An Act Concerning Funding and Oversight of Transportation
Maine Legislature, Session 132, LD 1804
Sponsors: FARRIN, PARRY
Amends: 3 MRSA §521, 3 MRSA §522-C, 5 MRSA §1665, 23 MRSA §52, 23 MRSA §1651, 23 MRSA §1653, 23 MRSA §1656, 23 MRSA §1984, 23 MRSA §4241, 23 MRSA §4245, 25 MRSA §1509-A, 30-A MRSA §6054, 36 MRSA §1821

Legislative Document
No. 1804
S.P. 704
In Senate, April 29, 2025
An Act Concerning Funding and Oversight of Transportation 
Matters
Received by the Secretary of the Senate on April 25, 2025.  Referred to the Committee on 
Transportation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator FARRIN of Somerset.
Cosponsored by Representative PARRY of Arundel and
Senator: HARRINGTON of York, Representatives: ALBERT of Madawaska, BISHOP of 
Bucksport, MASON of Lisbon, WHITE of Guilford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  3 MRSA §521, as enacted by PL 1981, c. 702, Pt. S, is repealed and the 
following enacted in its place:
§521.  Committee
1.  Oversight of financial matters.  The joint standing committee of the Legislature 
having jurisdiction over appropriations and financial affairs is authorized to provide 
oversight of financial matters, excluding those items over which the Legislative Council 
has statutory authority.
2.  Oversight of Highway Fund.  The joint standing committee of the Legislature 
having jurisdiction over transportation matters is authorized to provide oversight of all 
legislative matters related to the Highway Fund, including all allocations and subdivisions 
of an allocation from the Highway Fund and excluding those items over which the 
Legislative Council has statutory authority.
Sec. 2.  3 MRSA §522-C, as enacted by PL 2011, c. 392, Pt. L, §1, is amended to 
read:
§522-C.  Meetings of the joint standing committee of the Legislature having 
jurisdiction over transportation matters
The joint standing committee of the Legislature having jurisdiction over transportation 
matters shall oversee the transfer of funds in accordance with Title 23, section 1652 and 
block grant changes in accordance with Title 5, section 1670 and any related fiscal matters.  
The committee shall oversee all other allocations or subdivisions of allocations to the 
Department of Transportation or the Secretary of State, Bureau of Motor Vehicles.  The 
committee shall also review all other financial orders related to the Highway Fund that 
have been submitted to the Office of Fiscal and Program Review since the committee's last 
meeting.  The committee may meet monthly or as often as is determined necessary by the 
chairs.
Sec. 3.  5 MRSA §1665, sub-§7, as repealed and replaced by PL 1999, c. 127, Pt. 
A, §6 and affected by §7, is amended by enacting at the end a new first blocked paragraph 
to read:
On or before September 1st of even-numbered years, beginning in fiscal year 2030-31 and 
each biennium thereafter, the State Budget Officer shall adjust the minimum level of 
funding amounts outlined in Title 23, section 1656 by the percentage change in the 
Consumer Price Index from the 2 complete calendar years preceding the biennial budget.
Sec. 4.  23 MRSA §52, as amended by PL 2023, c. 516, Pt. B, §43, is further amended 
to read:
§52.  General powers and duties
The Department of Transportation, referred to in this chapter as "the department," may 
from time to time make and shall enforce rules and regulations relating to the planning, 
design, engineering, construction, improvement, maintenance and use of transportation 
infrastructure.  The department may from time to time make and shall enforce rules relating 
to the manner of conducting all investigations and hearings and the administration of its 
office, powers and duties.  The department shall direct the expenditure of all money for the 
planning, design, engineering, construction, improvement, demolition, maintenance and 
use of all transportation infrastructure for which state funds are provided by law.  The 
department may conduct traffic survey interviews and other statistical studies on the state 
highway system as considered necessary for the use in planning and development of the 
statewide highway system.  The department may obtain leases for such land and office 
space as the department considers necessary for the performance of its duties.  As used in 
this section, "transportation infrastructure" means infrastructure related to all modes of 
transportation, including highways, bridges, railroads, ferries, mass transit, airports and 
bicycle and pedestrian facilities, as well as all buildings, utilities, facilities and other 
appurtenances related to such modes has the same meaning as in section 4241, subsection 
1.
