An Act To Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and Excise Tax Revenue to Generating Municipalities
Maine Legislature, Session 129, LD 0335
Committee Amendment CA_A_H484 (House)
Amends: 28-B MRSA §407, 28-B MRSA §1003, 36 MRSA §1818

COMMITTEE AMENDMENT "/I" to H.P. 260, L.D. 335, Bill, "An Act To 
Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and 
Excise Tax Revenue to Generating Municipalities" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Require the State To Distribute 12 Percent of Adult Use Marijuana 
Retail Sales and Excise Tax Revenue to Generating Municipalities' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 28-B MRSA §407 is enacted to read: 
§407. Revenue allocation to municipalities 
1. 
Local Government Marijuana Revenue Fund established. 
To assist in 
offsetting negative effects on local resources of local regulation and enforcement of adult 
use marijuana laws. there is established the Local Government Marijuana Revenue Fund, 
referred to in this section as "the fund." 
2. Fund sources. The fund receives money transferred to the fund pursuant to 
section 1003, subsection 2 and Title 36, section 1818, subsection 2. 
3. Distribution of funds. The Treasurer of State shall distribute the balance in the 
fund on the 20th day of each month. Money in the fund must be distributed to each 
municipality that has authorized, pursuant to sections 401 and 403, a marijuana 
establishment within the municipality. in proportion to the ratio of revenues generated 
pursuant to section 1001 and Title 36. section 1811 by all marijuana establishments 
operating within the municipality to the revenues generated pursuant to section 1001 and 
Title 36, section 1811 by all marijuana establishments operating within the State. 
4. Unorganized and deorganized areas. For purposes of municipal marijuana 
revenue distribution pursuant to this section. unorganized and deorganized areas must be 
treated as if they are municipalities. 
COMMITTEE AMENDMENT 
~ ~ ~. 
t, 
COMMITTEE AMENDMENT"~" to H.P. 260, L.D. 335 
Sec. 2. 28-B MRSA §1003, as enacted by PL 2017, c. 409, Pt. A, §6, is repealed 
and the following enacted in its place: 
§1003. Application of excise tax revenue 
All excise tax revenue collected by the department on the sale of adult use marijuana 
pursuant to this subchapter must be deposited into the General Fund, except that, on or 
before the last day of each month, the department shall transfer: 
1. Adult Use Marijuana Public Health and Safety Fund. Twelve percent of the 
excise tax revenue reported to the department as due during the preceding month pursuant 
to this subchapter to the Adult Use Marijuana Public Health and Safety Fund established 
under section 1101; and 
2. Local Government Marijuana Revenue Fund. Twelve percent of the excise tax 
revenue reported to the department as due during the preceding month into the Local 
Government Marijuana Revenue Fund established under section 407 calculated after the 
transfer pursuant to subsection 1 and after the subtraction of the costs of the department 
in administering this subsection. For the purposes of this subsection, "costs of the 
department in administering this subsection" means, for each month in the 12-month 
period after the effective date of this section, the actual and anticipated cost to the 
department of administering this subsection and, in all subsequent months, the previous 
month's actual cost of administering this subsection. 
Sec. 3. 36 MRSA §1818, as enacted by PL 2017, c. 409, Pt. D, §4, is repealed and 
the following enacted in its place: 
§1818. Tax on adult use marijuana and adult use marijuana products 
All sales tax revenue collected pursuant to section 1811 on the sale oLadult use 
marijuana and adult use marijuana products must be deposited into the Genera), Fund, 
except that, on or before the last day of each month, the State Controller shall transfer: 
1. Adult Use Marijuana Public Health and Safety Fund. Twelve percent of the 
sales tax revenue reported to the State Tax Assessor as due during the preceding month 
pursuant to section 1811 to the Adult Use Marijuana Public Health and Safety Fund 
established under Title 28-B, section 1101; and 
2. Local Government Marijuana Revenue Fund. Twelve percent of the sales tax 
revenue reported to the State Tax Assessor as due during the preceding month pursuant to 
section 1811 to the Local Government Marijuana Revenue Fund established under Title 
28-B, section 407 calculated after the transfer pursuant to subsection 1 and after the 
subtraction of the costs of the State Tax Assessor in administering this subsection. For 
the purposes of this subsection. "costs of the State Tax Assessor in administering this 
subsection" means, for each month in the 12-month period after the effective date of this 
section, the actual and anticipated cost to the State Tax Assessor of administering this 
subsection and, in · all subsequent months, the previous month's actual cost of 
administering this subsection. 
