources. Transfers 
from the Salary Plan program pursuant to this Part may not exceed $939,883 in fiscal 
year 2015-16 and $6,088,514 in fiscal year 2016-17. 
PARTD 
Sec. D-1. Distributions by Department of Corrections. The Department of 
Corrections shall distribute the funds appropriated in this Part prior to June 30, 2016 on 
the basis of the financial needs of each county jail and the regional jail. The department 
shall determine the financial needs of the jails in cooperation with the Maine County 
Commissioners Association and the Maine Sheriffs' Association, taking into 
consideration the revenues and verified expenditures of each jail and the use of tax 
assessments by each county as allowed by the Maine Revised Statutes, Title 30-A, 
section 701, subsection 2-C. 
Sec. D-2. Appropriations and allocations. The following appropriations and 
allocations are made. 
CORRECTIONS, DEPARTMENT OF 
County Jail Operations Fund Z194 
Initiative: 
Provides one-time funding for the County Jail Operations Fund to meet 
funding needs for the operation of the State's county jails and regional jail. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
PART E 
2015-16 
$2,465,896 
$2,465,896 
Sec. E-1. 24-A MRSA §4317, sub-§12 is enacted to read: 
2016-17 
$0 
$0 
12. Maximum allowable cost. This subsection governs the maximum allowable 
cost for a prescription drug as determined by a pharmacy benefits manager. 
A. 
As used in this subsection, "maximum allowable cost" means the maximum 
amount that a pharmacy benefits manager pays toward the cost ofa prescription drug. 
COMMITTEE AMENDMENT 
I 
COMMITTEE AMENDMENT "A" to S.P. 647, L.D. 1606 
B. 
A pharmacy benefits manager may set a maximum allowable cost for a 
prescription drug. or allow a prescription drug to continue on a maximum allowable 
cost list. only if that prescription drug: 
(1) Is rated as "A" or "B" in the most recent version of the United States Food 
and Drug Administration's "Approved Drug Products with Therapeutic 
Equivalence Evaluations," also known as "the Orange Book," or an equivalent 
rating from a successor publication, or is rated as "NR" or "NA" or a similar 
rating by a nationally recognized pricing reference; and 
(2) Is not obsolete and is generally available for purchase in this State from a 
national or regional wholesale distributor by pharmacies having a contract with 
the pharmacy benefits manager. 
C. 
A pharmacy benefits manager shall establish a process for removing a 
prescription drug from a maximum allowable cost list or modifying a maximum 
allowable cost for a prescription drug in a timely manner to remain consistent with 
changes to such costs and the availability of the drug in the national marketplace. 
D. 
With regard to a pharmacy with which the pharmacy benefits manager has 
entered into a contract. a pharmacy benefits manager shall: 
( 1) Upon request, disclose the sources used to establish the maximum allowable 
costs used by the pharmacy benefits manager; 
(2) Provide a process for a pharmacy to readily obtain the maximum allowable 
reimbursement available to that pharmacy under a maximum allowable cost list; 
and 
(3) At least once every 7 business days. review and update maximum allowable 
cost list information to reflect any modification of the maximum allowable 
reimbursement available to a pharmacy under a maximum allowable cost list 
used by the pharmacy benefits manager. 
E. A pharmacy benefits manager shall provide a reasonable administrative appeal 
procedure, including a right to appeal that is limited to 14 days following the initial 
claim, to allow pharmacies with which the pharmacy benefits manager has a contract 
to challenge maximum allowable costs for a specified drug. 
F. 