The department has full power to purchase all supplies, materials and equipment that 
are incidental to, or necessary for, project-specific construction, improvement or 
maintenance of transportation infrastructure.  The purchase of supplies, materials and 
equipment for nonproject-specific purposes must be made through the Chief Procurement 
Officer as provided by law. For the purposes of this section, unless the context otherwise 
indicates, "project-specific" means relating to a specific location for a limited duration, as 
opposed to perennial, nonlocation-specific activities.  The department may be consulted by 
and shall, without charge, advise municipal officers and road commissioners on the subject 
of construction, improvement and maintenance of public highways, bridges and other 
structures. The department shall whenever practicable give preference in employment to 
the inhabitants of the town in which such highways are located.
The department may adopt its own guidelines for determining the reasonableness and 
permissibility of various cost factors, including, but not limited to, salary limits, benefits 
and expense reimbursement.  Notwithstanding any other federal or state law to the contrary, 
the department's guidelines must be used in lieu of federally mandated provisions.
Sec. 5.  23 MRSA §1651, as amended by PL 1971, c. 593, §22, is further amended 
to read:
§1651.  Definition Highway Fund established
To provide funds for the construction of state, state aid and town ways, for the 
maintenance of state and state aid highways, and interstate, intrastate and international 
bridges, and for other items of expenditure specified, there is established a fund to be 
known as the General Highway Fund. This fund shall include includes all fees received 
from the registration of motor vehicles and licensing of operators thereof, all fees accruing 
to the Treasurer of State under Title 25, section 1502, the receipts from the tax on internal 
combustion engine fuels, the portion of funds collected for automobile-related sales tax 
pursuant to Title 36, section 1821 transferred to the fund and all sums received on account 
of the department for permits to open highways, or from other sources, the disposition of 
which is not otherwise designated by law. After payment from said General Highway Fund 
of such sums for interest and retirement as are necessary to meet the provisions of bond 
issues for state highway and bridge construction, the remainder of said fund shall must be 
allocated, segregated, apportioned and expended as provided by the Legislature.
Sec. 6.  23 MRSA §1653, as amended by PL 1995, c. 65, Pt. A, §62 and affected by 
§153 and Pt. C, §15, is further amended to read:
§1653.  Limitation on use of fund
All revenue received by the State from the registration of motor vehicles and the 
licensing of operators thereof, from the tax imposed on internal combustion engine fuel, 
from fines, forfeitures and costs accruing to the State under Title 29‑A, section 2602, from 
the portion of the funds collected for automobile-related sales tax under Title 36, section 
1821, and from permits granted by the department to open highways must be segregated, 
allocated to and become part of the General Highway Fund created and existing by statute, 
and after payment and deduction from such fund of such sums as are necessary to meet all 
provisions of bond issues for state highway and bridge construction, the remainder of such 
fund must be apportioned and expended solely:
1.  Registration and licensing.  For the cost of registering motor vehicles and licensing 
the operators thereof;
2.  State police.  For maintenance of the State Police.  This subsection is repealed July 
1, 2027;
3.  Administration of office.  For administration of the office and duties of the 
department;
4.  Administration of fuel tax.  For administration of the tax on internal combustion 
engine fuel;
5.  Rebates.  For payment of rebates on said tax;
6.  Highways and bridges.  For the improvement, construction and maintenance of 
highways and bridges;
7.  Snow guards.  For snow guards or removal as provided by statute.; and
8.  Multimodal transportation.  Pursuant to the Constitution of Maine, Article IX, 
Section 19, for the planning, design, engineering, construction, improvement, maintenance, 
operation, purchase, management, demolition or other use of all modes of transportation, 
including public highways, bridges, aviation, transit, railroads, ferries, ports and other 
marine infrastructure, trails, pedestrian and bicycle facilities and transportation 
infrastructure as defined in section 4241.