Sec. 4. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
•'· 2 
COMMITTEE AMENDMENT A 
"to H.P. 260, L.D. 335 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Local Government Marijuana Revenue Fund N326 
Initiative: Provides allocation to distribute funds to municipalities to assist in offsetting 
negative effects on local resources of local regulation and enforcement of adult use 
marijuana laws. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Revenue Services, Bureau of 0002 
2019-20 
$484,000 
$484,000 
2020-21 
$1,848,000 
$1,848,000 
Initiative: Establishes one Senior Tax Examiner position to process transfers of sales and 
excise tax receipts on adult use marijuana. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
2019-20 
1.000 
$78,520 
$5,000 
$83,520 
2019-20 
$83,520 
$484,000 
$567,520 
2020-21 
1.000 
$104,600 
$0 
-
$104,600 
2020-21 
$104,600 
$1,848,000 
$1,952,600 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes from 25% to 12% the amount of sales tax and excise tax 
revenue generated by adult use marijuana establishments required to be transferred to the 
COMMITTEE AMENDMENT 
"''!,. 
COMMITTEE AMENDMENT A" to H.P. 260, L.D. 335 
municipalities where the revenue was generated after the transfer to the Adult Use 
Marijuana Public Health and Safety Fund and the deduction of state administrative costs. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/25/19 ;f/'dac.. 
LD335 
LR 890(02) 
An Act To Require the State To Distribute 25 Percent of Adult Use Marijuana Retail Sales and Excise 
Tax Revenue to Generating Municipalities 
Fiscal Note for Bill as Amended by Committee Amendment ./J{ f/-Yfr) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
ippropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
$567,520 
$83,520 
$484,000 
($484,000) 
$484,000 
FY 2020-21 
$1,952,600 
$104,600 
$1,848,000 
($1,848,000) 
$1,848,000 
Projections 
FY 2021-22 
$2,700,600 
$104,600 
$2,596,000 
($2,596,000) 
$2,596,000 
Projections 
FY 2022-23 
$3,756,600 
$104,600 
$3,652,000 
($3,652,000) 
$3,652,000 
The bill creates the Local Government Marijuana Revenue Fund (LGMF) within the Department of Administrative 
and Financial Services and directs that 12% of the revenue from excise and sales taxes on marijuana and marijuana 
products be credited to the fund. The revenues from the fund will be proportionally distributed to municipalities who 
have a1ithorized marijuana establishments by the excise and sales tax generated by each municipality. The bill 
includes an Other Special Revenue Funds allocation of $484,000 in fiscal year 2019-20 and $1,848,000 in fiscal year 
2020-20 to allow for the distribution of the amounts credited to the LGMF. Transferring sales and excise tax receipts 
to the LGMF will reduce revenue to the General Fund by the same amounts, $484,000 in fiscal year 2019-20 and 
$1,848,000 in fiscal year 2020-21. 
The bill includes ongoing General Fund appropriations to the Department of Administrative and Financial Services 
of $78,520 in 2019-20 and $104,600 in fiscal year 2020-21 for one Senior Tax Examiner position to process transfers 
of sales and excise tax receipts on adult use marijuana. Another $5,000 is appropriated in the first year for one-time 
All Other costs to update sales reports and create an excise tax report to facilitate distribution to municipalities. 
LR0890(02) - Fiscal Note - Page 1 of 1