The pharmacy benefits manager shall respond to, investigate and resolve an 
appeal under paragraph E within 14 days after the receipt of the appeal. The 
pharmacy benefits manager shall respond to an appeal as follows: 
( 1) If the appeal is upheld, the pharmacy benefits manager shall make the 
appropriate adjustment in the maximum allowable cost and permit the 
challenging pharmacy or pharmacist to reverse and rebill the claim in question; or 
(2) If the appeal is denied, the pharmacy benefits manager shall provide the 
challenging pharmacy or pharmacist the national drug code from national or 
regional wholesalers of a comparable prescription drug that may be purchased at 
or below the maximum allowable cost. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A"to S.P. 647, L.D. 1606 
G. The requirements of this subsection apply to contracts between a pharmacy and a 
pharmacy benefits manager executed or renewed on or after September 1. 2016. 
PARTF 
Sec. F-1. Appropriations and allocations. The following appropriations and 
allocations are made. 
HEAL TH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY BDS) 
Developmental Services Waiver - MaineCare 0987 
Initiative: Provides funding for additional payments to providers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2015-16 
$261,418 
$261,418 
Medicaid Services - Developmental Services 0705 
Initiative: Provides funding for additional payments to providers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Mental Health Services - Community Medicaid 0732 
Initiative: Provides funding for additional payments to providers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2015-16 
$5,843 
$5,843 
2015-16 
$51,183 
$51,183 
2015-16 
$70,040 
$70,040 
COMMITTEE AMENDMENT 
2016-17 
$1,002,949 
$1,002,949 
2016-17 
$22,415 
$22,415 
2016-17 
$204,732 
$204,732 
2016-17 
$268,714 
$268,714 
COMMIITEE AMENDMENT" A"to S.P. 647, L.D. 1606 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOT AL 
2015-16 
$13,413 
$13,413 
2016-17 
$53,653 
$53,653 
Office of Substance Abuse and Mental Health Services - Medicaid Seed 0844 
Initiative: Provides funding for additional payments to providers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOT AL 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY BDS) 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL - ALL FUNDS 
2015-16 
$6,260 
$6,260 
2015-16 
$1,199 
$1,199 
2015-16 
$343,561 
$65,795 
$409,356 
2016-17 
$24,019 
$24,019 
2016-17 
$4,796 
$4,796 
2016-17 
$1,318,097 
$263,181 
$1,581,278 
HEAL TH AND HUMAN SERVICES, DEPARTMENT OF (FORMERLY DHS) 
Medical Care - Payments to Providers 0147 
Initiative: Provides funding for additional payments to providers. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
FEDERAL EXPENDITURES FUND 
All Other 
2015-16 
$139,442 
$139,442 
2015-16 
$966,158 
COMMITTEE AMENDMENT 
2016-17 
$534,978 
$534,978 
2016-17 
$3,943,566 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
FEDERAL EXPENDITURES FUND TOT AL 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
HEAL TH AND HUMAN SERVICES, 
DEPARTMENT OF (FORMERLY DHS) 
DEPARTMENT TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
FEDERAL EXPENDITURES FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOT AL - ALL FUNDS 
PARTG 
$966,158 
2015-16 
$26,704 
$26,704 
2015-16 
$139,442 
$966,158 
$26,704 
$1,132,304 
2015-16 
$483,003 
$966,158 
$92,499 
$1,541,660 
$3,943,566 
2016-17 
$106,818 
$106,818 
2016-17 
$534,978 
$3,943,566 
$106,818 
$4,585,362 
2016-17 
$1,853,075 
$3,943,566 
$369,999 
$6,166,640 
Sec. G-1. 36 MRSA §5217-D, sub-§2, ,rIJ, as amended by PL 2015, c. 267, Pt. 
QQQ, §4 and affected by §6, is further amended to read: 
B. A taxpayer may claim a credit based on loan payments actually made to a relevant 
lender or lenders under this section only with respect to loans that are part of the 
qualified individual's financial aid package and, for tax years beginning on or after 
January 1, 2015, only with respect to loan payment amounts paid by the taxpayer 
during that part of the taxable year that the qualified individual worked in this State. 