Neither the General The Highway Fund, nor or any fund derived from direct taxation 
imposed for highway construction, bridge construction or the improvement and 
maintenance thereof, shall may not be diverted or expended, permanently, for any other 
purpose than set forth in this section, except that funds so segregated may be used for other 
appropriations but only those for which anticipated income has not been received and for 
which financial provision has been made by the Legislature and is forthcoming. The 
Treasurer of State is directed and authorized to reimburse the General Highway Fund by a 
deposit of the funds received from such aforesaid appropriations, the receipt of which has 
been anticipated, to the extent of the amounts temporarily diverted therefrom. Such 
deposits shall must be made as soon as such revenues are collected.
Sec. 7.  23 MRSA §1656 is enacted to read:
§1656.  Funding for transportation capital projects
1. Minimum funding.  Beginning July 1, 2027, allocations from the Highway Fund 
must meet the minimum level of funding for each of the following purposes:
A. For construction and maintenance of highway bridges, $150,000,000; 
B. For the construction and maintenance of highway lights, $20,000,000; and
C. For multimodal transportation, $30,000,000.
2. Adjustments.  On or before September 1st of the even-numbered years, beginning 
in fiscal year 2030-31 and each biennium thereafter, the State Budget Officer shall adjust 
the minimum level of funding amounts outlined in this section by the percentage change in 
the Consumer Price Index from the 2 complete calendar years preceding the biennial 
budget.
Sec. 8.  23 MRSA §1984 is enacted to read:
§1984.  Report; procurement
Beginning March 1, 2026, and every March 1st of even-numbered years thereafter, the 
authority shall submit a report to the joint standing committee of the Legislature having 
jurisdiction over transportation matters.  The report must summarize the authority's 
procurement activities over the preceding 2 calendar years.  The summary must include the 
type and amount of construction contracting, consulting contracts for engineering and other 
technical services, including general consulting agreements and task order contracts, and 
other vendor contracts.
Sec. 9.  23 MRSA §4241, as enacted by PL 2005, c. 313, §6, is amended to read:
§4241.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Transportation infrastructure.  "Transportation infrastructure" means 
infrastructure, assets, facilities and systems related to all modes of transportation, including 
highways, bridges, aviation, transit, railroads, ferries, mass transit, airports ports and other 
marine infrastructure, trails and bicycle and pedestrian facilities, as well as all buildings, 
utilities, facilities and other appurtenances related to those modes.
2.  Transportation-related services.  "Transportation-related services" means all 
services necessary or convenient to discharge the powers, duties and responsibilities of the 
department and the commissioner as provided by law including those provided in section 
4206.  These services include all services necessary or convenient to plan, design, engineer, 
construct, improve, demolish, maintain, operate or use transportation infrastructure.  These 
services may include, but are not limited to, planning and feasibility studies, engineering, 
surveying, mapping, environmental services, architectural-related services, appraisal, title 
services, right-of-way services, project and program management, construction support 
services and equal opportunity and civil rights services.
Sec. 10.  23 MRSA §4245 is enacted to read:
§4245.  Report; procurement
Beginning March 1, 2026, and every March 1st of even-numbered years thereafter, the 
department shall submit a report to the joint standing committee of the Legislature having 
jurisdiction over transportation matters.  The report must summarize the department's 
procurement activities over the preceding 2 calendar years.  The summary must include the 
type and amount of construction contracting, consulting contracts for engineering and other 
technical services, including general consulting agreements and task order contracts, and 
other vendor contracts.
Sec. 11.  25 MRSA §1509-A, as amended by PL 2013, c. 354, Pt. F, §1 and c. 368, 
Pt. EEE, §1, is repealed and the following enacted in its place:
§1509-A.  Funding
Beginning in fiscal year 2027-28, state funding for the Department of Public Safety, 
Bureau of State Police is appropriated from the General Fund.
