An Act To Create a Municipal Grant Program To Promote Sustainable Economic Development
Maine Legislature, Session 130, LD 0857
Committee: Innovation, Development, Economic Advancement and Business
Sponsors: BAILEY, COLLAMORE, GERE, HASENFUS, STEWART
Amends: 5 MRSA §13073-C, 30-A MRSA §5681

Legislative Document
No. 857
H.P. 625
House of Representatives, March 8, 2021
An Act To Create a Municipal Grant Program To Promote 
Sustainable Economic Development
Reference to the Committee on Innovation, Development, Economic Advancement and 
Business suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative BAILEY of Gorham.
Cosponsored by Representatives: COLLAMORE of Pittsfield, GERE of Kennebunkport, 
HASENFUS of Readfield, Senator: STEWART of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §13073-C is enacted to read:
§13073-C.  Municipal Grant Fund
The Municipal Grant Fund is established as a nonlapsing fund within the Office of 
Community Development.  The Director of the Office of Community Development shall 
administer the Municipal Grant Fund, referred to in this section as "the fund."
1.  Fund purpose.  The purpose of the fund is to provide funding for municipalities 
for projects that further the goals of sustainable economic development as outlined by the 
Maine Economic Growth Council, established in Title 10, section 929-A and referred to in 
this section as "the council," in the council's annual "Measures of Growth" report, or 
successor report, and by the economic development strategy for the State as administered 
by the department.
2.  Application process.  The department shall adopt rules establishing an application 
process for municipalities for fund grants for the purposes set forth in this section.
3.  Competitive procedure.  Funds must be dispersed in accordance with a 
competitive, quality-based selection procedure as established and administered by the 
department.
4.  Preference in awards.  In awarding grants, the department shall give preference to 
those projects that further the goals of the council as outlined in the council's "Measures of 
Growth" report, or successor report, as well as goals related to the economic development 
strategy for the State as administered by the department.
5.  Maximum award.  A grantee may not be awarded a total amount in excess of 
$50,000 in a legislative biennium.
6.  Rules.  The department shall adopt rules necessary to carry out this section.  Rules 
adopted pursuant to this section are routine technical rules as defined in chapter 375, 
subchapter 2-A.
Sec. 2.  30-A MRSA §5681, sub-§5-C, as amended by PL 2013, c. 368, Pt. J, §1, 
is further amended to read:
5-C.  Transfers to General Fund and Municipal Grant Fund.  For the months 
beginning on or after July 1, 2009, $25,383,491 in fiscal year 2009-10, $38,145,323 in 
fiscal year 2010-11, $40,350,638 in fiscal year 2011-12, $44,267,343 in fiscal year 2012-
13, $73,306,246 in fiscal year 2013-14 and $85,949,391 in fiscal year 2014-15 from the 
total transfers pursuant to subsection 5 must be transferred to General Fund undedicated 
revenue.  For the months beginning on or after October 1, 2021, $250,000 in fiscal year 
2021-22 from the total transfers pursuant to subsection 5 must be transferred to the 
Municipal Grant Fund established under Title 5, section 13073-C.  The amounts transferred 
to General Fund undedicated revenue or the Municipal Grant Fund each fiscal year 
pursuant to this subsection must be deducted from the distributions required by subsections 
4-A and 4-B based on the percentage share of the transfers to the Local Government Fund 
pursuant to subsection 5.  The reductions in this subsection must be allocated to each month 
proportionately based on the budgeted monthly transfers to the Local Government Fund as 
determined at the beginning of the fiscal year.
SUMMARY
This bill establishes a fund to provide competitive grants funding for cities and towns 
for projects that further the goals of sustainable economic development as outlined by the 
Maine Economic Growth Council in the council's annual "Measures of Growth" report and 
by the economic development strategy for the State as administered by the Department of 
Economic and Community Development.  The bill provides for the transfer of $250,000 in 
fiscal year 2021-22 from state-municipal revenue sharing to support the fund.