Payment of loan amounts in excess of the amounts due during the taxable year does 
not qualify for the credit. RefiaaBeed For tax years beginning before January 1, 2015, 
refinanced loans that are part of the qualified individual's financial aid package are 
eligible for the credit under this section if the refinanced loans remain separate from 
other debt, including debt incurred in an educational program other than the degree 
program for which a credit is claimed under this section. 
For tax years beginning on 
or after January 1, 2015, refinanced loans or consolidated loans that are part of the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A" to S.P. 647, L.D. 1606 
qualified individual's financial aid package are eligible for the credit under this 
section if the refinanced loans or consolidated loans remain separate from other debt, 
except for debt incurred in an educational program, but only in proportion to the 
portion of the loan payments that are otherwise eligible under this section. 
Forbearance or deferment of loan payments does not affect eligibility for the credit 
under this section. For tax years beginning on or after January 1, 2015, an individual 
who worked in this State for any part of a month during the Maine residency period 
of the taxable year is considered to have worked in this State for the entire month. 
For tax years beginning on or after January 1, 2015, an individual who worked 
outside this State for an entire month during the Maine residency period is considered 
to have worked in this State during that month, except that in no case may this 
exception exceed 3 months during the Maine residency period of the taxable year. 
PART H 
Sec. H-1. 36 MRSA §5217-D, sub-§1, ,rB-1, as amended by PL 2015, c. 300, 
Pt. A, §42 and amended by c. 328, §5, is repealed and the following enacted in its place: 
B-1. 
"Financial aid package" means financial aid obtained by a student for 
attendance at an accredited Maine community college, college or university. For 
purposes of a qualified individual claiming a credit under this section for tax years 
beginning on or after January 1, 2013 but before January 1, 2016 who is eligible for a 
credit under paragraph G, subparagraph (1), division (a), "financial aid package" may 
include financial aid obtained for up to 30 credit hours of course work at an 
accredited non-Maine community college, college or university earned prior to 
transfer to an accredited Maine community college, college or university, if the 30 
credit hours were earned after December 31, 2007 and the transfer occurred after 
December 31, 2012. For purposes of a qualified individual claiming a credit under 
this section for tax years beginning on or after January 1, 2016 who is eligible for a 
credit under paragraph G, subparagraph (1}, division (a-1}, "financial aid package" 
may include financial aid obtained by a student for attendance at an accredited non-
Maine community college, college or university after December 31, 2007. 
For 
purposes of a qualified individual claiming a credit under this section for tax years 
beginning on or after January 1, 2016 who is eligible for a credit under paragraph G, 
subparagraph (1}, division (b), "financial aid package" may include financial aid 
obtained by a student for attendance at an accredited non-Maine community college, 
college or university after December 31, 2007. For purposes of a qualified individual 
claiming a credit under this section for tax years beginning on or after January 1, 
2016 who is eligible for a credit under paragraph G, subparagraph (1), division (c), 
"financial aid package" may include financial aid obtained by a student for attendance 
at an accredited Maine college or university after December 31, 2007. For purposes 
of an employer claiming a credit under this section for tax years beginning on or after 
January 1, 2013, "financial aid package" may include financial aid obtained by a 
qualified employee for attendance at an accredited non-Maine community college, 
college or university. "Financial aid package" may include private loans or less than 
the full amount of loans under federal programs, depending on the practices of the 
accredited Maine or non-Maine community college, college or university. Loans are 
includable in the financial aid package only if entered into prior to July 1, 2023. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 647, L.D. 1606 
Sec. H-2. 36 MRSA §5217-D, sub-§1, ~' as amended by PL 2013, c. 525, §15, 
is further amended to read: 
E. "Qualified employee" means an employee who is employed at least part time and 
who is a qualified individual or who would be a qualified individual except that the 
employee's associate or bachelor's degree was awarded by an accredited non-Maine 
community college, college or university. 
For tax years beginning on or after January 1, 2016, "qualified employee" means an 
employee who is employed at least part time and who is a qualified individual or who 
would be a qualified individual except that the employee's associate, bachelor's or 
graduate degree was awarded by an accredited non-Maine community college, 
college or university. 