Sec. 12.  30-A MRSA §6054, sub-§5, as repealed and replaced by PL 2023, c. 189, 
Pt. H, §5 and affected by §6, is repealed and the following enacted in its place:
5.  Use of fund after bond retirement.  Beginning July 1, 2027 and every July 1st 
thereafter, after all liquor operation revenue bonds and any ancillary obligations secured 
by the fund have been retired, any amounts received pursuant to Title 28-A, section 90 
must be deposited as undedicated revenue to the General Fund.
Sec. 13.  36 MRSA §1821, 3rd ¶, as amended by PL 2025, c. 9, Pt. F, §8, is further 
amended to read:
When Until June 30, 2026, when notified by the assessor, the State Controller shall 
transfer 40% of the amount in the notice, after the reduction for transfer to the Local 
Government Fund pursuant to Title 30‑A, section 5681, subsection 5, from the General 
Fund to the Highway Fund.  The and the State Controller shall transfer 22% of the amount 
transferred to the Highway Fund to the TransCap Trust Fund established in Title 30‑A, 
section 6006‑G.  Beginning July 1, 2027, and every July 1st thereafter, when notified by 
the assessor, the State Controller shall transfer 60% of the amount in the notice, after the 
reduction for transfer to the Local Government Fund pursuant to Title 30-A, section 5681, 
subsection 5, from the General Fund to the Highway Fund and the State Controller shall 
transfer 22% of the amount transferred to the Highway Fund to the TransCap Trust Fund 
established in Title 30‑A, section 6006‑G.
Sec. 14.  Effective date.  Those sections of this Act that repeal and replace the Maine 
Revised Statutes, Title 3, section 521; Title 25, section 1509-A; and Title 30-A, section 
6054, subsection 5 take effect July 1, 2027.
SUMMARY
This bill amends the laws related to legislative oversight of transportation funding and 
use of the funds from the Highway Fund.  The bill:
1. Codifies the joint standing committee of the Legislature having jurisdiction over 
transportation matters as having jurisdiction over the Highway Fund.  It updates references 
to the Highway Fund;
2. Establishes a minimum level of funding for transportation infrastructure programs 
related to bridges, highway lights and multimodal transportation, and requires the State 
Budget Officer to adjust the minimum level of funding by the percentage change in the 
Consumer Price Index each biennium beginning July 1, 2027; 
3. Increases, from 40% to 60%, the percentage of automobile-related sales and use 
taxes transferred to the Highway Fund and adds automobile-related sales and use taxes to 
the list of revenue that is allocated to and becomes part of the Highway Fund beginning 
July 1, 2027;
4. Provides for the net revenue from liquor operations to be deposited as undedicated 
revenue to the General Fund, rather than being split between undedicated revenue to the 
General Fund and undedicated revenue to the Highway Fund; 
5. Provides for state funding for the Department of Public Safety, Bureau of State 
Police to come solely from the General Fund, rather than being split between the General 
Fund and the Highway Fund, beginning in fiscal year 2027-28; 
6. Removes the Department of Public Safety, Bureau of State Police from the list of 
allowable uses of the Highway Fund; 
7. Adds multimodal transportation to the list of allowable uses of the Highway Fund; 
8. Redefines “transportation infrastructure” to mean the infrastructure, assets, facilities 
and systems related to all modes of transportation, including highways, bridges, aviation, 
transit, railroads, ferries, ports and other marine infrastructure, trails and bicycle and 
pedestrian facilities, as well as all buildings, utilities and other appurtenances related to 
those modes;
9. Removes the designation of project-specific and nonproject-specific procurement 
and retains the provision that the Department of Transportation has full power to purchase 
all supplies, materials and equipment that are incidental to, or necessary for, construction, 
improvement or maintenance of transportation infrastructure; and
10. Requires, beginning March 1, 2026, the Department of Transportation and the 
Maine Turnpike Authority to submit biennial reports in each even-numbered year, 
summarizing the procurement activities over the preceding 2 calendar years.  The summary 
must include construction contracting, consulting contracts for engineering and other 
technical services and other vendor contracts.