Sec. H-3. 36 MRSA §5217-D, sub-§1, 1G, as amended by PL 2015, c. 328, §6, 
is further amended to read: 
G. "Qualified individual" means an individual, including the spouse filing a joint 
return with the individual under section 5221, who is eligible for the credit provided 
in this section. An individual is eligible for the credit if the individual: 
7 
( 1) Attended and obtained: 
(a) An associate or bachelor's degree from an accredited Maine community 
college, college or university after December 31, 2007 but before January 1, 
2016. The individual need not obtain the degree from the institution in which 
that individual originally enrolled as long as all course work toward the 
degree is performed at an accredited Maine community college, college or 
university, except that an individual who transfers to an accredited Maine 
community college, college or university after December 31, 2012 but before 
January 1, 2016 from outside the State and earned no more than 30 credit 
hours of course work toward the degree at an accredited non-Maine 
community college, college or university after December 31, 2007 and prior 
to the transfer is eligible for the credit if all other eligibility criteria are met. 
Program eligibility for such an individual must be determined as if the 
commencement of course work at the relevant accredited Maine community 
college, college or university was the commencement of course work for the 
degree program as a whole. 
This division does not apply to tax years 
beginning after December 31, 2015; 
(a-1) For tax years beginning on or after January 1, 2016, an associate or 
bachelor's degree from an accredited Maine community college, college or 
university after December 31, 2007 but before January 1, 2016, regardless of 
whether the individual earned credit hours of course work toward the degree 
outside the State; 
(b) An associate or bachelor's degree from an accredited Maine or non-
Maine community college, college or university after December 31, 2015; or 
( c) A graduate degree from an accredited Maine college or university after 
December 31, 2015; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A,, to S.P. 647, L.D. 1606 
(4) During the taxable year, was a resident individual; and 
( 5) Worked during the taxable year: 
(a) For tax years beginning prior to January 1, 2015, at least part time for an 
employer located in this State or, for tax years beginning on or after January 
1, 2013, was, during the taxable year, deployed for military service in the 
United States Armed Forces, including the National Guard and the Reserves 
of the United States Armed Forces; 0f 
(b) For tax years beginning on or after January 1, 2015, at least part time in 
this State for an employer or as a self-employed individual or was, during the 
taxable year, deployed for military service in the United States Armed 
Forces, including the National Guard and the Reserves of the United States 
Armed Forcesa,;,,_m: 
(c) For tax years beginning on or after January 1, 2016, at least part time in a 
position on a vessel at sea. 
As used in this subparagraph, "deployed for military service" has the same 
meaning as in Title 26, section 814, subsection 1, paragraph A. 
Sec. H-4. 36 MRSA §5217-D, sub-§5, as amended by PL 2013, c. 525, §15, is 
further amended to read: 
5. Calculation of the credit; employers. 
Subject to subsection 2, a taxpayer 
constituting an employer making loan payments directly to a lender during the taxable 
year on loans included in a qualified employee's financial aid package may claim a credit 
equal to the benchmark loan payment or the actual monthly loan payment made by the 
employer on the loans, whichever is less, multiplied by the number of months during the 
taxable year the employer made loan payments on behalf of the qualified employee 
during the term of employment. For tax years beginning on or after January 1, 2016, 
subject to subsection 2, a taxpayer constituting an employer making loan payments 
directly to a lender during the taxable year on loans included in a qualified employee's 
financial aid package may claim a credit equal to the actual monthly loan payment made 
by the employer on the loans multiplied by the number of months during the taxable year 
the employer made loan payments on behalf of the qualified employee during the term of 
employment. The credit under this subsection may not be claimed with respect to months 
of the taxable year during which the employee was not a qualified employee. 
If the qualified employee is employed on a part-time basis during the taxable year, the 
credit with respect to that employee is limited to 50% of the credit otherwise determined 
under this subsection. 
PART I 
Sec. 1-1. Transfer to Maine Budget Stabilization Fund for fiscal year 
2015-16. 
The State Controller shall transfer $44,500,000 to the Maine Budget 
Stabilization Fund established in the Maine Revised Statutes, Title 5, section 1532 from 
the unappropriated surplus of the General Fund no later than June 30, 2016. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT'' A,, to S.P. 647, L.D. 1606 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment is the majority report of the committee. It replaces the bill and 
changes the title. 
PART A 
This Part increases wages for select personnel at the state mental health institutions. 
PARTB 
This Part directs the Department of Health and Human Services to amend its rules to 
increase the reimbursement rates for personal care and related services to reflect 50% of 
the increase in rates noted in the final rates modeled in the February 1, 2016 report "Rate 
Review for Personal Care and Related Services: Final Rate Models." 
It requires the Department of Health and Human Services to estimate the number of 
hours, and cost of those hours, of unmet need. The estimate must include individuals 
eligible for services but who are on waiting lists and individuals eligible for services who 
are unable to find staffing to provide those services. 
PARTC 
This Part provides for the upward adjustment of salary schedules in fiscal year 2015-
by 12% to 18% for certain law enforcement positions in the Department of Public 
Safety, the Department of Inland Fisheries and Wildlife and the Department of Marine 
Resources beginning with the pay period closest to May 1, 2016. This Part provides for a 
5% salary increase to law enforcement supervisors within the Department of Agriculture, 
Conservation and Forestry and the Baxter State Park Authority. This Part provides for a 
similar salary schedule adjustment for certain law enforcement confidential employees in 
those departments and allows the Governor to make similar salary schedule adjustments 
to unclassified law enforcement positions in those departments that are subject to the 
Governor's adjustment or approval. This Part authorizes use of the Salary Plan program 
to fund the adjustments and provides that certain law enforcement positions supported 
from other funds must be funded whenever possible from those other sources. 
PARTD 
This Part provides one-time funding for the operation of the State's county jails and 
regional jail. 
PART E 
This Part establishes certain requirements relating to maximum allowable cost pricing 
lists used by pharmacy benefits managers. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A· to S.P. 647, L.D. 1606 
This Part provides that a pharmacy benefits manager may set a maximum allowable 
cost for a prescription drug only if that drug is rated as "A" or "B" in the most recent 
version of the United States Food and Drug Administration's "Approved Drug Products 
with Therapeutic Equivalence Evaluations," also known as "the Orange Book," or an 
equivalent rating from a successor publication, or is rated as "NR" or "NA" or a similar 
rating by a nationally recognized pricing reference and the drug is not obsolete and is 
generally available for purchase in this State. 
This Part requires a pharmacy benefits manager to remove or modify in a timely 
manner a maximum allowable cost for a prescription drug as necessary for the cost of the 
prescription drug to remain consistent with changes to such costs and availability of the 
drug in the national marketplace for prescription drugs. 
This Part requires a pharmacy benefits manager to provide the following to a 
pharmacy with which the pharmacy benefits manager has a contract: 
1. Disclose the sources used to establish the maximum allowable costs used by the 
pharmacy benefits manager upon request; 
2. 
Provide a process for a pharmacy to readily obtain the maximum allowable 
reimbursement available to that pharmacy under a maximum allowable cost list; and 
3. At least once every 7 business days, review and update maximum allowable cost 
list information to reflect any modification of the maximum allowable reimbursement 
available to a pharmacy under a maximum allowable cost list used by the pharmacy 
benefits manager. 
This Part establishes an appeal process to allow a pharmacy to challenge a drug's 
maximum allowable cost under certain conditions. 
This Part specifies that the provisions apply to contracts between a pharmacy benefits 
manager and a pharmacy beginning September 1, 2016. 
PARTF 
This Part provides funding for an increase in reimbursement rates to eligible 
MaineCare providers for the last 3 months of fiscal year 2015-16 and for fiscal year 
2016-17. The purpose of the additional funding is to offset the imposition of the service 
provider tax, which increased January 1, 2016. 
PARTG 
This Part allows a portion of a consolidated loan that is a qualifying education loan to 
be eligible for the educational opportunity tax credit beginning with tax year 2015. It also 
provides that only a qualifying education loan that is consolidated with a nonqualifying 
7 
education loan is eligible. 
PARTH 
This Part, for tax years beginning on or after January 1, 2016, allows a qualified 
individual who earned a bachelor's or associate degree from an accredited Maine 
community college, college or university after December 31, 2007 but before January 1, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A" to S.P. 647, L.D. 1606 
2016 to be eligible for the educational opportunity tax credit regardless of the number of 
transfer credits earned at a non-Maine community college, college or university. Under 
current law, an individual who earned more than 30 credit hours from a non-Maine 
community college, college or university prior to 2016 does not qualify for the credit. 
The Part, for tax years beginning on or after January 1, 2016, allows a resident of 
Maine who is employed at least part time in a position on a vessel at sea to qualify for the 
educational opportunity tax credit. 
Under current law, an individual, other than an 
individual deployed for military service, does not qualify for the credit if the individual 
works outside Maine for more than 3 months. 
The Part, for tax years beginning on or after January 1, 2016, encourages employers 
to pay student loan payments by expanding the employer credit to include graduate 
degrees earned by qualified employees and by removing the principal cap relative to 
qualified employees. 
PART I 
This Part requires the transfer of $44,500,000 in fiscal year 2015-16 from the 
unappropriated surplus of the General Fund to the Maine Budget Stabilization Fund. 
I iSl'AL NOTE REQUIRED 
(See At1ached) 
COMMITTEE AMENDMENT 
Approved: 04/04/16 feac 
LD 1606 
LR2716(02) 
An Act To Provide Funding to the Maine Budget Stabilization Fund 
Fiscal Note for Bill as Amended by Committee Amendment ''A' (5-Y(;y\ 
Committee: Appropriations and Financial Affairs 
~, ) 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
FY 2015-16 
FY 2016-17 
FY 2017-18 
FY 2018-19 
Net Cost (Savings) 
General Fund 
$47,473,399 
$7,179,558 
$7,853,653 
$8,567,153 
Highway Fund 
$0 
$0 
$3,244 
$3,244 
Appropriations/ Allocations 
General Fund 
$2,948,899 
$6,784,358 
$6,843,953 
$6,843,953 
Highway Fund 
$0 
$0 
$3,244 
$3,244 
Federal Expenditures Fund 
$966,158 
$8,864,258 
$8,983,120 
$8,983,120 
Other Special Revenue Funds 
$92,499 
$2,022,207 
$2,033,251 
$2,033,251 
Revenue 
General Fund 
($24,500) 
($395,200) 
($1,009,700) 
($1,723,200) 
Federal Expenditures Fund 
$966,158 
$8,864,258 
$8,983,120 
$8,983,120 
Other Special Revenue Funds 
$91,999 
$2,014,207 
$2,012,251 
$1,998,251 
Transfers 
General Fund 
($44,500,000) 
$0 
$0 
$0 
Fund Detail by Section 
Appropriations/ Allocations 
General Fund 
PART A, Section 2 
$0 
$931,283 
$920,239 
$920,239 
PART B, Section 3 
$0 
$4,000,000 
$4,000,000 
$4,000,000 
PART D, Section 2 
$2,465,896 
$0 
$0 
$0 
PART E, Section 1 
$0 
$0 
$97,155 
$97,155 
PART F, Section 1 
$483,003 
$1,853,075 
$1,826,559 
$1,826,559 
Highway Fund 
PART E, Section 1 
$0 
$0 
$3,244 
$3,244 
LR2716(02) - Fiscal Note - Page 1 of3 
Federal Expenditures Fund 
PART B, Section 3 
$0 
$4,920,692 
$5,013,037 
$5,013,037 
PART F, Section 1 
$966,158 
$3,943,566 
$3,970,083 
$3,970,083 
Other Special Revenue Funds 
PART A, Section 2 
$0 
$1,652,208 
$1,663,252 
$1,663,252 
PART F, Section 1 
$92,499 
$369,999 
$369,999 
$369,999 
Revenue 
General Fund 
PART G, Section 1 
($24,500) 
$0 
$0 
$0 
PART H, Section 1 
$0 
($395,200) 
($1,009,700) 
($1,723,200) 
Federal Expenditures Fund 
PART B, Section 3 
$0 
$4,920,692 
$5,013,037 
$5,013,037 
PART F, Section 1 
$966,158 
$3,943,566 
$3,970,083 
$3,970,083 
Other Special Revenue Funds 
PART A, Section 2 
$0 
$1,652,208 
$1,663,252 
$1,663,252 
PART F, Section 1 
$92,499 
$369,999 
$369,999 
$369,999 
PART G, Section 1 
($500) 
$0 
$0 
$0 
PART H, Section 1 
$0 
($8,000) 
($21,000) 
($35,000) 
Transfers 
General Fund 
PART I, Section 1 
($44,500,000) 
$0 
$0 
$0 
Fiscal Detail and Notes 
Part A provides a General Fund appropriation of $931,283 in fiscal year 2016-17 to increase wages for selected 
positions at state mental health facilities. Part A also includes an Other Special Revenue Funds allocation of 
$1,652,208 for the Federal Medical Assistance Percentage (FMAP) match for these costs. 
Part B provides a General Fund appropriation of $4,000,000 in fiscal year 2016-17 for rate increases for personal 
support and related services. Part B also includes Federal Expenditures Fund allocations required for the FMAP 
match. 
Part C authorizes the use of funds in the Salary Plan program, up to $939,883 in fiscal year 2015-16 and up to 
$6,088,514 in fiscal year 2016-17 to provide pay increases for certain law enforcement employees. 
Part D provides a General Fund appropriation of $2,465,896 in fiscal year 2015-16 for the County Jail Operations 
Fund within the Department of Corrections. 
Part E will increase costs to the State Employee Health Plan due to the change in the maximum allowable costs list 
rules for pharmacy benefits managers for contracts beginning on or after September 1, 2016. The bill would not have 
any impact on the current biennial budget since the State's contract with a pharmacy benefits manager ends on June 
30, 2017. Moving forward it is estimated that there will be an annual cost of$97,155 to the General Fund and $3,244 
to the Highway Fund for contributions to the costs of the State Employee Health Plan. 
LR2716(02) - Fiscal Note - Page 2 of3 
Part F provides General Fund appropriations to the Department of Health and Human Services of$483,003 in fiscal 
year 2015-16 and $1,853,075 in fiscal year 2016-17 and Other Special Revenue Funds allocations of $92,499 in fiscal 
year 2015-16 and $369,999 in fiscal year 2016-17 for additional payments to MaineCare providers who are subject to 
Maine's Service Provider Tax. Federal Expenditures Fund allocations are also included for the FMAP match. 
Part G provides that consolidated loans are eligible for the educational opportunity tax credit in tax year 2015 
provided that the consolidated loans only include educational loans. This would reduce General Fund revenue by 
$24,500 in fiscal year 2015-16 and reduce Local Government Fund revenue by $500 in fiscal year 2015-16. 
Part H expands the educational opportunity tax credit and would reduce General Fund and Local Government Fund 
revenue by $395,200 and $8,000, respectively, in fiscal year 2016-17. 
Part I transfers $44,500,000 in fiscal year 2015-16 from the unappropriated surplus of the General Fund to the Maine 
Budget Stabilization Fund. 
LR2716(02) - Fiscal Note - Page 3 of3 
.__.